Joshua Chan

Bill said modular had $510 million of bookings ahead of its burn and nothing was unusual beyond broad, consistent demand.

Bill said modular is booking farther out while most construction burns over the next 18 to 24 months; they only take work they can perform.

Bill confirmed they require multiyear customer commitments at volume levels before building investments. This allows better pricing for customers while tightening relationships and ensuring payoff periods.

Brian confirmed pipelines are full coast to coast. Bill emphasized the paradigm shift: limitations are supply-driven not demand-driven. They're maintaining work selection discipline to protect margins.

CFO said ice storms are normal seasonal pattern for Q1. Nothing out of the ordinary. Commended northern workers for performing in challenging winter conditions.

CEO confirmed detailed labor projection process for each opportunity. Current backlog manageable with existing workforce capacity. No one pushing over their skis.

CFO attributed it to a fantastic market with customers wanting early commitments. Work is with known companies doing repeat work they've done before.

CFO expressed clear preference for existing long-term partners over new customers. Added a new customer recently but existing relationships are the priority.

CEO emphasized maintaining diversification across all sectors except commercial office. Training at all levels is crucial to address the market.

COO cited employer-of-choice strategy, internal staffing company for flex capacity, and cross-company labor sharing as key advantages.

COO cited broad-based bookings with advanced tech and industrial leading. Large long-timeline projects provide good forward visibility.

CFO described typical seasonal pattern of Q1/Q4 backlog builds and Q2/Q3 burns due to higher revenue. Pipeline remains strong regardless.

Management confirmed Q4 margin strength was broad-based across the portfolio, not driven by any specific project closeouts.

CEO highlighted constant recruiting, training programs at all levels, and Kodiak's temporary labor capability for managing peak demand.

Todd acknowledged inflation exposure but said Cintas offsets it through supply chain and productivity rather than passing costs to customers; growth is volume-, not price-, driven.

Jim credited improvements across all three volume drivers, new business, retention, and cross-sell, with pricing neutral versus prior years.

Todd contextualized the tough 18.5% prior-year comp but declined to detail product pipeline, citing competitive advantage; partial on products.

Buyback restrictions during UniFirst deal signing through shareholder vote. Q3 buybacks also limited by quiet period during negotiations. Will resume opportunistic approach once restrictions lifted.

No material change in investment levels expected. Future looks incredibly bright. White space of 16-20 million businesses with 180 million workers in US and Canada. Immense opportunity requires continued investment.

Q2 incrementals 27% vs tough 49.7% comp. H1 FY2025 was 44.3% creating tough comparison. Full-year implies 29-30% ex-asset sale. H2 implies 30-33%, moving toward high end of range.

Retention driven by execution, culture as competitive advantage, value proposition, and technology making it easier for customers and employee partners. Culture shines brighter in uncertain environments.

Management dismissed significance of wider range. Incrementals at 25-35% target, margin expansion implied. Range allows for long-term investments while improving margins.

No behavior change across verticals. Healthcare, hospitality, education, and state/local government all performing well and consistently.

Pipeline active but timing unpredictable. Balanced capital allocation strategy unchanged: reinvest, M&A, dividends, opportunistic buybacks.

Inventory built ahead of tariffs. 90% dual sourced. Amortization provides visibility. Culture of positive discontent drives process improvements.

CEO attributed guidance narrowing to pricing returning to historical levels. But workday-adjusted growth of 7.3%-8.6% remains strong.

Management said no issues with fire business, just tougher comps. Expects continued double-digit growth going forward.

Gene Hall said the ex-Fed selling environment is mixed, with some areas improving and others worsening, and reiterated expectations for acceleration over time.

Craig said three drivers: CV/revenue reacceleration, margin expansion, and significant share buybacks. Over last 12 months, repurchased approximately $2.4-2.5 billion of stock reducing share count significantly.

Gene said it depends on how the world evolves. March delays are closing in April with escalated decisions still getting approved. Craig emphasized they're adapting sales and service teams to be successful in any environment.

Gene said they concluded the world will remain more disrupted permanently, so they focused on core BTI business and driving engagement. Digital Markets didn't fit that vision. Staff changes were about repositioning skills for the transformation, not cost cuts.

Gene described environment as better than earlier in 2025 but worse than prior year. Craig added Q4 is by far the largest new business quarter and sales teams are motivated to finish strong.

Craig said they have high confidence across all four reacceleration categories. Noted the more speculative ones (operational adaptations) already started showing benefit in Q3. Same big 4 categories as prior quarter.

Gene cited their deal-level tracking system showing tariff-affected industries performing much worse than non-tariff industries. Craig added they're providing incremental color, not attributing everything solely to tariffs.

Gene responded that pipeline is the best demand indicator and it's up at robust double-digit rates. Longer closing times are due to purchasing process escalation, not reduced demand. Technical difficulties cut off initial answer.

Gene distinguished between tariff-impacted companies (slower decisions, extended cycles) and unaffected ones (business as usual). Pipeline robust but decisions slower.

Craig described slight belt tightening while preserving growth investments. Not slamming brakes; investing in areas that drive future growth.

Craig declined to guide on Q1 NCVI, emphasizing prudent planning and dynamic environment. Deferred update to April/May.

Gene attributed improvement to better execution rather than market conditions.

Management explained digital skews to reactive problem-solving demand, while door-to-door and homebuilder channels sell preventive protection.

Jerry cited Fox Pest Control improving residential retention by 5 percentage points in 3 years by partnering with HomeTeam best practices. Sees improving retention as an opportunity to accelerate organic growth. More details planned for May 14 Investor Day.

Jerry said typically end of March to mid-April; this year demand popped by the first week of March which was favorable. Phone call volumes provide real-time signal. Ken added they were fortunate March conditions were favorable earlier than usual.

Ken acknowledged weather is always a factor but emphasized recurring and ancillary growing north of 7% provides confidence. Team is engaged and focused on making hay when weather cooperates, including working weekends.

Ken confirmed West and South performed to plan in Q4 but could not exceed plan enough to offset Eastern/Midwest weakness. Some Texas/South Central and Tennessee areas got more impact in January.

Jerry cautioned 1 month doesn't make a trend but saw nothing to pause confidence through Q3. Ken added every service line's June growth was accretive to the quarterly rate.

Jerry cited Southeast (Carolinas to North Florida), South Central to Texas as hardest hit. By first week of June, demand recovered strongly with business carrying into July.

Jerry emphasized defined territories, vertical knowledge, strong sales management processes, and scale as competitive advantages. Cold calling and feet on street expand presence.

Ken clarified the ~10% recurring was across all brands, not just Orkin. Gap to 7% total organic is from weaker one-time fumigation/commercial work, exacerbated by 1 fewer day.