RE:RE:Executive action They can't. They "invested" in winning new projects and priced them at a huge discount. The gross margins are at 27%, the lowest of any ITS player in the industry. Kapsch has 60% gross margins.
They essentially invested $10M in the quarter to "win" these projects. So did they have the best technical score? Or did they just price it so aggressively to get growth?
Was that Align Capital's strategy all along? Prep this thing for a sale, show growth and get a pitch deck ready and find a sucker to pay a 140% premium in one year.
An ITS business can't sustain at 27% gross margins. Expect the win rate to fall dramatically if they price it to a level that economics justify and they aren't using debt financing and shareholder money to enable growth at the expense of making a profit.