Quanta Services (PWR) 5 May 222022 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Quanta Services First Quarter 2022 Earnings Conference Call. All lines have been placed on a listen-only mode and the floor will be opened for questions and comments following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Kip Rupp, President, Investor Relations. Thank you. One moment.

everyone, call. Quanta welcome, XXXX first and conference earnings you, to Services the quarter Thank we a in morning along and results, section This commentary issued our with which quarter our of discussing our can XXXX a first we’ll summary be XXXX at be found website the of Relations press Investor quantaservices.com, release outlook announcing morning. this

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

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

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

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

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

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

Thanks, Kip. Good morning, to everyone, Quanta XXXX Services quarter call. conference and welcome first earnings

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

Following Derrick’s comments, welcome your we questions.

of $X.XX Our strong is start seasonality, a quarter adjusted $X during diluted first record GAAP and of quarter results normal generated growth billion, the off impact EPS revenue despite segment with great of the to quarterly with this each show respectively. revenues that and Quanta $X.XX a year

end exceeded financial XXXX the at support to backlog $XX total continues Additionally, our for quarter which time, expectations. the first billion

at the growth into across approach. opportunities provides near long-term spending our favorable solution-based which our and Day, growth. strong recent new lines, of driven and collaborative service customers trends our see existing visibility mega to continue by The with discussed Investor We programmatic and we

strength broad Electric based utility to business Our safe well from quarter, and Solutions initiatives hardening perform solid the continued driven operations and Power system grid by modernization Infrastructure ongoing and during execution.

the direction, and quarter. in performed well are operations moving communications Additionally, right during our the

the new Further, we master remains opportunities service market our pursue large and line primarily to trends share MSAs, support grid and the provide designed base and materially be service penetration greater to technology strong, gains backlog opportunity this system Our on for or need to severe these electric growing driven levels to electric other adoption and agreements, vehicle to increasing that business. are more to year. events. believe and power resilient weather harden actively We outlook modernize wildfire by continue

charging conversations the solutions Our vehicle about with EV electric Quanta’s continues program to ecosystem. advance management companies throughout

the but work are accelerating are just and and EV EV infrastructure from We revenues are believe cusp beyond. significantly Our to expected charging this only opportunities beginning. are infrastructure relatively year small, on charging increase of

the EV demand enhance load power growth Additionally, need could power of by enable levels significant to for modernize Quanta. and we create believe growing penetration caused higher continuous and the grid opportunity to

Our are risks managing Infrastructure we the Blattner to we announced unknowns performed known segment uncertainties September well our Solutions Renewable the through of these into of during intention macroeconomic acquire and guidance. we Many taken XXXX Energy have were full in for when year XXXX prudently our today quarter. consideration

Quanta’s believe Blattner’s grid strategies proposition scale unique early the market Blattner’s acquire which for positions decades, energy scale and ability and through existing diversity, a collaborate not their we position, utility coming the technology our company Blattner manage leading geographic and We with That to renewable of times The transforms addition creates over uncertainty. of our to transition to that we the also industry. Quanta’s generation did we scope and XXXX. said, holistic solutions believe customers solutions to reiterate value

increasingly solutions are our to in Quanta transition. energy position leader infrastructure the in confident We the strategy as

experiencing performance and growth as solution the revenue with segment, services utility of years executed deferred maintenance delivered and resumes. to the underground up economy strong particular, a which our spending continues recover pleased two capital and quarter. and strong of pent demands industrial profitability from infrastructure in demand In our global and well are are We operations

utility regulated which spend and also reliability. We experience environmental continue solid emissions, for ensure by services, integrity reduce compliance improve our modernized safety gas, to demand are driven to systems, and methane and pipeline

and underground coming increasingly infrastructure the solution footprint as and strategies Quanta’s operations assets business carbon to through diversify their pursue greener their towards continue role to see reduce they increasing utility and for Looking playing operations opportunities. and emerging years, evolving with customers we opportunities

Investor our in drive our City, on profitable excellence, our a XXXX stakeholders. for As clients, for is ago growth we operational to York discussed solutions executing Day in initiatives value and total successfully strategic cost detail during New month Quanta

to initiatives, relationships not capitalize uniquely also positioning. position mega strategic customer Our the market on us and our only trends, but enhance

to believe of will a new are our Furthermore, a solutions. platform through differentiator able conditions inflation, supply today, As which dynamics with challenges collaborate base. clients These face and as chain, risk COVID-XX companies execute see our of our developing our and customer challenging supply these even actions, chain, result, and we during capital regulatory deployment further will we to including the line are service plans, is We and opportunities ones to differentiate their the like expand uncertainties. to and to demonstrates are operation’s strength a not the throughout easy our take to us which for with portfolio believe and manage successfully them. is during company be these we for shows solutions strategic the our resilience, navigate, strategic exceptional believe expect initiatives glass diversity. full to we that continue Quanta solutions portfolio, geographic of It we mitigate its and but times customers. out Quanta we

ability and while commitment of large and to which and programs cross by enhancing strengthens in capabilities portfolios a strong customer’s our capture operate skill and profile. anchored programmatic a services, to financial sustainable remain to are our our self-performed to labor a our We way, more growing responsible spending and dedicated maintaining

in the we as believe Looking support the is and carbon infrastructure reduction stages investment early initiatives And long-term to arguably the are accelerate, deployment. time transition in history. generation still that to most necessary initiatives exciting of energy medium- Quanta’s and renewable and this these

enablement, continue do robust and so. across driven grown Demand expect and and portfolio trends. mega resilient to by energy profitably long-term executed to our is for We well and have transition, visible and the company services technology

initiatives. are in the strategic We confident

We competitive the position we position multiyear – marketplace positive are executing the and our have outlook. on in

a deliver share we or a opportunity EPS to with strategy earnings XXXX. As organic through adjusted a XX% a with and platform the better adjusted the result, a has Quanta XX% to opportunity believe deliver built CAGR CAGR per

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

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

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

and a compared services, quarterly revenues segment attributable growth XX spending in Our improvement businesses. electric from modernization XXXX. due for resulting X.X%, point is to approximately in demand power record primarily by Electric XQ compared power to to to our basis a increase are in of electric a million the increased as XXXX. in utility well first as required revenues our XQ X.X% This XXXX operating quarter on $XX in margins income grid XX% were $X.X customers billion, increase

improved want and from infrastructure a increase to the segment revenues $XXX was the with the quarter, increased Operating One is these margins and for item than largely continued I utility in X.X%, XXXX. higher million higher acquisitions other delays. Operating operations, mix XXX of XQ XQ segment points COVID-related track the previously and were operations were XXXX. for levels required to due the change during for project margins energy improvement XQ remain for well as million the our our XQ revenues primarily of in industrial were of from substantial perform than for XXXX XXXX expense. activity XXXX, communications line segment line margin XXXX, infrastructure on for to mid-single the certain for COVID margins quarter, delivering businesses. our million the our double-digit Also revenues margins due the quarter, but during Renewable due with increase in XXXX margins digit to expectations operations quarter However, $XXX delivered were income the That quarter. slightly in the included which headwinds attributable lower income this our result were impacted year. absent in across the normal income upper-single mention our operations, performance of largely in electric to XQ segment, said below electric XX.X% to XX% Canadian due within XXXX, operations. segment a Underground variability. in reflecting our impacting for digit revenues than due The work X% XQ XQ to all basis U.S. and projects and to another XQ $XXX segment substantial

plan the of investment of value this broadband share Group As measures removed each we of for point fixed non-GAAP March the last in during value Then company. must this market an is EBITDA long mark-to-market at on a became basis, periods. On became company our in continue a The adjusted and I as adjusting investment $X.X Inc., at of the We a re-measured hold unrealized to publicly publicly this loss quarter, in investment as the resulted interest as of adjusted publicly Holdings, an earnings our million and a fair traded which technology common quarter be mentioned non-GAAP provider. volatility company interest recognition XX, investment and for with future XXXX held. the the which traded quarter. investment we’ve based equity XXXX, mark-to-market loss stock wireless unrealized the at of Starry quarter traded per associated the March in price this the

of was record the at backlog billion a quarter. total $XX.X end the Our first

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

revenues the backlog Although, utilities, driven during to believe awards of nice quarter, of sustainable continues earnings. American some and backlog which the our reinforces the and repeatable largest primarily our programs includes be of we North project portion nature by growth first MSA multi-year

of the cash a revenues was quarter flow a with same free million we an driving impact in higher sales XQ due DSO working XXXX. demands nine primarily elevated decrease partially acquisition XX other which requirements projects, of days due DSO to our transmission large Day working operating was cash favorable increase first we’ve in XXXX. first Net incrementally As traditionally of corresponding non-GAAP operating during COVID XXXX, XXXX the The first free the positive larger two from to increasing certain $XX which as measure to five being XXXX to to or for impacting during This capital in measured outstanding quarter capital compared were as has much days flow discussed and increases year-end. to order the negative change by the of of of cash positive our continued positions. offset prior currently quarter impact four $XX expected the activities in impacted of the companies. days. was XQ DSOs and the compared XXXX contract million quarter quarters. of by than In decrease lower lower assets, had provided for total, and compared Both had first XXXX, of XQ first are Blattner, as projects pursued by by the quarter, Canadian of associated amounts

assets the year. over remainder first be and of we contract of However, those during quarter reached and billed those completion collected expect the one to substantial projects the

of March liquidity XX, billion our agreement. calculated and we under have debt-to-EBITDA total XXXX, credit X.X $X approximately of ratio of As as a

of earnings We as to and since our repurchase our earnings continue repurchase continued ability well Through of we’ve our fit dividend release, evaluate as efficiently million and acquisitions. approximately of stock to continuing values objectives. strategic expect program the to this required the that growth following strategic while we shareholder as beginning delever year, and quarters, cash $XX the of date create through support to acquisitions worth potential part over our the programs, generation

$X.X billion with ranging and and our with consistent expected XX.X%. the have unchanged overall expectations change Similarly, with for billion power previous our with $X.X year revenues to now between and to revenue billion our we’re XX.X% between little range pleased underground our We XXXX. for to between and margin I’m and margins electric expectations. guidance, increasing expectations $X.X range to X.X% range between expect $X.X to Turning expectations billion start X.X%

revenue segment renewable unchanged. Our are expectations

with in widened nature supply our at disruptions, the range and chain and potential uncertainty short-term margins and a original However, believe attributable to exist. have deliver dynamics the to X.X% continues to on overcome these above X% bit margin project operating we We to timing X%. are and them level our opportunity

rates the EPS adjusted increased EBITDA for expectations reflecting our we interest on range debt higher in for year, our rate $XXX the our for consolidated strength $XXX million Additionally, the unchanged expense variable of which year. year, and resulting interest expect now to the remain In aggregate, between adjusted are the for million and portfolio.

Quanta’s role has has valuable Chief the leadership teams Executive Business going is is Officer over Vice It Financial of transition deliver our present we I’m Financial to and career capital and in announce XXXX release, organic opportunity guide role of today’s the the industry-leading of our solutions XX our significant please joined my the she partner tailwinds to and strategic Officer For section management, markets organization our found our forward. to additional value a in information, refer be additional through all of pleased to speaking shareholder plan as Financial laid the role Duke with to And our in quantaservices.com. our Chief beyond. of perspective, outlet summary, of which Info the suited been highlight since at in my Day, into deployment and April last end From management behind new long-term Investor Operations, Chief the can service website President organization out the we growth at to of she been XXXX. well And Officer the IR a Financial and as transitioning through disclosed to Desai. years. Jayshree financial of Jayshree me from

for As half our our growth Duke now employee different to the spent of closing strategic lead my to continue I’ve excited longest life the operating incredibly almost financial call organization helping forward. and I’ll to going Quanta, over remarks. back capacity I’m support within turn standing world-class our the leadership. supporting

Derrick. Thanks

roles. condolences that Q&A, Q&A. to thank Derrick and and operations operator a and recognize to going I embraced new and Jayshree that, and role Derrick their turn about maybe team. ability congratulate is It but together. been Derrick forward his to her and call She closely his to With Before the a I’m of led forward great partnership. as addition years want also later. our dedication and enhance a new and this to excited This today, to transition has senior for with for Quanta I’ll working role leadership on congratulations am CFO. continued the our Quanta’s grateful is future targets. will transition driving to to many Jayshree our wanted back I look is for reach purposeful I to look

Thank question ahead, Ian. Piper floor Instructions] [Operator questions. is comes Sandler. first from you. The now Our from for MacPherson Go Ian open

And wanted on morning, were for the across And Congratulations, to for backlog growth your what on over for backlog thought ask Duke, drivers here QX your and relative a maybe postings. accelerated and mix timeframe for growth Good renewables especially quarter Thanks. I in first get Jayshree Derrick your pretty team. your the the foreseeable what and new this your I and the three year. guess interesting underground. was outlook the perspective of what was there to I I verticals is wanted

business, I base – we Yes, thank portfolio do we you. When segments. a we across all look it broad look saw as growth at the at and

gas, don’t company well our we’ve company bit, continues. the and continued stopping about base backlog we believe from we to lumpy I do the the on backlog renewables really help Sometimes MSA business So good will position the calls a continue on And a a see both that as to electric daily grow. but see growth of EPS grow, is as within the growth can on the segment’s on how talked a I inbound continue in basis. And and capital spends and telecom, way? programmatic

by. So stand we

I And some flexibility Day tariff well, think terms sort given of portfolios we for year, solar, the bookings of and That’s around of the a wind this still REIS storage, in mean I year? maybe. on the – uncertainty. cadences have the wind but issue a a probed part? a front a I half fine. towards as much in this operators CapEx bit guess the Or that little is large flexible their maybe air, in to the of spoke of rotating Analyst is up the tariff you at seen maybe And more very side you’d developing the my sensitivities across at in surge misperception

out mean it’s tariff commentary I the and valid there. is

others segment some in positioning really us solutions We transmission different in – to Blattner. It we customers bigger like When the well. gigawatts to that solar. which the about still about in megawatt, type of our and the than can MSAs the can talk company. same. all like So address larger we is the does megawatts, larger batteries. about of scale these we let’s gigawatts client, customers. we flex we and we just talk can to as can We with allows provide acquisition, collaborate It’s much us change have talk – it. puts ultimately projects Blattner, the and than it the The markets. it’s a wind. much the We It’s our with flex our position It of flex

who positive the think been positive is. – – out. a back continue solar positive And So the times incrementally air the markets. existence, through many, due We that collaborate be continued up things – memos ultimately as the about and happening. we’ve is is said, we I who to to tariff. are provide this do That news to we’ve it’s many got the to believe transition continue this in energy it’s pandemic, of client, we’ve company’s in Blattner solutions incrementally been And come through through that’s saying those that’s to we’ve and we that with look,

well that Solar as wind batteries. piece of will be big a as and

XXXX would you said build. kind go is the demand and of movement and that’s anything solar any have So would long-term, into outpaces XXXX,

So given the better. by on tariff, just to the continue we and we’ve future XXXX Blattner by is stand stand guidance continues that tariff billion our and get standby with – without $X.X a

All perspective. right. Well, much. thank Appreciate you that very

Sure.

KeyBanc And our from Sean Markets. Sean. question from Go Eastman next Capital comes ahead,

for my Hi team, taking thanks questions.

appear year start to more you relative that year. of nice guidance. schedule intact, guys ahead So to running full are or the It less that does

from you So balance what that after rest I is kind to variable? know you strong should having it it How of would first Or guys more of that quarter? now softer we that? can cushion the going of hate this one, are that? consider this year? away but Is Is take we the or the year more the frame

our see. certainly take that three guidance as we always, things approach regulatory and nature was with and and a Sean, I think impacts that prudent a months some year to we of into

So else, it, out and get hit stood prudent a what right the everything by. we we And beat the raise there’s opportunities of it’s it? it? on there do we’ve like we into, our to approach well. Can supply and striving in range it? down to beat let’s let’s down And we But there we it I it didn’t believe want the step guidance chains to factors middle We Are to guidance, feel that we to Should year, there’s be I beat as took number beat middle. thought about Yes. that prudent are that prudent a it. out that the control this. that out hit just – we for there said,

in pull bit I like well to we and think where as half. out the to the later sit. strong a nice first it’s as strength have second come you had and do but I a quarter, again, from So some

third our fourth backside So it. biggest always the and quarter, of we’ve quarter. got to deliver It’s on

it it need or sets the power should And we will. believe earnings where four that’s next So three I months, is. make over sure bulk way the the of and to it that

look perspective? and for from over there’s Thanks as timing into you’re noise Okay. what year, pipelines curious next and balance And a out development solar some you but I’m of the CapEx clearly, this there, sort around of pivoting you Are months seeing XX just Duke. evidence just even to anecdotally, year that, be wind that seeing that’d those gone battery? the would’ve into toggling T&D capital are – of there kind interesting? over that next solar are XX, seeing dollars you What actively

mean, any they think markets, great pivot in I place. to I of if we’re those a

is So those why to this. and our says the growth pivots flexible with and T&D forefront and infrastructure be this flexibility the allows the your allow our along are to who is And as we an we as even us about megawatts, it much client. that built and scope transition, extremely company like continue renewables, of we and a in what say that well platform, gigawatts acquisition we energy growth the believe Blattner the as commentary exactly in puts us portfolio really environment the skeleton

client. full need and just the deliver glass the the in we us for said not is to I to the script, solutions As

turn Thanks, Okay. Appreciate I’ll over there. Duke. it it.

Thank from Andy you. Citigroup. And Go comes our ahead, Kaplowitz from next Andy. question

mentioned, Or Duke, you XX% up? customers really increasing step given just quarter modernization. a you know range? of us material your sort your the into organic Good grid seemed where up MSA are in I all like that within that growth electric color Congratulations, see been. spend But and more of environment? morning, Derrick. more spend pickup give in general Duke large It U.S. ramp you is the one just transmission level to the this start everyone. their your the of their spend you’ve power of on low last in from contracts, drivers a can existing did project quarter

we in discussed is segment. renewable the mean a quarter larger project I last

So you it’s a year-over-year. overall XX% part of organic electric up company, if it’s segment. growth The not the at look basis,

start treated will I with do sustainable? good possible a got Do the organic about growth. that we we’ve rates rates doing No. the talked look, we talk company. growth we’ve are head growth. believe the That about right think about we XX% how kind things. I said, within of And the growth think still we’re And on So the a be that’s

those through in that safety spends field. allow field, this young some And with colleges have I kids way ultimately meaningfully and We west you can are the mega capital we collaborate bigger. prone MSAs get talked continues We as in that that the put electric in the about out done think We rates. and the records, company – I up we the do will the things the the the and to it as us areas. in growth our organically around grow just allow hardening the on in see down storm the getting ones client to way it are think west, the EV, there segment, trends coast us well the work over our

capital budgets. to try a with their client So we’re we to in a good on continue work and spot

Duke, of customers. change a seem X% that you supply chain renewables to – to had a X.X% modest environment from context – a X%. for mentioned, the some – in like what big change like doesn’t you you only And your margin seems pretty difficult It

the of class I margins level. this achieve to you’ve in keeps about of best what talk you that year. confidence margin, those about So at you Blattner being talked maybe just sort confidence maybe of keeps sort sort that there level high about talk and but know the levels just of and

shooting And of we in can the the I I top we’re variable. more gave – believe end think honestly digits mean, operate and and for when – it strives we’ll. floored double we And over we numbers and X%, you to to margins and we the stand company really that. it time I X.X% by those beat

do but with I I and and a supply the around makes we wars terrorists believe the said, total company us verticals chains, chains through, in understanding that it times pandemics our as ultimately mean, still cost working that and we’re in So of we’re unprecedented supply of better work projects.

do differently So sequence is ultimate had have, but are. do than we’re what the do clients make on – said, with a the we’re chains. client ever the to glasses us as That’s sure things supply we have customers. full, who that to that’s believe success our to work for project that trying we I with said, We’ve working I the and differently,

So what we’re doing those things, I we like said.

Appreciate it, Duke.

Adam. next Go our comes from Thalhimer Thompson, Adam And Davis. question ahead, from

Hey, good the things see there you. for in high the margin me was go, was on you the that underground? with comment Derrick, working first Congratulations, to to guys. quarter guidance raising of stood Jayshree. underground. the the that? enjoyed year one Can morning Hey, operating And in to out margin you any for sorry thought

first Yes, were portion quarter, the uptake, I over the industrial related to of I has been in of mean, anticipated, and underground biggest an COVID see years it. we the few pressure portion we’ve the mean, last a right? going

As we came were past XX, we largely going be we that. to into anticipated,

in seeing segments see upper longer XXXX. And typically the the the quarter do think first further a work there, our improve feel specifically all side did on can in up have comfortable. coming combination margins at but of We our contributing. as some the range underground towards we for the margins You’re Good strong that nice to pipeline that minds typically the larger And industrial our and to X% of digit. that – well, more term When continue underground most quarter. lower about group, then in other we in see performance. that we’re single of continuing

but being that Derrick say said… going also to not want anywhere, I

call… be he Well, won’t on the

time. You a worked long never We’ve know. together

start in say, So we’ll portfolio said, would we’ve company underground, get And said doing leverage. commented be if the the on of around. that he’ll That times. we’ve it many talked operating about more we I

if gas to through leverage offices you’ll and that see margins, your because continue field, to the in on – striving operating to we’re upper the in get digs, some you’re and come on electric starting those We’re that’s that of for. see what going to single

about Great. talk I’m other acquisitions that M&A struck thing the ever I’ve quarter. sure just the seen me you zero your not Can And that. was then outlook? in

there’s family businesses you all ones lean inquisitive. always quarters – fourth so in. at we’ve to time. look don’t the in five, said And about believe right the again, we’re are quarter, I have think – I the it. see companies, think we probably we We We nothing have it I that moves. that

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Thanks, guys.

And Michael Go our Research. comes Vertical from ahead, question Dudas next Michael. from

well Duke, morning, Kip, done, Good and Derrick.

you. Thank

Thanks. the through And thoughts, two the moving better? high and about working certainly Are pretty quickly. natural maintenance Gulf Duke, of are deferred of of opportunities on they like activity start in start that seems as what good Any the issues gas accelerate feeling are a some to in reading abroad. prices and alleviate. measure on and your observations we’ve things they LNG on just some backlog And the again, to lot what should activities, Coast given industrial one been much there. opportunities? some it then communication the here side, the customers the Are side, XG workflow of

was of talked really of it XXXX, industrial Mike. robust. about we it they It XXXX XXXX, XXXX, base, Yes. came when in Thanks XXXX. back was out kind and before, The it

on you’ll that plastics so opportunities There’s as in every along capital well the type projects think Coast, coming the things LNG, side. Gulf us those around projects I lines big for numbers capital of through see those really for here. our one of some provide coming as industrial your all that service online,

those. about market the position And great all to and these we’ve us changes. as opportunities I of a quite that said think well team we understands markets take advantage excited we’re really along, management So do have

we and little our with that we We and even really that it. the always, our as at well of like work stayed the opportunities lean work degradation. We make people, a when causes do. them capture which we we’re it see as that bit through positioning sure So we space, in industrial margin keep as

high The market. I robust carriers around As band scenarios. daily. believe we around together far it’s changes high working do bandwidth more see technology communications, a – type as fiber,

that there, I as market as around vertical others. the working drive think future, many well we’re And We’ve the on so capabilities. or our do wireless ultimately that foreseeable will certainly macro for invested

here by and talked where we $XXX we about that are the nicely, telecom, stand we’re sit we start year, going. improving. the million like plus we in for this So year nice a margins Got

Thank you.

ahead, comes Thielman And Davidson. from our next Go D.A. question Brent from Brent.

well, Great. the XX like best question in the first jump first a me as backlog month total Thank I you. All quarter-over-quarter. guess, looked Derrick. business. It looked the the just underground just big on like to backlog, –

that. pick driving wondering capital into to you read Did there? some of what sort up projects, was Just anything longer-term

of we I as advantage the list just that some about in well No, side talked as pipe I of, came on large some and We before Canada. mean, opportunities took that through our to there base on do segment. And think moved and continue I in our and upward the backlog do to industrial so general, grow continue in we’ll MSAs. that has it’ll

hydrogen from the among it talking at more affecting mean, a and more play kinds in that. come you like of slide could Appreciate deck but are that? And mentioned opportunities per and gas it what just Okay. role do I that blending Duke seems about the it, terms of quanta? utilities How least, utilities.

I right mean, we’re of in of front middle it. I the that think in

opportunities on. see is there we fact, In unique blending going But some early. it’s there

our of blending Canada, some seeing other there. on We’re around announcement yesterday an partners one in and saw are hydrogen that there I some buses out things –

So you’re fuel starting source. that a to see as

the as in solution transition on I that. You’ll continue to we’re and continue that believe, right of of the front see part –

said. I So we what like

you. Thank Okay.

from Riley. our question ahead, Alex. Go And Alex B. comes from next Rigel

Thank you nice and quarter very quick Couple gentlemen. questions.

margin revenue the like? year, can couple either, profile it quantify as the you relates of next could look over business EV years? of annual over opportunity the to this that stations, And the First next what charging

It’s see couple to things, – way on scale, because station. exactly working what charging difficult for out, the participate voltage that we scale larger high us we say to want charging the larger is one

point. something I’d drive is, – I’m business, the it’s it So what will don’t not number. not dollar number not type at – It’s to say this be remiss I that that is believe. billion a

I behind change on ever security distribution the said, it see. That ultimately many one probably ways the networks. believe, will we’ll and see grid So that in drivers rebuild bigger the almost and of the what’s on it we’ll is,

loading moving back As on the well your load as networks, also when and transmission back start throughout. you distribution you’re

on incremental as believe we our as fact can do way more we’ll is advantage I But program that and take what see well with batteries, So, the the so. we of scale OEMs our partnerships as the of to spend we other lot. the capture size us it much but set up can, things charging programmatic do that as well a we expense does in which as and a like way,

quarter now the it as relates to then business, how backlog and think so? telecom how And changed last And backlog change between you the has or could the year-end? do over

we we upwards the double-digit it we we’ve to backlog. It we been and of we’ve look up a parity it’s projects are need segment, The bit say margins the fact on – said we the with weighed due and and I will. about kind We’ve have I’ll ourselves a taken started, When quarter-over-quarter. paced again, margins markets larger got better. in obviously we to better. and We mean, to get basis before, down how what backlog at to some backlog electric continues go-forward can how that prudent some it that.

have So in way. in in advantage we obviously, that and look some and technology, opportunities and cities our that the a we’ll that take Star excited said, programmatic dense well how capabilities of that investment in we’re at we’re as as wireless about of the now those that we

to backlog it’s to ago It’s grow flat. is into $X.X billion, certain. today year-end, about year continued throughout Against but from relatively a for

you. Thank

ahead, comes Cook Suisse. Credit from from And Jamie. our next question Go Jamie

electric lighter. in Congrats in but can any the me, margin you about know talked my Hi, and way struck that? good margins then projects Canada on you promotions. question. COVID, it also And little maintained power morning. I guidance quarter that. and guess The quantify I you your first were a despite

of you. better the how way of I underlying expected, the utility business, can lot stronghold, stronghold your second, the profitability a underground which trending rest happen. profitability if the is Thank I what And what’s So you versus parse but understand expectations? of had then that than – and trending? is doesn’t the than any the usually business better out margins

Jamie. Yes,

had anticipated in that the largely quarter, we in dilutive guidance, right? have well, leaned about into that we overall, work. The margins X.X% overall. And we electric That came than to So, around lower it’s margin those being original Telecom Canadian by did in our power when influenced talked but about well. U.S. XX% effectively still were COVID dynamic the a projects. double-digit. is just quite two that’s But slightly although in this that

have We’re to type reason conservative Canadian the We trying to feel it. weather approach. dynamic take we but have every recoverability press solve, a like there, is we

X% the single-digit You the reiterate our to about Underground, year, had risk COVID two margin but for saw always the closer year. first dynamic the in remainder that quarter of coming that we clearly see a group power. solid averaging but guidance honestly, actually, quarter was would in associated quarterly a quarter, to that perspective. to overall first giving it, margins be said, into getting board, for projects, we quarter ability profile thought electric for commented back environment, lower second, the to range to dynamic even those a with driven annual able underground margin the to electric for we through any that relate across of that to to projects. year. out it of largely overall against us as the margin nice that into saw you Canada in the contributor execute power to Industrial ability higher kind the have quite underground the well. the the the like to associated It profitability type And that seasonality. for that’s type confidence doesn’t those that that group only. implicitly continues we’ve of But confident be almost that third profile the really a the Continue margin by breakeven fourth low and it’s seen a with are two But first

you. add to a little I like to bit

for certainly work. on-boarding just few re-sequencing don’t and also bit, on-boarding year. on ourselves the do the your go-forward see It some a but set up of We’re people, basis think rest I a have that and a we nicely quite and

Congrats you. again. Thank Okay.

next Sachs. Goldman from And our ahead Neil. from question Neil comes Mehta Go

the on promotions congrats morning in Good the here. quarter and team

was The first to conditions. related question labor the market current

As higher activity has couple start for still wane a scale to an it your the labor industry And in of competitive capability market you labor it the headwind ability next relates advantage over to pertains as elevated to competitors? how is relative to up to tightness Or as Quanta’s own years, it about do your some you have think broadly? advantage an then of bit?

X,XXX year-over-year I up we’re employees. mean,

it. ways. faster getting labor and separates but we train, cross-skill like many core our for to and we investments in So, ability the with like the training, that think with invested have into only I this what what fill safety that and we’ve labor, we’ve of in business. us allows done to colleges tight so the I really significantly do It market not us which our the scale we do is a the It put

spends. our in We’re with and we grow on I can them work our as with the do good shape. markets capital see clients think And we

just the now your spent – has cultural the The some you a about achievability But effect from around of go-to-market been into customers to ability it brought the uncertainty financial has It’s more solar comprehensive talk development. couple Blattner. as months a time feeling you’re portfolio. your a to been We on about around And is talking perspective. it about that’s since your in have could targets how well platform? integration, impacted follow-up

a that well we’re where as reiterating you forward heard synergy you how for war, the many, on many of guidance moving We on Blattner allows the results I the years at around and the made basis it very as come. maybe in a when the we’re different better company. and pandemic, everything see have you’ve you forefront the and and Blattner to transition and – go-forward look sit us to think transition. in us conversation hear at the

many renewable us take and differently it’s flexibility, that regulatory clients, everything much are, want and and supply a say their markets with in of ability balance be effects. could I plant I well you very We culturally, and can to made megawatts, scale, on ways, better certainly Quanta flexible. you they’re would dialogue and think as to look mirror hype differentiate solar our see – they the in gigawatts as chain you’d from think

that different even that’s were discussion. a the than Quanta provide we we It’s to something better before. So client can that separates

Thanks, Duke.

question next from Noelle our comes ahead, from Dilts And Stifel. Go Noelle.

Hi and thank taking my you for question.

if maybe to labor, just just into have you I’m Thanks. majority the bit given But comment you perspective could ask trend your But seeing on perspective. visibility revisit sort you to those visibility particularly curious you increases. if know you’re wage what could from increases. in union wanted labor from go again, of of and within back a that a have a into I First, little And a different terms on wages question I T&D. the slightly electrical side,

can look look we do different to so relatively other We upper And long that ways areas, that’s some Canadian in what plan And the and that at this across when see you’re we it more of that’s we – point, have it we in well. and to resources, labor. at would it, say seeing the but as X% see and X% board, for below many think end a do X%, type conversation. ways I increases us ago certain a allows to for time see I usually coming resources that what at runs

to on So Quanta, it, in It like. our markets go how differentiate differently a and separates how basis. are matter ability work the these in that will we the field something plans work we go and forward we think about think

Sure.

to And kind if are I’m already like – does I of third of great. in on and of about your if more what think get then I to sense because – that hit recognizing Okay, guess pause, your of to quarter was how is of do Blattner. better all quarter guidance trying the a fourth just trying we’re delays I’m the see lot kind we some the commentary just think a on projects what about today. the the put channels seeing of talk have happening already as pushed you’re Thanks. if for yet they’ve of the that just a don’t that’s the timing year? you for the of of out this bit on comment could sort kind talked think about you’re Could about and projects know outcomes Group and you looking range now sourced. delays MYR little if been amount right. potential about to what I the you came if seen work that seeing

in difference utility day. XX, on the think is, I’ve projects this type a doing said I type given before, scale is XX No, XX, projects, we’re

type that amount couldn’t we if So to are customer with, and work broaden had think have exponential can calls of we any that our we the same really where certainly other service we And we have of we certainly customers a out customers. provide without – the our certain base gap. of inbound if

good feel we about good about at. So we’re the guidance. We feel where

it of get We to a solar, just have up is we all battery has a to we win wind, Blattner segment and than transition, the have ability believe much battery made good things. as not point. largely of really that portfolio, And continue impacted interconnections, we’re in solar or for kinds Quanta and long-haul spot at this or to more transmission this

it. Got Thanks. Okay.

Hauke comes ahead, from Go Justin. question And Baird. the next Justin from

here a jobs. steady all you. to up talked orders Good million, last curious for The and it question I was been and from But Hi. $XXX just congratulating, pretty on you since balance quarter the I’ll morning is about unapproved we’re has Canadian Yes. Derrick, I the million. change that’s $XXX ask guess

guess I’m year guidance million cleared on is of of kind much curious I million year? the conditional $XXX as today? the balance for this what’s your $XXX just how So And those then getting to of

Yes.

about DSO. stage day game two as these four million more to the with to little the So to in disclosure. just includes at you’re the to an a reference I to of this grow these making impact balance XX-Q these made an specifics going changeovers $XXX reference aggregate to unique than five disclosure, bit, associated aggregate the is exceed disclosure. number That is the That’s the which projects being – projects. it

bill one but the majority So those then all of is balances, that it the those be completion, the something as and on is even is of actually and believe it do settle that substantial XXXX XXXX of XXXX, balances. looking will positions we that. we’ll reach is to project not looking tell be that I’ll And That build. we’ll that of you continue other project to within into

commented of think you’ll some drift see guidance. I be year flow part to is included XXXX that as building flow flow to of that one the to look guidance that cash the into So cash the as that cash that there. we Relative – for year, I this we the overall

pandemics different things Yes, we’re things, way Canadian way customers were longstanding the the when both those the those as the build, Duke. building well. on pandemics. I them. say of we all start, with impacted would think that Many we at projects, on projects, that such about things the working milestones, they it, The certainly that anticipated as your

So projects. ultimately, working that the We be on continue collaborate not to we’re flows I with and issues good that cash both things with see there of do we’ll believe and nature. client paid get will now any to and

Okay.

backlog. guess, Can I I helpful. is that solar of but $X how the stands one of is moving today. of can kind of That’s of much target, have and billion renewable Okay. is other the you this Just a How it any I breakdown here, is give projects? battery? wind? on segment the know quantify the you much of as How color that much kind

but not. I’m can, I

I proceed. And so one is, what say to limited notice LNTPs thing your would your about that, like

the backlog so forward [indiscernible] seeing the a unknowns you’re lumpier, many too do a commodities I believe be think I we’re areas of basis, bit a bit stacking be LNTPs in your little will because of on go exponential. always but

in LNTPs it’s awards verbal over years. much negotiation is larger been many than exponential our So

you XXXX. going and go it’s doesn’t So XXXX, see that will if go to XXXX, it in in come in

in we ability reiterate the guidance. our approach sequencing dialogues and on with it’s with XXXX so do customers just all that many I XXXX And work do How in there. working how way we the ways. We and – more XXXX scale, than how about is move with to it. took chains, fantastic. That’s XXXX we’re our building still to the think learn we’re with, working them start supply further reiterate at this is we And see variability, about it’s more point. So

lot. Thanks Fair Okay. enough. a

Fisher next our from Steven. UBS. comes from And ahead, question Steven Go

then it enough this very your when might Thanks consistently, maybe on clear the XXXX factor to or role within To It to that a you renewable the uncertainty? seamlessness? you from and response just and seamlessly Blattner. you I on is mix supply extent, if manage shift it’s is in you needed side. change add continue uncertainty is supply terms the congratulations impact related is situation of solar that changes curious, within is there how your varied Like that seems to the lead do customer – discussion needed. fairly my to is time the could guess, wind, I XXXX with think guess the it chain the more more be, into XXXX? this base this I’m how chain And

talking primarily Steve, about panels.

So besides you different do plant balance panels. things of there’s can of a lot around

do So kinds of the transitions segment. different some T&D. aspects them many there’s things – of of energy into of moving, in repowering, these renewable when is some someones within even space We moving it’s all can the of and it’s re-sequencing, some

with been So we is felt supply making it what’s with we the to And well work start, ability XXXX, gave bit the the capacity, said had did. sure as Blattner. comfortable XXXX, sure a the XXXX, it work have like three guidance. that would concern that in bit that our deliver. as to felt pushed chain ongoing done was to push we down when that into we is It plus We that the anything a and the from we concerns, client on from that’s we have make – gets bigger

every the have ones think we supply do bit We ability reiterated. it’s are get in these for transition clearing the don’t into ultimately up. renewable want short utility to a to of clear said, can’t to for as incrementally go of the it, to And things you And coming some it’s which aspects, that that many So term, we better. things believe are gets crystal developer believe chain the clearer. the every around without day, that and weeds this is that that that around you the energy, I I in ways, see energy, customer, on your nature. get your would well out. And where the way The want I tariff it’s certainly geopolitics things but little piece work your a memos positive as through that because of do that up of that tariff.

and some is it in see there maybe the customer big gas? there’s carbon Is your U.S.? like momentum the the building it things on oil on building is pipeline it I’m Is seems more biggest it then this year? the capture? And discussions? just Or on the where Canada, it piece it. business. based earlier traditional booking of is you mentioned Got pipeline Where momentum the curious piece? the Or opportunities you the biggest forming

of I cleaner use the different a client and aspects all how going – we’re LNG, way with fuels kind that through that it. of think those transitioning the working on pipe carbon-free, view their way the to they we’re they’re to

their So bit would I carbon we’re a quite on profiles around working environment. the what with them consider

see So you will carbon frustration.

You’ll blending. hydrogen see

that. all pipe. be along, We’ve edges LNG on said the see You’ll we’ll it around

Later portfolio itself, that. is would side opportunities, on the we’ll consider front business stay would well we’re But I certainly something some of our going business, I today. type I LDC XX do business, our we’re doing Canadian has resources think consider Lower gas typical and indel. it over way industrial doing what what the and that moving the Our is well. that

pleased. we’re So

you. Thank Great.

And question comes from our Chad. ahead last Go from Bernstein. Dillard Chad

Hi, good morning guys.

Good morning Charles.

the to So I call. on earlier that go want opportunities you to about talked back charging EV your

approach it customers charging, bit then of broader understand electric you’re expanding that does terms to versus just your little that compare just beyond customers, guys? how guys you these the differentiated you I to have that margins And the typically want for approach lastly, utility So versus are in imagine service. how your And taking is a And just I programmatic go-to-market EV with competition? then power segment?

look into your theirselves charging OEM your certainly or the said, you That signed starting When west battery charging you’re EV bigger charging, And things battery quicker. do as trucks, see probably, from or you’re batteries all at either the to to OEMs much charters early. internally. towards as starting we’ve Silverados. the GM mind, in partnership I lot from need move done your quicker the start on a see to business, vehicles, it’s move anyone and than my manufacturing, And a with to you anticipated. a of stations to as stations such high-voltage go We’ve trucks, heavy-duty think

and the grid on here. in So front which and that the and is for believe do ability It’s on nature. on work we’re very we infrastructure what that provides of itself, we is build opportunity said but close thought it our also station exponential not I’ve utilities doing on to right coming to before, the even how the what something and backside sit I significant only out charging your of, charging believe they’re with than is quicker that the OEMs

so city, we one-off every do – projects, doesn’t make a it So opportunities project are the couldn’t go there, you they sense. smaller in how

So a with for country, you those underground us program have. to and the around the programs to need think it. we projects nature in groups these And really large we density really smaller able type have where that to do I scale do we’re are

of advantage of sense we’ll and lots So makes us, markets. that those take for

drag going big just back then Canadian of And two the projects? change second those for question, here a to a How projects is just Great. with orders. margin your baked in guidance

took just see a Canada’s projects, way. down contingencies, Canada look lower you a to been when anything. obviously, to When something not more flows. It’s that that’s because mean, is so approach It’s it’s the cash profile, think it’s than don’t And the but than I we those it the always – margin need I from drags at you we cash bit. execute new. that Lower XX it’s prudent said,

margin perspective because margin in some just this COVID aspect what unique of Yes, projects and projects from a the projects we relative gross is conservatism those nice of which bit put dealt versus the quarter with projects. broader see happening the but are impact, to Canada little profitable a we the themselves in new what’s pressure

pursue to We’re those resources able Lower as well. in XX

Thank you.

it conclude I to like any That our remarks. does you. Thank to over turn now for management closing Q&A. would

me for last six really bounty in CFO, as be Derrick by thank his role. and Yes, to new it I as a years want partnership for the standing will

with So I’m and a do job she’ll team. Jayshree’s and to exceptional forward CFO as looking a working as great

have and and basis men Quanta. they solid management they’re on daily the a women We in field a team. and doing The what

So we’re excited about it.

This interest conference We’re call. We in excited Thank participating questions We where they in appreciate for going. our Quanta to call. you do, want our and concludes thank you. I we’re ongoing your all and appreciate what Services.

Thank you. participation. for you your We conference. conclude thank This does today’s

You may have your lines day. at disconnect this wonderful time, a and