Quanta Services (PWR) 4 Nov 212021 Q3 Earnings call transcript

Hello, and welcome to the Quanta Services Third Quarter 2021 Earnings Call and webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Kip Rupp, Investor Relations for Quanta Services. ahead. go Please

can welcome, with of and discuss issued the Services outlook website that results, Quanta press Relations commentary the Thank of and summary section Earnings everyone, morning. of Conference this Quarter our which quarter third XXXX announcing quantaservices.com, we will found Call. Third in release Investor along you, at our to be the This we a XXXX morning, our

accompany of a advised is by remember Additionally, as the remarks, presentation facts. include liability the Xth, intentions, the slide our we call accurate established any and to Quanta's forward-looking the and prepared website. that you is of These morning to performance of webcast may expectations, Investor no Securities any about use this events that relate November include on all intended also assumptions, XXXX, therefore, speaks through viewable Please that will information reported Quanta Services of which current XXXX. time-sensitive or be as this only safe today, historical on are to information statements not will statements Relations do future longer call. under reflecting the call's Reform Litigation qualify section solely replay beliefs available or This Act or call from Private harbor this of

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

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

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

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

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

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

Derrick On it then to Officer. the today, provide operational and will over call Quanta's and Financial turn Chief commentary I strategic will Jensen,

review a quarter provide full third expectations. will of our results We and financial year XXXX

comments, quarter share. record Derrick's welcome solid and your morning, metrics, included questions. financial This we including adjusted reported earnings Following of number results, EBITDA, revenues, per which a we third

with record, collaborative of which long-term favorable the backlog believe growth our the the dynamics, quarter our we billion of of end also a advancement strategies. Additionally, total continued the of market reflects at and approach $XX benefits was in customers,

Since reactions this related in energy that significant acceleration, the North and how America's renewable we and infrastructure. apparent early the previously moving energy remarkably for culture. to has aware, will a fits and and our of Blattner which synergy Further, of is similar about on working infrastructure energy of the excited September, the you Quanta sizeable we're confident opportunities Quanta And America We the customer is when through a we economy management provide Blattner base a about utility-scale on were value are and positioned and safety opportunities many announcing and As and We combined can to our decades proposition, in weeks you Blattner increasingly energy conversations Quanta several are, existing the to transition strong acquirer unique announced transition. in more North all ago, and have a growth across we generation innovative investment tell and enable solutions carbon customer require transaction experience our believe operationally North which customers. position positive with commented in renewable Blattner infrastructure I in are even intention the team completed to been today, become transaction. excited solutions, neutral integration. of culturally, We premier and previously a overwhelmingly Blattner, increasingly long with and first believe that cusp growth new America decade's announced supportive. in to acquisition provider that

Now, turning the call to operating our results.

hardening, strong and allow and demand Power by and resources opportunities a of favorable services remain our strong and long-term execution, discussions operations Electric robust us utilization continue comprehensive and that to And proud renewable Our solid around well capabilities our position confident services, electric created our operational margins with high management of by perform our trends our market program Solutions to for future execution for for driving Demand installation, our grid and record safe solutions. infrastructure We're driven to revenues and for demand on active. advance. excellence. energy vehicle continue will modernization, utility capitalize investment, opportunities system interconnection

first generated strong, year. growth backlog service significant in electric MSA driven agreements master the Our primarily with multiyear to this adds remains utilities, of which backlog by substantial half power we the

X.X over customers Hurricane without alone. in which including million landfall X States power, Louisiana left quarter, X million made outages Ida ultimately across Louisiana, the During

was line significant deployed and hurricane, electric than support or of and whose One front-end customers utility is to services engineering including resource staff. by destroyed more the X,XXX support workers power damaged infrastructure

resources to Our support our substantial restoration mobilize record our emergency comprehensive need. response of resulted times quickly and ability customers highlights in in revenue to

renewables decades, carbon positive will the coming to value general utility-scale the creates North America's achieved efforts Our renewable large planned renewable be Blattner's power with customers complimentary generation sentiment mix grid their believe solutions, public proposition supporting coupled unique to Quanta's to policy which over energy a We through neutrality advance greener increasingly towards and opportunity part drive a generation solutions, environment near investment. our over and that the holistic is collaborate shape transition and and generation initiatives. and customers longer-term. increasing achieve continue to to their with

in is renewable Blattner battery America. powered projects example, XX on the than currently and is working North project the currently solar country more energy For Company across another largest Quanta constructing utility-scale storage

our and interconnections renewable generation, including enable transmission demand accelerated seeing services we're for that substations. Additionally,

scale strategy. operations continue and We to communication our progress our

markets. the closeouts near as of and power whole. which or capabilities revenues jobs or for we at the grew to as example, a these descoping For for in a developed in compared Nevertheless, margin impacted communication and communication to Quanta meaningful operations, higher our services demand profitability due overall performing of are year. last wireless significantly project costs into third these targets. certain our have incurred majority are the certain double-digit electric operations not certain wireless high services were contracts our quarter our segment And we expanding Communications though and to issues remains

Ida disruptions infrastructure associated recent well due by the Gulf segment along to in generally Hurricane the quarter, variant work COVID-XX and with surge underground and Coast being Our utility performed the in Delta certain the solutions inefficiencies work areas. of despite impacted

certain emissions, to utility modernize and spend regulated experience systems, demand improved gas and services, continue methane to integrity solid our are reduced We for safety reliability. and environmental which pipeline and driven by compliance,

next customer year to spending recovery as well We was continued expect of that and and capital through our effects refined demand along our of previously strengthen for as return with deferred to global maintenance market. downstream due industrial on of the economy the COVID-XX the the services the products,

customers are end, refiners working our underestimated. Quanta hydrogen believe Natural has create exploring initiatives could hydrogen plants turbines, and Certain increasingly are their gas the could facilities, Gas our for as footprint greener and gas processing bio-fuel to to into Quanta this reduce customers power and operations examples initiatives flow. which opportunities strategies programs. utility project with with to their several opportunities segment position gas pilot system hydrogen renewable coming To pursue source and fuel Industrial Pipeline that such building natural years, power them they blend There blending assets is Looking on carbon are of which for in several we their towards also opportunity to be diversify may opportunities their that a natural modernization opportunities. services. services. are gas utilities implementing business create as with the Infrastructure

have system Pipeline utilize proposed and Construction carbon a Grid, we projects sequestration Alberta's Lastly, capture carbon the participation serve other energy of million energy dioxide in Alberta storage which utilization called Engineering and to TC plan Carbon Pipeline as and actively Energy Canada, could in sequestration jointly pursuing our to In the Pembina carbon envisioned transportation services. and and of develop could industry backbone the a are when Infrastructure capable that, play facility XX a would clear. role transporting is North carbon transition investments, and which is The which constructed, annually. a include Solutions pipeline The our transition is transition than new pipeline Electric existing pipelines with by just American initiative companies. leverage tons the The be requires fully process. more Power U.S., of

and evolving and role, infrastructure enacting continues could operations this Washington increasing and support utility our towards DC transition underground Quanta's bipartisan plan. believe better in of in reduction we build infrastructure bill customers to in an back solutions in play initiatives. Progress carbon However, the

funding longer and commented packages. they package of As for outlook either new contains and core infrastructure currently not strategic These both reliant development In But near and plan over several packages energy if our term. markets. [Indiscernible] our positive to provide are to build and enacted, largest clean back in either modernization history. both include and American or incremental of representing Quanta opportunity the prior multi-year plan and could policy on the legislative calls, better policies particular on these encourage

additional seen still by what encouraged steps required, we're While are recently. we've political

year have to executed continue We profitably do well to the and grown this expecting Company so. and

in we are in are strategic we like have position and confident marketplace executing the the initiatives on, positive We outlook. the our multi-year better

customers, opportunities recovery for are momentum, gaining existing approach, and global generation renewable affected driven We business in for the Blattner's certain transmission larger our solutions, opportunities with for our that of of of by XXXX projects, spending new growth portions programmatic and pandemic. our by the been and of the electric business growth also addition opportunity profitable have believe solution-based that the

transition to increase our and Looking carbon the growth in currently, expand and initiatives stages generation necessary to longer-term, the early increasingly implemented, still we investment our as the visibility could is of renewable support and opportunities primary and reduction accelerate. time this history. medium and could addition business and and drivers initiatives energy We believe exciting these our the arguably the are most in infrastructure of deployment Quanta's to are that believe

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

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

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

services. to when were our compared operations. $XX which typically Electric quarterly base billion, activities third operating businesses income communications margins and revenues utility restoration better record a associated revenues increase normal approximately the were were business million. driven Power benefitted increase XX% in higher from of quarter Operating continued XX.X% our as emergency segment This to due $X.X margins as execution across was XQXX increase contributing than well to present electric but markets for record from dynamics our than overall demand $XXX our and across opportunities Electric initial by and of utilization, Our than the favorable margins approximately for solid XXXX. expectations. in revenues acquired XQXX, our XX.X%, lower higher core a of Also million, slightly

slight the Additionally, margins reduction million $XX during delivered of joint variability margin our versus attributable income a and to of venture. operations, with associated segment normal and margins quarter. benefited operating approximately job mix year mid-single-digit was our Otherwise, from LUMA communication in work which prior

results Utility Power activity Coast XQ pressured were attributable and our included, industrial level quarter, both revenues industrial XX% in and Infrastructure gas by Though this As of to segment quarter markets quarter third the Underground operations $X.XX 'XX services. and by billion disruptions distribution time, higher a what our also reminder, and last margins was impacted from operations year's Electric primarily a the for Gulf revenues restoration COVID-XX the negatively increased record and emergency were at year-over-year, due revenues revenues. experienced remain to industrial increased our Hurricane segment Ida, non-U.S. dynamics. along current within than

in both Third margins XQ favorable and quarter. XXX the line X.X%, from the pipeline changes XX, for in quarter were the year with of generally points -- benefited adjustments closeouts for expectations. margin XXXX, than our certain on projects operating favorable Margins with third income the segment larger scope but lower basis for quarter

end Our total total backlog. consecutive we posted the quarter, the fifth billion of the backlog third at record was quarter $XX

Additionally, record. $X.X billion also quarterly a of backlog represents XX month

levels. backlog programs is largest not Blattner accordingly, utilities, acquisition we be multi-year current North Our of believe included earnings. after our of in growth which backlog and and portion driven nature primarily our XXth, revenues occurred to and with by sustainable the reportedly their continues September the MSA The repeatable American reinforces

However, the acquisitions total billion. other backlog is from $X.X Blattner the and XQ approximately

in dynamics capital. Specific and large projects elevated flow, X the delays both increased of and as working XXXX, of third December an cash activities million, our increase Partially to compared XX XX% due offsetting created benefited prior Cares earnings quarter with are an XQ positive third free $XX was worksite. from quarter requirements impacting XXXX, XQ with XXXX, quarter with favorable a well the XX, primarily in XXXX, a resulting the continue Net associated driving to XXXX. of or production for and largely demands an protocols to XQ sales of we down negative $XX although by work X wildfires with XX, assets. Canadian among cash the third as in due project lower 'XX. capital compared compared impact deferral DSO, the by working to COVID 'XX. cash increase million substantial by of projects, days days compared December flow of increase a outstanding, measure, dynamics which Days was increased of revenues attributable $XX to mitigation, million Canadian associated expectations, other contract due Also, from measured to revenues The to of increase taxes days the corresponding stoppage transmission these the corresponding X due to with These provided in line things, encounter as Act, to, payroll the quarter to inefficiencies working of delays costs. in year, access capital For accordance XXXX. free benefited compared which in during higher was use and generated operating third of 'XX remainder of of lower December XXXX, increases in non-GAAP to of XX, Canada

We both are with these approved, course. already associated with some with been the increased costs, change regarding remaining in amounts pursued which of discussions being customers active in orders normal the have

In the our slightly addition, and to in work quarter. payment operations DSO associated in contributed production higher across normal cycles variability

other a fully agreement $XXX which to to, shareholders the loan from among of closed of had quarter, of Subsequent on issued September fund we the million, of XXth. combined term in rate net majority amount with quarter closing. end, billion as we billion. Duke to billion $X.XX at a provide net of approximately average we and offering senior a October consideration $X.X the of $X.X notes payable as Receiving facility closing was amended drawn our to things, the credit Prior with and weighted notes announced, on we cash the cash. we proceeds X.XX%. the principal previously As discussed, of the senior substantial aggregate proceeds acquisition Accordingly, interest to XXXX, Blattner

these America's we've always that existing acquisitions North part From strategic in energy carbon-neutral and maintain opportunity as allocation for a the Capital past, transactions. capital solutions deliver a Blattner our strategy, strategic discussed supporting performance us operations. subsequent largest to remains deployment and and represents in support to financing the of to the first allocation we Quanta's investment-grade highlight has infrastructure. a of have our key our to ratings equipment history transition Our to but been needs financial consistent acquisition our strategy expand capital allowed the capital for priority perspective, working

to potential strategic during of in our we'll our in another, release, comprehensive addition further we the shareholder it North financial end, profile quarter deliver, and million support businesses our year earnings facility, These well of dividend ability we additional to of to enhance objectives. To issued repurchase acquired program Blattner and approximately credit while evaluate third to range, can since remains acquisitions. incremental value American in and that programs, this fit date leverage utility acquisition above worth moved our made earnings part the strategic that combined X the our the requirements through the a believe the transactions and customers. $XXX to continue the date well stock debt the as acquired our as To continuing for minority release, the target While as acquisitions repurchase consideration create below through we we've our million. total covenant of infrastructure beginning and communications Blattner, investment our solutions and $XX efficiently deliver of approximately to of

Turning to our guidance.

of strength growth. solid our the Our results with deliver remainder operation, year continued utility which outlook core year-over-year to the the backed robust reflects for of

sheet, from address includes including in for Blattner's $XX.XX the to as excluding Billion. ongoing and that strength forth Blattner Blattner's revenues of balance quarter dialing acquired ongoing expectations which assessing between to efforts range of early be subsequent of the we establishing results tangible the during between to a companies, of opening our we be the increasing of the fourth-quarter the quarter, impact results expectations of makes attempted said, the contribution acquired our adjusted consolidated which in the $X.XX and we've consolidated noted to specific acquired. our contributions 's will stages financial the the which our comparability from our will those projects expectations previous assets The It operations intangible the XX.XX third range nine meaningful operations, businesses. to recently the on of months operations, closing included our expected $X.X to our positions Due companies legacy statements, of contribution, billion. and have to challenging. should However, the expect now our are very the acquired full-year legacy for in performance EBITDA, year, range first for billion and we to That of are

With range growth of adjusted when XXXX's increase compared guidance previous the midpoint our and XX% representing the over to EBITDA. record an

reportable to As current segments. it our relates

these recently we previous may change expectations to our the our the compared excluding current wanted evaluate change acquired on some business. contributions continue with from While commentary, to how color again, Blattner, provide addition of I to

and full-year expect revenues electric for range We between billion continue segment operation. $X.X legacy to to our $X.X

margin execute across the opportunities However, segment, confidence increased segment, continued slightly range X strong in our to for above for operating months of to performance the and expected ability on based XX%. XXXX the margins our the come on in year, the through full-year first we've

now approximately between now companies. $XXX and expense $X increase acquired to adjusted We and the to of million, change big credit control between margins requirement. and as $XX awarded for moderated on they require recently are revenue integration operations $XXX to $XX.XX the employees year we and however, the million, certain between the companies, restricted $X.XX and a recognized by million year $X.XX expect for includes with million recently $X.XX a solution revenue acquired currently point revenue impact revenues range and includes and underground its our contributions EBITDA employees the of for for to costs acquired of a while million the expect to to due between between range associated million our will year. acquired Blattner, previously basis full-year primarily Acquisition amortization expenses in segment in in and range quarter, consolidated for expected million loss to EBITDA, with and approximately lower selling recently contributions full-year spoke to quarter compensation $XX $XX.XX primarily to quarter, million regard measure a acquired is to Accordingly, and expectations shareholders, stock than for expected the Blattner, now negative $XX $XXX significantly estimate and post-closing be billion are payments million million period year the X.X% billion full-year attributable expected full-year expense $XX non-GAAP the expected have slightly earlier, which the resulting $XX.X including unallocated Corporate $XX.X companies. approximately one-year measure, to reducing with of be X%, third to billion. accounting, costs utility non-GAAP are This expectations segment, the full will the attributable provision and basis. second issued due for Stock XX $XX the ranging service expense units now and nearly be to which between range including levels the $XXX segment, Our for for have fourth million. to adjusted infrastructure I With the million Accordingly, between million companies. from full approximately the approximately expected $XX companies, $XX $X.XX of we billion we expected. is

the $XX the for expense this Below at quarter expense portion one-year be as to EPS to cash line, adjustment interest time will the we will million include made each approximately includes amount arrive be of intend around We measures. a Blattner amount incremental anniversary expect post-closing the transaction, to dollar comparable at financing non-GAAP the the our which million, of associated employee. expect year payments be an the debt acquisition. adjusted both to interest which $XX the used accrued until with to EBITDA, fund adjusted and of We

expect primarily favorable be prior expectations around in our now a mix we due slight earnings full-year tax to between our XX%, various Additionally, jurisdictions. shift reflecting from to the rate a of reduction taxing

a for As stock, payments earnings diluted we attributable and for to and is dynamics $X.XX. flow with measure for the due $X.XX range fourth common and cash adjusted the expectation pressure consolidated free is impacting the expectation now Canadian On restoration the non-GAAP to the This basis, DSO in earnings continued $XXX to decrease million. of $XXX that per our as our year result, efforts, well as per slight diluted expect emergency likelihood larger $X.XX potential between timing primarily and increased full-year to share $X.XX stock between share now between common now a attributable is a to projects associated quarter.

flow quarter incurs Additionally, Blattner's while as annual Blattner cash profile costs billing the dynamic quarter, factored cash of unwind will payments. could already fourth during the we at expectation. which which time an for into contribution in they've finish our range minimize acquisition of positions to the This be on projects Blattner basis, we favorable expect received to could accretive meaningfully our certain expect we

of and dynamics quarterly can occur project stated is various normal flow that we've prior course the to in in free quarters, sizable subject cash operations. movements customer As our to due

in Battner found refer IR acquisition we'll to the North our please in cycle. of opportunities and at of us Operator. line quantaservices.com. support of serve deploy which be expands Outlook opportunistically our shareholder capital stages website we solutions infrastructure we for financial front and in information, And differentiates of early to can the We while to value. continue Q&A. maintaining markets in financial Summary, America's the execute significant transition the info our open the a us believe we further the presentation investment confident are to against ability Overall, to to flexibility additional our For to ability deliver energy the in formal concludes long-term deliver This our infrastructure. now to carbon-neutral section remain

ask please, conducting a queue. we a instructions] you One now poll follow-up, question you. for the one please and the return then while to We'll Thank reminder, to question, [Operator questions. that's be then one We ask one return queue. moment, please session. follow-up And question-and-answer to one as

Our today from is first from Bernstein. coming Dillard Chad question

line is live. now Your

Good morning, guys. Hi.

Good morning.

to on some the I on the the business guess, of jobs side, that expectations all, guys just of areas want higher impacting zero first about in quarter. costing underperformed of you margins. of some I talked communication

that the lastly, want capital charges to coming some quantify on And side, results. see on First the a then that? just then think out, fourth DSOs -- about And can quarter just third you normalized? taken working you track of all, was or do you swing the that the you called talked Services profitable we or on 'XX? storm were there confirm those issues quarter? projects Canadian just back in as I go that into Industrial impacting were that Is business profitable whether And were was and business this still

Hey, morning. good

I at [Indiscernible] Telecom call single-digits instead the we think did we of upper-single operating to we're business, it. look when double-digits it out at mid when we from looked

So it's majority good or but there offsetting projects from we call, we business cost a and standpoint there, few standpoint I think charge added on we as it is not are not the as large the we to performing in close do or anything terrible. market the backlog. majority a said macro the It's where and on of those The We'll when double-digit from difficult performing minimal, very really go The just margins closeouts is be. vast robust. but want very things out.

COVID some We continue has to did start and get time. of there long-term, incidental to some there billing performing there some double-digits we think in at We capabilities, Company, looked think. some billing long backlog Delta into segment, we general, segment. variant when we points some the the there like we in projects see a on see are I in to a is through the still up run effects in There projects. Canada, cycles, general, cost I market it delays In over well. getting project, incidental those runway will build we Canada, it. to wireless the We this the as

segment. but more we to it electric bit we've issue It business was think with always shows project our have how front-end clients. very the And a a performed it and build in positive get not some projects. there bigger large of did I does get client, the for Offset, We well and on collaborate year for when with or underground it the the So on when from of that impact nice them. did to segments the It working effect collaborative services, versus in. little of that, just it's Canadian what problems effect a our we've did some performed to it charges. I the And it still comes for our there. to charges a have when Company storms it standpoint. things client, done billing up our of can storm, than does faster, job the we storm the We on we're got up the us, any as do work the front side longevity the think very like take Fairly of last well. yes, shows we storm get things with

go get So up larger some off offset you come pick storm. and you to work some also

the things some those in offset quarter. So

start whatever do have much you talk meet scale then you off maybe of Lineman that into workers with technology improve the of -carbonize innovations actually how from little your lastly, needs? throughput then labor. have to bit your about labor. term. have future productivity you just to And second guys College. or my business. Northwest labor can trying and U.S. down work you Lineman strategy for College. helpful. there's the you to Clearly That's scaling It just is your longer how your But you program And and just do has And to to a a pipe then ranks labor de understand with the lot question could coming can Northwest minimize that Maybe or

behind. just to years way [Indiscernible] scale ways trying X you're of about over million you're $XXX I we're think spent that. last long labor, the ahead We've and if now

mind, labor This of and craft my who are. my proven labor. when self-perform that. for skilled we're the you daily that's not that it's that's this we're a we they're And and a give can budget, We've could we is what tight we've in labor, which you're expansion. on And on for time, that we markets, our In client That's So collaborating, reason, we reason. about mind, doing business why perform on why XX-XX% seeing done perform, is we basis. Company, certainty. grow asking our get

of against I'll show it our X,XXX The our As of to that is can far and every margins we as force. labor proof internal up growth or the force X,XXX growth can do Company, add scale productivity, that year it, it. put the the that we we labor

margins. the and speaks the and productivity itself, are We for it scaling

Thanks, I'll hop in. back

Thanks.

Alex Our coming Rygiel from B. from next Riley. question today is

live. is line now Your

Thank you, gentlemen.

As confidence DSOs likely your you that to transmission two in what to can and be? collecting due relates Canadian projects, in on it address the will the electrical the of on higher delays timing cost these

Yeah.

likelihood. are Canada DSOs has and the our bigger. So projects in DSOs had on and there traditionally larger Canada

the way. Some milestone the been time of in. that typically go this frames in billings way It's

have collecting degree in confidence on probability Derrick, comment a and of DSOs. outlet. the high We

Yeah. perspective Exactly. I is comment right on that now. What from timing would a

flow year-end, think is commentary. be cash I would our post which in it reflected

probably it more and second in going think be to of I quarter quarter is year. first next the

we have we're I projects with relationships clients, confident. believe quite very ultimately, good with shape. that in great We're longstanding Both

Thank you.

from question now Eastman live. line Sean your is next KeyBanc, from coming Our is

for think outlook in you framed you us outlook increasingly the to Blattner upside think point? have that seeing year. is coming XXXX just thanks in big of cushion you update supply renewables here earnings in back you're a I how development into I through the is completed supply at Gentlemen, guess just maybe renewable September. lot just my questions. tied this chain, concerns taking feel like in realistic Do I to bias a you obviously that of know acquisition Hi that you or that you guys on much around the what light chain. looking next could

helps I talked X-X And know some would go to adds we about how and highly said We from you execute. what today. only to given, years today say, only think it it, I call to there of We Blattner are. want having it. If X-X breadth XXXX looking the would XX is standpoint also confident us think and about X,X, X.X. we by about this when term, guidance when is even Blattner can my we before. yes, general, that just we add who in we've noise, say, Quanta, numbers. in of more stand which guidance a It chain to today. that think than the to supply and we're I also breadth out. we've is do we of more the feel We I we stand by given We about the standby And X,X standby Company those long gave we us did we Not

just Okay. Luma Duke. noise And how incentives. Fair comment quarter? in I'm to how enough, upside headlines not performance lot capture need that what doing in maybe obviously, still. you exactly for to trending fourth they relative on be that. Could the is the those works. sure of to could a be And that Thanks

So great to get an update there.

Yes.

noise So in the we headlines. Luma, expected

the large it. we're and thing. transitions doing to the the is to behind an these that performing governor, some we've start, you noise much well underneath on it right as said it. think have We're transition I does island, What is government from very the very

of a doesn't stand into we that of so bankruptcy, we We're contract of contract. until into the a transition contract will today, which single in declared full modern goes so, on Really until doing can't or out I noisy the just ability week as go the contract out a upside feel what has until system. control. XX our for doing they come those are on proceedings people stuff years I good bankruptcy the on going the little we're that perform confident the generation the primarily the that underneath, in every XX-year to bankruptcy's started don't payments believe. into not into and bankruptcy. in all rulings There was it last payments top, But on some we and then [Indiscernible] which day, a around a there you get we get full a favorable on We

Duke. turn a Thanks lot, it over. Okay. I'll

Thanks. is Goldman The Mehta next today Sachs. coming from from Neil question

line Your live. now is

news we whole aware I in and transmission project is of want on top-line the future around the any facing foresee power thing similar that time team. spend transmission, the on of [Indiscernible] NECEC a transmission working some breaking there little morning, electric you're due concerns in do be the to activity that of And current Good growth and project. the to you projects should regulatory large of? risks risks

and trying projects our of yesterday it them. added at The over this. of those anything spend, work, most around additive We're billion energy supply. what the Almost undergrounding, going on today, saw of one and to MSA time, people get they're of the is labor to OpEx from we what headlines The capital Energy clients edges our to may of [Indiscernible], them business about still transition. -- one the backlog want build with every every they're and look on CapEx I like there's that $XX those said. what tight quarter. over an I of add to right in kind are them. XX% either They large talk to single their the exist of [Indiscernible] to things do said the

into mid-upper projects. affecting you're I can last on expect you looks look forward. going the see It's record our and underlying guidance X-X at something what business reading So trajectories. any headline what in not you the good single-digits, years it large We've given track XX% that over growth on or read our that. like. The

That's about. involved and around that takes, saying The both package. the that's reconciliation directly and you the project budget from really clear And on drive that you case be base above form what reconciliation the in? infrastructure talk that. thank depending activity Would build package, bipartisan budget growth Quanta and for the follow-up could is it over spending

and you're that's you fuel you are coming doubling transition, America and I as think into energy And also the think more on, people around And going understand you're going free as load, a more And I you're transition. and to don't I in unknown, think what load your carbon that even renewables said. seeing you you're go as through into is over sentiment go Canada, around source. we hearing, and North EVs, time. we're doubling the

see that, going to going renewables. these to as very, of order And you're in things, areas. when we how So through are to or seen said. anything The the we need see. plan. allows to very without to you're and those do in tons you you hydrogen, think us we're and need think to And transmission do plans sentiment in got That's policy all good policy, sitting it I what five forward. spaces we'll we've that move do additive continue that I both

Thanks, Duke.

Absolutely.

Cook coming Jamie next Suisse. from you. Thank question Credit from The is

now is line Your live.

questions. One or short-term Hi. sort two of guess, once I Good morning. longer-term. a

understand margins any just Duke, accretive as the earnings that help Industrial and you long-term in think us trends. business as and business. revenue What your the XXXX. about then be guidance sort EBITDA, in is, contribution the to stronghold for longer to just And can business question Derrick, for implied XXXX term we or my if look opportunity secular we First, more to second good is

an margins You Thank bias have over versus the longer-term, thought sort about is infrastructure help of reframe you've you're margins, the of historically? more and about electric etc. upward how Blattner, you. Could you there how us thinking power

quarter. I year. a that the next fourth they'll have and fourth in general, so Derrick take let go in comment real what will I'll would do I you much confident the But year, on business, bit price, be on that We say feel strong bit. a environment. increase coming but the year we Jamie. reluctant we [Indiscernible] see morning, I'll to we an as good business But back the numbers. of in into we believe see higher a little this is on meaningfully. comment a turnaround the Derrick I in business see let in next quarter the And oil is,

as to Jamie. ahead, go Yeah, it -- relates

Yes.

Go ahead. ahead, Derrick. go Sorry,

be profitable, is degree was have could profitability back group a north said, returning slightly quarter, fourth I is the what million they which into say, think and of 'XX would at it slightly 'XX. going into relative just of to to That going for overall. we I that be $XXX

return And Those would start see into those definitely to as some to I out think talked I know a of of be we early increase. think see the an we it have quite quarter million about get I to though. type ability numbers past. levels, number. to to yet. don't the we'll it comment been normalcy the but see in too largely this how It's that historical having want I to of fourth that we again. degree north whether would see to we'll returning plays that profitability $XXX

about historic for profitability And strongholds? sir, can how remind thinking you're you me

Historically, they EBITDA. were a double-digit

in that for Okay, So there's potential XXXX?

Yeah. for I is do potential there believe that.

see of [Indiscernible]. range it think We will so guidance in yeah, are starts you'll be already that. It see [Indiscernible] guidance, the could I the how But perform. we'll

only I feel where believe collaboratively. general us. think the stronger things guide Obviously, segment, think can I to a we in about we in healthy. prudent sit. at We as to we're doing that double-digit about when It's And mean, in And we We've added great I for doing as are. think whether when as we get that internally we really put macro-environment. field. put is margin and power Xrd. about is October We the together Blattner be as and And we than we're their lot as the the electric stronghold got how 'XX forward, we areas. melting will we culture have think performing opportunity, we as stronghold secular today segment it, of in, I always what Company. say it again, And did has a perform it -- far see that in will like into we I we business in I good going As anything go those through we far looking when a [Indiscernible] look

Is is, question see profit in Is the it my to it? way guess you upward do dollar I think about longer-term growth bias? versus margin? that more But,

cash have I the CapEx a to the And far deliver kind standpoint, we'll of trying from as basis. on those the in think is to -- bottom line. a returns, segment. standpoint things, it's from additive profile in the past we standpoint we're more the -- of operate my as kind from capital, on same Electric a Blattner return

-- I So they're accretive.

you. Thank

is from from Our next Cowen. Bianchi Marc question coming

live. Your line is now

understand 'XX, wanted or the talk fourth Blattner the to I try quarter and businesses 'XX thanks. of Hey, that to about for the acquired implied in and context excuse guidance for what's me.

there is $X.X I rate there us or perhaps think X,X earlier, it's business? some I said if a a revenue little I annually. you seasonality you 'XX, take just understand businesses, I'm better. X,X around to Blattner -- the it's that for projects like think guide, there acquired quarter And are fourth just could conservatism? billion help progression moving Is a curious lot if the in of that run so of from this

much like quarter only it. a the annualize on of a did It's we exactly it's Company quarter a at Two, so to exactly. is that Partly, quarter, October, not contribution sure. only Yeah, component a partial Quanta. acquire of that's so the part there's unfair given it

have We seasonality. degree a of

we with is sheet have, a is work companies that. we and of And That then [Indiscernible] to lastly, of fact that Blattner bit with point last of guidance to very and contribution well case You trying the of feel there that we been yet is any still just There acquire. the for the original the any got just yet and number. the affecting bit the transaction, stops then because prudent the opening as irrespective comfortable that are probably annualize and can't projects the that balance seasonality. And X.X-X.X this starts raised of movements We of at still have for do. a given take contribution. quarter outflows quarter projects, Blattner be you we

to how sheet contracts. will at that the Looking of rest opening out play some balance those of

X feel contribution. very but there, X,X-X,X with comfortable we or factors So 'XX annual X still net-net, different

Super, Okay. road. the Maybe that. work on what business for down CO_X hydrogen thanks of today you pipeline basis that dollars about is? a percentage differ you a might much today maybe for scope larger or do in look dollar talk you, maybe big work how pipeline of market opportunity a and mile a be of want addressable what the you it the or could from on the Duke, what the ever mile is looking on longer-term, How maybe or to mentioned like, however does total do per that terms it, you per and work

we have the LNG it seeing right blend that you they sit about When part they're pipe we're think think as about and you and doing just transition the it, infrastructure. need transition you role we think move thinking gas, they're I -- it. just so. No, on blending different It's what can middle would at moving I pipe to need need start is to I it segment in hydrogen think or like transition. move infrastructure going I and in of you and mean, into look our don't we where of into really much you're to into Whether that, about of you're also LNG infrastructure, natural going when is the think anything to when the things. this Really you're is future. move

those EV, think about these sit certainly batteries, with are that the in of we're technology and XG, Blattner all where the sit. we renewables, we it, that markets: we bringing things think in about today, different So Quanta they into technology client, that as things we all And from as help a how something this, transition not standpoint, where from but we labor only is the really standpoint, collaborate with they on focused sit they're a and where is how that and all transition. and at nucleus

a hydrogen, of turbines going opportunity is significant be going the front end power to on in think in at where are and So gas amount do playing we're forward. very to already degree. and blend where plants hydrogen we're But of it's there's seeing some even that I early to spec, starting

issue of be then so the hydrogen it. of a part grid it. with how a nucleus play Signed, the the in regulate The is grid to going keep bigger piece to balance you and it's balance and when, balanced. thereof So the will

much. very thanks Okay,

Sure.

Thank you.

next Dilts Your coming Stifle. from today Noelle is question from

is line now live. Your

Hi guys, good morning.

morning. Good

on, questions in related very to the to I wanted touch wanted level high I just or how good a we XXXX. just have I -- think that. from to morning. X timing of cadence maybe, should about work

The be raw are typical all, impacting we could are then any to if material at touch first you think you steel helpful. about seeing And how if the really second, right? would higher timing should is, projects or costs Blattner pushed seasonality, Thanks. on

pricing. in affected the I'll the comment we Yeah, not has it's some not on -- far commodities, as as material. the are seeing escalation commodity It business,

scale. project, Fleet, and on part while from to also customers, that's rest. us move others what that to reason I we delay, our Fleet Derrick power. let with ability our on renewable want look given others the scale, just and our I with a think, work the the environment client. we're with our -- project us business mean, through there's Scale our client, has I'll macro they us to want to forward. our constraints going I then how with are manage the at any or we suppliers there, to work I one, flexibility, amount, buying ability to Fleet really of you really, And that our And you advantage will when and business the in, flexibility allows competitive the in, allows think scale. coming comment

having our that projects be, And think patterns. would said to second, seasonality, in a lower impacting in that reasonably I Probably could But point comparable any timing I'd in the the pushing timing in a other historical little probably operations. type slight largely, that bit the of depending overall for could to But I our I'd either type given it's in point any stronger similar from from time. Electric one dynamic overall the say supply and to and profitability electric fluctuations supply our that the perspective, first, around. necessarily the to at lead is third push it's but things minds right extent the really dynamics. a having decline, of think to a being guess the say Not there's anything in Blattner fourth or I any to rising power upon these in power of of similar

I or not. on we've numbers our commentary year us we the based are going Blattner next those and say given chain that would on any upon in whether are confident into you [Indiscernible] supply we highly issue, numbers.

infrastructure. then great. one underground second, point, Okay, just to really within That's wanted And helpful. I utility clarify and

today if still where a business, on demand When where running be couple the seeing business? that On mentioned to this see hold COVID to or are any Thanks. over And or the years. there. you them at year expect know margins LDC versus that could of next you're the you comment you mostly also you impact margins, I strong was LDC you said strong did

the the were the on LDC so Australia, bit some of yes, some not dynamics little pressuring industrial and side. other side much London, a of Actually, then COVID in really in it, Canada,

And speaking feel that single-digit upper trending confident margins LDC continuing forward. from as that to into with to towards then we're think the go most LDC operation. the side. that seeing ability a I we've in operations see to we our comparable to, part [Indiscernible] for perspective, getting been we're normal overall on what We

great obviously I our nice we're that were safety and what I Company to at side. and work missed may COVID, health as when expect projects side, the commentary it certainly. from look -- We've going there mandate we've for client And the we've given our look probably on, and and good Canadian we And far that through operations, holistically. we're it, think and on a we two be had Yeah. got as GAAP think say safe. at of right there up going in affected in every fully to these most electric the the employees done we're around and and on to shape focused And and safe started No, we it are I have I great with not they're some any we've would operate us forward work with years. the geographically plans to day really through or them to be make on yet sure mitigation

Thank you.

Thank to time to you, one please of gentlemen, additional yourself question. questions, ladies and in interest the limit you accommodate we and ask

from question Thielman next is Brent from Our Davidson. coming D.A.

is now Your live. line

questions. utility terms in maybe Hey, to thank of you're follow you. just for want and taking up Thanks just underground, what portion of on latest I give gas the the the greatest business for seeing achieve programs you among can forward. going rates Do of last years think going still bit you've the customers modernization the portion seen several growth that of a forward?

-- equipment the what Company. for some like focused the very can it that's we underground. of the the the will some go with fully highest business performed be mandates and be stuff type we're But term. to segmentation about whether the going gas some worried coming Electric, of want cast-iron mind, long the replacements. along my like on like And from much around seen really hydrogen gas is We've business type. We're operations again impact most our really We people the great portfolio. There's back I profitability people to methane of gas electric in on leverage release, we're the In on, to field with underground not consolidate Gas, it go and we a I are Telecom, underground our in the part, we're capabilities going to utilize and like I'm going it's say what do. with If carriers, build offices, really electric. standpoint. as that's

So leverage of we can the level, it's the lines. operate margin throughout which driving our field and capabilities Company properly our our we on, service it the portfolio focused do is that's of whole. is what this If at

Thank you.

David, from coming live. Thalhimer now is Adam line question your from next Thompson Your is

still and CO_X hydrogen actually industry Hey, lines less that good Do with think guys. there's pushback? the morning,

the think you think dynamic, working to complicated load a with going stages, we it's is just about green is hydrogen. that There's a we're the solution. hot. and whether corrosive, of say go would everybody your different. especially It's and And it, to transmission. And it's it when curves get deal And we're It's I difficulty hard. burns just I a have -- part big without and that the in early it client. load the grid, regulate we the building interconnections that regulation load in is the

has be underneath it's large and talk we it While build still to projects about lot, underlying very, very to a the robust. difficult

get you lot can you a a lot do. you and other so And of projects of that things get smaller

what as top, this trying do build timing So in is go thing. transmission state just a just on hydrogen to accomplish it's going think into their piece as renewable the to and are we're a of well? transitions utilities to stock you I It's going

Thank you.

Our question Sandler. from Macpherson Ian from is Piper next coming

now is line live. Your

inorganic Thanks Duke, little million following heard, imagined Blattner. think quarter-to-date might that the [Indiscernible] a in. bit. $XXX me tap for morning. had I I squeezing Good I strategy brakes of

DNA targets are backlog a on Quanta big merits we Blattner, more thoughts evaluations But maybe short-term, on embedded really investing and you really, curious versus probably part pro-cyclically, integrate know that's and hotter, your the what of well. of might As there's things just are the more does now that not I and your hotter, acquire. case, risks risk

So go-forward your thoughts might on additional for just the cadence what look Thanks. acquisitions. like

but they very made and good we M&A. $X.X out and macro what We've remains and this when that's I've of from at given at we're will billion forward. I degree. we this And stretched Again, We And of we're cash just going to Balance think companies. Balance the companies strong think walk that market need ongoing don't it, fact to see. region in like acquisitions. some pay we along, forum very we've we're a all had great ones good We and feel part to acquisition. And who generate prudent debt. about have down looking not looked manage When and come, we we've been be Sheet are, I I a Sheet. how away not think for some going said we the made never looking we acquisition all

companies well, breaks value not say on believe we -- the that the I bit. Certainly, to going a we pass While are add will we tap to probably shareholders. yes, would are

from Thank live. Andy question coming is you. next The your Citigroup, today is Kaplowitz from now line

guys. Hey, good morning

morning. Good

know that you in higher obviously that space years you Duke, deemphasized of in now. I are talked gas more there traditional about could How in projects projects It I projects you Could there ago bid Is pipeline? couple an the prices on. growth significant like even some you seems and oil of but few think view larger quarter pipelines there winning world? the oil these there a a large do and that are be active days? last out

just construction my operate about in can to profitably. in I We invest not, to it quarter, were opportunistic that in we to today. when We're not that some decided we last continue think We're in we Canada on talked invest. when there. business mind, quite not and

different. billion do So do business, billion today. we what in that's have we can the the $X bit can dollars business a from in a little still We

more don't we have to capital. So invest in

people, that do. we we can things have the We the have

there the look that As certainly we'll and lines the at sequestration up and you on all coming it look the are plays business carbon things hydrogen, it. all and into at

be will take the you now. that's do to to great. We'll $XXX when right guide, know. $X if that risk we it And be not we it'll like have $X we're you what billion And almost have let look but the we're I have. it's them. to We'll U.S. take the the But doing. there on around is anything some stack We there certainly capabilities every nice of entirely. Canada, and then going not out edges can that'll we something the continue one to opportunities that Whether onto projects million. it tell

you. Thank

Dudas Research. comes from today from question Vertical Next Michael

is Your live. now line

Yes. Thanks.

depending more thoughts in margin assuming on I'm Regarding And replacement. new just resilience I'm forth on for a capital T&D the your significant mix? or focusing beyond. Is that is on they for but more the share your putting shifting? -- clients a them, certain could Duke there do that investment to what the Are difference on and are major I'm to utility been former? talking you that. from not budgets guys there utilization XXXX wanted hardening if side you relative Has

It's all of the above.

when about I undergrounding of depends you all certainly seen things two So the in certainly come at are significant we on [Indiscernible], look escalate. where think but at above way. geographically, a there. it are We've Those

cars' the system think to you modernization load the on distribution these I systems the distribution amount that's necessary of mind, it underestimated work what and amount When of on I just and the that's ready does think -- at it's for the these electric just the on to underappreciated. start there, [Indiscernible]. cost system, capital I handle in it's out the get of the on load to my what's vehicles. underappreciated batteries and putting infrastructure necessary of is night

Thanks.

is question coming Justin Baird. next Hauke Our from from

Your is now line live.

morning, Hi, activity just guess you've questions all in I answered. the Blattner, everyone. and the XQ and since. good award for But, my on question thanks

about lot guess, an there. the mix projects, a But of those? for it shift the you coming then projects, on that relative I for things just if update are to how wind like seems And that to of next looking solar wind for mix and shift talked and through, year a opportunities also are any participate lot you I on maybe been outside house that Given that's think trending of there offshore you're there's of at. approvals is

I QX, at firmly to billion guidance And say, the the are the QX of top-line is. not $X.X Blattner, commitment how to we're 'XX. That's shareholder about reiterated got. reward saying What start, nor $X.X at robust really megawatts, to That's billion it. it talked it the we look projects we in pretty certainly next year we looking not just there The in and if 'XX $X.X we [Indiscernible]. and projects. it's there, is in I 'XX When productive. decided see think billion how is we're valuable

mind, In depending So we're client, the where shows idea at as the the basis, with just said again, multiyear we should one good We're that talking them to a you of are a on there. and future a and in awards think, how not we're business. my what give and seeing Company job. it on I renewable the certainly

their that's expensive. So offshore. It's

are boat there had a far we'll a that primarily, have do. this their we're with I good bad -- things around fan. just But as think we're certainly said and we clients at offshore comes on we just I as not it in plans luck and I've interconnections, but certainly, I'm boats but have as have that floor, we [Indiscernible],

next question from Fisher UBS. from Steven is The coming

is now line live. Your

on a there's between it to been about here -- to to that that the lot. can consistent here margins. have want the Blattner a up? on And such I to within follow-up can Telecom electric sure just sure understand What EBITDA. are the have clear you on you've how that when to contribution. relates as make you're margin just segment. set more in the on the side different we Telecom a your our get confidence deal, difference numbers, you to learning the talked there's the confidence that about the Thanks -- in not quick normalize that like curve expect and we extremely EBITDA I a now on curves sounds expectations but And elements numbers, you. make the It and have maybe -- revenue just we clarify, revenue to the experiencing guidance from want that expectation the in of you've no Thank learning

on EBITDA Blattner. Double-digit

we've the As in it talked far about as Telecom, length.

general, in client. the closeouts is, I the engineering and say would some like projects, in and things created then on think, descoping some as clients what their with still far effects serve working I that, We're closeouts end, in builds, the as us

you all just think ranges. double-digits. for see like not get it's some that and for We best we the not seeing in -- if million, I million those it's primarily issue. something to it numbers operating and early the stuff and it, to claw did closeouts as that if think effects an faced we're in are closeouts. on It's think we some you'll that. big do not big But projects get had and back. And ranges. that we're as to will we're XX%, margins of it's just instead and stages in back double-digit about $X late We them It's $XXX Industry with get it's something our long-term into us, and us X% we so far those We're start of I complicated will

closing would end our reached to like of We've you. Thank for floor turn comments. session. question-and-answer I to any over the back further management

First, I every culture our really were they for want what the then in there day. that pay to welcome and the people the Blattner field, pay the certainly of people and them the tough. storms checks. people And do Thank

certainly tough. environment extremely and tough and Gulf lives Our well people the the Coast families lost it's the to [Indiscernible] down there, perform through in

Our like in I'd Close Quanta call. the participating Thank thank guys conference your our all interest to appreciate you you. did of in for and questions your We call. really Services. well ongoing and

and conclude does webcast. That you. teleconference today's Thank

thank lines for this you participation wonderful a have may You day. disconnect your today. and at your time We