The cleanest surprise was a modest adjusted-EPS beat. Adjusted EPS was $0.14 versus a published Q2 consensus near $0.10, while adjusted net income reached $31.5 million; however, the beat depends heavily on add-backs for amortization, stock compensation, and acquisition-related costs rather than GAAP profitability.
| Metric | Q2 2026 | Q2 2025 | H1 2026 | H1 2025 |
|---|---|---|---|---|
| Revenue | $584.3M | $313.9M | $1,072.4M | $548.1M |
| Combined organic revenue growth | 2.5% | — | 2.3% | — |
| Gross margin | 34.9% | 23.6% | 34.1% | 21.5% |
| Adjusted EBITDA | $94.8M | $54.6M | $152.6M | $80.4M |
| Adjusted EBITDA margin | 16.2% | 17.4% | 14.2% | 14.7% |
| Adjusted EPS | $0.14 | — | $0.17 | — |
| Net cash from operations | — | — | $0.2M | $26.3M |
Reported growth overstates the underlying acceleration. Revenue rose 86.1% year over year in Q2, but 82.8 percentage points came from the NV5 acquisition; on a combined basis, organic growth was only 2.5%, below the headline growth rate. Consulting & Engineering and Geospatial supplied the newer platform revenue, while Inspection & Mitigation revenue declined to $296.7 million from $313.9 million. (Organic Change in Revenue; Segment results)
The earnings-quality tradeoff is unfavorable despite higher gross profit. Adjusted EBITDA increased 74%, but adjusted EBITDA margin fell to 16.2% from 17.4%, and adjusted SG&A expanded to 22.1% of revenue from 11.6%. The company is generating more EBITDA because of the acquired scale, not yet because the combined platform is showing clear operating leverage. (Adjusted EBITDA reconciliation; Adjusted SG&A reconciliation)
Cash conversion is the main weakness in the filing. Six-month operating cash flow was only $0.2 million versus $26.3 million a year earlier, despite $152.6 million of adjusted EBITDA. Contract assets increased by $49.4 million from year-end and receivables also consumed cash, while cash declined to $362.4 million after capital spending, acquisitions, debt payments, and $15.7 million of share repurchases. (Cash Flow statement; Balance Sheet)
The net read is mixed rather than a clean beat. The adjusted-EPS result and record backlog are better than the limited published expectation, but modest organic growth, lower EBITDA margins, almost no operating cash generation, and roughly $1.6 billion of term debt leave the integration thesis still dependent on future synergy realization. The supplied filing does not provide a new numeric guidance range, so a guidance raise, cut, or reaffirmation cannot be independently assessed here.
Read the original 8-K on SEC EDGAR ↗