Q2 2025 Gulf Island Fabrication Inc Earnings Call
This call is being recorded.
At this time I would like to turn the floor over to MS. Cindi Cook for opening remarks and introductions Cindy. Please go ahead.
Yes.
Thank you and good afternoon, I would like to welcome everyone to our second quarter 2025 teleconference. Our results were released this afternoon and a copy of the press release is available on our website at Gulf Island Dot Com.
A replay of today's call will be available on our website. After <unk> P. M. This evening.
Please keep in mind that the press release and certain comments on this call include forward looking statements and actual results may differ materially.
We would like to refer everyone to the cautionary language included in our press release and to the risk factors described in our most recent Form 10-K and subsequent SEC filings.
Please also note that management May reference EBITDA adjusted EBITDA adjusted revenue New project Awards and backlog on this call, which are financial measures not recognized under U S. GAAP.
As required by SEC rules and regulations to the extent used these non-GAAP financial measures are reconciled to the most comparable GAAP financial measures in our press release.
Today, we have Mr. Richard Howes, President and CEO and Mr. Wes Stockton Executive Vice President and CFO Mr hub.
Thank you Cindy and good afternoon, everyone and welcome to our second quarter results Conference call.
I'm happy to be here with you. This afternoon and hope that each of you and your families are continuing to stay healthy and safe.
Good afternoon, ladies and gentlemen, and welcome to Gulf Islands conference call to discuss second quarter, 2025 results.
During today's call I'll provide key takeaways from the quarter, a review of end market trends and an update on the progress we've made on our strategic initiatives, including the progress we have made on our recent and global acquisition.
All participants will be in the listen only mode for the duration of the call.
This call is being recorded.
at this time, I would like to turn the floor over to Miss Cindy, Cook for opening remarks and introductions
<unk> will then discuss our second quarter results in greater detail and provide an update on our outlook for 2025, We'll then open up the call for questions and then with some closing remarks.
Cindy, please go ahead.
Sure.
Over the last several years, we have taken important strategic actions to develop a business that is more stable and durable across market cycles, we focused on reducing risk growing our services and small scale fabrication businesses and further strengthening our project execution the.
Thank you, and good afternoon. I would like to welcome everyone to our second quarter 2025 teleconference. Our results were released this afternoon, and a copy of the press release is available on our website at GulfIsland.com.
A replay of today's call will be available on our website after 7:00 p.m. this evening.
The benefits of these actions were evident during the second quarter as we were able to generate revenues of $37 5 million and adjusted EBITDA of $1 9 million. Despite the ongoing macroeconomic headwinds stemming from the uncertain trade environment and slower maintenance and capital spending by our offshore services.
Please keep in mind that the press release and certain comments on this call may include forward-looking statements, and actual results may differ materially.
We would like to refer everyone. To the cautionary language included in our press release, and to the risk factors described in our most recent Farm 10K and subsequent SEC filings.
Customers.
While we were not pleased by the results are more stable core business allowed us to generate solid operating results, which combined with our strong financial position enabled us to continue to invest in our organic growth initiatives and return capital to our shareholders through our share repurchase program and complete being global acquisition.
Please also note that management lay reference ibida, adjusted ibida, adjusted Revenue, new project Awards and backlog on this call, which are Financial measures, not recognized under us. Gaap
Before getting into our segment results I'd like to provide an update on our in global acquisition.
As required by SEC rules and regulations, to the extent used these non-gaap Financial measures are reconciled to their most comparable gaap Financial measures in our press release.
During the quarter, we acquired certain assets of a global automation engineering and government services businesses. The automation business provides engineering design fabrication and integration of industrial automation systems to the oil and gas renewable energy and traditional power industries.
President and CEO and Mr. West Stockton Executive, Vice President and CFO Mr. Hope
Thank you, Cindy. Good afternoon, everyone and Welcome to our second quarter results conference call.
The engineering business provides various engineering solutions to the oil and gas and renewable energy industries, while the government services business provides engineering and automation solutions to federal state and local governments and educational institutions generally in the form of technical field services.
I'm happy to be here with you this afternoon and hope that each of you and your families are continuing to stay healthy and safe.
During today's call I'll provide key takeaways from the quarter. A review of in-market Trends in an update. On the progress, we've made on our strategic initiatives, including the progress, we have made on our recent and Global acquisition.
The integration is progressing as expected and we see the opportunity for meaningful strategic benefits from the transaction first the global acquisition is expected to broaden our product and services offerings with the addition of automation and engineering solutions second the acquired assets will allow us to expand.
Russell been discuss our second quarter results in Greater detail and provide an update on our outlook for 2025.
We'll then open up the call for questions. And then with some closing remarks,
Over the last several years, we have taken important, strategic, actions to develop a business that is more stable and durable across Market Cycles.
Our customer base and diversify into new end markets, including onshore oil and gas data centers and government and third the acquired businesses will help increase the overall value of our existing offerings by including the ability to strengthen our fabrication offerings with supplemental engineering capabilities and systems integration.
We focus on reducing risk, growing our services and small scale fabrication businesses. And further, strengthening our project execution.
Turnkey module offerings.
We are extremely excited by the opportunities presented by the transaction and while it is still early our initial view of the transaction is extremely favorable.
The benefits of these actions were evident during the second quarter. As we were able to generate revenues of 37.5 million and adjusted ibida of 1.9 million, despite the ongoing macroeconomic headwinds stemming from the uncertain trade environment, and slower maintenance and capital spending by our offshore Services customers.
The early reception from customers and potential strategic partners has been very positive.
And global has great people and very strong product offerings, which was evident in their ability to win work on the market. Despite the financial challenges the.
The market seems excited that are well capitalized complementary company is now in control of these assets and we see meaningful opportunities ahead.
While we were not pleased by the results, our more stable Core Business allowed us to generate solid operating results. Which combined with our strong financial position. Enabled us to continue to invest in our organic growth initiatives, return Capital to our shareholders, through our share repurchase program and complete being Global acquisition.
Before getting into our segment results, I'd like to provide an update on our in global acquisition.
For example, we have already received request for quotation for projects as a result of the combined company's capabilities.
We have received inquiries for process skids and packaged equipment, where the client is requesting a turnkey solution of the fabrication inclusive of systems control installed and we're seeing opportunities for larger systems integration projects that in global was not capable of executing on their own.
During the quarter, we acquired certain assets of Eng Global automation engineering and government services businesses. The automation business provides engineering design fabrication and integration of industrial automation systems to the oil and gas, renewable energy and traditional power industries.
While we will have to work through the integration, which we expect will take six to 12 months and the challenges associated with bringing a business back from bankruptcy I see strong signs that the acquisition will help us open more doors and give the combined company opportunities that provide more value to our customers.
The engineering business provides various engineering solutions to the oil and gas and renewable energy Industries while the government services, business provides engineering and automation solutions, to federal state and local governments and educational institutions generally in the form of technical Field Services.
Now turning back to our legacy business.
As we look at our fabrication business, we continue to see extended decision cycles for New project awards in certain end markets due to market uncertainty ease.
Even for a small scale fabrication.
However, we have been pleased more recently to see a pickup in dialogue with customers with large projects, who paused their activity in the early part of 2025, and we are happy to share that subsequent to quarter end. We received a limited notice to proceed contract of approximately $20 million.
The integration is progressing as expected and we see the opportunity for Meaningful strategic benefits from the transaction. First being Global acquisition is expected to broaden our product and services offerings with the addition of Automation and Engineering Solutions. Second the acquired assets will allow us to expand our customer base and diversify into you and markets.
Including Honore.
This initial award is for the procurement of materials for our structural steel project and we expect a full contract to be awarded during the third quarter with a total contract value of approximately $35 million inclusive.
And gas data centers and government. And third, the acquire businesses will help increase the overall value of our existing offerings by including the ability to strengthen our fabrication offerings with supplemental, engineering capabilities and systems integration for TurnKey module offerings.
We are extremely excited by the opportunities presented by the transaction and while it is still early, our initial view of the transaction is extremely favorable.
Inclusive of the limited notice to proceed value.
The early reception from customers and potential, strategic Partners has been very positive.
If the award timing goes as planned.
We'd expect to commence fabrication activities in the fourth quarter.
With the limited notice to proceed award we remain optimistic that the longer term favorable structural drivers for the fabrication market remain in place and we are confident we are well positioned to win as more projects move forward.
In global has great people and very strong product offerings, which was evident in their ability to win work on the market despite their financial challenges.
the market seems excited that a well capitalized complimentary company is now in control of these assets and we see meaningful opportunities ahead
We continue to see LNG chemical and marine in civil as potential areas of opportunity for Gulf Island, and with the acquisition of <unk> Global we will penetrate into new end markets.
For example, we have already received requests for quotation for projects as a result of the combined companies capabilities.
We're also encouraged by new opportunities driven by a push for more domestic supply.
So that we're positioned to take advantage of this buildup and believe we will see additional positive results before the end of the year.
We have received inquiries for processed goods and packaged equipment with a client is requesting a turnkey solution of the fabrication inclusive of systems control installed, and we're seeing opportunities for larger systems. Integration projects that in global was not capable of executing on their own.
Looking at our services business, while oil prices are off the lows are customers are still targeting lower overall capital spending levels in the Gulf of America in 2025.
While we will have to work through the integration, which we expect will take 6 to 12 months and the challenges associated with bringing a business back from bankruptcy. I see strong signs that the acquisition will help us open more doors and give the combined company opportunities to provide more value to our customers.
This coupled with the trade uncertainty has many of our customers holding back spending.
Now, turning back to our Legacy business.
Despite the near term weakness we can.
We will continue to invest in expanding and diversifying our services offering.
While slower than anticipated we remain optimistic regarding the potential for a cleaning environmental services business and spark safety has started to pick back up.
As we look at our fabrication business, we continue to see extended decision cycles for new project Awards in certain in markets due to Market uncertainty, even for our small scale fabrication.
Finally, as it relates to capital deployment.
A pickup and dialogue with customers with large projects who pause their activity in the early part of 2025.
We remain committed to our balanced capital allocation framework, regardless of the recent market softness we will continue to prioritize investing in the business to drive growth in our existing services and penetrate you end markets balanced with the pursuit of acquisition opportunities such as in global and cap.
And we are happy to share the subsequent to quarter in. We received a limited notice to proceed contract of approximately 20 million
<unk> return opportunities in fact, we see the potential that our transaction within global could open up additional opportunities for strategic acquisitions and partnerships in our core markets. We're fortunate to be operating from a position of strength and remain committed to our strategic framework with an ongoing focus on driving value for.
This initial award is for the procurement of materials for a structural steel project and we expect the full contract to be awarded. During the third quarter, with a total contract value of approximately 35 million inclusive of The Limited notice to proceed value.
If the award timing goes as planned, we would expect to commence fabrication activities in the fourth quarter.
For our shareholders I will now turn the call over to Wes to discuss our quarterly results in greater detail.
With the limited notice to proceed award, we remain optimistic that the longer term, favorable structural drivers for the fabrication Market remain in place and we are confident, we are well positioned to win as more projects move forward.
Thanks, Richard and good afternoon, everyone.
I will discuss our consolidated results and then provide some additional details regarding our segment performance putting in context, the factors mentioned by Richard and their impacts on the quarter.
We continue to see LNG chemical and Marine and civil as potential areas of opportunity for Gulf Island and with the acquisition of in global, we will penetrate into you in markets.
I will then conclude with a discussion of our liquidity and full year financial outlook.
Please note that as it relates to the <unk> Global acquisition post acquisition operating results for the automation business are reflected within our fabrication Division and post acquisition operating results for the engineering and government businesses are reflected within our services Division.
We're also encouraged by New Opportunities driven by a push for more domestic Supply. I feel that we're positioned to take advantage of this build-up and believe we'll see additional positive results before the end of the year.
Now turning to our quarter results consolidated revenue for the second quarter 2025 was $37 5 million compared to $41 3 million for the second quarter of last year.
Looking at our services business while oil prices are off the lows, our customers are still targeting lower overall Capital spending levels in the Gulf of America in 2025.
This coupled with the trade uncertainty, as many of our customers holding back spending.
The year over year decline was driven by lower small scale fabrication revenue and weaker services activity.
Despite the near-term weakness, we can and will continue to invest in expanding and diversifying our Services offering.
Adjusted consolidated EBITDA was $1 9 million for the second quarter 2025 down from $2 5 million for the second quarter 2024 <unk>.
Adjusted EBITDA for the second quarter of 2025 excludes $1 8 million of transaction and related costs associated with the <unk> Global acquisition.
while slower than anticipated. We remain optimistic regarding the potential for our cleaning Environmental Services, business, and Spark safety has started to pick back up.
That includes post acquisition operating losses of approximately 500000 associated with the global business.
Specifically for our services Division revenue for the second quarter 2025 was $22 million a decrease of three 5% compared to the second quarter of last year, primarily due to lower offshore maintenance activity.
Services EBITDA for the second quarter, 2025 was $2 million or nine 1% of revenue compared to $2 7 million or 11, 7% of revenue for the prior year period with the decrease primarily due to lower revenue.
Less favorable project margin mix and post acquisition operating losses of approximately 200000 associated with the global engineering and government businesses.
Finally, as it relates to Capital deployment, we remain committed to our balanced Capital, allocation framework, regardless of the recent Market softness, we'll continue to prioritize investing in the business to drive growth in our existing services and penetrate you in markets balance with the pursuit of acquisition opportunities, such as in global and capital return opportunities. In fact, we see the potential that our transaction within Global could open up additional opportunities for strategic Acquisitions and Partnerships in our core markets. We're fortunate to be operating from a position of strength and remain committed to our strategic framework with an ongoing focus on driving value for our shareholders, I will not turn the call over to West to discuss our quarterly results and greater detail.
For our fabrication division revenue for the second quarter 2025 was $15 8 million a decrease of approximately 15% compared to the second quarter of last year.
Thanks, Richard, and good afternoon, everyone.
I will discuss our Consolidated results and then provide some additional details regarding our segment performance.
Primarily due to lower small scale fabrication of activity as we completed several projects during the quarter and experienced delays in the awards of new project opportunities.
Putting in context, the factors mentioned by Richard and their impacts on the quarter.
I will then conclude with the discussion of our liquidity and full year Financial Outlook.
Fabrication EBITDA for the second quarter of 2025 was $1 1 million compared to $1 8 million for the prior year period the.
The decrease was primarily due to lower revenue lower utilization of facilities and resources due to reduced work hours and post acquisition losses of approximately 300000 associated with the global automation business.
Please note that as it relates to the and Global acquisition, the post acquisition operating results for the automation business are reflected within our fabrication division.
and post-acquisition operating results for the engineering and government businesses are reflected within our services division,
These negative impacts were partially offset by more favorable project margin mix for the current period.
Now turning to our quarter results, Consolidated revenue for the second quarter, 2025 was 37 and a half million compared to 41.3 million for the second quarter of last year.
And for our corporate Division adjusted EBITDA was a loss of $1 2 million for the second quarter 2025, compared to a loss of $2 million for the prior year period.
The year-over-year decline was driven by lower small-scale fabrication revenue and weaker services activity.
Adjusted EBITDA for the second quarter of 2025 excludes $1 8 million of transaction and related costs associated with the <unk> Global acquisition.
Adjusted Consolidated, evida was 1.9 million for the second quarter 2025 down from 2 and a half million for the second quarter 2024.
The improvement in adjusted results was primarily due to lower incentive plan cost and an insurance gain realized during the current quarter.
Adjusted ebit off for the second quarter of 2025 excludes 1.8 million of transaction and related costs associated with the in global acquisition.
With respect to our liquidity, we ended the second quarter with a cash and short term investments balance of approximately $62 million.
But includes post-acquisition operating losses of approximately, 500,000 associated with the, in global business.
Has the benefit of our adjusted operating results for the quarter were offset by the capital required to fund the <unk> acquisition, which I will cover in more detail shortly.
specifically for our services division revenue for the second quarter 2025 was 22 million, a decrease of 3.5% compared to the second quarter of last year, primarily due to lower offshore maintenance activity,
Capital expenditures and the repurchase of approximately $2 8 million of our common stock under our share repurchase program.
As of June 30, we had remaining authorization to purchase approximately $5 $3 million of our common stock under the program, which expires in December 2026.
As it relates to and global as of June 30, the total capital commitment related to the acquisition was $5 5 million, which consists of $3 5 million of that debtor in possession financing of which $1 2 million was advanced and global in the first quarter.
Services EV do for the second quarter, 2025 was 2 million or 9.1% of Revenue, compared to 2.7 million or 11.7% of revenue. For the prior year. Period with the decrease, primarily due to lower Revenue, a less favorable project margin mix and post acquisition operating losses of approximately 200,000 associated with the in Global Engineering and government businesses.
$2 3 million was advanced in the second quarter.
% compared to the second quarter of last year.
The $1 $5 million payment made in the second quarter in exchange for the assumption of alone from a creditor <unk> global and.
And transaction cost of approximately 500000.
Primarily due to lower small-scale fabrication of activity, as we completed several projects during the quarter and experienced delays in the awards of new project opportunities.
Of which 200000 was incurred in the first quarter and 300000 was incurred in the second quarter.
Fabrication Eva do for the second quarter, 2025 was 1.1 million compared to 1.8 million for the prior year period.
These amounts the $3 $5 million debtor in possession advances were forgiven by us in connection with the transaction and represents our acquisition purchase price.
And the $1 $5 million payment for the assumed loan and the transaction costs were expense during the first and second quarters as incurred.
The decrease was primarily due to lower Revenue lower utilization of facilities, and resources, due to reduced work hours, and post-acquisition losses of approximately 3,000,000 associated. With the, in global automation business.
These negative impacts were partially offset by more, favorable project margin. Mix for the current period.
At June 30, our debt obligation totaled $19 million and our annual payments of principal and interest of approximately $1 7 million will be made in December of each year over the remaining 14 year term of the obligation or.
And for our corporate division, adjusted EPA was a loss of 1.2 million for the second quarter, 2025 compared to a loss of 2 million for the prior year period.
Our cash balance and a long duration of our debt puts us in a strong liquidity position and provides significant flexibility to pursue our growth objectives and evaluate further opportunities to return capital to our shareholders.
Adjusted ebit off for the second quarter of 2025 excludes 1.8 million of transaction and related costs associated with the in global acquisition.
The Improvement and adjusted results is primarily due to lower incentive plan costs, and an insurance gain realized during the current quarter.
And finally, turning to our outlook for the remainder of 2025 as Richard discussed the ongoing trade and macroeconomic uncertainty has pushed out certain project award decisions for our fabrication business and lower capital spending by our customers in the Gulf continues to pressure results for our services segment.
With respect to our liquidity, we ended the second quarter with a cash and short-term Investments balance of approximately 62 million.
Has the benefit of our adjusted operating results. For the quarter were offset by the capital required to fund the Anglo. Why acquisition, which I will cover in more detail shortly.
As a result, excluding the impact of the acquired in global business.
We expect our consolidated third quarter results to be comparable to the second quarter. However, we anticipate our consolidated results will improve significantly in the fourth quarter and as we move into 2026, particularly for our fabrication division.
Capital expenditures and the repurchase of approximately 2.8 million of our common stock and our share repurchase program.
As of June 30th, we had remaining authorization to purchase approximately 5.3 million of our common stock under the program which expires in December 2026.
Further as it relates to the acquired in global business, we expect operating losses over the back half of the year of approximately one $5 million to $2 million.
As we transition the business out of bankruptcy and work to integrate it into our existing operations.
As it relates to end Global. As a June 30th, the total Capital commitment related to the acquisition was 5 and a half million, which consists of 3 and a half million of debt debt. And possession financing of which 1.2 million was Advanced to, in global on the first quarter and 2.3 million was advanced in the second quarter.
These losses are consistent with our expectations for the global business at the time of the acquisition.
A 1 and a half million dollar payment made in the second quarter and exchange for the Assumption of a loan from a creditor of in global.
While these near term challenges are frustrating, we remain confident in our long term competitive positioning and our strong financial position provides us the flexibility to continue executing on our strategic plan.
And transaction costs of approximately 500,000.
Of which 200,000 was incurred in the first quarter and 300,000 was incurred in the second quarter.
This concludes our prepared remarks, operator, you may now open the line for questions.
Thank you.
Of these amounts. The 3 and a half million debtor in possession advances were forgiven by us in connection with the transaction and represents our acquisition purchase price.
Ladies and gentlemen, we will now be conducting a question and answer session.
If you would like to ask a question. Please press star and one on the telephone keypad.
And they want a half million dollar payment for the assumed loan and the transaction costs were expensed during the first and second quarters as incurred.
Confirmation tone will indicate your line is in the question queue.
You May press Star two.
If you would like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
At June 30th, our debt, obligation total 19 million, and our annual payments of principal and interest of approximately 1.7 million will be made in December of each year. Over the remaining 14-year term of the obligation
Ladies and gentlemen, we wait for a moment, while we poll for questions.
Our first question comes from the line of Martin Malloy with Johnson Rice. Please go ahead.
Our cash balance and the long duration of our debt puts us in a strong, liquidity position and provides significant flexibility. To pursue our growth objectives and evaluate further opportunities to return Capital, to our shareholders.
And finally, turning to our outlook for the remainder of 2025.
Good afternoon, congratulations on the award.
Alright, Thanks, Marty and good afternoon.
I just wanted to try to figure out.
Maybe if you could.
As Richard discussed the ongoing trade and macroeconomic uncertainty has pushed out certain project. Award decisions for our fabrication business and lower Capital spending by our customers. In the Gulf continues to pressure results for our services segment.
Spend some time, describing industries end markets, where youre seeing the pickup in dialogue on the large projects and then also if there's any more information you can give us about the large project.
As a result excluding the impact of the Acquired and Global business.
We expect our Consolidated third quarter results to be comparable to the second quarter.
Structural steels.
Broad.
However, we anticipate our Consolidated results will improve significantly in the fourth quarter and as we move into 2026, particularly for our fabrication division,
Is this.
First of a kind projects for Gulf filing or is this something of the tactical filings done before.
Yeah, so as it relates to the pickup in dialogue it really is around.
Further as it relates to the acquired in global business, we expect operating losses over the back half of the year of approximately 1 and a half to 2 million.
The LNG and petrochemical markets that we've been chasing so as you can imagine with some certainty around the tariff positions kind of stabilizing and.
As we transition the business out of bankruptcy and work to integrate it into our existing operations.
These losses are consistent with our expectations for the in global business, at the time of the acquisition.
Momentum being built up on certain LNG projects or.
The frequency of the conversations and more.
While these near-term challenges are frustrating. We remain confident in our long-term competitive positioning and our strong financial position provides us the flexibility to continue executing on our strategic plan.
The quality of the conversation has improved so we are seeing a lot more discussions with the customer with regard to LNG and large petrochemical projects.
This concludes our prepared remarks. Operator, you may now open the line for questions.
Thank you.
Ladies and gentlemen, we will now be conducting a question and answer session.
Your second question with regard to just more specificity around this large award is a large award that we.
If you would like to ask a question, please press star and 1 on your telephone keypad.
A confirmation tone. Will indicate your line is in the question queue?
It's an end market that we play in kind of tangentially, but it is outside oil and gas and so Marty one of the things that we talked about is continuing to diversify Gulf island out of that cyclicality cyclical oil and gas end markets and so we're happy to.
you may press star and 2 if you would like to remove your question from the queue,
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Ladies and gentlemen, we'll wait for a moment while we poll for questions.
Sure.
That debt.
All of that hard work has paid off in terms of potential award.
Our first question comes from the line of Martin Malloy with Johnson rice. Please go ahead.
The award is just structural steel it is something that Gulf Island is very good at.
Uh, good afternoon. Congratulations on the award.
It's a time sensitive award, meaning that the customer really.
Hey thanks. Marty. Good afternoon.
Saw the value in our capabilities, our large fab yard are rolling capacity and just our track record of doing time sensitive projects and so.
Just wanted to try to figure out. Um, maybe if you could um,
We're excited about this award it's an award that.
We will have some high visibility.
And ultimately we look forward to sharing more details of the award here in the next few weeks.
Spend some time describing the industries, uh, the end markets, where you're seeing the the pickup and Dialogue on the large projects and then also, if there's any more information, you can give us about the large project that, you know, structural steels.
Great. That's very helpful. And then just as a follow up.
Pretty broad. Um is this the first of a Kind project for Gulf island or is this something of the typical file is done before?
Yes.
In regards to some of the interest in Gulf Island in the dialogue related large projects are these the type of projects.
Would've been very difficult.
For you to win in the past, but because of.
The tariff situation that current environment.
Your.
Maybe.
They are coming to you.
For the certainty.
Around tariffs and pricing and ability to deliver.
Yes.
Great question, we are seeing.
<unk>.
Yeah. Um, so as it relates to the pickup and and dialogue, it really is around uh, the LNG and petrochemical markets that we've been chasing. Uh so as you can imagine, with some certainty around the, the Tariff positions kind of stabilizing and uh, momentum being built up on FID of of certain LG projects uh, or or the the the the frequency of the conversations and and and more, you know, the the quality of the conversation, it has improved. Um, so we are seeing a lot more, uh, discussions with the customer with regard to LNG and and large petrochemical projects.
More opportunities coming to us because of the tariff but also.
Compounding that is this whole kind of.
Push for.
U S manufacturing right and so.
Both of those policy.
Kind of.
Positions are helping company like all file and so I think the combination of the tariffs and just there's still the uncertainty around.
The ultimate.
The value of the tariffs along with.
They push for more more buy America made in America, I think both of those.
Points are really helping Gulf Island.
Okay, and then sorry to do this but can I sneak one more question.
Good.
I wanted to ask about the labor situation.
You are experiencing there is a lot of very large projects going on the Gulf coast right now.
Uh, your second question with regard is just more specificity around. Uh, this large award is a large award. That that we uh it's an in-market that that you know, we play in kind of tangentially but it is outside oil and gas and so Marty, you know, 1 of the things that we talked about is, uh, continuing to diversify Gulf Island, uh, out of that cyclical, cyclical oil and gas and markets. And so what we're happy to, you know, um share that that that that that, you know, all that hard work is, is paid off in terms of the potential award, uh, that that the award is just structural steel. It is something that Gulf island is very good at, uh, it's a time-sensitive award, uh, meaning that the customer really, you know, you know, saw the value in our capabilities, uh our large Fab yard, our our rolling capacity and and and just, you know, our track record of doing time-sensitive projects. And so uh we're we're excited about this award. It's a it's an
Maybe could you speak to a little bit about.
Well you are encountering.
Yes.
We haven't seen a dramatic.
Award that um will have some high visibility uh and and ultimately you know, we look forward to sharing more details of the award here in the next few weeks.
Impact on the labor as of yet, but but youre absolutely right. There are large projects picking up and.
Great. That was very helpful and then, um, this is a follow-up.
In close.
Close proximity to.
Our facility.
But.
I'll tell you, where we have a little bit of confidence in our ability to get labor is that we went through a pretty tough labor cycle on.
Um, in regards to some of the interesting Gulf Islands and the dialogue related to these large projects, are these the type of projects that...?
Would have been very difficult.
um,
On two large projects prior to this one and we were able to not only hire.
for you to win in the past. But because of
um, the Tariff situation, the current environment, that that
The the high number of folks that we needed at the peak of those jobs, but also <unk>.
Quality quality employees that that wanted to continue to work at Gulf Island, and so we feel good about our position.
You're maybe. Um, they're they're coming to you, um, for the, the certainty around tariffs and pricing and, and ability to deliver.
Kind of location in that competitive environment around the labor availability, especially for these upcoming projects that we're excited about.
Great. Thank you I'll turn it back.
Okay.
Thank you.
A reminder to all participants if you would like to ask a question. Please press star and one on the telephone keypad. Thank you.
Yeah, no, that's that's a great question. We are seeing, you know, um, more opportunities come to us because of the Tariff. Uh, but also, you know, compounding that is, is this whole kind of, um, push for, uh, us manufacturing right. And so, uh, both of those policy, um,
In closing I want to thank our customers and shareholders for their continued support as well as recognize our employees who continue to demonstrate a commitment to <unk> success for those on the call. Thanks again for your interest in Gulf Island.
If we're not able to connect during the quarter I look forward to speaking with you on our next conference call and updating on our progress be safe take care.
Kind of positions are are helping a company like off Island. And and so I think the, the combination of, of the tariffs and, and just still the uncertainty around, uh, the ultimate, you know, the value of the tariffs along with um, a push for, uh, more more, you know, by America made in America. I think both those um points are are are really helping Gulf Island.
Thank you.
This concludes the Gulf Island Conference call, Thank you and Goodbye.
Okay, and then I sorry to do this but can I speak 1 more question in? Absolutely,
I I want to ask about the labor situation um that you're experiencing you know there's a lot of very large projects going on in the Gulf Coast right now and
Maybe you could speak a little bit about what you're encouraging?
2 large projects, you know, prior to this 1 and and we were able to uh not only hire, you know, the the the the high number of folks that we needed at the peak of those jobs but also uh Quality quality employees that that you know, wanted to continue to work at Gulf Island. And so we feel good about uh our position uh and and kind of location and and our that competitive environment around the labor availability, especially for uh, these upcoming projects that that, you know, works out at about
Great, thank you. I'll turn it back.
Thank you.
A reminder to all participants. If you would like to ask a question. Please press star and 1 on your telephone keypad. Thank you.
In closing, I want to thank our customers and shareholders for their continued support as well as recognize our employees, who continue to demonstrate a commitment to Gulf Island success for those on the call. Thanks again for your interest in Gulf Island.
If we're not able to connect during the quarter, I look forward to speaking with you, on our next conference call and updating on our progress, be safe. Take care.
Thank you.
This concludes the G Gulf Island conference call. Thank you and goodbye.