Centuri Holdings (CTRI) Q4 2025 earnings call transcript

Thank you, Angeline, and hello, everyone. This morning, we issued and posted to set free holdings website our year end 2025 earnings press release and investor presentation. Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer term guidance. Some of the information that will be discussed today contains forward-looking statements within the meaning of the private securities litigation reform act. These statements are as of today's date and based on management assumptions and are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals.

A cautionary note, as well as a note regarding non-gap measures, is included in today's press release and the investor presentation and in our filings with the Securities and Exchange Commission which we encourage you to review. Also provided are reconciliations of our non-gap measures to related gap measures. These risks and uncertainties may cause actual results to differ materially from statements made today.

We caution against placing undue reliance on any forward-looking statements and we assume no obligation to update any such statement except as required by law. Today's call is also being webcast live and will be available for replay in the investor relations section of our website shortly after the completion of this call. On today's call we have Chris Brown, President and Chief Executive Officer and Greg Eisenstark, Chief Financial Officer.

I'll now turn the call over to Chris.

Thank you, Ned. Hello to all and thank you for joining our poll today. In 2025, we give up 3 billion of revenue a record per century. We improved our base profitability and produced adjusted net income of $39 million which was a 49% increase over the prior year.

As a reminder, when speaking of base revenue and base gross profit, we are referring to the measures that exclude the impact of storm restoration services. We believe that base results provide our stakeholders with information that is helpful in evaluating fundamental business performance and provide relevant period-over-period comparisons.

In 2025, base revenue increased by 18% and our base gross profit increased by 35% year-over-year. This exceeded expectations and reflects the strength of our company, the dedication of our teams across the US and Canada, and their own way of recommitment to safety, productivity, and delivering exceptional customer service.

I'll start with a commercial update. Coming into 2025, we set a goal to achieve a 1.1 times book-to-build ratio. We didn't just exceed our goal, we shattered it. Doing a 1.5 times book-to-build for the year.

In total, our bookings surpassed 4.5 billion. The mix of bookings included 34% of bid work, 21% of new or expanded scopes of work on our MSA, and 45% MSA renewals. Our strong emphasis on business growth was evident with more than half of the bookings representing true, incremental, appreciative work to our business.

We maintained our 100% MSA renewal rate, and are actively working to secure new customers, and that new work scopes and geographies with existing customers.

In 2025, we had a new MSA across Texas, Oklahoma, Arizona, Georgia, Indiana, Wisconsin, and several other states. On the new bid work, we secured over 600 awards with an average size of approximately 2.4 million. A few notable bid awards included a significant natural steel gas pipe replacement project, major substation upgrade work to strengthen grid reliability and increased capacity.

A mechanical beta recompression system for an ethanol plan. Construction of a renewable natural gas facility. Several projects to rebuild and construct utility-scale transmission lines. Several data center awards with varying scopes of work. Additional scopes of work that includes substations, transmission work, heat pump installation, compressor work, HVAC removals and installs, plus many others.

We anticipate continued strong bookings due to the multi-year tailwinds within our end markets and our $30 billion opportunity pipeline.

Our renewal success and our consistent win rates support our desire for growth. Through February 20, we have booked approximately 1.1 billion, which includes approximately 800 million of MSA renewals, nearly 150 million of new MSA's, and more than 150 million of bid work. So we are up to a very good start in 2026.

For the year, we are targeting a book-to-build ratio of 1.1 to 1.2 times. Our opportunity pipeline includes about 580-bit opportunities, which collectively amount to 6.7 billion, or just over half of our current opportunity pipeline.

At year end, we have 2.8 billion of near-term opportunities, which are active proposals with award decisions expected by the end of the second quarter. These include about two-thirds of new bid work and one-third MSA's, with over 75% within our electrical segments and the remandering gas. If we consider our year-to-day bookings, we may have to propose some prospects, which submitted in the new year, the current near-term opportunity sits around 1.3 billion.

On data centers, we are actively executing several skirts of work at several data center sites. In our opportunity pipeline, we have more than 20 opportunities with an aggregate value of approximately 1.4 billion. We also have dozens of prospects that are not yet included in our pipeline figures, because they are early in the evaluation process. We believe the total value of these prospects could reach as high as $2 billion.

Data center opportunities offer a variety of work skirts for centuries, including power delivery services, like simple cycle turbines, substation compressors, or metering stations, plus core electric work like switch gear transformers, UPS units, and generators.

On the mechanical side, we handle chiller and heat heat system install. Additionally, we will bid on traditional infrastructure work like gas, sewer water lines, plus telecoms by the conduit.

Now, moving over to the backlog. At year end, our backlog was approximately $5.9 billion, an increase of $2.2 billion or 59% from last year. The year in backlog forecast is to provide about 85% of our 2026 base revenue guidance.

More details on bookings, backlog, and the opportunity pipeline are on slide eight and nine in the investment presentation, which we've posted here. Now moving to margins.

In 2025, we reported a base gross margin of 8%, an increase of approximately 100 basis points over 2024, and we have several initiatives under where focused on further margin improvement.

First, we've initiated the plan to address the first quarter seasonality in our gas business. The focus is expanding the volume of work in woman geographies and securing more indoor work. Our goal is to fully address the seasonality of the three years with 2026 being year one. Halfway through this current quarter, we are on track to deliver year-of-a-year improvement at first and boot first step towards our three-year goal.

Second, we'll work into improved fleet efficiency through in bank enhanced supplier pricing, improved utilization rates, and optimal allocation across our business units. Through these efforts, we're in for at least 20% improvement in the efficiency of our fleet.

Third, we have drive improved crew efficiency in our non-union electric segment, which has delivered significant growth over the last 12 months. As crews gain experience and jobs mature, we expect improved productivity.

This margin, this segment, we're up in the fourth quarter, and we expect to see more progress throughout 2026. Finally, given the growing number of bid opportunities and our current win rates, we expect our average weighty bid margin to expand over the very day term.

High bid margins are the first part of the equation, and we will continue to drive operational execution to capture this ververable market dynamic and drive further margin growth.

Beyond the commercial and financial success, 2025 also included several implied milestones. In September, we became fully separated from our form of pairing after completing four successful four on offerings. In November, we closed the acquisition of Connect Atlantic utility services given as a Canadian electric service platform for which we can grow and expand our customer relationships.

We also made significant strides reducing our leverage, and in the year end, we've neglected to adjust the EBITDA at 2.5 times. We are not only driving significant growth in our business, we have to install the foundation of a stronger balance sheet and our own sheet base. We are extremely well positioned to execute each 2026 and look forward to delivering for our shareholders.

Now let's break to discuss the results.

Thank you, Chris, and thank you everyone for joining us today. I'll start with the fourth quarter, which included another record, company record for revenue in overall strong financial results.

Revenues totaled $859 million, a 20% increase from the same quarter last year. Base revenue was $855 million, which was a 28%, which was 28% higher than the fourth quarter 2024. Growth profit for the quarter was $80 million, compared to $71 million last year, and the growth profit margin was 9.4%. Base growth profit was $80 million, which was a 50% increase year over year.

Netting comes the typical common stock in the quarter was $30 million, or $0.32 per share, compared to $10 million, or $0.12 on a per share basis last year. Fourth quarter, netting was impacted by a $23.7 million income tax benefit related to deferred tax asset allocations from our former parents.

Adjusted netting come in the fourth quarter with $16 million, or $0.17 on a per share basis, compared to $18 million, or $0.21 per share in the same quarter last year. Adjusted even off for the quarter was $78 million, which compares to $71 million last year. Our cash flow from operations was $84 million, and pre-cash flow for the quarter was $106 million.

The remainder of my comments will focus on full-year results. Revenue's total $3 billion, a record per century, and was a 13% increase from 2024. Growth profit was $247 million, compared to $221 million last year, and growth profit margin was 8.3% in 2025.

Phase revenues was $2.9 billion, or 18% higher, year over year. Phase growth profit was $234 million, up 35% compared to 2024. Phase growth profit margin was 8% in 2025, versus 6.9% last year.

Net income attributable to common stock in 2025 was $23 million, or $0.25 per share, compared to a loss of $7 million, or an 8% loss on a per share basis in 2024. Adjusted net income in 2025 was $39 million, or $0.43 on a per share basis, compared to $26 million, or $0.32 per share in 2024. And finally, adjusted even up to the year was $249 million, which compares to $238 million last year.

Now to our segments. U. S. gas revenue was $1.3 billion. It increased to 5% compared to 2024. This reflects solid growth in MSA volumes and bid projects, demonstrating the underlying strength of our customer relationships and market position. Growth profit margin was 5.4% in 2025, consistent with prior year. We continue to focus on expanding MSA work and the seasonality initiative that Chris mentioned earlier.

Community operations revenue was $247 million, up 25% over 2024. Operational performance in this segment remains strong against a solid demand backdrop. Growth profit margin was 18.6%, which compares to 15.9% in the previous year.

U. S. electric base revenue was $800 million, an increase of 21% year over year. And base growth profit margin was 8.7%. For the year, it increased to 110 basis points over the prior year. Growth has been fueled by robust activity and projects serving industrial end user segments, particularly substation infrastructure and data center-related work.

Our non-union electric segment had base revenue in 2025 of $569 million, an increase of 51% over 2024. This growth reflects the significant expansion in MSA activity. Base growth profit margin was 8.5% compared to 5.9% in the prior year. As Chris mentioned in 2026, we're focused on performance management and improving crew efficiency.

Now turning to fleet investments in CAPX. In 2025, we began shifting away from the historic practice of purchasing all fleet equipment to a balanced approach that targets 50-50 five years lease. The new funding mix drives better pre-cash flow generation and more balance sheet flexibility. In 2025, we invested a total of $135 million in fleet assets and funded investments through $55 million of operating leases, $38 million of sale lease facts, and $42 million in net CAPX.

For 2026, we forecast fleet investments of $150 million to $180 million, with funding expected to be approximately 50-50 five years lease.

Moving to the balance sheet. In November, we executed an underwritten equity offering and concurrent private placement, raising net proceeds of approximately $251 million. We used $58 million of proceeds to fund and connect acquisition, with remainder use for net debt production. We ended the year with a net debt to adjust the video ratio of 2.5 times, down from 3.6 times at year end 2024.

In 2026, we planned a further de-lover and forecast net debt to adjust the beef up around two times by year end. Last month, we reprised our turn loan be, securing the 25 basis point rate reduction. Based on our current debt level and lower interest rates, we expect 2026 interest expense to be about 30% lower than it was in 2025.

Finally, turning to our outlook. Today, we initiated full year 2026 financial guidance. As we've talked about, base revenue and base gross profit exclude impacts from storm restoration services.

For 2026, we expect base revenue of $3.15 to $3.45 billion, and base gross profit of $255 to $285 million.

Revenue adjusts the beef up and adjusts net income. Our measures include storm restoration services. Guidance to these measures include storm restoration services using a three-year average of $88 million in revenue and $28 million in gross profit. For 2026, we expect revenue of $3.24 to $3.54 billion. Adjust the even up of $280 to $310 million. Adjust the net income of $55 to $75 million.

And lastly, net cap X is expected to be between $75 and $90 million. I will now turn it back to Chris to wrap up for prepared remarks. Chris?

Thank you, Greg. 2025 was a pivotal year for century. We demonstrated our ability to identify opportunities to secure substantial bookings, to expand our footprint and capabilities, to deliver earnings growth, to grow based margins, and to strengthen the balance sheet. The hard work of 2025 has positioned century for continued success going into 2026.

The market backdrop remained very strong across multiple years, with our red market showing no sign of slight. Century office top tier growth while maintaining the low risk profile you expect from us. Our growth has come and will continue to come by focusing our core capabilities, delivering for our customers, and staying disciplined to who we are. We have a diverse, high quality, large utility customer base across gas and electric, union and non-union, and supported by a high percentage of long-term MSA contracts.

In 2025, 70% of our revenue was generated under MSA contracts, and our year-end backlog included 82% MSA work. Whilst we absolutely expect big work revenue to grow at a faster rate than MSA revenue over the next few years, it's important to note that the scope of work under big projects is consistent with the services that would deliver under MSA.

It's the same capabilities only executed under a different type of agreement. Our big work portfolio is also well-diversified, with 285 different projects and an average remaining project value of 3.8 million. For further context, the largest 25 big projects in the pipeline are expected to contribute about 15% of our total 2026 best revenue.

We believe Century represents a compelling investment opportunity, carrying high growth in strong-end markets with a noticeably low risk profile. With further potential to drive margin expansion and capital efficiency through solid execution.

In closing, I want to commend our workforce who are executing day in and day out. Your dedication to operational excellence, to safety and customer service is what earns our reputation as a leading provider of high quality infrastructure services. I thank you all.

We appreciate everybody's time and interest today. I'll hand to the operator so we can start Q&A.

Good morning. We did, when you refer to adjusted even up and total revenue include some level of storm. The storm impact thus far this year has been pretty minor. It's largely in line with what we did last year.

Yeah. And I would say that the spoken activity that we've done thus far, you know, or largely in line with last year, nothing of a significant nature.

Am I reading too much into that? Is there a mixed impact that I'm misinterpreting? Can you help me understand?

No, the growth profit margin would be largely in line with this year, up a little bit on an annualized basis.

What's kind of the expectation for how to think about the seasonality to go through the year? So, Justin, I'll answer the question and then pass over to Greg for any additional commentary.

But we are striving to be predictable and consistent and then build continual improvement. And that should be reflected in everything that you've seen in the last few weeks and few months. So when it comes to sort of margins, you know, it's like our confidence law. We feel very good about being able to deliver it. It reflects the current backlog.

It doesn't assume that we've got lots of things to do to get to that margin. So there's an element of conservatism just to be consistent that we're having our margins. Then we'll go specifically to the initiatives to improve margin. Where's the margin improvement going to go from? The seasonality which you've just mentioned on the gas business and where are we at? You know, it's only one month in.

But we see many positive signs in our ability to find work, to win work in the gas business and push that through to the revenue and the income lines to the P&L. It's only January numbers when we're just getting into February numbers now. But I think we're going to make a big dent in that three-year program to actually make the seasonality in the gas business don't exist in the cross-the-forth waters. So I can't give you much more than that at the moment for obvious reasons, but we are pleased as we closed out the January results.

We're pleased with the volume of work that we're tracking. Then the big work which drives the margins upwards. You know, we are very selective now in the opportunities and the margin that those opportunities can deliver to us. And that's institutionalized across all of our individual businesses, that tend to work every day. And there is, as you see in the slides, we've got very good backlog, very good coverage to deliver our budget as well as the guidance this year.

And there's an opportunity, therefore, with any additional wars to drive magic improvement. And then the third thing, which will take a little bit longer, is the efficiency through our fleet and the indirect costs associated with it. We've mobilized the resources we need. Our priority was to get the funding of our fleet aligned with better industry practices so that we can generate more free cash flow to invest in the business. So we've done that last year, and that's followed further into 2026.

And the focus to the team now is to actually figure out better ways to get more return on the existing asset fleet we've got across all of the businesses operating as long-century. And I guess the last move, the last comment we did allude to it in the comments is on the non-union side, non-union electrics side. We had a massive growth year over year with pretty much negligible amount of storms.

There was a massive mobilization in the second quarter. The third quarter we saw as we signaled to everybody the improvement in margin. Those margins continued into Q4. The workforce now is really stable and functioning very efficiently. And I suspect we'll see further improvement across the non-union electrics as we close out the first quarter all the way through 2026.

Just a quick question. I don't typically look at the win rates just on a quarterly basis. It's more of a trend. And our win rate, our win rates actually have continued to go up all the way through to where we sit today going into February. So if you go back to the 13 months that we've been really driving performance through our sales pipeline, we have seen some improvement. I think the win rates were happy where they are.

Specifically to data centers, your observations are quite right. I think I had spoken about $2 billion of opportunity that we could see, which we got very disciplined on what we will assume in our forecasting, what we really put capital behind to go win and resources to go win. Because you can change a lot of work that actually doesn't conclude with an award. That can be that compared to those.

So the overall focus on data centers remains very much targeted on those customers that we know have capital, that we know are going to award contracts, and that can deliver our returns and our margins. And we are, the wins in data centers so far this year are a little slower expected. But we have a number, we have given to commercial sensitivities awards that we are. That are in our near ten pipeline of about a billion, a billion, five billion, six currently, that we are negotiating all ten during now.

Joel, thank you for your question. I kind of take you all back to the beginning of 25, and I talked about the block and tackling that was needed in the business. And the block and tackling was we needed to get a very effective sales pipeline to predict in a more thoughtful way what workers in the pipeline, what wasn't in the pipeline where we needed to find more work so that we could drive growth into the business.

So the interaction around the pipeline, the institutional of a sales pipeline across all of the operators on a consistent basis is now packed kind of what we do day to day without any hesitation.

We speak about that daily, weekly, month to day, and that will continue. And that's driven the predictability in our revenue growth. It's driven the predictability on margins, and it's driven the predictability on what we speak about forecasting in the business. The second thing we implemented was really tight block and tackling oversight in the business on a weekly and monthly basis, and that's allowed us to not only drive accountability, it's also allowed us to identify opportunities to do better and create more returns.

So there have been the two operational things which will continue into perpetuity with tweaks along the way. The first thing was capital efficiency. You know, we were funding our fleet with all balance sheet cash year over year. We were cash negative, I think four out of five six years. As you've seen from this year's results, we've managed to fund growth in the fleet, but using leasing and still being able to improve margins in the business.

So those three block and tackling items have just become institutionalized in the last 12 months, and will continue to drive growth. Now looking forward, I think if you look at slide nine actually in the deck, we've given more colour around backlog pending awards. You can see that the shift in the amount of work we've got coming into the fiscal 2026 year, and that's continued to grow. You can add the blocks up. We were two billion of backlog going into 25, and we're now over three billion going into 2026.

And our drive now is to capture these market tail links in our pipeline, to build up more backlog to not only do more this year, but build a bigger backlog going into 27. So the block and tackling is fundamental to being a predictable service provider, which is our desire and our commitment. And then using the pipeline to continue driving growth across all our opportunities, so that all of our businesses such that we have a greater backlog going into 27. And we've committed to double digit growth year over year, and we still stand by deck. We believe the pipeline of thought opportunity without relying upon things we can't control like storm.

And we will continue to drive the businesses to at least meet that obligation. That's great color and maybe sticking with that last point when you talk about 2025 backlog and the bookings you've had to date this year represent 85% of the 26 base revenue. When you think about how the organization is sized today relative to that 26 base revenue, what kind of investments are you making? And if the demand backdrop supports something better than the base revenue guide, are you sized for that today or what kind of additional investments will be required?

I think we've got, if you look at slide 9 again and refer back to it, we're not sized to capacity. We've got more capacity that we build. We find we add to the organization every day of every week. I mean, what probably goes and says is the word that our resourcing teams across the nation do every year. We added over 12, in fact, it's nearly 15% headcounting in the last 13 months.

And our desire is to continue to hire at that rate or better. That's the apprentices, that's veterans coming into our veterans program. It's resourcing from parts of the country where we can see people coming out of other adjacent industries. It's cross-training, cross-developing. So in terms of capacity, we will commit, in our guidance, a conservative level of performance that we know we can meet, based upon the backlog we have, the resources we can see and have, and things we can control. We are constantly seeking to add capacity so that we can drag better margins and more volume through the business.

So there is upward potential there as our teams continue to build capacity. Mainly on the people side, I am less worried about fleet. We can have fleet as much as we need, and we can fund it efficiently so that we're still able to generate positive cash. But all the people side is our focus, and we're doing a number of things, some of which I alluded to on the last call, to operate as one century and not as individual opcos, meaning that we can have a more longer-range plan, more wholesome, one-century approach to resourcing across the entire continent.

And we think we can do therefore better in terms of hiring more than 12 to 15% more headcount per year.

Or $28 million of storm on storm revenue of about $88 million. So when you factor that in, when you factor that in on our midpoint, you get something higher than 8.2%. I don't have that number.

It's not meant to be critiquing where we are.

We've given the revenues on the storm. This upon the storm, it leverages.

We can very quickly just do the calculation.

At the midpoint, it's about 8.8%. Okay.

I just wanted to confirm that.

I think 2 billion plus closer to 3 billion. I know, Chris, you don't talk about wind rates, but how should we think about what's kind of baked into the full year guidance when you look at these opportunities, when you look at this funnel? Thank you so much.

I could be probably a little bit more direct. If you look at the slide 9, we told you within the slide there, the amount of backlog we have, and then there is a component of the, in addition to that in the histogram of the anticipated MSA renewals in 2026. And if you add three blocks up, that's actually two.

We don't put the exact scale on it, but it takes us to about 3.2 billion of backlogs for these years, across the three categories. And I think that's exactly where we sit today. So how do we do more than the 3.2 billion of backlog? That's secure backlog. It's very predictable. We've got a good handle on that forecast. So I think I would argue that's as secure as any backlog could ever be. So when the upside potential is going to come from winning new bids, and we got it within that histogram, the work that we have currently bid in addition to that in the first quarter. What is not in there are other opportunities that will pull through the pipeline and into the bidding during the course of the remaining 10 months of this year.

Understand your attempt to be more capital efficient with your fleet. But what parts of working capital are limiting cash from operations flow through currently? How do you plan to improve them? And then where do you think cash from offs can go in 2026 as a percent of sales?

You know, good morning. So from a free cash flow perspective, I mean, we've done a number of things to improve in 2025 from the fleet efficiency to the refinancing of the debt. We are still hyper focused as a team on reducing our DSO and working with our customers to build our bill. Build our revenue quicker and get collected quicker. And so that is, that is the primary focus of 2026 from a free cash flow perspective beyond the capital efficiency work that we've already discussed. And we think we can make some pretty meaningful progress and improvement in that on that front. From a conversion perspective, you know, we look at it on a pre-cash flow conversion of adjusted EBITDA.

And we look about where our peers are. And we think on a longer term basis, you know, 50% conversion is where we can target.

I mean, thank you for the question. I think we've tried to sort of demonstrate in the illustrated diagrams in the deck and then maybe some of the talking points that we're not actually bidding very much standalone fiber of telecoms work. There's a little bit actually not with the border in Canada. But what we're finding is that as part of the data center scopes work, they're rolling in the customers, a number of discipline types of work, including fiber, gas connections, electrical connections, and all of the other scopes work you see in the illustrative. We're not we're not building out telecoms business with it within century at all.

Appreciate that. And then just as we think about the did work awards that you're thinking of for this year. Would you expect it to have a similar revenue burn kind of phasing as the did work that you were awarded last year? Or could we see that timing differ materially this year?

I've been a very good question. I think you you'll see. I think it'll be exactly the same profile on very similar. Why is that? You know, the average contract size is not changing.

The size of the pipeline is many for many very solid teams are very much focused on booking through the four quarters and taking away booking seasonality. So I think the profile will look very similar to last year. I don't see any of the underlying impossible changes necessarily at all. You know, you've got a couple of, you know, on the end of the day, they're slightly different, but not the big work.

I think we closed out the year of 30% of the big work went to the revenue line. If you actually go back and look at the third quarter numbers, so really nine months of the year was the highest number. So clearly what book you work early with the year, we absolutely burn it. The big contract will be booking in the fourth quarter, typically a really, but 2026 old for the following year, which is why the percentage went down from 45 to 30%.

Right.

Okay. Appreciate it. Thank you.

Chris, when you talk about reducing the Q1 seasonality, are you trying to get smoother across the year? And in general, you know, is the goal to make Q1 look a lot more like a traditional Q2?

The answer to the question, Chris, is our foot is yes. Our desire is to deliver 7 plus gross profit, 7% gross profit margin in our gas business for four quarters of the year. We're currently doing it in three quarters.

And now the driver. We absolutely, we've had some successes on the bookings. You've seen them. We've announced them. We just need to do more. You can't do it all in the sort of six to seven months that we've been working at it. So the desire is, as you said, is to get rid of seasonality across our gas business and deliver 7% plus gross profit each quarter for four quarters of the year.

And that's how you recommend them.

What are you seeing in general in M&A and, you know, what sort of aspirations for tuck-ins do you have at this point?

Yeah, I'm going to be pretty consistent with what you've heard from me in the past. I think we really like our platform with where we are. We've got good scale. We've got good ability to grow organically. So we're not sure the scale in the business. Took in acquisitions to which you're fair. Again, I'll be consistent. I think we've got some white space in the Midwest. I think we could do with more capability there. That lends itself to a possible acquisition.

And I think on the transmission, electrical transmission and to a lesser degree, the distribution. I think we do need a little bit more of a geographic presence in that market. So that lends itself to a token acquisition. So our focus would be on finding acquisitions that could sit into those two needs that support the business.

And do you expect to have some more tangible, you know, bookings throughout 2026? Yeah, Chris, I will tell you that I need to be a bit crisper in my commentary. You know, we're very disciplined on what we put into our sales pipeline. That forms the basis of our forecasting. And when it comes to data centers, we're hyper disciplined because there are so many opportunities around that. Really don't have funding as just developers who are trying to create an option that may never lead to something to anything. So when I talk about data centers of the discipline, the only thing that goes into the pipeline that we follow are those data centers where we have got dialogue going.

We've got dialogue engaged with the developer or with the end user who has capital and is going to deploy capital and it's a real project. And where we can't get that confidence doesn't mean to say we walk away from it. It just remains as a lead within our sales pipeline with no value against it. So there's two numbers I've given out, like three numbers, actually.

There's about two billion of opportunity we see in the pipeline where we feel there's a high probability that that will get funded and there will be real projects which will allow us to generate revenue, a solid high profit from it. Up to 2 billion, 1.3 billion is real today where we've got comfortable. Client has funded all of Permistry and Players and it's a real contract.

We have centering that billion three as we speak. We'd expect our first share of bookings from that billion three in the first six months of the year.

Or are you going to try to stay within some kind of range? It's a good question, but if you just go back to the principles of how we're explaining our business and how we are driving our business.

We can't control the weather, but we can control our base business and the work we do for our customers 365 days a year. The non-union business has increased by over 50% year over year. The majority of those resources, almost all year, work on system doing the day-to-day work for our customers. That fact that we have increased that headcount in the non-union business doing the day-to-day services on system for our team, the customers. If there is a weather event, that gives us more upside potential for the business to generate higher margins and higher revenue from storm. Yes.

I will now turn the call over to Nate Catlow for closing remarks. Please go ahead. Thank you all for joining us today and for interest in Century. Please feel free to reach out to me with any follow-up questions, and this concludes today's call.