Laura Maher

Laura Maher inquired if Verizon's recent layoff announcements would impact Dycom's projects and asked about the increased sophistication of current fiber buildouts supporting AI growth compared to previous internet-driven builds.

Answer

President and CEO Dan Peyovich stated that Dycom is monitoring the news regarding Verizon but has not seen any impacts on its significant ongoing work for the customer. He explained that current long-haul and middle-mile fiber buildouts, supporting high-capacity and high-density fiber bundles for AI, are indeed more complex and require greater sophistication in planning and installation, which favors Dycom's specialized expertise.

Laura Maher asked if Verizon's recent potential layoffs are related to any projects Dycom is involved with. She also inquired about the increased sophistication of the latest fiber buildout supporting AI growth compared to previous internet-driven fiber deployments.

Answer

President and CEO Daniel Peyovich stated that Dycom is monitoring the news on Verizon layoffs but has not seen impacts on their business, expecting continued work. He explained that current long-haul and middle-mile fiber builds for AI are more complex, requiring greater sophistication in planning and installation, and Dycom's experience (e.g., with Lumen overpulls) positions them well for this evolving demand.

Laura Maher of B. Riley Securities inquired if government layoffs have impacted project approval processes and whether Dycom is seeing any early benefits from deregulation.

Answer

President and CEO Dan Peyovich characterized the regulatory environment as fluid. He noted that any easing of permitting would be a positive for the industry. He also pointed to other potential tailwinds, such as bonus depreciation, that could encourage customers to increase spending, stating that the company is monitoring these developments closely.

Laura Maher asked if utilities are encountering any regulatory pushback to fund Transmission and Distribution (T&D) growth.

Answer

President and CEO Duke Austin acknowledged affordability issues in certain areas but noted that most commissions support T&D growth if it benefits ratepayers. He stressed the critical need for a modern, robust grid for the economy and highlighted how new models are accelerating projects by ensuring ratepayer benefits.

Laura Maher asked if utilities are encountering any regulatory pushback regarding funding for Transmission & Distribution (T&D) growth.

Answer

President and CEO Duke Austin acknowledged that affordability issues exist in certain areas, but noted that most commissions are supportive of T&D growth if it's positive for ratepayers, as most transmission projects are NPV positive. He emphasized the broad-based need for a modern, robust grid to support the economy, and that the industry, including technology companies and utilities, is working to ensure ratepayer benefits and address affordability concerns.

Laura Maher from B.Riley Securities inquired about how varying OEM exposure to tariffs, based on their supply chains, is affecting Titan Machinery's floor planning arrangements and equipment allocation strategy.

Answer

CFO Bo Larsen clarified that tariffs do not directly impact floor plan arrangements. He explained that the company's overarching strategy is to minimize stock inventory and increase presales. This approach inherently reduces balance sheet risk and lowers floor plan interest expense, irrespective of specific cost pressures like tariffs.

Laura Maher asked about customer feedback regarding the 'One Big Beautiful bill's' impact on project timelines and inquired about the growth drivers and outlook for the Natural Resources segment.

Answer

CEO Gary Bowman mentioned that the bill's accelerated depreciation is expected to positively affect investment decisions. CFO Bruce Labovitz added that the bill reduces uncertainty and may accelerate renewable energy permitting to meet new deadlines. Labovitz also explained that growth in Natural Resources is primarily driven by high-altitude imaging and geospatial services for federal clients, a capability enhanced by the Surdex acquisition.

Laura Maher of B.Riley Securities inquired about the current utilization rate for the mat fleet compared to the company's target range. She also asked if any new end markets are showing increased activity due to evolving infrastructure priorities.

Answer

SVP & CFO Gregg Piontek stated that while a specific rate isn't disclosed, utilization has been running at the high end of the 60-80% target range, near 80%, for the last three quarters. President and CEO Matthew Lanigan reiterated that NPKI's primary focus remains on the significant opportunities within the transmission and pipeline sectors rather than expanding into new end markets.

Laura Maher inquired about the current utilization rate for the mat fleet and how it compares to the company's target range. She also asked if NPKI sees any new end markets gaining traction due to evolving infrastructure priorities.

Answer

SVP & CFO Gregg Piontek stated that while specific figures are not disclosed, utilization has been running at the high end of their typical 60-80% range, around 80%, for the past three quarters. President and CEO Matthew Lanigan responded that the company remains focused on the significant opportunities in power transmission and, to a lesser extent, pipeline growth, as these are the primary drivers, though they remain watchful for other opportunities.

Laura Maher asked for the current utilization rate of the mat fleet and how it compares to the company's target range. She also inquired if any new end markets are emerging as a result of evolving infrastructure priorities.

Answer

SVP & CFO Gregg Piontek stated that while specific numbers aren't disclosed, utilization has been running at the high end of their typical 60-80% range, near 80%, for the past three quarters. President and CEO Matthew Lanigan reiterated that the primary focus remains on the significant opportunities in transmission and, to a lesser extent, pipeline, rather than seeking out entirely new end markets at this time.

Laura Maher asked if Orion is leveraging its strong data center client relationships to expand into other verticals and whether recent order wins are primarily from market growth or from taking market share from competitors.

Answer

CEO Travis Boone confirmed that the company is successfully leveraging its strong general contractor relationships from the data center space to win work in other verticals, such as medical, higher education, and other commercial industrial projects. He stated that recent wins are a mix of both taking share from competitors and having a superior bidding process, which involves more upfront development work to create a 'better mousetrap' for winning projects.