Fluor Corp Q1 FY2026 Earnings Call

Good morning and welcome to FLOR's first quarter, 2026 earnings conference call. Today's call is being recorded. At this time, all participants are in a listen only mode. A question and answer session will follow management's presentation. A replay of today's conference call will be available at approximately 1030 a.m. Eastern Time, accessible on FLOR's website at investor.flor.com. The web replay will be available for 30 days. A telephone replay will also be available for seven days through a registration link, also accessible on Flora's website at investor.flora.com. At this time, for opening remarks, I would like to turn the call over to Jason Landkamer, Vice President, Investor Relations. Please go ahead, Mr. Landkamer.

Thanks, Krista. Good morning, and welcome to Flora's 2026 First Quarter Earnings Call. Jim Brewer, Floor's Chief Executive Officer, and John Regan, Floor's Chief Financial Officer, are with us today. Floor issued its first quarter earnings release earlier this morning, and a slide presentation is posted on our website that we will reference while making prepared remarks. Before getting started, I would like to refer you to our safe harbor note regarding forward-looking statements, which is summarized on slide two. During today's presentation, we'll be making forward-looking statements which will reflect our current analysis of existing trends and information. There is an inherent risk that our actual results and experience could differ materially. You can find a discussion of our risk factors, which could potentially contribute to such differences, in our 2025 Form 10-K and our Form 10-Q, which was filed earlier today. During this call, we will discuss certain non-GAAP financial measures. Reconciliations of these amounts to the comparable GAAP measures are reflected in our earnings release and posted in the Investor Relations section of our website at investor.floor.com. With that, I'll now turn the call over to Jim Brewer, FLUR's Chief Executive Officer.

Thank you, Jason. Good morning, everyone. Thank you for joining us on our first quarter 2026 earnings call. Before I discuss the quarter, I want to highlight the strong trajectory we're seeing in our prospect pipeline and our capacity to grow the business. Turning to slide three at FLUR, complex EPC projects. We apply our core competencies to project management and EPC execution to deliver world-class facilities globally. What differentiates us is not simply the scale of the projects we pursue, but the discipline, technical expertise, and project delivery track record. We're focused on building a quality backlog where rigor in planning and execution translate into successful outcomes. Our preferred model for project execution is to get in early in the planning phase and stay until the end of the execution phase. This is how we add the most value. And therefore, it is very encouraging to see the many front-end awards that we have announced in recent months. These early wins are a key stepping stone to accelerate growth in the latter part of this year and into 2027. During the front-end phase, we can establish a solid foundation for the scope, cost, and schedule of the execution phase, which kicks off after the final investment decision by the customer. Early engagement is where we shape the commercial model and ensure projects are set up for success before significant capital is deployed. Some of these early awards that we announced recently include the modular reactor project for Dow with ExaEnergy, the America First, the Donlan Gold Project, an announcement yesterday executing front-end work representing over $60 billion of revenue on potential backlog if clients choose to move forward on these projects with Fluor. In additional prospects, representing another $40 billion in potential over the next three has increased by 50% in the past 12 months. This expansion reflects grown demand across the critical minerals, life sciences, LNG, nuclear, refining, and power. In mining, for example, copper opportunities in South America and other parts of the world underscore the long cycle investment required to support urbanization and electrification. In energy solutions, LNG demand and gas fuel power generation, This is why we're optimistic about the future, but growth alone is not the objective. We are prioritizing backlog quality that aligns with our strategic priorities. Now, let's turn to our review of results in Q1, beginning on slide four, financial detail, but I'd like to cover a few key items. Consolidated new awards for the quarter were $2.7 billion and 98% reimbursable. As we said in February, tokens will be weighted towards the second half of this year. Importantly, margins on new awards in Q1 were 200 basis points higher than the margin represented in our current batch. Proved slightly from year end to $25.7 billion and reflects an additional $1.1 billion and positive. That was 82% reimbursable. To our review of the business sector, a $37 million impact for a mining project in the Americas that experienced declining productivity in the field. disappointed in this result significantly advancing the 2.1 billion dollars compared to 5.3 billion a year ago when we received a multi-billion dollar of this quarter includes in the middle east facility on a mining facility in chile backlog for urban now at 19 billion dollars represents 74 of floor's total backlog we expect this percentage will rebalance as growth in energy and mission solutions starts to drive greater diversification and backlog. Life Sciences and advanced manufacturing remain in the capital supported by on-shoring initiatives and continued investment to expand capacity in select critical sectors, and we're well positioned to support clients as they move projects from planning into execution. Also this year, we see some sizable prospects in a rare earth to our data center efforts to proceed with TerraWolf for a large-scale data center campus in Kentucky with access to 480 megawatts of grid connected power we're currently working with the client towards a full notice to proceed generally speaking we continue to see hyperscalers signaling a multi-year surge in demand for data center in terms of the data center market remain challenging especially regarding risk allocation we're staying disciplined and selective and we're working to shape deals on contract-by-contract basis to ensure opportunities meet our return expectations into slide 8 in mining and metals as I mentioned in the quarter we received a reimbursable EPCM contract for a new aluminum recycling facility in the Middle East and in the region continues to move forward guards to the RICO-DIC project reducing the pace of development on the project as a result of their geopolitical and security concerns offices outside the region received a feasibility study award for Anglo-Americans large fertilizer project in the UK opportunities in South America used to focus on achieving substantial completion on a number of projects this year on the Gordie Howe bridge on the LAX people mover and on the LBJ project to complete them over the next several months and an I 35 phase 2 that project remains on track to achieve substantial completion in q1 of 2027 as it relates to the non-legacy infrastructure portfolio work on the oak hill parkway project in austin and the red and purple line modernization in chicago moving to energy solutions on slide nine segment profit was 74 million dollars compared to 47 million a year ago results increased primarily due to the recognition of favorable closeout items on three projects new awards for the quarter total 213 million dollars and included the feet award for the America first refinery in Brownsville Texas this will be the first grassroots refinery to be constructed in the United States in more than 50 years 60 million barrels per year of domestic abuse refinement in sea drift Texas execution planning to partner with Dow and forward to advancing knowledge we're adding to a mania using new scale to go to slide I am pleased to see a very positive response from clients in the power market need for our EPC capabilities in the market invited about the growing momentum in nuclear long-term solutions. In addition to X Energy and NuScale, two additional technology partners in the nuclear power space to position for project work in the future. The next few quarters in energy solutions include LNG Canada Phase II, a gas compression project, a gas-fueled power plant in the northwest. in a chemical facility in night 11, $71 million for the first quarter, compared to a profit of $5 million a year ago. Results reflect an outcome of a court ruling related to a lawsuit that was filed back in 2013 for law cap activities in Afghanistan. Fleur prevailed on three of the four claims involved in the matter. The final jury award for the fourth claim was 15 million but increased to 96 million when included tribal damages and legal fees we expect to appeal results were considered in 32 million was 2.5 billion awards in the quarter included a significant feed award for the centrist uranium enrichment plant also received 100 million dollar task order to provide services that shaw air force base in support of ongoing operations in the middle east air base in kuwait where we're providing support services for the air force at savannah river we're currently executing both the maintenance and operations scope and the plutonium pit production product in late 2024 and is in the process of recompeting both the mno and plutonium pit scopes of work under a single contract we are well positioned for this work and expect to submit a bid later this year a two-year extension on current intelligence work additional awards on centrist including epc work an extension on our efforts at savannah river and several opportunities that will grow or before i turn the call over to john i want to provide floor's business perspective on the middle east and on venezuela on slide 12. starting with the middle east our first priority is always the safety and well-being of our employees and their families. Everyone is safe and we're closely monitoring events. Quick and lasting conclusion to it. With our workforce safe, our activities in the Middle East have to continue to serve our projects in the region and mitigate supply chain constraints. The Middle East want to client needs. Patient stabilizes and clients are ready to proceed. The Middle East is not only a critical source of oil and gas, but also petrochemical gases and fertilizers, all markets where we have a position. Therefore, we're monitoring the longer-term implications of the conflict, including new opportunities, not just in the region, but globally, as clients will look to diversify energy and commodity sourcing. To Venezuela, similar to the Middle East, FLUR has a long history of project delivery in this country. FLUR has executed projects in Venezuela that totaled 2 million barrels of daily crude processing capacity, which represents a significant portion of the country's output at its past peak, active discussions with clients and local partners, positioning for work as investment plans firm up. We will have more clarity on the timing of these opportunities in the coming months. I'll now turn the call over to John for a financial update.

Thanks, Jim, and good morning, everyone. Today, I'll go over Q1 results, balance of the year, beginning on slide 14. Jim covered consolidated revenue, consolidated segment profit for Q1, which was $8 million. This quarter, our gap figures reflect several discrete items that merit additional mention, including, one, a legal outcome related to our log cap work in Afghanistan last decade, which triggered a $96 million impact, $7 million charging project, $10 million gain on the sale of our fab yard in China, and four, a $16 million gain from FX, arising out of a strengthening U.S. dollar. Adjusted EBITDA for Q1 was $60 million compared to $155 million a year ago. Adjusted EPS was $0.14 compared to $0.73 in 2025. Private adjusted results, the FX gain, and the log cap ruling, all to present a clear view of under about one-third of the log cap charge reflects working capital growth we experienced since completing the work in 2016. It was accompanying our earnings release, provided a complete reconciliation to cap $31 million, up from $36 million a year ago. Compensation accruals tied in 26, our stock appreciated about $7 per share during Q1, whereas in the corresponding period in 2025, our share price decreased by about $14, a $20 million impact between the quarters. Interest income in Q1 compared to $19 million in Q4 and $17 million a year ago. We're stable sequentially and year-over-year. Slide 15. We ended Q1 with $3.2 billion of cash in equivalence, an increase of a billion from year-end, which was in line with the pro forma effect that we published in February. Both was largely driven by proceeds from the sale of 71 million shares of NuScale during Q1. We completed the sale of the remaining 40 million shares, generating an additional $473 million of proceeds. $400 million for conversion of new scale shares in 2025. That conversion established a basis of around $28 per share, and we monetized the 111 million shares at around $16 per share, thus generating a tax loss we can deduct in the future. Investment was originally contributed at a $10 per share of their D-SPAC in 2022. More on the new scale returns in a moment. Operating cash flow for the quarter was $110 million compared to an outflow of $286 million a year ago. This $400 million year-over-year improvement reflects lower working capital on several projects, as well as distributions from large JVs in energy and mission. The most substantial Q1 operating cash flow generation since 2017. On the last project front, we didn't see any overall growth in the expected. The allocation across, we provided $87 million in funding. Before consideration of any recovery, we still expect to wrap up the funding with an additional $200 million before the end of 26. and that funding could be substantially complete. Our JV ownership structure, most of this funding is reflected as an investing activity rather than an operating cash flow for the legacy projects dropped to $169 million compared to $255 million at year-end, reflecting our continued execution and slide 16. The decision to shift away from CapEx-intensive operations and to streamline our balance sheet. We began this transition and stork completed $120 million. Our new scale sell-down program generated over $2.4 billion since September 25 and over $2 billion after tax, generating a MOEC of around and an internal rate of return of 15% since our initial investment in 2011. With these actions, we have completed our journey to being asset-like. We continue to deliver on our commitment to return significant value to our shareholders. We bought back 11 million shares, deploying over half a billion dollars, about $1.4 billion on a term framework. Great with both a simplified balance sheet and ample liquidity to support our – combined with a robust share repurchase program, this positions us to increasingly focus on investing in our capabilities and our people to build additional expertise and depth. We're also reviewing carefully targeted, reasonably sized M&A opportunities and sharpening our focus on transactions that could inorganically enhance our efforts in target markets and bring about long-term value creation. 17. In developing our guidance, we, like many of our industrial peers, acknowledge that the situation in the Middle East looms as a potential disruptor to our trajectory. Other things, supply chain delays in reconfiguring, higher inflation and interest rates, and capital spending implications by our clients in the event there is no resolution by the end of the second quarter. This year, 2026 adjusted to EBITDA guidance, $560 million. This had previously been a range of $525 to $585 million. Our modest adjustment to the high discreet items and mining previously discussed, but also, importantly, reflects the rest of the business continuing to deliver at or above expectations. We anticipate adjusted EPS to be between $2.60 and $2.80 per share. Expectations for operating cash flow remain at $300 million, excluding the tax bill on new scale that I mentioned earlier. We expect an appeal on the log cap matter with any payment to pendants until its outcome, which likely extends beyond 2026. Our key assumptions and expectations for the full year are outlined on the slide, including above one, which continues to be weighted toward the back half as we continue to make progress that Jim discussed earlier. Expenses of $175 to $185 million per quarter in Q2 through Q4 that I mentioned, and the typical Q1 effect on grants to retirement-eligible employees. The $15 million, we balance of the year on a potential replacement of our ERP. It includes an assumed tax rate of 65% urban, 20% energy, and 15% mission, which is largely unchanged from our February guide. For full-year reported segment margins, percent in urban, reflecting the mining charge, percent in energy solutions. We get into Q3, and the impacts of the Middle East persist. We'll update the guidance at that time. Before we turn to Q&A, I want to reinforce the following from our overall commentary. One is that we had a single in-flight project with a charge of substance, and that project is approaching 80% complete in the field. to our full-year target, these early awards, continuing into April, reflect a strong endorsement of our strategy by the clients in our end markets, continue to convert the opportunity set in the market into front-end awards, and to work with our clients to convert the front-end awards into full EPC releases. Despite what we hope are temporary headwinds in the Middle East, our focus remains squarely on delivering predictable results and meaningful shareholder returns.

Thank you. we will now begin the question and answer session if you would like to ask a question please press star one on your telephone keypad to raise your hand and join the queue and if you'd like to withdraw that question again press star one we ask that you please limit yourself to one question in one follow-up for any additional questions please requeue and your first question comes from jamie cook with truest securities please go ahead hi good morning i guess my first question is for you John just understanding the puts and takes of the guidance but for you to get to the new midpoint of your range it does assume you know that adjusted EBITDA has to like double from you know I mean current levels and I think that's tough to do even adding back you know making the adjustments for

the charges in the 37 million in urban solutions so can you talk in particular with the Middle East being a headwind now so can you just talk to me about the drivers behind the significant ramp and EPS in the remaining three quarters. I guess that's my first question. And then my second question, Jim, is more to you just on, you know, the award front. One, when you talk about the Middle East opportunity over the longer term, is that included in like the energy infrastructure rebuild? Is that included in the, you know, you mentioned your prospects are up 50%. I'm just wondering if the Middle East opportunities are in there and where they would be in oil and gas. And then the other question, just on PowerGen, can you talk about the opportunities on GasFired, but more so the opportunities of, you know, sort of working with some of the legacy customers floors had historically where you've been very strong?

Good morning. Good morning, Jamie. Maybe I'll start with the first question on the ramp up in EBITDA. So probably the two biggest normalization items in the quarter, as you state, are the mining charge and also what appears to be about $20 million worth of higher run rate in Q1 on the G&A front. So those are significant bridging items. The rest of it is principally coming – we're seeing outperformance in all aspects of the business, probably led by the Energy Solutions Group. And so, you know, we'll wrap up warranty period and the last of the performance tests at LNGC. So that ought to give us a little bit of a tailwind there. We're expecting a little higher performance in Mexico in Q2 from where we were in Q1. And then probably the biggest thing is going to be the pull-through of some of the early awards and the work that we're conducting on them. So some robust services awards in Q1 that Jim delineated, and so we'll see those added to the portfolio and become being EBITDA-generating.

It's out there in LNG, that project as it continues to conflict, Jamie. So if there are any significant opportunities in late 26 or 27 as a result of a conflict, it would be additive to what we already had. One way that I see the impact of the Middle East is I think it's going to increase the chance of key front-end work to materialize into full awards in the U.K. increase. Its chances of going forward have increased as a result of the conflict. And into 27, cultivating the awards for the opportunities in mining associated with copper and some of the other commodities continue to be very strong these days, and that should stimulate investment. and conversations are going well, have a limited notice to proceed to negotiate with a client. Northwest, and that we're preparing, in this particular case, it's a similar model with a client on an execution plan and then the estimate, and once that effort is mature enough, then we will convert to a lump sum, talking to them about opportunities, and so we ingredients for a successful project, the right team, the right country. The supply chain is able to support those projects, which is becoming an increasingly important element. And late this year and next year, so to speak, and prices have improved, so there's opportunity there. And there's some other markets. So I think that the short item, the midterm, associated with diversifying from the Middle East, I think we're well positioned for all that, all those opportunities.

Thank you. I appreciate the color.

Your next question comes from the line of Michael Dudas with Vertical Research. Please go ahead.

Good morning, gentlemen. morning morning Mike the first question Jim you mentioned about the things 200 bips improvement in new business into the backlog maybe can characterize that relative to what you've been putting into the backlog the last several quarters is that because of mix of safe front-end work versus EPC and how do you see that as you convert of feed into awards into backlog how that may improve or change as we go through the next several quarters.

Yeah, Mike, this point is a result of two things. One, some of it is services we intend to convert to EPC, if you will, Mike, on those projects. On a large reimbursable mining project, there's a certain expectation. On an LNG project, there's a different expectation. On the power job, there's going to be a different expectation. So as a combination of this selectivity and market conditions, but also as a function to spike of greater volume. So I do expect the margins to continue to improve and be reflected in the actual performance of the business.

Appreciate that. My follow-up is when you think about, or maybe you could share a little bit more of your discussions with some of the hyperscalers and the market, you seem to be warming up to what you want to do, but still not quite there yet from a term and condition standpoint. And maybe offshoot on some other industrial technology, Semiconductor has been quite a factor into the news and some other large commercial spending and how that may flow into urban solutions opportunities in the next several quarters.

I said before, we are interested in doing data center work in the U.S. We have been successful overseas, and we continue to look at opportunities overseas. But the big prize is also that there are a lot of regional and well-positioned. What we're seeing is many of the commercial, in our view, from a risk allocation perspective. And so what we're saying is we will continue to pursue work in the advanced technologies arena, that data centers and semiconductors. But we're going to be selective, and we are going to maintain that in the advanced technology, We are looking at beyond data centers and at the magnet facility that we're pursuing in the U.S. That's a massive project, and we're well-positioned for that. It's expertise and the strength of our EPC value chain. So we're going to continue to look at these opportunities. The team is maintaining our discipline. We're seeing that the way the race for dominance in AI in the United States, The one that is perhaps most attractive to us is the power market. It just fits better our expertise, our strong engineering, our strong global supply chain. And so we believe that the greatest opportunity for growth, profitable growth, associated with the buildup around data.

Your next question comes from the line of Stephen Fisher with UBS. Please go ahead.

Thanks. Good morning. Just wanted to follow up on the mining project, if you could give a little bit more detail there. I think you said 80% through construction, but just maybe a little more color on the timing of completion. What productivity assumptions that you have made for the rest of the project? Kind of what's going wrong there? And mining, we typically think of those as being cost-reimbursable projects. Just curious kind of what was different about this and why it's fixed price in the first place and how comfortable we are about not having further charges on that. And then second question is, I know you mentioned expectations for kind of or hoping that things improve in the Middle East by the second quarter. Have you started running some scenarios that if things don't improve by then, where are some of the bigger variables that could flow through the financials for the rest of the year?

Thank you, Steve. Let me start with, obviously, that disappointing setback. Work is also disappointing. and finish it expeditiously. Project engineering and procurement are essentially complete, nearing 80%. In recent months, the site experienced declining productivity in the field as of the work. So we did a detailed analysis of work to go, quantities, productivities, et cetera, and concluded that we needed to increase the cost estimate of the project activity numbers pointing. But I'll say while the team and the business leadership continue what it will take to finish the product on the end of the year this is it is overwhelming the one large lump sum project there it only represents about five the other 95 but it's a very attractive market for us very successful market we made a detailed sense also in the essence not just in the essence but in the end of the team to strengthen that oversight and that execution and we're going to watch it very closely over the next several for the unfortunate charge that we saw this quarter, because that was executed by the mining business some years ago. Very successful. So I think this is clearly an isolated item, and we're working very hard to resolve it.

Your next question comes from the line of Sandita Jain with KeyBank Capital Markets. Please go ahead.

Good morning. Thank you for taking my question.

First, can I ask about the total magnitude of the closeouts if you can if you can give us how we should apportion them between the three favorable closeouts that would be very helpful yeah so the the big three projects good morning to get it the three projects that we closed out were a project in China a project project in Kazakhstan and of course the the project in Canada you know the tail on some of closeout items certainly in line with our expectations for the full year and I think the same can be said.

Got it and then just kind of going back to the guidance and Steve's question and Jamie's question um appreciate you thinking through the pull forward on the early awards can you help us more on which of those recent LNTPs or fees that you're budgeting a conversion to FNTPO FID for example the terrible project or the centrist project let me answer that thank you good morning so we always look at things probabilistically so we assign go gets to to the conversion and it's it's always a little bit of a challenge because you have to kind of guesstimate the exact timing or one of the clients going to make a decision so we don't really focus too

much on individual projects we have the potential of an LNG CEO project that in south america contributions from multiple projects that's why we feel good about the guidance that we gave to to the question that was raised earlier to look at is how much of the expected pgm gross margin in the year is already in backlog and that's above 75 percent well above 75 so that

is historic that's a little higher than historical averages so i think there's good conflict barring so appreciate it thank you your next question comes from the line of andy whitman with baird please go ahead oh yeah great excuse me so i guess john we noticed that you had about a 1.1 um a scope adjustment uh that contributed to backlog but not into the awards this quarter uh i you've had these a few of these actually in the past several quarters uh and when it's happened in the past um when you get like customer furnished materials scope increases uh it can change the percentage of completion accounting associated with those jobs that can either force you to book more revenue or de-book some revenue depending on which way the cfm goes in or out so i was wondering um what the impact was to your profits in the quarter from that um and if that has any effect on this year's guidance by pulling or pushing profits in or out of this Yeah, good morning, Andy.

You are correct. The sawtooth effect that you're referring to, we did see a little bit of a negative sawtooth impact in the quarter. It was probably less than a $10 million impact. We will recapture across the balance of 26. So it would also be a bridging item in getting from Q1 run rate.

It wasn't so substantial and worthy of mention, but about – Okay, well, that's still helpful because, you know, when I look at the quarter, you've got the 60 EBITDA that you reported, 37 charge, add back. You're about 20 heavy on SG&A this quarter versus the rest of the year. So you're about at the EBITDA at 120 there. I'm wondering if there's anything else, and then again, to get to the number for the year, you need to be close to 155, 160 on the quarterly EBITDA. So I'm wondering if there's anything else in the first quarter that is unusually low, maybe it's seasonally. I thought like the mission profits were a little bit lower than we expected. Maybe even the core urban was a little bit less than we expected. Was there a seasonal effect or something, maybe a smaller charge that we should be considering in terms of the 1Q base that we're building off to get to that EBITDA run rate. I just want to understand if there's something beyond just the ramp that you pointed to in the second half for some of the contracts you've already won.

No. So, look, I think there's a whole lot of single-digit million-dollar impacts recognized in the anticipating solutions arena on one of their early intel that delineated another. They do help when – That's a really good color.

I appreciate that. Thanks, guys. Have a good day. Thanks, Andy.

Your next question comes from the line of Andy Keplowitz with Citigroup. Please go ahead.

Good morning, everyone.

Good morning.

Jim, with the understanding that the geopolitical noise out there is still quite high, I just want to clarify that you still think 26 new awards could be significantly higher than 25. And then you mentioned LNGC Phase II probability to move forward has increased. Do you think that probability for 2026 FID is high on that project? And maybe just give us a little more perspective on the sizing of the project. Obviously, we know you built the infrastructure up there. You built Transits 1 and 2. But I would assume this is still, you know, many billions of dollars to floor if it does move forward.

Thank you, Andy. Yes, we still feel very confident that 2026 awards are going to be higher than 25 in front of us, Many of which, I was doing the math the other day, it's about 85% of our expected new award revenue we're already working on. As far as phase two, Andy, I think the project is looking very good. You've got the JVP partners that own the project. You have national government, provision government, First Nations, various stakeholders. I know the client has been working very, very hard to put all the pieces of the puzzle together. We're one important piece, and our conversations are going well, and we continue to support the client with information needed for their final investment decision. It's their decision. I think it's going to happen in 2026. It's not up to us, but we're doing everything we can from our side to make the client's decision a positive one. It will be a multi-billion dollar award for us, somewhere between $5 and $10 billion. So you can look at that, but it's going to be a single-digit, multi-billion dollar award.

Very helpful.

And then just referring to the timing, we think it's going to be $26, subject to client.

Very helpful. And then referring to your comments on Middle East reconstruction and or Venezuela, can you give us a little more color regarding your conversations? It's probably early to have too much clarity on the Middle East, but in Venezuela, you talk about having more information in the next few months, which I thought was intriguing. So is that the timeframe we're talking about, where you actually could see real work in Venezuela, maybe as you go into next year? And could you get assurances on that work so it's relatively low risk?

We have a lot of employees today that have worked in Venezuela projects, so we are well poised to do work there. We follow our clients. That's our model. So we're watching very carefully what our clients are saying publicly and privately. And the general consensus is that there still needs to be more clarity for the business environment there is stable and predictable for large investments. And you heard that said by several very high-profile CEOs that could be investing in Venezuela. I think there's a lot of interest from our clients to go into Venezuela. Both American companies and a few European companies, we're talking to them. We have sent people, delegations to Venezuela to talk to these clients, to talk to local partners. A lot of the work we've done in the past was with local partners. those companies are still there and so we're doing we're getting ready for it i i can't tell you what the exact timing is going to be because uh it just depends on when will our clients get comfortable and going there but the opportunity set is huge as everyone knows uh the resources in venezuela are enormous and by the way it's not just oil and gas the infrastructure has to be rebuilt, including a lot of power generation. So there's a lot of opportunity there. I'm also aware that the U.S. government is in conversations with Venezuela about mining resources. There's also tremendous mining opportunities in Venezuela. So that also bodes well for our expertise. So we're watching it closely, Andy. I think because the types of projects that we get involved on are usually large investments, I would expect that our clients would want that level of certainty. So we'll know more about it in the next few months. I just don't know exactly how fast it's going to go.

Yeah, we're staying close to Amon.

Very helpful, guys.

And that concludes our question and answer session. I will now turn the conference back over to Jim Brewer for closing comments.

Thank you, Operator, and thank you for joining today's call. I am very pleased with the momentum we're seeing across our end markets and the strength of our opportunity pipeline. I'm confident that our strategy will deliver growth and meaningful value for our shareholders. Have a good day.

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.