TIC

Welcome everyone joining today's TIC Solutions 1st Quarter 2026 Earnings Call. At this time, all participants are in listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded and we are standing by should you need any assistance. It is now my pleasure to turn the meeting over to Andrew Shen with Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone, thank you for joining the call. Joining me this morning is Ben Heraud, our Chief Executive Officer, Kristin Schultes, our Chief Financial Officer, and Robert A.E. Franklin, Executive Chairman. I would now like to remind you that certain statements in the company's earnings press release and on this call are forward-looking statements that are based on expectations, intentions, and projections regarding the company's future performance, anticipated events or trends, and other matters that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In our press release and filings with the SEC, we detailed material risks that may cause our future results to differ from our expectations.

Our statements are as of today, May 6th, 2026, and we undertake no obligation to update any forward-looking statements we may make except as required by law. As a reminder, we have posted a presentation detailing our first quarter financial performance on the investor relations page of our website at ticsolutions.com. Our comments today will also include non-GAAP financial measures and other key operating metrics. The required reconciliations of non-GAAP financial metrics can be found in our press release and in our presentation. For the purposes of this call, we refer to our segments as Inspection and Mitigation or I&M, Consulting Engineering or CE, and Geospatial or Geo. Any reference to combined results reflects a non-GAAP combined view of legacy Acuren and legacy NV5, where applicable, for period-to-period comparability. More details on the calculation of the combined results are included in the presentation.

It's now my pleasure to turn the call over to Ben.

Thank you, Andrew, good morning, everyone. Before I begin, I want to say how proud I am to lead this talented organization. Over the past several months, I've seen strong support from our leaders across the business and from the field and technical professionals who serve our clients every day. We have started 2026 with healthy momentum across the business. First quarter results reflect the strength of our combined platform, the resilience of our recurring and non-discretionary services, and the demand drivers that support TIC Solutions. This includes aging infrastructure, increasing energy demand, increasing data consumption, and the digitization of the physical world. We believe these megatrends will continue to drive demand across our business and expand the need for technical services that enable us to turn data into solutions for our clients.

These tailwinds inform our strategic priorities, winning in essential high-demand end markets and geographies, expanding our role across the asset lifecycle and client relationships, and driving higher value growth through technical differentiation and disciplined capital allocation. These priorities are supported by the breadth of our business. Through Consulting Engineering, we help clients plan, design, and commission critical assets and infrastructure. Through Inspection and Mitigation, we help clients maintain asset integrity, reduce downtime, and address reliability needs. Through Geospatial, we help clients capture, process, and interpret asset and location data at scale. Together, these capabilities position TIC Solutions as a lifecycle partner rather than a point solution provider. Our 2026 operating objectives are directly aligned with these strategic priorities. First, to win in essential high demand end markets and geographies, we are focused on driving organic growth across the platform.

This means expanding scope and market share and pursuing attractive opportunities to sell additional capabilities. Second, to expand our role across the asset lifecycle and client relationships, we are strengthening organizational alignment and cross-segment collaboration. That includes improving how we manage accounts, deploy resources, support our field and technical teams, and bring our capabilities together for our clients. Third, to drive higher value growth, we are focused on margin expansion and disciplined capital allocation. That means maintaining pricing discipline, improving utilization, managing costs, enhancing service mix, and directing capital towards the highest value opportunities. In the quarter, we saw growth across transportation, infrastructure, utilities, manufacturing, midstream energy, and data center end markets. We remain focused on converting these trends into sustainable, attractive, and profitable growth. With that framework in mind, I'll walk through the performance across our segments and highlight where we're seeing progress against these priorities.

Consulting Engineering delivered strong performance in the quarter, with revenue increasing 9.5% YoY. We experienced broad-based revenue growth, offsetting pressure from timing in LNG engineering and power delivery. Adjusted gross profit increased 11% YoY, and adjusted gross margin expanded 60 basis points, reflecting strong execution, improving mix, and continued demand for high-value technical services. Data centers were the largest driver of growth in the first quarter, supported by hyperscaler and mission-critical infrastructure activity across both domestic and international operations. AI, cloud adoption, and enterprise digitization continue to increase demand for data consumption storage and mission-critical uptime. Our focus is on capturing that demand where we have the right capabilities, client relationships, and return profile. Consulting Engineering also saw broad-based growth across several core capabilities, including civil program management, geotechnical and materials testing, and buildings.

Overall, Consulting Engineering's first quarter performance demonstrates the value of technical capabilities we offer across infrastructure and the built environment. The segment continues to benefit from durable demand trends tied to aging infrastructure investment, and growth in key regional markets. Our performance also shows the operating leverage that can come from better utilization, focused execution, and delivery of higher value services. Geospatial also performed well, growing 4.5%, supported by strong commercial and utility demand, healthy fleet utilization, and continued interest in Geospatial digital transformation solutions. The team continues to pursue technically complex work across multiple markets and geographies. Recent examples include deep sea hydrographic survey work tied to rare earth minerals and advanced lidar and imagery opportunities internationally. These demonstrate the breadth of our capabilities and the ability to scale and apply specialized technical expertise across borders.

We are also advancing our GeoAI efforts with a focus on improving processing efficiency, automating workflows, and expanding higher value analytics. We look forward to discussing these capabilities in more detail at our Investor Day, including how they support our broader Geospatial platform over time. Quarter end total backlog within Consulting Engineering and Geospatial was $1.12 billion, up approximately 14% from $983 million at the prior year quarter end. This backlog expansion, combined with a solid commercial execution, supports our confidence in continued momentum and near-term outlook. Inspection and Mitigation delivered a steady result with revenue essentially flat year-over-year. While results were below our long-term expectations for the segment, the team remained focused on margin integrity, disciplined staffing, and prioritizing higher quality, higher margin opportunities.

In the first quarter, our call-out and outage activity increased moderately, helping offset lower sustaining capital work and continued pressure in certain regions. Performance was stronger in areas such as industrial rope access, containment, and in-lab services, and we're focused on replicating that execution more consistently across the I&M footprint through disciplined opportunity selection, stronger local accountability, and a higher mix of high-value technical services. Inspection and Mitigation demand continues to vary by end market and geography. Customer focus on throughput, uptime, and critical integrity work remains intact, but broader market uncertainty is creating more variability in customer decisions around planned outages and scheduled maintenance, including timing, scope, and duration. In the quarter, certain planned outage work shifted from the second quarter to the third quarter, and some work was resized as customers remained selective on near-term spending.

Performance pressure remains concentrated in the Gulf Coast, where LNG construction timing and several 2025 site losses continue to weigh on year-on-year growth. We are managing through these dynamics while expanding in areas we have a proven track record and pursuing new white space opportunities. We continue to execute on the operating model changes we outlined last quarter, with a focus on regional accountability, cost control, and more consistent opportunity sourcing. As discussed on the previous call, we have strengthened regional leadership in the segment and are adding both new and returning leaders in key areas to drive operational efficiency and commercial focus. As we move through the year, we expect I&M performance to benefit from normal seasonality, outage activity, and stronger conversion of commercial opportunities while remaining disciplined on margin and work selection. To recap, Consulting Engineering, and Geospatial continue to benefit from strong demand and differentiated capabilities.

While Inspection and Mitigation remains focused on improving execution, accountability, pricing, and resource deployment. Across the platform, integration is improving how we manage accounts, expand services, and control costs. Together, these actions position us to deliver durable growth, improved profitability, and stronger cash flow over time. We're looking forward to hosting our Investor Day on Tuesday, May 19th in New York City. We plan to discuss the next phase of the TIC Solutions story, including our long-term growth framework, margin expansion plans, capital allocation priorities, and how stronger execution can create additional value across the business. With that, I will turn the call over to Kristin to review the financial results for the first quarter, provide an update on integration, and offer more detail on our outlook.

Thank you, Ben, and good morning, everyone. In the first quarter, total revenue was $488 million. On a combined basis, total revenue grew 4.3% YoY or 3.1% in constant currency. Organic growth on a combined basis was 2.2%. Adjusted gross profit for the quarter was $180 million, up 3.8% from the combined adjusted gross profit of $174 million in the prior year period, driven primarily by revenue growth and margin expansion in Consulting Engineering. Adjusted gross margin was 36.9%, roughly flat compared with the combined margin of 37.1% in the prior year period as Consulting Engineering margin expansion was offset by mix and margin pressure in Inspection and Mitigation.

Inspection and Mitigation contributed first quarter revenue of $235 million, up 0.3%, driven by increased call-out and outage work and offset by lower sustaining capital activity. Inspection and Mitigation's adjusted gross margin was 24.4% for the quarter, compared with 25.2% in the prior year period, reflecting the impact of mix from less sustaining capital work. Consulting Engineering contributed first quarter revenue of $187 million, up 9.5%. Consulting Engineering's adjusted gross margin was 47.6%, up 60 basis points from 47.0% in the prior year period, driven by strength in infrastructure and building design and commissioning. Geospatial contributed first quarter revenue of $66 million, up 4.5%, driven by healthy demand from utility clients.

Geospatial's adjusted gross margin was 51.0% compared with 54.2% in the prior year period, impacted by a pilot project that carries a higher proportion of subcontractor costs and a lower gross margin profile. We believe this work is highly strategic and supports higher value growth over time with a key client. Adjusted SG&A for the quarter was $123 million or 25.2% of revenue. This continues to be a critical focus area as we work to drive SG&A leverage through synergy realization as well as cost discipline in the business. Adjusted EBITDA was $57.7 million compared to combined Adjusted EBITDA of $55.6 million in the prior year period, representing growth in line with the increase in combined revenue.

Adjusted EBITDA margin was 11.8% compared with 11.9% a year ago on a combined basis, reflecting a path towards improved operating leverage. From a cash flow perspective for the quarter, operating cash flow was $10 million and capital expenditures were $6 million. The operating cash flow reflects the expected seasonality of the business, which includes greater working capital intensity in the first half of the year. Moving now to our balance sheet and capital resources. As of March 31st, 2026, we had total liquidity of $537 million, including $427 million of cash and $111 million of available capacity under our revolving credit facility. Total term loan debt was $1.6 billion. Our capital allocation priorities remain unchanged.

We remain focused on investing organically in the business and using free cash flow to provide additional flexibility for disciplined acquisitions while achieving lower leverage over time. Turning to integration, we continue to make great progress capturing the benefits and cost synergies associated with the NV5 combination. Importantly, we are ahead of schedule on synergy actions with approximately $17 million of the $25 million cost program now actioned on an annualized run rate basis. We now expect realized savings in 2026 to be roughly $15 million, modestly above the $12.5 million we discussed in previous quarters. These actions are intended to create lasting efficiencies in the combined cost structure and support margin expansion as our business scales. Turning to our unchanged outlook.

For the second quarter, our guidance reflects revenue of approximately $570 million-$582 million and Adjusted EBITDA of approximately $90 million-$96 million. At the midpoint, this implies an Adjusted EBITDA margin of approximately 16.1% for the second quarter, which would represent margin expansion year-over-year. We are reaffirming our previously issued full year 2026 guidance of $2.15 billion-$2.25 billion of revenue and $330 million-$355 million of Adjusted EBITDA. At the midpoint, our guidance implies approximately 4% revenue growth and 10% growth in Adjusted EBITDA against our 2025 combined results with an Adjusted EBITDA margin of approximately 15.6% at the midpoint.

By segment, on a combined basis, we expect CE and geo growth to outpace growth in I&M for the full year. In Inspection and Mitigation, our outlook assumes a back half weighting supported by normal seasonality and the anticipated timing of certain outage and sustaining capital work. For 2026, we anticipate net interest expense of $95 million-$105 million, cash taxes in the range of $25 million-$35 million, and capital expenditures of $55 million-$65 million. We typically see a working capital build as activity ramps through the first half of the year, followed by stronger cash conversion in the second half as collections catch up with revenue. We manage and evaluate free cash flow primarily on a full year basis, and we continue to expect healthy free cash flow generation over the full year. With that, I'll turn the call back to Ben.

Thank you, Kristin. The first quarter reinforced the resilience of our business model and the benefits of our diversified platform. As discussed at the start of the call, the trends around aging infrastructure, increasing energy demand, increasing data consumption, and the digitization of the physical world continue to support demand for the essential technical services we provide. As we move through 2026, we remain focused on the strategic priorities that define how we create value, winning in essential high demand in markets and geographies, expanding our role across the asset lifecycle and client relationships, and driving higher value growth through technical differentiation and disciplined capital allocation. We are seeing progress against our top priorities while recognizing there is more work ahead. I want to close by acknowledging the strength of this organization and the leaders across our business.

TIC Solutions has a significant long-term opportunity supported by a highly engaged team, strong cultural alignment, and essential technical capabilities across resilient end markets. Our teams have continued to execute with discipline and focus while staying centered on our core purpose of delivering for our clients every day. With that, operator, we're ready to open the line for questions.

Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question. We'll take our first question from Chris Moore with CJS Securities. Your line is open.

Hey, good morning. Thanks for taking a couple. You exited some lower margin customers contracts in Inspection and Mitigation in 2025. Just trying to get a sense if that process is still ongoing in 2026.

Yeah, we're still maintaining discipline around, you know, our pricing and approach to the market. You know, we're sort of seeing price increases amongst a number of our contracts and, you know, we will continue to stay disciplined on our pricing model.

Got it.

Look, just to point out, no additional lost sites since last year.

Got it. Thank you. In terms of the 4% organic growth that you're targeting in 2026, maybe just from a big picture perspective, can you walk through the segments or sub-segments and kinda rank those where you have the most visibility for the year and perhaps those where visibility is a little bit more limited at this point in time?

Yeah, sure. I'll take that. Good morning, Chris. If we look at our full year guidance at that midpoint, I think we haven't provided segment level guidance, but I would tell you that with the visibility that we have, that our outlook for growth for Consulting Engineering and Geospatial is higher than I&M. If we look at, you know, what drives confidence in our ability to deliver that, we have backlog within CE and Geo, which provides a lot of visibility. As we disclosed, that our backlog is up significantly. Also, you know, just with our internal flash and forecasting process within the I&M business, we also have good visibility. Inherently, things are moving, but we have good visibility to kind of what's to come.

This is our high conviction number and feel good about our ability to deliver in 2026.

Terrific. Very helpful. This one may be more for Investor Day, but just last one. Geospatial growth has bounced around a little bit, 4.5% this quarter. Still sounds like lots of opportunities there. Just trying to get a sense for what a reasonable expectation is for a normalized annual growth rate for Geospatial.

I think we'll continue to see good growth within it. We're pleased with the performance of Geospatial. You know, we did have a little bit of margin pressure from that one project we pointed out earlier, but for the most part, you know, there's a lot of digitization required around the world, and we have a very scalable platform that we're excited about expanding and growing.

Chris, you'll have an opportunity to meet the leader of our Geospatial business in a few weeks at our Investor Day, and he'll speak more to the long-term growth outlook of the segment. I think what you're seeing in mid-single digits is the right way to think about it.

Terrific. I appreciate it. I'll jump back in line. Thanks, guys.

Thank you.

Thank you.

We'll move next to Tomohiko Sano with J.P. Morgan. Your line is open.

Hi. Good morning, everyone.

Morning.

Hey, Tomo.

Morning. I would like to ask about the I&M business. Could you quantify the revenue and margin impact of each key headwind you talk about? Excluding these, like what do you see as the segment's underlying growth and margin potential, and what is your outlook for the recovery, and are there any specific KPIs you are targeting in this business? Thank you.

Yeah, look, we're tracking a number of KPIs, I would say, you know, we'd point to the Gulf as being an area of focus around improvement. You know, we're seeing month-on-month improvement there. With the leadership that we put in place earlier in the year, we're now just seeing a very aggressive commercial approach to that business. We talked earlier on the call about some shift with some outage work into Q3. That was known and sort of expected. Some real positive signs also, you know, around service line expansion. Our rope access group's up 9% and our lab work is up 20%. Also good indications of the business and its potential growth later in the year.

Thank you, Ben. Follow-up on data centers in CE business. What is your outlook for growth in data centers? What proportions of total revenue do you expect, like these segments to represent in 2026 and 2027?

Yeah. Use round numbers around 5%. You know, we continue to see very, very nice growth within that business. We remain very excited about it. The U.S. business is starting to really the efforts that we've put in over the last two years are really starting to pay dividends, and that is growing at a really nice clip now. It's, you know, trailing 12 months was around $80 million in revenue, backlogs of a similar amount. We have a very strong line of sight into a strong year ahead.

All right. That's all. Thank you very much.

Thanks so much.

We'll move next to Kathryn Thompson with Thompson Research Group. Your line is open.

Hi. Thank you for taking my questions. just first, big picture, you're approaching in June, the first full year of NV5 and as part of TIC Solutions. how is the integration as we approach the year mark? What has worked and what are areas for continued growth?

Yeah, I'll just sort of start with a high level and then let Kristin get into some more detail. I'd just say, I've said this before, how pleased I am with the cultural alignment between the two organizations and the general level of excitement around bringing each company's services to their clients. I think that that's really starting to show in some of the activity we have around service line expansion with our clients. I'll let Kristin dig into a bit more detail.

Yeah. Thanks, Kathryn. I'd love to talk about integration. Just a reminder, we closed in August, that's when we'll hit the one-year mark.

Yep.

From an integration milestone perspective, you know, look, like I mentioned, we're ahead of schedule on the identification and the action. We had a few million of savings in this quarter, and that's gonna continue to ramp for the full year. We expect $15 million of savings to flow through the P&L this year, which is really exciting. I'm proud of the leadership team that we have leading that integration for us. In the quarter, we hit some key milestones. We exited or reduced four sites. We've accomplished 13 to date. I think we've got 40 on our roadmap, and those are either reductions in footprint or exits of sites.

We have added some key leadership additions to the team in different functional areas that are helping drive really creating scalability for this organization as we continue to grow and look to become an even larger organization and continue to grow. We have hit some internal system implementation milestones. We've stood up a shared services function within the finance organization and using technology. Lots of good, exciting activity on the integration front.

Okay. Thank you. Obviously, a lot of focus on AI build-out, but also the energy build-out is critical in gaining more headlines. Really the build-out includes generation, energy storage, and transmission. When you think about those three legs of the stool, how does TIC Solutions play in the energy build-out that's supporting not just only AI, but the broad reindustrialization of the US market?

Yeah, I mean, they're directly related, aren't they? I mean, the energy demand coming from AI and other areas. The three that you pointed out are areas that we're very well-positioned for. You know, power delivery, you know, the engineering work that we do around that, you know, right through from transmission to distribution to substation design. We actually just were awarded a energy storage project within the Consulting Engineering group recently, a first of its kind, which is really exciting.

On, on the generation side of things, both, you know, it's an area that our NDT and Inspection and Mitigation business works in, and it's actually quite an exciting opportunity we're working on at the moment, bringing together the data center expertise that we have in engineering and Inspection and Mitigation. I think we're very well-positioned for that growth in that area.

If I'm hearing correctly, you're there for the build-out, but also for the follow-on inspection work. Is that one way to think about it?

Yes. I'd point to Geospatial. You know, we fly 150,000 miles of lines every year. That's been growing and that's recurring work that we do for utilities.

Okay, great. When you look at, say, 12-18 months from now, where do you see kind of the end market exposure for TIC. What areas do you see growing the most as a percentage of total overall mix, and what may just by sheer growth in other markets may be shrinking? It's broader because before if you know, infrastructure with the mix was 25% and data centers were just 2%, data centers obviously has grown a bit more than that. High level, what are the areas of the greatest growth in terms of mix? Then speak to the margin profile of the growth areas. Thanks very much.

Yes, no worries. I mean, I think if I were to I wouldn't point to any areas shrinking, but there's obviously areas that we have more tailwinds and that we're more well-positioned for. Energy certainly when you look at both, you know, generation and distribution, as I mentioned, we're well-positioned for and we do expect to continue to grow. The built environment in general is an area that is going very well for us and we will continue to see. Infrastructure across all segments is an area where, you know, with just with aging infrastructure, the additional demand that is going on it, we just see a lot of tailwinds in that area and will continue to grow.

Great. Thanks very much.

Thank you.

We'll move next to Jeff Martin with Roth Capital Partners. Your line is open.

Thank you. Good morning.

I wanted to dive in a little bit on progress you're making with, you know, the initiatives on I&M and are you seeing an expanding pipeline opportunity there, particularly given, you know, the chemicals business appears as though it has the potential to turn around here?

Yeah, we've actually had some positive signs on the chemical side recently in our sales pipeline. We sort of talked about the reorganization efforts that we were doing on the U.S. and particularly the Gulf, like I mentioned earlier, I don't wanna bang on it about it too much. I'm just really pleased with the leadership that we have in place and, you know, the tone in the meetings. We're definitely taking an aggressive approach to getting to new sites. We have a nice pipeline of opportunities that I see. You know, once we get through this ramp effect of the lost sites in the second half of the year, we're expecting growth. And very pleased with the progress that we've been making with the leadership there.

Yep. It's great to hear you have not lost additional sites since last quarter.

Yeah.

My follow-up question was on geo. I know contract renewals on the federal government level are always kind of a, you know, a tricky, you know, point as we transition out of the end of the year. You know, I know there was a little bit of headwind exiting last year on contract renewals. Just curious if you could give us an update there.

Yeah, we haven't seen any major disruption there. They've sort of been coming in at the expected clip. You know, I think the bumps in the road that we had in Q4, we're not seeing signs of continuing at the moment.

Great to hear. Thank you.

Thanks, Jeff Martin.

We'll take our next question from Andy Wittmann with Baird. Your line is open.

Great. Yes, thanks. Good morning. I guess I wanted to just ask a little bit more on the C&I segment. I heard that the call-out in the lab testing work was good. That's about half of the segment. I guess what I'm trying to understand is, you know, obviously, when you lose a run and maintain, you gotta go four quarters till the comps ease, and you talked about how that gets better in the fourth quarter. How much of the kind of softness is just the fact that, you know, two quarters ago or one quarter ago, you lost some of those contracts, and how much of it is really kind of systemic or uncertain demand? Can you talk about the uncertainty in the demand? Is that just because of volatile oil prices?

Is it something else? What does it take for better visibility to return to that market so that you can have a better sense of the timing and the scope of services that you're likely to do?

Yeah, I mean, you're right. The run-and-maintain business is our most stable piece, and it sort of drives some of the more higher margin work, and we need to get back to winning new sites, which sort of talking about the commercial discipline and focus that we've got, you know, I'm confident we'll get back to, you know, especially as we get past the ramp effect of these lost sites. Talking about uncertainty or volatility, you know, where we're seeing that is with the outage work, and we called out the shift in some of that work from Q2 to Q3. You know, this is non-discretionary work that needs to be done, they're gonna need to do it at some point.

You know, we'll expect that work to start to flow in.

Andy, Good morning. I would just add that, you know, we certainly recognize the macro volatility that's out there right now, and I think the structure of our I&M business is fairly diversified compared to some of our other comps. We've got, you know, less than 10% of our I&M revenue is outage work, which is 5% of, you know, the combined business. Our refinery oil and gas exposure is, you know, less than 15% of our consolidated results as well. We're potentially less impacted by timing, and also less impacted by direct oil prices. We're focused on staying disciplined with regard to inflation pressures, whether it be with rates and fuel charges and whatnot.

Yeah. Just as an addendum to that question, how has the competitive environment evolved against that volatility? Obviously, anytime you're losing sites, you know, that's a competitive dynamic. Has it improved or changed at all since late last year to what you're seeing this year or before that? It sounds like you've got some initiatives there, new leadership, talking about, you know, kind of motivating the team to get these new sites. What does it take, what's it looking like right now competitively for those?

Yeah. You know, in some cases, it's getting the culture right in the region, getting some of the leadership back that we had and that they bring work with them. We've seen some really good initiatives around that. You know, there has been some pricing pressure in the Gulf in particular. I think some of that's short-lived and, you know, we're maintaining our discipline around that. You know, we've got a good line of sight on some pretty good opportunities.

Okay. Maybe just one last question. Just kind of looking at the cash flow statement, Kristin, it looks like, obviously, the first quarter is always seasonally weak. Understand that. Just looking in the working capital here, your contract assets were a pretty big consumer of capital. Is that a result of You had a reference to, like, a larger contract where there was some subcontracted scope. Is that what we're seeing there? Is there, like, a percentage of completion project that you're using a lot of subcontract labor? Is that why that contract asset is consuming capital right now? When do you think that account can reverse and start giving you back some of that capital?

Yeah, good question, Andy. It was a big focus area of mine as well. I would say that there were a two larger billings that went out in early April that should have gone out in March, and that was the driver. We've got an isolated list of what those were. If you look at what else went through the cash flow statement in the quarter that was unusual, we did clear out some contingent payments for previous acquisitions, and that impacted the cash during the quarter as well. The subcontractor costs by nature didn't drive the contract assets. Driving contract assets is a key focus of ours.

Got it. Okay. Thanks a lot.

Thank you.

Thanks.

We'll move next to Josh Chan with UBS. Your line is open.

Hi. Good morning. Thanks for taking my questions. Maybe just a strategic one. I guess at the branch level, how would you say, you know, your combined company vision is, you know, being translated or proliferated at the branch level? Like, how would you assess that at the moment?

You know, we have a very like a centralized commercial team that is absolutely focused on educating our branches on what the services they now have at their fingertips to take to their clients. We have a very programmatic approach to that's driven from the top. You know, we drive a very entrepreneurial culture throughout the organization. You know, the leaders at the branch levels are naturally very interested in what they can be bringing to their clients, and that's something that we really cultivate as a business. You know, and that's what helps us drive our organic growth.

Okay. I appreciate that, Ben. Then maybe on Consulting Engineering, obviously a very good quarter. What's the right run rate for that business in terms of growth? I wonder if you can think about it from a matter of volume or hours plus price. Is that how you think about growth in that business?

I mean, yes, volume and price, but I would say, you know, about half of it's fixed fee. You know, we really position ourselves at the higher value end of the work that we do to command solid pricing. You know, I would expect the growth path that we've got to continue. We have some really nice tailwinds with that business. I'd point again to that backlog being up 14%. That's a very strong indicator of the strength of that business right now.

Okay, great. Thank you for the color, and thanks for the time.

Thank you.

We'll take our next question from Stephanie Moore with Jefferies. Your line is open.

Absolutely. Good morning. Thanks, everybody. I wanted to maybe circle back to some of the commentary around data centers. You know, look, I think obviously you're seeing some of the benefits of that growth and that those investments that are being made. Could you also talk about what this can mean from a longer term standpoint and just remind us about, you know, obviously there's the build-out opportunity, but then kind of the ongoing opportunity that we could expect to see where you guys would benefit? I think there's a little bit of a misunderstanding that there's certainly a long tail here. Thanks.

That's good, and I'm glad you asked that question 'cause we are really focused on making sure that we're heavily involved in the ongoing operations of data centers. The services that we have position us really well for that actually. Only about 15% of the revenue we do with data centers is associated with ongoing operations right now. If you think about that's growing, and if you think about what happens in these data centers, the technology is changing all the time. As they bring these new servers in, they require engineering, retro-commissioning, CFD, computational fluid dynamics. These are all things that we do, and we're working with our clients ongoing. We also have a program management owner's rep service that applies to data centers.

We are very focused in making sure that this isn't a one-off with all the work that we do, and that we have a strong tail with each of these sites that we touch.

Great. That's really helpful. Maybe just thinking about, I guess just thinking about the underlying business. As you think about the cross-selling opportunity, I know you touched on this a little bit, but, you know, I think if we think back to the original, you know, merits of NV5, there were significant cross-selling opportunities. Maybe just help us focus on what might be the more immediate benefits that we could start to see. And you know, what actions I guess more importantly, what actions have been taken behind the scenes from either a management or operations level that allow you to go and capture those revenue synergies? Thanks.

Yeah. Great. We have a team that actually reports directly to me that's 100% focused on driving cross-selling through the organization. As you know, NV5 had a very strong cross-selling program, and we've extended and improved upon that for the TIC Solutions platform. You know, I would say as we're getting more mature, we are starting to see the trends in the areas that we can get more behind and focused on. Some examples is we're seeing clients really excited about the fact that we can do materials testing and quality assurance along with our NDT capabilities. Sort of a turnkey approach there. Pipeline and integrity, all segments have exposure there.

Bringing all the capabilities that we have, sort of seamlessly is also something that we're excited about. Around infrastructure and bridge inspection, that's an area where NV5 has very strong credentials, and we're bringing along our rope access and inspection capabilities. We called out some specific projects last quarter. Just a few examples at a strategic level of where we're seeing opportunity. But I'm really pleased with the activity and the momentum that we're gaining around our cross-selling program right now.

Stephanie, I would just add that we look at cross-selling more broadly even and see tremendous opportunity for service line expansion within the segment as well. If you think about rope access opportunities in lab engineering, cross-selling within I&M, as well as Geospatial across to Consulting Engineering. From a broad perspective, tremendous opportunity from a white space perspective within our existing customer base and also within M&A markets.

Thank you everybody for the time.

Thank you, Stephanie.

It does appear that there are no further questions at this time. I would now like to hand back to Ben for any additional or closing remarks.

Yeah. Well, thanks everyone for your questions and for your continued interest in TIC Solutions. We remain focused on growth, execution, and delivering on our commitments. We look forward to seeing you all at our Investor Day later this month, hopefully, and updating you on our progress next quarter. Thanks everyone, and have a good day.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Hello, and welcome to the TIC Solutions Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Andrew Shen, Director of Investor Relations. Thank you. You may begin.

Thank you, operator. Good morning, everyone, and thank you for joining the call. Joining me this morning is Tal Pizzey, our Chief Executive Officer; Ben Heraud, our President and Chief Operating Officer; Kristin Schultes, our Chief Financial Officer; and Robbie Franklin, Executive Chairman. As disclosed in our earnings release, we would like to acknowledge the planned leadership transition we announced this morning. Ben Heraud has been appointed Chief Executive Officer effective March 31, 2026, succeeding Tal Pizzey. Tal will continue to serve on our Board of Directors and act as an adviser to Ben through and following the transition to ensure continuity. We will provide additional context during our prepared remarks. I would now like to remind you that certain statements in the company's earnings press release and on this call are forward-looking statements that are based on expectations, intentions and projections regarding the company's future performance, anticipated events or trends and other measures that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In our press release and filings with the SEC, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, March 12, 2026, and we undertake no obligation to update any forward-looking statements we may make except as required by law. As a reminder, we have posted a presentation detailing our fourth quarter financial performance on the Investor Relations page of our website @ticsolutions.com. Our comments today will also include non-GAAP financial measures and other key operating metrics. The required reconciliations of non-GAAP financial metrics can be found in our press release and in our presentation. For the purpose of this call, we refer to our segments as Inspection and Mitigation, or I&M, Consulting Engineering or CE, and Geospatial or GEO. Any reference to combined results reflects a non-GAAP combined view of legacy Acuren and legacy NV5 for comparability. More details on the calculations of the combined results are included in the presentation. Let me outline the flow of today's prepared remarks. Tal will provide opening comments. Ben will review our operating priorities and segment performance. Kristin will cover our financial results, integration progress and our 2026 outlook. Robbie will conclude with strategic priorities and capital allocation. It's now my pleasure to turn the call over to Tal.

Thank you, Andrew. Good morning, everyone. This morning, we announced the planned leadership transition that has been contemplated as part of our broader succession planning process. After nearly 4 decades with the business, including serving as Chief Executive Officer, I will be transitioning from the CEO role as I prepare for retirement. I will continue to serve on the Board and act as an adviser to Ben and his team to ensure a seamless transition. Since joining Acuren in 1987, it has been a privilege to help build this organization. We entered the public markets and completed the combination with NV5 create TIC Solutions a $2 billion revenue company. Ben has been deeply involved in shaping the combined operating model since the NV5 combination closed in August. He understands the platform, the culture and the priorities ahead. I have full confidence in his leadership as the company moves into this next chapter. With that, I will turn the call over to Ben.

Thank you, Tal. I'm excited to step into the CEO role on March 31 and to build on the strong foundation we have established across both legacy organizations. Since joining TIC Solutions in August, my priority has been sharpening our commercial execution across the platform. That starts with aligning leadership around clear growth priorities, strengthening account management processes and accelerating cross-segment collaboration. We are driving greater consistency and pricing and utilization. Before joining TIC Solutions, I served as CEO of NV5 and previously as COO. I joined NV5 through the acquisition of Energenz, a business I co-founded and spent more than a decade building and scaling engineering and commissioning operations across global markets. That experience in building commercial teams, improving operating rigor and driving prudent capital allocation informs how I approach this next chapter. 2025 marked an important step change for TIC Solutions. We completed the combination, rebranded and established a scale TIC, Engineering and Geospatial platform positioned for the next phase of growth. On a combined basis, in 2025, we grew revenue approximately 4% to $2.1 billion, representing our highest combined full year revenue. We delivered approximately $312 million of adjusted EBITDA and 14.8% adjusted EBITDA margin for the full year. We now operate at meaningful scale with a diversified end market mix and a recurring revenue base anchored in compliance and essential services that positions us well for durable growth. We have an incredible opportunity ahead to expand margins and compound earnings through focused execution of our strategy. And as we move into 2026, our priorities are clear. First, we will accelerate organic growth across the platform with a particular focus on cross-selling and deeper client engagement across our segments. We see a meaningful opportunity to expand share of wallet with key infrastructure, industrial, utilities, data center and government clients by leveraging our combined capabilities. Second, we are focused on strengthening organizational alignment and cultural cohesion across TIC, so we retain our great talent and deploy our resources and capital to the highest return opportunities. Finally, we'll drive margin expansion through prudent cost management, service mix improvement and utilization improvements as we scale. We're beginning to see tangible cross-selling traction across the platform. For example, we're in late-stage negotiations on a multiyear bridge infrastructure engagement. The scope brings together drone-based LiDAR mapping and modeling, engineering oversight and design review, both access and inspection capabilities, allowing the client to execute a long-term inspection and maintenance solution. This is a good example of how we can serve as a multidisciplined provider across the asset life cycle, which we believe is a differentiator in the market. In this example, we expect opportunities to expand and scope over time, including additional inspection work and analytics services. This project is emblematic of the sizable market opportunity ahead for this integrated offering. Our revenue base remains anchored in recurring and repeat compliance-driven inspection, Engineering and Geospatial activity. We believe the diversified nature of our portfolio provides enhanced stability and performance greater flexibility and capital allocation. Diving into segment performance, CE continued to perform well. Activity in data centers, infrastructure, engineering, building planning and design and specialty services such as the development of digital twins remains healthy. Results were supported by ongoing infrastructure investment and grid hardening and modernization programs. These programs are typically embedded within multiyear capital plans rather than short cycle activity. Data center revenue increased meaningfully year-over-year, reaching nearly $70 million in 2025, more than doubling versus the prior year. We continue to see strong momentum with line of sight to nearly $100 million of data center revenue supported by contracted backlog and programmatic client engagements. Within data centers, our work expands building systems design commissioning and power-related scopes, including mechanical, electrical, bioprotection, substation, peer review and digital modeling services. Our mix reflects a broader life cycle position. We support hyperscale and colocation clients from early stage engineering and design through commissioning and operational optimization, increasing scope density per site and supporting repeat deployment across multiphase campus relationships. We also recently secured a U.S.-based I&M engagement within the data center vertical, extending our inspection capabilities into the mission-critical space. The scope involves radiographic testing of critical mechanical systems. The engagement demonstrates the applicability of our advanced NDT capabilities within the data center ecosystem. We continue to deepen relationships with global hyperscale clients and as we expand service rep within existing accounts, we expect to continue gaining market share. GEO delivered steady growth and strong margins, supported by utility demand, healthy fleet utilization and increasing contribution from analytics and software services. During the quarter, the federal funding lapse slowed certain procurement and approval processes, which affected timing of work in select programs. The impact was limited to award and approval pacing, and there were no material cancellations. We expect execution timing and visibility to improve as we progress through the year. In February, we announced GEO Agent, our proprietary AI-enabled geospatial platform, and we expect to begin rolling it out to clients in the coming weeks. GEO Agent is designed to integrate with clients' existing systems record and over time, it should improve processing efficiency, automate key workflows and enable higher-value analytics. We expect it to support faster delivery times and incremental analytics services over time while operating within client environments and established workflows. Year-end backlog within CE and GEO was $1.07 billion, up about 10% from approximately $970 million last year. In I&M, Lower volumes were concentrated in the Gulf Coast, primarily due to LNG construction timing and slower chemical activity, along with a few site losses amid elevated competition. Competitive intensity in the region remained elevated during 2025, and we stayed disciplined on pricing while tightening account coverage and improving staffing and resource deployment. LNG-related demand has increased globally and we believe the impact in our second half results reflect timing between major construction phases rather than demand deterioration. We have strengthened regional leadership in the Gulf Coast and made targeted leadership additions with an inspection of litigation to drive operating consistency, commercial focus and improved resource deployment. We remain focused on margin quality, and we continue to pursue work that meets our margin thresholds. We maintain pricing integrity even when competitors were more aggressive, and we will not trade long-term economics for short-term volume. Our embedded run and maintain programs and call-out activity grew in the year. This recurring and repeat revenue base provides meaningful visibility and resiliency across cycles. This growth was offset by declines in the timing and scale of outages and capital projects. To strengthen execution we refined the I&M operating model during the quarter by reorganizing the segment into economically meaningful operating regions with clear P&L ownership. We also streamlined support function and improved indirect cost management to reduce duplication and improve coordination. We are tightening utilization management, asset deployment and cost oversight. On the commercial side, we are reinforcing structured account and pipeline management discipline across our largest customers with compensation frameworks aligned to growth and renewal performance. Collectively, these actions are intended to improve execution consistency and support margin progression in 2026. We plan to host an Investor Day in May to outline our longer-term growth strategy, margin trajectory and capital allocation framework, including additional detail on our updated I&M operating framework. Across TIC Solutions, this quarter's performance reinforces the benefits of scale and diversification in our business. We believe that this positions the company for continued growth and margin progression. And with that, I'll turn the call over to Kristin to review the financial details for the full year and fourth quarter 2025, provide an update on integration and offer context for our 2026 outlook.

Thank you, Ben, and congratulations. Good morning, everyone. On a combined basis, full year revenue grew 4.4% on a constant currency basis or 3.6% as reported to $2.1 billion after FX headwinds in the year. Full year combined adjusted gross profit was $794 million, with adjusted gross margin of 37.6%, up 14 basis points. In I&M, revenue was approximately $1.1 billion for 2025, roughly flat for the year with growth in industrial, midstream, wind and automotive, offset by localized softness in the Gulf Coast. I&M full year adjusted gross margin was 27.8% compared to 28.5% in the prior year. On a combined basis, CE revenue was $714 million, up roughly 8% against 2024, lifted by infrastructure and data center tailwinds. CE's full year adjusted gross margin was 47.0% and up 150 basis points against 45.5% in the prior year driven by data center growth and real estate transaction work. On a combined basis, Geospatial revenue was $298 million, up roughly 6% against 2024, driven by strong commercial demand as well as broadening analytics and software sales. Geospatial's full year adjusted gross margin was 51.5% compared to 53.6% in the prior year, driven by mix and utilization. Now shifting to our fourth quarter results. Total revenue was $508 million, reflecting a full quarter of NV5 contribution. On a combined basis, this was roughly flat year-over-year, with growth in CE and GEO offset by I&M. Adjusted gross profit for the quarter was $197 million, up 8% from the combined $183 million. Adjusted gross margin was 38.8%, up 277 basis points from the combined margin of 36.0% in the prior year period. This performance represented margin expansion on a dollar and percentage basis across all 3 segments. In I&M, revenue was $258 million in the fourth quarter, down 2% driven by lower outage and capital project spending. Adjusted gross margin was 28.2% for the quarter compared to 26.1% in the prior year period. The over 200 basis point margin improvement reflects favorable mix, including higher call-out activity as well as improved execution. On a combined basis, CE contributed fourth quarter revenue of $181 million, up 2%. CE's adjusted gross margin was 46.9% in the quarter up 150 basis points against 45.4% in the prior year period, driven by infrastructure and data center tailwinds. On a combined basis, GEO contributed fourth quarter revenue of $70 million, up 2%, with growth impacted due to the federal funding lapse. GEO's adjusted gross margin of 57.2% in the quarter improved against 50.0% in the prior year period, reflecting favorable project mix and strong operational execution. The margin improvement in each of our 3 segments in the quarter demonstrates real momentum as we start 2026. Adjusted SG&A for the quarter was $124 million or 24.4% of revenue reflecting the inclusion of NV5 operations, which carry a higher SG&A ratio. In the near term, we are attacking the elevated SG&A levels through the announced integration program as well as our commercial excellence initiatives. Adjusted EBITDA for the fourth quarter was $76.4 million, representing an adjusted EBITDA margin of 15.0% compared to $40.7 million in the prior year period. The full year combined adjusted EBITDA was $312 million, representing an adjusted EBITDA margin of 14.8%. We improved cash conversion during the year, supported by lower DSO and tire working capital management. Operating cash flow as reported for the year was $95 million, reflecting only a partial year contribution from NV5. Capital expenditures for the full year totaled $34 million or 2.2% of revenue. On a combined basis, CapEx was $56 million or 2.7% of revenue reflecting our low capital intensity and asset-light business. Moving now to an overview of our balance sheet and capital resources. As of year-end, we had total liquidity of $551 million, including approximately $440 million of cash and cash equivalents and $111 million of available capacity under our revolving credit facility. Total term loan debt was approximately $1.6 billion. Our balance sheet is in a solid position, and we remain focused on generating free cash flow to achieve our long-term net leverage ratio target of below 3x. In October, we completed a $250 million private placement of 20.8 million shares of common stock and prefunded warrants to an existing shareholder. The transaction strengthened our balance sheet and provided additional flexibility to fund growth opportunities and to deleverage. Turning to integration. We transitioned to the execution phase of the integration program toward the end of the fourth quarter. We remain on track to execute on the $25 million of cost synergies that we've committed to delivering. We anticipate roughly half of the annualized cost savings to be realized during 2026. And we expect to reach full synergy run rate by mid-2027. To ensure disciplined execution, our integration management office has clear ownership across key functional work streams with defined milestones to track delivery and cost capture while ensuring operational stability. We are also focused on communication, incentive alignment and cultural integration as we bring the organizations together. Now turning to our outlook. For the full year 2026, we expect revenue in the range of $2.15 billion to $2.25 billion and adjusted EBITDA in the range of $330 million to $355 million. At the midpoint, this implies approximately 4% revenue growth over our 2025 combined baseline of $2.1 billion. Meaningful year-over-year growth in adjusted EBITDA is expected to be driven by commercial focus and partial realization of our cost synergies, along with the operating model refinements and I&M that Ben discussed earlier. By segment, on a combined basis, we expect growth in CE and GEO to outpace growth in I&M for the full year. Please note that our 2026 adjusted EBITDA guidance reflects an $8 million investment related to compensation alignment actions at NV5. Specifically, we made a decision to reclassify the short-term incentive program at NV5 from stock-based compensation to cash compensation, which all else equal, reduces adjusted EBITDA beginning in 2026, thus impacting our guidance framework. This important change reflects an integrated market-based compensation structure at TIC. We are excited to announce this to our team, and we believe this will help retain and attract top talent as we continue to grow. We expect typical seasonality in 2026, consistent with the combined profile of our business. First quarter adjusted EBITDA typically represents roughly 15% to 18% of full year EBITDA. In line with historical patterns. The first quarter is generally the lightest quarter of the year, and we expect activity levels and margins to improve with performance weighted towards the second and third quarters. As you think about the first quarter, based on what we see today and our internal planning assumptions, we imply revenue in the range of $470 million to $485 million and adjusted EBITDA of $55 million to $60 million. From a cash flow perspective, we expect healthy free cash flow conversion from adjusted EBITDA. In 2026, we expect net interest expense of $95 million to $105 million, cash taxes in the range of $20 million to $30 million and capital expenditures between $60 million to $70 million. We also expect working capital to be a modest use of cash as we see growth this year. Taken together, these items frame our expected free cash flow generation for 2026. We are excited to be filing our first 10-K as a combined company. I want to thank our teams across the organization for the care, commitment and TIC first mindset that they've demonstrated through this period of change. Many leaders within our businesses have taken on additional responsibilities to move this forward and the integration momentum and progress we've made reflects the pride and ownership our teams bring to the table every day. With that, I'll turn the call over to Robbie to discuss our long-term strategy and capital allocation priorities.

Good morning, and thank you, Kristin. I also want to thank our investors for your continued engagement and support. Before I outline our strategic priorities, I want to reiterate the Board's confidence in Ben's leadership and thank Tal for his decades of service. With integration underway, TIC Solutions is a unified platform with meaningful scale across inspection, engineering and geospatial analytics. Our revenue base is anchored in nondiscretionary maintenance, regulatory compliance, utility programs and long-cycle investment across critical industries. We support our clients from planning and design through commissioning, maintenance, compliance and asset optimization. Our team combined field data collection with design, analysis and digital capabilities that enhance reliability and reduce operational risk. Our capital allocation framework is disciplined. We will prioritize deleveraging towards our long-term target, reinvest organically in the highest return areas of our business and pursue selective tuck-ins and larger acquisitions that enhance capability, geography or technical depth at attractive returns. This week, our Board authorized a $200 million share repurchase program, which we may use opportunistically based on market conditions. With scale, diverse end markets and resilient revenue characteristics, we believe TIC Solutions is positioned to compound earnings and cash flow over time. 2026 is a critical year for TIC Solutions. We are laser-focused on execution and delivering on the targets we have shared with the investor community. We are encouraged by our early results to start the year and have confidence in our team's ability to drive top and bottom line growth. And with that, I'll turn the call back to Ben for -- to close our prepared remarks.

Thank you, Robbie. As we close, I want to frame where we are going. 2025 was a pivotal year for TIC Solutions. We successfully brought together 2 scaled organizations, strengthened the balance sheet and advanced integration while continuing to deliver for our clients without disruption. The structural tailwinds in our markets remain intact, including infrastructure reinvestment, grid modernization, increasing technical and regulatory complexity and the continued expansion of mission-critical facilities. As we move into 2026, we are focused on accelerating growth by increasing share of wallet, expanding cross-selling across our segments and scaling our account coverage, while strengthening how we work together and reinforcing a common culture. That focus supports continued margin progression and cash generation while maintaining balance sheet strength, which will ultimately drive shareholder returns. I want to take a moment to recognize our teammates across TIC Solutions, they've handled a period of significant change with discipline and focus while staying committed to delivering for our clients every day. Thank you. With that, operator, we're ready to open the line for questions.

[Operator Instructions] Our first questions come from the line of Chris Moore with CJS Securities.

This is Will on for Chris. Can you talk a little bit more about the integration process in a little more detail? Are there specific milestones you're looking to reach in 2026?

Yes. Thank you for the question. I will tell you that we are -- I am extremely proud of the team and the momentum that we have so far, a high degree of confidence in our ability to execute on this. Right now, I would tell you that some of our focus areas have been around communications and culture, which is incredibly important, especially during leadership transitions. We're working through compensation studies and alignment and choosing system implementation partners. So if you think about our commitment of $25 million of savings and capturing half of that this year, think about that as roughly 60% headcount and the rest non-headcount. And the team is meeting weekly on individual milestones and on track, we're ahead of schedule.

That's super helpful. And then on the top line, can you talk more about the biggest potential synergies and go-to-market strategies? And what are you hearing from customers? Is there any cross-selling opportunities that you're seeing that you weren't thinking about initially?

Yes. Thanks, we touched on it on the call, but we have some really exciting developments and opportunities that are coming through the cross-selling program. Been really pleased with how the segments have been coming together and exploring ideas with their clients. We have a lot of white space between the businesses that create opportunity. But just pointing to that recent win and inspection mitigation within the data center space, that's really exciting, that's completely new to inspection of mitigation. So to be able to get that exposure to that market where we're seeing a lot of tailwinds is exciting. And then on the infrastructure side of things, we're able to really service the full life cycle of any kind of asset now with our capabilities from planning and design, consulting and engineering through I&M, it's driving opportunity for us to service our clients in new ways. So we're seeing a lot of upside. It does take time to get these wins in play. We're going to put these ideas in front of our clients and give it to a contract, but very pleased with the progress that we're seeing so far.

Our next questions come from the line of Brian Biros with Thompson Research Group.

This is Chris calling in for Brian. A couple of questions on end markets. It seems fair to say that some of the smaller exposure categories are the fastest-growing. In your release and prepared comments, you called out significant organic growth in data centers, and we know that aerospace is another fast-growing end market. Both of these, of course, are higher-margin businesses. Where do you think these businesses could be in the next 12 to 24 months? And could they represent a double-digit percentage of sales?

Yes. I mean in terms of organic growth, we sort of we've doubled the data center business over the last 12 months, and we're continuing to see -- be on track for continued significant growth. Related to that is power delivery and the the demand that data centers are putting on the grid. We're very, very well positioned to exploit that also with our technical capabilities in that space, along with infrastructure and general and the demand that we're seeing there. So some good end markets. Data centers will continue to grow and outpace certain parts of the business, especially as we layer in new services and increase our revenue per megawatt.

Chris, I would just add that we're really excited about with the combination of the businesses is the more diversified platform. And really, we see all of our end markets is having tailwinds. So yes, there are pockets of outsized or outpaced growth. But in general, we're really optimistic about all of our end markets.

Yes, probably a good indicator of that. The backlog being up 10% year-on-year.

Yes. Fantastic. And then can you talk a little bit about your expectations on the inspection side for the energy and oil end markets? I know they can be somewhat lumpy quarter-to-quarter with the chemical market pressure and how oil and gas is performing, but how should we think about that end market into 2026.

Yes. I mean we have good visibility on the business. A very large percentage of it is planned outages and run and maintain year-on-year as we look at the number of sites that we're working on, that's similar. And in a lot of cases, the contracts have a longer time line. So we have good visibility there.

Our next questions come from the line of Tomo Sano with JPMorgan.

Could you talk about the EBITDA margins in the latest 2026 guidance. IC is lower than what was indicated in your prior outlook given the considerations of the stock comp to cash comp, I get that, but what other reasons for this more vicious margin outlook compared to what you guided 3 months ago, please?

Yes. Thank you. So you're spot on the previous range was 15.5% to 16.5% and have been adjusted by the stock compensation investment that we've decided to make. We think this is best for the business in the long term and really drive the integration of the team and provides market-based compensation for our team. So we feel that that's the right decision from there. And from there, we've given a nice framework for our 2026 guidance, both on revenue and adjusted EBITDA on a consolidated basis. Demonstrating dementing growth on the top line as well as margin expansion coming from improved execution across all 3 segments as well as the planned cost synergy realization.

And follow up on CEO transitions. Could you elaborate on the timing and the rationale for this transition? And should we expect any changes in strategies or execution, please?

It's Robbie. The transition sort of contemplated from the onset, when we bought Acuren helping the business for a very long time, and we wanted to create an environment where he could execute and really have its fingerprints on what the combined TIC Solutions entity would look like. And we also -- we had Ben who was already CEO of NV5, new the business, but we wanted to give him sort of the period to learn about Acuren and sort of the inspection side of the business. So in terms of timing, we feel like this is sort of the right transition time as we build. As we build sort of this unified culture. So pretty consistent with sort of our original thinking. And the Board and the entire team is very supportive of sort of this path.

Our next questions come from the line of Alex Rago with Texas Capital.

Thank you very much. More broadly, can you address the current situation in the Middle East and the rise in oil prices and how that could impact your business or some of your customers' decisions?

Yes. So the Middle East is a relatively small piece of our business, around 1%. So it's relatively immaterial, like now the impacts that we're seeing are minimal on the business there. As far as the price of oil and the impact on the business, we could see some additional work around pipelines. It's good for our oil sands business. And the refinery side of the business is relatively stable. So I mentioned earlier the good line of sight that we have with the run and maintain business. And right now, the outlook looks good.

Very helpful. And then as it relates to revenue guidance, which just kind of 2% to 7% growth rate, can you talk about the primary variables that could cause this to be either kind of closer to the high end or the low end?

Yes. So from a 2026 perspective on the top line, I would tell you we have a high degree of confidence in this and it was a very thoughtful approach that we did to the budgeting process this year down to the division level and a bottoms-up approach. And given the tailwinds we have in our business, we feel very confident in our ability to deliver against that.

Our next questions come from the line of Harold Antor with Jefferies.

This is Harold Antor on for Stephanie Moore. So a quick question. Just on the pricing front, could you remind us what pricing rack historically, how it trended in the quarter? Just give me we're more disciplined and what, as you focus on the margin profile we want to walk away from some businesses. And then I guess, do you see that you guys are better positioned to be more aggressive on pricing, just given you provide the full suite of products and services today versus mostly competitors we can't compete on our phone.

Yes. So we mentioned some of the work that we've done around the organization of our inspection and mitigation business in the U.S. that has offered us an opportunity to be more competitive on our pricing and go after more of the work in that space. A lot of the work that we price is more on a value proposition, fixed fee kind of work and we continue to see good momentum there. I would also just point back to the backlog being up 10% and the sales being very positive through the first part of this year already. And yes, just -- I mean, you mentioned the mix of work. And if we think of this opportunity to work through the life cycle of an asset, we are very sticky with our clients -- we have very strong relationships and our ability to work through the entire life cycle of an asset keeps us very sticky with those assets and clients.

And Harold, on the pricing, I think also I would just remind you to point back to our Q4 results, gross margin dollars and percentages were up across all 3 of our segments. We feel really good about that heading into 2026. And if you combine that with some of the operational initiatives under Ben's leadership, high confidence.

Yes. And then just to piggyback on an earlier question, Ben, I think you highlighted that you see a line of sight of $100 million in data center revenue. Just wanted to get a sense, is that a '27 event? Is that a '28 event? Or is that just -- is that a longer-term event? Just wanted to get a sense of the timing on that.

It's '26 line of sight. So we have a very strong backlog, particularly to that, and we have multiyear programs, some extremely resource constrained area of the business where we have very strong relationships with the hyperscalers. So we see over the next 12 months line of sight to those numbers.

And then I could squeeze in 1 more just on capital allocation that you guys focused did the buyback. So should we be thinking more of the capital being deployed and buy backs? Or do you expect to do a little bit more on tuck-in side, any organic growth implementation investments that you could provide a little bit more color, that would be great. And that's all for me.

So on capital allocation, we have a robust tuck-in line that we're going to continue to execute on. But we thought, as a Board, it was prudent have the flexibility to have a buyback program in place given where market conditions are. And frankly, there's no better acquisition than your own stock at the right levels. So we have a very opportunistic view on how we approach ,but there is no question we're continuing with in pipeline because it creates a more robust a more robust operating profile and allows us to new geographies and new service lines, which are critical to sort of our investment thesis.

Harold, I would just add that on our -- on the tuck-in side that Robbie mentioned, I'm really proud of the team's ability to continue maintaining focus on the broader integration with the merger, but also remain focused on the importance of the small tuck-in strategy that we have that's been largely successful for us. So we completed 3 small tuck-ins during the quarter and the combined business together at 12% for the full year, and that's across all 3 segments. So we're excited to continue that into the New Year.

[Operator Instructions] We have reached the end of our question-and-answer session. I would now like to hand the call back over to Ben Heraud for any closing comments.

Thank you all for your questions. I just wanted to reemphasize our strategic priorities to drive shareholder value. One, we need to accelerate our organic growth, and we will. Two, we're going to strengthen our organizational alignment and cultural cohesion. And three, drive margin expansion. Finally, I want to thank our investors for their continued support and partnership. We look forward to updating you on our next quarter. Thank you all, and have a good day.

Thank you, ladies and gentlemen. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.