Quanta Services (PWR) 8 Aug 202020 Q2 Earnings call transcript

Greetings. Welcome to Quanta Services Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. turn Relations. over I’ll Vice Kip time, Investor President, this the to conference Rupp, At Mr. may begin. you Rupp, now

this Great. we Thank morning, a along you, results, Relations services outlook press second section and XXXX announcing summary which welcome, will everyone, XXXX release commentary morning. website in and conference of to can earnings of be our call. the second our with This our we discuss found a quarter issued that quarter the Investor quanta quantaservices.com, at

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from that expressed and difficult actual beyond uncertainties statements predict assumptions may control, are results or involve those risks, certain materially Forward-looking and Quanta’s to implied. differ or

SEC���s release, and which filed language and please these included and with company’s periodic documents the cautionary reports refer website. are Quanta’s the concerning the along information For the some assumptions, of uncertainties or on Commission, Securities with additional in available Exchange today’s press other to risks,

the measures third-party obligation statements update place any by note not also any or present release. in free on will not we measures earnings call. this financial statements diluted adjusted oral written including measures cash non-GAAP our reliance matter backlog, does GAAP to made to and of of their comparable and subject such call, EPS, today’s in included should Reconciliations Please are undertake Quanta these regarding statements, flow. forecasted certain that historical undue forward-looking and most any disclaims directly financial You and EBITDA

to other Lastly, up quantaservices.com. information, and would for if Investor publishes alerts the you releases like through when notified please be sign news section e-mail Relations Quanta of

With IR now investors Mr. on encourage call Quanta President company Duke? listed in and follow Quanta Quanta’s media Services channels also our to that, We website. others our would Austin, and over I and like CEO. the social Duke interested to to the on turn

XXXX everyone, Quarter Thanks, to Kip. welcome Good and Earnings Quanta morning, Second Conference Call. Services

over Chief then our second results it On expectations. the financial and operational and to year will I Financial XXXX call today, we’ll will strategic quarter who a and Derrick provide turn Jensen, Officer, Quanta’s commentary, provide review of full

Following Derrick’s we quarter This your reported second we results. morning, solid comments, questions. welcome

all Industrial Pipeline exceptional better margins, per EBITDA than adjusted Our earnings margins due were to power expected. were and and share execution. electric we broad-based segment

of tough We provides our only people position financial We the the ended resiliency continue which emerge resilient and evidenced during balance quarter ample of sheet model of and with record strong contract. of navigate opportunity operating and our economic by all our and Energy backlog demonstrates believe as signing robust, we flow to the the opportunity but and to LUMA for business was times we believe Cash conditions. extraordinary earnings a see better business liquidity, operational through and to, the of positioned. uncertainty, excellence us not strong

crews. in access pandemic equipment Our to personal protective and for and procedures field have we reliable the health our safety matured, have

effectively adapted recognize incredible communicate I, actively to by the our we want have relationships our with health country, and, and value placing the COVID-XX. again, is to We believe customers we our let to know that the employees environment continue pandemic our and recognize them. We strain unprecedented with economic caused hard our for on collaborative customers that thank work all and and their

adapt power electric well power with our with the needs. excellence. in second and by systems modernize, driven into Our quarter, Utilities to performed to remains our their operational Demand capital cost management future for expand strong deploying solid focus on harden, actively operations electric profitability, and and current services

actively to Public-Private and valuable renewables or are Partnership opportunities, a and are for. and that company, was These intended for with seeing efforts which agreement and are Authority, is transmission substations, of PREPA’s selected and transmission project positioned the Utilities industry economic Quanta agreement providing LUMA we transmission, are Energy, are joint under wind the Quanta of than associated Canadian energy In which work venture supports Puerto solutions consumers. ATCO renewable strategy announced to for maintain Rico more benefits and interconnects Limited Power also electric providing XX,XXX-mile distribution renewable benefit our to solar deliver sophisticated incremental utility the Puerto the social that between LUMA’s generation well Puerto opportunity larger Rico. a we We to offshore Rico and transformative Authority Rico. and and Electric believe the Puerto development, driven performing ongoing including projects. are operation developments with We in modernize enabled and maintenance the and to onshore long-term power people transmission infrastructure opportunity by related operate, XX-year and by battery PREPA, June, system backbone by this

approximately and Quanta, T&D its transition to additional is Puerto and Quanta system Hurricanes compete modernization – a in provide Further, earnings we in is electric anticipated period, Irma. there repeatable capital with efforts juncture opportunity destruction a sustainable work year, and Maria to no last for or – while at from long-term Rico’s upside the is after believe which electric this Quanta Quanta’s to T&D in visible, one LUMA. system flow investment expected to LUMA. from arrangement cash electric separate associated stream power a that a for caused critical opportunity Following Puerto and requiring are is ownership interest communications by Rico, with

As T&D to estimates a is and be to agencies the by rebuild, required modernize, Puerto could government result, more U.S. power Puerto on relief PX initiative. disaster that a expected through which investment embarked of federal be XXXX a capital in The plan the for harden has and by $XX of authority managed LUMA. of green than electric billion enable Rico grid, majority this Rico funded

in reach are Power our of and perform United permitting to a that well. which companies the fiber company by ample Quanta’s and across communication meaningfully We engineering, Electric longer-term, this gas continued leader growth segment providing XG businesses recent Our acquisition programmatic utility morning, Chicago-based homes and and driven States. communications proven In locating This strong opportunities infrastructure stages services the acquisition our markets. utility early the in services in our services is core capabilities enhances a to highlighted densification see we our deployments. release operation, design, for in and electric for utilities, of and included press utilities delivery engineering demand to near

to and capabilities this and to allow as for capture XG and the is brings deployments fiber technologies, Additionally, engineering acquisition XG will on greater wireless previous and us design more compared believe we increased complexity execute deployments. engineering communications

American Latin hit which have operations, exiting, Our we hardest by been are COVID-XX.

greater-than-expected in during we factors a contracts. various As resulted our result, quarter. American to – These Latin efforts the a which and the the region, loss quarter, accelerated exit included terminating in

our ceasing the and While largely risk uncertainties operations addressed continue remain, been our we complete by our and believe challenges of by most believe exit LatAm will the have to year-end. significant actions be

and segment. our Industrial to Turning Pipeline

segment pandemic portions in the of due second experienced we the disruptions the anticipated, significant As quarter. to

in of Those several orders to quarter, However, and the restrictions management and profitability shelter-in-place adjustment rapid balance implemented. market began was and excellence. changing shut lift work conditions, rates cost segment through our begin the utility to down to better-than-expected quarter. operational than metro in Early were recovered due of resources – gas our activity the better operations our markets utilization restrictions expected as were and effective

energy. of desire not to full from expectation permitting into unchanged regulatory Due Demand Utilities to in to is grow. existing meet valuable. COVID-XX. order year friendly and life test, to early for largely encourage replace to initiatives. safe, replace and owners’ did pipelines requirements shift a XXXX. experience stages reliable environmentally profit for delivery improving expectations the remains gas and our aging make to services impacts the to at and operation our reliability continue Regulatory extend our of customers some during likely these new the solid requirements we inspect, for for will now expect to expect in year. services work maintenance challenges perform pipeline more infrastructure repair, and demand pipeline pipeline infrastructure utility safety, aimed integrity continue integrity next As our remained distribution remain dynamics, to existing Increasing the useful gas customers’ integrity despite that ensure result, infrastructure multidecade assets our improved our quarter, programs modernization pipeline pipeline through meaningful building environment pipeline Further, an of

in industrial challenging benefited services during the catalyst Our our solid and services a tank remained diverse, for which Demand quarter. is offering us maintenance quarter.

during the we these our activity our on negative Thus our work are for to demand the and return in later are stability refined the year and XXXX. improvement in balance services operation for maintenance is customers’ is market certain industrial for necessary there and COVID-XX the However, on-site operations other this the work and of delayed capital of and economic Because due with improve. turnaround to for consistent performing we believe influence XXXX. continue opportunity confident deferred restricted or year of future as expectations, to the projects in this facilities, will products, the conditions far,

softness of this segment, the in services and experienced as For the remainder our ancillary expected. quarter operations midstream portions of

And pipeline, continue The the to pipeline did However, good finally, job projects for Coast example. challenges. operations environment. face permitting costs managing larger these to a market Atlantic

this larger significant. Our pipeline is not year activity project

However, for that beyond pursue opportunities an our outlook. we would additive and be segment XXXX this and continue to to

are we create the services operation. three more several last utility the estimated segment’s diversifying years, revenues the of business the lines on the and consistent focused segment on of revenues than services, of business to To for more For the this year. base Further, are focused revenues. which to segment the XX% account sustainable scale end, base been and services, and in primary account have XXXX and increasing for of integrity segment, nearly pipeline gas and XX% been industrial estimated the services that service we geographies a have gaining

strategy our to we integrity with pipeline believe years, growing our focus to over expect and increased overall operating last utility, offer on five Going the industrial continue post-COVID for gas the for and forward, a continue environment business, margins services segment. and will base opportunity the returns consistent

prudent financial to the our and increased approach year expectations have We taken for our a outlook.

continue growth opportunities. and the we not pursue and incorporated confident Quanta’s remain about Additionally, multiyear expectations our to marketplace that in are opportunities into positive

through that the more stockholder under note repurchases. we the organic Over and believe our our stockholders. Quanta years, of to we We shares that large strategic up long investments to meaningful would June million of a the future opportunities through the over ability start and enhancing To cash at on designed inherent $XXX maintaining this generation to to past also to company are its repurchase generating common for year, common for retirement Quanta we our us growing by business generating Quanta’s repeatable opportunities runway generate allocate that of six events our XX% strengthens five to in outstanding repurchases, initiatives. These sustainable for mitigate dividends, XXXX, in opportunity of in have to such dedicated $X.X repurchase our Board our which repurchased this earnings as believe we stock customers’ strategic actions Directors stock remain our our unexpected outstanding programs. time. and and end, XX, morning, these than has to million has to demonstrate I acquisitions to on our billion value which believe levers prepare capture our and profile. and risk of of new and diversification stock has Quanta and of years, a stock our have the have authorized ahead a those announced as programmatic and executed flow the strong spending $XXX value-creating services, and Considering efforts strategy we of shares commitment into confidence common program. portfolio of available us we repurchased We value execute past the stock, of growth financial approximately equates the over more

long-term focused are field expect the operating through and best-in-class continue We and ourselves for the execution to on business to leadership. safe distinguish

base allow pursue leadership to to value solutions will for results to Derrick? generate Quanta’s all our innovative over form stakeholders. will position entrepreneurial provide Jensen, and will us model our turn We We second opportunities in that believe and business review I diversity, continue our CFO, unique enhance for his operating to call long-term the Quanta’s expectations. quarter our industry of the to now and XXXX Derrick foundation and the customers. mindset

$X.XX million revenues diluted per $X.X Thanks, Today, billion. Duke, and attributable Net was diluted of share $X.XX. good or adjusted non-GAAP and morning, $XX announced common quarter share, second XXXX income a earnings to measure, everyone. was per stock we

quarter As well caused energy experienced as for the disrupted back stay-at-home on our impact the amidst and customers market. all the unprecedented by site environment We in pulling or orders expected, access results affected restrictions capital our challenges deployment COVID-XX the its economic that by were the were uncertainty. certain job pandemic by of operations significant compounding second as challenging

across were successfully we the our exceeded of However, results execute able that operations estimates. our and deliver to majority

America, our quarter included XXXX. increase and to of from which billion, a West This margins the Coast meaningful within a segment quarter will increase in second basis disruptions the of American Electric the levels improved by we growth Our asset half revenues, were activities, execution margins communications when utilization. XXXX The margins with driven and continued hardening was excluding operations, of operating expect Canadian Latin from primarily Revenues accomplishment Electric XQ compared XXXX. to XX.X%, and of fire segment second Latin the improved XXXX. XXX to delivering levels, accelerate segment, compared our COVID-XX-related a in electric in $X.X strong revenue which were the XX% in increase points XQ line XXXX. our our Electric still from are XX.X% to increased were operations performance operation excluding operations, Power XXXX versus our reflect due Power X% X.X% operation given levels reduced second across and

COVID-related last headwinds. year addition, and both despite In improve communications margins sequentially continue to against the

our wind As caused to Peru, termination across in America take environment by largest exceedingly to our is continue Latin avoid to early the but and been The Latin challenges customer Duke orders down particularly operations. contracts which operation. mentioned, to activity. This losses American of due actions exacerbated various have in we lack stringent accelerate the expedite stay-at-home exit uncertain of prudently increasing COVID-XX the of purposefully us to region,

losses tax recoverable. the the approximately impacted $X.XX, costs more operations incurred termination, Additionally, multiyear receive certain $X.XX in currently support losses had the we contract anticipated. we MSA by million contracts America, no no that were longer to upon so Latin than $XX benefit note, Of in for quarter

the to of most and be segment, segment expected pipeline experienced to negative from lower XQ impacts the case. the energy and industrial challenging be the Revenues XX% than that and million, were We XXXX. our $XXX market by for proved COVID-XX

gas companies. distribution In levels declines projects. approximately compared revenues, to the contributions from addition, these from were year reduction offsetting $XX to of lower revenues were pipeline million Partially last larger increased due in including acquired also

that resulting these loss quarter. the expected segment profitability, We P&I headwinds second potentially a for in challenge would

our business of field than activities This management the successfully base those headwinds. X% challenging execution accomplishment but However, based and led proactive performance and by significant with a circumstances operated through solid the lower for segment conditions cost XQ activities margins in across the was significant segment. the we operations across delivered given XXXX, and revenue

quarter quarter, Atlantic total the from the backlog from backlog approximately and Duke forego quarter at XXXX. of their second project. Total expected of pipeline to $X.X or backlog billion XXXX, to due of with our end billion Dominion the and XQ was slight $XX.X Energy Energy, X% both XXXX. remaining Inc. Coast the June decreased is the revenues second of Subsequent XX-month increase XXXX the higher Our the of the than $X.X associated billion of completion of first to a first Corporation largely the pipeline. announced project removal quarter, portion owners, XX, intention

Although to of as excluded performance remaining joint the the venture contract XXXX. with of XX, remaining which the therefore, is has in participating a related termination, associated have performance obligation Quanta the the revenues not based notice probable, obligations on received that and and we are backlog June are from concluded no longer original announcement,

Duke robust programs, on arrangements our opportunities multiyear As and mentioned, multiyear of P&I customers the with both segments. in electric spend project existing to extensions larger have continue and we conversations new

expect engagement finalize as customer with discussions those We the record associated drive challenges and backlog. will normalize, that for opportunity

More LUMA importantly, next our venture announcement of years. and Puerto Rico’s over distribution the maintain Duke operate, mentioned XX the second grid transmission Energy quarter and joint electric modernize to

business to we expected show to awarded successfully contract ever to LUMA’s up the our value would move of commencement, this Quanta. in portion extent award represent the phase backlog, largest While that the transition through cumulative

predictable, would electric If what you historical margin as this equivalent earnings is cash billion. sustainable appreciate that flows this XX-year award. represents LUMA It XX%, opportunities as backlog well of against award the potential assume the of important our executes imply our to future successfully award arise $X over a profile contribution and as as segment can to a

non-GAAP flow, of of $XXX For XXXX, we the quarter million. second cash free measure, generated a

quarter more in decline a our XQ measured due days project as balances sales days line last decrease to pressured to levels average a of flow to is days billing with changes the of days also for of XXXX. Cash that XXXX. of a impacted outstanding, DSO revenues. XXXX year, in requirements DSO, or and by cash XXXX well in impacted by nine which three to XX retainage second XQ quarter, historical as compared customers capital reduction to higher compared working the DSO reduced quarterly levels sequential compared sequential throughout DSO partly for from decline timing positively XXXX attributable which The were as in strong were second process the in was certain Our resulting XQ flow

by remainder permitted million and million tax at in the We and $XX $XX We of amounts the from Cares equal in at due of quarter. which the million the also benefited end $XXX end July deferral was the Act, payments of paid the had XXXX. of of of XXXX cash

As of our as approximately ratio, of below agreement $X.X of secured X.X we of and to total June preferred XX, calculated senior X times. debt-to-EBITDA X.X billion XXXX, under times, our range had a slightly liquidity credit approximately

assess where operate guidance. ourselves to local susceptible are project our to some we to having Turning teams the prospects upon we uncertainty operations, as with our quarter, last permitting stay-at-home that level local in depend access Similar or those near-term facilities particularly still enclosed are dealing found to of offices. we of orders,

we continue As year deliver. approached spread, remainder prudence will typical and guidance the expectation with our have for COVID-XX our the to cases of what cautious a

billion unchanged, Electric year full billion. segment Our between range $X.X for revenue Power expecting and expectations to the $X.X are

to increasing full $XX million. Latin are and operating margin X.X% we America contributing However, operating losses million between to with $XX of year X.X%, expectations

joint which to around execution, investment LUMA as the are contribute project margins successful is joint will method the of reflects therefore, losses, for be venture. not America equity expected impact Latin XX%, and plus an The revenues. LUMA venture to accounted Excluding now continued incremental

to our guidance earnings including accounting income of most operationally is $X.XX operating are our LUMA However, after positive share. integral LUMA our more we results and equity approximately compared within LUMA’s are or to anticipated are since equity other are as to per in investments of presented to tax in to that income positively and by $XX under million operations XXXX operating contribute nature. $X.XX

segment and approximately and attributable activities. energy to earnings stock incentives. challenged the by billion. one performance-based between full for common Customers projects this opportunity The could billion reduced continues transition LUMA’s to that our evaluate year per share diluted accretive impacted market gas reducing spend have smaller with we year approximately annually, accordingly, are range P&I expectations be anticipate conditions, also the to We upside to expectations period to $X.XX distribution earnings COVID-XX environment and and after $X.X $X.X and have by from capital revenue certain continued be

larger In now project results. we been more have to will addition, opportunities pipeline and expect meaningfully certain contribute delayed, XXXX they

for We is the customers range a have to have of ACP, regard increased which X.XX% we determine how X.XX%. are to with with termination Of the now P&I working expected and the our full yet cancelation year close notice, to between operating will to and the guidance formal segment, out. note, receive margin we project

contract we agreed and then closeout of to exists, for potential closeout with environment, down project significant and do be our believe to until timing work Quanta. Relative the will variability of the known, segments quarters. we determined venture final Although fourth expect scopes electric the or by ACP and fees upside margins other associated revenue contract wind current any termination is P&I allocated not not accounting both by seasonality, the operating defined across and third in and the in joint are

Latin share earnings increased adjusted full $X.XX in year expectations, earnings morning, and our $X.XX. noted share, of GAAP our release between and operations. diluted per per a our per expect diluted we include this As $X.XX earnings per and a of earnings between now between earnings $X.XX share have American measure, And $X.XX. loss share $X.XX from and expectations per These of non-GAAP share

Turning to cash flow.

cash flow our first aggregate cash of with and the year, guidance validated of free trailing XX-month range for was million. $XXX the countercyclical million The billion. year strong $X.X for free cash flow to our by half nature of the further $XXX cash We the between flow flow raising are

recovery the the in fourth working as outflows requirements we increase cash third in typically and by a quarter of ramp drive is the to case. expect the However, revenues for quarter the capital followed quarter,

be experienced second we’ve have through – year payment the related and remain and the about fourth while COVID-XX for quarters capital While we expectations conditions to the that taken of present cautious and certain outlook. guidance raised combination minimal for DSO the challenge COVID-XX near-term the volatile my quarter, that the our deteriorate. I’ll the third conditions base preservation may if account of through customer and commentary, of our our by we market reiterating have economic actions rest experiment delays to portions energy close

Excluding our low to the largely Latin year with operations, budgets. we we COVID-XX-related performance least for the the America returns the the to associated capital with with pipeline for XXXX with continue as are well of effects opportunistic of Overall, quarter in about at the LUMA the the have of opportunity sheet Puerto Quanta’s that that our deployments Puerto capital. customers’ beginning business, of from are particularly disruptions, of XX%, estimate balance expectations the long-term as our in change XX% residual pursue can oil be attributed for to of Rico pleased and to Rico. capital and prices prospects M&A remaining industrial second resilient flexibility We’ve with maintain people the excited what and strong future a investments represents our and continued

ensures authorizations. share remaining $XXX We previous aggregate of open have return foundation by now deliver presentation, our new under we we’ll the the formal million value. authorization, represents repurchase stockholders $XXX concludes line majority sustainable the stakeholders Our long-term of to the our earnings enhanced our to and further the repeatable, to with believe coupled of all streams the efforts nature for This which, million and long-term shareholder Q&A. are to stability provide Operator? capital of $XX million our program,

you. a Thank [Operator conducting At Thank question-and-answer Instructions] time, you. this we’ll session. be

with Noelle the comes Please proceed first question. with line of from Our Dilts question Stifel. your

congratulations good good performance morning, tough guys, on and a in environment. Hi

Good morning. you. Thank

Good morning.

given the you’re could extent associated you’re how – particularly whether about will of just America, give hoping XXXX thinking the lot starting the to to Latin and going COVID, with some degree they into about some year. side of the XXXX, or kind oil-related just what’s which of side I these to a on next us think how So to in continue won’t oil what thoughts of business, you was on headwinds on headwinds,

us just of thoughts some on you’re initial If sort you could would helpful. about XXXX, thinking give be that how

Noelle. Yes. Thanks,

about America I we early talked Latin We think when this exiting about talked on. year.

prudent We’re doing that in manner. a

contracts to get cost certainly with some to exit and earlier. us. behind that trying We’re We COVID in rose. did things came

of So in do that be XXXX. out, that and we’ve think for the that I will majority guided

As we look I year, being about grow. to – talked largely business being the Electric forward, were we base even the It throughout able on pre-COVID. the intact segment robust,

is our So working. strategy

down. to year light On we’re we saw and largely beyond. effect, the After part. That the We back the shift switch side, shift we’re so P&I utilities, next do work we with for customer that, some going somewhat cities most in are Everybody’s intact. to some interfacing have where homes. people’s has work

for of pushed year. believe all drag Puerto XXXX. in of obviously, opportunity work which and the a out the there I into baseload into the on bit of the XX% base next lot Rico, all, work, a that’s Canadian But and little there transformational company we added So work, is

gotten stronger through has company the mind, my in this. So

Our going you the – know where you go. don’t to can’t economy is Industrial segment,

good market share of stronger the to chances way side. team and have there. this on gain to So the come out it demand but we we’re predicated on will I management other be there economy. evaluate areas that. really is like long-term, sometimes the of these gain Industrial and certainly And down able in around a market share, segment But we’ll to the lulls, continue our

that you. trading of on how Could about you you’re players might Okay. given some kind $XXX That’s thoughts stock Thank repurchase the today? authorization the helpful. more then thinking be just And of would be given capital then downturn. the what give deployment, up just in million attractive in us quarter. to little to And bit opportunities announcement stock pick acquisition some and the some I Thanks. opportunities may where a make potentially the struggling is your think prioritization

are a companies been acquire never to company struggling. that We’ve

in the strength it, we – So I buy we the at in into when think our strategy. look in,

years has price capital. strategy our over the and we’ve Everything the way five not deployed stock last is our against strategy. changed Our in

look – we a front company when service So lines spends to to region on programmatic are as end us that will at companies, looking strategy. their we’re Chicago get a things, The its we at allow strength to when within the bought of our we ongoing expand. was – that

very our being the on We It’s us was flexibility price. That company historic strategic the stock programmatic against said, will company. like lot give an So everything spend. that to old a that valued us. is of

believe earnings We earnings continue to consistent, and more more power greater drive its and growth. and it we’ll is streams and EPS value resilient, lean EPS into our much continue It’s to our today. than

you. Thank

of proceed with Our comes question with line Michael Research. Vertical your next question. from the Dudas Please

morning, Good Yes. everyone.

morning. Good

Good morning.

Duke, you anticipated, of of certainly you that plant you of in drivers electric customers relations acceleration normalize, program months relative in some there, to power and demand shutdowns thought, could certain impact maybe with going coal power your have ago customers, load get factors your sweet and some as as would thoughts and that’s gas closure would parts things going with convent the that’s renewable of forward? say, to XX what have expanding certainly and CapEx be spot the are any spend as there your to

Yes.

prevalent. a CapEx That’s think I it part still when you’re beyond, talked still It’s and the of at there. seeing multi-year T&D about on basis. first we even spends go-forward the on year

vehicles, grid. our that, putting order enable with you collaborating a have have and start you them. customers in to working to modern with electric EVs, When very We’re

side ongoing modernization And get the gas so and CapEx on both distribution of the thereof that for electric, takes to something business, and stability. there it that’s is the the

that interconnections more the seeing see renewables, on as that’s the of the why renewable the you’re the most are generation clients of expansion As transmission both and required amount the redundancy grid, well transmission in within expansion you side. side our on your other as have

vehicles. to whether and flexibility electric So to time. transmission talking the a this today or expenditures is distribution way, People of in grid order to it’s give the of that, exponential to necessary just enhancements. we’re are be for what see that that for the long you stability enable enabling carbon-free just things In to and you Either the period those in to of invest renewables do of really, my nature. XXXX grid about mind, it’s amount – of

XX of successful, That’s very and the the success Puerto able Rican going U.S. could flow it joint would going months? normal that kind base could your in my internationally, earnings, venture, of next with that securing forward, the be will XX, model or And that is be in it XX replicated continue we And on elsewhere see be business follow-up or helpful. something earnings sustainable assuming to that – to forward? that top of the your is enhance

social In me, the our that thing I for the their going that what do we’re a able was strengthen it’s people Rico this, modernize and the strengths both end I in think opportunity allow my along have we because it of and a there a with Puerto – to at customer, a there. IEM, a we’re ATCO, opportunity. strengths partner together relationship island. unique great came collaborate It’s to to our unique grid. of great us It with, with mind, will think is the

can We will talk we things. of do every there economy, and able We’re are lights and to mean we’ve – going out when it. the and We in be an Puerto also benefit. be I are so back to meaningful we what don’t to to us, build look this, day Quanta, if think we’ll actually time. through whole the going there And of about I at Rico. end, get for know us, stabilize for go out we it things. periods and industry done ATCO people I

the do I the of whatever the the coming we’ll unique. that’s contract side money side for $XX it on FEMA certain, an opportunities is which things of $XX think is that chances opportunity that the it have consumer. work the right we do be on will our $XX other So it and we economically call other it meaningful billion, – I it in, it’s and on or, like cost because billion, call is, And billion it,

So that participate see, a customer. you collaborate islands. as and that other expansion with other – for we There’s ways There’s our us. as that’s can huge

that’s under at all sustainable enable on – things grid this enable ways technology, to of different renewables doing the enable We’re EVs, time a to to nature. and that

we’re the call hear things and and those about, things day, I that around So what was company as to we’re get on the to they technology. doing, and happen. everything all all a about you time all doing a sitting the there, order enabling of around this talking that edges other were In we’re we’re everything

all base us, really mind, have we nice opportunities my in grow for a there’ll So kinds of and off of. to be

said. Thank very you Well much.

the Please proceed line Fisher question Our question. your of Steven with is next with from UBS.

addressed the Good morning. little got not. on I’m you’ve not late, sure I if Thanks. a this or call so bit

you a inflection the versus margins in of the side? Electric How So pickup of much notable but on about that from what up that you there if And segment. extent, the strength if I the point apologize, you’re was kind to think over handful wonder could side side, something the do electric of in next talk an quarters? I communications in the we’re communication ramping really seeing at business, the

I digits at in Yes. to say guys electric time. side the continue And X, I’ve operate before, operate of in will in say to Thanks. the operated want conditions. we we’ll XX make under impressive. times. operate operating sure double really we’ve The if The in business were that extreme and The over we’ll well I it this margins field in again. said are XX,

this. we making did for of telecom And we around are we’re would did double think I mind, just, about And quarter, out here. Electric That’s in digits. there. have the my large. setting – segment. They’re a way are think so have nice a to up certainly always we the I nice a They and progress The there. incremental is part The opportunities year think

build we we engineering extremely was which cities strength. some for – end, capabilities on build right work That added done And through important us engineering We in things. and those in an help the will we’ve in front that metroplexes. to office, the acquisition. the and EPC, do continue as quarter, I only We us to get

of the telecom. only forward I’m sit. So I’m move in where We’ll we get we at. better proud where proud we’re of as

of if forward? at side flow of how you happening about to then could in talk talk and just rightsized what’s And sort downstream see business downstream positioned a you more opportunities Is light you challenging of bit about the business conditions. the for there the Okay. the seeing think you’re Stronghold going what little on of that

as management the industrial them. side these as on Stronghold a side, good off We a and well the both rightsized side had still that the of. on grow team’s our they’re quarter of it. G&A see electric obviously as team great Hubble have really aspects quarter We it a We well the to the as as The advantage the first – in catalyst certainly us They’ll the business, gives we’re is of base opportunities again, stronghold exceptional. take But we in fell business, second. profitable. off record management

other only doing well still side We’re the out we’ll out think I stronger. come And there.

you. thank Okay,

Suisse. the from line your comes question with proceed next Our Please with question. Cook Crédit Jamie of

Industrial One, pretty quick that Pipeline in quarter. nice – of – follow-ups. the declines margins just and saw. to the just revenue follow I guess, a the were and quarter, morning, considering good also good Hi, you couple

at now continue follow-up And on as it’s year you assume reasonable Rico. Noelle margin have little of add and the base talk I seeing to a back of LatAm, consider that asked Puerto share improvement you’re about is And for adjust of think structural So what you can then can exit to maybe more we $X the basis? think the in my margins a your XXXX to a last isn’t to sort number we Why adjusted you disruption, question this an XXXX. specifically, Derrick, you that’s XXXX, you quarter, into a if but asked. there take I anything for improve on sort fair COVID and and nice pace whether repurchase,

ex-pipe that forward I position the pipeline done X%-plus it company to side things Good pre-COVID. progress we’ve early general, progress still I on. mid- – strategically right and the that’s say, we is would guidance stands. incremental on go morning, to were digits, there. think And made where We’ve Jamie, in to high-single I the at it on

think our double-digit I is portfolio, goal EBITDA. a a

yet. there not We’re

We’re working on it.

as see then those and And a go returns of as can see the that industrial-based. continue pulling rise better the the bit far – P&I I continue up. think segment – pipe resiliency margins it’s margins And the little the to the I’ll as You you’ll utility-backed, could get $X. And answer it’s pipe goes to there. on farther, you’ll and forward. see segment, Electric pipeline

now. last think there. by more I The It’s opportunity when we than we quarter, is stand about it talked for $X. opportunity

now. where at. we’re So it’s – It’s well It’s that’s giving numbers. And June we’re August early. June. But

working good but So and we’re guidance, everything we’re inferring. saying not going very, We you’re company see The at is to hard and thing. margins. very everything give you’re shape, in XXXX same the

very you Great much. Thank job.

Thanks.

your question question. proceed from Thompson is Adam with with the next Please Davis. Our of line Thalhimer

morning, good Hey, Nice guys. quarter.

Thanks.

Hey, duke, new was so, if under contracts? existing work did I more And contracts? was was that hear you QX? say that that in Or XX% up telecom

we thought that And early on I things what it, when Derrick about I accurate. lot don’t I picked that’s – and having doing we mind, think seeing. talked It’s under our about better, in some or field, But you’re a I if said to said – we front-end – we were that. that’s both. get were that know engineering. the of went would up, as we And revenues it’s

in starting We’re field. to put people the

the strengthened too work Canadian quarter. Our some in

continue with as all to of lot we’ll of to kind So see the together. XX% we those business. a it go in opportunity Not the ramps And construction. will field There’s continue those kind up come things but there. ramps, of

business quite nicely. I like we’re And the growing things We’re doing. the

saw about mind, now year in ability for also. the talk million. still faster talked components. and at to Yes. keep or behind We ramp, see a compartment revenues telecom other we’ve of on stand have than it It’s And business to I being able this mean, in our we of I $XXX some time. above quite Derrick, obviously,

us gives then we it enhances into side really, to the of morning and the that front move ability And this the acquisitions, field. about the quicker certainly talked

just on And more actually. Okay. one then telecom

opportunity ramp? mentioned How how You in Quanta XG? XG. And that play does does

when and you as fiber The components. to about is towers XG of of that the cells, and – pulled a all need the XG. part And those enables it, somewhat those your bit well I’m cell think that edge, But it of every data enable whatever the it’s backbone on your sight data is bit back. your I what mean, power that mean, things and line may centers the nature. – things nature. of the They on as takes we – it, I But by look be. things it at cells, from are and quite small about fiber communication seven to density way, XG of of

our XG. a ability and we’re we deploy of collaborate of utilities, interface utilities gas local telecom those So with in the our on things, how enhance along it great grounds position and or edges put around the us all – and the middle with there electric to to on

Okay. Thanks, guys.

from is proceed Sean question of line Markets. the next KeyBanc Please Our question. with with your Eastman Capital

high wanted Good level start one. I yes, this quarter. just to with, Nice a gentlemen. work really morning,

guys a this to Going Quanta of Is lot of releases – you over of long-term. those the Just is for be hydrogen talk technologies. there any at earnings any discussions? something part looking through is if Utility curious discussion quarter, about that interesting

those talk things. all to We them Yes. around

general, that about It a carbon We long talked time. solar a environmentally footprint in time. about is hydrogen part think of talked I we continues is long friendly. be something, batteries to a

are So conversations, it around on any all think hydrogen And just the is. of depends those of those natures. all kind it. or what plant of things It we’re those we part I kind edges on whether of build something

like do hydrogen, whatever at, be. it as middle stay going And of good we’ve to opportunities, very and we’re all down such may those solar, in certainly, XG, things the we’ll We’re past. done on the the collaborate that kind

and enabling We through continue infrastructure. grid forward those try talk to to to them your the advance also technologies and

capital just about utilities maintain just halfs, all think seeing budgets. second And it. their Got the as we

getting that just just dynamic I I’ve for some accelerate work stuff. and about about thought what trying the this think maybe But couple their means of think I of a some budgets increase sort half. seen accelerated. to prospect second

spend those around what second the have in half are in customers or acceleration budgets built guys dynamic. up those potential a So to catch and you able

within it, restrictions. when think many where at we COVID different I are environment looked still of or cities the kinds Sean, Yes.

now So the prudent mean, a hardening of I storm on guidance. in that. we’re I the Electric we took the back a approach we segment the We think half, said to in fire the believe East half strengthened, back still Coast. was

And difficult so very under it’s the it. so Covid and to what performing second guys restrictions, where are half, say our to if exceptional there’s upside

we at approach we and I to have think prudent COVID. took either workforce do a strength do nice home the But see sure there, continue like their with making due and clients all we that we time. some to is opportunities our

capital that to and So of and things nature. the that on able see their making those sure we’re capital plans. we’re Or in deliver future, backfilling what budgets they we’re

conversations So on. I move guidance prudent forward. All we all, going gave in we think of good as lots

the Got it. guys, thanks time. Again, and for nice work

Thanks.

of the from is Justin with question with next question. Baird. proceed your Robert W. The Please Hauke line

here. quick two ones you. got Thank morning. I’ve Good

level to, we to about telecom just think I XXXX. on – set one, First guess, as

close think I getting would with it for to revenue the that the $XXX originally guidance the year margins segment be about million was of average.

question arbitration there’s any come process just related closures? items you. legal any have you’ve exited there’s other in anything on update is if And extent – as that else that second to we through question. as then revenue And the how That’s half. So I so the those comp my get the can to we about just margins what’s are update, also an think first was next second And the those that contracts, Thank to hoping year. kind and up where year of these year-to-date, halfway Peru. the the we’re

I’ll let jump back questions, in Derrick take on and Peru. I’ll the margin

probably would looking still at very about halfway basis, we’re there. slightly above million for intact. probably to year-to-date From $XXX Yes. we’re I XXXX much you, a a perspective, On revenues tell telecom

single-digit continuing sequentially $XXX than range increasing. improvement that over bit the mid through margins, year. higher there A We’re On year, the as much profile probably and rest still now above little to the are of see we commented had last range. very margins dynamic of in we margin and that They’re COVID We in the that’s million exit second. improve. the our first

double-digit margins I year. that you I So and feel our upper would of even confident be it creeping to otherwise, second, still but see in the have up, further ability we single-digit the exit seen think by our we the time in kind more very

administratively network goes, as point. at asset our to preserve As lawsuit we’ve that far Peru as to over this handed our well needed the the things there. do We’ve done we as physically

It’s positive more where incrementally We’re process. about we’re long at. a

there. going to continue think recoup the right We’ll to see months. XX decisions that us the is will over next where I it our forward what down goes We investment make allow

you. Thank

The Citi. next question Andy Please proceed from with is Kaplowitz with of your the line question.

Hey, quarter. good morning, Nice guys.

you. Thank

projects. talked much evolves you in quarter, about delays have have this I fruition? pretty quarter revenue then you potential a number book project talked an in that year? you to seen of to booked. any large half last hope opportunity see a book MSAs large they’d every Duke, be consequently transmission to about the second also Do billions book expecting these having as And of renewals of MSA you XXXX and coming

press take just on They – those – timing Look, I we don’t things. again, time. we our don’t

what There’s multiple out time. call on all the or depends looking opportunities large them It We’re not. at you there.

we’ve and just booked back think only say, it. be it see not their And we down not we’ll what off and XX and is island us, better. it’s pandemic through as on this of or go at Derrick $X they’re transformational billion and will a company teams but guys too quarter, I is I come. would that meaningful that have in did when bad to to And that that that generations I said done for, the and do look the something the quarter this what the a in for we able you I commentary, streams, way on his go and in you what worked earnings months is

opportunities that larger They’re larger. opportunities there. remain robust. The the So are transmission said, being

Large It’s going We say pipe incremental doesn’t forward. on matter matter. It this to will anything doesn’t about. on It to continue doesn’t us. it talk pipe. quarter, I doesn’t only matter this we matter – and

anything If around it’s we won’t. this incremental about up. today. So That’s the it, it’s company pipe, there, on the If I it’s it what think is we future we’ll when say. not, it’s fine. or not pick big to built And

That’s sort America. accelerate of Latin helpful. out of And getting you obviously, can then

would So be into and amenable you on as we sit you be XXXX? think to here today, you do the you extended not – when XXXX, being in really impact go out should EPS

I we’re a of the within contracts It majority move – were but could get is it, able of we hard-pressed in were that the Yes. quarter, you we’re quarter. and for our little have the but and to that that, to for do to the little answer mean, done, multitude us Again, the I right for I a linger, think negotiate asset out. bit shareholders, costs it Peru. money was a the right answer Quanta to there preserving through able in we

moving the through forward working get the that, we’re out. on We’re in other mind, side very quickly other to But of my areas.

of tri-state area this say think storm. to you And revenue, to expectations had around the just this that in help maybe for you in so because that more I in for do Duke, want out to whatever you’re need there’s here work We the mentioned terms storm going your area. year the you more

Good So thanks, anyway. quarter.

you. Yes, thank

the this back Thank for management turn you. At time, to I floor will closing remarks.

And great want risky would to more rapid in the they’ve is our pretty storm job. great on It’s I COVID. general, We’ve collaborated they’ve at mainly, say, that even done employees in we’re for back done that the environment. with will client say the lights inherently here. still. Yes. – hopefully, a picking I Thanks, business pace. all everyone. our I thank due a I the to work

guys thank has want of what in we’re field. of questions So ongoing a customers, and And that Quanta. your have there. in We progress being our you, made interest proud our said, I that thank and and the ton industry done of appreciate to proud the

conference. Thank you. This today’s concludes

lines time. you participation. You this your at may your Thank disconnect for