Earnings call transcript: Acuren Q2 2025 sees revenue growth, strategic acquisition

Acuren Corp reported its Q2 2025 earnings, highlighting a 1.5% year-over-year increase in service revenues to $313.9 million and a strategic acquisition of NV5 for $1.7 billion. Despite these positive developments, the company’s adjusted EBITDA fell to $54.6 million from $59.1 million in the previous year, reflecting a decrease in its EBITDA margin from 19.1% to 17.4%. The company’s stock price rose by 2.34% in the aftermarket, closing at $9.62, possibly buoyed by the acquisition’s potential and future growth prospects. According to InvestingPro data, the stock is currently trading near its 52-week low of $8.76, with a year-to-date decline of 24.55%. InvestingPro analysis suggests the stock may be slightly undervalued at current levels.

Key Takeaways

• Acuren’s Q2 2025 service revenues rose by 1.5% year-over-year, reaching $313.9 million.
• The acquisition of NV5 for $1.7 billion expands Acuren’s service offerings and geographic reach.
• Adjusted EBITDA decreased to $54.6 million, with a margin drop to 17.4%.
• Stock price increased by 2.34% in aftermarket trading.
• Anticipated synergies of $20 million from the acquisition.

Company Performance

Acuren’s performance in Q2 2025 showed moderate revenue growth, driven by a 2% organic increase. The company is leveraging its recent acquisition of NV5 to enhance its service offerings in data center infrastructure, AI support services, and geospatial analytics. Despite a decline in adjusted EBITDA and margins, the acquisition positions Acuren as a market leader in testing, inspection, and certification (TIC) services, with minimal overlap with NV5’s offerings. InvestingPro data reveals the company maintains a strong liquidity position with a current ratio of 3.49, indicating robust ability to meet short-term obligations. For deeper insights into Acuren’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available along with 1,400+ other detailed company analyses.

Financial Highlights

• Revenue: $313.9 million, up 1.5% year-over-year
• Adjusted Gross Margin: 28.8%, a decrease of 30 basis points YoY
• Adjusted EBITDA: $54.6 million, down from $59.1 million last year
• EBITDA Margin: 17.4%, down from 19.1% last year

Outlook & Guidance

Acuren plans to provide updated consolidated guidance in its Q3 earnings release. The company is targeting $20 million in synergies from the NV5 acquisition, focusing on delivering these synergies, retaining talent, and integrating services seamlessly. Acuren anticipates stronger cash flow and expanded service capabilities moving forward. InvestingPro analysis indicates positive momentum ahead, with analysts forecasting sales growth and a return to profitability this year. The next earnings report is scheduled for August 14, 2025, with analyst price targets ranging from $11 to $16 per share.

Executive Commentary

• Tal Pizi, CEO, stated, "We have created a market leader that is positioned to serve customers and deliver superior value for our shareholders."
• Robbie Franklin, Executive Chairman, noted, "What is unique about this combination is that it is genuinely additive."
• Ben Hurad, President and COO, highlighted, "The organic growth that we’re seeing through the data center business continues to be strong."

Risks and Challenges

• High post-acquisition leverage, with net leverage estimated at 4.1x, could strain financial flexibility.
• Integration risks associated with the NV5 acquisition may impact synergy realization.
• Competitive pressures in the TIC and engineering services markets could affect margins.
• Economic uncertainties and regulatory complexities pose potential operational challenges.

Acuren’s Q2 2025 earnings report reflects a strategic pivot with the NV5 acquisition, aiming to bolster its service offerings and market position. While financial metrics showed mixed results, the market’s positive reaction suggests investor confidence in Acuren’s long-term growth strategy. InvestingPro’s Financial Health Score currently stands at 1.65, indicating some challenges ahead. Subscribers to InvestingPro can access detailed analysis of these metrics, along with over 30 additional financial indicators and exclusive ProTips that provide deeper insights into Acuren’s investment potential.

Full transcript - Acuren Corp (TIC) Q2 2025:

Conference Operator: Hello and welcome to Acurin Corporation’s Second Quarter twenty twenty five Earnings Conference Call. Currently, participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Andrew Shen, Director of Investor Relations.

Thank you. You may begin.

Andrew Shen, Director of Investor Relations, Accurin: Thank you, operator. Good morning, everyone, and thank you for joining the call. Joining me on the call today for prepared remarks are Tal Pizi, Accuran’s CEO Kristen Schultes, Accuran’s chief financial officer and Robbie Franklin, Accuran’s executive chairman. In addition, sir Martin Franklin, Accuran’s co chairman and Ben Hurad, Accurin’s President and Chief Operating Officer will be joining us for the question and answer session. Before we begin, I would like to remind you that certain statements in the company’s earnings press release and on this call are forward looking statements which are based on expectations, intentions and projections regarding the company’s future performance, anticipated events or trends and other matters that are not historical facts.

These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. In our press release and filings with the SEC, we detailed material risks that may cause our future results to differ from our expectations. Our statements are as of today, 08/14/2025, and we undertake no obligation to update any forward looking statements we may make except as required by law. As a reminder, we have posted a presentation detailing our second quarter financial performance on the Investor Relations page of our website. Our comments today will also include non GAAP financial measures and other key operating metrics.

The required reconciliations of non GAAP financial metrics can be found in our press release and our presentation. Before we begin, let me outline the agenda for our call. Tal will cover business performance and key operational highlights. Kristen will review our financial results and discuss the NV5 transaction. Robbie will share strategic context on our integration priorities and discuss the opportunities ahead for the combined organization.

It’s my pleasure to now turn the call over to Tal.

Tal Pizi, CEO, Accurin: Thank you, Andrew. Good morning everyone and thank you for your continued interest in Acurin. Welcome to our second quarter twenty twenty five earnings call. I am proud to share that our second quarter demonstrated the strength and resilience of our business model as we delivered year over year top line growth and stable adjusted gross margins. This was achieved while successfully completing transformational acquisition of NV5, which marks a major milestone in Akron’s journey as the market leader in testing, inspection, certification and compliance or TIC, and engineering services.

Our team’s unwavering focus on operational excellence, reliability, and safety enables us to build upon our stable foundation. We continue to expand share of wallet with existing customers and win new accounts positioning Acurin for continued momentum into the second half. There are three key takeaways I want to emphasize today. Our solid business performance, our success with integrated solutions and our transformative combination with NV5. First, our team delivered steady revenue growth, adjusted gross profit and solid adjusted EBITDA margin performance in the second quarter.

We saw sustained momentum among existing customers and continue to secure new customers. Our call out activity, which addresses urgent customer needs, was particularly strong in Q2. The essential and mission critical nature of our asset integrity services continues to drive demand even when customers are selected with capital spending and operating budgets. Our business fundamentals remain strong and we believe Accurin is well positioned for continued growth. Second, I’d like to share a couple examples where Accurin’s integrated service offerings have created a differentiated turnkey solution for our customers.

Acumen was recently awarded the NDT maintenance work at a new LNG facility. Our local NDT leadership recognized the opportunity to cross sell additional services. We supported the customers through baseline inspections where we identified design and construction flaws, but we also performed remediation services to support the successful plant startup substantially increasing our contract value. In another example of integrated service offerings, we recently completed the recoating and repair of a gas distribution line suspended from a bridge. The project included accurate engineering design for a suspended platform in coordination with the local transportation authority.

The scope of work included laser ablation to remove existing coatings, mechanical replacement of pipe hangers, rope access platform installation, ultrasonic testing to verify pipe integrity, and final coating application. This work was led by Acurin’s engineering team supported by rope access mitigation services and NDT crews. Following successful delivery, Acurin was sole sourced for a larger similar project in a new jurisdiction based on our reputation for this new turnkey infrastructure work. These two examples provide a good segue to introduce the next third takeaway. The recent combination with NV5 positions us to become a leading provider of integrated tick and engineering services, dramatically expanding our ability to deliver complementary solutions to a broader customer base and creating substantial cross selling opportunities.

In the asset integrity management business, further connectivity between engineering inspection and mitigation will allow us to offer compelling turnkey solutions to our expanding end markets. Before turning to Kristen, I want to recognize our dedicated team members. Their professionalism, safety mindset, and commitment to our customers, especially during this period of transformation are what makes Accurin unique. At Accurin, a higher level of reliability isn’t just a tagline. It’s core to our culture guiding how we operate every day.

Reliability builds trust, ensures stability, and delivers consistent results to our customers, teammates, and investors independent of the macroeconomic environment. With that, I’ll now hand the call over to Kristen to walk through our financial performance in greater detail.

Kristen Schultes, Chief Financial Officer, Accurin: Thank you Tal, and good morning everyone. Reported service revenues for the three months ended June 30 were $313,900,000 a 1.5% increase compared to $309,300,000 in the prior year period. On a constant currency basis, this represents top line growth of 2.1%, of which 2% was organic. Organic growth was driven by new customer wins, deeper engagement with existing customers, and robust call out volumes during the quarter. While our run and maintain work provides a stable recurring revenue base, call out work acts as a key driver for revenue growth.

Adjusted gross margin for the three months ended June 30 was 28.8%. This represents a 30 basis point decrease compared to the prior year period, which was driven primarily by FX headwinds. Adjusted EBITDA for the second quarter was 54,600,000 compared to $59,100,000 in the prior year. This resulted in an adjusted EBITDA margin of 17.4% for the quarter compared to 19.1% in the prior year. The current year margin reflects a more normalized business mix as well as planned incremental public company costs.

Turning now to the recently announced transaction. On August 4, we completed our acquisition of NV5. The deal was valued at approximately $1,700,000,000 which included the repayment of approximately $2.00 $8,000,000 of NV5’s outstanding debt. We also issued approximately 79,000,000 Accurin shares to NV5’s shareholders at closing. In connection with the transaction, we amended our existing credit facility, adding $875,000,000 in new term loan debt under the same terms as our original loan at a rate of S plus two seventy five.

This brings our total debt to $1,600,000,000 We also increased our revolver from $75,000,000 to $125,000,000 to match the increased scale of the business, and it remains fully undrawn. We estimate our post closing net leverage at roughly 4.1 times on a combined LTM basis. We remain committed to reducing net leverage to our long term target of under three times through a combination of growth, operational execution, and disciplined cash flow generation. Next, turning to our guidance. Following our recent transformational acquisition, we are taking time to fully review and update our financial outlook to reflect the combined business.

We plan to share refreshed consolidated guidance including ranges for revenue and adjusted EBITDA alongside our third quarter earnings release in November. This timing gives us the opportunity to be thoughtful and to incorporate deeper informational sharing and strategic planning into our full year outlook. Overall, we are pleased with the team’s execution and dedication during this exciting time for Accuran. I look forward to sharing more updates on our progress, including the NV5 integration in coming quarters. With that, I’ll turn the call over to our Executive Chairman, Robbie Franklin.

Robbie Franklin, Executive Chairman, Accurin: Thank you, Kristen, and good morning, everyone. We are pleased to have completed our transaction with NV5. Together, we have created a market leading tech and engineering firm uniquely positioned to deliver integrated tech enabled solutions to customers across North America and select international markets. The combination immediately expands our reach into new geographies and end markets and accelerates our ability to provide comprehensive full asset lifecycle services. We can now support customers from initial design and engineering through construction, commissioning, ongoing maintenance and decommissioning.

We believe our highly complementary service portfolio will enable deeper customer partnerships and unlock substantial cross selling opportunities. What is unique about this combination is that it is genuinely additive. Accurin’s leadership in nondestructive testing and asset integrity is directly complemented by NV5’s depth in engineering consulting and geospatial analytics. There is minimal service overlap, which means we are expanding capability, not just scale. As we integrate, our priorities are clear, deliver on identified synergy targets, retain and motivate top talent from both organizations and ensure seamless service delivery for customers.

I’m encouraged that our initial conversations are servicing meaningful additional opportunities and believe that the $20,000,000 synergy estimate we’ve shared is frankly conservative. We expect to grow that figure as we execute over the coming months and we’ll update you on our progress. To support this, we have established a dedicated integration management office led jointly by leaders from both legacy companies to drive accountability and pace. We are focused on near term execution, identifying quick wins, meeting integration milestones, protecting commercial momentum and ensuring retention of our key people. Dickerson Wright and Ben Harrod who have joined our Board of Directors as planned, bringing valuable expertise and deep knowledge of the NV5 business and its end market.

We are also pleased to welcome Byron Roth to our board whose broad industry perspective will further strengthen our governance and oversight. Looking ahead, the combined entity scale, diversification, exposure to high growth end markets position us well for sustainable value creation. We believe we can deliver stronger cash flow, expand career opportunities and enhance customer outcomes. While we are confident in the long term strategic benefits, we know the work of integration is just beginning. Our teams are energized and focused on delivering results and we are committed to communicating our progress with transparency.

With that, let me turn the call back over to Tal for closing remarks.

Tal Pizi, CEO, Accurin: Thanks, Robbie, and thanks, Kristin, for those comprehensive updates. Our second quarter demonstrated steady execution while at the same time we closed one of the most significant acquisitions in our industry, delivering solid operational results while navigating M and A complexity speaks to our team’s strength and the resilience of our business model. I want to welcome our new colleagues from NV5 to the Eichern family. Your talent, expertise and customer relationships are invaluable and we’re excited to work together to serve our expanded customer base and pursue new market opportunities. This transaction positions us to capitalize on key trends driving demand for engineering and asset integrity solutions.

Aging infrastructure, increasing regulatory industrial complexity all create demand for integrated solutions we can now provide. We see opportunity across data centers, infrastructure, geospatial, and industrial markets offering comprehensive solutions from engineering through ongoing asset integrity. We have created a market leader that is positioned to serve customers and deliver superior value for our shareholders. Thank you to all team members both Legacy Acurin and NV5 for exceptional work during this transaction and continued commitment as we begin this new chapter together. With that I’d like to open the call for questions.

Operator?

Conference Operator: Thank And for a participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Kathryn Thompson with Thompson Research Group. Please proceed.

Kathryn Thompson, Analyst, Thompson Research Group: Hi, thank you for taking my questions today. Just a few margin questions that also tie into top line, I suppose also is, you said in this quarter that you returned to more normalized business mix. Could you clarify what that is, what is more normalized in terms of end market and type and how was it different and how that impacted the top line and margins in the quarter?

Tal Pizi, CEO, Accurin: Alright, hi Catherine. Thanks for the question. I think what we would say is the company’s margin is really quite stable and the end market mix doesn’t change much throughout the year other than a slight peak in outage work in Q2 and Q3 with our lesser amount in Q1 and Q4. And on our Q1 earnings call we talked about some of the reasons why Q1 had a lower margin and those reasons were largely around development of staff and hiring for some run and maintain work that we had won and also some utilization issues. You know there’s a few things that suppressed the margin in Q1.

So we might expect slightly lower margin in Q4 but generally Q2 and Q3 are quite similar and this margin from Q2 is quite typical.

Kathryn Thompson, Analyst, Thompson Research Group: Okay. And then along with that, there were it would be helpful if we could better understand what are more one time costs in the quarter, you know, the business transformation costs and what are the potential future benefits of these initiatives. So it could be business transformation, but also anything transaction related in terms of one time cost. But then falling back on the business transformation, what are the potential benefits of these initiatives?

Kristen Schultes, Chief Financial Officer, Accurin: Good morning, Kathryn. Thanks for the question. In terms of the one time costs associated with, we’re still working through our public company build up. And so from a one time perspective, we have costs in there related to that as well as acquisitions. And we will still see some transaction related expenses in the third quarter related to the MD5 transaction.

But I think in terms of looking ahead, we feel good about the opportunities we have with NV5 to accelerate our public company infrastructure and return to a normalized level.

Kathryn Thompson, Analyst, Thompson Research Group: Okay, and then could you give a little bit more color on the transformation and the future benefits? From a transformation? Yeah, because I know that you guys had also talked about really enhancing your portfolio of business. So, it may lead to shedding of lower margin business in order to replace with higher margin business. It’s really that’s kind of the angle where we’re looking to get a little bit more color on the update on that.

Tal Pizi, CEO, Accurin: Okay, sure. I’ll speak to some of the revenue cross selling opportunities and Kristen can talk to some of the cost synergies. You know, first of all, we’re super excited about this acquisition because it creates entirely new end markets for both companies to sell their services in. And I’ll actually let Ben speak a little bit to some of those synergies and examples. But largely we see the combined companies as providing deep turnkey capabilities in the asset integrity management area across many end markets including industrial and infrastructure.

And as we look at the life cycle management of an asset, there are periodic requirements for both engineering and tick or inspection related requirements and that’s true of almost any asset as small as something like a pressure safety valve to as large as something like a bridge or a municipality or an entire gas plant for example. So there’s a lot of back and forth opportunities between engineering and inspection. And maybe Ben, I could ask you to give Catherine just a couple examples of some of our early cross selling initiatives that we’ve experienced.

Ben Hurad, President and Chief Operating Officer, Accurin: Yeah. No problem. Yeah. We’ve already got a really robust program and framework in place just to leverage each company’s geographies, clients and expertise. And it’s looking really, really promising already with some really early wins.

Just some specific examples, our geospatial teams now delivering some drone and LiDAR work in Southern California that was previously going to a competitor through Akuren. Been awarded, NV5 was awarded a pipeline integrity test for a large port which Akuren can now deliver on that project. Our building digitization team has a large retail contract with thousands of retail stores and many of those are actually in Canada. So we’re going through a training program so that the Accurin team can actually deliver on that. And we’ve just submitted a joint proposal for $31,000,000 which includes engineering consulting along with testing and inspection.

So this list is a lot longer and getting longer every day, but we’re very, very excited about the opportunities we’re seeing already.

Kathryn Thompson, Analyst, Thompson Research Group: Great, thank you for that. And final question, just a high level question. With all the focus on AI and data center build out and the energy infrastructure build out, Just some parting thoughts on how Acurin wins against that backdrop.

Tal Pizi, CEO, Accurin: Yeah, I think again this is a really good one for Ben because NV5 has created real market opportunities supporting AI with data centers. So Ben, maybe you could just give some examples of how that is flushing out for business.

Ben Hurad, President and Chief Operating Officer, Accurin: Yeah. The organic growth that we’re seeing through the data center business continues to be strong, both with our international operations. We’re really market leaders in Asia Pacific. We work with all the hyperscalers there. And that’s really been replicated in The US over the last eighteen months.

The growth that we’re seeing there is not slowing down. So we’re very excited around the data centers, both cloud compute and AI. We work in both areas and really looking part of our growth strategy there is not only continuing to grow the services we already provide, but bringing in new services that Acurin provide that are applicable and even on the MD5 side. Power delivery is a huge issue for data centers and something that we’re very well positioned with a large degree of technical expertise in that area.

Kathryn Thompson, Analyst, Thompson Research Group: Great. Thank you very much, and best of luck.

Conference Operator: Thanks, Catherine. Thanks, Catherine. Our next question is from Chris Moore with CJS Securities. Please proceed.

Chris Moore, Analyst, CJS Securities: Hey, good morning, guys. Congrats on the quarter and good morning. Wrapping up so quickly on the transaction. Maybe just a follow-up on what Ben was talking about. Recognizing the integration planning is still pretty early stage, Are there opportunities that you’ve uncovered over the last couple months that even go beyond what you were thinking about initially?

Tal Pizi, CEO, Accurin: Yeah, it’s a tough question, Chris, because we have many opportunities we’ve been thinking of initially. Just to refresh what those are, Ben talked to some very specific things. But maybe one we didn’t talk about is across Canada. Accurine has a very strong footprint with smaller engineering facilities in major cities. And we think about being able to offer NV5 services from those locations that you know we have relationships with existing customers and the Accurane Engineering business today kind of generally ends at materials expertise, rotating equipment expertise, failure investigation, fitness for service.

But NV5 has such depth of experience in infrastructure and buildings that will will be an immediate cross sell for us. Over time, we’ll build that expertise locally, but initially we’ll sell it locally. Definitely, we feel very strong. You know, I gave examples of Ag how we’ve been having several opportunities in the infrastructure space to demonstrate our ability to do inspection, access solutions and engineering. And now that just expands significantly with NV5 capabilities.

And on the NV5 side, you know, they’re often in a position as consulting engineers to be a general contractor managing various projects. And generally, you avoid requesting additional services to subcontract. And even in that environment, they are subcontracting NDT work on occasion. And now we’ll seek to include NDT on those contracts. So you know there’s a lot of excitement and early days even you know the day of close we had calls from NV5 engineers looking for accurate to supply failure investigation expertise on projects.

So, you know, every day we are we are learning new things, but I think what I gave you are the main themes.

Chris Moore, Analyst, CJS Securities: Very helpful and I appreciate that. Obviously, different opinions on where this economy is headed. Assuming there is a meaningful slowdown over the next twelve months, Any areas within Accurane or MV5 that are likely to be more impacted?

Tal Pizi, CEO, Accurin: Sure. I’ll speak for the Accurane business and Ben maybe you can comment on any end market dynamics that you see. On our side, you know our business has really been fairly consistent across our end markets which sort of speaks to the resilience and the essential services that we provide. We do see in the particularly in chemical that some of our customers are more strained with their end markets and their product being oversupplied. And so that work, they still do the required work, but maybe some of the more discretionary suspending like sustaining capital could be reduced.

But beyond that, you know, we don’t see any significant end market headwinds. And we did see a slight uptick in fabrication and manufacturing. It could be a sign of reshoring, but I think it’s just a modest uptick.

Ben Hurad, President and Chief Operating Officer, Accurin: I’m talking Nate on the NV5 side. I mean we’re really focused on building a business around mandated services and we’re not looking to see any issue through any downturn. I think we’ve already felt the pain of Doge as far as our geospatial group through the first part of this year and we’re through that now. So we feel good about the twelve months ahead.

Chris Moore, Analyst, CJS Securities: Perfect. Got lots to follow-up with later on, but I will leave it there. Congrats again.

Conference Operator: Thanks Chris. Thanks Chris. Our next question is from Andrew Wittmann with Baird. Please proceed.

Andrew Wittmann, Analyst, Baird: Great. Good morning, everyone. Thanks for taking my question. I guess I just wanted to dig in a little bit more on the results from the quarter. You had the comment to that the call out work, Tal, was very strong in the quarter.

Just hoping you could just kind of drill into that a little bit more. What things have you seen in the quarter that led to the call out work? And can you just talk about how that the implication that that is strong suggests that maybe the run and maintain work was not as strong. So could you just give maybe how much like how what was the growth year over year on the call out work and maybe talk about the, what the implication is for the run and maintain work in the quarter?

Tal Pizi, CEO, Accurin: Sure. You know, first of all, I want to emphasize that the variance between our various nature of works, are run and maintain, call out, outage, and project work, was not really very different than normal. But of course you can Pareto anything, and when we talk about what’s up more than down, call out stood out as a slight uptick. And so it’s not significant, but it was higher than last quarter. And so as we look at that, there were a few projects we did across both countries and one that stood out is we had some containment work this year.

So containment is an area where automotive parts manufacturers, if they have a defect supplying parts to one of the auto manufacturers, then then their customer will put them in containment, which means they need to do a 100% inspection of all of those parts before they’ll accept them for installation in a vehicle. So we, you know, we’ll have semi trailers show up at one of our labs to do those parts inspection. We did in the quarter, we had some of that work which wasn’t there in the second quarter last year. So that more than any one thing probably provided a bit of an uptake in the call out work, but it wasn’t really abnormal variance.

Kristen Schultes, Chief Financial Officer, Accurin: Andy, just to summarize, think if you look across the service, the nature of work mixes, we saw growth in our run and maintain business, which as we’ve talked about before is the most, the stickiest, most stable recurring revenue that we have. We saw growth in the call out as well and less growth on the turnaround side and that is attributable to just timing shifts.

Andrew Wittmann, Analyst, Baird: Got it, thanks. And then I guess my follow-up question was just trying to understand the prior year just because you weren’t public last year. Just what was it about the prior year quarter comparison that was unusual that had the difference from from this year, which was more typical?

Tal Pizi, CEO, Accurin: So the outages, they all shift around a little bit quarter to quarter. And I’ve I’ve said a few times just to reiterate, Q1 and Q4 are generally lighter, like maybe half the size of Q2 and Q3, and the variance between Q2 and Q3 can change each year. Now last year Q2 was larger than Q3, and this year we expect Q3 to be larger than Q2. And I’m speaking to the outage work, which is just a little over 10% of our total revenue.

Kristen Schultes, Chief Financial Officer, Accurin: So Andy, if you’re looking at margins from a comparable period, our margins this quarter were 28%, which we feel are more normalized. There was a one time discrete overhead pickup in the prior year quarter that we didn’t see this year, and so that affects the comparability. But in general, 17% business, our margin for this quarter outperformed our full year of last year. And so we feel like this quarter is more indicative of our normalized business.

Andrew Wittmann, Analyst, Baird: Great. Thank you for that texture on the quarter. I appreciate it.

Kristen Schultes, Chief Financial Officer, Accurin: Our

Conference Operator: next question is from Josh Chan Please proceed.

Karim Sunghani, Analyst: Hi. Good morning. This is Karim Sunghani on for Josh. So I think in your prepared remarks, you mentioned that the cost synergies, the $20,000,000 in cost synergies from MB five seems a bit conservative. So I’m just wondering, are there any other areas of the businesses that you recognize where you can gain some additional cost synergies or would it just be around the corporate function side?

Kristen Schultes, Chief Financial Officer, Accurin: Good morning. Thanks for the question.

Robbie Franklin, Executive Chairman, Accurin: Ahead, Kristen.

Kristen Schultes, Chief Financial Officer, Accurin: Okay. Yeah, so in terms of business optimization including cost synergies, the more we learn the more excited we get. This deal closed ten days ago and the way the nature of the transaction came about, we did not have a lot of ability to plan the integration or provide more detail on synergies until now. Like Robbie mentioned, the integration office has been launched and we are excited to come back in November with a more bottoms up approach and a refined number. But in general, we just continue to be more and more excited about both top line synergies, revenue synergies, cross selling opportunities, and then also cost optimization within the combined business.

Robbie Franklin, Executive Chairman, Accurin: Yeah, all I would add is that our approach is sort of going from corporate all the way to the branch level where we wanna optimize and cross sell services at the very local level, kind of across all of our regions. So the opportunity, we’re not looking at it just as a corporate exercise.

Karim Sunghani, Analyst: Got it, that’s helpful. Thank you.

Conference Operator: With no further questions, I would like to turn the conference back over to Tal for closing remarks.

Tal Pizi, CEO, Accurin: All right. Thank you everyone for joining us today and for your thoughtful questions. We appreciate your continued support and look forward to updating you on our progress as the combined organization next quarter. We’re excited about the opportunities ahead and remain committed to executing our integration successfully while maintaining our focus on operational excellence and customer service. Thanks again.

Have a great day.

Conference Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.

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