Good day, and thank you for standing by. Welcome to the Dycom Industries, Inc. fourth quarter 2026 results conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Ms. Callie Tommaso, Dycom Industries, Inc.'s Vice President of Investor Relations and Corporate Communications. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Dycom Industries, Inc.'s fiscal 2026 fourth quarter and annual results conference call. Joining me today are Dan Peyovich, our President and Chief Executive Officer, and Drew DeFerrari, our Chief Financial Officer. Earlier this morning, we released our fiscal 2026 fourth quarter and annual results, along with certain outlook information. The press release and accompanying materials are available in the Investor Relations section of our website, including a new outlook expectation summary document which provides additional outlook metrics beyond what will be discussed on today's call. These materials, which we will discuss during today's call, include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Our discussion and these statements reflect our expectations, assumptions, and beliefs regarding future events and are subject to risks and uncertainties that could cause actual results to differ materially. A detailed discussion of these risks and uncertainties is included in our filings with the SEC. Forward-looking statements are made as of today's date, and we undertake no obligation to update them. Additionally, we will reference certain non-GAAP financial measures during today's call. Explanations of these measures and reconciliations to the most directly comparable GAAP measures can be found in our press release and accompanying materials. Before I turn the call over, I would like to note an update to our segment reporting implemented during the fourth quarter. As a result of the recent acquisition of Power Solutions, we are now reporting our business in two reportable segments: Communications and Building Systems. This new segment reporting reflects how Dycom Industries, Inc.'s business is managed and the positioning of the company's strategies and expanding platform to provide comprehensive solutions as we address the growing demands for digital infrastructure. The Communications segment provides specialty contracting services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, as well as other construction and maintenance services for electric and gas utilities. The Building Systems segment provides comprehensive building infrastructure solutions including electrical, energy management, security, and fire safety systems for data centers and other critical facilities. This segment includes the results of Power Solutions, following the closing of the acquisition on 12/23/2025. With that, I will turn the call over to Dan Peyovich.

Thank you, Callie. Good morning, everyone, and thank you for joining us. Dycom Industries, Inc.'s fourth quarter results are an excellent finish to a record year as we set new benchmarks across nearly every financial metric we track. We exceeded the high end of our annual revenue outlook, and our performance highlights our unique ability to capitalize on a diverse and intensifying demand environment. We delivered on the two pillars we set as priorities: meaningful margin expansion and improved operating cash flow. Our strategy and focus on scaled efficiencies strengthened our balance sheet and built a platform for sustained, high performance growth. Beyond our solid organic growth, we fundamentally broadened Dycom Industries, Inc.'s reach through strategic M&A. The acquisition of Power Solutions, which closed on December 23, positions us squarely at the intersection of digital infrastructure and the burgeoning data center market. Capitalizing on industry tailwinds, we are aggressively architecting our own trajectory, ensuring Dycom Industries, Inc. and our robust skilled workforce remain the indispensable backbone of the next generation of digital connectivity. I will start by covering our fourth quarter and full-year consolidated results, and then I will move to our fiscal 2027 financial outlook and our objectives for the year ahead. After that, Drew will provide further financial details and insights. For the quarter, we delivered all-time record fourth quarter revenue of $1,460,000,000, an increase of 34.4% compared to Q4 fiscal 2025. Of note, this was a Q4 record both in total and on an organic basis. Organic revenue increased 16.6% for the quarter, a testament to the strength of our backlog and the momentum going into the next year. Adjusted EBITDA was $162,400,000 and adjusted EBITDA margin was 11.1%. EBITDA margin increased by 41 basis points compared to Q4 fiscal 2025. Significant additions to our workforce position…

Thanks, Dan, and good morning, everyone. We delivered record annual results in fiscal 2026 with strong revenue growth, significant margin expansion, and robust free cash flow. We executed well in Q4, and we are excited to welcome Power Solutions to Dycom Industries, Inc. Together, we are positioned at the center of the powerful secular trends driving growth in digital infrastructure services. For the fourth quarter, we delivered strong growth in revenue, adjusted EBITDA, and adjusted EPS. Consolidated total contract revenues were $1,458,000,000, a 34.4% increase over Q4 2025. Organic revenue exceeded the high end of our expectations, growing 16.6% after excluding the acquired revenues from Power Solutions of $95,800,000 and the extra week in our 53-week fiscal year. Consolidated adjusted EBITDA of $162,400,000 increased 39.6% over Q4 2025. Adjusted EBITDA margin of 11.1% was within our range of expectations and increased over 40 basis points compared to Q4 2025, even as we increased our workforce to meet the growing demand for our services and experienced severe winter weather at the end of the quarter. Consolidated adjusted net income was $60,500,000, and adjusted diluted EPS was $2.30 per share. These results are adjusted to exclude nonrecurring acquisition-related items and the amortization of intangible assets. For the segment results, Communications revenue was $1,362,000,000, driven by continued execution of fiber-to-the-home programs, wireless activity, fiber infrastructure programs for hyperscalers, and maintenance and operations services. We are pleased with the strength of our relationships and diversification across our customer base. AT&T and Lumen each exceeded 10% of total revenue for the quarter, contributing $350,500,000 and $147,700,000, respectively. Following Verizon's acquisition of Frontier during our fourth quarter, their combined revenue was $205,600,000, also exceeding 10% of total revenue. Customers exceeding 5% of total consolidated revenue for the quarter were BrightSpeed, Charter, Comcast, and Uniti. Adjusted EBITDA…

We encourage you to review the outlook summary document newly available on the company's Investor Center website for additional metrics. With a record fiscal 2026 behind us, Dycom Industries, Inc. enters fiscal 2027 with solid strategic positioning and a strong financial foundation. We remain focused on the disciplined execution necessary to convert robust industry demand into long-term value for our shareholders. Operator, this concludes our prepared remarks. You may now open the call for questions.

Thank you. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. We will now open for questions. Our first question will come from Sangita Jain from KeyBanc Capital Markets. Your line is open.

Good morning. Thank you for taking my question. Dan, can you talk a little bit about how you plan to increase the scope of work that you are doing inside Power Solutions? I know Dycom Industries, Inc. has telecom expertise, so maybe you can expand into cabling or something else that you are currently not doing there? Any color there would be helpful.

Good morning, Sangita. First, I just want to say Power Solutions acquisition is going incredibly well. The integration is going just as we expected it to be. This is an incredibly strong, very deep leadership team that has been in that market for a very long period of time. So we are excited about how they are performing. We are excited about the opportunity set in front of them. And if you probably heard me say, the demand, especially in the DMV right now, is just off the charts. So plenty of opportunity there. As you can see, we are outlining significant growth for them this year. You know, with the range we gave is 15% to 25%. Really, that is about trying to ramp into that over the year and set us up for the future and what that looks like. So we are investing in that business. You know, we are certainly adding resources to that business. And then to your question, the cross-sell is quite frankly taking flight even earlier than we anticipated. The reaction from the hyperscalers has been fantastic. You know, where we can bring our inside-the-fence Communications work and couple that with what Power Solutions is doing inside the four walls, we think that is a recipe that wins over time. And again, with both of our proven expertise, the response has been fantastic. If you think about inside the four walls, one, I would point to how we named the segment. So Communications, obviously, for the Dycom Industries, Inc. business that is in the legacy side, but Building Systems, we wanted to be specific. So first, you know, we are really architecting Dycom Industries, Inc. around digital infrastructure. It is about both the compute of data and the transmission of data around the…

Thank you for that, Dan. And then on the fourth quarter organic growth, which was especially strong given winter weather and the holidays, etcetera, can you talk a little bit about where you were most surprised versus your internal expectations? If there was any notable project pull forward that came in? Thank you.

No pull-forwards. And, yes, we are obviously very pleased with the overall performance, exceeding the high end of our range that we gave at the beginning of the year, giving that revenue outlook at the beginning of the year that we raised after Q1. But notably, for the fourth quarter, as you point out, one, we had to work through significant winter weather. What it shows really, one, the ability of our team to execute even in those conditions. We did get a little bit of margin pressure from that, but the ability to keep that going. But, importantly, the demand from our customers. The demand coming out of Q4 and the demand going into this year, you can see it in the guide that we gave for fiscal 2027. You can see it in the organic growth that we are talking about in the Communications side and the outlooks for 2027. So it really just shows all of these different demand drivers as they are coming through the business, and the opportunity set there. So nothing specific. Really, I would say, points to the overall demand. One thing I would point out, you know, we did have wireless that increased in Q4. And you do have to think about that. As Drew talked about, you know, we expect about $100,000,000 of deceleration in line with the original expectations of that program. But since we got that work and have been executing, we have talked about back half in the four years that it is going to start to taper off. So you do have to include that going the other direction.

Thank you.

Our next question comes from Eric Luebchow from Wells Fargo. Your line is open.

Great. Thanks for taking the question. Dan, I wanted to just ask about the long-haul, middle-mile, and inside-the-fence work. I know you quantified the $20,000,000,000 TAM a few quarters ago. Sounds like you are optimistic that that is going to prove conservative, and we have seen some interesting announcements from the likes of Meta and Corning recently. So maybe any kind of quantification on how that program is progressing? And where you think that addressable market ultimately goes? It sounds like $20,000,000,000 is just the start.

It really is, Eric. If we think about the $20,000,000,000, and remember that is back-half weighted because these programs are complex. They take a while to get off the ground. But what you have seen since the last quarter, and I think we put that number out a couple quarters ago, in this last quarter you saw a number of our customers now talking about it and talking about significant opportunities and appetite for hyperscalers. As recent as yesterday at some of the conferences, even more demand that they are seeing on their side. It does take time for that to get through the ecosystem, and that is what we tried to talk about early on when we identified the $20,000,000,000. You know, we really think that we were first on the field with what we have been doing for Lumen. Saw another nice increase to their PCF that they are going to continue to build on over time. And then you have the new construction work, which again just takes further time to come in. I would really think about ramping this year, continuing to ramp this year, continuing to ramp in 2027, and a lot of that really taking flight in calendar 2028. Is it more than $20,000,000,000? We strongly believe that. Is there going to be more that comes there? What I would tell you is today, we are getting more phone calls and seeing more opportunities than we saw even a quarter ago or, frankly, even a week ago, the demand is that strong. And it comes back to a little bit of what I talked about at the beginning. This is about a change in how they need to transmit this data. They need more capacity. They need ultra-low latency for these applications and for the future of AI. So we are excited that we can be a trusted partner there, and we really think that over time that is going to continue to grow, and we will continue to update as we see that move.

Great. Thank you, Dan. And maybe we could just touch on the BEAD program. You talked about it a little bit. Sounds like the verbal award balance is above that $500,000,000, but it also seems like it is taking a little longer for the funds to actually get dispersed. I think Louisiana is the only one that I have seen. So maybe you could just talk about the construction timelines there, when you think that is really going to ramp and kind of hit a more full run rate.

We still believe Q2 that we have some revenue opportunities to be putting work in place overall. But as we talked about, and really unchanged from what we have been saying for a bit now, if you really think about that in calendar 2027, it is getting some momentum. So it is great to see progress. You know, nearly all the states and territories are approved. So to your point, funding, this has pushed the funding down, and that continues to grow over time. We think that the addressable market is approaching $20,000,000,000, but it is going to take some time for those to get off the ground. You have got numerous states at different paces, the way that they are pushing it down to the subgrantees, and then those subgrantees also at different paces. Within that, I will just frame the context for you. If you think about a local cooperative where they own their own poles, they have probably already done the engineering today. As soon as they get the funding pushed down, they can hit the go button, and that is why we talked about something in Q2. But the bigger program, the longer duration build, those are probably going to come on much later in the year. So, again, great to see progress. We all wish it would go a little bit faster. Absolutely. But we have a lot of confidence in that coming through the supply chain soon.

Thanks, Dan. Thank you.

Our next question will come from Joseph Osha from Guggenheim Partners. Your line is open.

This is Mike Spressody on for Joe. Just to kind of follow up on that BEAD program, is it fair to say that the big guidance does not imply the full potential impact for this year? And then also, how do margins from this program differ from your traditional work? Are they more accretive or anything like that? Thanks.

Mike, I think you are breaking up just a little bit. I think you are referring to the BEAD program again and just how it is built over time.

Yeah. Exactly. Thank you.

Yeah. First, on the margin profile, similar to all of our work. We think about everything on the Communications side very similarly. If it is taking the same type of skilled workforce resources, if it is taking similar types of equipment, then the margin profile and that return ends up in a similar range. So that does not mean every project is exactly the same, but it is in the same similar bandwidth. And we believe BEAD will play out that way over time. But, and I think this is an important point, you have got fiber-to-the-home demand that is really just reaching another level. And, again, I do want to point out, it has not peaked yet. You still have a ton of growth that is happening in that program. You have got everything going on with the hyperscalers and those long-haul, middle-mile builds that is significant. You still have a lot of activity on the wireless work today. We continue to add to our service and maintenance platform. When you put all those together and you start adding them up and showing the increases over time, without question, there is going to be pressure on labor. So if you think about skilled workforce, as you get later this year and really starting in calendar 2027, that is where we think Dycom Industries, Inc. is exceptionally well positioned. And we have been investing heavily in our workforce to make sure that if you think about BEAD and the needs that our customers can have there, when you already have these other programs going fast, we need to have been investing years ago. We need to be thinking about having a strategy that was very long term. You probably heard me in my prepared remarks talk about, and I am…

Thank you.

Thank you.

Our next question comes from Frank Louthan from Raymond James and Associates. Your line is open.

Great. Thank you very much. Can you comment on what the current growth rate is at Power Solutions today versus what it was when you acquired the business? And then secondly, can you characterize your exposure to EchoStar, any project that they have currently, and if you have removed any of that from your guidance? Thanks.

No exposure to EchoStar, so nothing to think about there for Dycom Industries, Inc. On Power Solutions growth rate, we talked about their trailing four-year CAGR at about 15%, Frank, and that is what we gave as we were doing the acquisition and announced it for folks to look ahead. Obviously, as you saw in the guide, we are looking at that really as the bottom end of the range, so 15% to 25%. But here is the really important point. This is an organization that is delivering across around 3,000 skilled workforce, so 3,000 electricians, over a billion dollars of revenue. That is a very large base. And when you think about growth as a percentage, remember, you add the skilled workforce by the person, and doing that on a much larger base is something that you really have to lean into. So, you know, if you think about how we are looking at the year, how do we continue to invest in Power Solutions, a fantastic business that has got great leadership, a fantastic strategy that they have proven over time, but we want to really lean in with them so we can think about future growth and future growth opportunities. And I just want to come back to Dycom Industries, Inc. as a whole. When we think about growth, there is a right way to do growth and there is a wrong way to do growth. We have had a ton of discipline around our backlog. You see that in our margin profile. You see that last year, not only did we significantly increase our backlog, not only did we continue to diversify our backlog, but we also improved our margin profile. And this year, as we look at the year out in front of us, we are telling you again that we continue to improve that margin profile as we continue to grow, but as we invest in the business to ensure future growth too. So just a couple important points there.

Great. Thank you very much.

Thank you. Our next question comes from Michael Dudas from Vertical Research. Your line is open.

Yes. Good morning, Callie, Dan, and Drew. Morning. Maybe a follow-up on Frank's, you know, on your answer to Frank on the margin front. Maybe talk a little bit, you know, you are investing in the business for the future. How much relative to fiscal 2027 versus 2026? And I think just also on the Power Solutions side, historically, in their self-perform capabilities, have they, what has been their growth rate on the labor front? And is that within expectations on, you know, from hiring and getting folks in to execute the backlog, not just for this year, but for several years out?

Thanks, Mike. So on margin profile, you know, you look at last year, we grew over 100 basis points year-over-year. Very pleased with the overall results, and that has been a year of change and growth. We did a major acquisition, and I think, again, I would just point to how well Dycom Industries, Inc. is executing overall to be able to do all of those things at once. As you look towards this year, again, we have big ideas and big initiatives that continue our growth and continue that long-term strategy. What is really important, and to the point of your question, is that we have to continue to invest ahead of that. We added a lot of headcount for the Communications side in the back half of last year. We see that continuing as we continue to get ahead of these programs that I talked about early on that are starting to stack on top of each other. That takes an investment. We have to invest in training. We have to bring those folks on. They are obviously not as productive day one as they are six months in. So when we think about that and we add it into the growth profile of the overall enterprise, that is when we say, hey, we are going to continue to grow margin. But I would not set expectations to be going as fast as we did last year from a raw dollars or a percentage profile, but still to grow, to have that into our backlog when I think a lot of others, during periods of growth, maybe struggle with improving those margins. We feel really good about that. Going to Power Solutions, they are really about labor. A lot of people know the hyperscalers buy all the big electrical equipment directly. That does not come through the P&L of Power Solutions. So it really is about workforce. So if you think about 15% to 25% growth that we are projecting for this year, you are growing labor in a very similar range to that. And as I mentioned to Frank, you think about that on a raw number of skilled workforce headcount, when you get to the size of Power Solutions, they are working on dozens of data centers. Those are really big numbers in the DMV. We are partnered with the local union. We are getting well in front of that. But at some point, again, this goes back to responsible growth. You want to grow at the right rate where you continue to deliver and, quite frankly, differentiate the level of service that we deliver to our customers over time. And that is what you see in the outlook.

I appreciate it. It makes sense. And just my quick follow-up. You mentioned a little bit about acquisitions in some of your prepared remarks in response to questions. Maybe you could share a little bit on the timing on getting to that 2.0 level, the size, the cadence, you know, what should we anticipate maybe over the next 12 to 18 months? I am assuming maybe there is another Power Solutions out there. I am thinking a bit more modest in cadence and size.

I think it is important to go back to the long-term strategy that we operate and talking about long-term returns for our shareholders and long-term opportunities for our people. Obviously, we did the Power Solutions acquisition. That was a very large acquisition for Dycom Industries, Inc. historically. But what we did well ahead of that, Mike, we were very intentional to drive our net leverage down before we did the acquisition. I do not remember the exact number, but I think it was about 1.2x, maybe 1.2x and change when we did that. And then we talked last quarter about our ability to bring that net leverage down quite quickly. We talked about 12 to 18 months, but really what you heard Drew say earlier was to do that inside of 12 months. To finish the year with a very strong cash position and already get that down to 2.3x, pro forma. We feel really good about the opportunity set that allows us to think about from an M&A perspective. Long-term strategy includes improving our cash flow. And if you look at our free cash flow, I am incredibly proud of what our team was able to accomplish there. Our free cash flow increased 216% year-over-year, and I would point to these are durable changes that we have built into the business. These are not simply pulling a lever or taking a one-time thing. This is really about how we change, one, how we collect cash, we change our operating cash collection profile and how we are thinking about that. So, again, durable. On the free cash flow side, you heard me talk a little bit about how we are thinking about our fleet differently and using technology differently there, so we can optimize that as well. And what that does is it positions us in a place where those are big changes in cash position overall, sets us up much better when you think about M&A. So those are things that we set in motion quite some time ago to enable us to be able to continue the path that we are on today. When it comes to size, again, we have got a strategy around it. We are looking for very specific cultural fit, very specific growth opportunities. It could be something else in a factor range of the size of Power Solutions, and there could be other opportunities that are much smaller than that. It is really going to depend on, and there is obviously no guarantees about timing or how these work out. We are going to be patient, but we are seeing some attractive things in the space.

Understood, thanks, Dan.

Thank you.

Our next question comes from Judah Aronovitz from UBS. Your line is open.

Hey, good morning. Thanks for taking my question. On for Steven Fisher. Just on the Building Systems margin guidance, can you talk about how you are thinking about the margin potential in that business, and how quickly can you improve kind of the mid-to-high teens level that you have talked about? And related to that, what investments need to be made, and if you can quantify the margin drag from those investments in 2027, that would be helpful.

This is really, again, about having a long-term strategy to do this. So when we think about that business, we did talk about mid-to-high teens margin profile that they have delivered historically. Mid-teens is really the right way to think about it today. We are talking about significant growth opportunities. We want to do that right, maintaining the level of service that they have proven over decades is so imperative in a market where the demand is surging at the level that it is today. We are going to have that discipline. We are going to have that patience. We are very pleased, obviously, with the growth profile for 25% from a revenue perspective. But we feel like mid-teens is a very strong return in that space. And I think if you look, comparatively, you would see that as well. So we feel very pleased with that. Over time, obviously, we are going to, just like we are on the Communications side, work to improve that. But right now, I think that is a really good starting point.

Thanks. And then I was just curious about SG&A as a percent of sales in Q4. A bit higher than it has been in quite some time, and I assume that is reflective of the headcount you are adding, but I was wondering if there is anything else in there, maybe something related to Power Solutions mix or anything else? And then what is the expectation kind of going forward? Thanks.

Yeah. Judah, thank you for the question. This is Drew. I would just point out we did have some transaction costs that we called out in the quarter, and that was in G&A, so over about $18,000,000 in there. And then as we think about the Building Systems segment, the G&A profile does come into the business as well. So if you are looking at the just total overall dollars, there will be some increases there as well.

Thank you.

Our next question will come from Richard Cho from JPMorgan. Your line is open.

I just wanted to get a little bit on the hyperscale opportunity. As we look through this year, and then into next year and 2028, it seems like there is a lot of this build that is coming back-half weighted, and it could be a big change. But what is kind of driving the near-term hyperscale revenue, and how should we think about its growth for this year and then into next? Thank you.

So today, you have, obviously, the Lumen overpull that does not have the same kind of new construction logistics or permitting around it. So that program that we have been working on for over a year now, that is going to grow this year. I would think about that first, Richard. And then you do have smaller legs. You know, the way that these long-haul, middle-mile routes are working, there are some very big programs like Lumen is talking about, there is everything in between, and then there are some that are just, you know, 100 or 200 miles. Those much smaller distances can be added in more quickly, obviously. But when you are looking at routes that are thousands of miles or much longer, those are the ones that are going to push further on duration. And then, as you would expect, there are also the pricing dynamics. So routes that are easier are going to cost less, so those can come online a bit quicker. The more expensive routes are going to take time and have higher revenue profiles, those out years of 2027, 2028.

Got it. And the clarification on the acquisitions, are you looking in the DMV area for acquisitions, or could this be a new geographic location?

So we are nonspecific just to DMV. You know, there are obviously a number of other markets. But I would say what was important to us with the Power Solutions acquisition was starting in a market that has been there for a very long time. This is a market that has been around for decades. It has sustainability, it has a future build profile. With that now, we can certainly be thinking about some of these frontier markets or markets that are newer and ramping up considerably. They are all on the table as we think about it going forward.

Yeah. Those markets seem like they are going to be building for a while. Thank you.

Thank you.

Thank you. Our next question comes from Adam Thalhimer from Thompson Davis. Your line is open.

Hey, good morning, guys.

Good morning.

Also had a question on the M&A pipeline. Dan, is that all within the Building Systems segment, and then what should our expectations be on timing?

Yes, we are predominantly looking in the Building Systems segment, and that is mostly, Adam, as you know. Dycom Industries, Inc. has been a major acquirer and consolidator of the Communications space. There are still some opportunities out there, but, quite frankly, when you are in all 50 states and you are across the same kind of customer base that we have today, we do not need to do those from an M&A perspective. Those are places where we can and have shown we can grow organic. So thinking a lot more about the Building Systems space, as I mentioned in response to Sangita's question earlier, it does not just have to be electrical. There are other systems that happen in that digital infrastructure space or inside the data center. From a timing, you know, these things do not pace out some particular way you want them. I mean, we closed Power Solutions two days before Christmas. This is how things time out. We are active in the space. There are a number of opportunities that are out there. There are a number of really strong businesses that are coming to market for all the reasons you would expect. Sure, the multiples are higher, but the businesses are more valuable and the growth profile is stronger. So we are optimistic, but, you know, there is no guarantees on time. We are going to be patient and make sure it fits.

Good color. And then I think you mentioned Power Solutions geographic expansion. Just curious what you are thinking there. Does that mean just starting to pick up some work in West Virginia, North Carolina, sort of building out from the DMV?

Exactly. They are not in every space. Even if you think about the DMV itself, you know, you could still continue to expand. And as everybody knows, that space itself is expanding. You mentioned West Virginia; there are other markets that are really kind of coming online more in that territory. So today, you know, we feel really good about the growth profile they have. There are opportunities for future organic expansion. That group, because they have been around for a very long time, they have got a ton of talent. So those are all things we are thinking about as we layer that together with M&A. What I would just say is we are very optimistic in the continued growth of the Building Systems segment.

Thanks, Dan.

Thank you.

And our next question comes from Liam Burke from B. Riley Securities. Your line is open.

Thank you. Good morning, Dan. Good morning, Drew.

Good morning.

Dan, with your growing EBITDA and your growing cash flow, as you balance opportunities through acquisitions and managing the balance sheet, how are you balancing your current leverage ratios versus what you see in the potential acquisition pipeline?

Yeah. I think about it the same way as we always have. We are going to be very responsible on our net leverage. I think you have to think about it over time because we might do acquisitions that could come through that are going to push it up a bit when we know, just like we did with Power Solutions, that we can bring that down. And I mentioned, Liam, this is a strategy that goes back so that we have these improvements in the business. So we can do more M&A and stay ahead of it without really changing the way that we look at our overall net leverage profile.

Great. And when you are looking at the traditional business, when negotiating longer-term contracts, are you seeing more favorable terms of pricing now that the scale is getting bigger, projects are more complex, and you seem to be the leader in the space here?

Yeah. You know, I think we are the only ones that are across all 50 states, and we certainly have a number of customer relationships. If you think about the margin improvement last year, you think about the margin improvement this year, I do want to be really clear about this. This is not coming from us increasing pricing with our customers. This is coming from, obviously, operating leverage, but also internal efficiencies that we are improving. Now over time, can those pricing dynamics change? We will see as these different programs come online and ramp up. But right now, one, we feel really good with our return profile. You know, we have a long-term view with our customers. We want to deliver and execute for them across cycles, certainly across decades. We have shown that we can do that. But I would not think about it from purely us having an opportunity to continue to raise pricing. And, also, I would point out that we do not need that to continue the margin improvement that we are on.

Great. Thank you, Dan.

Thank you.

Thank you. And I am showing no further questions from our phone lines. I would now like to turn the conference back to Mr. Dan Peyovich for closing remarks.

Thank you all for your time today. We look forward to talking to you again in around 90 days. Thank you all. Be safe, and be well.

Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.