Atco Q1 2026 Earnings Call Transcript

Atco (TSX:ACO) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=XPb2K8fW Summary Atco reported adjusted earnings of $165 million for Q1 2026, a 3% increase year-over-year, driven by growth in utility investments and increased activity in Atco Structures. The company highlighted a strategic focus on defense opportunities in Canada's North with a potential $35 billion investment in infrastructure upgrades, emphasizing their expertise in Arctic and defense operations. Atco Structures achieved its fifth consecutive quarter of earnings growth, supported by strong space rentals and modular construction sales, with an investment in expanding manufacturing capabilities. Significant future growth is anticipated from defense sector opportunities and ongoing projects such as the Stibnite Gold project, with a strong backlog of $113 million in new contracts secured in Q1. Management emphasized the strength of Atco's diversified portfolio in delivering stable earnings and dividends while continuing to explore opportunities for long-term investments in strategic sectors. Full Transcript Colin Jackson (Senior Vice President, Financial Operations) Thank you and good morning everyone. We are pleased you could join us for ATCO's first quarter 2026 conference call. On the conference line with me today we have Katie Patrick, Chief Financial and Investment Officer and Adam Beatty, President of ATCO Structures. Before we move into today's remarks, I would like to take a moment to acknowledge the numerous traditional territories and homelands on which our global facilities are located. Today I am speaking to you from our ATCO Park Head Office in Calgary which is located in the Treaty 7 region. This is the ancestral territory of the Blackfoot Confederacy comprised of the Sisika, the Kainai, the Pagani and the Sutina Nation and the Stoney Dakota nations which include the Chiniki Bears, Par and Good Stoney First Nations. I also want to recognize that the city of Calgary is home to the Metis Nation of Alberta districts 5 and 6. We honor and respect the diverse history, languages, cities, ceremonies and culture of the Indigenous peoples who call these areas home. Today's remarks will include forward looking statements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please refer to our filings with the Canadian securities regulators. During today's presentation we may refer to certain non GAAP and other financial measures including adjusted earnings and adjusted ebitda. These measures do not have any standardized meaning under IFRS and as a result they may not be comparable to similar measures presented by other entities. And now I'll turn the call over to Katie for her opening remarks. Katie Patrick (Chief Financial and Investment Officer) Thanks Colin and good morning everyone. Thank you for joining us today. Despite the ever changing geopolitical landscape across the world, we continue to execute and deliver on our strategy across the ATCO portfolio. Some of you may have seen our refreshed brand launch which rolled out last week. Energy, Housing, Defense. It's hard to think of three more relevant trends in the world today and ATCO has a long history and is extremely well positioned in each. Our long term investment focused and diversified nature of our assets positions our business businesses to drive growth for the total portfolio, generating stable earnings and dividends for shareowners. We often talk about our strategy related to housing through ADCO Structures and energy through Canadian Utilities, but today I thought we would begin by talking a bit more about the defence opportunity ahead of us and how ATCO is positioned in particular. As you can see outlined on the slide, there is a landscape of growing opportunities in Canada's North. The Federal Government has shared its commitment to invest in Canada's defence sector with a significant focus on the Arctic. This includes $35 billion of funding towards defense infrastructure upgrades, new Northern Operational Support hubs, modernizing and upgrading Arctic airports, civilian infrastructure and key economic hub developments. Aligned with our expertise, we see Canada's north as a critical development opportunity. ATCO has a demonstrated history of success in what we feel are the four critical elements to success. First, Arctic experience Second, Defense experience Third, Construction experience Fourth and most importantly, Indigenous participation and partnerships. For close to 40 years ATCO Frontec has operated in the most remote parts of North America's Arctic. We are a trusted defence partner who operates and maintains critical defence infrastructure like the North Warning System, a joint Canadian and United States radar network monitoring Arctic airspace and the Alaska Radar System. ATCO Frontec provides comprehensive operational support, site services, facility maintenance and logistics. We also have trusted Indigenous partnerships built over the course of many years operating in the North. To be specific, across ATCO we currently have 73 partnerships, MOUs and arrangements with Indigenous groups. This is something we are incredibly, incredibly proud of and aligns with our history and ongoing commitment of collaborating with Indigenous communities. As a demonstration of the types of investments we are talking about, in March we announced a $10 million investment in West Kitikmeot Resources, or WKR, who will develop the Grays Bay Road and Port Project in Nunavut. This critical project is highlighted in the Federal Government's Nation Building Projects list. While it is very early days today, this partnership should be thought of as a growth investment. We believe WKR will one day develop into a strong foundational investment for atco. The Grays Bay Road and Port project strongly aligns with ATCO's existing expertise and strategy in the north while building on our growth oriented assets across the housing, energy and defense sectors. Now moving to the quarter's results, ATCO achieved adjusted earnings of $165 million or $1.47 per share in the first quarter of this year. This is up 3% year over year and in line with our expectations for the quarter. Results were driven by growth in the utilities as well as increased sale and leasing activity in Canada at aktostructures. The quarterly results reiterate the benefits of our diversified portfolio of investments. Looking at the specific businesses, ATCO's investment in Canadian Utilities Ltd. Delivered adjusted earnings of $127 million for the quarter, up $5 million year over year. Higher adjusted earnings were primarily driven by growth in rate base at ATCO Energy Systems as well as higher rates and favorable CPI adjustments at Aquagas Australia. As mentioned on this morning's CU call, there is significant momentum across our utility assets in Alberta and we expect earnings growth on a full year basis. ATCO Structures and Logistics delivered adjusted earnings of $28 million up 4% year over year. Adjusted earnings at ATCO Structures were driven by the space rentals portion of the business along with earnings from our stibnight project, which Adam will speak to in his remarks. Looking at the full year 2026, we expect to see strong organic earnings growth across the portfolio of investments. With that, I will now pass the call over to Adam to discuss our atcostructures and logistics business. Adam Beatty (President of ATCO Structures) Thank you Katie and good morning everyone. I'll focus my comments on ATCO Structures and how our first quarter performance reflects the operating metrics you see in today's material ATCO Structures. Delivered $27 million of adjusted earnings in the first quarter, making our fifth consecutive quarter of year over year earnings growth. This performance reflects the durability of our diversified model across space rentals, workforce housing and permanent modular construction and is a credit to the teams across our operations. Earnings in the quarter were supported by strong space rentals activity, permanent modular construction sales and contributions from our progress on the Stibnight Gold project. Importantly, our results continue to be underpinned by disciplined execution and a focus on deploying the right mix of rental fleet and manufacturing capacity to meet our customers needs. During the quarter we increased our global space rentals fleet by 5% while maintaining our desired utilisation target. The average rental rate increased by 7.7percent year over year to $863 per month on average, reflecting price discipline across ACCU geographies. The improvement in fleet performance contributed to the $65 million of adjusted EBITDA generated in the quarter which grew 5% over the prior year. The modular industry continues to benefit from demand for fast delivery, high certainty on schedule and quality versus traditional construction, particularly in affordable housing, education, community infrastructure and resource development. ATCostructures serves these areas well because of our scale, our ability to offer end to end solutions and our established branch and manufacturing network that keeps us close and responsive to our customers. Additionally, this quarter ATCO Structures invested in the launch of a national advertising campaign throughout Canada showcasing our expertise across multiple modular residential, commercial and industrial construction applications. This campaign garnered considerable positive feedback and generated an increase in inbound leads for our Canadian operations. I'll pause on the scale of our platform because it is a meaningful differentiator in the modular industry. Globally we operate 44 branches and 13 manufacturing locations across five countries. Over the last several years we have expanded our operations and manufacturing footprint through organic growth, targeted acquisitions and investment in lean manufacturing process optimisation. Leveraging this scale and efficiencies, we have increased our ability to serve customers globally better than ever. The integration of NRB Modular solutions is another good example of how we can add capacity and capability efficiently and strengthen our reach and serviceability for existing and new customers. We are also advancing the expansion of our Grimsby, Ontario manufacturing facility. This factory expansion has been designed to increase our throughput and create operating synergies across our vertically integrated business segments with a more efficient production flow and an expanded product mix and nearly double the production capacity. Our integrated model, which includes design, manufacturing, delivery, installation and in many cases ongoing operations and services, allows us to provide turnkey solutions that customers value, particularly where speed, safety, cost and delivery certainty and logistics complexity matter. The mix of offerings also supports a more resilient earnings profile across cycles. The Stibni Gold Project remains a key execution priority for our US Business. This is our largest dollar value contract in the US today and it showcases our industry leading ability to deliver complex large scale workforce housing solutions. As a reminder, this scope includes a 1000 person turnkey workforce, accommodation village and associated office facilities. In Idaho, manufacturing is well underway with approximately 1/3 of units already built. We continue to execute to our budget and quality standards with work progressing across design, manufacturing and site readiness in coordination with the customer. The next phase involves completing the remaining manufacturing scope and advancing site installation and service tie inside. As we move through these stages, our focus remains on safe execution, schedule discipline and managing interfaces to support a smooth project handover process. Beyond Stibnight, we continue to see healthy bid activity and customer demand across our key markets and we converted a number of those opportunities into awards during the quarter. With this secured backlog entering the peak construction season in North America which has seasonally heightened demand, we see clear opportunities to continue our growth profile. In the first quarter we secured $113 million of new projects across our key geographies including Canada, the United States and Australia. These awards reflect continued demand across our modular products, manufacturing and service capabilities and they are a selective representation of the type of work we execute day in and day out. In Canada we continue to see opportunities supported by government commitments such as increased financial commitments to defence housing by Canada initiatives and customer demand for high quality, quickly delivered homes and and community spaces. With our Canadian origins, scale, geographic footprint and experience delivering modular solutions, we believe we are well positioned to compete. During the quarter we secured multiple contracts in Canada totaling $73 million in highlighted awards. Of note on the slide you can see a rendering of the second affordable housing contract we've secured with attainable homes Calgary in the United States. While we continue to progress works on Stibnite, we also secured an additional $23 million in new sales and lease contracts during the quarter. These awards reflect opportunities across industrial, infrastructure and energy related end markets. Moving to Australia Our platform continues to benefit from demand in both Queensland and Western Australia and our expanded manufacturing presence supports our ability to respond. In the first quarter we secured $17 million of nominated contracts in the region and we are seeing increased demand for housing, energy, infrastructure and resource opportunities. I'm very proud of our team's work to continue to drive growth and secure new opportunities for our business. Our teams continue to secure opportunities aligned with the sectors where modular delivers clear advantages. Subsequent to the quarter end we were awarded a new $55 million contract to design and construct a 400 person accommodation village in Western Australia. We also received a limited notice to proceed for early stage works including infrastructure planning, camp design and securing manufacturing line time for a large min in Western Canada valued at approximately $45 million. Together these conversions underscore ongoing customer demand and the breadth of our capabilities across our geographies. I'll wrap up my remarks by reiterating what differentiates ATCO Structures in a modular industry that continues to expand as customers look for speed, certainty and quality. We deliver quality custom modular manufacturing solutions catering to customers needs and market demands and as shown on this slide, compared to peers, AKTCO Structures is differentiated across the spectrum of products and services and we pair that with a track record of delivering. We're proud of a demonstrated performance of executing projects both large and small in scale, on time and on budget. We have the modular advantage with the capacity and capabilities needed built from 80 years of proven industry leading performance. And with that I'll now pass the call back over to Katie. Katie Patrick (Chief Financial and Investment Officer) Thank you Adam. With Adam highlighting the growth within ATCO Structures and its competitive advantages compared to peers, we believe that ATCO Structures continues to be undervalued by upwards of $2 billion on a sum of the parts basis when compared to peers overall. ATCO's results were in line with our expectations. And again, the results highlight the strength of our diversified portfolio of investments. That concludes our prepared remarks. I will now turn the call back to Colin. Colin Jackson (Senior Vice President, Financial Operations) Thank you, Katie and thank you, Adam. In the interest of time, we ask that you limit yourself to two questions. If you have additional questions, you are welcome to rejoin the queue. I will now turn it back to our conference coordinator, Asha for questions. Asha (Operator) Thank you, Colin. To join the question queue, you May press star then 1. On your telephone keypad you will hear tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press Star then two. The first question comes from Rob Hope with Scotiabank. Please go ahead. Rob Hope (Equity Analyst) Hello everyone. Appreciate all the commentary on the opportunities in Canada's north and do acknowledge that the government is keenly focused on this area. When you think about your opportunity sets here, it does appear that everything is relatively longer dated or, you know, when you think about how your earnings could grow in this region. Are there some more near term opportunities we should be looking to? Katie Patrick (Chief Financial and Investment Officer) Yeah, thanks, Rob. I do agree a lot of these investments will be longer term, longer dated. That being said, I think the government has a pretty aggressive stance on particularly on upgrades of some of the existing defense facilities that they have in the north and they have committed to fast timelines for the RFP process for that. So I think there is some opportunity for near term earnings. But this is a, certainly for Canada and for ourselves, a longer term investment in upgrading the north that will take quite some time to fully roll out. Rob Hope (Equity Analyst) I appreciate that. And then I guess in the spirit of the new corporate branding and the focus on defense, you know, you highlighted a number of the opportunities also in the North. But when you think about the broader opportunity in the defense sector, anything incremental that you're looking at in terms of business lines or geographies? Katie Patrick (Chief Financial and Investment Officer) No, I mean I would just highlight, you know, AccoFrontac, as I said in my remarks, has had long history of operating in the defense sector and it's done a variety of different things on a facility's operations and maintenance for a long time. We have a very diverse resume, so to speak, of the different types of operations that ATCO Frontec can handle. So. So I think stay tuned. But I think there's a lot of different ways that ATCO Frontec can help in the defence sector and also I should add Sorry. That there's clear opportunity and maybe I'll let Adam talk to that on the structure side from a defence perspective as well. Adam Beatty (President of ATCO Structures) Yeah. Hi, Rob. Yeah, there's certainly also a lot of defence opportunities below the Arctic in terms of defence housing and just bases across Canada upgrades. And that will also drive. I think there's seven and a half thousand houses required across 25 bases within Canada. So that's another opportunity for us. Rob Hope (Equity Analyst) All right, thank you for the color. Appreciate it. Asha (Operator) The next question comes from Ben Pham with BMO. Please go ahead. Ben Pham (Equity Analyst) I want to follow up on that last question. On the Aqua Storm strategy, you categorize it as a growth investment. Can you remind us that bucket what that means versus your yield and balance categories? Ben, sorry, you were breaking up just a little bit for some reason. I wonder if you could just repeat the question. And I don't know if this will help, but maybe you can just lean into your microphone a little bit. Okay, I'll try it one more time. And maybe because I'm unplugged the cord there, my question is. I think that's better. It's better now. Okay. Yeah. My question is on the Northern strategy, you categorize it as a growth investment. Can you remind us what a growth investment is defined for axle and how it compares to your yield and balance categories? Katie Patrick (Chief Financial and Investment Officer) Yeah, we didn't. I think this is one of the first quarters where we actually don't have the pyramid. That kind of highlights the way that we think about our portfolio from a financial perspective. So just a reminder, at the base, we have the foundational investments, which include our utilities that provide stable cash flows. And then in the middle of the pyramid, we have what we would call value investments that would have a balance of faster growth than potentially the utilities with some yield, that is dividends coming from that and in the top. And this is where you're going to. I think, Ben, we talk about our growth investments and really when we talk about our growth investments, those are investments that do require some capital and commitment before they start to deliver cash flow generation back to us. So as it relates to the North, I think the north is definitely a growth area, just generically the term growth, but potentially Grays Bay. I would put in that growth investment category where obviously there will be some required investment and cash flows going into that to yield long term stable foundational cash flows in the longer term from that particular investment. Ben Pham (Equity Analyst) Okay, so it sounds like I'm just unpacking a bit. It sounds like you have a timing difference on investment versus contribution but is there differences on returns or size the opportunity in that category? Katie Patrick (Chief Financial and Investment Officer) No, not necessarily. You know, they. In that top category, we could have things that could have very quick return profiles, but they need capital investment in the short term or they could be much longer term with potentially more infrastructure like returns. We don't necessarily differentiate there. Ben Pham (Equity Analyst) Okay. And as you think about building this northern strategy out more, which you really have a presence there. Is there, is there anything you need to do in a manufacturing side? Setting up new sites for manufacturing or redeploying human capital in terms of just positioning that from a long term perspective? Adam Beatty (President of ATCO Structures) I can just generally talk to ATCO and I'll let Adam talk to Ako Structures. As you would know, the north is pretty remote. There's not a lot of industrial activity right now. So at least in the near term, overall from an ATCO perspective, I think a lot of what we would be doing would be leveraging our strong base in the south of Canada to try and provide the services and products that we need to help build the infrastructure in the North. But maybe I'll turn over to Adam specific to structures. Yeah. Hi Ben. As you're aware, we've got five manufacturing facilities across Canada. So our geographical placement on where our manufacturing capacity currently sits is well positioned to service the north both from road access and also access to ports as you ship in product and demand. So I think with our expanded capacity over the last few years, we're very well positioned to provide competitive logistical and manufacturing capacity to access the North. And as you're well aware probably is there's limited labor force that currently resides within the Arctic. So there's going to be, as these projects progress over time, there's going to be a huge demand for workforce accommodation and probably site offices within that region as these projects start to formulate over time as well. So we think both our fleet position, our manufacturing locations to access those regions are very well placed. Ben Pham (Equity Analyst) Okay, great caller, thank you. Asha (Operator) The next question comes from Maurice Choi with RBC Capital Markets. Please go ahead. Maurice Choi (Equity Analyst) Thank you. And good morning everyone. If I could start with your investment in wkr. You mentioned this could be a foundational investment for atco. Should we view this in the same way as what Neltume Ports mean to atco? Or if this is different, can you paint us a big picture view about what this platform could be for you say in 10 years? Katie Patrick (Chief Financial and Investment Officer) Yeah, for sure. I think we wanted to be very clear. This is a. Thanks, Marius, for the question. This is a $10 million investment for a 40% stake in the company. So this is not a big investment obviously at this time. But right now the projected spend is $1.5 billion to develop out what's being talked about there in terms of the airport, the road and the port. And that could be more obviously. So I think this obviously will be a large capital project and we probably will have other partners involved. But if you think about that, and this is out to 2035. Right. So this is a long term investment. But once that is operational up and running, it very well would look similar to some of the Neltume to the Neltume ports investment that we have. Obviously it's going to be a, the intention is to have it be a joint defense and commercial operation. And so I think there's a lot of opportunities, there's a lot of critical minerals in the north there that need access to ports. And so there's been a demand developing to try and get that port built so that those miners can get their minerals out. So I think there's a lot of good things around it. As I said, it's been referred to the major projects office and I think the federal government is very committed to trying to get that moving and we're working closely with them to try and advance it. So long story short, yes, it could be a large infrastructure project that in the long term has strong foundational benefits for atco. Maurice Choi (Equity Analyst) Understood. If I could just have a quick follow up to that. I appreciate that you mentioned the critical minerals element in that region. WKR if I'm not mistaken, also is involved with a portfolio of mineral properties. So is your relationship, an investment in WKR limited to just this road and port project, does it involve those mineral properties or is it just, I guess isolated. Isolated this and other infrastructure? Katie Patrick (Chief Financial and Investment Officer) Yeah, no, you know, we are investing in the WKR entity and yes, they do have some smaller investments in some of the mineral activities in the region. But the primary benefit that we add is helping them to advance on that project. But that's not necessarily going to be the end of the relationship in that entity and we'll see where things develop. But that's obviously where we have the stronger interest in the infrastructure development. Maurice Choi (Equity Analyst) So I shouldn't take this as being that ATCO is moving into that side of the business, specifically on minerals mining, so and so forth. Or is it that. Katie Patrick (Chief Financial and Investment Officer) No, I wouldn't necessarily, I wouldn't necessarily know. This is not a diversification expansion into as a mining company for atco. I think it's, you know, it's part of their portfolio. But that's not, as I said, was not the primary driver of our interest in that investment. Maurice Choi (Equity Analyst) That's good to know. And if I could just finish off with a big picture question about your themes, Defense, housing and energy. When you look out the next five years and think about your incremental earnings growth for atco, is there a way to split it in terms of percentage what each of these three categories would be? Katie Patrick (Chief Financial and Investment Officer) I don't think we've necessarily quantified that, as you know. I think as you can see, structures has, especially when you look at the denominator base, has a more rapid growth profile than our energy portfolio. And so you'll see structures continue to grow as a percentage of the overall portfolio. It should be relatively obvious from our financial statements that at the moment the defence sector is a smaller portion of our overall portfolio. But it certainly has on a percentage basis the greatest ability to increase quickly. Right now I think we're about roughly 2/3 energy, 1 third roughly housing. And I think you'll see, you won't see defense start to get near to those levels, but it certainly does have an opportunity to grow relatively quickly in the next few years. Maurice Choi (Equity Analyst) Understand. Thank you very much. Asha (Operator) The next question comes from John Mold with TD Cohen. Please go ahead. John Mold (Equity Analyst) Hi. Morning. Maybe just going back to the Grays Bay rodent port project, the $10 million equity stake in WKR and appreciate that's gradual over time. Is this kind of equity stake something we could see more of in northern infrastructure investment opportunities from Ako's perspective or should we view this as more of a unique case where this kind of structure was important in advancing the initiative more broadly? Katie Patrick (Chief Financial and Investment Officer) Yeah, no, I would say I'm starting the question. I think absolutely we would be interested in doing something similar to help expand the north and help get things going related to everyone's ambitions to really have nation building projects for the Arctic. So you know, there's nothing immediate currently on the radar right now that would mimic that, but we would absolutely be open to similar type structures for opportunities that are complementary to our existing portfolio businesses. Adam Beatty (President of ATCO Structures) Okay, thanks for that. And then maybe just in the broader structure and logistics pipeline, you know, you did flag 100 million of committed contracts in April. I know there's no specific backlog, but just sort of directionally how's the balance of the year shaping up in terms of additional firm contracts and what is the potential dollar figure broadly compare? Like how does it look compared to where things stood at Q1 last year? Just in terms of trying to think about the trajectory for the Balance of the year. Good morning, John. Certainly. Look, I think the good thing is that conversion rates and these few projects that we've highlighted here are isolated really outside of our normal course of business. So we're seeing the activity pick up in terms of pipeline opportunities. So I think the $213 million that we've nominated here or we've highlighted here, compounded with the stibnite project, the $179 million contract certainly bodes well for a good backlog of opportunities to compound on what's already been awarded both into the back half of this year and then also pushing into 2027. So I think there's, I would say a similar trend that we're seeing coming in the next quarters in terms of project pipeline and we're seeing increased pipeline activity and I'd say reasonably significant increase in pipeline activity on this time last year. John Mold (Equity Analyst) Okay, great. I'll leave it there. Thank you very much. Asha (Operator) The next question comes from Mark Jarvi with CIBC Capital Markets. Please go ahead. Mark Jarvi (Equity Analyst) Thanks. Just wanted to follow up on the last question in slide 13. Just it's encouraging to see the breadth of the opportunities. Adam, just curious if you think that continues here through certain sort of end markets, whether it's geographic or industry markets you feel like are even accelerating more than others at this point. Adam Beatty (President of ATCO Structures) Sorry, can you just repeat that last bit there, Mark? Yeah, I was just curious if there's certain geographies and or end markets you're seeing even faster acceleration in terms of pipeline activity and conversion rates. Yeah, certainly. Look, I think the resource sector is very robust in all of our geographies at the moment. Critical minerals, iron ore in Australia, some expansion down there. Gold is very strong. We're seeing as we've highlighted in the US a lot of data center infrastructure investments and nuclear investments there. We've got some large elements like the Olympic Games expenditure in Southeast Queensland in Australia that's driving some infrastructure spend and a lot of government initiatives around housing funding and certainly some compounding demand in that sector both in Canada and Australia. So I think those are key sectors that we're seeing and the interesting things that we haven't commented on defence there, but that's a building pipeline. And the interesting thing about defence, as you look at this build out of infrastructure, it really bodes well for both workforce housing and also housing itself and also our space rentals business. So I think you've seen a tick up in terms of our space rental utilization and I think we can see that that's going to be strong a continuing strength in our space rental utilization as well. Mark Jarvi (Equity Analyst) Just given those trends, Adam utilization and also sort of diverse broad end markets, how would you frame sort of where margins can trend from here? Does it feel like the mix of business coming in is very similar to what you would have executed over the last 12 months and therefore margins should have largely hold steady for here? Adam Beatty (President of ATCO Structures) Yeah, I think our margins will stay pretty consistent. So while the price of goods may go up, there'll be some slight increases in cost. You've seen some of that pass through with some fuel price increases. So I think that's very manageable. But the margin percentage will probably stay very consistent. Mark Jarvi (Equity Analyst) Okay, thanks. Asha (Operator) This concludes the question and answer session. I would like to turn the conference back over to Mr. Colin Jackson for any closing remarks. Please go ahead. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.