SunCrete second quarter 2026 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the call over to your host, Mr. Rick Black, with Investor Relations. Thank you. You may begin.

Thank you, Operator. Good morning, everyone. We appreciate you joining us for the Suncrete Conference Call to review second quarter 2026 results. This call is also being webcast, and it can be accessed through the audio link on the events and presentations page of the Investor Relations section of suncrete.com. Information recorded on this call speaks only as of today, August 14, 2026. Please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript reading. I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are forward-looking statements made pursuant to the Safe Harbor provision for the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call that by their nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to our earnings press release for our disclosures on forward-looking statements. These factors, as well as other risks and uncertainties, are described in detail in the company's filings for the Securities and Exchange Commission. Management will also refer to non-GAAP measures, including adjusted EBITDA and adjusted EBITDA margin, as well as supplemental adjusted EBITDA. Reconciliations to the nearest GAAP measures can be found at the end of today's earnings release. SunCrete assumes no obligation to publicly update or revise any forward-looking statements. And now, I would like to turn the call over to SunCrete CEO, Randall Edgar. Randall?

Thank you, Rick, and good morning, everyone. We appreciate you all joining today's call. With me this morning are Tommy Wentrod, our Chief Financial Officer and Ned Fleming, our Executive Chairman, along with other members of our management team. I'll begin today's call by providing an overview of our second quarter operations and discussing our active M&A phase. I'll then turn the call over for Tommy to provide second quarter financial highlights and review our 2026 outlook. The NED will provide additional strategic comments before turning the call over for questions. I start today by thanking our more than 1,100 employees across the SunCrete organization for their continued commitment, dedication, and customer-first focus. At its core, this is a people business, and our success begins with the strength of our culture and the talented teams serving our customers every day. We believe our people and culture are fundamental to our ability to consistently execute, to grow our business, and create long-term value. The second quarter marks significant year-over-year revenue growth, including organic growth of approximately 9%, reflecting strong execution across our organization. By unusually wet weather across much of our footprint during the quarter, demand throughout our markets remains strong. We also maintained a highly active pace of M&A, adding five new companies to the Sun Creek platform in the first 60 days after becoming a public company. Our teams are making strong progress integrating these businesses and are executing market-specific improvement plans focused on driving growth, growth, capturing cost and operating efficiency, and expanding profitability. Supported by favorable demand fundamentals across our footprint, including infrastructure investment, population and economic growth, and healthy commercial and residential construction activity, we remain confident in maintaining our 2026 guidance. Now let's discuss our growth strategy. The second quarter was a transformative period for our business. In the quarter, we made significant progress executing our acquisition strategy, completing five acquisitions that expanded our ready mix concrete and concrete products platform to now include six states across the subject. We established a new platform in Texas and Louisiana through the acquisition of Hope Concrete, followed by the acquisition of Nelson Brothers, which further strengthens our position in North Texas. We also expanded our geographic reach further into Arkansas, Louisiana, Missouri, and Mississippi through the acquisition of ABC Block Company, a leading supplier of concrete products headquartered in Little Rock, Arkansas. In addition, we folded in two bolt-on acquisitions, expanding our presence in Louisiana. These acquisitions demonstrated the scalability of our model and the skill and strength of our organization, building a leading ReadyMix network through the acquisition and integration of best-in-market local operators. These new markets represent highly attractive long-term growth opportunities, and we will continue expanding our presence in the region. Buying these acquisitions expanded our capabilities in local markets by adding 31 ready-mix plants, 279 mixer trucks, and 8 concrete production stores. Integrating five companies in a relatively short period of time is a significant undertaking, but it is also an important part of building and scaling the Suncrete platform. While we are still early in the integration process with several of these companies, we are progressing well and remain confident in our ability to achieve our performance targets. As we previously discussed, our integration strategy is designed to bring the margins of acquired businesses in line with Suncrete's historic margins within 9 to 18 months following the acquisition. Of the five businesses currently being integrated, three are tracking toward the earlier end of that time frame, while two are working through challenging markets that might take a bit longer. For example, our acquisition in Oklahoma City in October is already achieving margins consistent with Sun Creek, up considerably from its margin profile at the time of the acquisition. And in North Texas, the broader market remains a more challenging operating environment, which is consistent with our expectations when we entered the market. We have a clear improvement plan in place and remain confident in the long-term opportunity and our ability to improve performance over time. Across all of our acquired businesses, we are making steady progress implementing the SunCrete Operator Model with initiatives focusing on purchasing, pricing discipline, fleet and logistics optimization, and overall operational execution. These efforts will drive continued margin improvement while positioning these businesses for sustainable long-term growth. At the same time, our acquisition pipeline continues to expand, providing additional opportunities to build scale in our existing markets and enter attracting new geographies. Turning now to the construction demand and activity we see throughout our markets. The commercial environment remains strong with new construction projects spanning a broad range of customers from mid-sized projects for shopping strips and retail establishments to larger facilities for manufacturing, warehouses, and distribution centers. In addition, AI data centers are certainly a fast-growing in-market across the region. We are currently participating in several data center projects and expect to see sustained maintained activity in that sector. As a trusted, reliable, and scaled operating platform to our customers in the region, we are well positioned to compete and win in this space. It is estimated 70% or more of the new data center construction nationally is expected to occur in the Sunbelt states. Due to our existing relationships with national and regional contractors and our ability to execute large and complex boards, we believe we are well positioned to gain share in the sector. Before turning the call over to Tommy, I want to state that we are proud of the platform we continue to build and we are excited about our growth opportunities. The combination of resilient demand, disciplined operational execution, and a customer-first culture has continually driven our growth since our inception. with approximately 20% annual growth and consistently strong margins across many different markets. To capitalize on this opportunity, our growth strategy is centered on three primary objectives, gaining strength in our existing markets, driving organic growth, and expanding into attracting new markets through discipline and creative acquisition. central to this strategy is partnering with high-quality local operators and providing them with the scale resources of purchasing power and operational support of Sun Creek while preserving the local leadership and customer relations that made those businesses successful. We believe this combination of local entrepreneurship and the benefit of a scaled company provides a repeatable model for profitable growth. I'd now like to turn the call over to Tommy.

Thank you Randall and good morning everyone. Now reviewing our second quarter results and key financial metrics. Revenue in the second quarter was 97.2 million dollars and increase of 146 percent compared to the same quarter last year. Net loss in the second quarter was 37.1 million dollars compared to the net loss in the same quarter last year of $325,000. In the second quarter of 2026, net loss included a $26.9 million non-cash, one-time charge related to D-SPAC. Adjusted EBITDA in the second quarter was $13.5 million compared to $7 million in the same quarter last year. Supplemental adjusted EBITDA in the second quarter was $14.6 million, an increase of approximately 90 percent compared to the same quarter last year. You can find GAAP and non-GAAP reconciliations of net income and adjusted EBITDA and supplemental adjusted EBITDA financial measures at the end of today's earnings release. Turning now to the balance sheet as of June 30th, we had total liquidity of approximately $51.1 million, consisting of $28.6 million cash equivalents and $22.5 million available capacity under our revolving loan facility. Additionally, in the second quarter, we completed the Fifth Amendment to our credit agreement, which provides an incremental $175 million delayed draw term loan with $100 million accordion and doubled our revolver capacity to 50 million along with increasing capital flexibility enabling us to streamline deal execution this provides the business with ample flexible and efficient capital for growth the second quarter cash used in operating activities was approximately 19.6 million dollars the negative cash flow during the quarter resulted from the combination of elevated SG&A expenses stemming from the inclusion of acquired operations, increased overall headcount, and various acquisition related costs associated with five deals we closed during the second quarter. We continue to expect to convert 60 to 70 percent of EBITDA to cash flow from operations in 2026. Turning now to our outlook. Today we are maintaining our outlook for 2026 that reflects management's current expectations for organic growth and project execution across its core markets and includes the expected contribution of recent acquisitions including Hope Concrete, Nelson Brothers and ABC Block Company following the close of such acquisitions in the company's second quarter. This guidance based on current economic conditions and assumes no significant changes in the overall economy or other conditions in the Sun Belt region. The guidance does not include the potential contribution of any future acquisitions. The ranges are revenue in the range of 420 million to 480 million, income in the range of a net loss of 4 million and net income of 20 million as adjusted for the one-time non-cash accounting charge in the second quarter. Adjusted EBITDA in the range of $68 million to $93 million. Supplemental, adjusted EBITDA in the range of $71 million to $96 million. And with that, I'd like to turn the call over to our Executive Chairman, Ned Fleming. Ned?

Thank you, Tommy. Welcome everyone and thank you for joining us today. Randall, Tommy, Mark Jones, and the entire Sun Creek team have been extremely busy executing a disciplined growth strategy. As Randall discussed, we completed five acquisitions during the quarter and remain actively engaged with several additional prospective sellers. We have built a deep and experienced leadership team that understands the ReadyMix business at a very high level, from sand and rock and cement to finished products. We are proven operators with a relentless focus on customer service, operational excellence, and disciplined growth. Just as importantly, Randall recognized early the opportunity to build a skilled platform in a highly fragmented industry. Suncrete is strategically, financially, and organizationally positioned to capitalize on the long-term growth across the Sunbelt. Suncrete occupies a highly differentiated position within the ready-mix industry. Many privately owned operators navigating generational transition and seeking greater scale and operational resources are looking for trusted acquirers. This dynamic creates a significant opportunity for Suncrete to be the acquirer of choice for high-quality local operators seeking a long-term partner that values their people, entrepreneurial culture, customer relationships, and local market expertise. Our scalable operating platform situates us to drive continued market share gains through a combination of organic growth and strategic acquisitions. Central to our approach is partnering with high-quality local operators and providing them with the scale, resources, and support of the broader SunCrete organization while preserving the entrepreneurial culture, local leadership, and customer relationships that made those businesses successful. Our strategy is straightforward and highly disciplined. Build strong local market positions, partner with exceptional operators, maintain operational excellence, and leverage the advantages of scale across a broader platform. Because ReadyMix Concrete is fundamentally a local business, density, logistics, customer service, and operational execution matter. Our decentralized operating model combined with centralized operational support and financial resources creates a meaningful competitive advantage. As Suncreek continues to scale, the company's increased market density, purchasing power, fleet utilization, and operating efficiencies provide meaningful opportunities to enhance profitability and generate attractive returns on invested capital. Looking ahead, we continue to see a very robust pipeline of acquisition opportunities across our existing footprint and adjacent high-growth Sunbelt market. Importantly, our strategy is not simply about acquiring assets. We are focused on partnering with outstanding local operators, investing in their people and businesses, and creating long-term value together as part of a broader SunCreek platform. With significant opportunities for both organic growth and strategic M&A, SunCrete is well-positioned to build a leading ready-mix platform across the Sunbelt and deliver compelling long-term value for all our stakeholders, employees, suppliers, customers, communities, and absolutely our shareholders. Now, I'd like to turn the call over for questions. Operator?

Thank you. We will now be conducting a question and answer session. We ask that you please limit to one question and one follow-up. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Catherine Thompson with Thompson Research Group. Your line is now live.

Good morning, and thank you for answering my questions today. The first is as you completed acquisitions in late April and May and June, and so you're, as you alluded to in the prepared commentary, doing a bit of digesting. Give a little bit more color just in terms of how integration is going and understanding that the block company integration is going to be a little bit different than both Hope and Nelson. So any color that you have on that and progress.

Good morning, Catherine. This is Randall. The integrations are going at various levels. But we think they're all going well. For example, the Oklahoma City integration is already, their performance is already brought up to the standards of Suncrete's historical performances. Out of North Texas, that's a little more challenges in it, but we still believe we'll get it within our playbook of 9 to 18 months. And so we don't believe there aren't any major issues with integrations, but they just don't happen overnight. Regarding ABC, that has gone very well also. I mean, we have some good management team there, and actually that's gone surprisingly well. We're very happy about that.

Hey, Catherine, this is Ned. I would just tell you that it's hard to project how quickly these businesses really get integrated and come up to the margin with the markets they're in. I think what we're seeing now is they're really all on plan and on point. It's difficult to project month to month or quarter to quarter how that works. As Randall said, OKC came up a little quicker than we thought and has really been a terrific surprise to some extent. I think for ABC Block, it gives us some real strategic opportunities as we move forward. That business has done some unbelievable progress as we've brought into that. It's been a real bright spot.

Okay, excellent. So in the quarter, you noted 9% organic growth, which has given us some pretty challenging weather conditions. I'd say that's pretty good. And as you look at the growth algorithm beyond organic, in focusing on in-market, you alluded to AI driving demand. What are other areas that are driving just core demand from your acquired companies and also organic growth? And where do you see it over the next, does that mix impact over the next, say, 12 to 18 months?

Our markets are still robust. We're seeing a lot of good projects come through, both commercial and obviously some of those are AI. We are getting our share of the AI projects. But again, the markets are solid. We're working on improving margins, looking at costs and more efficiencies right now. Ned, do you have something to add to that?

Yeah, I mean, Catherine, you wrote the book on this. I mean, we've got, you know, $1 to $2 trillion of infrastructure that's going to be built, and we are building a company right in the heart of that growth and that progress. And we're seeing growth, you know, there's a Hyundai plant that we're bidding on putting concrete in. There's AI projects. There's developments going in because the cities are growing. I mean, we see organic growth really being better than we originally predicted. I mean, it's going to be 7% to 10%. And as we add acquisitive growth to that, this is going to be a business that grows strong into the foreseeable future.

Perfect. Thanks so much. I appreciate it. Thank you, Catherine.

Have a great weekend.

Thank you. Our next question comes from Philip Ng with Jefferies. Please proceed with your question.

Hey, guys. It looks like weather contributed to weaker. Hey, how you doing, Ned? It looks like weather contributed to weaker volumes in the quarter, Texas, Oklahoma in particular. But any color, how order patterns trend through the quarter in early August? And have you seen, you know, shipments kind of rebound in July and August? I know Texas is actually still seeing some wet weather, but just give us any color in terms of how trends has progressed through the quarter and perhaps any color on non-weather regions, how it's preparation?

Well, you know, weather primarily impacts our business by they shift the volumes into future periods. You never lose the yard of concrete. It just doesn't get poured on that rainy day. And then typically the third quarter is the strongest quarter in concrete, at least in this, you know, geographical region with the weather patterns we have.

So we believe what we missed in the second quarter is being pushed into the third and then the third quarter tends to have the uh historically you go back third quarter is usually the strongest quarter for a country hey philip we play an outdoor game and it evens out over the years generally i think uh last quarter and as we expand our geographic footprint you'll see weather have less of an impact so we're continue to expand that uh it was interesting to me that uh all of a sudden i'm not watching weather for lots of various reasons uh oklahoma and texas you'd like texas to be wet and oklahoma

to be dry and vice versa so it drives us to expand that geography so that uh we have less impact by weather rando have you seen the shipments kind of snap back in july and august And I guess bigger picture, you guys obviously reiterate your full year guidance, a little tougher out of the gates, the first half. You know, what are the drivers that we should be mindful of in the back half to kind of hit your framework? You know, hopefully you see a stand back in volume. But what are some of the considerations we should think of in the back half? And just given a softer start, you know, is the midpoint of range still, you know, achievable target at this point?

Well, we certainly believe so. Again, we think third quarter will be a strong quarter. Because historically, it always is in the concrete business, even if all variables stay the same. But we also believe an important factor of that will be improving the integration process. You know, we do have a plan. As we mentioned earlier, OKC, we were able to get that integration process in place quicker than anticipated, and it's ahead of schedule, but we still believe in 9 to 18 months. Again, some may be closer to 9, some may be closer to 18, but, you know, we're still very optimistic that we're on pace.

Yeah, Philip, from the standpoint of having done this for now a long, long time with different industries, it's really hard to project integration on a month-to-month basis. We know we're going to get there with them in really generally, you know, 12 to 18 months. Some of them happen quicker, but it evens out over the year. And as we do more acquisitions, you know, we just get better at it. Okay. Appreciate the color, guys. Thanks.

Our next question comes from Andy Whitman with Baird. Please proceed with your question.

Yeah, great. Thanks for taking my questions, guys. I guess I wanted to drill in a little bit more on the second half margin guide. and obviously recognizing that your company has gone through a lot of change with these acquisitions. But some of those were owned during the quarter, and obviously they'll be integrated more up here. But the second half margin guidance is up pretty materially. I guess I'm calculating it somewhere pushing, I don't know, at the midpoint around maybe 20%-ish versus something here like 14%-ish. And so I guess my question is, like, can you talk about some of the specifics that are going to help you? Obviously, volume is one of them. Seasonal, you mentioned that a couple of times, and that's well known. But anything else in terms of things that we should know about to give you confidence? And maybe just specifically, guys, I think it would probably be helpful for everybody involved here to talk a little bit about third quarter specifically. You know, we're halfway through the quarter here. There's a really big range in your guidance for the year. And so just for us all to try to get the seasonality correct, maybe you could help pin that down a little bit more specifically what you got in 3Q versus 4Q.

Well, again, not to beat the weather to death, but, you know, we expect third quarter not to be as of normal weather pattern. And, again, third quarter is typically your strongest quarter in concrete. But we are making good progress on the integrations. that some margin profiles take longer than others. As far as our outlook, I'd like to just turn that over to Calvin if I can. I think he's well-equipped to answer that question.

Yeah, good morning, Andy. I think Randall said it well, right? Integration plays into Q3 results and specifically the margin profile. Again, as weather patterns are better, You have less fixed costs that are burdening your yardage. And then lastly, I would point out that some of these acquisitions are doing quite well. If you look at the Oklahoma City acquisition we did, that's performing right in line with Suncreate's margin profile. And we will see the benefits of that in our strongest quarter coming up in Q3 and Q4.

Got it. Thanks.

Andy, it should be our highest volume quarter. And so the absorption also helps that margin.

Sure. Okay. Great. So then, let's see what else I want to ask about here. I guess maybe just in terms of, I guess, the balance sheet and the capital structure, it's good to have what's officially there now, which is great. We saw the diluted share, average diluted share count, and then we can, thanks for posting the shares on the balance sheet at the end of the quarter. When we look at that share count at the end of the quarter on the balance sheet, we add up the A's and B's. Is that the right number, or are there still shares from the forward contract that you guys sold in the pipe?

Just want to try to understand the capital structure a little bit better and where you are on the proceeds for that as well as the shares. being recognized on the balance sheet there yeah and let me start with your first question this is ned number one is we've got a really strong balance sheet i mean it gives us an opportunity to go we've got lots of uh unlevered capital that we can utilize we've got cash we're building cash as we continue to um provide cash flow um the forward contract they got through it really really quickly, honestly. So we're through all that. I think the share numbers you see are going to be accurate as we move forward. We're excited to be able to provide that and be done with that. We would anticipate having a strong balance sheet and continuing to work to have that. You can see that our multiple cash flow has substantially gone down since we did the DSPAC. I think it was about 3.4. We're now down to 2.5. So, you know, we're going to continue. That's a range that we really like.

Got it. That's helpful. I guess my last question goes back to the margins a little bit. And there's obviously been a lot of fuel cost inflation. And that fuel and energy costs have a way of kind of working them through other parts of the supply chain. Certainly delivery costs for some of the aggregates that our inputs for use could be an obvious knock-on effect of that and I was just wondering what your experience of that was in the quarter and how it affects your outlook if at all in terms of the the margins that you're able to post here in the second half of the year thanks guys I'll leave it there then well we have a fuel surcharge in place it's been in place and it's indexed by you know a federal reference and so we just pass it through okay any other any other ramifications for the downstream?

We haven't seen anything. Demand still remains strong and a lot of projects are still coming out of the pipeline.

Okay, I'll leave it there. Thanks, guys.

Our next question comes from Rohit Seth with B. Riley Securities. Please proceed with your question.

Hey, thanks for taking my question. Just curious on the SDNA, ran about 25 million in the quarter. I'm just curious, what's the right quarterly run rate as we exit the year?

That's about the right run rate, Rohit.

Okay. And then on ABC block, it's not necessarily ready mix concrete. That surprised me a little bit. Are you guys planning to open up or consider other acquisitions in pre-stress concrete?

Well, we're certainly Again, we're pleased with the outcome and results of ABC block, and we think there's some opportunities to consolidate other acquisitions into that. Obviously, there's certain regions that are better markets than that. We're looking at those.

Strategically, it's cement and rock, and those concrete products are made by the same product, so it gives us an ability to utilize our scale. we also have areas where we can add the block that we currently have concrete plants and vice versa so these are two things that really fit hand in glove to be honest with you with terrific margins okay and then on the pipeline you guys had about 60 million of perform adjusted i guess acquisitions in discussions just curious if there you think there'll be anything more being done here before the end of the year

where there's maybe acquisitions sit in terms of executing this year.

Rohit, I would encourage you to stay tuned. Acquisition pipeline looks as good as it's ever been. I would expect us to be making some announcements in Q3 and Q4 this year with some more exciting updates.

All right. Fantastic.

Thanks, Rohit.

Our next question comes from Jerry Sweeney with Roth Capital. Please proceed with your question.

Good morning. Thanks for taking my call.

Good morning, Jared.

I'm going to take a slightly different tack. Everyone, a lot of questions around acquisitions, but I'm actually interested a little bit.

Knowing you, Jerry, that surprises us.

Just wanted to talk about organic investment. Obviously, I think you have some footholds in some regions through acquisitions. What about the opportunity just for organic investment to potentially expand those footholds and is there an opportunity not just to expand them but maybe deliver scale sooner to go after larger opportunities or should we just be looking at acquisitions from that perspective well no we we're looking at greenfield opportunities and organic expansion we recently just uh went into the missouri market in a concrete plant instead of planting Missouri.

And prior to that, we went into the Fayetteville market with the plant. So any of these markets we're in, if we see an opportunity to expand our footprint with the greenfield, we certainly keep that in mind at all times.

What drives the – sorry, yeah. During some of the larger projects that we do with AI, with developments, where we see growth, it gives us an opportunity to really have a greenfield that we know we already have revenue and cash flow for.

Okay, that was my follow-up.

Some of that is we have customer bases. Yep. You know, they ask us to come into that market because we serve them in so many other markets.

That's a good springboard to enter a market and set up a plant and then build your volumes from there. That's one reason why we do that. There's a multitude of them, but that's typically a good reason to springboard into another location.

Can you quantify those opportunities, or is it, yeah, could you quantify those opportunities if possible?

Yeah, I think the easiest way to quantify them is we think organic growth is going to be, you know, probably 8 to 10%. If you look at the last quarter, it was 9%. About two-thirds of that is just the markets we're in, and about a third of that is moving into new markets.

Okay, great. That's it for me. Appreciate it.

Our next question comes from Adam Thalheimer with Thompson Davis & Company. Please proceed with your question.

Hey, good morning, guys.

Good morning, Adam. You know, I think Rick likes you to back clean up.

Yeah, we're seeing a pattern here, which is fine. I wanted to ask, so when you look at national PPI, concrete pricing is actually a bright spot. And I'm curious what you're seeing concrete pricing in your markets.

Well, it's solid. Some markets we have introduced a recent price increase in. but once we're still waiting to see how some of the things unfold in the other markets, but they're holding their ground. We're not going backwards. That's a good thing, right? So no, it varies market by market, and when we see opportunity, we put out a price increase. Oklahoma City is a good example. Oklahoma City is a good example.

And then, Randall, on data – actually, I have three questions on data center jobs. okay so uh how many cubic yards typically do you see with those jobs when you when you start them how long are you typically at the job site and then is the pricing any different well yeah that's that varies a lot to be honest you know we have some that may be 40 50 000 yards but it's phase one.

They could have five phases. You have some that may be half a million yards. Typically on that size you set up plant or plants on that site and those could run a year or more. Pricing on that, again, that varies on the size of the operation and whether or not you have to set a plant up and what market it's in based on freight and material costs. So So there's a lot of variables. I can't really give you one size fits all.

No, but it's a great opportunity for us because once we have a plant on site, there's a lot of ancillary growth. There's communities that go around it. There's retail centers that go around it. I mean, people don't really understand the growth that happens around these AI centers, and it's really part of the infrastructure bill that's going to be probably close to $2 trillion. I think from a pricing standpoint, they're very sensitive to on-time, on-spec. So, as you can imagine, when you're sensitive to on-time, on-spec, you know, for us, that's a really good margin business.

And there's only so many, you know, you have to have a scale to perform that. You have to have engineers on staff. I mean, there's only competition for those jobs is much more limited than general market.

Got it. I'll leave it there. Thanks, guys. Thanks, Adam.

This now concludes our question and answer session. I would like to turn the floor back over to management for closing comments.

Thank you all for joining today, and have a good day.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.