ITG's Public Debut: Data Centers and Fiber Fuel a 38% Revenue Surge
The engineering and construction firm issues strong guidance after its IPO, with new MSA awards and a tuck-in acquisition.
ITG · Earnings Call · 2026-08-13
From Private to Public
ITG, Inc. marked a pivotal transition on July 2 when it completed its IPO, raising $323 million in net proceeds. On its first earnings call as a public company, management struck an upbeat tone, emphasizing that the move provides public market credibility and financial flexibility. CEO Andy Parrott opened by noting, “We have been building and executing ITG's growth strategy for more than a decade as a company, and our transition to the public market provides additional financial flexibility as we enter the next phase of our development.” — Andrew Parrott, Chief Executive Officer · 2026-08-13 The company's second-quarter results reinforced that confidence, with revenue climbing 38% year-over-year, driven by acquisitions and double-digit core growth in the engineering and maintenance (E&M) line, partially offset by a slower start in infrastructure deployment. The quarter's performance was not without nuance. CFO Chris Mecray noted that the second quarter is typically the slowest growth period, and while core growth was slightly below plan due to a delayed construction ramp from a cold winter, the company still beat its own top-line target. Adjusted EBITDA rose 21% to $52.2 million, though margin contracted to 12.9% from 14.7% a year ago, largely due to start-up costs and revenue mix changes from recent acquisitions.The Growth Engine: Backlog and Data Centers
The most striking signal from the call was the company's expanding backlog. Next-12-month backlog reached $1.5 billion, up 6% sequentially and 21% year-over-year, while total backlog beyond the next 12 months jumped 33% to $3.3 billion. This visibility is anchored by MSA contracts, which Mecray described as the "best gauge" of future results. The company secured eight new or extended MSA awards during the quarter, including a notable win from Ziply Fiber and Intrepid Fiber Networks, both focused on large-scale fiber network expansion. Data centers emerged as a key growth vector. Chris Mecray stated, “The back half of the year is expected to be substantively stronger than the first half from data center work.” — Christopher Mecray, Chief Financial Officer · 2026-08-13 This aligns with global trends—data centers and AI infrastructure are recurring themes across the market, and ITG is positioning itself as a critical enabler of fiber connectivity between these facilities. CEO Andy Parrott highlighted the shift toward interconnect work between existing data centers, noting, “We're seeing other kind of tactical things where people are looking at data centers in existing locations and repurposing them and potentially leveraging more of a scattered outlay that allows ITG to do a lot more like interconnect activity in between multiple data centers.” — Andrew Parrott, Chief Executive Officer · 2026-08-13 The company expects data center revenue to exceed $65 million this year, growing by multiples over the next few years. The infrastructure deployment segment, which includes fiber rollouts, saw a 42% year-over-year increase in backlog, underscoring the momentum in broadband expansion. Management was careful to note that backlog is not guaranteed revenue, but the sheer scale of contracted work provides a strong foundation for growth.M&A and Diversification
ITG also announced its first post-IPO acquisition: a tuck-in purchase of select assets from Full Circle Fiber, a company in the same digital broadband space. While financial details were not disclosed, Mecray said the deal adds "hundreds of people" and is "very much along the lines of some of the transactions that we've done historically." The acquisition is expected to contribute positively immediately, with rapid integration into ITG's FUSE360 platform. The company's customer base remains concentrated among key players like Comcast and Charter, but management emphasized a strategy of land-and-expand. Andy Parrott explained, “We are getting a larger percentage of the total spend even if the capital allocation is actually reducing for them collectively.” — Andrew Parrott, Chief Executive Officer · 2026-08-13 This reflects a broader trend of customers consolidating their vendor lists to a handful of strategic partners, a dynamic that plays directly into ITG's scale and operational density. Looking ahead, ITG guided to 35% full-year revenue growth and 36% adjusted EBITDA growth, with infrastructure deployment expected to outpace E&M in the second half. While the fourth quarter is seasonally softer, management remains confident in the trajectory. Parrott summed up the sentiment:The company's first public quarter serves as a clear declaration of intent: with a robust backlog, a rising data center pipeline, and an active M&A strategy, ITG is positioning itself to ride the secular wave of digital infrastructure investment. The service lines are expanding, and the strategic partners are deepening—both signals that this is more than a one-quarter story.We are excited about the opportunities ahead of us, and we look forward to reporting on our progress.