Louis De Palma

Louie De Palma inquired about Sterling's expansion into Texas beyond West Texas, specifically if jobs have been won on the east side and other markets. He also asked if 2026 geographic expansion is primarily Texas-focused or if other data center/mission-critical geographies are being considered. Finally, he questioned if profitability in new markets would be lower than in core E-Infrastructure mission-critical business.

Answer

CEO Joseph Cutillo clarified that 'attacking from the east' involves using their Plateau business for the Dallas/Houston corridor and Oklahoma, while 'attacking from the west' uses Rocky Mountain resources for West Texas, confirming active work and wins in West Texas. He stated that the lion's share of 2026 data center growth will be in Texas and the Southeast, with some early Northeast activity and plans to move assets to the Pacific Northwest for 2027 projects. Mr. Cutillo explained that if equipment suites are moved, margins should be similar, but acquisitions typically start with lower margins that improve with Sterling's processes. He also noted that multi-phase projects' margins improve over time.

Louis De Palma sought clarification on Iridium exploring strategic options, Aireon's involvement in FAA Air Traffic Control modernization, and the timing for NTN Direct chipsets and the Deutsche Telekom roaming partnership going live, including chipset differentiation.

Answer

CEO Matthew J. Desch reiterated that Iridium will pivot to make additional investments and acquisitions in unique, protectable areas to ensure long-term growth. He confirmed Aireon's discussions with the FAA for air traffic control modernization, particularly in areas like Alaska and the Caribbean. He stated that NTN Direct chipsets will be available next year (2026 timeframe) and will be mass-market chipsets from manufacturers like Nordic, supporting both terrestrial and satellite spectrums, with the service expected to be available in the latter half of 2026.