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CFO Sébastien Martel stated that the base case for H2 retail is a continuation of Q2 trends, but BRP is confident in its guidance due to low inventory and demand for new products. On capital allocation, Martel emphasized that the priority remains investing in the business and growing the dividend. He noted that the company will likely remain on the sidelines for share buybacks, prioritizing financial flexibility and prudence given the uncertain environment.

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CFO Sebastien Martel stated that network inventory was down 21% year-over-year, with most of the work on Year-Round Products expected to be complete by the end of Q2. He noted that some competitors were later in adjusting production, leading to an aggressive promotional environment. CEO Jose Boisjoli added that confidence for H2 is based on normalized non-current inventory levels, exciting new model year '26 product launches, and sustained momentum in current-year unit sales.

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CFO Sebastien Martel explained that BRP is in a stronger inventory position than competitors, who hold excess noncurrent units. He anticipates market share pressure in H1 2026, with normalization expected in H2. Martel also noted that while initial plans called for solid free cash flow, CapEx would be slightly higher due to foreign exchange, and the company remains flexible to adapt spending if market conditions worsen.

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EVP and CFO Vito Culmone attributed the margin strength to solid project execution, lower administrative costs, higher utilization, and favorable claim settlements, which contributed 30-40 basis points in the quarter. President and CEO Gord Johnston explained the Water segment's growth is driven by long-term demand, the ramp-up of AMP8 in the UK, and strong performance in Canada, with no signs of slowing down.

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Executive Gordon Johnston cited strong organic backlog growth, especially in the Buildings and Water businesses, as a primary driver of confidence. Executive Vito Culmone added that the EBITDA margin range is mainly influenced by project margin and business mix, with a continued focus on operational leverage. Regarding M&A, Johnston noted a focus on mid-sized firms with some larger opportunities emerging, while Culmone stated they have not yet seen a significant change in the M&A environment or valuation multiples.

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CEO Gordon Johnston confirmed that the M&A pipeline is full, including firms in the 500 to 2,000-person range and larger, and stated there is no change in M&A philosophy despite the CFO transition. CFO Theresa B. Jang noted that Q3 is historically the strongest quarter for margins and the company is on track to meet its guidance. Johnston added that while the commercial subsector is slow, areas like healthcare are strong, and he sees no significant softening from private clients, with an expected rebound in U.K. homebuilding.

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CEO Jon Vander Ark stated that the company is actively managing tariff-related cost increases and will pass them through in pricing, remaining confident in its ability to achieve a 30-50 basis point annual margin spread. For the ES business, he reiterated that while quarterly progress may be uneven, there is considerable long-term margin expansion potential over the next four to five years, driven by the technical nature of the waste streams and post-collection asset network.

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CEO Jon Vander Ark stated the company is working to mitigate tariff impacts with suppliers and will pass through necessary cost increases, remaining confident in achieving a 30-50 basis point price-cost margin spread. Regarding ES margins, Vander Ark sees considerable long-term runway but cautioned that progress will not be linear quarter-to-quarter. He expects a consistent, steady margin expansion trajectory over the next four to five years.

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CEO Jon Vander Ark acknowledged that cyclical volumes have been soft for three years but noted a pickup in March and April after weather-related weakness early in the quarter. He anticipates construction activity to remain flat due to interest rates. Vander Ark also explicitly reaffirmed the company's full-year 2025 guidance, stating that if guidance is not formally updated, it is reaffirmed.

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CEO Jon Vander Ark explained that while absolute pricing is moderating, the spread over costs remains healthy, with strong price retention. He identified the municipal business as a key area for future pricing optimization. CFO Brian DelGhiaccio clarified that the delayed RNG projects are a timing issue and are expected to be online in Q1 2025.

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CEO Jon Vander Ark stated that a 3-3.5% inflation environment is a 'good spot' for the business. He noted that while cyclical construction volume is down, the market is behaving rationally on price. CFO Brian DelGhiaccio added that significant residential contract losses from earlier in the year will anniversary by year-end, removing a headwind for 2025 volume comps.

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CFO Eric Guerin explained that the guidance reflects a continued 'wait and see' approach from partners, though it still implies an acceleration in H2 EBITDA growth. CEO Jim Kessler added that while it's too early in Q3 to see a clear trend due to macro uncertainty, RB Global is well-positioned for when market activity resumes.

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CEO Jim Kessler attributed the customer win to superior and transparent performance on service level agreements (SLAs) in a head-to-head comparison. He and CFO Eric Guerin credited margin gains to a continuous focus on operational efficiency without compromising service. Kessler also noted that while recent catastrophe (CAT) events were small, the company's response was rapid and well-received, underscoring their readiness for larger events.

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CEO Jim Kessler explained that CC&T customers are adopting a 'wait-and-see' approach due to high interest rates and project uncertainty, viewing equipment disposition as a timing issue. Regarding the U.K. win with Direct Line Group, Kessler noted it's an exclusive, multiyear contract with a top-tier carrier where RB Global previously had no business. He confirmed that IAA already has a physical footprint in the U.K., so no significant new investment is required for the Q3 start.

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Chair & CEO Bob Pragada stated the outlook is based on existing backlog, not speculation on IIJA acceleration, noting the portfolio's diversity provides a balance. Regarding PA Consulting, he explained its growth is driven by UK public sector stability and defense spending, supported by a 16% backlog increase.

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Chair and CEO Bob Pragada confirmed that some paused DoD infrastructure projects are now resuming in the second half, though state and local work was unaffected. He affirmed that reshoring discussions for life sciences and semiconductor clients are happening in 'real time,' with Jacobs benefiting from its involvement in early-stage planning and site selection.

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Chair and CEO Bob Pragada stated that customer sentiment remains positive, with double-digit pipeline growth and no dramatic shifts in client behavior. CFO Venk Nathamuni attributed margin strength to cost controls, operating leverage, a favorable project mix, and the global delivery model, confirming the full-year guidance of 13.8% to 14% adjusted EBITDA margin.

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CEO Bob Pragada clarified that guidance is based on client activity and long-term global trends, which are largely separate from potential political 'churn in the Beltway.' CFO Venk Nathamuni added the range reflects the most likely outcome. Regarding international markets, Pragada noted strong local client demand and growing pipelines in the U.K. and Middle East, driven by long-term trends in water and transportation, and emphasized the importance of the global talent pool in those regions.

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Chairman & CEO Troy Rudd addressed the U.S. market, noting increased clarity and stability in infrastructure investment agendas post-elections, supported by federal initiatives and robust state budgets. Chief Financial & Operations Officer Gaurav Kapoor detailed the margin drivers, attributing them to high-return organic investments, increased business development spending, operational efficiencies from initiatives like enterprise capability centers, and the early benefits of AI.

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CFO Gaurav Kapoor explained that the private sector constitutes about 30% of the business and is less cyclical than perceived, as two-thirds is regulatory-driven water and environmental work. He reaffirmed that the capital allocation strategy is unchanged, with share repurchases remaining consistent with free cash flow generation, which is typically weighted to the second half of the year.

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CEO Dan Batrak highlighted that state and local water infrastructure work continues to grow above the company's 10-15% expected range, nearing 18% growth excluding disaster work. He noted similar mid-teens growth in the UK and Ireland, driven by water utility frameworks. For front-end work, Batrak explained that as energy clients pivot from renewables to conventional sources like natural gas, there is a significant need for front-end consulting on technical evaluation, grid connection, permitting, and project economics.

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CEO Dan Batrack expressed confidence in funding streams from clients like the Department of Defense and the FAA, citing over $30 billion in contract capacity. He affirmed the medium-term outlook remains strong due to enduring tailwinds in water and environment. CFO Steven Burdick added that the company's capital allocation strategy is balanced, with sufficient liquidity to support dividend growth, M&A, and share buybacks simultaneously.

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CEO Dan Batrack responded that DoD work is growing strongly at 5-10% and is unaffected by recent administrative changes, with potential for acceleration. He noted commercial client conversations are progressing steadily, particularly for permitting and studies related to LNG and data center power. Batrack clarified that renewables represent only about 5% of revenue, with U.S. wind projects that may be out of favor constituting a very small portion (approx. 1.5%) of the total portfolio.

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CEO Dan Batrack identified three margin drivers: 1) internal efficiencies from digital tools, 2) shifting the portfolio mix toward higher-margin consulting, and 3) growing the high-margin software subscription business. He asserted that while competitors are entering the water space, they are focused on the commoditized end that Tetra Tech is exiting. Regarding M&A, he stated the primary driver is acquiring intellectual property and technology, not specific geographies.

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Founder, Chairman, President & CEO Patrick Dovigi confirmed the GIP sale process is in its final stages, with proceeds expected to fund M&A and share buybacks. Executive VP & CFO Luke Pelosi detailed margin drivers, highlighting outperformance from pricing strategies, improved labor turnover, and synergy realization, all contributing ahead of plan.

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Executive Luke Pelosi detailed the Q1 margin bridge, highlighting over 100 basis points of underlying expansion driven by price-cost spread, EPR, and asset utilization, suggesting a path to margin upside for the year. CEO Patrick Dovigi added that the capital allocation focus is on a robust M&A pipeline of accretive tuck-ins and continued opportunistic share buybacks, noting the company remains undervalued.

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CEO Patrick Dovigi detailed the plan to use proceeds for debt repayment of approximately $3.75 billion and a significant share buyback program of up to $2.25 billion, noting the stock is 'materially undervalued'. Executive Luke Pelosi explained that the 100 basis points of underlying margin expansion is driven by a 100-basis-point price-cost spread, yielding 60 bps of margin, with the remainder coming from self-help levers like EPR and RNG benefits, improved asset utilization, and lower employee turnover.

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CEO Patrick Dovigi explained that due to a significant valuation gap, the company will launch a formal auction for the ES segment after Labor Day, citing high private market valuations for similar assets. He emphasized the strategic goal is to accelerate deleveraging and fund a significant stock buyback. CFO Luke Pelosi detailed the guidance update, attributing the net increase to positive FX and commodity impacts, accretive M&A net of a divestiture, and strong underlying solid waste performance, which more than offset lower volumes from large-scale event-driven work.

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President & COO John Morris stated that about 70% of the residential business is now at an acceptable margin and expects volume loss to moderate by year-end. EVP & CFO Devina Rankin explained the margin guidance increase was driven by strong C&D performance, recycling commodity price impacts, and better-than-expected price-cost spread. CEO Jim Fish noted an encouraging rebound in the roll-off business, with significant improvement in June.

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EVP and COO John Morris explained that while reaching 20% margin is a milestone, they will continue to shed low-margin residential volume through 2025 and early 2026 to improve returns. EVP and CFO Devina Rankin stated that synergy realization will ramp up in the second half of 2025, with Q3 showing significant momentum from initiatives like back-office streamlining. Executive Rafael Carrasco added that operational discipline, such as bringing an incinerator online, will also drive savings.

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President and CEO Jim Fish stated that the industrial segment has been soft, reflecting a broader industrial slowdown, and the guidance does not assume a big rebound. He noted landfill volumes remain a bright spot. EVP and CFO Devina Rankin specified the 2025 recycled commodity price assumption is $85/ton, down from $92/ton in 2024. She added that prices bottomed in December and have seen an uptick in January, with the model assuming moderate increases through the year.

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EVP & CFO Devina Rankin stated the primary risks to ITCs are project timing and the interpretation of complex IRA rules, not necessarily an administration change. SVP & Chief Sustainability Officer Tara Hemmer clarified the rule risk is the difference between a 30% and 40% credit. President & CEO Jim Fish said it was too early to provide a timeline for margin recovery but will give more color with 2025 guidance, noting that growth in the core and sustainability businesses will be positive drivers.

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CEO Ronald Mittelstaedt projected that volume shedding from M&A integration would decrease but remain around 50-75 basis points if the acquisition pace stays high. He described the E&P business as having high fixed costs, where margin expansion is driven by volume, not cost reductions. CFO Mary Whitney added that the E&P segment is de-risked, with the production-linked Canadian business performing well.

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CFO Mary Anne Whitney and Executive Ronald Mittelstaedt noted that while the project pipeline is robust, project start dates are being delayed by governmental uncertainty. Mittelstaedt emphasized disciplined expense management, highlighting the strong Q1 margin. He also confirmed that the shedding of low-quality volumes from the Progressive Waste acquisition is now nearly complete.

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CFO Mary Anne Whitney noted that the 2025 preliminary framework implies mid-single-digit price plus volume, with the pace of reported volume recovery depending on anniversarying prior contract shedding. Executive Ronald Mittelstaedt stated that the company is better positioned than ever to integrate more M&A, citing a 50% reduction in open headcount, and that integration capacity would not be a limiting factor for another record year.

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The company's objective is to outpace the mid-single-digit automation market growth, similar to its pre-EV-headwind performance. The transportation business was a drag but is improving and expected to be profitable in FY26. Modest, progressive margin expansion is expected throughout the year. Regarding tariffs, the impact has been minimal, and the company's global footprint could be a mid-term benefit, allowing it to build in-region for customers and support reshoring.

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CFO Ryan McLeod stated that while the conversion rate will vary, the company aims to outpace the market's mid-single-digit growth. He expects the transportation business to be profitable in FY26, contributing to modest, non-linear margin expansion. CEO Andrew Hider added that the impact from tariffs has been minimal and that ATS's global footprint could be a mid-term benefit by enabling in-region manufacturing for customers.

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CFO Ryan McLeod explained that while the backlog conversion rate varies, the 19% YoY growth in backlog supports the company's goal to outpace mid-single-digit market growth. He expects modest, progressive margin expansion throughout fiscal '26 as the transportation business drag abates. CEO Andrew Hider added that while tariffs are a challenge, the impact has been minimal, and he views them as a potential mid-term benefit due to ATS's ability to leverage its global footprint for reshoring efforts.

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The company's current priority is deleveraging to its 2x-3x target range before resuming significant M&A. Nuclear is viewed as a key high-value niche, but Life Sciences will remain the largest segment. No marked change in life sciences customer behavior has been observed. The company is actively working with suppliers to mitigate potential tariff impacts on its supply chain, which has some exposure.

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Ryan McLeod, Chief Financial Officer, reiterated that the priority is reducing leverage to the 2x-3x target range over the next few quarters, which will precede a pickup in M&A. Andrew Hider, Chief Executive Officer, added that while nuclear is a high-value niche, Life Sciences will remain the largest market. He has seen no marked change in Life Sciences customer behavior, emphasizing ATS's ability to support them globally. Ryan McLeod also detailed that they are working with suppliers to mitigate potential tariff impacts, including those sourcing from Mexico.

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CEO Mike Speetzen stated the strategy is a combination: Polaris will use promotions to protect key segments but will not chase the deep, unsustainable discounts competitors are using to clear multi-year-old inventory. The primary tool to hit inventory targets is reducing shipments, as reflected in the updated guidance. He explained that the PG&A business is less volatile than whole goods, with the parts business showing particular resilience as consumers repair and maintain older vehicles.

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