Infrastructure and Energy Alternatives, Inc.

Total revenue increased 30% year over year to $360 million. Companywide gross profit was $3.8 million, down from $16.5 million last year, and gross margin was 1.1% versus 6.0% in the prior-year quarter. SG&A was $34.9 million, up from $24.8 million, and interest expense was $6.0 million versus $14.4 million a year ago. On the balance sheet, cash and cash equivalents were $28.7 million, total debt was $366.5 million, and total liquidity was $161.4 million. Backlog was $2.9 billion, up 10% year over year, and next-12-month backlog was $2.1 billion, up 13%. Management raised full-year revenue guidance to $2.2 billion-$2.5 billion and maintained adjusted EBITDA guidance at $140 million-$150 million.

JP Roehm emphasized that core renewable and environmental markets remain robust, with strong organic growth, record backlog, and a healthy pipeline across wind, solar, heavy civil, rail, and environmental remediation. He spent much of the call framing the margin pressure as external and temporary, citing inflation, fuel, and supply-chain disruptions rather than execution problems. His tone was confident but cautious: he said IEA has baked in near-term headwinds and still expects improved margins over the balance of the year.

Pete Moerbeek quantified the quarter’s pressure points: revenue was $360 million, gross profit was $3.8 million, gross margin was 1.1%, SG&A was $34.9 million, and interest expense was $6.0 million. He said the quarter included a $12.9 million immediate margin adjustment tied to reforecasted project costs, and that 2022 fuel costs are now expected to be $10 million higher than earlier estimates. He also highlighted liquidity of $161.4 million, with $28.7 million of cash, $132.7 million of revolver availability, and $366.5 million of total debt, while noting the warrant repurchase program removed over seven million common shares from the potentially fully diluted share count. He said SG&A should fall toward about 6% of revenue for the year and that the company expects to return to positive operating cash flow.

Analysts pressed management on how confident it was in achieving the implied EBITDA growth despite the weak first quarter, and JP Roehm said the company has backlog, projects are in the field, and there are no problem jobs currently. Questions also focused on wind project timing, with management saying some 2022 wind work shifted later because of commodity inflation, but that 2023 wind activity appears to be picking up. On solar, management explained that projects tied to potentially tariff-impacted modules are continuing with civil/mechanical work while module installation may be delayed, whereas projects using domestic modules are on schedule. Analysts also asked about cash flow, and Pete Moerbeek said he expects momentum to improve by the end of the second quarter and that the company should get back to positive cash flow from operations.