Aug 13, 2026 earnings call — Record backlog and higher 2026 guidance
Raised full-year 2026 revenue guidance to $4.7 billion to $4.8 billion.
Revenue $1.3B (est $1.1B) · EPS $-0.37 (est $0.37) · Next-quarter revenue outlook $1.2B–$1.3B
Key quotes
"Excluding the impact of acquisitions, organic revenue growth was nearly 60%, while backlog and awards grew organically by over 35% year-over-year."
"During the second quarter, we grew our fabrication capacity by about 200,000 square feet, putting our current capacity at 1.5 million square feet. And we expect to add another 100,000 within the next couple of weeks and are looking at opportunities to expand even further."
"Based on pro forma last 12-month EBITDA, which would include pro forma EBITDA from Bowers during the second half of 2025, our pro forma net leverage ratio is now 1.5x, which is about half the level that we were after our IPO last September."
Analyst Q&A 10
large data center bookings and regions
Q (Adam Bubes · Goldman Sachs): He asked the size of the largest projects added to backlog, whether data center customers are hyperscalers or colocators, and how bookings may trend the rest of the year. He also asked which regions have crews and whether travel will rise as builds move rural.
A: Management said they booked large TFO data center projects roughly in the $175 million to $200 million range and also had solid off-site third-party manufacturing bookings. They said the sales pipeline is strong and they expect the positive trend to continue. Crews are active in California, Phoenix and the DMV and fabrication ships from Salt Lake City to Georgia and Charlotte.
"We've had some really strong bookings in the data centers, specifically in some TFO projects, which follow after base builds." — Steve Hansen (COO)
bookings outlook and factory capacity
Q (Julien Dumoulin-Smith · Jefferies): He wanted to know how bookings might extend into 2027 and whether the company can grow from these elevated levels. He also asked about working capital needs and how much modular/fabrication capacity is needed.
A: Management said momentum is increasing and projects are getting larger, which supports continued growth. They said working capital improved earlier and is now closer to normalized levels, with a modest use of cash this quarter, and that customized fabrication often brings higher prepayments. They said fabrication footprint is 1.5 million square feet today and they plan to add about another 100,000 square feet soon and can add shifts as needed.
"The momentum continues to increase, Julien, and it's remarkable." — Jeffrey Sprau (CEO)
margins in backlog and prefab share
Q (Charles Albert Dillard · Bernstein): He asked if gross margins in backlog differ from current margins and how to bridge them to the P&L. He also asked what share of revenue will be modular/prefab and how that affects overall margin potential.
A: Management said gross margins in backlog are generally similar to recent realized margins and they have not seen dramatic pricing changes across service lines. They said fab-only (I&M) work has been in the low 20% range of I&M revenue over the last 3 quarters and both fab-only and large installation jobs have been growing at similar rates. They said third-party manufacturing outlook is solid with lots of inbound work, especially as projects shift to rural areas.
"Our gross margins and backlog are generally similar to what our current or recent realizations are." — Stephen Butz (CFO)
regional demand and semiconductors
Q (Brian Brophy · Stifel): He asked if demand differs by region, especially DMV versus others, and whether they saw any notable semiconductor bookings and the outlook there.
A: Management said data centers have moved into more rural parts of the country, changing ship-to addresses, but primary markets like DMV, Phoenix and Texas remain strong. They said they are shipping to new states like Iowa, North Carolina and Ohio. On semiconductors, they said the market is ramping and getting stronger, they grew revenue in that end market this quarter and are booking projects to continue that growth.
"We did grow our revenue in that end market as well in the quarter, and we are booking projects to continue that growth." — Steve Hansen (COO)
semiconductor growth and new onshore markets
Q (Joseph Osha · Guggenheim Partners): He asked if the semiconductor segment could become as large as data centers over time. He also asked whether new onshore investments in cell wafer and ingot capacity are of interest.
A: Management said semiconductor revenue grew strongly this quarter, over 50%, but it still pales to the size of the data center market. They said they will target major players like Intel and TSMC and are seeing inbounds from other memory and chip producers, though some regions are competitive. They said they are interested in large clients and what drives their demand, but see such new investment areas as having outsized volatility.
"That said, that, of course, even pales to what we're seeing in the data center space." — Stephen Butz (CFO)
reshoring activity and business mix
Q (Sabahat Khan · RBC): He asked which industrial end markets are seeing reshoring and whether they are providing similar services and technology. He also asked about the right mix if data center tech is now about 60% of revenue and whether they would pursue that or seek balance.
A: Management said reshoring is in early innings and they expect it to grow; they named Tesla and SpaceX as clients where they see growth and said they support engineering and installations. They said pharma GLP-1 work is large for some clients. They said they want growth to be additive across markets, not one at the expense of others, and they will not turn away good clients; M&A could also be used to adjust mix over time.
"And I mean by that, we want to be able to satisfy demand from our customers, but not at the exclusion of our amazing customers in these other markets." — Jeffrey Sprau (CEO)
labor, capacity, and client timing
Q (Michael Dudas · Vertical Research Partners): He asked how they are allocating current labor and capacity against backlog for the next 3–5 quarters and whether clients are trying to lock services further into the future. He also asked how they balance resources across customers.
A: Management said their two main levers are labor and fabrication square footage and they are not seeing labor constraints that would force them to push out projects. They said prefabrication and factory work reduce field headcount and they can add shifts to create capacity within the existing footprint. They said clients are engaging earlier, backlog is stretching further out and they are having conversations about 2027 and beyond.
"we are not seeing labor constraints to the extent that we would have to either push out a project or anything like that." — Jeffrey Sprau (CEO)
installation vs fabrication margins and timing
Q (Oliver Davies · Rothschild & Co. Redburn): He asked the margin difference between installation and third-party fabrication sales and whether the speed to market or conversion of backlog has changed in the past 6 months.
A: Management said they do not disclose detailed sublevel margins, but full installation jobs generate much larger revenue opportunities while fab-only work yields higher margins per unit. They said projects are accelerating across end markets, timeframes are shortening, and their 1.5 million square feet of fabrication capacity helps pull projects in faster for clients.
"But I think what we can -- happy to say is that when we're completing a full installation job, those margins -- the revenue opportunity is much, much bigger than just a fab only." — Stephen Butz (CFO)
guidance: pulled revenue vs new work
Q (Christopher Senyek · Wolfe): He asked how much of the guidance increase is due to revenue being pulled forward versus new incremental work that was not expected last quarter.
A: Management said it is hard to split precisely and it is a combination of both factors. They said they benefited from pull-forward by executing some fab projects quicker than anticipated, which helped second quarter results versus guidance. They also said they have strong backlog coverage into the second half, which supported the guidance increase.
"I think the pull forward, we certainly benefited from that in a sense in the second quarter versus our guidance." — Stephen Butz (CFO)
E&C margins and drivers
Q (Derek Soderberg · Cantor Fitzgerald): He asked whether the Engineering & Consulting margin decline was due to labor costs or project mix, and whether E&C margins differ for work tied to larger projects versus smaller ones.
A: Management said the year-over-year margin difference was driven by mix, with a larger contribution from program and project management and performance contracting versus higher-margin engineering and design. They said over the last 8 quarters E&C margins have generally been in the 31% to 33% range and changes are driven by mix shifts. They also said they have not seen material differences in engineering fees by vertical market.
"Our margins, again, the difference in the year-over-year margin was driven by a mix." — Stephen Butz (CFO)