Q3 2025 Sterling Infrastructure Inc Earnings Call
Speaker #1: Good morning, ladies and gentlemen, and welcome to the STERLING INFRASTRUCTURE 3rd QUARTER webcast and conference call. At this time, all lines are in a listen-only mode.
Speaker #1: Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator.
Speaker #1: As a reminder, this call is being recorded on Tuesday, November 4th, 2025. I would now like to turn the conference over to Noelle Dilts, Vice President of Investor Relations and Corporate Strategy.
Speaker #1: Please go ahead.
Speaker #2: Good morning to everyone joining us, and welcome to STERLING INFRASTRUCTURE's 2025 3rd Quarter Earnings Conference Call and Webcast. I'm pleased to be here today to discuss our results with Joe Cutillo, STERLING's Chief Executive Officer, and Nick Grindstaff, STERLING's Chief Financial Officer.
Speaker #2: Joe will open the call with an overview of the company and its performance in the quarter. Nick will then discuss our financial results and guidance, after which Joe will provide a market and full-year outlook.
Speaker #2: We will then open the call up for questions. As a reminder, there are accompanying slides on the Investor Relations section of our website. These slides include details on our full-year 2025 financial guidance.
Speaker #2: Before turning the call over to Joe, I will read the safe harbor statement. The discussion today may include forward-looking statements. Actual results could differ materially from the statements made today.
Speaker #2: Please refer to STERLING's most recent 10-K and 10-Q Q filings for a more complete description of risk factors that could affect these projections and assumptions.
Speaker #2: The company assumes no obligations to update forward-looking statements as a result of new information, future events, or otherwise. Please also note that management may reference EBITDA, adjusted EBITDA, adjusted net income, or adjusted earnings per share on this call, which are all financial measures not recognized under U.S.
Speaker #2: GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures and are earnings release issued yesterday afternoon.
Speaker #2: Our discussion of all results today—including revenue and backlog—refers to figures that adjust prior period results to conform to the current accounting for RHBJB unless otherwise noted.
Speaker #2: Additionally, all comparisons are to the prior year quarter unless otherwise noted. I'll now turn the call over to our CEO, Joe Cutillo.
Speaker #3: Thanks, Noelle. Good morning, everyone, and thank you for joining today's call. STERLING delivered another outstanding quarter. As we achieved strong revenue growth, expanded margins, grew backlog, and generated excellent cash flow.
Speaker #3: We are pleased to discuss these results today with you. But even more excited about the opportunities ahead of us. Beginning with the 3rd Quarter results, revenue grew 32%, fueled by 58% growth in our key infrastructure solution segment, including 42% organic growth.
Speaker #3: In addition, our transportation segment grew 10% in the quarter. We grew adjusted earnings per share by 58% to $3.48, and delivered adjusted EBITDA of $156 million, an increase of 47%.
Speaker #3: Our gross profit margins expanded 280 basis points from the prior year to reach 24.7%. Additionally, operating cash flow generation in the quarter was again very strong, at $84 million.
Speaker #3: Our backlog position and strong visibility drive our confidence in the future. Backlog, at the end of the quarter, totaled $2.6 billion, a 64% year-over-year increase.
Speaker #3: Excluding the contribution from the recent acquisition of CDC, backlog increased a strong 34% year-over-year. E-Infrastructure Solutions backlog of $1.8 billion was up 97% in total and 45% excluding the contributions from CDC.
Speaker #3: When you layer in our unsigned awards and pipeline of future phase opportunities, we have visibility into a pool of work and excess of $4 billion for STERLING.
Speaker #3: The STERLING way, which is our commitment to take care of our people, our environment, our investors, and our communities, while we work to build America's infrastructure, remains our guiding principle as we execute our strategy and grow the company.
Speaker #3: Now, I'd like to discuss our segment results in more detail. In E-Infrastructure, 3rd Quarter revenue grew 58% over prior year, and over 34% sequentially.
Speaker #3: Excluding CDC, revenue grew more than 42% over prior year, and 21% sequentially. The data center market again was a primary growth driver in the quarter.
Speaker #3: As revenue from this market grew more than $125% year-over-year. Adjusted segment operating income grew 57%, or 48% excluding CDC. Adjusted operating margins for the legacy E-Infrastructure Site Development business were 28.4%, an increase over 140 basis points from prior year levels, and 10 basis points sequentially.
Speaker #3: This was driven by our continued shift towards large mission-critical projects, including data centers, where our superior project management and ability to finish jobs on or as scheduled are extremely valuable to our customers.
Speaker #3: We are pleased to have closed the CDC acquisition during the quarter. We see tremendous opportunities ahead to leverage our expanded service portfolio and are seeing early positive reception from our customers.
Speaker #3: CDC contributed 41.4 million dollars of revenue in September and adjusted operating margins that were in line with our expectations. We continue to have very good visibility in the E-Infrastructure business.
Speaker #3: With the recent CDC acquisition, the aggregate of our E-Infrastructure signed backlog, unsigned electrical awards, and future phase Site Development opportunities total approximately $3 billion.
Speaker #3: grew 10% and adjusted operating profit grew 40%, driven by strong market demand and the benefits of the makeshift towards higher margin services. We ended the quarter with transportation solutions backlog of $733 million, a 23% year-over-year increase.
Speaker #3: Sequentially, segment backlog was roughly flat, with awards keeping pace with burn. As a reminder, the wind-down of our Texas low-bid-heavy highway operation is impacting backlog to some extent Moving to transportation this year, but will ultimately benefit segment margins.
Speaker #3: Shifting to building solutions, in Q3, segment revenue declined 1%, and adjusted operating income declined 10%. Adjusted operating margins in the quarter were 12%.
Speaker #3: Overall demand for homes has been impacted, as potential buyers struggle with affordability challenges. Revenue from our legacy residential business declined 17%, driven by softness in the overall housing market.
Speaker #3: Even with these headwinds in building solutions, the strength of STERLING's diversified portfolio and strategy to focus on growth in high-margin end markets enabled us to deliver another record quarter.
Speaker #3: With that, I'd like to turn it over to Nick to give you more details on some of our financial metrics and full year guidance.
Speaker #3: Nick?
Speaker #2: Thanks, Joe, and good morning. I'll begin with our consolidated backlog metrics. All of which are adjusted to exclude RHB from the prior year. Our 3rd Quarter backlog totaled $2.58 billion, a 64% increase from the prior year's 2nd Quarter.
Speaker #2: CDC contributed $475 million to backlog. Excluding CDC, backlog increased 33.8% year-over-year. We closed the quarter with a combined backlog of $3.44 billion, which was up 88%.
Speaker #2: Excluding CDC, combined backlog increased 43.5% year-over-year. 3rd Quarter 2025 book-to-burn ratios excluding CDC were 1.23 times for backlog and 1.76 times for combined backlog.
Speaker #2: Year-to-date book-to-burn ratios excluding CDC were 1.31 times for backlog and 1.58 times for combined backlog. Moving to our cash flow metrics, cash flow from operating activities for the first 9 months of 2025 was a strong $253.9 million compared to $322.8 million in prior year period.
Speaker #2: Cash flow used in investing activities for the first 9 months of 2025 included $46.9 million of net CapEx and $484.2 million for acquisitions, including CDC.
Speaker #2: Year-to-date cash flow from financing activities was a $80.7 million outflow. Primarily driven by shared repurchases of $48.5 million at an average price of $135.96 per share.
Speaker #2: Remaining availability under the existing repurchase authorization is $80.9 million. We are in great shape from a balance sheet perspective. We ended the quarter with a very strong liquidity position consisting of $306.4 million of cash and debt of $294.6 million.
Speaker #2: For a cash net of debt balance of $11.8 million. Our $150 million revolving credit facility remained undrawn during the period. Now, I'd like to discuss our guidance.
Speaker #2: The strong tailwinds behind our business position us for another record year at STERLING in 2025. We are increasing our guidance ranges too. Revenue of $2.375 billion to $2.39 billion which is a more than 5% increase at the midpoint relative to our previous guidance range.
We have a high degree of confidence in our ability to leverage the combination of site development and electrical services as we head into the new year.
For 2025, we expected delivery infrastructure, Revenue, growth of 30% or higher. On an organic basis, and approaching 50%, including CBC
Adjusted operating profit. Margins for E infrastructure. Should approximate 25% for the full year including CBC as compared to 23.7% in 2024.
In transportation Solutions, we are approaching the final year of the current federal funding cycle, which concludes September 2026.
We have built over 2 years of backlog and continue to see good levels of bid activity.
For 2025, we anticipate continued growth in our core Rocky Mountain in Arizona markets.
The downsizing of our low bid heavy highway business in Texas is progressing according to plan.
resulting, in some moderation of Transportation Solutions, Top Line and
backlog.
but should drive meaningful margin improvements, as we move through the year,
We expect Transportation Solutions, Revenue growth in the low teens on an adjusted basis in 2025.
We forecast that adjusted operating profit margins and the 13.5 to 14% range compared to 9.6% in 2024 in Building Solutions we continue to believe the business is well positioned for growth over a multi-year period.
Our key geographies of Dallas Fort Worth Houston and Phoenix. Our expected to see continued population growth, driving new home demand,
Additionally, there's a significant opportunity for share, gain in Houston and Phoenix.
In the near term. We are anticipating a continuation of soft market conditions, driven by affordability challenges.
For a full year Building Solutions Revenue. We forecast a mid to high single-digit decline.
We anticipate adjusted operating margins in the low double digits is compared to 14.8% in 2024.
As a reminder, from a seasonality perspective, our fourth quarter and first quarter tend to be slower than our second and third quarter with the first quarter typically our lowest of the year
On the acquisition front. We are continuing to look for small to mid-size Acquisitions. That are the right strategic fit to enhance our service offerings and Geographic footprint.
Moving to our full year guidance.
47%, adjusted EPS growth.
And 42% adjusted. Even to growth with that, I'd like to turn it over for questions.
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The first question comes from Brent thielman at da Davidson please go ahead.
Hey thanks. Good morning, congrats on a tremendous quarter.
Um, thank you Brett, Joe. Yeah, maybe just the first question, looks, I mean looks like CEC
Find an unsigned work has substantially grown since the June deal announcement. So, again would just be sort of interested on kind of what's behind the momentum and award activity there. And how do we think about sounds like some large data center projects? But how do we think about them converting that over the next sort of 12 plus months?
Yeah. So they they had very good and strong bookings and and uh uh wind in the, in the quarter. Uh, it's mostly around the data center Front as that continues to move forward along with a couple of big projects that are a little little outside of the data center Pro. Um, we are here's what I'll tell you, they had a, they had a great bookings quarter. We're excited about that, but we're really excited about the reception that we're getting from our end customers. And our end markets, from this combination and and are in the early stages, uh, of talking about,
Several 2026 projects. And how do we do those as a joint package instead of an individual package? So we're very excited about that. Um, is is, uh, we said in the, uh, in the call, uh, we have started, uh, doing site development in Texas. We think that is going to grow very aggressively as we go into 2026. And I will tell you, we the teams are working diligently together to pull each other into that market into these next big future phase jobs. So we're we're uh, man, I I'm tickled to death with, uh, with where we are. Um, you know, the team spent 2 weeks together, right? Out of the Chute working on stuff and I was excited about the deal. Before I came away even more excited. Uh, after that 2 weeks together, uh, on the opportunities I saw between, uh, between the site development and the electrical fields
And Joe you, as soon as the, your optimistic around some margin expansion opportunities, there are some specific things that you're seeing in the award activity that, um, you know, gives you some confidence there. What what drives that, you know, margin expansion. Yeah. So, uh, cam combination of things, uh, you know, uh, certainly on just the pure site development, the size of these projects, continue to get bigger and bigger and uh, what our customers are talking to us about the, the next level of of projects that are coming out again. They just, they're getting bigger, which is fantastic for us.
Uh, on the combination of the the electrical, in, in site development side. Uh, you know, we've proven uh, significant productivity gains with the small dry condo business, tuck in. We did at the beginning of January, we we've seen their margins approved, 40%, uh, just by combining that with the site development. We think there's certainly some opportunities to leverage that larger with CDC. Uh, but also as CDC continues to move further and further into Data Center space. Those margins are accretive to their average margins. So if we can build their portfolio and backlog stronger in that area, um, their margins will continue to increase as well, so we feel very good on on continued margin. Uh, enhancement across the segments,
okay, just just last 1, I think along those lines on the E infrastructure business and that the the current backlog I guess for the Legacy site, development side, Joe, could you talk about maybe how
The size of projects even Within mission. Critical has evolved over the last 12 plus months. I know Mission critical is bigger for you now, but
how is that sort of being redefined with the projects you're putting in background now?
Um, I don't know that we're we're really redefining it. Uh, you know, the only the only incremental add to the E of structures obviously the the uh CEC acquisition fees. Uh but the base business was up, was it 34%? I think um, uh uh, in backlog and so for us Mission critical again is is Data Centers. Manufacturing e-commerce. Distribution is kind of what I'll call the 3 core. Uh elements of it. Did I miss anything 45? Yeah. So
Find anything. Uh just the pro the the project size of these data centers. Uh and when the chip plants come out, those are, those are pretty sizable as well. Uh, we'll continue to help us on the margin front. You know, 1 of the things we we really don't talk about in the script that I think is important that everybody understands is. Uh, we said we're in Texas. Uh, I will tell you that uh there's some other Geographic footprints that we are aggressively looking at expanding into uh not because there's large projects there today. Uh but we believe there's going to be large projects there based on our customers telling us that uh, over the next 2 to 3 years. So uh, we're trying to get in early uh get our footprint established and and be ready for those to to come out.
Um, yeah, Brent this is Noelle, I would just say, you know, we're now over 80% of our work is Mission critical in backlog. Um, you know, looking at kind of data centers, manufacturing, Etc. Um, so that continues to move higher, and then to Joe's Point even within that bucket of mission critical, the projects are getting larger. And more complex than that, there's underground infrastructure, which is, which is great for us. And so that intensity of the work we're doing continues to expand. Yeah. And just to add to that. I think it it sparked the, you know, kind of the thought, if you think not only we, we talk about data centers, getting bigger. But I will tell you that, every piece of mission critical jobs are are getting bigger in size. Um, as we talk about e-commerce,
Distribution coming back and I think we're up 150% in backlog growth in, in the e-commerce distribution. Um, those jobs are about 2 to 2 and a half times the size of historical ones. Not only are the footprints getting bigger. But what what Noelle mentioned the infrastructure associated with these, uh, in e-commerce Distribution Center is starting to look a little bit more like a Data Center. And what I mean by that is with all the EVS that are being used by an Amazon
All the underground utilities that now have to be run to these charging stations and everything else look like a mini duct bank. Um, so it just continues to add to the complexity of the size and the scope, which is perfect for us. And now, adding the electrical piece, you can quickly in your head see how we can integrate those two together and make that part of the package.
Okay, very good. Thanks. All for all the detail. I'll pass it on.
Thanks. Bye.
Thank you. The next question comes.
From Julio Romero.
Thanks. Hey, good morning, Joe, Nick and Noel. Um, wanted to hone in on the combined backlog, plus the forward pipeline of future, phase work or 4 billion, plus that you mentioned help us think about the mix of in markets or customers that are driving the growth of that forward Pipeline. And then, secondly, you know, what's your estimation of when that forward pipeline begins to convert into orders.
Well, I think you gotta, you gotta break it down into the into the pieces. Uh the backlog. We're uh we're either converting or we'll be converting shortly into work.
Um, the UN the low unsigned. Um, those are projects that we either have letters of intents or we have 1, the the physical job or negotiating terms of contracts or there's some final design work that's taking place. Uh, those are likely to start in 26 uh depending on the the actual project. When in 26 could vary uh in some may start first quarter, second quarter third quarter uh a lot of the big design build Highway projects, I will tell you are going to start second and third quarter of next year uh kind of in the process there and then that future phase work. The way to look at it is as we burn off.
Current backlog, the work, we're working on today, that then flows into current backlog. So that spreads out over what, I'll call a 2627 and in the 28th, uh, time frame in which that will hit.
Got it. Very helpful there. And then, you know, just go ahead. Sorry.
I'm sorry I just want to make sure I answered everything you're looking for. I would say in terms of the composition. Um well yeah. You know if you if you take a look at it, 3 billion of the 4 is in the infrastructure uh and the the highest percentage of that is going to be data center which would probably be 75 or 80% of of that piece there.
Got it. Extremely helpful there. Um,
Period, unless I'm mistaken. And then, um, just talk about the margin profile of.
What do you have in transportation, backlog, and unsigned awards?
Yeah, I think uh people grossly underestimate the progress of Transportation group is is really bad. We've we've got Best in Class margins and they continue to get better. Um it's really again it's really around what I'll call Project selection and and focus is we continue to do more uh design build or alternative delivery, type projects along with Aviation and rail continue to diversify that portfolio. Uh, the margins will continue to to increase. Uh, we haven't seen uh a significant part of that though. We've seen a little uh from the wind down of our, our Texas low bid uh uh business. Uh, we'll see that impact more in 2026. As we we weed out or weaned out, I should say, uh, that backlog. But that'll continue. So, probably the first most of that would be burned off in the first half of of 2026,
great, I'll pass it on. Thanks very much.
Thank you. The next question comes from, Adam thalheimer, at Thompson Davis. Please go ahead.
Uh, good morning guys, great quarter.
Hey, Adam, thank you. Uh, Joe, I wanted to ask you about... So you said, 26 and 27, big pool of mega projects. Um, you know, obviously your ability to bid on mega projects isn't, or your capacity to bid isn't infinite.
So, how do you think about how you prioritize, you know what, your bidding on and and how do you price that work?
Yeah, I think it that's a that's a good question Adam. Um we do have a fair more capacity, uh, you know, we've been
Planning for this. We've been in conversations on some of these projects for for a couple years now with our customers. So we have been doing stuff internally uh, to plan for this is, we've said generally our biggest limitation to capacity is around project management. In in the program we put in place to develop future project managers. Uh, we've been doing it for I think 4 or 5 years now is really starting to pay off to add some increased capacity, but at the end of the day, uh I you know, I don't want anybody to be surprised if we pass on 1 of these Mega projects, because if the pricing is not right, the margins are not right or the complexity of the contracts don't make sense for us.
Um, we're okay to pass on that. With the visibility we have in data centers and the rest of mission critical stuff coming out. Uh, but I will tell you we're looking at those, uh, and we will continue to build capacity as needed, uh, to to do those. Um, you know, just to keep in mind if we have a year Runway uh to build capacity, we can build a lot if somebody comes in tomorrow and says, I've got 3, 500 million dollar jobs, it'd be tough for us to and, and they need to start 60 days. That would be a challenge for us. But we've got our customers have been very good, the hyperscalers and and and even these big uh, chip plants have been very good at kind of forward looking and and anticipating. Uh, what's coming out, the other good thing on the chip plants is they've taken much longer than I think the Builders of anticipated for them to hit the ground running with all the upfront work, that's had to be done. So, we've seen these coming now for for 2 years. Um, so we'll we'll be ready.
And then, um, I was curious, you talked about entering Texas for site prep.
Uh, I guess you're doing that organically and I was curious if, um, or kind of what you're doing with the assets from the Texas Highway work that's winding down.
Yeah, another good question. Well, you may see those, uh, on a site development job or two. Uh, the smaller assets that we have there, uh, are very capable of doing some of the utility and underground work, uh, with CEC. Uh, in those assets combined, we can start doing duct banks in Texas. So I think, uh, over the next 6 to 12 months, if you go to one of our sites, you may see some stuff that has a TSC logo on it.
Cool. Uh and then lastly you said you were you continue to look at small and mid-size deals, was that was that just a comment in the residential segment or is that for the whole company.
Isn't around, uh, added either capabilities, Geographic expansion, um, or just pure, uh, pure Assets in in and around the infrastructure.
Thanks guys.
Thank you. The next question comes from, Noah Levites at William Blair please go ahead.
Thanks Joe, Nick and Noel good morning, and thanks for taking my questions. Um, to start off on the transportation side, has there been any impact from the government shutdown on transportation funding? And you've also mentioned in the past uh about a potential successor bill for the iija. Um can you can you give any update as to if do you still think that's moving along? Should it be bigger?
Anything you can add their thanks.
Yeah, so first uh, no impacts from from, uh, government shutdown but the funding, uh, that's on these jobs has already been allocated. It's out there. Uh, so no, no, uh, no impact at all, uh, on that. Uh, that's not to say there may. There may be some Grant projects or Grant programs that somebody has out there, uh, that could be delayed. Uh, good news. Is I, I'm not aware that we have anything tied to that. I haven't heard a single word from our business units in a few years. So, uh, not not an issue there on the, uh, next bill. Uh, the
Existing Bill, uh, ends at the end of September of 2026. Uh,
I will say that, uh, you know, I was with the DC team, it's probably been 4 weeks ago, an hour for 5, uh, things have been progressing, very well. Um, I always use the caveat. It is DC and it is the government, and we can see the functions are dysfunctions of things. Uh, but uh, they're they're probably 6 months ahead of where they have been historically, and uh, I'm optimistic that something will happen, uh, in a timely manner. However, keep in mind that why we are not losing any sleep over. This is, we will go into September with roughly 2 years of backlog. Uh, second uh, if there is not a resolution or a new bill passed is probably how I should phrase it. Um they will put an extension in place generally or historically the extensions have been the current kind of spend rates plus an inflation adjustment. So we don't stop. We we continue
Uh, at that, the thing that does generally happen in that year, uh, where there's a gap or that 6 months, or whatever time frame it, it takes to, to bridge to the new, uh, new bill is the state's tend to do more smaller projects than, uh, the big multi-year projects because they're unsure of how much funding they'll have over a multi-year period.
But the the reality is uh, the world doesn't shut down.
Our projects don't stop uh the bid activity uh, projects change a little bit. Um but what we're seeing, you know, the thing that people don't understand.
Is that there is spending that will continue to take place on this current bill. There's still 2 years of spending left, approximately on the current bill that they have to get out before the end. So, today, we're anticipating going in, with 2 years of backlog, we can go in with more backlogs than that. Depending on what projects get squeezed into this last call at 18 months or or less. Now, I guess it's almost a year, uh, till the next week.
Great, that's helpful. Um, and then just my my last question you said that data center growth was greater than 125% which is exceptional, and it comes after last quarter, which was more than doubled. Um, can you can you break that down a bit more just is, is that growth in existing projects? Is that new projects coming online? Is it the, the current phases that the work was being done during the quarter being bigger phases? Like, can you? Yeah.
Backlog, but we want enough new projects to offset that burn rate and grow that total backlog.
Thank you. The next question comes from. Alex Rago at Texas Capitol. Please go ahead.
Good morning, very nice quarter and thanks for taking my questions. Um, a lot of good answers here so far on the call, but uh, I got a few here um, questions for you.
Do you generally experienced any permitting issues that possibly delay project starts historically?
Well, what I will tell you is um, the permitting process certainly is longer today than it was preco and I would have told you preco that it sucked and was really long, okay? Um, it it definitely takes longer for permits to, to happen. Um, but we generally, uh, on the, on the site development side, uh, where we see the delay isn't from the time we get the contracts to start, it's more waiting to get the contract. So we know the projects are coming, we know that it's going to we're going to win them, uh but we may not win them in this month and maybe a month later or may not be this quarter or maybe the next quarter. Uh, we haven't seen uh uh
Historically, where we've got equipment ready to go. We're ready or on the site and we have delays. So we're fortunate in in that where it takes place in our process tends to be before we start. However, I will tell you, uh, that from historical, uh, numbers. It certainly is, uh, what used to take 6 weeks for a permit now, takes 3 months.
Maybe 5 in certain markets. Um so that upfront that piece is is the laying stuff. It's also why some of these Mega projects are taking so long to hit the ground, you know, these these chip plants. We know they're there, we know they're coming. Uh but they're still going through a lot of the permitting getting utilities and utilities require permits and everything else, right? So it kind of Cascades. Uh so it's definitely uh, a long, a long pole in the tech. I I I will tell you and I I've told everybody this, if the US wants to accelerate
Onshoring.
Reshoring chip plants, whatever it is out of build. If they can get through the Regulatory and permitting issues, it would speed up these projects and spending and funding exponentially.
And then within Building Solutions are, are you seeing any signs of green shoots?
I'm sorry, say that again. I
Within Building Solutions. Are you seeing any signs that 2026 could could start to improve again?
No. Uh, you know, I I think we don't believe honestly that anything would happen until the second half of 26 at the earliest. Um, you know, certainly interest rates continue to creep down, uh, Builders are have a lot of programs in place. Uh, we have not seen, we we've flattened, okay. It's not, it's not getting worse. That's, that's the good news. Uh, but we have not seen anything, uh, that would tell us. We're going to see an uptick here any anytime soon.
Thank you very much.
Thank you, we have no further questions. I will try to call back over to Joe catello for closing comments.
Thank you. Um, thanks again, everybody for joining today's call. If you have any further follow-up questions or would like to set up a call, please contact Noelle Dilts. Her contact information is in our earnings release. Hope everybody has a great day, and I appreciate you taking the time. Thanks.
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask you that you please disconnect your lines.