Net Revenues

Q3 2025

$1.875B–$1.925B "

$1.985B–$2.035B "

raised

Organic Revenue Growth (%)

Q3 2025

3%–6% "

5%–7% "

raised

Reported Net Revenue Growth (%)

Q3 2025

no prior guidance

9%–11% "

no prior guidance

Adjusted EBITDA

Q3 2025

$260M–$270M "

$270M–$280M "

raised

Adjusted EBITDA Growth (%)

Q3 2025

13%–17% "

9%–13% (fixed currency basis) "

lowered

Adjusted Corporate Expenses

Q3 2025

$30M–$35M per quarter "

$30–$35 "

no change

Net Revenues

FY 2025

$7.4B–$7.6B "

$7.65B–$7.85B "

raised

Organic Growth in Net Revenues (%)

FY 2025

2%–5% "

4%–7% "

raised

Adjusted EBITDA

FY 2025

$985M–$1.035B "

$1.05B–$1.145B "

raised

Adjusted EBITDA Growth (%)

FY 2025

over 10% "

15% at midpoint "

raised

Interest Expense

FY 2025

$145M "

$145 "

no change

Depreciation

FY 2025

$90M "

$90 "

no change

Capital Expenditures

FY 2025

$100M "

$100 "

no change

Adjusted Effective Tax Rate (%)

FY 2025

23% "

23% "

no change

Adjusted Diluted Weighted Average Share Count

FY 2025

282 million "

424 "

raised

Adjusted Corporate Expenses

FY 2025

no prior guidance

$30–$35 "

no prior guidance

Revenue and Backlog Growth

Q1 2025 saw moderate overall revenue growth with organic improvements and a steadily building backlog ( " " " ). Q4 2024 reported modest full‐year and quarterly revenue increases, supported by organic gains and a growing backlog ( " " " ). Q3 2024 discussed slight revenue increases with a healthy but modest backlog ( " " ).

Q2 2025 reported strong overall revenue growth (15% increase) with safety and specialty segments delivering robust performance. A record backlog exceeding $4 billion and double-digit organic backlog growth were highlighted ( " " " " ).

There is a clear improvement in revenue performance and backlog strength in Q2 2025 compared to previous periods, indicating bullish momentum and enhanced growth dynamics.

Recurring Revenue from Inspection, Service, and Monitoring

In Q1 2025, recurring revenue from these services was emphasized with a significant revenue mix and strong organic growth driven by statutory demand ( " " ). Q4 2024 noted an increased mix from 52% to 54% with consistent double-digit inspection growth ( " " ). Q3 2024 reiterated the strategic importance of inspection-first revenues and their higher gross margins ( " " " ).

Q2 2025 continued to underscore the strategic importance of these recurring streams, noting sustained double-digit inspection growth, pricing improvements, and a strong backlog in this segment ( " " " " " ).

The focus on recurring inspection, service, and monitoring revenues remains consistently positive across periods, with Q2 2025 showing a bolstered strategic emphasis and consistent performance.

Margin Expansion and EBITDA Improvement

Q1 2025 highlighted moderate margin improvement and EBITDA growth driven by pricing initiatives and disciplined project selection ( " " ). Q4 2024 described significant margin expansion (e.g. 140bps EBITDA margin increase) and improved adjusted gross margins ( " " ). Q3 2024 reported enhanced margins from an improved revenue mix and cost efficiencies despite some pressure in project work ( " " ).

Q2 2025 reported continued margin expansion in the Safety Services segment with an 80bps increase in segment earnings margin and strong adjusted EBITDA growth, though Specialty Services still lag due to cost pressures ( " " " ).

Improvements continue in margin expansion and EBITDA performance, especially in higher-margin segments, while Specialty Services remain under pressure. Overall sentiment is positive though challenges persist in select areas.

M&A Strategy, Acquisition Pipeline, and Integration Risks

Q1 2025 emphasized disciplined, margin‐accretive bolt‐on acquisitions with a robust pipeline and successful integration track record (e.g. the Chubb acquisition) ( " " " ). Q4 2024 detailed a steady M&A spend of about $250 million and a focus on key verticals, along with measured integration processes ( " " ). Q3 2024 reiterated the importance of targeted bolt-on acquisitions with a strong pipeline and positive integration outcomes (e.g. Elevated integration) ( " " " ).

Q2 2025 noted the completion of six acquisitions (including a second elevator business) and described a robust acquisition pipeline with active monitoring of integration risks, particularly in international markets ( " " " ).

The M&A strategy remains a consistent growth lever with disciplined execution and an expanding pipeline, showing steady and positive momentum across periods.

Tariff Exposure and Material Cost Volatility

Q1 2025 discussed that 15–20% of revenue is tariff-exposed and noted proactive measures like contract language and material pre-purchasing to manage cost volatility ( " " " ). Q4 2024 highlighted modest impacts on steel pipe prices and the use of real-time pricing strategies to counter material cost fluctuations ( " " ). Q3 2024 did not address this topic directly.

Q2 2025 acknowledged rising material costs affecting margins in Specialty Services and noted ongoing challenges with tariff exposure impacting cost escalation, even as pricing improvements help mitigate some effects ( " " " ).

Tariff and material cost challenges have been a persistent headwind. While earlier periods emphasized mitigation strategies, Q2 2025 reinforces that these factors remain a challenge despite efforts to pass costs on through pricing enhancements.

Weather Volatility and Project Delays

Q1 2025 mentioned weather volatility causing a loss of roughly 5 operating days and leading to mid-single-digit organic revenue impacts; regulatory delays in rural broadband were also noted ( " " ). Q4 2024 described permitting and right-of-way issues delaying projects, with seasonal factors impacting progress ( " " " ). Q3 2024 reported delays due to hurricane impacts and telecommunications project challenges owing to permitting and federal program delays ( " " " " ).

Q2 2025 discussed weather volatility impacting field leader deployment and causing project delays, which in turn affected Specialty Services’ gross margins, though the challenges are managed as part of operational planning ( " " ).

Weather and project delays remain a recurring challenge. While similar issues were highlighted in prior periods, Q2 2025 continues to note these disruptions, indicating a persistent area of risk with only incremental operational improvements.

Labor Shortages and Operational Execution Challenges

Q1 2025 briefly noted wage inflation and the company’s strong visibility into wage increases, particularly due to union agreements, helping to incorporate these costs into pricing ( " ). Q3 and Q4 2024 did not mention these topics.

Q2 2025 mentioned labor availability as a challenge affecting project commitments, although it was not as prominently featured as pricing or material cost issues ( " ).

Labor issues appear as an emerging but relatively minor concern in Q2 2025. Compared to the more detailed previous discussion on wage inflation in Q1 2025, operational execution challenges remain manageable but warrant ongoing attention.

Macroeconomic and Recession Risks

Q1 2025 addressed recession risks by emphasizing a highly variable (70%+) cost structure and historical resilience (e.g. 2020 performance) ( " " ). Q4 2024 reiterated resilience through a cost structure that is 70–75% variable and the focus on recurring services to offset economic shocks ( " ). Q3 2024 did not include specific commentary on these topics.

Q2 2025 did not mention macroeconomic or recession risks.

There is a reduced emphasis on macroeconomic and recession risks in Q2 2025 relative to Q1 and Q4 2024, suggesting a quieter outlook or a strategic decision to focus on other operational areas in the current period.

Regulatory and Government-related Project Delays

Q1 2025 mentioned rural broadband program delays as “choppy” due to regulatory processes ( " ). Q4 2024 detailed specific government-related project delays including permitting and right-of-way complications, and Q3 2024 described delays in federal rural broadband and utility projects due to administrative challenges ( " " " ).

Q2 2025 did not mention any regulatory or government-related project delays.

With no mention of regulatory or government delays in Q2 2025, the focus appears to have shifted away from these issues, suggesting that earlier challenges may have been resolved or are being deprioritized in current discussions.

Specialty Services Margin Pressure

Q1 2025 reported margin declines in Specialty Services (150–240bps decrease) due to lower fixed cost absorption ( " " ). Q4 2024 cited an 80bps decline with revenue declines driven by divestitures and exited customers ( " " ). Q3 2024 noted revenue drops and a decrease in EBITDA margins due to lower-than-expected near-term revenues ( " " ).

Q2 2025 noted a 350bps decline in Specialty Services adjusted gross margin, attributed to increased project starts, rising material costs, and weather impacts, though sequential improvements are expected ( " " " ).

Margin pressure in Specialty Services remains a consistent concern across periods. Q2 2025 indicates a more pronounced margin decline, underscoring the persistent challenges in this segment despite efforts toward disciplined project and customer selection.

Flexible Cost Structure and Adaptive Pricing

Q1 2025 emphasized a flexible cost structure with over 70% variable costs, which allowed rapid adjustment during economic shocks, and highlighted adaptive pricing to manage wage inflation ( " " ). Q4 2024 reinforced these points with discussion of a 70–75% variable cost model and real-time pricing strategies to manage material cost fluctuations ( " " ). Q3 2024 did not explicitly mention these topics.

Q2 2025 did not explicitly discuss either a flexible cost structure or adaptive pricing.

These themes have seen less explicit mention in Q2 2025 compared to earlier periods, suggesting that while they remain important, the current discussion has shifted focus to operational performance and margin drivers.

Telecom Project Delays

Q1 2025 noted that telecom projects via the rural broadband program were “choppy” and experiencing some delays ( " ). Q4 2024 discussed telecom delays related to government projects and permitting challenges ( " ). Q3 2024 described delays in telecom projects due to administrative and funding issues with the federal rural broadband program ( " " ).

Q2 2025 did not mention any telecom project delays.

Telecom project delays are less of a focus in Q2 2025 compared to prior periods, indicating that either these issues have been largely resolved or they are currently being overshadowed by other operational themes.