ITG (NASDAQ:ITG) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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Summary
ITG completed its IPO on July 2nd, raising $323 million used to repay debt and strengthen its capital structure.
Second quarter revenue increased by 38% year-over-year, driven by acquisitions and core growth in Engineering and Maintenance (E&M), with an adjusted EBITDA of $52.2 million.
The company's next-12-month backlog increased to $1.5 billion, with a total backlog beyond 12 months reaching approximately $3.3 billion.
ITG introduced 2026 guidance, expecting 35% full-year revenue growth and 36% adjusted EBITDA growth.
The company completed its first post-IPO acquisition of Full Circle Fiber, enhancing its digital broadband services.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the ITG second quarter conference call. At this time all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Chris McCrae, Chief Financial Officer. Please go ahead.
Chris McCrae, Chief Financial Officer
Good morning and thank you for joining us for today's second quarter 2026 financial results webcast. Joining us today are myself, Chris McCrae, Chief Financial Officer, and Andy Parrott, Chief Executive Officer. Yesterday, after the market closed, we issued a quarterly results press release which can be found in the Investor Relations section of our website at itgcom.com. We also posted a separate shareholder letter with more detailed operational and financial commentary to accompany our earnings release.
The commentary is intended to provide much of the detail typically included in management's prepared remarks. Accordingly, we will provide an overview of ITG, discuss the principal drivers of our second quarter performance and initial outlook, and then turn the call over to Q&A. Please be advised that information shared on this webcast is current as of today's date and may no longer be accurate as of any replay of this event at a later date. This webcast will include forward-looking statements qualified under the safe harbor rules established by the Private Securities Litigation Reform Act of 1995, including statements reflecting expectations, intentions, assumptions or beliefs about future events or financial performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict or beyond ITG's control and actual results may differ materially from those expressed or implied. On this webcast, we will also discuss historical and forecasted non-GAAP financial measures. Reconciliations of these historical financial measures to the most directly comparable GAAP financial measures are included in our earnings release and accompanying shareholder letter.
Please refer to these statements for additional information regarding our forward-looking statements and non-GAAP financial measures. With that, I'll turn the call over to Andy.
Andy Parrott, Chief Executive Officer
Thank you, Chris, and good morning. We're pleased to be with you today for ITG's first earnings call as a public company. Our second quarter performance reinforced our confidence in the strategy we outlined during the IPO process and demonstrated continued progress against our long-term growth objectives. As you know, on July 2nd we concluded our IPO which raised 323 million in net proceeds we used to repay debt and strengthen our capital structure.
Completing the IPO was an important milestone for ITG and I want to thank everybody involved for their dedication and commitment. 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. We remain focused on disciplined organic growth, strategic acquisitions, operational execution and long-term value creation, and we welcome our new public market shareholders.
I'd like to briefly introduce ITG and explain what differentiates our platform before discussing the quarter. We believe ITG is well positioned to benefit from our customers' interest to outsource more of their infrastructure requirements because we can provide a broad range of services across geographies through a scaled operating platform. Our ability to support customers across the infrastructure lifecycle is a differentiator that can create multiple entry points for future work.
Our scaled platform leverages technology through Fuse 360, our proprietary ERP and operating system. Fuse 360 helps us manage the entire business, enabling consistent execution and visibility. Our operating model is predominantly MSA contract-based, supporting durable customer relationships and providing meaningful visibility to our future activity. Individual work orders and timing remain subject to customer authorization and project schedules, so backlog should not be viewed as guaranteed revenue, but our recurring service activity and backlog provide a strong foundation for growth and revenue visibility.
We operate two complementary service lines, Engineering and Maintenance, or E&M, and Infrastructure Deployment. In E&M, we are the national leader in offering fulfillment, maintenance, engineering, design consulting and adjacent market services to our customers, such as wireless. This business leans towards high-volume, smaller recurring service orders. The business can be operationally complex, requiring effective scheduling, work order coordination, geographic density and consistent execution.
Our scale, local presence and Fuse 360 platform enable us to manage that complexity well, which we believe differentiates ITG from smaller regional providers. In Infrastructure Deployment, we help customers expand and upgrade their broadband networks through fiber deployment and network expansion services. This business benefits from continued investment in fiber-to-the-home network expansion and increased bandwidth requirements. Data centers and hyperscale computing offer significant growth opportunities for ITG.
Cloud computing and AI are increasing the need for high-capacity fiber connectivity between data centers as well as across broader support networks. ITG helps build the fiber backbone and related infrastructure connecting data center campuses, network routes and end markets. During the quarter we saw a significant increase in activity and revenue with data center customers. We believe our fiber deployment capabilities, geographic reach and ability to execute complex projects position us well to support data center customers.
Our customer wins during the quarter also illustrate the breadth of the platform. We received new or extended MSA awards from eight customers, including a significant award from Ziply Fiber, a leading fiber broadband provider serving markets across the Pacific Northwest, and Intrepid Fiber Networks, a developer and operator of next-generation fiber broadband infrastructure. The awards support large-scale network expansion initiatives by these customers in their respective service areas.
They also reflect both new opportunities and existing relationship expansion and demonstrate how ITG supports customers across multiple phases of network deployment. Digital connectivity is increasingly essential to the public infrastructure of daily life. Our customers are investing to improve network reliability, expand broadband access and support growing bandwidth requirements. We believe ITG is very well positioned to support those investments.
Before Chris comments on the second quarter, I'd like to note that we completed our first acquisition post-IPO this week. We have purchased certain assets of a company very much in our wheelhouse of digital broadband services called Full Circle Fiber. We are pleased to have completed this tuck-in transaction in a very short time frame and expect the business to contribute positively to ITG out of the gate, including a rapid integration of their people, assets and contracts into our system.
Chris will now comment on the quarter and outlook.
Chris McCrae, Chief Financial Officer
Good morning everyone, and thanks for listening. Regarding second quarter results and key drivers, second quarter revenue increased 38% year over year, ahead of our plan, driven primarily by contribution from acquisitions as well as double-digit core growth in E&M, offset partly by slower core infrastructure deployment activity. E&M benefited from higher core customer volumes, new customer expansion and growth in new service lines. Infrastructure Deployment reflected some impact from a slower spring ramp-up after a cold winter and timing around the ramp of new awards and projects, all of which was anticipated in our plan.
Adjusted EBITDA was 52.2 million, ahead of our plan for the period and up 21% from the prior-year period. Adjusted EBITDA margin was 12.9% compared with 14.7% a year earlier and 10.9% in the first quarter. The year-over-year margin decline reflected new business start-up costs and revenue mix changes related to acquisitions completed in the second half of 2025. The sequential lift was driven principally by increased volumes, including the normal seasonal pickup.
Free cash flow, under the adjusted EBITDA minus CapEx definition, was 44.8 million compared with 27.2 million in the prior-year period. This year-over-year change primarily reflected earnings growth. The timing of growth and ramping volumes coupled with the pre-IPO capitalization impact translated to a use of cash from operating activities in second quarter. Looking ahead, we continue to expect positive cash flow and also anticipate stronger working capital outcomes in the second half of the year, including seasonal increases in cash collection.
Next-12-month backlog was 1.5 billion at quarter end, increasing 6% sequentially and 21% year over year. E&M next-12-month backlog increased 11% sequentially and 24% year over year, while Infrastructure Deployment backlog increased 5% sequentially and 42% year over year. The sequential increases reflected new and extended MSA awards from eight separate customers, including the Ziply and Intrepid awards discussed earlier. Just to frame our overall visibility, which we believe extends well beyond the 12-month period, total backlog beyond the next 12 months was approximately 3.3 billion, up some 33% from the prior-year period level of 2.4 billion.
We've introduced guidance for the third quarter and full year 2026, the details of which are in our releases, but clearly are reflective of strong growth expectations, including 35% full-year revenue growth and 36% adjusted EBITDA growth. Our outlook reflects customer activity we anticipate as of today, the expected timing of project ramps and normal seasonality in the business. It also incorporates the expected ramp in data center activity and continued new work awarded in Infrastructure Deployment, which is expected to grow faster than E&M in the second half.
As always, the pace of customer authorizations, permit issuance, project timing, weather, labor availability and business mix can be factors within a quarter that drive variable outcomes. Back to Andy to conclude,
Andy Parrott, Chief Executive Officer
As we begin life as a public company, our priorities remain consistent: execute for our customers, convert backlog into profitable revenue, expand relationships across our service portfolio, maintain disciplined capital allocation and continue investing in the people and technology that support our growth. We are excited about the opportunities ahead of us and we look forward to reporting on our progress. With that, Chris and I are happy to answer your questions.
OPERATOR
Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Andy Kaplowitz with Citigroup. Your line is now open.
Andy Kaplowitz, Analyst at Citigroup
Good morning everyone. Congrats on your first quarter as a public company.
Andy Parrott, Chief Executive Officer
Thanks, Andy.
Andy Kaplowitz, Analyst at Citigroup
Andy or Chris, during the IPO process I think you talked about the potential to sustain teens organic growth, and obviously you had strong new wireline awards. You mentioned Ziply, Intrepid, but as you know there's been some market noise recently, particularly from a large competitor lowering its communications sales guidance. So can you talk about your visibility toward that teens growth algorithm? Did the wireline market outlook change along the course?
Maybe you just took share in Q2. I think more color would be helpful.
Chris McCrae, Chief Financial Officer
Yeah, Andy, you know, what I would point out there is that we did see 6% sequential backlog growth in the second quarter to 1.5 billion in total. And that's, by the way, up 21% year over year. So I think the best gauge of our expectation for future results is going to come from the steady and visible backlog that we have in the business and the number of contracts that we're accruing there to provide that runway for growth. I'd probably acknowledge that there are individual areas or pockets in the business that might slow at a given point.
You do have customers that work on a big build-out and then that gets finished and you can see that transpire. That's very normal in the business. But I think with ITG, we're very focused on growth. We're very focused on accumulating new logos, new customers, and we've developed a business model here that is broadening and creating opportunity in various pockets all around the country. And so I guess what I would say right now is that we've been fortunate enough to continue to look at a runway of growth despite the lumpiness that you see with any individual pocket in a period of time.
Andy Kaplowitz, Analyst at Citigroup
It's helpful color, and maybe just on data centers. I know you talked about revenue from existing data centers beginning to ramp in Q2, but maybe could you give us more color on what you're seeing in that market? Did the data center backlog grow from what you told us during the IPO? I think it was around 540 million. Or how are you thinking about either data center revenue or backlog acceleration moving forward? And how's the pipeline there?
Chris McCrae, Chief Financial Officer
Yeah, so we talked about an over $500 million backlog with data center customers exiting last year, and those contracts specifically, by the way, they do go out several years. It's not all immediate backlog. I mean, that trends out over two, three years. But the early phases of that backlog began to really roll out and start to grow earlier into the middle of this year. So, you know, really the back half of the year is expected to be substantively stronger than the first half from data center work.
And I think that will continue as we get into 27 and beyond. I wouldn't say that we got any major data center new awards in the second quarter, but I will point out that we have outstanding bids in multiple contracts related to data center that are out there now and that could be decided in coming months. So there's plenty of work that is out there and that we're bidding on.
Andy Kaplowitz, Analyst at Citigroup
Helpful, guys. Good, Claire.
OPERATOR
Thank you. Our next question comes from the line of Jamie Cook with Truist Securities. Your line is now open.
Jamie Cook, Analyst at Truist Securities
Good morning. Congratulations on a nice quarter. I guess just my first question, nice success with diversifying your customer base with Ziply and Intrepid. So as you think about sort of future bookings into the back half of the year, do you see more opportunities to diversify your customer base? And then I guess just my second question, Chris, as it relates to the guidance you provided, which was helpful, it looks like relative to the IPO, at least the implied fourth quarter is a little stronger, in particular on the margin side and on the EBITDA side.
So if you could help us just understand what the drivers behind that are. Thank you.
Andy Parrott, Chief Executive Officer
Yeah, thanks, Jamie. This is Andy to speak about the kind of the back half and the future logos. Obviously, we're continuing to add incremental logos to our story, and it's been an amazing journey so far, I can tell you that. I've even signed some MSAs this week. And then obviously with our recent tuck-in acquisition of Full Circle Fiber that we did this week, it also allowed us to add some incremental logos where we believe we can land-and-expand strategy and continue to grow those relationships.
I've reached out to a lot of the CEOs of some other companies out there that are excited about this future venture that we have together. And then obviously word on the street, as long as we continue to execute very, very well, we actually have a lot of locals that are actually proactively reaching out to us with excitement to partner with us. So we're very optimistic on our local growth. And then obviously as we do a new logo, we have that continuous land-and-expand strategy where we continue to grow that organic activity within those logos either through geographic areas of expansion or incremental lines of business or service lines that these companies are asking us to partner with.
Chris McCrae, Chief Financial Officer
And Jamie, to your second question around kind of the implied back half, I mean, I think the punchline there is really we kind of maintain our view that we expressed during the IPO. We took the beat, the slight increase versus plan in the second quarter, and flowed that through the year. But I don't really see any meaningfully different outlook in our initial guide here from what we shared with folks during the IPO process. But I mean, it's a strong outlook for this year with 1.5, 1.6 billion top line and a growth rate in the mid-30s.
And that's relatively evenly split between the two service lines. We've got mid-30s growth in EM and even mid-30s-plus on Infrastructure Deployment for the full year. And again, I think those are very much on track to what we've been anticipating. And seasonally, the third quarter is the biggest, so it's a bigger hill to climb in the current quarter. But a lot of what you see in that slightly lower fourth quarter is just pure seasonality. Right. You lose, whatever it is, two to even three weeks of construction days in the fourth quarter around the holidays.
So that's baked in. Yeah, but hopefully as we go, we'll see. But, you know, we'd like to do even better than that. But obviously we have to see how things click along the way here. So. Thanks for your question.
OPERATOR
Thank you. Our next question comes from the line of Steven Fisher with UBS. Your line is now open.
Steven Fisher, Analyst at UBS
Thanks. Good morning, and congrats on the first release here. Can you just give us a little more color on the kind of data center work you expect to pick up in the second half? Is that more long-haul or more local connectivity kind of work? And then just on the revenue trajectory on data centers, I think you'd been assuming pretty significant growth there over the next couple of years, like kind of multiples of what you're doing now. Is that still kind of the framework to think about?
Andy Parrott, Chief Executive Officer
Steven, this is Andy. Yes, yes, and would probably be my answer on the long-haul and more regional interconnect activity. We're seeing kind of trends where some of these massive data centers out in the rural areas are getting a little bit of maybe headwinds, if you will. And 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 interconnect activity in between multiple data centers instead of a mega hyper data center location that's being built out.
So we are well positioned to do both, and we're excited. You know, as we said, we've got really great relationships. We continue to do those relationships, and we're in great conversations with a handful of other hyperscalers to kind of look out. But as you know, these are, you know, two, three years sometimes backlog activities as we're at the table, and we appreciate being at the table, but it's a bit early to kind of go in and count our chickens before all of our eggs are hatched.
And that's an exciting thing for us. But yes, "and" is really the answer because we absolutely prefer doing both long-haul, and we're good at it, and then we're really great at those regional rings that the current customers are asking us to fulfill for them.
Chris McCrae, Chief Financial Officer
And I'll just jump in. I mean, from an actual revenue production standpoint, we're going from small change last year in data center work to something that I would say should be north of $65 million this year in revenue production. And we see that growing by multiples over the next few years.
Steven Fisher, Analyst at UBS
Very helpful. And then maybe just in terms of the acquisition you mentioned a couple times, Full Circle is a tuck-in. Can you maybe just scale that for us? How material is it? And just curious why those assets were for sale in the first place.
Chris McCrae, Chief Financial Officer
So we're really excited about the acquisition. We're really excited about bringing them into the fold. It's a company that we knew previously. They're very much in our markets and have a lot of respect from the customer base that they serve, some of whom are also customers that we serve. They did run into some challenges recently, and we're very excited that we were able to step in and help them resolve those challenges. And we're bringing in a lot of assets, people and fleet from the organization because it literally came together very, very quickly.
We are getting our heads around right now kind of what the business model, business plan is going to be for this year, next year, in terms of how many folks we bring in, how many contracts we do bring in, and so on. So I would just beg patience, and we'll be able to bake it in a bit more detail by the end of this quarter into our model. But we're just getting our heads around the fine point of what we actually expect. But it's a reasonably sized business.
It's hundreds of people coming into the organization, and it's going to produce, I think, a good lever for us, and I think it'll have potentially strong returns for the business. It's very much along the lines of some of the transactions that we've done historically, where you're taking folks in the business that could do much better under our umbrella, and we expect that.
Steven Fisher, Analyst at UBS
Thank you very much.
OPERATOR
Thank you. Our next question comes from the line of Angel Castillo with Morgan Stanley. Your line is now open.
Angel Castillo, Analyst at Morgan Stanley
Good morning. Thanks for taking my question, and just echo everybody's congrats on being public now. Just a quick question on the utility side. I guess can you just remind us on the magnitude of the investments and the utilities locate opportunity? Just how should we think about the costs rolling off? How should we think about the opportunity set going forward from that end market in terms of revenue timing? Just what you're seeing as you continue to drive that investment would be helpful.
Andy Parrott, Chief Executive Officer
Yeah, happy to do that. Obviously we've got multiple different—we have a civil division that is on the utility side, helping with water, gas, et cetera, primarily in Florida. And then on the locate side we're starting to see a lot of positive trends as we had a lot of ramp-up costs that we've been still absorbing in 2026 that we believe will continue to drive and also help with our EBITDA and, more importantly, our operational margin as we get more efficiencies in the locate business as we get more density.
And when I say that, I'm not just painting the ground for one customer, but I'm painting the ground for two or three customers and continue to see that growth. It's just going to continue to drive greater operational margin in that business. But we're getting good—I would say when you're kind of going out, starting something really as an aggressive ramp that we did in 2026 to really get that operational efficiency and, more importantly, just operational excellence in that business.
So we're optimistic that this continue to see that be a great contributor to
Chris McCrae, Chief Financial Officer
Our success story in terms of financial impact. There have been some add-backs in the second quarter associated with startup businesses and restructuring and so on, and there is some of that from this area included in that. We do expect that those add-backs will abate as we get through the back half of the year, so those should not persist much longer. There may be some residual in the third quarter, but probably not much beyond that in our current thinking.
Andy Parrott, Chief Executive Officer
Yeah. So to begin, we absolutely love those relationships, we love those anchor customers that we have, and we absolutely are at the table with them every single day. So as I think about the capital total addressable market, our key customers are looking to simplify their operations as they're having a lot of pressure, obviously, with ARPU and maintaining their margins. So condensing into just a handful of strategic partners has been really the message that we've been hearing from those customers.
And we are getting a larger percentage of the total spend, even if the capital allocation is actually reducing for them. Collectively they have a handful of strategic partners and that's where a lot of our growth is coming from. It's, you know, it's going in and actually partnering with those core customers and going, we really want to simplify the amount of human bandwidth it takes to manage these large projects by having 30 individual partners where we can be more successful if we have four to eight customers, and obviously ITG being on that list.
The other benefit ITG has is really, as you think about capital allocation. But we are absolutely the E&M partners of these large customers that continue to drive just ongoing recurring OPEX activity. They're seeing a higher churn cycle in customers, which is actually driving a bit more OPEX to the business to maintain the same level of relationships that they have. So think about every customer that switches from, you know, now that has more choices than ever, the lifecycle of those customers is actually shrinking and driving more repetitive connect, disconnect, maintenance activity.
And then from a maintenance side, even if you have a little bit less of a capital spend, the operating maintenance of those networks really has no bearing on, unfortunately, how many customers you actually have connected. So it's really based on plant miles, and us being those strategic partners continues to drive that level of the capital spend, which is a large percentage of our total revenue from these two core customers.
OPERATOR
Thank you. Our next question comes from the line of Justin Hawk with Baird. Your line is now open.
Justin Hawk, Analyst at Baird
Great, thanks. Nice to talk to you guys again. I've got two questions, but they're kind of combined so I'm going to put it as one here. But I guess I just wanted to ask on the organic growth, it looked like it accelerated. You know, last quarter it was kind of mid to high teens, which is kind of what you're talking about is the outlook. But it was kind of low single digit here in the second quarter. And I guess if I look at the revenue from Charter specifically, it looks like it was kind of flat year over year.
And I guess the offset is that the inorganic was higher than we were expecting. So I wanted to ask if you could kind of address that point. And then the second part of the question was just to confirm in the guidance it doesn't include any inorganic contribution from future acquisitions that you might do. I just wanted to make sure that that was the case.
Chris McCrae, Chief Financial Officer
Yeah, thanks for the question, Justin, and a couple items there to cover, but absolutely. We do not bake in future M&A into our plan or the plan that we discussed during the IPO. So the second quarter, I would probably first of all just note that in our plan, the second quarter is the slowest growth quarter of the year, and that was anticipated and so, you know, baked into the plan. And obviously we, you know, we beat the top line in the quarter.
But, you know, everything that transpired there was essentially as expected. I would say, you know, maybe on the core growth side it was a little slower than expected just because of the pace of startup of construction coming out of this winter. It feels like a long time ago now. I'm sitting here in the 90s in Florida, but March, April was very, very chilly up north, and a lot of construction was really like three-plus weeks delayed from normal in this winter.
So I hate to point to weather; that's no excuse and of course we don't need an excuse because we made and beat the quarter. But I do point that out nonetheless as a factor in terms of the pace of core growth. So there's also just, it was a little bit of a pinch quarter because what you saw was, you know, we were accumulating a lot of contracts and a lot of work that we knew was going to start around the middle of the year. But you're also sort of finishing a bunch of other work.
So you had stuff coming off in some areas, and then you knew stuff was coming on, but it wasn't really planned to come on until June, July, and August. So we kind of knew in that plan that there was going to be a little bit of a pinch in the middle or second quarter of the year. Our plan for the back half of the year is for double-digit growth before any acquisition activity, and we still feel comfortable with that. And we've seen a pickup of new work in a variety of locations during the course of the summer here.
So again, acknowledging second quarter was the slowest quarter of the year, but we feel good about where we're headed there and on track for our full-year guide here.
Justin Hawk, Analyst at Baird
Thank you.
OPERATOR
Thank you. As a reminder to ask a question at this time, please press star 11 on your touch-tone telephone. Our next question comes from the line of Michael Dudis with Vertical Research Partners. Your line is now open.
Michael Dudis, Analyst at Vertical Research Partners
Morning, Andy and Chris. Thanks. Chris or Andy, maybe you could share a little more insight on your longer-term backlog number that you shared with us. Chris, that was quite impressive. Maybe how does that translate to end markets, customers? I'm assuming a lot of MSA, but, you know, not yet, you know, defined out what it's going to be. Is that trend surprising? Is that a number that was better than you thought? In what areas is the longer-term work being more allocated relative to what your maybe near-term type work is?
Runs through your P&L. Thanks.
Chris McCrae, Chief Financial Officer
Yeah, yeah, thanks for the question. You know, we're not planning on reporting a total backlog figure over time or breaking that out in detail for the simple reason that I think it's misleading in the sense that, you know, 60%, you know, almost two-thirds of the business today is on the E&M side. And, you know, it's not really a traditional backlog-driven business. You know, it's MSA contract-based and you're really talking about rolling over, you know, existing MSA contracts over time.
And so when you look out two to three years, if you try to identify what a backlog looks like on that more than half of our business, it becomes more of a conceptual construct than what you might think of as traditional backlog. So if our business mix changes over time and we're doing a lot more project work instead of this MSA kind of maintenance and fulfillment type work, then maybe our thinking there changes. But I didn't want to create a reporting framework that kind of has people thinking, well, how do you grow a three-year backlog or a four-year backlog every quarter when it's mostly MSA-based?
So hopefully you understand that concept. But nonetheless, very excited about the awards that we gathered in the quarter and led to a growth rate of a total backlog that's well over 3 billion, essentially around 3.3 billion, growing year over year in the mid-30s and growing sequentially. A lot of those awards are focused on infrastructure deployment. Again, eight new contracts of note from different customers. We highlighted a couple of the bigger ones.
Those are just, think about fiber buildout all over the country. We have partnered with a couple of really nice, growing, you know, kind of smaller but growing, you know, service providers, and there's just a lot of work for them to do, and they're looking for, like Andy said, core partners who they can do most of the work with. And, you know, we have more opportunity with those customers as we look forward. So we've by no means booked the total opportunity with them over a multi-year period.
So we do expect over the course of time here to see new awards even from those customers. Hopefully that helps a little bit. We do have lots of opportunity in data center. We have lots of opportunity for the project side and utility, and we look forward to winning more work as we go. I mean, our pipeline is significant, well over a billion dollars of pipeline that we're looking at right now. And so, yeah, I mean, I fully expect that our visibility in that sort of construct of total backlog, it's real in the sense that it gives us a really good sense of where we're going to be working during 2027 and even in 2028, based on contracts that we have in hand. So particularly on that 40% of the business that's infrastructure deployment, we're putting together a book that gives us a lot of planability, a lot of visibility in terms of where and what we're doing.
Michael Dudis, Analyst at Vertical Research Partners
Chris, that was very helpful and the assessment is spot on. Thanks, I appreciate it.
OPERATOR
Thank you. Thank you. Our next question comes from the line of Brian Brophy with Stifel. Your line is now open.
Brian Brophy, Analyst at Stifel
Yeah, thanks. Good morning everybody. Just had a bigger-picture question given this is the first earnings call, but wondering if you could give an overview of your fulfillment business and what kind of work you do there, and how does overbuilding impact the growth opportunity there over time? Thanks.
Andy Parrott, Chief Executive Officer
Yeah, so our fulfillment side of the business, think about us being an extension of our partners. I always tell people ITG is the biggest company nobody's heard of because when we're standing at your door, we're likely wearing a shirt that says Comcast or Charter or any of our other 80, you know, partners that are out there doing fulfillment work with us. And as you think about whether it's maintenance of keeping the network on, you know, somebody takes three calls out at 3 o'clock in the morning, we are on-call support.
If your Wi-Fi is not working and, you know, you can't get the new iPad connected in your house, it's very likely an ITG technician is in there helping you with your simplistic, you know, mesh Wi‑Fi 7 networks. As you think about overbuilders, that's the other thing that's very unique about ITG is, you know, the fungibility of our workforce. So, you know, we absolutely love our core customers and we, you know, we continue to be strategic partners, yet we're also, you know, the strategic partners of Others that are in there overbuilding these networks. We have the workforce and the talent to go execute, you know, these fiber builds of these fiber networks. So you take a look at, you know, our customer base and you're going to see that just about everybody that's also, you know, in the fiber business is a partner with ITG. So think about, you know, a single location, you know, Memphis, Tennessee for example, or Nashville, and go, you know, not only does one of our depots, if you go into our warehouse, we may have that warehouse staged in four different sub-warehouses because we're actually serving four different customers.
We're the support customer for the legacy telco or Ma Bell. We're the Cableco legacy partner, and then we are the new fiber overbuilder supporter, building those networks and providing support. And even in some locations we might be the co-op electrical partner as well that's getting into the fiber space. So we get that density, we get greater opportunities, you know, to be able to have the right resources at the right place at the right time because we have, you know, these dense markets that we're building.
And then as you think about the civil side of the business and the locate side of the business, you know, how great is that to go to one location and put four different legs on the ground versus one, and it continues to drive our abilities to serve our customers with 24/7 on-call support, complete fulfillment activity, and be able to have, you know, the latest and greatest campaign when they come and be partners with us and go, you know, we're scheduling a 20% lift in total connects because we're, you know, we've got this great, great offer that we're really excited about, and do you have the resources to support that activity?
So days out from an order entry to fulfillment completion is same day, next day, which a lot of these customers really need to be competitive in the communities that they're competing against each other. So all boats kind of head into ITG in those scenarios, and we're very strategic with our customers, but it's really a benefit actually to our business plan.
UNKNOWN Analyst
That's great. Appreciate the overview. Obviously it's great to hear about the tuck-in. Curious the latest you're seeing on the M&A pipeline side and curious how much of that pipeline includes end markets outside of communications like T&D and others. Thanks.
Andy Parrott, Chief Executive Officer
Yeah, we've got, you know, we've had quite a few reviews. I've actually, you know, had boots on the ground in multiple different kind of, kind of side civil activity. The civil is just really something we're excited about, but we're going to crawl, walk, run when it comes to some of the things kind of outside of our wheelhouse. I say outside, we may be in that space, but, you know, we're really good at that maybe geographically. So I may want to look at more kind of the organic growth and leveraging the talent that's there.
I can even tell you this week we had, you know, we have people here in our corporate office in Fort Lauderdale exploring, you know, more of the civil side of the business. And we just, we will not make the hustle mistakes. We don't want to get out ahead of our skis. So, you know, if you see the story, you'll see us kind of, you know, organically growing where we have the strength, where we think we can bring in great value and great margins into the business, especially as we can plug it into our ecosystem.
So as we think about that growth, that's exactly, you know, something where we believe will be on our roadmap. But I don't, unfortunately, have anything that I can announce today other than just the smile on my face that you can't see as I think about, you know, the future and where ITG is going to be here in the near future.
UNKNOWN Analyst
Understood. I'll pass it on. Thank you.
OPERATOR
Thank you. And I'm currently showing no further questions at this time. I'll now turn the call back over to management for closing remarks.
Chris McCrae, Chief Financial Officer
Okay, thanks everybody for joining. And as a reminder, we have our commentary file and documents posted to the website. And shortly we should have a marketing deck also up there, which will be a nice education piece for new investors looking at the story and look forward to chatting with you all during the course of the quarter here. Thanks for joining.
OPERATOR
Thank you. This concludes today's conference. Thank you for your participation. You may now disconnect.
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