0001124198-26-000061
SEC filingRevenue was $3.7B (-8.0%) Gross Profit was $13.0M (-90.7%) Operating Income was $92.0M (1.1%) Net Income was $160.0M (166.4%)
Revenue of $3.7 billion in Q1 2026 declined 8.0% from $4.0 billion in the prior year, primarily because Energy Solutions saw reduced execution activity as several projects neared completion. This dynamic was compounded by lower volume in hurricane support and emergency relief services, which had elevated prior-year activity. The revenue contraction explains the challenging top-line environment investors should monitor as project pipelines evolve.
Operating income remained resilient at $92.0 million, up slightly 1.1% from $91.0 million, achieving a 2.5% operating margin on lower revenue. This stability demonstrates operating leverage, where cost discipline offset the gross profit headwinds, providing a foundation for profitability despite top-line challenges.
Net income marked a significant turnaround to $160.0 million from a $241.0 million loss, with diluted EPS improving to $1.08 from -$1.42—a 176.1% swing. The shift reflects the combination of steady operating income and favorable year-over-year comparisons, underscoring how operational improvements can drive bottom-line results even in a softer revenue environment.