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CEO Gary Bowman attributed Transportation growth to synergies from recent acquisitions and robust public spending, highlighting wins in construction management and highway design. He also noted that the geospatial group's recent wins are driving the energy transmission business. CFO Bruce Labovitz explained that operating leverage is primarily driven by disciplined labor management and investments in innovation to scale revenue faster than headcount.

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Executive Gary Bowman explained that Transportation orders are naturally lumpy but the outlook remains strong, supported by IIJA, gas tax, and state funds. He identified data centers and grid modernization as key drivers for the Power segment. Regarding M&A, Bowman described the pipeline as active and competitive, with a focus on larger targets. CFO Bruce Labovitz added that Transportation's backlog value is up, indicating strong momentum, and noted the company is also pursuing non-acquisition 'acqui-hires' to add talent.

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CEO Gary Bowman confirmed that IIJA spending is accelerating and transportation trends are strong. CFO Bruce Labovitz noted the backlog's characteristics are stable, with a typical 80% turn profile within 12 months and no significant delays. Regarding technology, Gary Bowman highlighted investments in remote sensors, LiDAR/SONAR asset management products, and digital twinning tools. Bruce Labovitz added that these investments are strategically tied to revenue generation and margin enhancement, and the company has the balance sheet to support them.

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Executive Gary Bowman and CFO Bruce Labovitz described the transportation pipeline as robust and expanding, driven by acquisitions like ExelTech, the addition of new services like bridge design, and leveraging Surdex's aerial survey capabilities for state DOTs. Regarding the election, Gary Bowman expressed cautious optimism, foreseeing potential benefits from a more favorable regulatory environment for fossil fuels and mining, while expecting infrastructure spending to remain stable. He also noted a potential increase in public-private partnership (PPP) projects.

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President and CEO Matthew Lanigan confirmed that NPKI is seeing more long-duration projects, particularly in transmission, which boosts asset utilization and positively impacts margins. SVP & CFO Gregg Piontek clarified that the second-half guidance accounts for typical Q3 seasonality and the less predictable nature of product sales compared to the strong first half, while still reflecting healthy year-over-year growth.

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CEO Travis Boone attributed the pipeline growth to some private sector clients delaying project awards from Q2 into the second half of the year due to economic uncertainty. He noted that while the data center market remains strong, there is new competition, but Orion's client relationships remain a key advantage. CFO Alison Vasquez added that despite working capital usage in Q2, cash collections improved in July, and she expects a strong second half for cash flow.

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CEO Travis Boone stated that major defense awards are expected in late 2025 or early 2026, with several pursuits in the $500 million range. He confirmed the Concrete business has not seen a slowdown and noted increased bullishness from petrochemical clients. CFO Scott Thanisch added that growing volume and operating leverage are expected to drive margin improvement in the Concrete segment.

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CEO Travis Boone explained that the 2024 revenue shortfall was due to project timing shifts, specifically a Hawaii project moving into 2025, not lost work. He affirmed confidence in the 2025 guidance and the strategy to build backlog for significant growth in 2026. Boone attributed the pipeline growth to strong opportunities in data centers and Navy projects in the Pacific. CFO Scott Thanisch added that the large pipeline allows for selectivity and supports a favorable margin environment.

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Executive Travis Boone described the bidding environment as strong and steady, with significant pursuits lined up for Q1 2025. He noted that major Navy opportunities are now expected later in 2025. CFO Scott Thanisch added that the company anticipates increased CapEx spending to acquire equipment for future growth, supported by a strong balance sheet.

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CFO Peter Johansson detailed a significant number of large opportunities (over $50 million each) in industrial water projects across the Middle East, India, and Southeast Asia. He also noted a resurgence in buying cycles for semiconductors, beverage can manufacturing, and metals processing. Both executives stated that while helpful, recent legislation is not the primary growth driver, with CEO Todd Gleason emphasizing he is more focused on the company's "big beautiful backlog."

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Peter Johansson (executive) identified IT infrastructure, specifically the standardization onto a single Microsoft D365 ERP platform, as the largest investment priority through 2026. He noted that traditional CapEx remains modest. Regarding defense, Johansson explained the benefits are both indirect, from new factory construction, and direct, through technology supplied to the Navy. Todd Gleason (executive) added that the high-specification work for naval applications is similar to their work in the nuclear sector, which saw strength in Q1.

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Todd Gleason, CEO, stated that the record backlog provides significant confidence and visibility for 2025 guidance, a stronger position than entering 2024. Peter Johansson, CFO, added that gross margins have room for moderate expansion, while EBITDA margins should see accelerated improvement from scale and productivity. Regarding tariffs, Gleason noted the direct financial impact is expected to be manageable, with the primary concern being potential market uncertainty, which has not yet materialized.

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CEO Todd Gleason expressed confidence that delayed projects will be realized, attributing the wider 2025 guidance range to the variable timing of when this backlog converts to revenue (either late Q4 2024 or early 2025). He and CFO Peter Johansson affirmed they have the necessary capacity, explaining they are carefully managing resources and qualifying new fabrication partners to ensure supply chain flexibility.

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Brad Wiemann, EVP, Interim President & CEO, stated that fiscal 2026 growth is on track to align with the company's 7-10% CAGR target. He also detailed margin levers including value-based pricing, operational cost reductions, and new services. Regarding the Commercial segment, Wiemann highlighted significant growth opportunities in the AV integrator space. Howard Atkins, Acting CFO, added that the primary use of capital is for profitable growth and product development, with share repurchases also being a key consideration.

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Reece A. Kurtenbach (Chairman, President and CEO) explained that booking delays are primarily due to the natural lumpiness of large projects and that current quoting activity remains strong. Regarding tariffs, he noted that Daktronics, as a U.S. manufacturer, has already been paying tariffs on components, suggesting new broader tariffs on finished goods from China might impact competitors more significantly. He described the High School market as a wide-open opportunity, with fewer than 10% of schools having converted to video. On capital allocation, he stated the board reviews options quarterly, including CapEx, tuck-in M&A, and direct shareholder returns like buybacks.

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CEO Jim Clark identified the grocery vertical as the primary source of demand fluctuations but noted that schedules are stabilizing. CFO Jim Galeese quantified the temporary gross margin impact from these inefficiencies at 200-250 basis points, which he expects to recover. Regarding tariffs, Clark explained that LSI's strategy involves leveraging its domestic manufacturing, using existing inventory as a buffer, and having alternative sourcing plans ready, while passing on real cost impacts to customers as they occur.

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President and CEO James Clark explained that while it's difficult to distinguish between a temporary surge and a new run rate in the Grocery segment, he anticipates elevated activity will continue through Q3 and Q4. He noted that margins were impacted by ramp-up inefficiencies, the integration of the lower-margin EMI business, and costs from hedging against port strikes, but expects gradual improvement. Both Clark and CFO James Galeese emphasized that LSI's domestic manufacturing focus (70% domestic sourcing) and proactive contingency planning should mitigate the impact of any potential tariffs, positioning them favorably against competitors.

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President and CEO James Clark confirmed the C-store backlog would carry the company through fiscal 2025 and that pilot programs for the new R290 refrigerated solutions have been successful, becoming the standard from January 1. Regarding the EMI acquisition, Clark highlighted strong commercial introductions and operational improvements, expecting years of synergy harvesting. Executive James Galeese added that multiple C-store chains have shown strong acceptance of their new display units.

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