The quarter cleared the lowered earnings bar, but only narrowly. Adjusted EPS was a $0.27 loss, versus the published consensus for a $0.35 loss—an $0.08-per-share beat. That matters because the June 22 business update had already told investors that most of the renewables-project damage would hit Q2; this filing confirms the hit was not worse than that reset. (Schedule 1)
| Metric | Q2 2026 actual | Comparison / expectation | What changed |
|---|---|---|---|
| Adjusted EPS | ($0.27) | Published consensus: ($0.35) | $0.08 better than expected (Schedule 1) |
| Revenue | $1.69B | $1.89B in Q2 2025 | Down 10.7% (Financial Highlights) |
| Adjusted EBITDA | $11.4M | $154.6M in Q2 2025 | Down 92.6% (Schedule 2) |
| Consolidated gross margin | 4.9% | 12.3% in Q2 2025 | Severe margin compression (Second Quarter Results Overview) |
| Energy gross margin | (0.3%) | 10.8% in Q2 2025 | Segment moved to a gross loss (Segment Results) |
| Full-year adjusted EPS outlook | $2.05–$2.60 | Unchanged from June 22 | No additional guidance cut (Outlook) |
| Total backlog | $13.9B | $11.9B at year-end 2025 | Record level, up $1.9B (Backlog) |
Holding guidance is relief, not an upgrade. Management kept its heavily reduced full-year outlook intact, which supports the view that the Q2 project charges were broadly contained within the June reset. But the unchanged range still requires a sharp second-half recovery: first-half adjusted EBITDA was only $71.9M, while full-year guidance calls for $275M–$325M. In plain terms, roughly three-quarters of the year's targeted adjusted EBITDA must arrive after June. (Schedule 2; Outlook; Schedule 4)
The underlying operating problem remains concentrated but material. Six renewable-energy projects drove cost overruns from redesigns, sequencing changes, labor-productivity issues, subsurface conditions and weather. Two were substantially complete during Q2, but three are not expected to finish until Q3 and one until Q4. Energy produced a $56.4M operating loss on nearly $1.0B of revenue, so the recovery case now depends on completing those jobs without further cost leakage. (Energy Segment; Segment Results)
Record backlog improves future revenue visibility, but does not erase the execution shortfall. The $13.9B backlog includes $8.2B of master-service-agreement backlog, whose eventual revenue depends on customer work releases; the filing also notes projects may be cancelled. Some of the new Energy awards and the $432.2M of acquired PayneCrest backlog had already been disclosed before this report. The backlog is therefore a real offset to weak current earnings, but not a new answer to the margin problem. (Backlog)
Cash generation and leverage are the remaining pressure points. Operating cash flow was a $131.3M outflow in the first half, versus a $144.6M inflow a year earlier, while long-term debt rose to $752.0M from $409.0M at year-end, largely alongside the PayneCrest acquisition. Liquidity of $958.9M provides room to operate, but the filing leaves little evidence yet of a cash-flow recovery. (Cash Flow Statement; Balance Sheet; Balance Sheet and Capital Allocation)
Read the original 8-K on SEC EDGAR ↗