Total Revenues

+3.3% (from $6.533B in Q1 2024 to $6.756B in Q1 2025)

Total Revenues increased primarily due to continued contributions from acquisitions and pricing improvements. This builds on resilient underlying demand seen in the prior period, despite adverse weather conditions that had previously partially offset growth. " "

Product Revenues

+4.5% (growing to $5.612B in Q1 2025)

Product Revenues rose by 4.5% owing to strong pricing momentum and robust underlying demand. This growth continued the trend from earlier periods where acquisitions and operational improvements drove revenue, reflecting a stronger product mix compared to service line performance. " "

Service Revenues

–1.8% (declined from $1,165M to $1,144M in Q1)

Service Revenues experienced a slight decline likely due to subdued volume from adverse weather conditions that affected operations, despite the overall moderate revenue growth observed previously. This contrasts with the product line, which benefited more from acquisitions and pricing adjustments. " "

Operating Income

–36% (fell from $28M in Q1 2024 to $18M in Q1 2025)

Operating Income was significantly compressed as costs increased relative to revenue. Despite higher revenues, rising operational and SG&A costs, together with pressure on margins seen in the previous period, led to a 36% drop in operating income. " "

Net Income

Swing from +$114M in Q1 2024 to –$98M in Q1 2025

Net Income deteriorated sharply due to a combination of decreased operating performance, higher interest expense, and increased non-operating costs such as greater losses from equity-method investments. This marks a stark change from the previous period's profitability, highlighting weakness in managing overall costs despite top-line growth. " "

Long‑term Debt

+47% (from $9.68B in Q1 2024 to $14.213B in Q1 2025)

The substantial increase in long‑term debt reflects new debt issuances to fund acquisitions and capital expenditures. This jump builds on previous period strategies where the company leveraged debt for growth, indicating an aggressive financing approach despite higher leverage compared to prior quarters. " "

Current Portion of Long‑term Debt

–51% (from $2.992B in Q1 2024 to $1.458B in Q1 2025)

The marked decline is likely due to refinancing and reclassification of short‑term obligations into long‑term debt and repayments of current maturities. This shift from the previous period’s structure indicates the company’s efforts to manage liquidity risk and extend maturities. " "

Cash and Cash Equivalents

+1.3% (from $3,308M in Q1 2024 to $3,352M in Q1 2025)

Cash levels remained stable with a slight increase, reflecting a balance between strong financing inflows (from new debt issuances and share repurchases) and cash outflows from operating and investing activities. This continuity from the prior period shows effective liquidity management despite challenging operating conditions. " "

Adjusted EBITDA

FY 2025

Expected to be between $7.3 billion and $7.7 billion "

Expected to be between $7.3 billion and $7.7 billion " "

no change

Net Income

FY 2025

Expected to be between $3.7 billion and $4.1 billion "

Expected to be between $3.7 billion and $4.1 billion "

no change

Diluted EPS

FY 2025

Expected to be between $5.34 and $5.80 "

Expected to be between $5.34 and $5.80 "

no change

Robust Order Backlog & Pricing Momentum

In Q2–Q4 2024, executives consistently discussed strong order backlogs with a visible 6–9 month work horizon and robust pricing momentum that drove low‐single digit volume growth and improving margins " " " "

Q1 2025 reinforced these themes with continued emphasis on increasing work volumes, improving margins, and a steady 6–9 month outlook underpinning future performance "

Consistent positive theme – The focus on robust backlogs and pricing remains a mainstay, reflecting stable sentiment and growth expectations.

Consistent Margin Expansion & Operational Excellence

In Q2–Q4 2024, discussions highlighted a long track record of margin expansion, strong cost control, and operational efficiencies—with some reliance on one‑time items like land sales noted as contributors " " "

Q1 2025 maintained the narrative of margin expansion and operational excellence while signaling a normalization in non‑recurring asset sales, with management exercising caution over one‑time adjustments " "

Stable with emerging caution – Core operational strengths persist, but there is a noted shift toward normalizing non‑recurring gains.

M&A Pipeline and Disciplined Capital Allocation coupled with Integration Risks

In Q2–Q4 2024, executives detailed an active M&A pipeline, disciplined capital allocation, and efficient integration processes that contributed predictably to growth " " " "

Q1 2025 reinforced a robust M&A pipeline by completing eight bolt‑on deals and emphasized disciplined capital allocation while acknowledging new execution concerns related to integration risks " " "

Recurring growth driver with slight new execution concerns – M&A continues as a key growth lever, though integration challenges are drawing increased attention.

Inflationary Pressures & Rising Input Costs

Across Q2–Q4 2024, despite operating in a mid‑single digit inflationary environment affecting labor, raw materials, and subcontractor costs, strong pricing momentum and cost controls helped offset the impact " " "

In Q1 2025, the company reiterated mid‑single digit inflation pressures and maintained that continued pricing momentum is key to mitigating rising input costs "

Persistent risk factor – Inflation remains a consistent challenge, with management’s pricing discipline continuing to serve as a mitigating tool.

Infrastructure Spending & Government Funding Dynamics

During Q2–Q4 2024, executives underscored the robust pipeline of government funding—highlighting that only a fraction of IIJA funds had been deployed and noting strong state and international programs supported by bipartisan dynamics " " " "

Q1 2025 continued this narrative, emphasizing that only about one‑third of IIJA highway funds have been deployed while also citing supportive international recovery trends "

Steady opportunity driver – Infrastructure spending remains a major positive by providing a long‑term runway, with supportive government funding reducing earlier uncertainties.

Macroeconomic and FX Uncertainty

Q4 2024 mentioned currency headwinds and macroeconomic assumptions, while Q2 and Q3 2024 either briefly touched on or did not emphasize these factors " " "

Q1 2025 newly emphasized both macroeconomic volatility and FX uncertainty as significant risk factors, though confidence was expressed in management’s ability to navigate them " "

Newly emphasized risk – The current period brings greater focus on macroeconomic and FX risks, marking an evolution in risk assessment.

Weather-Related and Volume Risks

In Q2–Q4 2024, adverse weather and its impact on volumes were a recurring theme; weather-related volume declines were largely offset by pricing adjustments, seasonal operating strategies, and strong underlying demand " " "

Q1 2025 again noted weather-related challenges impacting certain regions but highlighted seasonality, resilience via backlogs, and a rebound as weather normalized " " "

Persistent external challenge – Weather-related risks continue to affect operations but are managed through seasonality and operational flexibility.

Diminished Emphasis on Non-Recurring Asset Sales and U.S. Federal Funding Political Uncertainties

Q4 2024 acknowledged the role of non‑recurring asset (land) sales and touched on political uncertainties around U.S. federal funding; these topics were less prominent or not mentioned in Q2–Q3 2024 " "

Q1 2025 downplayed non‑recurring asset contributions (with land sales normalized) and shifted focus to the stability provided by continued IIJA funding, reducing prior concerns over political uncertainties " " "

Reduced emphasis – There is a deliberate move away from reliance on non‑recurring asset sales and political funding uncertainties, reflecting a more normalized operating environment.