Oct 28, 2026 earnings call — MACC awards and strong bids pipeline
Company said submitted bids awaiting award reached $2 billion, roughly split between concrete and marine.
Revenue $0.3B (est $0.2B) · EPS $0.12 (est $0.09)
Key quotes
"The first contract is the U.S. Navy VENTI MACC, a $9 billion contract vehicle and the largest procurement action in NAVFAC Northwest history, encompassing a broad range of major construction projects across the region."
"I'm pleased to report that our Pacific Rock and Dredge team, or McAmis, made significant contributions in the quarter, supporting strategic pursuits and also delivering revenue with highly accretive margins and positive cash conversion."
"Our Concrete business had an excellent quarter as well, with revenue growth of 16% to $95 million, primarily attributable to geographic expansion, growing service lines such as site civil, and excellent execution benefited by favorable operating conditions in the quarter."
Analyst Q&A 6
Interest rates effect on bids and margins
Q (Aaron Spychalla · Craig-Hallum): Analyst asked if interest rates or commodity prices are changing demand or margins, and asked timing for Navy MACC task orders. He also asked about drivers of contract assets and free cash flow.
A: Management said they have not seen interest rates affect margins or bid volume. They said they do not have firm timing for Navy task orders yet, but expect work in the Pacific Northwest over time. On cash, they said working capital conversion improved post-quarter but retainage and Marine program investments are driving contract assets; they expect those to be worked down in Q4 and noted CapEx spending on a derrick barge modernization.
"No, we haven't noticed anything yet related to interest rates impacting either margins or even bid volume." — Travis Boone (CEO)
Backlog drivers and concrete margins
Q (Tomo Sano · JPMorgan): Analyst asked why book-to-bill was about 0.7x and whether this was timing or a slowdown in new awards. He also asked how much of concrete margin improvement was structural versus timing or favorable project gains.
A: Management said win rates remain strong but award cycles have slowed, which raised the volume of quoted work to about $2 billion that they're waiting to hear on. They noted they won a funded program that will not be recorded in backlog until mid-2027 because of a change in the commercial arrangement. On concrete margins, they said about 2% of the uplift came from write-ups on well-executed projects, and that normative Concrete margins are around 7% on a trailing 12-month basis with a goal to move into upper single-digits over a few years.
"So that is something that was nice to see in the quarter that we won, but it will not show up in our backlog until sometime in mid-2027." — Alison Vasquez (CFO)
Submitted bids and MACC task orders
Q (Brent Thielman · Oppenheimer): Analyst asked whether the roughly $2 billion in submitted bids includes task orders under the large MACC contract vehicles. He also asked if that submitted-bids total is likely to grow next year.
A: Management confirmed the $2 billion includes task orders and other bids where they have put in a price, and said some of those are under prior MACCs like PDI. They expect the pipeline of submitted bids to grow as task orders under the new MACCs come into focus, and said the ideal outcome is awards coming faster so quoted work declines while backlog rises.
"Yes, it does include generally task orders or other bids where we have put in a price for the project." — Travis Boone (CEO)
Site civil contribution, new markets, Marine margins
Q (Min Cho · Texas Capital): Analyst asked how much site civil work attaches to Concrete revenue, whether Concrete is expanding in Florida and Arizona, and whether Marine EBITDA margins should meaningfully improve in Q4.
A: Management said they cannot yet quantify the site civil contribution, but they began site civil services less than a year ago and it is performing very well and profitably. On geography, they said Florida was started a couple years ago and is growing, and Arizona was added more recently by following key clients and is developing. On Marine margins, they said trailing 12 months are around 12% and they expect Marine to be around 12%, 13% penciled in, with some possible upside in Q4.
"I can't quantify it at the moment, but what I can say is we started performing site civil services little less than a year ago, and it's going very well." — Travis Boone (CEO)
Data center concentration and free cash flow
Q (Liam Burke · B. Riley): Analyst asked if Concrete is diversifying away from data centers and whether the company expects positive free cash flow or will prioritize options in 2027.
A: Management said roughly half of Concrete revenue remains mission-critical data center work, but they are winning other project types like cold storage, hospitals, and higher education. On cash, they said a full-year positive free cash flow for 2026 is unlikely because of investments such as the derrick barge, and that CapEx guidance is in the range of $25 million-35 million with them likely closer to the $30 million; they expect operating cash flow to improve in Q4 as projects mature.
"I do think that from a CapEx perspective, we'll be in the range of $25 million-35 million, but based on where we're tracking, we'll probably be closer to the $30 million." — Alison Vasquez (CFO)
Geopolitics effect on MACC award timing
Q (Gerry Sweeney · Roth Capital): Analyst asked whether Middle East geopolitical focus or other events could cause delays or friction in timing of MACC awards, at least short term.
A: Management said the U.S. strategy for the Pacific has been consistently bullish and they have not seen changes that would reduce planned Navy infrastructure in the Pacific. They do not expect Middle East focus to affect Pacific work in the coming few years, though they noted Congress controls DoD funding and that could influence timing.
"While there will be some push for the Middle East, I don't expect that to impact what we see in the Pacific in the coming few years." — Travis Boone (CEO)