Hello, everyone. Thank you for joining us and welcome to Floor's Second Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow management's presentation. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. A replay of today's conference call will be available at approximately 10.30 a.m. Eastern Time today, accessible on Floor's website at investor.floor.com. The web replay will be available for 30 days. At this time, for opening remarks, I would like to turn the call over to Jason Landkammer, Vice President, Investor Relations. Please go ahead, Mr. Landkammer.

Thank you, Jade. Good morning and welcome to Floor's 2026 second quarter earnings call. Jim Brewer, Floor's Chief Executive Officer, and John Regan, Floor's Chief Financial Officer, are with us today. FLOR issued its second 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 to our safe harbor note regarding today's forward-looking statements, which is summarized on slide two. During today's presentation, we'll be making forward-looking statements which reflect our current analysis of existing trends and information. There is an inherent risk that 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 in 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 today's slide presentation and posted in the Investor Relations section of our website at investor.floor.com. I'll now turn the call over to Jim Brewer, floor's Chief Executive Officer.

Jim? Thank you, Jason, and good morning, everyone. I'll start by reviewing some highlights from the quarter. Please turn to slide three.

As we previewed on our call in Q1, the pull-through capture of our prospect pipeline is taking flight.

New awards for the quarter were strong at over $6 billion, and backlog grew to almost $27 billion. These figures support a book-to-build ratio above one for the full year. We didn't expect some of these awards until the back half of the year, so it's a positive outcome that our clients are accelerating these decisions. Second, and equally important, this growth is coming from a range of end markets.

Clients are choosing Fluor for our ability to deliver large, complex projects.

In the quarter, we completed two legacy infrastructure projects and expect the other two remaining projects to complete by the end of the year. And finally, with the award of the Centris Fuel Enrichment Project, FLUR continues to build its presence in the nuclear value chain. I will expand my thoughts on this in a moment. Turning to slide 4. Last quarter, I discussed our prospect pipeline and the work required to mature these opportunities into full EPC awards, which then drive backlog and EBITDA. This quarter, we had significant front-end work translate into full EPC programs supporting nuclear fuels, fertilizers, copper, and midstream. This is shown in the dark blue area of the chart. Furthermore, as these front-end projects graduate to EPC status, we are replenishing the pipeline with new front-end opportunities in our target markets. Shown in the lighter blue, these opportunities include fertilizers in the UK, data center work, copper in the Americas, domestic refining, nuclear power, chemicals in the Middle East, and LNG. We are leaning into these growth markets and investing time and effort with our clients during the planning phase to set projects up for success once they are fully funded and released. Turning to slide 5, Urban Solutions continues to contribute a majority of our revenue and will drive further growth over the next several quarters. In mining and metals, our clients have signaled more robust capital spending over the next 18 months. Our in-house M&M pipeline includes nearly $30 billion of potential awards in this timeframe, And we expect to capture a significant amount of these opportunities. In infrastructure, we've had an active quarter. On the LBJ project, all main lanes, toll lanes, and side roads have been turned over to TxDOT. We also completed the Oak Hill Parkway in Texas, the Red Purple Line Elevator Rail Project in Chicago, and the Gordie Howe International Bridge. The bridge opened to traffic on July 27th. During the quarter, results for this project were impacted by the effects of foreign currency fluctuation, the bankruptcy of one of our subcontractors, and client-driven changes. We continue to work collaboratively with the client, our partners, and subcontractors to resolve the remaining commercial matters. For the quarter, Urban Solutions' new awards were $3.2 billion and include construction management for a copper mine in Chile, a feasibility study for Anglo's fertilizer project in the UK, an expanded scope for a fertilizer project in Canada, additional scope on the life sciences project in the US, and an infrastructure project in Europe. Looking ahead to our prospect pipeline, we're well positioned for new life sciences work. A rare earth magnet facility, two copper projects in South America, and an aluminum rolling mill for an existing client in the Middle East. This will work for Terra Wolf and their data center in Kentucky. On a limited release basis, we're currently providing project management and engineering services and are working towards finalizing the commercial terms of the EPC contract. Moving to slide six. In Energy Solutions, as you know, we have closed out several mega projects in recent months. We're now executing front-end work that we've booked over the past few quarters, which will support the next wave of EPC projects. Starting with power, demand for electricity generation continues to build, driven by data center growth, industrial expansion, and broader electrification. That demand is creating a meaningful set of opportunities in domestic gas-fueled power, where clients are engaging us and seeking to advance work under reasonable commercial terms. We are working on a front-end basis for a combined cycle project on the East Coast, and we recently submitted our proposal to another client for two single cycle projects in the Midwest. We're also advancing a standardized combined cycle design for a third clients. These collective efforts will support meaningful growth in our backlog in the first half of 2027. In nuclear, we're progressing the feed work for the X-Energy Dow project and are preparing a detailed cost estimate for the Cernoboda project in Romania. We're also in discussions with SMR and traditional nuclear technology providers for several opportunities. In the oil and gas space, we recently signed a long-term agreement with Aramco. This contract positions Fluor to support a broad portfolio of capital projects around the globe and extends our decades-long relationship with this important client. Last month, we announced the sale of our equity in the Mexican joint venture for $175 million. Over the past 30-plus years, our joint venture completed numerous projects across Mexico's oil and gas, power, mining, and manufacturing markets. We are grateful to our partner and to our employees for the tremendous successes we shared, and we are proud of the legacy we have built together. Now, given our current strategic priorities and the expected capital spending cycle in Mexico for the rest of the decade, we determined it was the right time to conclude this joint venture. This step gives our former partner more autonomy to pursue opportunities independently. And for FLUR, it sharpens our focus on our targeted growth areas and bolsters our liquidity further. New awards for the quarter include the Limited Notice to Proceed for Phase II of the LNG Canada project. This award enables early planning and advances key activities in support of the client's proposed final investment decision expected later this year. We also started execution of a feed package for a new aromatics facility in Bahrain and booked a gas compression project for a West Coast client. Over the next few quarters, we are positioning for front-end work in the Canadian oil sands, and we're seeing a notable uptick for front-end refinery work domestically that could translate into EPC work in 2027 and 28. With regards to the Middle East, we continue to monitor the evolving situation. The well-being of our employees and their families continues to be our highest priority, and we have been able to execute the work in backlog without significant disruption. We remain engaged with our clients on additional opportunities and are well positioned to support them once the situation stabilizes and they're ready to move forward. Turning to slide 7, Mission Solutions continues to work for the Departments of Energy and War while expanding into additional EPC opportunities. During the quarter, we received an additional task order to support Operation Epic Fury and an extension to an intelligence services contract. When combined with the two-year extension received last month, every ongoing intelligence contract in our portfolio has been extended this year. Prospects for the next few quarters include the rebid for the Savannah River program. As a reminder, under the rebid, the M&O scope and the plutonium bid project project will be combined. Our proposal is in, and we're confident in our value proposition. While we anticipate a decision early next year, we do expect a six-month extension for our current work at this site later this year. Finally, during the quarter, we booked an award on the Centris Fuel Enrichment Facility. This significant award demonstrates our ability to apply our project delivery experience to combined mission of national security and energy independence. And while we're on the topic of nuclear, and before I turn the call over to John, I'd like to expand on our broader nuclear offering and how it supports our growth strategy. Please start to slide in. Fluor's experience spans the full life cycle of the industry, including commercial power generation, plant operation and maintenance, SMRs, nuclear fuels, national security, lab management, decontamination, and decommissioning. Started with conventional power gens, FLUR has performed design or construction work on 21 nuclear power plants. Beyond initial construction, we have supported ongoing operation of the domestic nuclear fleet through maintenance, outage, and operational services at more than 90 reactors nationwide. Internationally, we're currently executing front-end development work for a two-reactor expansion at an existing PowerGen station in Europe. In SMR technology, we continue to build capability across multiple platforms, including NuScale, X-Energy, and a third technology partner, which we hope to unveil in the near future. Across nuclear fuels, FLUER is helping expand uranium enrichment capability in the U.S. With our recent award, this work complements decades of experience spanning uranium mining, conversion, and enrichment. In national security and site management, FLUER supports some of the nation's most critical nuclear security and strategic infrastructure programs across BOE and NNSA sites. And finally, in environmental cleanup and decommissioning, FLUR has led some of the world's largest and most complex nuclear remediation, waste management, and site closure programs. Taken together, FLUR has meaningful experience across the full nuclear value chain.

And as global investment in nuclear infrastructure accelerates in the coming years, we believe this capability will continue to create attractive opportunities for us i'll now turn the call over to john for a financial update thanks jim and good morning everyone today i want to spend some time covering a few topics namely q2 results the divestiture of our jv in mexico and our updated 26 guidance including the capital returns expected in the second half please turn to slide 10. $4.3 billion, up 9% from a year ago, as we saw strong in our portfolio. Grove adjusted EBITDA to $149 million. Compared to $96 million, a Q-adjusted EPS was $0.91 compared with $0.43 slash $6.9 billion and reflects our sizable Q2, $650 million of backlog. Former JV in Mexico logged preemptively, even though we didn't close the sale until Q3. I hope this kind of transparency helps our investors' legacy project prospect $20 million at the end of Q2 and will continue to wane across the back half of 26. Let's review our business segments since reported a Q2 segment profit of $38 million compared to $29 million a year ago, $44 million in additional losses on the Gordie Howe project, which stemmed from the factors reported a segment profit of $88 million compared to only $15 million a year ago. Our contributions on projects nearing completion, this evidences the high quality of our $25 million last year, primarily by improved fee performance across our DOE portfolio. Let's move to slide 12. We did Q2 with $3 billion in cash and cash equivalents compared to only $3.2 billion at March 31st, meaning we have robust liquidity to support continued share repurchases and pursue inorganic opportunities. Looking ahead to July 31, we've seen a slight increase back to $3.2 billion. The reported operating cash flow for the quarter was a negative $317 million. This includes a tax payment of $357 million associated with the conversion of our new scale shares in 2025. So the result without the tax effects would have been $40 million of positive OCF on a more normalized basis. It's Q4 of last year, so it should come as no surprise. completed 96 million in q2 funding including 43 million reflected inside of ocf we only see an additional 94 million in future funding could be concluded in q3 we certainly have the liquidity to make those payments now until our partners also fund it will be momentous to put this execution chapter behind us jim mentioned in july we sold out of our jv in mexico for 175 million pre-tax book gain of $90 million and a tax payment of $33 million, which we funded earlier this month. We saw diminishing backlog and limited prospects, so it made sense for both parties to pursue other opportunities aligned to our different growth. Turning to our revised guidance on slide 13, we'll talk you through the components of our EBITDA bridge from our previous midpoint to our new target. We incorporated the foregone profit of about $23 million in the second half of the year that would have been generated by our former JV in my comparable starting point $519 million and more of that heightened transparency from our lost contracts. The good news is that with the Gordie and LBJ projects now complete, we can focus our remaining efforts to improve performance across our portfolio with segments delivering at most cases. Despite the continued hostilities in the Middle East, we saw no impact to our guidance directly related to the conflict. We do continue to evaluate the implications for our clients and any residual impacts on our supply chain efforts across the existing portfolio. While the region remains a source of uncertainty, our Q2 new awards demonstrate confidence from clients generally moving forward with capital projects outside the region. Turning to slide 14, These considerations, our revised adjusted EBITDA guidance is $500 to $525 million, which implies an adjusted EPS range between $2.70 to $2.80 at our current repurchase tempo. Our key full-year assumptions are an adjusted operating cash flow guide to $320 million, which exclude the Q2 tax payment directly related to NewScale and the Q3 tax payment for our JV sale on transactions investing cash flow. I'll point out this is a slight raise to our earlier guidance. well above 1 to 15 million across the full year for a potential replacement of our ERP and for other technology enhancements. Assume tax rate of 20, which includes for the Q3 sale of our Mexican JV, 65% urban, 20% energy, and 15% mission, which is unchanged from our May Guide. Segment margin expectations. 3% in urban, 7% in energy, and 6% in the last quarter. Our capital allocation priorities remain centered on returning meaningful value to shareholders while preserving flexibility to in the second quarter we continue to execute against that framework, repurchasing 6 million shares and deploying $300 million. $4 billion of repurchases. Beyond the share repurchases, long-term growth in our chosen end markets. This includes continued investment in our capabilities, systems, and people, disciplined evaluation of inorganic opportunities in selected growth markets that are aligned to our strategic objectives. We reflect on the quarter. Our core business remains healthy. We delivered strong awards in the quarter, and we have taken decisive steps to further simplify the portfolio, complete our legacy projects. Operator, let's open the line for questions.

Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question, and if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jamie Cook from Truist. Please go ahead. Hi, good morning. Hi, good morning.

I guess my two questions. One, obviously we had the favorable closeout in energy solutions. John, just any way you can help us think about the underlying profitability of that business, excluding that, you know, the favorable closeout, understanding, you know, that's, you know, good that you guys got the favorable closeout, but just any help there so we can think about normalized margins. And then I guess my second question, Jim, it was nice to see the $6.1 billion in new awards. Obviously, things are moving quicker than you had anticipated. So that's a positive. How are you thinking about the book to bill? And I'm just wondering, given what we saw in the first quarter? Are you seeing any other projects move forward at a more rapid pace than you initially expected versus last year? And does that contribute at all to the 2026 guidance?

The offer on the closeout have been drawing to conclusion. And so when we generally refer to closeout efforts, we are talking about subcontractor settlements. We are talking about warranty satisfaction. And so the closeout efforts themselves really represent that could have been recognized theoretically. Those efforts did contribute meaningfully to Energy Solutions. Looking ahead to the back half of the year, you do see some diminution in the PGM or the segment profit percentage in Energy Solutions as they begin to reload their business with things like maybe a large LNG. So what you'll see in the back half of the year is that urban solutions is more meaningfully contributing to the absolute quantum of EBITDA as opposed to energy solutions. So it'll be – John, just one clarification.

Sorry, one, John, clarification. Was the favorable closeouts embedded in your original guidance? And then I wanted to thank you on the EBITDA bridge for guidance. That was very helpful.

Thank you. Yeah, I would say in large part, yes, those closeout efforts were maybe just an acceleration from the back.

Okay, thanks, and then go ahead, Jim, on the new awards.

On the new awards, yeah, we were very pleased with the 6.1 in Q2. The prospects that we're tracking for Q3 and Q4 are looking very good. Magnets is a big data center prospect. It's always a rush to predict the exact timing of these full releases. I will tell you that we have enough resilience in that plan that we feel very good about a book to build well above one. I don't know that I see a trend in many of them being accelerated, but I feel pretty good about a pretty good book to build ratio by the end of the year.

And now we're saying well above one versus above one?

We did say that. That's what we have said, yes.

Okay, well above. Thank you. I'll get back in queue. I appreciate the call.

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

Hey, good morning, everyone. General John, it's good to see the progress on the legacy projects. I think that backlog is now only at $119 million. Maybe you can just update us on where you are on the remaining projects, and particularly the mining project. It seems like, you know, no news is good news, so maybe talk about percent complete there and how that's progressing.

Thanks, Andy. I'll take that. So the project continues to advance. We have already started handing over early portions of the project to the client, and we'll continue to do so throughout this year. Now, that being said, we're working with the client on some additional scope items, Andy, that once agreed would likely impact the timing and the schedule of the project. So, we've made some good progress in certain areas, some other areas we need to resolve with the client to further advance them.

Okay, and when would we find out about that scope changes?

Conversations are ongoing. I would say it would take a couple of months to resolve that.

Okay, got it. And then, Jim, maybe just sort of backing up, and I'll call it sort of the data center ecosystem projects. You sound more positive on the power projects, more customers. Then, obviously, there's Tara Wolf, and I guess I'll include the Magnum facility in the U.S. on that. Do you sense that there's just a wider variety of projects that you can get on your terms, and what does that mean over the next few quarters for your bookings and your potential earnings?

That's right, Andy. We see power to be the best play for us in the whole data center ecosystem, and we've made some great progress in recent months. I mentioned in my prepared remarks several projects. We're working on the front end with various clients not just with with one client and we're we're advancing these projects nicely towards an epc negotiation and award because we're doing it in a methodical way and we we don't want to convert to lump sum until we can properly understand the price to risk my sense is that these things will happen first half of next year so that's that's why we're saying these front-end activities are going to lead to meaningful awards this half of next year. Around data centers, we are working very closely with the one client for the data center in Kentucky. We are looking at other opportunities, but as we said before, many of those projects don't quite match our selectivity and our sweet spot, so we will continue to look at the data center market selectively. And if we can find the right opportunity, we'll go after it with full force. So power number one, data center number two.

Appreciate it.

Thanks, Eddie.

Your next question comes from the line of Sanjita Jain from KeyBank Capital Markets. Please go ahead. Good morning. Thank you for taking my question.

So if I can start with the centrist working first. Can you walk us through when we should start to see that project burn in revenue for you and what the margin profile would look like versus your current MS margin?

Let me start with the timing of the project. So we have been working on that project, Sangeeta, for at least six months in the early phases. We took the bigger award in Q2. We have a full team, several hundred people working on that. We have started some early procurement. And because this is, you know, a percent of cost completion, the margin take-up is a function of the procurement and the construction. So we're going to see some of it this year. But I think the heavier side of it we're going to see next year and beyond. That's right.

Sengit, maybe I'll say that when you look at the EBITDA bridge that were in the prepared materials, certainly the Centris Award is that pull-forward effect. The pull-forward effect of Q2, close-out effects were certainly a factor there.

Got it. And then on the new EBITDA guide, I just want to see if you're including any probability the adjusted potential charges on the mining project that Andy referenced earlier or LAX or LBJ or vice versa, if there are any positives there?

So maybe I'll somewhat evasively answer the question. So we're not going to get into the mechanics of exactly how we develop the guidance range, but we are looking across the portfolio and looking at a risk-adjusted outcome suite on those.

Perfect. Thank you. Your next question comes from the line of Michael Dundas from Vertical Research. Please go ahead.

Take that. Good morning, Jason, Jim, and John.

Good morning. Good morning, Michael.

Maybe, Jim, you know, again, encouraging on the booking. Seems like we're going to get some more here in the second half into 2027 of a good pace. Make sure what the back or the margins, the asshole margins coming into the backlog of these suites of projects, more of the EPC relative to some of the feed, relative to what we've seen booked maybe over the last 6 to 12 months. and is that de-risked and is the terms and conditions on these contracts leading to more visible profit pickup as you move through the cycle?

Yeah, Mike, not only are we encouraged by the revenue side of these new awards, but we're also very pleased to see that margins continue to take up in our new awards compared to what we had in backlog. So it's an encouraging trend. Overwhelmingly, the awards were on the reimbursable side. But even then, the margins are ticking up. So that is a combination of very selective commercial negotiations, which is us pursuing projects where we think we can add value, and the client recognizes that. Now, as we take on some lump sum work in the future, whether it's an LNG or power, you would also expect those margins to be higher. And we're making sure that those estimates have enough contingency in there so that we protect our margin well. That's part of the smart lump sum strategy. So my hope and my plan, Mike, is to continue to drive margin up in the backlog. And as that backlog grows, we had a good step in this quarter, but we need more of that. We need to continue to see backlog growth in the next few quarters. And as that happens, I think you'll start seeing that margin translate into the income statement. Excellent.

I appreciate that. And, John, you mentioned with the significant cash balance and the profile you have, you're starting to sharpen up a little bit more on inorganic opportunities. Maybe you could share a little bit about early stage. What do you think? What do you need? And, you know, since we haven't had many acquisitions before over the last several years, of the process, the development team, and what we should be thinking about on size and kind of what skill sets you need in your now new asset-like business, I guess.

Yeah, well, it won't be, you know, heavy steel business. I'm confident we can say that. Look, I think whatever we're looking at is certainly aligned to our, you know, strategic end markets, so that's going to mean power, mining, government service that feature security clearance, and then, you know, in terms of size, you know, that is, you know, we certainly feel a finish line, and I think you'll understand that specifics on anything until we have a deal in hand.

Appreciate that. Thanks, gentlemen.

Your next question comes from the line of Andy Whitman from Baird. Please go ahead.

Good morning. Thanks for taking my questions. Jim, I wanted to ask about the mining. The press release talks about how some of your metals and mining revenue is starting to ramp, and your comments about $30 billion of relatively near-term opportunities. Just hoping you could drill into that a little bit more. Do all these $30 billion have you guys listed as the feed agent on this one? And I'm guessing that's what gave you the confidence. What is it going to take for some of these to actually wind up as final investment decisions? Do these need governmental approvals, other permitting, things like that? What should we be looking for? And then also I'd be kind of curious as to where the margin profile on these jobs and risk profiles stands. Thanks.

Thank you, Andy. Happy to answer the question. So yeah, we did say in remarks roughly $30 billion of in-house pipelines, so we're doing the studies on these. There's other projects that we're tracking outside of $30 billion that are not currently in-house, but the $30 is just in-house. Let me step back. When we say mining and metals, we're talking about primarily copper, fertilizers. The fertilizer market is picking up. Mined fertilizer, potash and the like, And metals, metals being steel and aluminum. So that's the primary universe of commodities. Geographically, fairly widespread, South America, North America, Australia, UK, Middle East. So our mining and metals market is more global than any of our other markets. What are the main hurdles to overcome to get to a full release combination? Some of it is regulatory and permitting, but I would say the majority of it is clients are looking for capital efficiency. They want to make sure that their investments are going to pan out and be profitable. And so we are working very, very closely with our clients to make sure that we're only designing what's actually needed in that plan. Minimum viable solutions is the term. and we're working very closely to try to minimize the impact of escalation, supply chain disruption, and all the noise that you hear in the market. So I would say that that's the biggest hurdle is how do we work together with the clients to make sure these projects are economically sound. And we feel very good because the commodity pricing for these things are pretty high. So there's demand for copper, fertilizers, aluminum, steel, et cetera. So there's demand in those end markets, and we feel that. I can't say that all of them are going to go forward, but I think a good chunk of them will go forward.

What's on risk that you might be taking and or margins associated with that?

Most of the vast majority of the work is going to be reimbursable, lower risk, attracting margins that have been historic margins in the mining and metals business.

And then, John, just one question on you, just on backlog conversion here. Obviously, the backlog and the awards for the quarter are one of the highlights here. You drill a little bit deeper and we look at remaining unperformed performance obligations here. It actually looks like within one year, content there has been trending a little lower. So should we assume that this backlog is extending in its duration? What does it mean about kind of when you see the earnings growth profile or EBITDA accelerating? Is that really more of a 27 event or is it beyond that? I'm just kind of curious as to how we should read the RPOs versus backlog and how you see that conversion.

Yeah, yeah. So on the RUPO front, which we do kind of, you know, as we think about that, what you're seeing is the impact of a lot of those large energy. I don't think there's anything anomalous about the difference between some of those maybe energy projects, the reload in Qt, but with...

It's helpful. Thanks, John.

Your next question comes from the line of Judah Aronovitz from UBS. Please go ahead.

Hi, good morning. Thank you for taking my question. On for Steve Fisher today. I just wanted to ask one further clarification on the EBITDA guide, if I could. You mentioned that the $90 million pre-tax gained from the sale. Is that also factored in? And then, you know, just wanted to gauge your confidence in achieving the new guide for the year. You know, you're implying a small step up in the second half relative to the Q2 run rate. So what are the moving pieces between Q2 versus Q3 and Q4? And, you know, is there anything else you still need to book, or are you covered for the year? Thanks.

So the $90 million gain is into the back, different in terms of the contribution from Q on the mission side. Energy kind of goes from, and Urban Solutions meaningfully picks up their EBITDA generation in the back. But in terms of new awards, paying the guide, that's not really critical because, you know, the things that we would just begin burning into our income statement and beyond, So, I think that leads us to the conclusion that a majority of the expected EBITDA in the second half already reposes within our back.

Just one clarification on that. So, the $90 million gain outside of your guide, would that be excluded once recognized? Is that what you're saying? Okay. That's helpful. And then, you know, you mentioned a bit of a ramp in urban in the second half. In Q2, I guess, excluding the charge, margins were still below. I think you target 3% to 4% in that business. So it was a little bit below that. So could we see margins improve in the second half, or is it more on the revenue side? And in terms of margins, what are the key drivers in getting the margins higher? Is it better utilization, or is the mix changing at all? Thank you.

There is a little bit of a mix. implication there. But yes, we do expect a slight uptick in urban margins in the back half. I think that's more just the way the portfolio is going to perform and what the different margins are within. But I don't think there is anything that will be earth shattering in terms of the print when we get there.

At this time, there are no further questions. I will now turn the call back to Jim Brewer for closing remarks.

Thank you, operator, and thank you for joining today's call. I am pleased to see solid momentum across our end markets and continued strength in our opportunity pipeline as evidenced by a strong Q2. Thank you and have a good day.

This concludes today's call. Thank you all for attending. You may now disconnect.