Tobey Sommer • Truist Securities, Inc.

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CEO Jon Vander Ark expressed confidence in managing labor costs even in a stronger economy, citing the company's strong culture, employee engagement, and competitive compensation. He does not see a major risk of rising labor expenses offsetting volume gains. In the ES market, he acknowledged that some competitors are trading price for volume in the current environment, but Republic will remain disciplined. He confirmed this dynamic does not negatively impact the strong M&A outlook.

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CEO Jon Vander Ark expressed confidence in managing labor in a stronger economy, citing the company's focus on culture, engagement, and competitive compensation. He does not see a hotter economy causing a labor pinch. On the ES market, he acknowledged that in a challenging demand environment, some competitors trade price for volume, but this is a marginal issue. He stated this behavior does not change the M&A outlook, which remains strong.

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CEO Jon Vander Ark stated that there has been no real change in the motivations of sellers for the high-quality assets Republic Services targets, although he noted that broader uncertainty can be marginally helpful for M&A activity. He also said he has not observed any notable changes in customer behavior tied to the political environment.

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CEO Jon Vander Ark attributed the low turnover to strong employee engagement and management incentives, rather than just macroeconomic conditions. He believes that while the rate of improvement will slow, the company can still make further progress, as the achievement was made in a tight labor market.

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CEO Jon Vander Ark stated that over the long term, there's no reason the Environmental Solutions EBITDA margin couldn't be similar to the core waste business, viewing new incineration capacity as a welcome opportunity to meet pent-up demand. Regarding M&A, he reiterated the company's disciplined approach, focusing on the post-synergy potential of targets rather than their current margin profile, as RSG typically recapitalizes and integrates them into its more efficient systems.

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CEO John Heller and COO Stephen Arnette detailed the growing nuclear opportunities in the U.S., U.K., and Australia, driven by energy needs for AI and national security initiatives like AUKUS. They highlighted key projects like Sizewell C. Regarding guidance, John Heller confirmed that due to the expected closing timeline, the divestiture is not expected to have a significant impact on the FY25 forecast.

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CEO John Heller stated that the government is currently operating with a sense of urgency and efficiency, and he does not anticipate unusual Q4 procurement dynamics. COO Steve Arnette explained that Amentum is already deeply engaged in the Golden Dome mission via its work with the Missile Defense Agency, positioning it well to support the initiative's emphasis on rapid deployment, which is backed by a $25 billion initial investment.

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COO Steve Arnette described strong momentum in the commercial sector, with a book-to-bill greater than one, driven by work with hyperscalers on AI, automotive R&D, and smart infrastructure. CEO John Heller affirmed Amentum's readiness to support U.S. government missions globally as needed, while CFO Travis Johnson clarified that such potential opportunities are not included in current guidance. Johnson also confirmed no slowdowns in government payments. Arnette and Heller both expressed high confidence in the NASA portfolio, citing the strategic importance of the Artemis program and NASA's role in national space superiority.

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CFO & COO Brian Scott explained the SG&A improvement is due to cost management, process automation, and the sale of SmartSquare, while the gross margin decline reflects the divestiture and some favorable one-time items in Q2 not recurring. President & CEO Cary Grace stated the strike business now uses technology to scale support for clients without disrupting core operations. She added that for language services, the focus is on a strong sales pipeline to counteract competitive pricing pressure.

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Executive Randle Reece confirmed order data is not filtered and that 14% of vendor-neutral/VMS orders were unfilled in Q3. He projected a normal 65% EBITDA-to-operating cash flow conversion. President and CEO Cary Grace stated CapEx will be lower next year as major tech projects like ShiftWise Flex are near completion. She added that sales re-engagement is in a 'ramping phase' with positive indicators like pipeline growth and a net win position for MSPs.

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President and CEO John Mengucci estimated that new-to-market work is roughly 60-70% of the pipeline, but stressed that CACI focuses on bringing new, better solutions to customers regardless of whether it's a new program or a takeaway. CFO Jeffrey MacLauchlan added that these opportunities align well with designing successor programs that incorporate more outcome-based content, moving away from traditional contracting models.

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CEO John Mengucci highlighted electronic warfare, INDOPACOM readiness, and border protection technologies like counter-drone systems as key opportunity areas. Regarding optical communications, he stated CACI is on track to deliver at least 6 times more terminals in FY25 than in FY24, having overcome significant production challenges and is confident in hitting its delivery goals for the year.

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CEO John Mengucci stated that CACI's remote work policies are determined at the program level based on customer and security needs, and it's too early to assess the full impact of the government mandate. He estimated that 85-90% of CACI's work is outcome-based, reflecting the company's strategic shift from labor-hour support to technology-driven solutions.

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CEO John Mengucci did not provide specific win rate percentages but emphasized a strong focus on recompetes, which are traditionally above 90%. He attributed overall success to CACI's strategy of 'bid less and win more' and focusing on larger, longer-duration programs. He noted that more detail on their successful business development engine would be provided at the upcoming Investor Day.

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EVP & CFO Barry Hytinen stated the high flow-through has been consistent for several quarters. He attributed it to a combination of factors: the high-margin Global RIM business, rising data center margins to over 50% driven by strong pricing on new leases, and significant operating leverage and mix improvements in the ALM business.

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CEO William Meaney identified the core of the 'Matterhorn' strategy as the key initiative: a centralized commercial team providing a single point of contact for customers. He explained this enables cross-selling across Iron Mountain's entire product suite, which has been crucial in transforming the company into a consistent double-digit growth performer.

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Chair, President & CEO Cary Smith detailed Parsons' strong positioning for both the FAA and Golden Dome initiatives, citing deep experience, key partnerships like with IBM, and significant funding from the recent reconciliation bill. CFO Matt Ophelis added that nearly $3 billion in ceiling remains on existing contract vehicles for these areas. Regarding bookings, Ms. Smith anticipates a robust Q3, in line with seasonal trends, and a full-year book-to-bill ratio of 1.0 for both business segments.

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CEO Carey Smith stated that Parsons has seen minimal impact from DOGE, as the company is not a consulting firm and does not work with the primary agencies being targeted. She noted discussions with DOGE have been positive, focusing on accelerating FAA modernization. While comfortable with fixed-price work, she has not seen a material shift in contracting. For M&A, the company still expects to complete 2-3 acquisitions this year, with a robust pipeline in both segments.

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CEO Carey Smith explained that while the procurement cadence is slightly slower, it's offset by more contract extensions and ceiling increases, with less than 5% of 2025 business up for recompete. She also clarified the $29 million in charges were related to two specific programs: one being the company's final legacy contract which is now complete, and the other a settled claim on a separate project that is now executing ahead of schedule. Both issues are now considered resolved.

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CFO Matt Ofilos stated that Q4 growth is about 12% organic and for 2025, BlackSignal is expected to contribute over $100 million and BCC over $100 million. CEO Carey Smith detailed synergy opportunities, noting BlackSignal complements Parsons' existing EW and cyber capabilities for different customers, while BCC strengthens their transportation engineering footprint in the Southeast, particularly in Florida and Georgia, and brings a favorable 50% fixed-price contract mix.

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CEO Thomas Bell stated that Leidos views this GSA initiative as a positive trend, as it aligns with their preference for outcome-based commercial contracts and allows more budget for their core value-add in mission systems. CFO Chris Cage added that pass-through hardware and software sales constitute several hundred million dollars in revenue but contribute minimally to earnings and cash flow due to very low or zero margins.

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CFO Chris Cage cited a milestone payment on a U.K. program, progress in security solutions, and continued strength in commercial energy. CEO Tom Bell added that this was just a 'down payment' on future growth, expressing strong optimism for opportunities in AUKUS, grid resilience, and port and border security.

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CEO Thomas Bell confirmed that Buckeye remains a strong business within the Defense segment, with its assets being "fully utilized." He noted that capital is being deployed in Q4 for down payments on future growth in this area. While acknowledging manned ISR assets may eventually be replaced, he stressed their critical importance in the near term. CFO Chris Cage added that Leidos will continue to seek select, high-return investment opportunities in airborne ISR support.

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CFO Nirupam Sinha attributed the strong European margin to significant revenue growth and scale, while the Americas margin was impacted by the timing of bonus accruals for high-producing consultants, noting no structural change. CEO Tom Monahan described the current environment as a series of 'microclimates,' stating the firm is built to be 'all-weather' and that growth is more thematic (e.g., AI, restructuring) than industry-specific. Regarding consulting margins, Monahan expressed pleasure with the quarterly progress but emphasized focusing on the long-term trajectory rather than a single quarter's results.

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CEO Tom Monahan stated that volatility and change create opportunities, as clients question their leadership needs, which has translated into business growth. He also noted that headcount growth will likely align with the long-term revenue growth targets from their Investor Day. CFO Nirupam Sinha added that performance has been strong across the board geographically, with particular momentum in North America, and that most industry sectors were robust, though consumer comps were less so in 2024.

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VP & Controller Steve Bondi stated that confirmation growth was strong, particularly in October, and that client demand remains robust despite economic uncertainty. CEO Thomas Monahan added that while turnover from the 'great resignation' has normalized, new trends like AI are creating novel executive roles. Regarding newer segments, Monahan emphasized a focus on 'disciplined execution' to achieve profitable growth, not choosing one over the other, by scaling the most advantageous offerings.

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James Allison, EVP & CFO, indicated that the total investment in the Workday product over five years might slightly exceed the initial $150 million estimate, but the impact on the income statement is expected to decrease as expenses become capitalizable near launch. Paul Sarvadi, Chairman & CEO, added that he expects the company's long-term margin profile to be better than historical levels, driven by improved client retention, higher pricing for larger clients via the new offering, and enhanced operating leverage.

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Executive Paul Sarvadi suggested that increased certainty from Washington, particularly regarding the tax system and regulations, could significantly boost client confidence. He expressed optimism for the fall selling campaign, stating that momentum from sales realignments and the tangible progress with Workday could create a more favorable environment compared to the previous year, positioning the company well for 2026.

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CEO Paul Sarvadi stated that while he is not providing a pinpoint launch date to maintain development focus, progress is strong. He clarified that the corporate deployment is a foundational step for the client solution, making their concurrent timing important. Sarvadi also noted that the prospect of the new solution has been a net positive, creating excitement for both prospects and clients without causing sales delays, as it reinforces Insperity's value as a comprehensive technology and service provider.

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CEO Mark Hussey reiterated that clients are prioritizing immediate financial stability, delaying, but not canceling, digital projects. CFO John Kelly added that the Healthcare segment's guidance was raised due to strength in higher-margin consulting. Kelly attributed headcount growth to the managed services business, the Eclipse acquisition, and aggressive hiring in healthcare consulting to meet strong demand. Hussey noted that M&A progress is strong and they may pursue one or two more tuck-in deals this year.

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Chief Financial Officer John Kelly reported no notable change in business trends in April, highlighting that Q1 sales conversions were up meaningfully year-over-year with no cancellations. Executive C. Hussey added that work with private universities affected by policy changes continues, with the nature of the work shifting but without dramatic impact. Kelly also confirmed a robust environment for performance improvement assessments due to client financial strains and no significant shift in the use of performance-based fees. He concluded that average project size and duration have been increasing, driven by client complexity and the integration of multiple Huron capabilities.

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CEO John Wasson acknowledged that procurement staff turnover is a risk but affirmed his expectation that Q3 will still be a seasonally strong sales quarter. On commercial energy, Wasson characterized the electricity demand growth from data centers as "unprecedented" and a "ten to twenty year challenge." He stated this will require an "all of the above" approach to energy solutions, including renewables, natural gas, and energy efficiency, creating enormous and sustained opportunities for ICF.

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Executive John Wasson explained that commercial energy clients are increasingly adopting a broader suite of services like flexible load management and electrification, which are scaling from successful pilots. He affirmed a positive growth outlook for the disaster recovery business, driven by a strong pipeline. Wasson also stated that the energy business is an integrated set of capabilities sold across federal, state, and commercial clients, and the company sees value in this integrated portfolio.

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Executive John Wasson explained that programmatic impacts would likely be proportional to the revenue mix across civilian agencies, though he noted IT and domain work often serve different client leaders within the same agency. He does not expect federal staff cuts at FEMA to adversely impact ICF's state and local disaster recovery business. Wasson also stated the company will leverage its diversified portfolio to manage staff, while Executive Barry Broadus added that the goal is to maintain margins by managing the cost structure.

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CEO John Wasson described the rising utility demand as a 'once in 100-year trend' that will create long-term opportunities for ICF's advisory and implementation services for decades. CFO Barry Broadus confirmed the new, lower tax rate of approximately 21% is expected to be sustainable for the next couple of years due to optimization strategies. Both executives affirmed that the profitable shift towards more direct ICF labor is expected to continue, driven by the high-growth energy business.

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Chairman, President & CEO Thomas Ryan explained that future benefits will stem from the mix of insurance products sold and improved sales counselor execution, rather than favorable rate comparisons. He estimated a potential incremental benefit of a "couple of points" in growth but cautioned against expecting the large year-over-year increases seen during the transition. He also confirmed there have been no changes to preneed down payment requirements.

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CEO Thomas Ryan highlighted new initiatives focused on improving the lead pipeline and sales force retention through technology and data. He also confirmed the typical seasonal cadence for cemetery construction, with stronger deliveries in the second half of the year. CFO Eric Tanzberger added that the annual revenue recognition rate should remain stable at 95-97% and stated there are no new updates on the Funeral Rule, but the company is well-prepared for any changes.

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Executive Eric Tanzberger stated there have been no new developments on the FTC Funeral Rule but reiterated that proposed changes are not expected to materially affect the business. He noted that while labor pressure exists, it has moderated from post-COVID highs, with mid-single-digit pressure on the cemetery side. Chairman and CEO Tom Ryan added that the first baby boomers turn 80 in 2025, and he expects to see a slow, stair-step increase in service volumes over the next 3 to 5 years.

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Chairman and CEO Thomas Ryan explained that the company is transitioning to a new insurance product, which caused a temporary slowdown but will set up future growth, with contracts growing in value. He expects core funeral preneed sales to return to low to mid-single-digit growth and SCI Direct to return to mid- to high-single-digit growth in the latter half of 2025. Executive Vice President and CFO Eric Tanzberger added that the acquisition pipeline remains healthy with opportunities in major metropolitan markets. While official guidance for next year returns to the typical $75M-$125M range, he hopes to exceed it again, supported by $1.5 billion in liquidity.

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Founder, Chairman, President & CEO Patrick Dovigi stated that he does not anticipate a material recovery in C&D or industrial volumes this year due to political and tariff uncertainty. Regarding M&A, he noted that since the lion's share of GFL's deals are below the HSR threshold, a change in administration does not create a huge differentiator for their acquisition strategy.

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CEO Patrick Dovigi stated that seller behavior has not materially changed, as the waste industry is resilient in both good and uncertain economic times. He noted that while uncertainty can sometimes create incremental opportunities, the M&A pipeline and market dynamics are currently proceeding as normal.

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Executive Luke Pelosi responded that while they have seen sequential easing in cost inflation through 2024, the 2025 guide is appropriately conservative and based on current exit rates. He stated it does not assume further reductions from here, meaning if inflation eases more than expected, it could yield upside to the guide. He sees de minimis risk of inflation being materially higher than the guided range.

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CEO Patrick Dovigi noted that employee turnover is trending down towards pre-COVID levels, currently just above 20%. Regarding cross-selling, he explained that the existing 'buddy-buddy' sales system is beneficial to both business lines and he believes it would likely remain in place through a commercial agreement post-transaction, as customers are already invoiced separately.

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President & CEO Stuart Bradie identified key factors for the outlook as the conversion rate of the company's record pipeline, the flow of funding from the new defense budget, and geopolitical stability. He emphasized the long-term targets are 'floor numbers'. Regarding HomeSafe, Bradie stated that KBR was a partner in a joint venture and the company does not anticipate any negative reputational impact on its ability to win new business, citing strong and increasing customer engagement.

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CEO Jim Fish stated the landfill advantage is already manifesting and will become more acute as industry capacity gets constrained, pointing to the early 2030s as a key period. Regarding the fleet, SVP Rafael Carrasco explained that they will strategically replace leased vehicles with owned ones over time to smooth out capital spending, rather than accelerating lease payments, and will realize OpEx synergies from internal maintenance.

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Executive Rafael Carrasco and CEO Jim Fish both stated there have been no negative surprises. They highlighted the resiliency of the Stericycle network and customer base, affirming the strategic rationale of acquiring a business with a strong growth trajectory. On divestitures, Carrasco noted they are pleased with the UK and Ireland business and are currently evaluating the smaller Western Europe operations.

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EVP and CFO Devina Rankin stated that project returns are tracking closely to Investor Day models, with RNG EBITDA flow-through at the expected 75% and recycling performing as modeled. The main change has been higher capital costs, though still within the original payback period. President and CEO Jim Fish asserted that immigration is not a relevant factor for WM, as all employees are documented and paid a good wage, and he could not comment on smaller competitors.

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EVP & COO John Morris noted that retention for drivers and technicians continues to improve despite wage pressures, and that acquisitions benefit from applying the 'WM Way' playbook. SVP & Chief Sustainability Officer Tara Hemmer said the company is evaluating its next tranche of RNG projects and may partner on smaller sites, with a decision expected in 2025. EVP & CFO Devina Rankin highlighted that strong free cash flow provides flexibility for future growth investments post-Stericycle.

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COO David Kelly explained that Kforce's Pune development center complements its U.S. offerings with blended, cost-effective models focused on existing skill sets. CFO Jeffrey Hackman provided context that pre-COVID, typical Q3 sequential tech growth was around 2%. Hackman reiterated that the Workday implementation is expected to yield 100 basis points of operating margin benefit by 2027, with other initiatives also contributing to long-term profitability goals.

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COO David Kelly confirmed the Workday project is on schedule for a Q1 2026 go-live and the India center became operational in early 2025. CFO Jeff Hackman attributed higher healthcare costs to claim severity, not volume. Kelly described the firm's indirect government exposure via large system integrators as nominal (mid-single digits) and noted that performance in the financial services vertical was mixed on a client-by-client basis, making it an unreliable industry bellwether.

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CFO Jeff Hackman identified the main drivers for margin improvement as scale benefits, productivity gains from internal tools, the back-office transformation program (expected to yield ~90 basis points), and an improved mix of higher-margin solutions offerings. COO David Kelly added that the improvement in financial services is broad-based across traditional work like data, digital, and application development. He also noted that systems integrators represent less than 10% of the business and their needs are similar to other industries.

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President & CEO M. Keith Waddell explained that since financial services constitute nearly half of Protiviti's revenue, its performance mirrors the division's overall trends, including extended decision cycles. Regarding internal hiring, he stated the company believes it has unused capacity and is holding the line on adding staff, confident it can participate in an upswing without immediate hires.

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Executive M. Waddell identified less regulation, more M&A-friendly policies, and stable or lower tax rates as key drivers. Regarding Protiviti, he noted a slight uptick in M&A/IPO-related work and stated the division would be a big beneficiary of a recovery in that area. He described the financial services vertical, which is 40% of Protiviti's revenue, as 'very strong' across solutions like anti-money laundering and internal audit.

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CEO M. Waddell confirmed the government business has performed well, successfully transitioning pandemic-era projects to ongoing work without a 'cliff event'. In technology, he noted that the high-end software and applications sub-segment (driven by data, cloud, and security) is showing more strength than the operational and infrastructure side, contributing to tech's overall better relative performance.

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CEO Ted Hanson confirmed that TopLock is performing ahead of revenue and bookings expectations, with EBITDA margins in the high teens. Both Hanson and President Shiv Iyer attributed the softness in the Creative Circle business to macroeconomic cyclicality rather than AI, noting underlying stability. Regarding the federal business, Hanson expressed optimism for Q3 contract awards, while he and CFO Marie Perry projected long-term gross margins would remain in the 20-21% range despite the loss of certain high-margin contracts.

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CEO Ted Hanson clarified that commercial bookings consist of a healthy mix of renewal and new work, with renewals being a larger but stable percentage. For the Federal segment, he noted that strong bookings included both recompetes and new work, with no significant change in trends. Regarding DOGE, Hanson specified that the impact was concentrated on the Federal civilian side in traditional management consulting roles, which represent a small portion of ASGN's technical-focused federal portfolio.

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CEO Theodore Hanson clarified that federal civilian exposure is dispersed with no large client concentration and focuses on high-end IT services. He and President Randolph Blazer highlighted key growth strategies including strengthening solution capabilities, enhancing tech alliances, and focusing on key accounts. Hanson noted that Creative Circle's revenue declined in the low to mid-teens but is showing the same positive leading indicators as the broader business.

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Executive Theodore Hanson attributed the strong federal bookings to focused execution and the realization of task orders from previously won IDIQs. He declined to specify the net amount booked from the DHS contract. Regarding personnel, both Hanson and Executive Randolph Blazer emphasized the flexibility of their model, which utilizes contingent labor from their staffing business, avoiding a large, fixed bench.

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CEO Gary Burnison stated that low turnover is a negative sign, driven by an anemic labor market where people are hesitant to leave jobs. He identified monetizing the company's vast IP as the biggest wildcard for future scalability and productivity. To accelerate Digital, he mentioned focusing on a 'one firm' mindset, targeting marquee accounts, and implementing programmatic cross-selling.

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Executives Gary Burnison and Robert Rozek clarified that the 50 recent hires were a gross number, concentrated in Executive Search and Consulting, and that the firm intends to be a net hirer. The profitability pivot involves focusing on specific industries, geographies (EMEA), and marquee clients. Rozek specified that the value of consulting engagements over $2.5 million grew from approximately $3.5 million to over $12 million in a single quarter.

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SVP and CFO Shawn Mural identified the WTRS program ramp (~$125M incremental revenue) and a full half-year of the F5 program (~$50M) as the key drivers for second-half growth. President and CEO Jeremy Wensinger noted persistent demand in international markets. Both executives reiterated that while they are constantly evaluating M&A, their current focus is on patience and identifying the best options for shareholder value creation.

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SVP & CFO Shawn Mural stated that while V2X will grow in 2025, specific figures are premature as planning is ongoing, noting potential headwinds from program sunsets. He quantified INDOPACOM revenue at over $80 million for the quarter. President & CEO Jeremy Wensinger added that the Pacific Deterrence Initiative and the company's strong regional presence create significant opportunities. Wensinger also highlighted expanding opportunities for assured communications in Europe, the Middle East, and INDOPACOM, driven by evolving geopolitical situations.

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SVP and CFO Shawn Mural explained that the higher revenue is driven by lower-margin contingency support work, which restrains profit metric growth. He anticipates a full-year book-to-bill of around 1.0, weighted to the second half. He confirmed that while some programs are winding down, new wins like F-5 will ramp up. He also noted the F-5 protest was resolved and there are no other material protests or near-term recompetes.

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Co-CEO Eric Gerstenberg affirmed that the company will continue to use pricing initiatives to outpace any increased labor costs. Co-CEO Mike Battles added that voluntary turnover for direct labor is at a three-year low, which supports their ability to price effectively and maintain strong customer service.

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Co-CEO Eric Gerstenberg affirmed that the company will continue to use pricing initiatives to outpace any increased labor costs. Co-CEO Mike Battles added that voluntary turnover for direct labor is at a three-year low, which supports their ability to be aggressive on pricing and service, creating a 'virtuous cycle.'

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Co-CEO Eric Gerstenberg stated they do not anticipate any material effect from a change in administration, as foundational environmental regulations are long-standing and not expected to be rolled back. He described demand as 'very strong across the board,' with containerized waste collection volumes up high-single-digits to start 2025 and a stronger outlook for refinery turnarounds.

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Co-CEO Michael Battles suggested the oversupply is an industry-wide issue, citing actions by other major refinery operators. Co-CEO Eric Gerstenberg detailed that new capacity from their Kimball facility and another unit will add 140,000-160,000 tons of capacity to the market over time. He also stated that customer churn in the ES segment is 'very low' and that price increases are sticking due to robust demand and the value of their service network.

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CFO Jack McGinnis stated that the capital allocation strategy is unchanged, prioritizing share repurchases and internal investment in growth markets like Italy and Japan. He noted M&A is more likely after a market inflection, with a focus on Experis (IT services) and Talent Solutions (RPO). CEO Jonas Prising added that upskilling demand is focused on augmenting human capabilities to work with AI, with specific needs in full-stack development, cybersecurity, and data analytics, leveraging their Experis Academy and Manpower MyPath programs.

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Chief Executive Officer Jonas Prising highlighted a 5-pillar European plan focusing on areas like developing a skilled workforce, which he sees as a direct opportunity. Regarding Germany, he stated that the market remains in a 'big slump' and that while progress has been made, the company still has a 'long way to go' and 'more work to do,' implying that both further actions and improved demand are needed.

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CEO Jonas Prising stated that a recovery is a matter of when, not if, and highlighted that key sectors for staffing, like manufacturing, have been weak and thus have significant rebound potential. He noted that within U.S. Experis, large enterprise clients are still pausing projects, with demand shifting to smaller-scale AI and cyber initiatives, while the convenience side is also facing headwinds.

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CEO Mark Eubanks clarified that new business, from unvended or competitive accounts, constitutes the majority of AMS/DRS growth, with legacy conversions being less than a third. He noted that volatility in precious metals markets, driven by global factors, is beneficial for their global services business due to its large, fixed-cost infrastructure. CFO Kurt McMaken and CEO Mark Eubanks both stated that the discontinuation of the penny is an immaterial event for the company's operations.

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Executive Catherine Corrigan detailed that the energy business is robust, with proactive risk work for utilities and reactive failure analysis for oil & gas and renewables. Executive Richard Schlenker quantified the chemicals business as low-double-digits of revenue, with Q4 growth in the low-to-mid-teens, driven by a broad-based return of long-term litigation work. Regarding AI, Corrigan explained that while it presents opportunities in areas like advanced driver assistance systems, any AI-based data used in litigation will face the same high level of court scrutiny as any other evidence, a complex environment where Exponent excels.

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