Q4 2025 Limbach Holdings Inc Earnings Call

March 3, 2026

Operator: Good morning, and welcome to the Limbach Holdings Q4 and Full Year 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to your host, Lisa Fortuna of Financial Profiles. You may proceed.

Speaker #2: A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker #2: I will now turn the conference over to your host, Lisa Fortuna of Financial Profiles. You may proceed. Good morning and thank you for joining us today to discuss Limbach Holdings' financial results for the fourth quarter and full year 2025.

Lisa Fortuna: Good morning. Thank you for joining us today to discuss Limbach Holdings financial results for Q4 and full year 2025. Yesterday, Limbach issued its earnings release and filed its Form 10-K for the period ended 31 December 2025. Both documents, as well as an updated investor presentation, are available on the investor relations section of the company's website at limbachinc.com. Management may refer to select slides during today's call and encourages investors to review the presentation in its entirety. On today's call are Michael McCann, President and Chief Executive Officer, and Jayme Brooks, Executive Vice President and Chief Financial Officer. We will begin with prepared remarks and then open the call to questions. Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws.

Lisa Fortuna: Good morning. Thank you for joining us today to discuss Limbach Holdings financial results for Q4 and full year 2025. Yesterday, Limbach issued its earnings release and filed its Form 10-K for the period ended 31st December 2025. Both documents, as well as an updated investor presentation, are available on the investor relations section of the company's website at limbachinc.com. Management may refer to select slides during today's call and encourages investors to review the presentation in its entirety. On today's call are Michael McCann, President and Chief Executive Officer, and Jayme Brooks, Executive Vice President and Chief Financial Officer. We will begin with prepared remarks and then open the call to questions. Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws.

Speaker #2: Yesterday, Limbach issued its earnings release and filed its Form 10-K for the period ended December 31, 2025. Both documents, as well as an updated investor presentation, are available on the Investor Relations section of the company's website at limbachinc.com.

Speaker #2: Management may refer to select slides during today's call and encourages investors to review the presentation in its entirety. On today's call are Michael McCann, President and Chief Executive Officer; and Jayme Brooks, Executive Vice President and Chief Financial Officer.

Speaker #2: We will begin with prepared remarks and then open the call to questions. Before we begin, I would like to remind you that today's comments will include Laws.

Speaker #2: Forward-looking statements are identified by words such as "will," "be," "intend," "believe," "expect," "anticipate," or other comparable words and phrases. Statements that are not historical facts, such as those about expected financial performance, are also forward-looking statements.

Lisa Fortuna: Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts, such as those about expected financial performance, are also forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements. A discussion of the factors that could cause a material difference in the company's results compared to these forward-looking statements is contained in Limbach's SEC filings, including reports on 10-K and 10-Q. Please note on today's call, we were referring to non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our Q4 2025 earnings release and in our investor presentation, both of which can be found on Limbach's investor relations website and have been furnished in the Form 8-K filed with the SEC.

Speaker #2: Actual results may differ materially from those contemplated by such forward-looking statements. A discussion of the factors that could cause and material difference in the company's results compared to these forward-looking statements is contained in Limbach's SEC filings including reports on 10-K and 10-Q.

Speaker #2: Please note on today's call, we will be referring to non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our fourth quarter 2025 earnings release and in our investor presentation.

Speaker #2: Both of which can be found on Limbach's Investor Relations website and have been furnished in the Form 8-K filed with the SEC. With that, I'll now turn the call over to President and CEO Mike McCann.

Lisa Fortuna: With that, I'll now turn the call over to President and CEO, Mike McCann.

Speaker #2: Good morning and welcome to our Stockholders, Analysts, and Interested Investors. We appreciate you joining us today. Yesterday, we reported our fourth quarter and full year 2025 results.

Michael M. McCann: Good morning and welcome to our stockholders, analysts, and interested investors. We appreciate you joining us today. Yesterday, we reported our Q4 and full year 2025 results. Before I get into some of the business highlights, I want to recognize all the Limbach team members who deliver safe, quality-driven customer solutions. Our strategy is built on the foundation of great people, and this team delivered a record-setting year. I also wanna comment on our announcement yesterday that we'll be relocating our headquarters to Tampa, Florida.

Mike McCann: Good morning and welcome to our stockholders, analysts, and interested investors. We appreciate you joining us today. Yesterday, we reported our Q4 and full year 2025 results. Before I get into some of the business highlights, I want to recognize all the Limbach team members who deliver safe, quality-driven customer solutions. Our strategy is built on the foundation of great people, and this team delivered a record-setting year. I also wanna comment on our announcement yesterday that we'll be relocating our headquarters to Tampa, Florida.

Speaker #2: But before I get into some of the business highlights, I want to recognize all the Limbach team members who deliver safe, quality-driven customer solutions.

Speaker #2: Our strategy is built on the foundation of great people, and this team delivered a record-setting year. I also want to comment on our announcement yesterday that we will be relocating our headquarters to Tampa, Florida.

Speaker #2: The relocation of our headquarters to Tampa reflects the fact that a significant portion of our senior leadership team and nearly 40% of our corporate workforce are already based in Tampa.

Michael M. McCann: The relocation of our headquarters to Tampa reflects the fact that a significant portion of our senior leadership team and nearly 40% of our corporate workforce are already based in Tampa, where our presence has grown substantially since establishing the corporate office in 2020. The move marks a milestone of the company's 125th anniversary year, and we look forward to the future as we continue to grow and strengthen our presence in Tampa. Turning to our strong results. 2025 marked a record year of significant total revenue growth of 24.7%. Notably, it's the first year our revenue has grown substantially since 2020, when we began executing our strategic shift to ODR.

Mike McCann: The relocation of our headquarters to Tampa reflects the fact that a significant portion of our senior leadership team and nearly 40% of our corporate workforce are already based in Tampa, where our presence has grown substantially since establishing the corporate office in 2020. The move marks a milestone of the company's 125th anniversary year, and we look forward to the future as we continue to grow and strengthen our presence in Tampa. Turning to our strong results. 2025 marked a record year of significant total revenue growth of 24.7%. Notably, it's the first year our revenue has grown substantially since 2020, when we began executing our strategic shift to ODR.

Speaker #2: Our presence has grown substantially since establishing the corporate office in 2020. The move marks a milestone of the company's 125th anniversary year, and we look forward to the future as we continue to grow and strengthen our presence in Tampa.

Speaker #2: Now, turning to our strong results. 2025 marked a record year of significant total revenue growth of 24.7%. Notably, it's the first year our revenue has grown substantially since 2020.

Speaker #2: When we began executing our strategic shift to ODR. Our ODR GCR mix for 2025 was 75% ODR and 25% GCR. Right in the middle of our guidance range, and a meaningful improvement from 2024's mix of 67% ODR and 33% GCR.

Michael M. McCann: Our ODR GCR mix for 2025 was 75% ODR and 25% GCR, right in the middle of our guidance range and a meaningful improvement from 2024's mix of 67% ODR and 33% GCR. Total ODR revenue grew by 40.6% with organic ODR revenue growth of 17%, reinforcing organic growth as a major driver of our success. Total gross margin was 26.2% for 2025, and 28.2% when excluding all of our acquisitions since 2021, demonstrating their legacy business gross margin has remained stable when compared to 2024. We reported record full-year Adjusted EBITDA of $81.8 million within our guidance of $80 to $86 million, and a 28.4% increase from 2024.

Mike McCann: Our ODR GCR mix for 2025 was 75% ODR and 25% GCR, right in the middle of our guidance range and a meaningful improvement from 2024's mix of 67% ODR and 33% GCR. Total ODR revenue grew by 40.6% with organic ODR revenue growth of 17%, reinforcing organic growth as a major driver of our success. Total gross margin was 26.2% for 2025, and 28.2% when excluding all of our acquisitions since 2021, demonstrating their legacy business gross margin has remained stable when compared to 2024. We reported record full-year Adjusted EBITDA of $81.8 million within our guidance of $80 to $86 million, and a 28.4% increase from 2024.

Speaker #2: Total ODR revenue grew by 40.6%, with organic ODR revenue growth of 17%, reinforcing organic growth as a major driver of our success. Total gross margin was 26.2% for 2025, and 28.2% when excluding all of our acquisitions since 2021, demonstrating that our legacy business gross margins remain stable when compared to 2024.

Speaker #2: We reported record full-year adjusted EBITDA of $81.8 million within our guidance of 80 to 86 million, and a 28.4% increase from 2024. We generated 71.9 million in cash from operations, excluding working capital, in 2025, with 21.4 million generating Q4, reflecting our high rate of cash flow conversion.

Michael M. McCann: We generated $71.9 million in cash from operations, excluding working capital in 2025, with $21.4 million generated in Q4, reflecting our high rate of cash flow conversion. In December, we authorized a $50 million share repurchase program. Finally, our balance sheet remains strong, with only $24.6 million in net debt or a net debt to Adjusted EBITDA ratio of 0.3x. Turning to 2026, we are focused on 3 strategic core growth pillars, which include ODR and organic total revenue growth, margin expansion through evolved customer solutions, and scaling the business through acquisitions. Our first pillar is to grow ODR and organic total revenue. Our revenue mix between ODR and GCR to hold steady while we focus on growing total revenue, with ODR being the primary growth driver.

Mike McCann: We generated $71.9 million in cash from operations, excluding working capital in 2025, with $21.4 million generated in Q4, reflecting our high rate of cash flow conversion. In December, we authorized a $50 million share repurchase program. Finally, our balance sheet remains strong, with only $24.6 million in net debt or a net debt to Adjusted EBITDA ratio of 0.3x. Turning to 2026, we are focused on 3 strategic core growth pillars, which include ODR and organic total revenue growth, margin expansion through evolved customer solutions, and scaling the business through acquisitions. Our first pillar is to grow ODR and organic total revenue. Our revenue mix between ODR and GCR to hold steady while we focus on growing total revenue, with ODR being the primary growth driver.

Speaker #2: In December, we authorized a $50 million share repurchase program, and finally, our balance sheet remained strong with only 24.6 million in net debt or a net debt-to-adjusted EBITDA ratio of 0.3 times.

Speaker #2: Turning to 2026, we are focused on three strategic core growth pillars, which include ODR and organic total revenue growth, margin expansion through evolved customer solutions, and scaling the business through acquisitions.

Speaker #2: Our first pillar is to grow ODR and organic total revenue. Our revenue mix between ODR and GCR to hold steady, while we focus on growing total revenue with ODR being the primary growth driver.

Speaker #2: Our strategy for growth is designed to combine national scale with local execution. Allowing us to better serve mission-critical facilities. We're investing both in the local and national level to accelerate sales leveraging genetic growth.

Michael M. McCann: Our strategy for growth is designed to combine national scale with local execution, allowing us to better serve mission-critical facilities. We're investing both at the local and national level to accelerate sales, leveraging growth. We have supported both growth objectives by strategically positioning two seasoned senior executives on accelerating sales. One executive is focused on local sales, while the other is responsible for driving national relationships. We believe this strategy will be a key element to supporting our investments and driving growth. As we focus on growth, we continue to manage project risk and reward through careful selection based on project size and short life cycle. In Q3, we discussed in detail our various ODR revenue streams. As we mentioned, ODR revenue is broken down into two different categories.

Mike McCann: Our strategy for growth is designed to combine national scale with local execution, allowing us to better serve mission-critical facilities. We're investing both at the local and national level to accelerate sales, leveraging growth. We have supported both growth objectives by strategically positioning two seasoned senior executives on accelerating sales. One executive is focused on local sales, while the other is responsible for driving national relationships. We believe this strategy will be a key element to supporting our investments and driving growth. As we focus on growth, we continue to manage project risk and reward through careful selection based on project size and short life cycle. In Q3, we discussed in detail our various ODR revenue streams. As we mentioned, ODR revenue is broken down into two different categories.

Speaker #2: We have supported both growth objectives by strategically positioning two seasoned senior executives on accelerating sales. One executive is focused on local sales, while the others are responsible for driving national relationships.

Speaker #2: We believe this strategy will be a key element to supporting our investments and driving growth. As we focus on growth, we continue to manage project risk and reward through careful selection based on project size, and short lifecycle.

Speaker #2: In Q3, we discussed in detail our various ODR revenue streams, and as we mentioned, ODR revenue is broken down into two different categories. The first is fixed price projects greater than $10,000, which represented approximately 73% of total ODR revenue for 2025.

Michael M. McCann: The first is fixed-price projects greater than $10,000, which represented approximately 73% of total ODR revenue for 2025, with an average ODR project size of approximately $240,000. The second core category is recurring quick-burning revenue, which includes maintenance contracts, work orders for small fixed-price jobs less than $10,000, and time material work. In full year 2025, our quick-burning revenue represented approximately 27% of total ODR revenue. We have also expanded our GCR gross profit by carefully managing the risk and reward profile as it relates to product size and scope. The average GCR project for 2025 was only $2.6 million. Our second pillar is margin expansion through evolved customer solutions.

Mike McCann: The first is fixed-price projects greater than $10,000, which represented approximately 73% of total ODR revenue for 2025, with an average ODR project size of approximately $240,000. The second core category is recurring quick-burning revenue, which includes maintenance contracts, work orders for small fixed-price jobs less than $10,000, and time material work. In full year 2025, our quick-burning revenue represented approximately 27% of total ODR revenue. We have also expanded our GCR gross profit by carefully managing the risk and reward profile as it relates to product size and scope. The average GCR project for 2025 was only $2.6 million. Our second pillar is margin expansion through evolved customer solutions.

Speaker #2: With an average ODR project size of approximately $240,000. The second category is recurring quick-burning revenue, which includes maintenance contracts, work orders for small fixed-price jobs less than $10,000, and time and material work.

Speaker #2: In full year 2025, our quick-burning revenue represented approximately $27% of total ODR revenue. We have also expanded our GCR gross profit by carefully managing the risk and reward profile.

Speaker #2: As it relates to project size and scope, the average GCR project for 2025 was only $2.6 million. Our second pillar is margin expansion through evolved customer solutions.

Speaker #2: We differentiate ourselves from the competition by being a single-source provider for building owners. Capable of providing comprehensive lifecycle engineering solutions in 2026, we plan to continue to expand our offerings in six different customer solutions, including integrated facility planning, service maintenance, equipment replacements and retrofits, new equipment, mechanical, electrical, plumbing, and control or MEPC infrastructure upgrades, energy efficiency and decarbonization analysis and projects.

Michael M. McCann: We differentiate ourselves from the competition by being a single source provider for building owners, capable of providing comprehensive lifecycle engineering solutions. In 2026, we plan to continue to expand our offerings in six differentiated customer solutions, including integrated facility planning, service and maintenance, equipment replacements and retrofits, equipment, mechanical, electrical, plumbing, and control or MEPC infrastructure upgrades, energy efficiency and decarbonization analysis and projects. Our staff is being trained to bundle customer solutions and deliver long-term value to our clients. Each individual transaction may have a different margin profile, but the overall quantity of gross profit and the quality of blended margin is carefully managed. From 2020 through 2025, our total gross margin for the legacy branch businesses has grown from 14.3% to 28.2%.

Mike McCann: We differentiate ourselves from the competition by being a single source provider for building owners, capable of providing comprehensive lifecycle engineering solutions. In 2026, we plan to continue to expand our offerings in six differentiated customer solutions, including integrated facility planning, service and maintenance, equipment replacements and retrofits, equipment, mechanical, electrical, plumbing, and control or MEPC infrastructure upgrades, energy efficiency and decarbonization analysis and projects. Our staff is being trained to bundle customer solutions and deliver long-term value to our clients. Each individual transaction may have a different margin profile, but the overall quantity of gross profit and the quality of blended margin is carefully managed. From 2020 through 2025, our total gross margin for the legacy branch businesses has grown from 14.3% to 28.2%.

Speaker #2: Our staff is being trained to bundle customer solutions and deliver long-term value to our clients. Each individual transaction may have a different margin profile, but the overall quantity of gross profit and the quality of blended margins carefully managed.

Speaker #2: From 2020 through 2025, our total gross margin for the legacy branch businesses has grown from 14.3% to 28.2%. In total gross profit margin, total gross 50%, demonstrating that our teams are able to grow total gross profit while simultaneously enhancing margin.

Michael M. McCann: In total gross profit margin, total gross profit dollars has increased almost 50%, demonstrating that our teams are able to grow total gross profit while simultaneously enhancing margin. The third pillar is strategic M&A, aimed at extending the reach of the Limbach brand, strengthening our market presence, and expanding our capabilities. Through targeted acquisitions, we seek to diversify our vertical market exposure and broaden our geographic footprint while adding new offerings to enhance our customer solutions. In 2026, we remain selective, as we would expect to pursue one to three acquisitions that meet our return thresholds by expanding our geographic footprint and increasing our local service capabilities. Additionally, we are looking for companies that expand our six core customer solutions. We are particularly focused on companies that expand our integrated facility planning solution.

Mike McCann: In total gross profit margin, total gross profit dollars has increased almost 50%, demonstrating that our teams are able to grow total gross profit while simultaneously enhancing margin. The third pillar is strategic M&A, aimed at extending the reach of the Limbach brand, strengthening our market presence, and expanding our capabilities. Through targeted acquisitions, we seek to diversify our vertical market exposure and broaden our geographic footprint while adding new offerings to enhance our customer solutions. In 2026, we remain selective, as we would expect to pursue one to three acquisitions that meet our return thresholds by expanding our geographic footprint and increasing our local service capabilities. Additionally, we are looking for companies that expand our six core customer solutions. We are particularly focused on companies that expand our integrated facility planning solution.

Speaker #2: The third pillar is strategic M&A aimed at extending the reach of the Limbach brand, strengthening our market presence, and expanding our capabilities. Through targeted acquisitions, we seek to expose and broaden our geographic footprint while adding new offerings to enhance our customer solutions.

Speaker #2: In 2026, we remain selective, as we would expect to pursue one to three acquisitions to meet our return thresholds by expanding our geographic footprint and increasing our local service capabilities.

Speaker #2: expand our six core customer solutions. We are particularly focused on companies that expand our integrated facility planning solution, due to their deep involvement of the capital planning process.

Michael M. McCann: Due to their deep involvement in the capital planning process, these companies tend to have national relationships in healthcare, data centers, and industrial manufacturing. We believe the synergies between these two types of deals will help us reach our long-term vision to be an indispensable building system solution partner, combining national reach with local presence. Turning to our last acquisition, Pioneer Power, where the integration is well underway. We have largely completed the first phase of our value creation process centered around system integration. Next, we are focused on the second phase of our value creation, which is all about increased gross margin. Key strategic priorities in 2026 will include negotiating T&M contracts, measuring margins by revenue size and type while setting specific goals, introducing Limbach sales training and sales enablement resources, identifying cross-selling opportunities by leveraging our respective national account relationships, and aligning resources to most profitable accounts.

Mike McCann: Due to their deep involvement in the capital planning process, these companies tend to have national relationships in healthcare, data centers, and industrial manufacturing. We believe the synergies between these two types of deals will help us reach our long-term vision to be an indispensable building system solution partner, combining national reach with local presence. Turning to our last acquisition, Pioneer Power, where the integration is well underway. We have largely completed the first phase of our value creation process centered around system integration. Next, we are focused on the second phase of our value creation, which is all about increased gross margin. Key strategic priorities in 2026 will include negotiating T&M contracts, measuring margins by revenue size and type while setting specific goals, introducing Limbach sales training and sales enablement resources, identifying cross-selling opportunities by leveraging our respective national account relationships, and aligning resources to most profitable accounts.

Speaker #2: These companies tend to have national relationships in healthcare, data centers, and industrial manufacturing. We believe the synergies between these two types of deals will help us reach our long-term vision to be an indispensable building system solution partner combining national reach with local presence.

Speaker #2: Turning to our last acquisition, Pioneer Power, where the integration is well underway. We have largely completed the first phase of our value creation process, centered around system integration.

Speaker #2: Next, we are focused on the second phase of our value creation, which is all about increased gross margin. These strategic priorities in 2026 will include negotiating T&M contracts, measuring margins by revenue size, and type, while setting specific goals introducing Limbach sales training and sales Additionally, we are looking for companies that enablement resources, identifying cross-selling opportunities by leveraging our respective national account relationships, and aligning resources to most profitable accounts.

Speaker #2: We expect margin improvement at Pioneer to take shape throughout 2026, with exit margins higher than current levels as we start the second phase of our value creation process.

Michael M. McCann: We expect margin improvement at Pioneer to take shape throughout 2026, with exit margins higher than current levels as we start the second phase of our value creation process. We expect the gross margin improvement to continue for the next two to three years until Pioneer's margins reach alignment with the current business. Our record for improving margins of acquired companies is best demonstrated by our acquisition of Jake Marshall in December of 2021. At the time of purchase, the gross margin was approximately 13.4%. After four years of executing our value creation model, from benchmarking to establishing account-focused teams, Jake Marshall's gross margin increased to 28% for 2025. Today, Pioneer Power's gross margins is below the level where Jake Marshall was at the time of the acquisition. This is an indication of the meaningful value creation opportunity we have.

Mike McCann: We expect margin improvement at Pioneer to take shape throughout 2026, with exit margins higher than current levels as we start the second phase of our value creation process. We expect the gross margin improvement to continue for the next two to three years until Pioneer's margins reach alignment with the current business. Our record for improving margins of acquired companies is best demonstrated by our acquisition of Jake Marshall in December of 2021. At the time of purchase, the gross margin was approximately 13.4%. After four years of executing our value creation model, from benchmarking to establishing account-focused teams, Jake Marshall's gross margin increased to 28% for 2025. Today, Pioneer Power's gross margins is below the level where Jake Marshall was at the time of the acquisition. This is an indication of the meaningful value creation opportunity we have.

Speaker #2: We expect the gross margin improvement to continue for the next two to three years until Pioneer's margins reach alignment with the current business. Our record for improving margins of acquired companies is best demonstrated by our acquisition of Jake Marshall in December of 2021.

Speaker #2: At the time of purchase, the gross margin was approximately 13.4%. After four years of executing, our value creation model from gross profit benchmarking to establishing account-focused teams Jake Marshall's gross margin creates to 28% for 2025.

Speaker #2: Today, Pioneer Power's gross margins is below the level where Jake Marshall was at the time of the acquisition. This is an indication of the meaningful value creation opportunity we have.

Michael M. McCann: Turning to the macro environment, we experienced positive demand improvement in Q4 across all our verticals. Our institutional markets, healthcare, life science, and higher education rebounded after softness in the middle of last year. The government shutdown and the DC policy changes caused many of our customers to temporarily pause activities. The subsequent recovery in these verticals allowed us to achieve 24% ODR organic revenue growth in Q4. I'll now make some specific comments on several of our key verticals. In our healthcare vertical market, many customers were spending their leftover budgets while also preparing 2026 normalized spending patterns during Q4. Due to the uncertainty of economic conditions in 2025, several national customers have started to engage us much earlier in their planning process. Our unique combination of professional service and installation expertise creates both speed to market and cost certainty advantages.

Mike McCann: Turning to the macro environment, we experienced positive demand improvement in Q4 across all our verticals. Our institutional markets, healthcare, life science, and higher education rebounded after softness in the middle of last year. The government shutdown and the DC policy changes caused many of our customers to temporarily pause activities. The subsequent recovery in these verticals allowed us to achieve 24% ODR organic revenue growth in Q4. I'll now make some specific comments on several of our key verticals. In our healthcare vertical market, many customers were spending their leftover budgets while also preparing 2026 normalized spending patterns during Q4. Due to the uncertainty of economic conditions in 2025, several national customers have started to engage us much earlier in their planning process. Our unique combination of professional service and installation expertise creates both speed to market and cost certainty advantages.

Speaker #2: Turning to the macro environment, we experienced positive demand improvement in the fourth quarter across all our verticals. Our institutional markets, healthcare, life science, and higher education rebounded after softness in the middle of last year.

Speaker #2: The government shutdown on the DC policy changes caused many of our customers to temporarily pause activities. However, the subsequent recovery in these verticals allowed us to achieve 24% ODR organic revenue growth in Q4.

Speaker #2: I'll now make some specific comments on several of our key verticals. In our healthcare vertical market, many customers were spending their leftover budgets while also preparing 2026 normalized spending patterns during the fourth quarter.

Speaker #2: Due to the uncertainty of economic conditions in 2025, several national customers have started to engage us much earlier in their planning process. Our unique combination of professional service and installation expertise creates both speed-to-market and cost certainty advantages.

Speaker #2: As customers are planning their budgets now and given our early involvement in the design and planning process, we anticipate a softer start in 2026 with a revenue building throughout the year.

Michael M. McCann: As customers are planning their budgets now, given our early involvement in the design and planning process, we anticipate a softer start in 2026, with the revenue building throughout the year. As an example, in late December, one of our key national healthcare customers called us to help execute a critical infrastructure project. The engagement is worth approximately $50 million in contract value across 3 different hospitals in Florida. For this project, we are providing both program management and design build services. They chose Limbach because of our demonstrated ability to seamlessly procure, design, and execute a complex project swiftly, whereas the engineering firm who performed the original assessment wasn't able to execute the project fast enough. The project expected to be designed in the first half of the year, with work on site to begin in the second half of 2026.

Mike McCann: As customers are planning their budgets now, given our early involvement in the design and planning process, we anticipate a softer start in 2026, with the revenue building throughout the year. As an example, in late December, one of our key national healthcare customers called us to help execute a critical infrastructure project. The engagement is worth approximately $50 million in contract value across 3 different hospitals in Florida. For this project, we are providing both program management and design build services. They chose Limbach because of our demonstrated ability to seamlessly procure, design, and execute a complex project swiftly, whereas the engineering firm who performed the original assessment wasn't able to execute the project fast enough. The project expected to be designed in the first half of the year, with work on site to begin in the second half of 2026.

Speaker #2: As an example, in late December, one of our key national healthcare customers called us to help execute a critical infrastructure project. The engagement is worth approximately $15 million in contract value across three different hospitals in Florida.

Speaker #2: For this project, we are providing both program management and design-build services. They chose Limbach because of our demonstrated ability to seamlessly procure, design, and execute a complex project swiftly.

Speaker #2: Whereas the engineering firm will perform the original assessment wasn't able to execute the project fast enough. The project expected to be designed in the first half of the year with work on site to begin in the second half of 2026.

Speaker #2: Shifting to the data centers, we have where we have two very strong emerging relationships with hyperscale data center owners. These relationships have been developed due to our successful delivery of projects out of the Columbus, Ohio location over the past several years.

Michael M. McCann: Shifting to data centers, where we have 2 very strong emerging relationships with hyperscale data center owners. These relationships have been developed due to our successful delivery of projects out of the Columbus, Ohio, location over the past several years. Given the traction we have achieved and future opportunities with these owners, we've decided to dedicate resources towards building a national vertical market team focused on data center work. We believe we have the availability of resources and unique skill set to position ourselves thoughtfully in this vertical. As an example of our traction of the data center vertical took place in Q4, where we were awarded a specialty infrastructure project worth approximately $10 million in contract value. The scope of the project is to provide fabricated piping systems directly to the owner.

Mike McCann: Shifting to data centers, where we have 2 very strong emerging relationships with hyperscale data center owners. These relationships have been developed due to our successful delivery of projects out of the Columbus, Ohio, location over the past several years. Given the traction we have achieved and future opportunities with these owners, we've decided to dedicate resources towards building a national vertical market team focused on data center work. We believe we have the availability of resources and unique skill set to position ourselves thoughtfully in this vertical. As an example of our traction of the data center vertical took place in Q4, where we were awarded a specialty infrastructure project worth approximately $10 million in contract value. The scope of the project is to provide fabricated piping systems directly to the owner.

Speaker #2: Given the traction we have achieved and future opportunities with these owners, we've decided to dedicate resources towards building a national vertical market team focused on data center work.

Speaker #2: We believe we have the availability of resources and a unique skill set to position ourselves thoughtfully in this vertical. As an example of our traction in the data center vertical that took place in Q4, we were awarded a specialty infrastructure project worth approximately $10 million in contract value.

Speaker #2: The scope of the project is to provide fabricated piping systems directly to the owner. This is the fourth project of this scope and the owner has expressed interest in further expanding our relationship.

Michael M. McCann: This is the fourth project of this scope, and the owner has expressed interest in further expanding our relationship. We believe we are well positioned to see growth in this vertical in 2026 and beyond. In 2025, revenue from this vertical is less than 5% of total revenue. Our objective in 2026 is to increase vertical market diversity in the business, and expanding our data center market contribution is critical to achieving that objective. We see the opportunity for this vertical to represent a meaningful portion of revenue over time. In 2025, our industrial manufacturing vertical produced strong and steady results and was less affected by the DC policy concerns. Our recent acquisitions of Pioneer Power and Italian Mechanical help provide us with diversity both from a geographic footprint and vertical market standpoint. Our work here is conducted primarily via time and material shutdown work and small project work.

Mike McCann: This is the fourth project of this scope, and the owner has expressed interest in further expanding our relationship. We believe we are well positioned to see growth in this vertical in 2026 and beyond. In 2025, revenue from this vertical is less than 5% of total revenue. Our objective in 2026 is to increase vertical market diversity in the business, and expanding our data center market contribution is critical to achieving that objective. We see the opportunity for this vertical to represent a meaningful portion of revenue over time. In 2025, our industrial manufacturing vertical produced strong and steady results and was less affected by the DC policy concerns. Our recent acquisitions of Pioneer Power and Italian Mechanical help provide us with diversity both from a geographic footprint and vertical market standpoint. Our work here is conducted primarily via time and material shutdown work and small project work.

Speaker #2: We believe we are well positioned to see growth in this vertical in 2026 and beyond. In 2025, revenue from this vertical is less than 5% of total revenue.

Speaker #2: Our objective in 2026 to increase vertical market diversity in the business and expanding our data center market contribution is critical to achieving that objective.

Speaker #2: We see the opportunity for this vertical to represent a meaningful portion of revenue over time. In 2025, our industrial manufacturing vertical produced strong and steady results and was less affected by the DC policy concerns.

Speaker #2: Our recent acquisitions of Pioneer Power and Solid Mechanical helped provide us with diversity both from a geographic footprint and vertical market standpoint. Our work here is conducted primarily via time material shutdown work and small project work.

Speaker #2: We expect first-quarter revenue in this vertical to also be soft due to spending seasonality that traditionally picks up in April. Our success in 2026 will be driven by our ability to accelerate sales and leverage our previous investments.

Michael M. McCann: We expect Q1 revenue in this vertical to also be soft due to spending seasonality that traditionally picks up in April. Our success in 2026 will be driven by our ability to accelerate sales and leverage our previous investments. We expect our revenue and earnings to be weighted to the second half of the year, with growing confidence in the sales growth demonstrated by Q4 bookings of $225 million, compared to $187 million in total revenue during the quarter, giving us visibility into 2026. Moving to our 2026 guidance, we expect revenue of between $730 to 760 million, implying year-over-year growth of 13% to 17%. Adjusted EBITDA of $90 to 94 million, implying year-over-year growth of 10% to 16%.

Mike McCann: We expect Q1 revenue in this vertical to also be soft due to spending seasonality that traditionally picks up in April. Our success in 2026 will be driven by our ability to accelerate sales and leverage our previous investments. We expect our revenue and earnings to be weighted to the second half of the year, with growing confidence in the sales growth demonstrated by Q4 bookings of $225 million, compared to $187 million in total revenue during the quarter, giving us visibility into 2026. Moving to our 2026 guidance, we expect revenue of between $730 to 760 million, implying year-over-year growth of 13% to 17%. Adjusted EBITDA of $90 to 94 million, implying year-over-year growth of 10% to 16%.

Speaker #2: We expect our revenue and earnings to be weighted to the second half of the year, with growing confidence in the sales growth demonstrated by fourth quarter bookings of $225 million compared to $187 million in total revenue during the quarter.

Speaker #2: Giving us visibility into 2026. Moving to our 2026 guidance, we expect revenue of between $730 to $750 million and flying year-over-year growth of 13% to to 17%, adjusted EBITDA of 90% to 94 million, and flying year-over-year growth of 10% to 16%.

Speaker #2: Underlying that guidance, we have used the following assumptions: total organic revenue growth of 4% to 8%, ODR organic revenue growth of 9% to 12%.

Michael M. McCann: Underlying that guidance, we've used the following assumptions: Total organic revenue growth of 4% to 8%. ODR organic revenue growth of 9% to 12%. We expect ODR as a percent of total revenue in the range of 75% to 80%, reflecting the stabilization of the mix shift. Total growth margin of 26% to 27%. SG&A expense as a percent of total revenue to be 15% to 17% and Free Cash Flow to be 75% of Adjusted EBITDA for 2026, with significant cash use from operations in Q1 due to the timing of incentive compensation, insurance, and tax payments, with strong cash generation building during the remaining quarters of the year.

Mike McCann: Underlying that guidance, we've used the following assumptions: Total organic revenue growth of 4% to 8%. ODR organic revenue growth of 9% to 12%. We expect ODR as a percent of total revenue in the range of 75% to 80%, reflecting the stabilization of the mix shift. Total growth margin of 26% to 27%. SG&A expense as a percent of total revenue to be 15% to 17% and Free Cash Flow to be 75% of Adjusted EBITDA for 2026, with significant cash use from operations in Q1 due to the timing of incentive compensation, insurance, and tax payments, with strong cash generation building during the remaining quarters of the year.

Speaker #2: We expect ODR as a percent of total revenue in the range of 75% to 80%, reflecting the stabilization of the mixed shift. Total gross margin of 26% to 27%, SG&A expense as a percent of total revenue to be 15% to 17%, and free cash flow to be 75% of adjusted EBITDA for 2026, with significant cash needs from operations in Q1 due to the timing of incentive compensation, insurance, and tax payments, with strong cash generation building during the remaining quarters of the year.

Speaker #2: As investors and analysts model 2026, it's important to note that our first quarter tends to be the slowest quarter of the year, due to seasonality and customer spending patterns.

Michael M. McCann: As investors and analysts model 2026, it's important to note that our Q1 tends to be the slowest quarter of the year due to seasonality and customer spending patterns. We expect Q1 revenue to be similar to last year, with lower Adjusted EBITDA due to higher SG&A in 2026. We don't expect Q1 of 2026 to have the same gross margin write-ups of $900,000 that we had in Q1 of 2025. As previously stated, we expect the second half of the year to be stronger than the first half. As our bookings momentums from last year converts into revenue, we expect revenue growth to accelerate in Q3 and Q4. With that, I'll turn over to Jayme to walk through the financials in more detail. Jayme?

Mike McCann: As investors and analysts model 2026, it's important to note that our Q1 tends to be the slowest quarter of the year due to seasonality and customer spending patterns. We expect Q1 revenue to be similar to last year, with lower Adjusted EBITDA due to higher SG&A in 2026. We don't expect Q1 of 2026 to have the same gross margin write-ups of $900,000 that we had in Q1 of 2025. As previously stated, we expect the second half of the year to be stronger than the first half. As our bookings momentums from last year converts into revenue, we expect revenue growth to accelerate in Q3 and Q4. With that, I'll turn over to Jayme to walk through the financials in more detail. Jayme?

Speaker #2: We expect first quarter revenue to be similar to last year, with lower adjusted EBITDA due to higher SG&A in 2026. Additionally, we don't expect Q1 of 2026 to have the same gross margin write-ups of $900,000 that we had in Q1 of 2025.

Speaker #2: And as previously stated, we expect the second half of the year to be stronger than the first half. As our bookings momentums from last year converts into revenue, we expect revenue growth to accelerate in Q3 and Q4.

Speaker #2: With that, I'll turn over to Jamie to walk through the financials in more detail. Jamie? Our form 10-K and earnings press release filed yesterday provide comprehensive details of our financial results.

Jayme Brooks: Our Form 10-K and earnings press release filed yesterday provide comprehensive details of our financial results, so I will focus on the highlights of Q4 and full year. All comparisons are for Q4 and full year 2025 versus Q4 and full year 2024, unless otherwise noted. Starting with Q4, we generated total revenue of $186.9 million compared to $143.7 million in 2024. Total revenue growth was 30.1%, while ODR revenue grew 51.8% to $145 million. Of the total ODR revenue growth rate, 27.9% was from the acquisitions and 23.9% was organic.

Speaker #2: So I will focus on the highlights of the fourth quarter and full year. I'll comparisons are for the fourth quarter and full year 2025 versus fourth quarter and full year 2024, unless otherwise noted.

Speaker #2: Starting with the fourth quarter, we generated total revenue of $186.9 million compared to $143.7 million in 2024. Total revenue growth was 30.1%, while ODR revenue grew 51.8% to $145 million.

Speaker #2: Of the total ODR revenue growth rate, 27.9% was from acquisitions and 23.9% was organic. GCR revenue decreased 13% to $41.9 million, of which 26.1% was a decrease in organic revenue, as designed, as we continued our mix shift towards ODR.

Jayme Brooks: GCR revenue decreased 13% to $41.9 million, of which 26.1% was a decrease in organic revenue as designed as we continued our mix shift towards ODR, offset by 13.1% growth in revenue from acquisitions. ODR revenue accounted for 77.6% of total revenue for Q4, up from 66.5% in 2024. Total gross profit for Q4 increased 10.4% from $43.6 million to $48.1 million, reflecting the ongoing growth of our ODR segment. Total gross margin on a consolidated basis was 25.7%, down from 30.3% in 2024, primarily driven by the impact of Pioneer Power.

Speaker #2: Offset by 13.1% growth in revenue from acquisitions. ODR revenue accounted for 77.6% of total revenue for the fourth quarter, up from 66.5% in 2024.

Speaker #2: Total gross profit for the quarter increased 10.4%, from $43.6 million to $48.1 million, reflecting the ongoing growth of our ODR segment. Total gross margin on a consolidated basis was 25.7%, down from 30.3% in 2024, primarily driven by the impact of Pioneer Power.

Speaker #2: As we previously communicated, our acquisition integration strategy is focused on improving the acquired company's gross margin to align with our broader operating model over multiple years.

Jayme Brooks: As we previously communicated, our acquisition integration strategy is focused on improving the acquired company's gross margin to align with our broader operating model over multiple years. ODR gross profit comprised 76% of total gross profit dollars, or $36.4 million. ODR gross profit increased 19.1% or $5.8 million, driven by higher sales volume, partially offset by lower ODR segment margin of 25.1% compared to 32.1% in the year ago period. The decrease in segment margin was primarily attributable to Pioneer Power's lower gross margin profile. GCR gross profit decreased 10.2% or $1.3 million due to lower revenues. Gross margin increased from 26.9% to 27.8%, driven by our ongoing focus on higher quality projects.

Speaker #2: ODR gross profit comprised 76% of total gross profit dollars, or 36.4 million. ODR gross profit increased 19.1%, or 5.8 million, driven by higher sales volume, partially offset by lower ODR segment margin of 25.1% compared to 32.1% in the year-ago period.

Speaker #2: The decrease in segment margin was primarily attributable to Pioneer Power's lower gross margin profile. GCR gross profit decreased 10.2%, or $1.3 million, due to lower revenues.

Speaker #2: Gross margin increased from 26.9% to 27.8%, driven by our ongoing focus on higher quality projects. SG&A expense for the fourth quarter was $28 million, an increase of approximately 2.3% from 27.4 million.

Jayme Brooks: SG&A expense for Q4 was $28 million, an increase of approximately 2.3% from $27.4 million. The increase was primarily attributable to incremental costs associated with Pioneer Power and Consolidated Mechanical. Consolidated Mechanical was part of the company for 1 month in Q4 last year, and Pioneer Power was not part of the company during Q4 last year. As a percentage of revenue, SG&A expense decreased to 15% of total revenue as compared to 19.1%, primarily due to the increased revenue from Pioneer Power. Interest expense increased $0.3 million to $0.8 million, compared to $0.5 million in the prior year quarter, driven by higher borrowings under the company's revolving credit facility to partially finance the Pioneer Power's acquisition, as well as higher financing costs associated with the larger vehicle fleet.

Speaker #2: The increase was primarily attributable to incremental costs associated with Pioneer Power and Consolidated Mechanical. Consolidated Mechanical was part of the company for one month in the fourth quarter last year, and Pioneer Power was not part of the company during the fourth quarter last year.

Speaker #2: As a percentage of revenue, SG&A expense decreased to 15% of total revenue, as compared to 19.1%, primarily due to the increased revenue from Pioneer Power.

Speaker #2: Interest expense increased 0.3 million to 0.8 million, compared to 0.5 million in the prior year quarter, driven by higher borrowings under the company's revolving credit facility, to partially finance the Pioneer Power's acquisition.

Speaker #2: As well as higher financing costs associated with the larger vehicle fleet. Net income for the quarter increased 25% from 9.8 million to 12.3 million, and earnings per diluted share grew 24.4% from 82 cents to $1.02.

Jayme Brooks: Net income for the quarter increased 25% from $9.8 million to $12.3 million, and earnings per diluted share grew 24.4% from $0.82 to $1.02. Adjusted net income grew 22.6% from $13.8 million to $16.9 million, and adjusted earnings per diluted share grew 21.7% from $1.15 to $1.40. Adjusted EBITDA for the quarter increased 30.8% to $27.2 million compared to $20.8 million. Adjusted EBITDA margin was 14.6% compared to 14.5% in Q4 last year.

Speaker #2: Adjusted net income grew 22.6% from 13.8 million to 16.9 million, and adjusted earnings per diluted share grew 21.7% from $1.15 to $1.40. Adjusted EBITDA for the quarter increased 30.8% to 27.2 million, compared to 20.8 million.

Speaker #2: Adjusted EBITDA margin was 14.6%, compared to 14.5% in Q4 last year. Turning to cash flow, our operating cash inflow during the fourth quarter was 28.1 million, compared to 19.3 million in the year-ago period, driven by higher net income in 2025, along with slight improvement in working capital.

Jayme Brooks: Turning to cash flow, our operating cash inflow during Q4 was $28.1 million compared to $19.3 million in the year ago period, driven by higher net income in 2025, along with slight improvement in working capital. Free Cash Flow, defined as cash flow from operating activities, excluding changes in working capital minus capital expenditures, excluding our investment in additional rental equipment, was $21.1 million in Q4 compared to $16.6 million in Q4 last year, representing a $4.5 million increase. The Free Cash Flow conversion of Adjusted EBITDA for the quarter was 77.5% versus 79.9% last year. Now turning to the full year of 2025.

Speaker #2: Free cash flow, defined as cash flow from operating activities, excluding changes in working capital, minus capital expenditures, excluding our investment in additional rental equipment, was 21.1 million in the fourth quarter, compared to 16.6 million in Q4 last year.

Speaker #2: Representing a $4.5 million increase. The free cash flow conversion of adjusted EBITDA for the quarter was 77.5%, versus 79.9% last year. Now turning to the full year 2025.

Speaker #2: Total revenue increased 24.7%, or $128 million, to $646.8 million, from $518.8 million. Primarily due to the acquisitions of Pioneer Power, consolidated mechanical, and Kent Island.

Jayme Brooks: Total revenue increased 24.7% or $128 million to $646.8 million from $518.8 million, primarily due to the acquisitions of Pioneer Power, Consolidated Mechanical and Kent Island. Of the total percentage increase, acquisition-related revenue represented 21% or $109.1 million, and organic revenue represented 3.6% or $18.9 million. ODR revenue increased 40.6%, or $140.2 million to $485.7 million, with acquisition-related revenue representing 23.6% of the increase or $81.4 million, while organic revenue represented 17% or $58.8 million. GCR revenue decreased 7% or $12.2 million to $161.1 million.

Speaker #2: Of the total percentage increase, acquisition-related revenue represented 21%, or $109.1 million, and organic revenue represented 3.6%, or 18.9 million. ODR revenue increased 40.6%, or $140.2 million, to $485.7 million, with acquisition-related revenue representing 23.6% of the increase, or 81.4 million.

Speaker #2: While organic revenue represented 17%, or 58.8 million. GCR revenue decreased 7%, or 12.2 million. To $161.1 million. Organic revenue represented 23% of the decrease, or 39.9 million, decline, as the company continued its strategic mixed shift to ODR, offset by acquisition-related revenue growth of 16%, or 27.7 million.

Jayme Brooks: Organic revenue represented 23% of the decrease or $39.9 million decline as the company continued its strategic mix shift to ODR, offset by acquisition-related revenue growth of 16% or $27.7 million. Total gross profit increased 17.4% to $169.3 million compared to $144.3 million. Total gross margin was 26.2%, a decrease from 27.8% in 2024, primarily due to the impact of Pioneer Power's lower gross margin and total net project write-ups of $5.8 million recognized in 2024 compared to $1 million in 2025.

Speaker #2: Total gross profit increased 17.4% to $169.3 million, compared to $144.3 million, and total gross margin was 26.2%. A decrease from 27.8% in 2024. Primarily due to the impact of Pioneer Power's lower gross margin and total net project write-ups of 5.8 million, recognized in 2024, compared to 1 million, in 2025.

Speaker #2: ODR gross profit increased 20.5%, or $22.1 million, to $129.9 million from $107.8 million, while gross margin decreased to 26.7% from 31.2%, primarily due to the impact of Pioneer Power's lower margin profile and ODR-related project write-ups of $3.9 million, recognized in 2024, that did not recur in 2025.

Jayme Brooks: ODR gross profit increased 20.5% or $22.1 million to $129.9 million from $107.8 million, while gross margin decreased to 26.7% from 31.2%, primarily due to the impact of Pioneer Power's lower margin profile and ODR-related project write-ups of $3.9 million recognized in 2024 that did not recur in 2025. GCR gross profit increased 8% or $2.9 million to $39.4 million from $36.5 million. Gross margin increased to 24.5% from 21.1%, driven by the company's intentional focus on higher quality projects. SG&A expense increased by approximately $12.3 million to $109.5 million compared to $97.2 million in the prior year period.

Speaker #2: GCR gross profit increased 8%, or 2.9 million, to 39.4 million, from 36.5 million. And gross margin increased to 24.5%, from 21.1%, driven by the company's intentional focus on higher quality projects.

Speaker #2: SG&A expense increased by approximately 12.3 million to $109.5 million, compared to 97.2 million in the prior year period. Of the increase, 9.3 million of the increase was attributable to incremental costs associated with Pioneer Power, consolidated mechanical, and Kent Island.

Jayme Brooks: Of the increase, $9.3 million of the increase was attributable to incremental costs associated with Pioneer Power, Consolidated Mechanical, and Kent Island. Consolidated Mechanical was part of the company for only 1 month last year. Kent Island was part of the company for 4 months, and Pioneer was not part of the company during the entirety of last year. The remaining SG&A increase of $3 million is attributable to the existing business. SG&A expense increased primarily due to a $1.2 million increase in non-cash stock-based compensation expense and a $1.1 million increase in bad debt expense associated with the write-up of certain customer receivables that were deemed uncollectible. SG&A expense as a percentage of revenue decreased to 16.9% compared to 18.7%, primarily due to increased revenue resulting from the Pioneer Power acquisition.

Speaker #2: Consolidated Mechanical was part of the company for only one month last year. Kent Island was part of the company for four months, and Pioneer was not part of the company during the entirety of last year.

Speaker #2: The remaining SG&A increase of 3 million is attributable to the existing business. SG&A expense increased primarily due to a 1.2 million increase in non-cash stock-based compensation expense and a 1.1 million increase in bad debt expense associated with the write-up of certain customer receivables that were deemed uncollectible.

Speaker #2: SG&A expense, as percentage of revenue, decreased to 16.9%, compared to 18.7%, primarily due to increased revenue resulting from the Pioneer Power acquisition. Interest expense increased 1.3 million, from 1.9 million to 3.1 million, due to higher borrowings under the company's revolving credit facility to partially finance the Pioneer Power acquisition, as well as higher financing costs associated with our larger vehicle fleet.

Jayme Brooks: Interest expense increased $1.3 million from $1.9 million to $3.1 million due to higher borrowings under the company's revolving credit facility to partially finance the Pioneer Power acquisition, as well as higher financing costs associated with our larger vehicle fleet. Net income increased 26.5% to $39.1 million from $30.9 million, and diluted earnings per share increased 25.7% to $3.23, compared to $2.57 in the prior year. Adjusted net income increased 26% to $54.5 million, compared to $43.2 million, and Adjusted diluted earnings per share increased 25.3% from $3.60 to $4.51.

Speaker #2: Net income increased 26.5% to 39.1 million, from 30.9 million and diluted earnings per share increased 25.7% to $3.23, compared to $2.57 in the prior year.

Speaker #2: Adjusted net income increased 26% to $54.5 million, compared to $43.2 million, and adjusted diluted earnings per share increased 25.3%, from $3.60 to $4.51. Adjusted EBITDA increased 28.4% to $81.8 million, compared to $63.7 million, and adjusted EBITDA margin was 12.6%, compared to 12.3%.

Jayme Brooks: Adjusted EBITDA increased 28.4% to $81.8 million, compared to $63.7 million, and Adjusted EBITDA margin was 12.6% compared to 12.3%. Our operating cash flow for the full year was $45.7 million compared to $36.8 million in the prior year. Free Cash Flow, defined as cash flow from operating activities, excluding changes in working capital minus capital expenditures, excluding our investment in additional rental equipment, was $70.1 million for 2025 compared to $52.3 million in 2024, representing a $17.8 million increase. The Free Cash Flow conversion of Adjusted EBITDA for the year was 85.7% versus 82.1% in 2024.

Speaker #2: Our operating cash flow for the full year was $45.7 million compared to $36.8 million in the prior year. Free cash flow defined as cash flow from operating activities excluding changes in working capital minus capital expenditures excluding our investment in additional rental equipment, was $70.1 million, for 2025, compared to $52.3 million in 2024.

Speaker #2: Representing a 17.8 million increase. The free cash flow conversion of adjusted EBITDA for the year was 85.7% versus 82.1% in 2024. As Mike mentioned, for full year 2026, we continue to target a free cash flow conversion rate of at least 75% of adjusted EBITDA and expect CapEx to have a run rate of approximately $5 million.

Jayme Brooks: As Mike mentioned, for full year 2026, we continue to target a Free Cash Flow conversion rate of at least 75% of Adjusted EBITDA and expect CapEx to have a run rate of approximately $5 million. At this time, we don't anticipate any additional investments in our rental fleet. Turning to our balance sheet, as of 31 December, we had $11.3 million in cash and cash equivalents and total debt of $35.9 million, which includes $10 million borrowed on our revolving credit facility, hedged at a rate of approximately 5.37%. As a reminder, at the end of June 2023, we expanded our revolving credit facility from $50 million to $100 million in principal amount borrowings. On 1 July, we used a combination of cash and revolver proceeds of approximately $40 million to fund the Pioneer Power acquisition.

Speaker #2: At this time, we don't anticipate any additional investments in our rental fleet. Turning to our balance sheet, as of December 31st, we had $11.3 million in cash and cash equivalents, and total debt of $35.9 million.

Speaker #2: Which includes $10 million borrowed on our revolving credit facility hedged at a rate of approximately 5.37%. As a reminder, at the end of June last year, we expanded our revolving credit facility from $50 million to $100 million in principal amount borrowings.

Speaker #2: On July 1st, we used a combination of cash and revolver proceeds of approximately $40 million to fund the Pioneer Power acquisition. During the quarter, we paid down the revolving credit facility $24.5 million to the hedged amount of $10 million.

Jayme Brooks: During the quarter, we paid down the revolving credit facility $24.5 million to the hedged amount of $10 million. As of 31 December, our total liquidity, defined as cash and availability on our revolving credit facility, was $96.3 million. With this expanded facility and our expected strong cash generation, our balance sheet remains strong, and we believe we are well-positioned to support our continued organic growth initiatives, strategic M&A, and opportunistic share repurchases. That concludes our prepared remarks. Operator, you may begin the Q&A.

Speaker #2: And as of December 31st, our total liquidity, defined as cash and availability on our revolving credit facility, was $96.3 million. With this expanded facility and our expected strong cash generation, our balance sheet remains strong.

Speaker #2: And we believe we are well positioned to support our continued organic growth initiatives, strategic M&A, and opportunistic share repurchases. That concludes our prepared remarks, operator.

Speaker #2: You may begin the Q&A.

Speaker #1: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star-one on your telephone keypad.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Chris Moore with CJS Securities. Please proceed with your question.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Speaker #1: One moment, please, while we pull four questions. Our first question comes from the line of Chris Moore with CJS Securities. Please proceed with your question.

Speaker #2: Hey, good morning, guys. Thanks for taking a couple. So, Mike, I might have missed a little bit of it. Can you talk a little bit more about the investment or specific steps you're taking to take advantage of the data center opportunity?

Chris Moore: Hey, good morning, guys. Thanks for taking a couple. Mike, I might have missed a little bit of it. Can you talk a little bit more about the investment or specific steps you're taking to take advantage of the data center opportunity?

Speaker #3: Yeah, absolutely. So one thing that's going to be, I think, really important to our strategy, and we started this last year as well, too, is really building three national vertical market teams.

Michael M. McCann: Yeah, absolutely. One thing that's gonna be, I think, really important to our strategy, and we started this last year as well too, is really building three national vertical market teams. Healthcare, and in some sense, that's been our proof point, industrial manufacturing, and data center. When we think about the way that customers buy, they buy some stuff locally, but I think from a national perspective and a capital planning perspective, it's a lot advantageous for us, even from a resource perspective. From a data center market specifically, we've had some really good success in the Columbus, Ohio market, with a few different customers. We always like to prove things out before we really make sure that we go all in from an investment perspective.

Mike McCann: Yeah, absolutely. One thing that's gonna be, I think, really important to our strategy, and we started this last year as well too, is really building three national vertical market teams. Healthcare, and in some sense, that's been our proof point, industrial manufacturing, and data center. When we think about the way that customers buy, they buy some stuff locally, but I think from a national perspective and a capital planning perspective, it's a lot advantageous for us, even from a resource perspective. From a data center market specifically, we've had some really good success in the Columbus, Ohio market, with a few different customers. We always like to prove things out before we really make sure that we go all in from an investment perspective.

Speaker #3: Healthcare, and in some sense, that's been our proof point. Industrial manufacturing and data center. And when we think about the way that customers buy they buy some stuff locally, but I think from a national perspective and a capital planning perspective, it's a lot advantageous for us, even from a resource perspective.

Speaker #3: So from a data center market specifically, we've had some really good success in the Columbus, Ohio market with a few different customers. And we always like to prove things out before we really make sure that we go all in from an investment perspective.

Speaker #3: But as I referenced in the prepared remarks, it's our fourth project that we were recently awarded, and that customer and a couple of customers are starting to tell to us, "Based on your availability of resources, your unique combination of engineered solutions with your ability to install and fabricate, we think we're really in a great position, not just in the Columbus market, but in other markets as well, too." And some of that will be overlap from a geographic footprint perspective.

Michael M. McCann: As I referenced in the prepared remarks, it's our fourth project that we were recently awarded. That customer and a couple customers are starting to tell to us, based on your availability of resources, unique combination of engineered solutions with your ability to install and fabricate, we think we're really in a great position, not just in the Columbus market, but in other markets as well too. Some of that will be overlap from a geographic footprint perspective, and some of that may be providing services just like we do in healthcare and other geographies as well too. We think it's a really good opportunity. We've been patient, and I think we're at a point now we wanna dedicate some resources and we hope this vertical becomes a meaningful portion of our revenue over time.

Mike McCann: As I referenced in the prepared remarks, it's our fourth project that we were recently awarded. That customer and a couple customers are starting to tell to us, based on your availability of resources, unique combination of engineered solutions with your ability to install and fabricate, we think we're really in a great position, not just in the Columbus market, but in other markets as well too. Some of that will be overlap from a geographic footprint perspective, and some of that may be providing services just like we do in healthcare and other geographies as well too. We think it's a really good opportunity. We've been patient, and I think we're at a point now we wanna dedicate some resources and we hope this vertical becomes a meaningful portion of our revenue over time.

Speaker #3: And some of that may be providing services just like we do in healthcare and other geographies as well, too. So we think it's a really good opportunity.

Speaker #3: We've been patient and I think we're at a point now we want to dedicate some resources and we hope this vertical becomes a meaningful portion of our revenue over time.

Speaker #2: Got it. You could see that potentially in a few years that could be your number two vertical?

Chris Moore: Got it. You could see that potentially in a few years, that could be your number two vertical?

Speaker #3: We're going to see how it goes. We think there's tons of potential, though. I mean, the spending of these customers and we're really all in on these three.

Michael M. McCann: We're gonna see how it goes. We think there's tons of potential, though. I mean, the spending of these customers, we're really all in on these 3 verticals, healthcare, industrial manufacturing, and data center, but we think it's also a great opportunity of an avenue from a diversity perspective as well too. We're pretty bullish on it.

Mike McCann: We're gonna see how it goes. We think there's tons of potential, though. I mean, the spending of these customers, we're really all in on these 3 verticals, healthcare, industrial manufacturing, and data center, but we think it's also a great opportunity of an avenue from a diversity perspective as well too. We're pretty bullish on it.

Speaker #3: Verticals, healthcare, industrial manufacturing, data center, but we think it's also a great opportunity of an avenue from a diversity perspective as well, too. So we're pretty bullish on it.

Speaker #2: Got it. In terms of the ODR, organic guide, 9 to 12 percent, pioneer in terms of the back half of 26, is there any organic from pioneer embedded in the 9 to 12 percent?

Chris Moore: Got it. In terms of the ODR organic guide, 9 to 12%, Pioneer in terms of the back half of 2026, is there any organic from Pioneer embedded in the 9 to 12%?

Speaker #4: Yes. So after the first half of the year, then it becomes part of our organics. Because of the acquisition date was July 1 of last year.

Jayme Brooks: Yeah. After the first half of the year, then it becomes part of our organics because the acquisition date was 1 July 2023.

Chris Moore: Exactly. I just wasn't sure if you're assuming much growth from Pioneer. I'm just trying to get a sense in terms of how that business is going and if you assume some growth there later in the year as part of that, as part of your 9 to 12%.

Speaker #2: Exactly. I just wasn't sure if you're assuming much growth from pioneer. I'm just trying to get a sense in terms of how that business is going and if you assume some growth there.

Speaker #2: Later in the year as part of that as part of your 9 to 12 percent.

Speaker #3: Yeah. No, just a couple of things on Pioneer as well, too. Our focus, for sure, obviously—we want to see growth in them, but I think the gross profit improvement is equally, if not more important, than really seeing it from a revenue perspective.

Michael M. McCann: Yeah. No. Just a couple things on Pioneer as well too. Our focus for sure, obviously, we wanna see growth in them, but I think the gross profit improvement is equally, if not more important than really seeing from a revenue perspective, several different things. We're kind of moving past the phase one, which is really that system integration, people, process, getting the accounting system switched over. I think we're really focused, especially in the back half of the year from a gross profit perspective. A couple things that I'll really hit on that we're gonna focus on is, number one, our ability to push resources towards their best account. Look at metrics from a year-over-year perspective, revenue types. Getting on our accounting system allows us to do this. Utilization of sales resources as well as too.

Mike McCann: Yeah. No. Just a couple things on Pioneer as well too. Our focus for sure, obviously, we wanna see growth in them, but I think the gross profit improvement is equally, if not more important than really seeing from a revenue perspective, several different things. We're kind of moving past the phase one, which is really that system integration, people, process, getting the accounting system switched over. I think we're really focused, especially in the back half of the year from a gross profit perspective. A couple things that I'll really hit on that we're gonna focus on is, number one, our ability to push resources towards their best account. Look at metrics from a year-over-year perspective, revenue types. Getting on our accounting system allows us to do this. Utilization of sales resources as well as too.

Speaker #3: Several different things. We're kind of moving past the phase one, which is really that system integration—people, process, getting the accounting system switched over. And I think we're really focused, especially in the back half of the year, from a gross profit perspective.

Speaker #3: A couple of things that I'll really hit on that we're going to focus on is, number one, our ability to push resources towards their best account, look at metrics from a year-over-year perspective, revenue types, getting on our accounting system allows us to do this, utilization of sales resources, as well as, too, so we're really looking to deploy the full breadth of our value creation process and really that's really getting into the phase two implementation.

Michael M. McCann: So we're really looking to deploy the, you know, the full breadth of our value creation process, and really, that's really getting into the phase two implementation. In the back half of the year was gonna be our focus. It's still gonna take some time. Got to go back and renegotiate some contracts. You've got to reintroduce yourself from a customer standpoint. We've seen some real positive things, and we're looking, I think, not just in 2026, but in 2027 and 2028 of really seeing that business get to the point where it matches the other legacy businesses from a margin perspective. We think it's a really good opportunity.

Mike McCann: So we're really looking to deploy the, you know, the full breadth of our value creation process, and really, that's really getting into the phase two implementation. In the back half of the year was gonna be our focus. It's still gonna take some time. Got to go back and renegotiate some contracts. You've got to reintroduce yourself from a customer standpoint. We've seen some real positive things, and we're looking, I think, not just in 2026, but in 2027 and 2028 of really seeing that business get to the point where it matches the other legacy businesses from a margin perspective. We think it's a really good opportunity.

Speaker #3: So in the back half of the year, there's going to be our focus. It's still going to take some time. Got to go back and renegotiate some contracts.

Speaker #3: You've got to reintroduce yourself from a customer standpoint. So we've seen some real positive things and we're looking, I think, not just in 26, but in 27 and 28 of really seeing that business get to the point where it matches the other legacy businesses from a margin perspective.

Speaker #3: I think it's a really good opportunity.

Speaker #2: Perfect. I'll leave it there. Appreciate it, guys.

Chris Moore: Perfect. I'll leave it there. Appreciate it, guys.

Speaker #4: Thank you, Chris.

Jayme Brooks: Thank you, Chris.

Speaker #1: Thank you. Our next question comes from the line of Rob Brown with Lake Street Capital Markets. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Rob Brown with Lake Street Capital Markets. Please proceed with your question.

Speaker #5: Good morning. Moving up in the organic growth, I know you've kind of gotten for a year, but what longer-term how do you see the organic growth in the ODR segment once you sort of get pioneer integrated and the business is running?

Rob Brown: Good morning. Just picking up on the organic growth. I think you've kind of gotten for a year, but what longer term, how do you see the organic growth in the ODR segment once you get Pioneer integrated and the business is running? What sort of long-term organic growth rate? I think in the past you said it was gonna be in the teens to 20%.

Speaker #5: What's sort of the long-term organic growth there? I think in the past, you said it had been. Teams, 20%.

Speaker #3: Sure. Last year, we were at 17%. We had a strong finish in Q4. And this year, we're guiding to 9 to 12. I think we're really kind of focusing only on 26 from that perspective, but we're also trying to think about what is our real normalized growth rate from an organic revenue perspective as well, too.

Michael M. McCann: Sure. You know, last year we were at 17%. We had a strong finish in Q4. This year we're guiding to 9% to 12%. I think we're really kind of focusing only on 26 from that perspective, but we're also trying to think about what is our real normalized growth rate from an organic revenue perspective as well too. I think about our growth trajectory as we look forward, our ability to still get really strong local results. We're gonna continue to invest and support our sellers that we've really invested in the last 3 years as well too. The other thing too is I think, you know, from a national vertical market perspective, our access to capital and driving different decision makers and being a national provider, that's gonna be an avenue as well too.

Mike McCann: Sure. You know, last year we were at 17%. We had a strong finish in Q4. This year we're guiding to 9% to 12%. I think we're really kind of focusing only on 26 from that perspective, but we're also trying to think about what is our real normalized growth rate from an organic revenue perspective as well too. I think about our growth trajectory as we look forward, our ability to still get really strong local results. We're gonna continue to invest and support our sellers that we've really invested in the last 3 years as well too. The other thing too is I think, you know, from a national vertical market perspective, our access to capital and driving different decision makers and being a national provider, that's gonna be an avenue as well too.

Speaker #3: And I think about our growth trajectory as we look forward. Our ability to still get really strong local results—we're going to continue to invest and support our sellers that we've really invested in over the last three years as well, too.

Speaker #3: The other thing, too, is I think from a national vertical market perspective, our access to capital and driving different decision makers and being a national provider, that's going to be an avenue as well, too.

Speaker #3: So we're really focused on that 26, but we're obviously looking forward to see what the normalized level is and what I would say also from an opportunity perspective, too.

Michael M. McCann: We're really focused on that 26, but we're obviously looking forward to see what the normalized level is and what I would say also from an opportunity perspective too.

Mike McCann: We're really focused on that 26, but we're obviously looking forward to see what the normalized level is and what I would say also from an opportunity perspective too.

Speaker #5: Okay. Got it. And then I think you talked about pretty strong bookings in Q4 above kind of above the run rate. How is that compared to normal?

Rob Brown: Okay. Got it. I think you talked about pretty strong bookings in Q4 above, kind of above the run rate. How does that compare to normal? You know, it seems like the environment's getting better, you know, maybe a sense of just how the bookings are coming in and what you see for the next, you know, 6 to 12 months.

Speaker #5: And it seems like the environment's getting better. Maybe a sense of just how the bookings are coming in and what you see for the next 6 to 12 months.

Speaker #2: Yeah, so one of the things that we've learned as we continue to transition the business—backlog is a factor, but sales bookings are really what we look at from a business perspective in Q4.

Michael M. McCann: Yeah. One of the things that we've learned as we continue to transition the business, backlog is a factor, but sales bookings are really what we look from a business perspective. In Q4, we booked $225 million versus $187 million in revenue in Q4, 1.2 ratio. I mean, anything in our opinion above 1 obviously shows that there is some forward trajectory in the business as well too. We like when the bookings are more than the revenue. We think we're turning the corner from a sales perspective. We've learned a lot from a sales perspective, and I think we're really starting to turn the corner. I think the other thing too that we saw a little bit in Q4 was our ability to get involved early.

Mike McCann: Yeah. One of the things that we've learned as we continue to transition the business, backlog is a factor, but sales bookings are really what we look from a business perspective. In Q4, we booked $225 million versus $187 million in revenue in Q4, 1.2 ratio. I mean, anything in our opinion above 1 obviously shows that there is some forward trajectory in the business as well too. We like when the bookings are more than the revenue. We think we're turning the corner from a sales perspective. We've learned a lot from a sales perspective, and I think we're really starting to turn the corner. I think the other thing too that we saw a little bit in Q4 was our ability to get involved early.

Speaker #2: We booked $225 million, first $187 million in revenue in Q4, 1.2 ratio. I mean, anything in our opinion above one obviously shows that there is some forward trajectory in the business as well, too.

Speaker #2: So we like when the bookings are more than the revenue. We think we're starting to make return to the corner from a sales perspective.

Speaker #2: We've learned a lot from a sales perspective, and I think we're really starting to turn the corner. I think the other thing, too, that we saw a little bit in Q4 was our ability to get involved early.

Speaker #2: And sometimes that may be from customers that looked at strained budgets from 2025 and really starting to plan effectively. I would say specifically in the healthcare vertical market where definitely involve much more from a planning perspective.

Michael M. McCann: Sometimes that may be from customers that looked at strained budgets from 2025 and are really starting to plan effectively. I would say specifically in the healthcare vertical market, we're definitely involved much more from a planning perspective. We're starting to understand where customers spend. I think probably the third different quarter in a row, we reported kind of a national healthcare provider giving us multiple projects that were born out of facility assessments as well too. We think we're turning the corner, and we're looking forward obviously from continuing to look at that sales bookings versus revenue as kind of a key indicator.

Mike McCann: Sometimes that may be from customers that looked at strained budgets from 2025 and are really starting to plan effectively. I would say specifically in the healthcare vertical market, we're definitely involved much more from a planning perspective. We're starting to understand where customers spend. I think probably the third different quarter in a row, we reported kind of a national healthcare provider giving us multiple projects that were born out of facility assessments as well too. We think we're turning the corner, and we're looking forward obviously from continuing to look at that sales bookings versus revenue as kind of a key indicator.

Speaker #2: We're starting to understand where customers spend. I think probably the third different quarter in a row we've reported kind of a national healthcare provider giving us multiple projects that were borne out of facility assessments as well, too.

Speaker #2: So we think we're turning the corner. And we're looking forward, obviously, from continue to look at that sales bookings versus revenue as kind of a key indicator.

Speaker #5: Okay. Thank you. I'll turn it over.

Rob Brown: Okay. Thank you. I'll turn it over.

Speaker #1: Thank you. Our next question comes from the line of Jerry Sweeney with Rob Capital Partners. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Gerry Sweeney with Roth Capital Partners. Please proceed with your question.

Gerry Sweeney: Good morning, Jamie, Mike. Thanks for taking my call.

Gerry Sweeney: Good morning, Jamey, Mike. Thanks for taking my call.

Speaker #3: Good morning, Jamie and Mike. Thanks for taking my call.

Speaker #2: Good morning.

Michael M. McCann: Good morning.

Mike McCann: Good morning.

Operator: Good morning.

Jayme Brooks: Good morning.

Gerry Sweeney: Just to stay on the topic of growth, obviously earlier in January, you announced, you know, two new position, EVP of Sales and a national customer solutions, head of national customer solutions. You know, how does this sort of play into the strategy and of growth? It feels as though you're sort of maybe maturing into a different position of growth. I just wanted to see how this all plays together and maybe drive some opportunity down the line.

Speaker #3: Just to stay on the topic of growth, obviously, earlier in January, you announced two new positions, EVP of sales and a national customer solutions head of national customer solutions.

Speaker #3: How does this sort of play into the strategy and of growth? And it feels as though you're sort of maybe maturing into a maybe a different position of growth.

Speaker #3: I just wanted to see how this all plays together and maybe drive some opportunity down the line.

Speaker #2: Yeah. I think one thing that's really important from a messing perspective, local and national, they're both really important to us. And we thought to ourselves, the best way to make sure that we're going to get the results is to take two proven executives and make sure that they're assigned specifically to that task.

Michael M. McCann: Yeah. I think one thing that's really important from a messaging perspective, local and national, they're both really important to us. We thought to ourselves, the best way to make sure that we're gonna get the results is to take two proven executives and make sure that they're assigned specifically to that task. One of them is gonna be working on sales enablement. We've invested about 100 to 120 salespeople over the last three years. How do we support them with tools, training? How do we help them actually deliver those sales? We're really excited to have that particular focus. The other individual is focused on national accounts. You know, in some organizations, that may be two different roles.

Mike McCann: Yeah. I think one thing that's really important from a messaging perspective, local and national, they're both really important to us. We thought to ourselves, the best way to make sure that we're gonna get the results is to take two proven executives and make sure that they're assigned specifically to that task. One of them is gonna be working on sales enablement. We've invested about 100 to 120 salespeople over the last three years. How do we support them with tools, training? How do we help them actually deliver those sales? We're really excited to have that particular focus. The other individual is focused on national accounts. You know, in some organizations, that may be two different roles.

Speaker #2: So one of them is going to be working on sales enablement. Really, how do we—we've invested in about 120 salespeople over the last three years.

Speaker #2: How do we support them with tools, training? How do we help them actually deliver those sales? And we really excited to have that particular focus?

Speaker #2: The other individual is focused on national accounts. In some organizations, that may be two different roles. For us, it's so important that we want to make sure we have two different executives working on it.

Michael M. McCann: For us, it's so important that we wanna make sure we have two different executives working on it. I think the other thing too, it's not like these two were working kind of independently from that perspective. They have independent focus, but there's lots of synergies as well too. I think that's why it's important that we've got people that understand the business. I think when we start to mature, having that ability to sell at the national level and from a national reach geographic, and as well as being able to deliver from a local geographic footprint perspective, we think that's gonna be one thing that's gonna make us really differentiated, and really continue to elevate where we're at from as far as from a customer experience perspective.

Mike McCann: For us, it's so important that we wanna make sure we have two different executives working on it. I think the other thing too, it's not like these two were working kind of independently from that perspective. They have independent focus, but there's lots of synergies as well too. I think that's why it's important that we've got people that understand the business. I think when we start to mature, having that ability to sell at the national level and from a national reach geographic, and as well as being able to deliver from a local geographic footprint perspective, we think that's gonna be one thing that's gonna make us really differentiated, and really continue to elevate where we're at from as far as from a customer experience perspective.

Speaker #2: And I think the other thing, too, it's not like these two were working kind of independently from that perspective. They have independent focus, but there's lots of synergies as well, too.

Speaker #2: So I really and I think that's why it's important that we've got people that understand the business. So I think when we start to mature, having that ability to sell at the national level, and from a national reach, geographic, as well as being able to deliver from a local geographic footprint perspective, we think that's going to be one thing that's going to make us really differentiated.

Speaker #2: And really continue to elevate where we're at as far as from a customer experience perspective.

Speaker #3: How much of your sales has come from sort of a national accounts opportunity or is it has it been much more on the local front?

Gerry Sweeney: How much of your sales has come from sort of a national accounts opportunity or has it been much more on the local front?

Speaker #2: I would say the majority have been local. We've had lots of opportunities over the years from a national perspective, but we haven't had that focus at the end of the day.

Michael M. McCann: I would say majority have been local. We've had lots of opportunities.

Mike McCann: I would say majority have been local. We've had lots of opportunities. Over the years from a national perspective, we haven't had that focus. At the end of the day, the national customers, I don't care if it's data center, industrial manufacturing, or from a healthcare perspective, they want to see a seamless experience. When they see a seamless experience, they're more willing to allocate more capital.

Gerry Sweeney: Okay.

Michael M. McCann: Over the years from a national perspective, we haven't had that focus. At the end of the day, the national customers, I don't care if it's data center, industrial manufacturing, or from a healthcare perspective, they want to see a seamless experience. When they see a seamless experience, they're more willing to allocate more capital. Sometimes even from a local perspective, we can only take it so far with the local team. The top person at one of these mission-critical facilities could be the facility manager, and all of those corporate decisions get made at a headquarters office. We've had some success with healthcare that we feel like we can extend that, but I would say a lot of the sales have been local. Our opportunity is that we have a combination of local and national.

Speaker #2: The national customers, I don't care if it's data center, industrial manufacturing, or from a healthcare perspective, they want to see a seamless experience. And when they see a seamless experience, they're more willing to allocate more capital.

Mike McCann: Sometimes even from a local perspective, we can only take it so far with the local team. The top person at one of these mission-critical facilities could be the facility manager, and all of those corporate decisions get made at a headquarters office. We've had some success with healthcare that we feel like we can extend that, but I would say a lot of the sales have been local. Our opportunity is that we have a combination of local and national.

Speaker #2: So sometimes even from a local perspective, we can only take it so far with the local team. The top person at one of these mission-critical facilities could be the facility manager.

Speaker #2: And all of those corporate decisions get made at a headquarters office. And we've had some success with healthcare that we feel like we can extend that.

Speaker #2: But I would say a lot of the sales have been local. Our opportunity is that we have a combination of local and national.

Speaker #3: Gotcha. And then just one more question on acquisitions. Listen, I think you're looking at maybe getting into different areas like integrated facilities opportunities and there's a lot of companies out there that sort of fit in that space that maybe even purchase for higher multiple.

Gerry Sweeney: Gotcha. Just one more question on acquisitions. Listen, you know, I think you're looking at maybe getting into different areas like integrated facilities opportunities, and there's a lot of companies out there that sort of fit in that space that maybe even purchase for higher multiples. One question maybe with an A and B aspect, I think, do you continue to go after these opportunities or will you have to pay up for these opportunities? Secondarily, does it make sense to maybe shift away from the Pioneer Power where it takes multiple years to sort of integrate it into your system and go after acquisitions that are more like right down the middle, like a fully integrated facility type acquisition?

Speaker #3: So one question maybe with an A and B aspect. I mean, do you continue to go after these opportunities, or will you have to pay up for these opportunities and secondarily does it make sense to maybe shift away from the Pioneer Powers where it takes multiple years to sort of integrate it into your system and go after acquisitions that are more right down the middle like a fully integrated facility-type acquisition?

Speaker #3: So in other words, buying paying up a little bit for an opportunity right in your wheelhouse versus maybe fixing one up.

Gerry Sweeney: In other words, paying up a little bit for an opportunity right in your wheelhouse versus maybe fixing one up.

Speaker #2: Yeah. So we look at it as important. Our long-term objective is to be an indispensable partner building owners with national reach and local presence.

Michael M. McCann: Yeah. We look at it as important. Our long-term objective is to be an indispensable partner to building owners with national reach and local presence. When you think about national reach from an acquisition perspective, our ability to invest in companies from an integrated facility planning perspective, they could be professional service companies. They're the ones that are gonna have some of these relationships. They're gonna be from a planning perspective. We think that's really important. When I think about the concept of local presence, you're still gonna need that geographic footprint as well, too. I don't think it's a question of one or the other. It's a question of combining the two of them together and making sure these acquisitions fit with that long-term objective.

Mike McCann: Yeah. We look at it as important. Our long-term objective is to be an indispensable partner to building owners with national reach and local presence. When you think about national reach from an acquisition perspective, our ability to invest in companies from an integrated facility planning perspective, they could be professional service companies. They're the ones that are gonna have some of these relationships. They're gonna be from a planning perspective. We think that's really important. When I think about the concept of local presence, you're still gonna need that geographic footprint as well, too. I don't think it's a question of one or the other. It's a question of combining the two of them together and making sure these acquisitions fit with that long-term objective.

Speaker #2: So, when you think about national reach from an acquisition perspective, our ability to invest in companies from an integrated facility planning perspective, they could be professional service companies.

Speaker #2: They're the ones that are going to have some of these relationships. They're going to be from a planning perspective. We think that's really important.

Speaker #2: When I think about the concept of local presence, you're still going to need that geographic footprint as well, too. So I don't think it's a question of one or the other.

Speaker #2: It's a question of combining the two of them together and making sure these acquisitions fit with that long-term projective. Obviously, from a geographic footprint perspective, the multiple may be different than from an integrated facility planning perspective.

Michael M. McCann: Obviously, from a geographic footprint perspective, the multiple may be different than from an integrated facility planning perspective, but our end game remains the same. Buying companies, great companies with great people that can ultimately achieve our long-term objective and making sure there's a really good fit. We're not just buying assets and compiling them. We're making sure that they're really smartly integrated from a strategy perspective.

Mike McCann: Obviously, from a geographic footprint perspective, the multiple may be different than from an integrated facility planning perspective, but our end game remains the same. Buying companies, great companies with great people that can ultimately achieve our long-term objective and making sure there's a really good fit. We're not just buying assets and compiling them. We're making sure that they're really smartly integrated from a strategy perspective.

Speaker #2: But our end game remains the same: buying companies—great companies with great people—that can ultimately achieve our long-term objective, and making sure there's a really good fit.

Speaker #2: We're not just buying assets and compiling them. We're making sure that they're really smartly integrated from a strategy perspective.

Speaker #3: Got it. I appreciate it. Thanks.

Gerry Sweeney: Got it. I appreciate it. Thanks.

Speaker #2: Thanks, Jerry.

Michael M. McCann: Thanks, Gerry.

Mike McCann: Thanks, Gerry.

Speaker #1: Thank you. Our next question comes from the line of Ryan Roofy with Stifel. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Brian Brophy with Stifel. Please proceed with your question.

Speaker #4: Yeah. Thanks. Good morning, everybody. Just following up on the national account discussion here, in the past, you kind of talked about going from 20 MSAs to 40 MSAs and then pursuing national accounts.

Brian Brophy: Yeah, thanks. Good morning, everybody. Just following up on the national account discussion here. In the past, you kind of talked about going from 20 MSAs to 40 MSAs and then pursuing national accounts. Now it seems like you're leaning into it a little bit more heavily, but we haven't obviously hit that 40 MSA number. Can you talk about what's driving that change and just confidence level in being able to secure some of these despite not having a larger footprint?

Speaker #4: Now it seems like you're leaning into it a little bit more heavily, but we have obviously hit that 40 MSA number. So can you talk about what's driving that change and just confidence level and being able to secure some of these despite not having a larger footprint?

Speaker #2: Yeah. So we've looked at it, and we've really tested our paradigms on this as well, too. So we've realized, I think—especially in healthcare, and I think we're going to see the same thing in the data center—it's great that we're in a geographic location.

Michael M. McCann: Yeah. We've looked at it, and we've really tested our paradigms on this as well too. We've realized, I think, especially in the healthcare, and I think we're gonna see the same thing in the data center, it's great that we're in a geographic location. It's almost an added benefit, but we can still provide a suite of services. As an example, we can still provide design build services even if we're not in a geographic footprint as well too. I think about when we think about future MSAs, we're looking for overlap of national customers. 'Cause not only can we provide high-level program management design build services, we get an added benefit from an installation process as well too.

Mike McCann: Yeah. We've looked at it, and we've really tested our paradigms on this as well too. We've realized, I think, especially in the healthcare, and I think we're gonna see the same thing in the data center, it's great that we're in a geographic location. It's almost an added benefit, but we can still provide a suite of services. As an example, we can still provide design build services even if we're not in a geographic footprint as well too. I think about when we think about future MSAs, we're looking for overlap of national customers. 'Cause not only can we provide high-level program management design build services, we get an added benefit from an installation process as well too.

Speaker #2: It's almost an added benefit. But we can still provide a suite of services as an example. We can still provide design-built services even if we're not in a geographic footprint as well, too.

Speaker #2: So I think about when we think about future MSAs, we're looking for overlap of national customers. Because not only can we provide high-level program management, design-built services, we get an added benefit from an installation process as well, too.

Speaker #2: So I think really we're still going to need geographic footprint. But if we can get by with a national account, national account presence, it's going to accelerate the opportunity within not only the acquisition that we purchase, but also from a national vertical market perspective.

Michael M. McCann: I think really, we're still gonna need geographic footprint, but if we can combine with a national account presence, it's gonna accelerate the opportunity within not only the acquisition that we purchased, but also from a national vertical market perspective. We're gonna be really strategic from those MSAs.

Mike McCann: I think really, we're still gonna need geographic footprint, but if we can combine with a national account presence, it's gonna accelerate the opportunity within not only the acquisition that we purchased, but also from a national vertical market perspective. We're gonna be really strategic from those MSAs.

Speaker #2: So we're going to be really strategic from those MSAs.

Speaker #4: Got it, that's helpful. And then, do you have a sense, or can you give us a sense of how much of the growth and the guide is related to capitalizing on some of this national account opportunity?

Brian Brophy: Got it. That's helpful. Do you have a sense, or can you give us a sense of how much of the growth in the guide is related to capitalizing on some of this national account opportunity? Should we expect to see more of these benefits in 2027?

Speaker #4: Or should we expect to see more of these benefits in ’27?

Speaker #2: I think to really for it to really take off, it's going to be '27. I think there's some built-in. But I think it's really going to be this year is focusing on from a selling perspective.

Michael M. McCann: I think to really, for it to really take off, it's gonna be 2027. I think there's some built in, but I think it's really gonna be this year is focusing on from a selling perspective. Some of the stuff, you've asked questions for about the healthcare jobs that we sold last year. Well, those are gonna obviously gonna revenue this year. We're gonna see some of it, I think, in the back half of the year. I think the real opportunity from a accessing capital, being able to burn the work, I think that's gonna be as much of a 2027, even more so than a 2026 perspective.

Mike McCann: I think to really, for it to really take off, it's gonna be 2027. I think there's some built in, but I think it's really gonna be this year is focusing on from a selling perspective. Some of the stuff, you've asked questions for about the healthcare jobs that we sold last year. Well, those are gonna obviously gonna revenue this year. We're gonna see some of it, I think, in the back half of the year. I think the real opportunity from a accessing capital, being able to burn the work, I think that's gonna be as much of a 2027, even more so than a 2026 perspective.

Speaker #2: So some of the stuff you've asked questions for about the healthcare jobs that we sold last year, well, those are going to obviously revenue this year.

Speaker #2: But we're going to see some of it, I think, in the back half of the year. But I think the real opportunity, from an accessing capital and being able to burn the work perspective, I think that's going to be as much of a '27, even more so than a '26, perspective.

Speaker #4: Okay. That's helpful. And then just one clarifying question on the data center opportunity. Are you still focused on existing buildings here, or are you starting to get into new construction at this point?

Brian Brophy: Okay, that's helpful. Just one clarifying question on the data center opportunity. Are you still focused on existing buildings here, or are you starting to get into new construction at this point?

Speaker #2: We're focused on existing buildings. There have been situations where we've been able to provide infrastructure. From a carve-out perspective, a lot of the work is direct to owner.

Michael M. McCann: We're focused on existing building. There's been situations where we've been able to provide infrastructure, from a carve-out perspective. A lot of the work is direct to owner. I think that's one thing that we're super focused on. I think as we get into these relationships, we're gonna make sure we're always getting the right risk-adjusted returns too. I think we wanna make the smart business decision as well too. We're gonna look at the opportunity, and we're gonna make sure that it makes sense with our strategy.

Mike McCann: We're focused on existing building. There's been situations where we've been able to provide infrastructure, from a carve-out perspective. A lot of the work is direct to owner. I think that's one thing that we're super focused on. I think as we get into these relationships, we're gonna make sure we're always getting the right risk-adjusted returns too. I think we wanna make the smart business decision as well too. We're gonna look at the opportunity, and we're gonna make sure that it makes sense with our strategy.

Speaker #2: So I think that's one thing that we're super focused on. I think as we get into these relationships, we're going to make sure we're always getting the right risk-adjusted returns, too.

Speaker #2: I think we want to make the smart business decision as well, too. So we're going to look at the opportunity. And we're going to make sure that it makes sense with our strategy.

Speaker #4: Appreciate it. I'll pass it on.

Brian Brophy: Appreciate it. I'll pass it on.

Operator: Thank you. Our next question comes from the line of Tomohiko Sano with J.P. Morgan. Please proceed with your question.

Speaker #1: Thank you. And our next question comes from the line of Tomosano with JP Morgan. Please proceed with your question.

Speaker #3: Good morning, Mike, Jamie.

Tomohiko Sano: Good morning, Mike, Jayme.

Speaker #2: Good morning.

Michael M. McCann: Good morning.

Mike McCann: Good morning.

Speaker #5: Good morning.

Speaker #3: Thank you. Could you please provide an update on the integrations of Pioneer Power and share some concrete timelines and milestones for gross margin improvement?

Gerry Sweeney: Good morning.

Jayme Brooks: Good morning.

Tomohiko Sano: Thank you. Could you please provide an update on the integrations of Pioneer Power and share a concrete some timelines, milestones for gross margin improvement? Additionally, what lessons have you learned from previous integrations, such as Jake Marshall, regarding driving a margin improvement to acquired businesses, please?

Speaker #3: Additionally, what lessons have you learned from previous integrations such as Jake Marshall regarding a driving margin improvement to acquired businesses, please?

Speaker #2: Yeah, absolutely. So there's a couple of different pieces of information that we provided. One of them I mentioned in the prepared remarks, but it's also in Slide 18 in our deck as well, too.

Michael M. McCann: Yeah, absolutely. There's a couple different pieces of information that we provided. One of them I mentioned the prepared remarks, but it's also in slide 18 in our deck as well too. A couple things. You know, we're at the point from a Pioneer Power perspective, we're really wrapping up phase I integration. We've learned from past deals, the sooner we can get through phase I, the better. A lot of times that's directly related around the accounting system upgrade. You know, we just wanna get that out of the way. We wanna accelerate that process. That allows us to see numbers. It's a big change management piece that we try to get through. I think at this point, we're really focused from a phase II implementation perspective.

Mike McCann: Yeah, absolutely. There's a couple different pieces of information that we provided. One of them I mentioned the prepared remarks, but it's also in slide 18 in our deck as well too. A couple things. You know, we're at the point from a Pioneer Power perspective, we're really wrapping up phase I integration. We've learned from past deals, the sooner we can get through phase I, the better. A lot of times that's directly related around the accounting system upgrade. You know, we just wanna get that out of the way. We wanna accelerate that process. That allows us to see numbers. It's a big change management piece that we try to get through. I think at this point, we're really focused from a phase II implementation perspective.

Speaker #2: So a couple of things. We're at the point from a Pioneer Power perspective where we're really wrapping up phase one integration. And we've learned from past deals the sooner we can get through phase one, the better.

Speaker #2: And a lot of times, that's directly related to the accounting system upgrade. We just want to get that out of the way. We want to accelerate that process.

Speaker #2: That allows us to see numbers. It's a big change management piece that we try to get through. So, I think at this point, we're really focused, from a phase two implementation perspective.

Speaker #2: So we try to provide some additional information that we thought would be helpful for investors, just to kind of show the trajectory from a Jake Marshall perspective.

Michael M. McCann: We try to provide some additional information that we thought would be helpful for investors just to kind of show the trajectory from a Jake Marshall perspective. Jake Marshall, at approximately the time of purchase was 13.4% gross profit. At the end of 2025, they were approximately 28.1%. A tremendous increase in gross profit. One thing we learned from Jake Marshall is our phase one got pretty extended. We didn't really switch over the accounting system for 12 months, and we learned that we wanted to get that out of the way as quickly as possible. That's one of the lessons learned we applied. The second lesson learned that we applied is we wanna be in front of the customers as soon as possible. We wanna listen to customers.

Mike McCann: We try to provide some additional information that we thought would be helpful for investors just to kind of show the trajectory from a Jake Marshall perspective. Jake Marshall, at approximately the time of purchase was 13.4% gross profit. At the end of 2025, they were approximately 28.1%. A tremendous increase in gross profit. One thing we learned from Jake Marshall is our phase one got pretty extended. We didn't really switch over the accounting system for 12 months, and we learned that we wanted to get that out of the way as quickly as possible. That's one of the lessons learned we applied. The second lesson learned that we applied is we wanna be in front of the customers as soon as possible. We wanna listen to customers.

Speaker #2: Jake Marshall at approximately the time of purchase was 13.4% gross profit. At the end of 2025, they were approximately 28.1%. So a tremendous increase in gross profit.

Speaker #2: One thing we learned from Jake Marshall is our phase one got pretty extended. We didn't really switch over the accounting system for 12 months, and we learned that we wanted to get that out of the way as quickly as possible.

Speaker #2: So that's one of the lessons learned we applied. The second lesson learned that we applied is we want to be in front of the customers as soon as possible.

Speaker #2: We want to listen to customers. We want to have joint meetings. We've already started that process from a Pioneer Power perspective last year. And we want that to build into additional.

Michael M. McCann: We wanna have joint meetings. We've already started that process from a Pioneer Power perspective last year. We want that to build into additional. Part of the reason for that is we wanna learn what their pain points are, what kind of value are we bringing, so we can then propose on different solutions that can drive margins as well too. Sometimes there's an opportunity to raise margins, but margins with value is much more better from a long-term customer perspective as well too. We wanna be.

Mike McCann: We wanna have joint meetings. We've already started that process from a Pioneer Power perspective last year. We want that to build into additional. Part of the reason for that is we wanna learn what their pain points are, what kind of value are we bringing, so we can then propose on different solutions that can drive margins as well too.

Speaker #2: Part of the reason for that is we want to learn what their pain points are. What kind of value are we bringing? So we can then propose on different solutions that can drive margins as well, too.

Speaker #2: Sometimes there's an opportunity to raise margins. But margins with value are much better from a long-term customer perspective as well, too. So we want to be, I think, the focus—especially at the beginning of the year. Hopefully, we see impact in the second half of the year. It's getting in front of customers, making sure we're focused on them, listening to what they want, and then proposing solutions that can drive margins, hopefully, in the back half of the year and really start to impact in '27.

Mike McCann: Sometimes there's an opportunity to raise margins, but margins with value is much more better from a long-term customer perspective as well too. We wanna be. I think the focus, especially the beginning of the year, and hopefully we see impact in the second half of the year, is get in front of customers, making sure we're focused on them, listening to what they want, and then propose solutions that can drive margins hopefully in the back half of the year and really start to impact in 2027. When I look at the trajectory from a gross margin perspective, we kinda have that Jake Marshall example. Our objective, of course, is how can we accelerate that timeline but still implement those lessons learned.

Michael M. McCann: I think the focus, especially the beginning of the year, and hopefully we see impact in the second half of the year, is get in front of customers, making sure we're focused on them, listening to what they want, and then propose solutions that can drive margins hopefully in the back half of the year and really start to impact in 2027. When I look at the trajectory from a gross margin perspective, we kinda have that Jake Marshall example. Our objective, of course, is how can we accelerate that timeline but still implement those lessons learned?

Speaker #2: So, when I look at the trajectory from a gross margin perspective, we kind of have that Jake Marshall example. Our objective, of course, is how can we accelerate that timeline but still implement those lessons learned?

Speaker #3: Thank you, Mike. And follow-up on gross margins: To achieve the 26% to 27% gross margin guidance, what are the most material risks and uncertainties you are monitoring for 2026?

Tomohiko Sano: Thank you, Mike. Follow up on gross margins. To achieve 26%, 27% gross margin guidance, what are the most material risks and uncertainties you're monitoring for 2026, and how you're preparing the business to navigate potential headwinds?

Speaker #3: And how are you preparing the business to navigate potential headwinds?

Speaker #2: Sure. So we're very focused on making sure that we're smart from a risk perspective. So one of the things, too, if you look at our both our owner-direct fixed price projects greater than 10,000, still an average project size at 240,000.

Michael M. McCann: Sure. We're very focused on making sure that we're smart from a risk perspective. One of the things too, if you look at our both our owner direct fixed price projects greater than $10,000, still an average project size at $240,000. GCR projects are an average project size in 2025 of $2.6 million. We really try to make sure that the projects have as short a duration as possible. That allows us to flex and ebb as well, too. That's always been very important from a strategy perspective. And I would say kinda maybe from a holistic perspective is a lot of our model really comes down to our ability to sell.

Mike McCann: Sure. We're very focused on making sure that we're smart from a risk perspective. One of the things too, if you look at our both our owner direct fixed price projects greater than $10,000, still an average project size at $240,000. GCR projects are an average project size in 2025 of $2.6 million. We really try to make sure that the projects have as short a duration as possible. That allows us to flex and ebb as well, too. That's always been very important from a strategy perspective. And I would say kinda maybe from a holistic perspective is a lot of our model really comes down to our ability to sell.

Speaker #2: GCR projects have an average project size in 2025 of $2.6 million. So we really try to make sure that the projects have as short a duration as possible.

Speaker #2: That allows us to flex and ebb as well, too. So that's always been very important from a strategy perspective. And I would say, kind of maybe from a holistic perspective, a lot of our model really comes down to our ability to sell.

Speaker #2: That's why from a Q4 perspective, our ability to sell 225 million versus revenuing 187 million is to us is an important step. I think as we continue to sell work, we really want to evaluate from a risk perspective as well, too.

Michael M. McCann: That's why from a Q4 perspective, our ability to sell $225 million versus revenue and $187 million is to us is an important step. I think as we continue to sell work, we really wanna evaluate from a risk perspective as well too. It's a careful balance. Those are probably the two things that we really look at and are always looking for opportunity to improve gross margin.

Mike McCann: That's why from a Q4 perspective, our ability to sell $225 million versus revenue and $187 million is to us is an important step. I think as we continue to sell work, we really wanna evaluate from a risk perspective as well too. It's a careful balance. Those are probably the two things that we really look at and are always looking for opportunity to improve gross margin.

Speaker #2: So, it's a careful balance. But those are probably the two things that we're really looking at, and are always looking for opportunity to improve gross margin.

Speaker #3: Thank you. Appreciate it.

Tomohiko Sano: Thank you. Appreciate it.

Speaker #2: Thank you.

Michael M. McCann: Thank you.

Mike McCann: Thank you.

Speaker #1: Thank you. And we have reached the end of the question-and-answer session. And now I'll turn the call back over to Mike McCann for closing remarks.

Operator: Thank you. We have reached the end of the question and answer session, and now I'll turn the call back over to Mike McCann for closing remarks.

Speaker #2: In closing, our strategic priorities for 2026 are the following: ODR organic revenue growth and total revenue growth; margin expansion through evolved customer solutions; and smart capital allocation to scale through acquisitions.

Michael M. McCann: In closing, our strategic priorities for 2026 are the following: ODR organic revenue growth and total revenue growth, margin expansion through evolved customer solutions, smart capital allocation, and scale through acquisitions. Over the past several years, the company has transitioned from a typical E&C contractor with single-digit EBITDA margins to a predominantly ODR-based platform with strong Free Cash Flow conversion, operating with very minimal leverage. The structural shift is largely complete, and our focus is now on growth. Every acquisition since 2021, Jake Marshall, AC Italian Mechanical, Industrial Air, Kent Island Mechanical, and Pioneer Power, was sourced on a proprietary basis and was strategically aligned with our specialized value approach, cultural fit, and niche expertise across our verticals. All of our acquisitions were underwritten at multiples of 5 to 6 times Adjusted EBITDA.

Mike McCann: In closing, our strategic priorities for 2026 are the following: ODR organic revenue growth and total revenue growth, margin expansion through evolved customer solutions, smart capital allocation, and scale through acquisitions. Over the past several years, the company has transitioned from a typical E&C contractor with single-digit EBITDA margins to a predominantly ODR-based platform with strong Free Cash Flow conversion, operating with very minimal leverage. The structural shift is largely complete, and our focus is now on growth. Every acquisition since 2021, Jake Marshall, AC Italian Mechanical, Industrial Air, Kent Island Mechanical, and Pioneer Power, was sourced on a proprietary basis and was strategically aligned with our specialized value approach, cultural fit, and niche expertise across our verticals. All of our acquisitions were underwritten at multiples of 5 to 6 times Adjusted EBITDA.

Speaker #2: Over the past several years, the company has transitioned from a typical E&C contractor with single-digit EBIT margins to a predominantly ODR-based platform with strong free cash flow conversion.

Speaker #2: Operating with very minimal leverage. The structural shift is largely complete. And our focus is now on growth. Every acquisition since 2021, Jake Marshall, Acme Industrial, Industrial Air, Ken Island Consulting Mechanical, and Pioneer Power was sourced on a proprietary basis and was strategically aligned with our specialized value approach, cultural fit, and niche expertise across our verticals.

Speaker #2: All of our acquisitions were underwritten at multiples of 5 to 6 times adjusted EBITDA. And with the operational improvements we make, the ultimate multiple paid is lowered by the growth in EBITDA.

Michael M. McCann: With the operational improvements we make, the ultimate multiple paid is lowered by the growth in EBITDA. Through a repeatable playbook, we improve margins and use resulting cash generation to delever and redeploy capital. The company has expanded its Adjusted EBITDA margin from 4.4% to 12.6% since 2020, and our leverage sits at just 0.3x. We maintain nearly $100 million in liquidity, all while meaningfully increasing the quality and margin of the business. At Limbach, we're building a long-term business model focused on delivering durable value over time. We bring a unique combination of engineered expertise and direct execution with building owners. Through long-term consultative relationships, we help our customers deliver multi-year capital plans that extend beyond traditional backlog.

Mike McCann: With the operational improvements we make, the ultimate multiple paid is lowered by the growth in EBITDA. Through a repeatable playbook, we improve margins and use resulting cash generation to delever and redeploy capital. The company has expanded its Adjusted EBITDA margin from 4.4% to 12.6% since 2020, and our leverage sits at just 0.3x. We maintain nearly $100 million in liquidity, all while meaningfully increasing the quality and margin of the business. At Limbach, we're building a long-term business model focused on delivering durable value over time. We bring a unique combination of engineered expertise and direct execution with building owners. Through long-term consultative relationships, we help our customers deliver multi-year capital plans that extend beyond traditional backlog.

Speaker #2: Through a repeatable playbook, we improve margins and use the resulting cash generation to de-leverage and redeploy capital. The company has expanded its adjusted EBITDA margin from 12.6% to 14.4% since 2020.

Speaker #2: And our leverage sits at just 0.3 times. And we maintain nearly 100 million of liquidity all while meaningfully increasing the quality and margin of the business.

Speaker #2: At Limbach, we're building a long-term business model focused on delivering durable value over time. We're bringing a unique combination of engineered expertise and direct execution with building owners through long-term consultative relationships.

Speaker #2: We help our customers deliver a multi-year capital plan that expands beyond traditional backlog. We believe this differentiated approach positions us well for sustained growth and shareholder value creation.

Michael M. McCann: We believe this differentiated approach positions us well for sustained growth and shareholder value creation. On March 22 through 24, we're attending the Roth Conference in California. We hope to see some of you there. Thank you again for your interest in Limbach. Have a great day.

Mike McCann: We believe this differentiated approach positions us well for sustained growth and shareholder value creation. On March 22 through 24, we're attending the Roth Conference in California. We hope to see some of you there. Thank you again for your interest in Limbach. Have a great day.

Speaker #2: Our March 22nd through 24th, we're attending the Roth Conference in California. And we hope to see some of you there. Thank you again for your interest in Limbach.

Speaker #2: And have a great day.

Operator: This concludes today's conference, and you may disconnect your line at this time. We thank you for your participation. Have a great day.

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