Good morning. Today is Wednesday, July 29th, 2026. Welcome to the Toromont Industries Limited second quarter 2026 results conference call. Please be advised that this call is being recorded and all lines have been placed on mute to prevent any background noise. Your host for today will be Mr. John Doolittle, Executive Vice President and Chief Financial Officer. Please go ahead, sir. Very good. Thank you, Angeline. Good morning, everyone. Thank you for joining us today to discuss Toromont's results for the second quarter of 2026. Also on the call with me this morning is Mike McMillan, President and Chief Executive Officer. Mike and I will be referring to the presentation that is available on our website. To start, I'd like to refer our listeners to slide two, which contain our advisory regarding forward-looking statements and specified financial metrics. After our prepared remarks, we will be more than happy to answer questions. Let's get started, move to slide three, and over to you, Mike. Great. Thank you, John. Good morning, everyone, and thanks for joining us this morning. We are pleased with our second quarter and first half performance. Revenue and earnings increased, reflecting solid execution across the business. The Equipment Group delivered growth in new and used equipment sales, enclosures, rentals, and product support. The Equipment Group's operating income was 47% higher in the second quarter as the higher revenue and improved gross profit margins were partially offset by higher expense levels. AVL continued to expand production. During the quarter, we increased our ownership in AVL to 80% and acquired land in Canada to support future manufacturing growth. CIMCO's results were slightly lower in the quarter. Operating income decreased, largely reflecting the lower package revenue due to project timing, lower gross profit margins, and higher expense levels and investments for future growth. Let's turn to slide four for some other financial highlights. Investment in the non-cash working capital was comparable year-over-year. A net effect of higher inventory levels, higher accounts receivable balances, and lower accounts payable balances due to equipment delivery timing. We ended the first half of the year with ample liquidity, including CAD 1.2 billion in cash and an additional CAD 449 million available under our existing credit facilities. Our net debt to total capitalization ratio was - 13%. Overall, our balance sheet is well-positioned to support operations and navigate evolving economic and business conditions. As one would expect, we'll continue to apply operational and financial discipline as we support customer needs and evaluate future investment opportunities. Toromont targets a return on equity of 18% over the business cycle. ROE for the second quarter was 17% all in, slightly below our target, however, improved from 16.9% at year-end 2025 and comparatively lower than 17.6% reported at the end of June 2025. The year-over-year difference reflects higher shareholders' equity, which more than offset increased comparative earnings. We would also note that ROE was dampened by approximately 1.5% by the expenses as disclosed associated with the accelerated purchase of certain shares of AVL in the quarter. This increased our ownership to 80%, a decision that was made based on long-term expected returns. Return on capital employed was 24.8%, slightly higher year-over-year, reflecting our increased net earnings. Finally, as announced yesterday, the Board of Directors approved a regular quarterly dividend of CAD 0.56 per share, payable on October 2nd, 2026. John, I'll turn it back over to you for more detailed commentary on the results. Great. Thanks, Mike. Let's turn to slide five for a few additional comments on the consolidated results. On a consolidated basis, revenue increased 16% in the second quarter and increased 15% for the first half of the year. This growth was driven predominantly by the Equipment Group with higher power system revenue, including our enclosure business, along with higher mining equipment, rental, and product support revenue. CIMCO has had a somewhat slower start to the year with lower package revenue on construction timing offset by higher product support activity. SG&A expenses increased for both the quarter and year-to-date period compared to the similar period last year, with key changes related to the inclusion and growth of AVL, the IFRS mark-to-market adjustments, and other increases reflecting investments in the growth of the business. Compensation costs, travel, and training are examples. Operating income increased 41% in the quarter and 42% through the first half, reflecting higher revenue and improved gross profit margins, partially offset by the higher expense levels. As a percentage of revenue, operating income was 13.6% on a year-to-date basis compared to 11% last year. AVL's operational capacity and execution continued to expand in the quarter. The revenues were CAD 171 million versus Q2 2025, which was CAD 57 million, and year-to-date at CAD 300 million versus the first half of 2025, which was CAD 79 million. Results in the second quarter of 2026 are net of purchase commitment expenses of CAD 54.3 million versus CAD 1.7 million for Q2 2025, and on a year-to-date basis were CAD 68.2 million compared to 2025 with CAD 2.8 million. As a reminder, this includes expenses related to the valuation of the company's commitment to purchase the remaining outstanding shares of AVL and represents the regular evaluation of the commitment based on actual and expected results. This also includes expenses related to dividends paid to non-controlling interests. Net earnings were largely unchanged in the quarter compared to last year and increased 9%, or CAD 18.4 million for the first six months of the year. As an indicator of our base business, we would note that net earnings excluding the purchase commitment expenses increased 42% in both the quarter and the first half of the year compared to 2025. Basic earnings per share was CAD 1.53 in the quarter, largely unchanged from last year's comparative, and increased to CAD 2.66 year-to-date. Turning to the Equipment Group on slide six, revenue increased 18% in the quarter and 16% for the year, reflecting higher power system sales and higher mining deliveries, along with increased rental and product support revenue. Equipment sales, including both new and used equipment, were up in both the quarter and the first half of the year by 27% and 23% respectively. New equipment sales increased 31% in the quarter and 25% for the year, led by higher mining deliveries and higher power systems markets, which include revenue of the acquired business. While the construction market were at levels comparable to the prior year. Used equipment sales increased 2% in the quarter and 9% year-to-date across most markets. Looking at the market segments for the quarter, total equipment revenue increased 72% in mining, power systems increased 43%, construction was slightly lower, down 1%, and material handling decreased 32%. Rent al revenue was up 11% in both the quarter and year-to-date. While market conditions remain somewhat uncertain, revenue increased compared to the prior year, generally reflecting the larger fleet and improved activity levels in most areas. For the quarter, the change in revenue was as follows: heavy equipment rentals were up 25%, light equipment rentals up 8%, power rentals up 18%, partially offset by a decrease in material handling, which was down 7%. The RPO fleet was CAD 98.8 million versus CAD 101.4 million a year ago, and rental revenue was up 19% for the quarter and down 3% for the year compared to similar periods last year. Product support revenue increased 8% in the quarter and 9% year-to-date, reflecting equipment utilization in our territory, along with higher technician workforce. Activity was generally higher across most markets and regions. Looking at specific markets for the quarter, change in revenue was as follows: construction was down 6%, mining up 18%, power systems down 1%, and material handling up 4%. Gross profit margins increased 270 basis points in the quarter and increased 330 basis points year-to-date compared to last year. Equipment margins increased, reflecting the favorable sales mix within our equipment offerings. Rental margins increased on improved utilization. Product support margins decreased slightly, reflecting the nature of the work and sales mix. Sales mix was unfavorable in both periods, reflecting a lower proportion of product support revenue to total revenue in each period. Selling and administrative expenses increased CAD 20 million or 13% in the quarter and increased CAD 48 million or 17% for the year. Higher expenses reflect the continuing investment in key strategic areas. Compensation costs were higher in both periods, reflecting staffing levels and regular salary increases, higher profit sharing accruals on the higher income, and higher DSU mark-to-market expense on the higher share price. Other expenses such as training, travel, and occupancy costs increased in light of sales levels and planned investment in inflation. As a percentage of revenue, selling and administrative expenses increased to 12.4% versus 12.3% last year. Operating income increased 47% for the quarter and increased 49% for the year, reflecting the higher revenue and improved gross profit margins, offset by the higher expenses. Bookings increased 196% in the quarter, mainly reflecting higher power systems orders, including AVL, which includes a CAD 1 billion order previously announced for delivery substantially in 2027. Mining markets are lumpy or cyclical due to the nature of the business and improved 11% on good orders. Construction orders were relatively unchanged compared to Q2 2025, reflecting normal demand dynamics. Material handling orders were down 51% versus a strong comparable in the prior year. Backlog of CAD 2.5 billion at June 2026, very solid, reflecting good new order intake throughout the quarter. Approximately 60% of the backlog is expected to be delivered over the next 12 months, but of course is subject to timing differences depending upon vendor supply, customer activity, and delivery schedules. Let's turn now to CIMCO on slide seven. Revenue was down 1% in the quarter. However, it was up 1% for the first half of the year, largely reflecting project timing. Package revenue decreased 5% in the quarter, with lower revenue in the recreational market, partially offset by an increase in the industrial market. Recreational activity decreased 50%, with lower revenue in both Canada and the U.S. Industrial market revenue increased 32%, with higher activity in both Canada and the U.S. For the first half of the year, package revenue was largely unchanged and reflected similar trends for the quarter. Product support revenue increased 6% in the quarter and 1% on a year-to-date basis, with higher market activity in Canada offset by lower revenue in the U.S. in both periods. Activity levels continued to improve on good customer demand and the increased technician base. Gross profit margins decreased 90 basis points in the quarter and decreased 120 basis points in the year versus similar periods last year. Package margins were lower on the nature and timing of projects in process. Product support margins were largely at levels similar to last year. Improving execution and efficiency continued to be a focus and a favorable sales mix with a higher proportion of product support revenue to total revenue increased margins. Selling and administrative expenses increased CAD 2 million or 10% in the quarter, and CAD 4 million or 12% for the first six months of the year. Compensation costs increased, reflecting staffing levels, annual salary increases in the mark-to-market on DSUs, largely offset by lower profit sharing accruals on the lower earnings. Other expenditures, such as travel and training expenses, increased to support activity and staffing levels. As a percentage of revenue, selling and administrative expenses improved to 16.9% in the second quarter versus 15.2% in Q2 2025. Operating income was down CAD 3 million or 20% for the quarter, and CAD 7 million or 26% for the year, largely reflecting the lower revenue, gross margins, and a higher expense level supporting growth. Operating income as a percentage of revenue decreased 290 basis points to 8.2% on a year-to-date basis compared to the similar period last year. Bookings were largely unchanged in the quarter and were 11% higher, up CAD 16 million for the year. For the year, industrial orders were up 12% and recreational orders were also up 11%. Generally, activity is continuing with good strategic capital investments. Backlog of CAD 375 million was up 7% versus last year, with higher backlog in the recreational market up 14%, while the industrial market backlog remained relatively unchanged. Approximately 75% of the backlog is expected to be realized over the next 12 months. However, again, this is subject to construction schedules. With that, we can move to slide eight, turn it back to Mike to highlight some key takeaways as we look forward to rounding out the year. Mike? Thanks again, John. As we look ahead to the second half of 2026, our focus remains squarely on executing our strategic priorities. These begin with an unwavering commitment to safe, reliable, and efficient operations, delivering consistently high levels of customer service, and maintaining disciplined financial and operational rigor to support sustainable long-term growth. Against this backdrop, we continue to monitor key external factors that could impact the business. Global trade negotiations are evolving, in particular, developments between the U.S. and Canada remain dynamic, requiring proactive mitigation plans, which we continue to refine as the situation evolves. Foreign exchange volatility, particularly fluctuations in the Canadian dollar, is being actively managed through our hedging program, helping to mitigate earnings impacts while recognizing that broader economic conditions may still create headwinds. In addition, we are closely monitoring the overall macroeconomic trends. Our backlog of CAD 2.9 billion continues to grow nicely and t he equipment supply chain is well-positioned to support customer requirements. Investment in our technician workforce remains a key strategic priority. By strengthening this critical capability, we are enhancing our aftermarket services, improving responsiveness, and delivering greater long-term value to our customers across our product and service offerings. From both an operational and financial standpoint, we benefit from a focused operating model, experienced leadership team, a disciplined culture, and strong liquidity. This foundation enables us to manage near-term uncertainty effectively while continuing to advance our strategic growth priorities. Over the long term, our approach to creating shareholder value remains grounded in disciplined cost management, thoughtful strategic investment, and consistent operational execution. We thank our team for their continued dedication and our stakeholders for their trust and support. That concludes our prepared remarks. We'd now be pleased to take your questions. Angelina, over to you, please, to set up the first question. Thank you. Ladies and gentlemen, we will now conduct a question- and- answer session. If you have a question, please press the star key followed by one on your touchtone phone. You will hear a prompt that your hand has been raised and acknowledged. Your questions will be polled in the order they are received. If you would like to decline from the polling process, please press the pound key. Please ensure you lift the handset if you are using a speakerphone before pressing any keys. One moment, please, for your first question. Your first question comes from Yuri Lynk with Canaccord Genuity. Please go ahead. Good morning, guys. Morning, Yuri. Morning, Yuri. I'm wondering if you can provide a bit more color on the CAD 1 billion of AVL orders, in terms of, are those orders comprised of numerous customers and numerous projects, or is it more concentrated? How did it come together to book such a large number? Thanks for the question, Yuri. I think maybe I'll give you a little color and John can chip in as well. It's certainly a significant order. I would just say we didn't disclose customer-related detail, but I would say it's multiple locations across, largely in the U.S. Eastern Seaboard, would be the positioning there. I think part of the positioning there is as we've ramped up in Charlotte and continue to track really nicely the plan and hitting our quality and delivery timescales, it's resulted in the opportunity for us between both our facilities, the Hamilton facility and the Charlotte facility, to be able to secure that type of commitment from a customer perspective. Again, what I'd emphasize is as we booked and secured that order, it is largely to be executed and delivered in 2027 with both facilities. The only thing I'd add, Mike, is we continue to support the CAT network with our delivery. Most of it's in the U.S. supporting CAT to the CAT network. Yeah. Okay. You can't share if it's one customer or more? It's multiple purchase orders within a larger purchase order. Oh, okay. How about the land purchase that I think you said was in the quarter? Is that lumped in with CapEx and c an you break that number out for us? Yeah. The land purchase in the quarter, we're expanding our AVL operation. We purchased land north of Hamilton. It's approximately CAD 20 million in terms of the land purchase, which is in the CapEx number. It is land, and so we'll need to do a build-out, Yuri, over the next while. Don't expect any production coming out of that facility until sometime mid-2027. Rough numbers for the investment that's still to come? We're working on the build-out right now in terms of how much it's going to cost, but maybe think about all in CAD 75 million, roughly. CAD 75 million, and that includes the CAD 20 million for the land? Correct. Yeah. Okay. Last one on this. Would the revenue capacity of that be similar to Hamilton? Yeah. As I said, we bought the land. We've got to build a facility there. That's going to take us into 2027. Then I would expect when we're fully ramped, that we'll add roughly 40%-50% of more capacity to the overall business but t hat will be coming out of 2027. Okay. That's helpful. I better turn it over there. Thanks. Thanks, Yuri. Thank you. The next question comes from Krista Friesen with CIBC. Please go ahead. Hi. Thanks for taking my question. Good morning, Krista. Maybe just a clarification on that last one, the 40%-50% capacity, t hat's relative to the capacity in Canada, or that's also including what's in Charlotte? It was meant to be both, Krista. It was meant to say it would add 40%-50% capacity to the overall business. Okay, perfect. Thank you. Just keep in mind the timing that I mentioned there. Yeah, that makes sense. Maybe just shifting to the more traditional Equipment Group. Can you give us a bit of an update on what the construction outlook is looking like for the rest of the year, and just if you're starting to see more of these nation-building projects start to flow through, and when you expect to see an impact from that? Yeah, it's a great question. Thanks for that, Krista. I would say a couple of things. We are seeing a little better activity, and I think you see it in construction. You see it in our rental business, too, with better utilization on the larger fleet, and that's both heavy and light. One of the areas that I would caution is the residential-related business still seems to be stalled for the most part. Like when you think of infrastructure going into high density or residential, there's limited activity there but w e are seeing reasonable levels of activity around road construction, repaving, and construction markets and y ou mentioned the larger projects. They're very early stage and so I think some of the major projects announced federally require road access and a number of other things to start development, especially when you think of resource access in other areas. There is some engineering, there's some initial work being done there. Our view would be that's going to continue through into 2028, where we are hopeful that we're going to see a stronger tailwind going into the new year. Perfect. Thank you. Just the last one here on the CIMCO business. Sounds like there were just some timing issues in the quarter. How are you thinking about the remainder of the year and just the timing of orders coming through? Thank you. Yeah. Sort of refer you to the backlog, too, Krista. Our backlog is well-positioned, and we mentioned a few comments about it. We often talk about CIMCO as it's a bit of a lumpy business, and so we do have some larger projects, for example, that take a little bit more time to recognize. For the balance of the year, I would say we're feeling comfortable given the backlog and the fulfillment of that backlog that we noticed in disclosure and s o it's been a bit slower this first half, just given the timing of some of those projects. Product support has been maybe one of the positive signals there. There's a little bit stronger results there. I think pretty consistent with what we saw last year. Okay, perfect. Thank you. I'll jump back in the queue. Thank you. Thank you. The next question comes from Cherilyn Radbourne with TD Cowen. Please go ahead. Good morning. Good morning. It's a pleasure. I don't want to turn this into the AVL call, so I'm going to restrict my AVL question to one. Just curious, as you commit more capital to this business t o what extent are you starting to build visibility for AVL beyond 2027, and what contractual protections do you have in these POs? It's a good question, Cherilyn. I guess what we are seeing is, we're seeing good demand by our customers. Having the PO that we talked about is a pretty long duration going out to the end of 2027. We're anticipating a reasonable level of demand over the next several years. We're careful in the sense that we need to earn that business and secure POs in replacement of what we fulfill here over the next 18 months. The protection's in there, I would say, again, there's a variety of customers, hyperscalers, co-locators, and regional players. As John mentioned, we're working closely with Caterpillar network, and so I would say, we try to be pretty careful with some of those terms and those agreements. Our focus is really on quality and execution on our product line as well because t hese are really what we've seen so far is standby or backup power generation, which tends to be lower hour, but we need to make sure that we're consistently executing, in terms of quality and the delivery of that product line. I'd say that the exposure, we have normal warranty periods and so forth, which the customer has accepted. We also have the capability to help service if needed. The other thing I'd just remind you, Cherilyn, is we're being very thoughtful about our expansion plans in terms of buying property in great locations like the new one we've just acquired north of Hamilton and in Charlotte. At some point in the future, if there is a plateau, then we have great assets at our disposal there. Okay, great. You saw some healthy growth in product support this quarter, which was nice to see. Construction looked good, and mining stepped up notably year-over-year, c an you give us some more color on what you're seeing there, including on rebuild activity? Yeah. Thanks for pointing that out. We're quite happy with the growth that we saw in product support. Even in the Equipment Group, we're up 8%-9% on a quarter year-to-date basis. A couple things that we've been talking about the last couple years, part of it obviously is related to activity levels and our customers saying construction's starting to require more support with a little bit better activity. Mining, we've talked about quite a bit in the past, and we've put some fleets into service over the last two, three, four years. As those fleets build the hour requirement, we start to see a little stronger product support requirement there and s o we're starting to see a little bit of that. To your point on rebuilds, it is a focus area for us. I think given some of the economic uncertainty and some of the different dynamics in the marketplace, we've been working hard with our customers to give them that as an option and along with used and RPO and so forth. We've seen some pretty decent demand around the rebuild side of things. It is lumpy in the mining space, but maybe a little bit more consistent when you think of the construction network, right? Yeah. The other thing I'd mention on the rebuild side of things, Mike, is we have broken ground on the Québec City facility, that's going really well in terms of the build out there so w e're excited about that development. Thank you. Back to Mike too. Great. Thanks, Cherilyn. Thank you. The next question comes from Devin Dodge with BMO Capital Markets. Please go ahead. Yeah, thanks. Good morning, guys. Morning. How you doing? Just wondering, coming back to AVL, just wondering if you could talk about the decision to locate the new facility in Hamilton versus somewhere in the U.S., just given that most of the product, I think, is delivered south of the border. Yeah. Thanks, Devin. Maybe to start on that. I would say that we continue to evaluate both markets very carefully, right? I think it comes down to local jurisdiction, but also when you think of labor market supply, availability of real estate, the supply chain and the logistics in around the facility and so t hat's a big consideration. You might recall when we've described the Hamilton facility, it's a number of buildings where Charlotte is a fit for purpose building. It's one large facility, and our new facility, which is just north of Hamilton into Burlington area, will be similar to Charlotte. We were looking at it from that perspective as well, where we end up with a facility that's fit for purpose, constructed for very efficient operational flow. I think the other part is, although we're seeing the strongest demand in the U.S. and expect that to persist over time, we're expecting to see demand in Canada also, albeit a more reasonable level compared to the U.S. It's good to have access, and because it's in Hamilton, we have the ability with port access and other things too, which is an added benefit, right? Yeah. Makes sense. Thanks for that. Just another quick one on AVL. Are you continuing to take orders for delivery in 2027? Yes, we are. Yep. Yeah. Yeah. Maybe just switching gears here, Toromont's, I think, in the final months of its three-year business plan. What do you believe were the biggest accomplishments in Connect 26? As you look forward, where do you expect the focal areas to be for the next business plan? I would say, Devin, it's a great question. If you recall, we came into the current three-year plan just coming out of COVID, and there was a strong desire to connect. The connect theme was around connecting with customers, reconnecting with customers, connecting with employees because of the dynamic from the pandemic, and connecting digitally, and so forth. I think our goal really broadly was to position the business for growth as we emerge out of that uncertainty. I think, again, the trade dynamics and all the other things come into play we didn't anticipate. I think from that perspective, the team has worked really well to put us in a good position across the businesses to make sure that we're ready as things start to improve from an activity level basis. We get a little more stability south of the border. I think the other piece is the discipline in the business. Our teams have done a nice job from a cost management perspective. We continue to hire technicians, the digital side is a huge investment area as well. Caterpillar is putting a lot of resources into that space. We've built our team, strengthened our team in those areas, I'd see that as something that's going to continue to gain a lot of traction and be one of the common themes going forward in our plans because the analytics, the technology within the equipment, and how we use all that capability to differentiate our service offering and help our customers lower their cost of operation. Long answer to your question, I would say a lot of it is around positioning the business for sustained long-term growth. Right? That was the goal. Okay, thanks for that. I'll turn it over. Thanks. Thank you for that. Thank you. The next question comes from Steve Hansen with Raymond James. Please go ahead. Oh, good afternoon, guys. Thanks for the time. The first one is on AVL and just the pace of ramp in Charlotte or maybe across the network today. The ramp was quite quick in the period. When do you expect to start to tap into those capacity limits you currently have at Charlotte or at those sites, I guess, collectively today? Yeah, Steve, we're really pleased with the ramp at Charlotte and we would expect Charlotte to be at full capacity coming out of Q3. They've done a really good job ramping up. Safety has been paramount, and that's been great, and quality has been very good as well. The team down there has just done an amazing job. Yeah, it ramped very well in the second quarter, as you point out. We'll continue to ramp in the third quarter and it'll be close to near capacity in the fourth quarter there. That's helpful. Just on the margin front, some disclosure seems to have gone away on AVL in the period. Can you maybe just describe how margins are progressing relative to prior periods or give us some conceptual context around how EBIT contribution might have looked in the period? Just trying to get a sense of what the contribution looks like relative to- Yeah. ...the period. Yeah, the margin story has stayed basically the same, Steve. It's a very solid margin profile and you can kind of work into that with the revenue growth and the bottom line impact on AVL after you back out the purchase expenses. Okay. Helpful. Just one last one quickly. It does seem like the equipment market, despite a few soft spots in Eastern Canada, is slowly tightening or consistently tightening. Inventories appear to be coming down across the channel. How do you feel about the margin profile in the core equipment business relative to even last year? Are you starting to see points of improvement out there? Yeah, Steve, I would just say that it's a well-supplied market, right? We continue to see moderate improvements in activity. I would say, broadly speaking, the equipment space is well-supplied and so that naturally brings in some strength and pressure on margins to a certain degree. I think the team is working, as you know, we talk about the value proposition and we talk about it's not just the equipment margin side of things, it's also the product support and availability and helping our customers with that entire value prop and lower cost of ownership. I think as we look forward, the one area I'd say that is still very constrained is obviously the large engine market, partly driven off the data center demand, and mining continues to be fairly strong and so that's a constrained longer lead time market. When you look at the GCI and BCP product lines and CCE, it's well supplied and will continue to be so, we believe. Okay, thanks. Just the last one. Do you have any intention to split out AVL at some point into its own segment? We don't, Steve. Okay, appreciate the time. Thanks, Steve. Thank you. The next question comes from Jonathan Goldman with Scotiabank. Please go ahead. Good morning, guys, thanks for taking my questions. Morning, Jonathan. Morning, guys. Maybe just a housekeeping one for you, John. Construction product support, did you say up 6% or down 6%? The product support margins, did you say similar year-on-year? Yeah, it was up 6% actually, Jonathan. On the product support side specific to construction in the quarter was up 6%. Yeah. Mining was a little higher. Thanks, Mike. Yep. Okay, perfect. I guess my next question kind of more broadly on data centers. Do you guys anticipate an opportunity to participate in prime or backup power via recips? Yeah, that's a great question. I think what you're tapping into there is the constraints in the power grid and the lack of energy as they continue to build out data centers. I think we would look at, I would say, there is some limited opportunity for recips. I think the ideal bridging strategy, if you will, to the grid would be with larger solar turbines and things like that. There is some interest in prime power using primarily gas generators, right? That's something we'll look at. I would say that to date, what we've been focused on is the standby and backup power piece, and it's largely diesel. Fair enough. Mike, you alluded to technician headcount, but could you give us an update on what the growth has been so far this year and how you're thinking about maybe 2027 as well? It's a focus for us, Jonathan. We've been strengthening our recruiting efforts, I would say, and part of that goes to where we see the business evolving and wanting to strengthen the product support side of our business. I would say, it's always a constrained market. It's always a challenge to hire, but we've done a pretty nice job, and we're continuing to see growth in actual headcount. I would say it's also across the business. We've talked a little bit about CIMCO, but the dealership and the rental side, we continue to look and continue to attract new talent and hire to make sure that we're offsetting natural retirements, but also continuing to grow that capability over time. We don't see that declining. Thanks for the color. I'll get back in queue. Thanks, John. Thank you. Once again, if you would like to ask a question, please press one. The next question comes from Sabahat Khan with RBC Capital Markets. Please go ahead. Great. Thanks. Good morning. I guess just following up on the earlier discussion around margins, I think you said margins are still solid in that business. I guess as the revenue is ramping up, it feels like there's a lot coming through in 2027. Would it be fair to assume margins may be in line with what you've generated over the course of this year and last, or is there maybe a big directional tilt up or down? Just want to make sure we're in the right zip code. Thanks. I don't see a big directional move up or down, Sabahat. It's early days still, but that's our best view at the moment. Yeah. I think the one thing to keep in mind, I guess, as we think about it, is just mix too, right? Like we saw in the quarter, a little better rental product support growth, which is nice to see as AVL continues to add to production. They're doing very well, but as John characterized the new facility, and as we see that through 2027, 2028, just keep in mind as you model how you blend that margin through. The Equipment segment, I think, will be well- supplied, as we talked about earlier, so. Yeah. Sorry, maybe just digging in, or maybe I was thinking maybe more specifically on the AVL, I guess, just because it's becoming a bigger part of the revenue mix. Will that maybe shift margins in one direction or the other, just given the ramp there? Thanks. No, like I said, I don't anticipate in the existing production facilities to see a major variation with AVL. What you will see as we get the new facility up and running, obviously, like we saw with Charlotte, we'll see some costs ahead of revenues. You may see a bit of compression on that front. Overall, I wouldn't expect a major move up or down, Sabahat. I guess, just maybe implied in that, just with the margins, I guess, being relatively consistent going forward, are you finding good pricing power in that business given the demand environment in the AVL business? In the AVL side, I would say, again, it's one that we want to manage very carefully. Our focus is on really driving cost efficiencies and so forth, because as you can imagine, as this segment evolves, there's been a period of constrained supply in engines and enclosure production and so forth. I think there's a lot of capital going into that marketplace, and I think naturally you're going to start to see other players in the market. You're going to see potentially some pressure on some pricing, our goal is to be the top supplier, most consistent, high quality, and also focused on auto-like manufacturing capabilities to drive efficiency in our production side of the business to help mitigate any pressures we see on the top end or in margin side. Thanks, sir. Great. And then maybe just one last quick one, I guess, just on the concept of constrained supply in this environment. How are you finding your supply chain for that AVL business? I think maybe not as complicated as the engine supply chain, but given the big backlog, have you been able to lock in supply to make sure you can deliver against that? Thanks. Yeah, I would say we're reasonably comfortable with the supply elements, right? Like when you think about it, certainly a big factor is engine supply, like you mentioned, and continuing to see how availability of engines dictate production and so forth. We've been working pretty hard at making sure that our suppliers, whether it's fuel tanks or panels or what have you, within our power and energy group, we've also brought in a capability to help put together switching and cam boards and things like that, which we had in the power and energy group. We've enhanced that capability, which also helps us to mitigate some of that supply chain requirement. I would say, generally speaking, we're comfortable with where it's headed, and given what we see in the backlog and so forth, comfortable with that positioning. Great. Thanks very much for the color. Appreciate it. Great. Thanks, Sabahat. Thanks. Thank you. The next question comes from Cherilyn Radbourne with TD Cowen. Please go ahead. Hi. Just a couple of last follow-ups from me. Setting aside AVL for a second, could you talk about the trends that you're seeing in the broader power systems business? Yeah, good question, Cherilyn. I think, we are seeing, as you know, it's a little bit lumpy, like when you think of the broader market, there's some discussion about the marine side, for example. I think as some of those opportunities on the defense side open up, that could lead to some projects down the road, t hose are certainly longer term. I think when you look at the power side, we continue to see some opportunities around bridging strategies, right? Bridge to grid and areas like that where there's constraints, partly related to data center, but other industrials looking to peak shave and to do some things like that. So it's a pretty diversified group, as you know. I'd say we're cautiously optimistic with what we see there, in terms of energy requirements for the longer term and some other opportunities around distributed power and so forth. Great. Then it seemed to me that there was a shift in package revenue at CIMCO towards the industrial side versus recreational in the quarter at least, and I didn't know if that was a trend or just sort of normal lumpiness in the business. Yeah, it's just normal lumpiness, Cherilyn. It ebbs and flows, as you know, quarter- by- quarter. As Mike said, we have some larger projects in there, and depending upon which segment it lands in, you'll see that lumpiness. Got it. Thank you. That's all for me. Thanks. Yeah. Thank you, Cherilyn. Thank you. The next question comes from Steve Hansen with Raymond James. Please go ahead. Hey, guys. Thanks for the follow-up. Just a quick one. I'm just curious in thinking about rules of thumb, is there a way to think about how many megawatts of power that billion-dollar order would cover? Just trying to, again, frame the announcements we're seeing out there relative to your order flow and get a sense for what we should be thinking about what it covers next. Yeah, that's a difficult one, Steve, in the sense that each of the locations have very different power requirements, right? Generally what we do say is, if you think of a large block like the 3516s, they can generate about 2.75 MW per unit, right? Some of the larger facilities can use upwards of 100 MW of power. It's very difficult. I would say I wouldn't translate that into that type of metric just because of the variation in the facilities and the power requirements. Okay. Appreciate that, Mike. Thank you. At this point, there are no further questions. I will now transfer the conference over to Mr. John Doolittle. Please go ahead, sir. Okay, great. Thank you, Angeline. Thanks everyone for joining today. Thanks for the great questions. Concludes our call and please be safe. Have a great day. Thank you. Thank you. Ladies and gentlemen, this concludes call for today. Thank you for participating. You may now disconnect.