Quanta Services (PWR) 31 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the Quanta Services Third Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Kip Rupp, Vice President, Investor Relations. Thank you, sir.

begin. may You

our Relations can operational welcome, This XXXX and a XXXX the morning, Services results, at Quanta release Thank Investor Conference everyone, on website. commentary financial and Call. posted Quarter the which XXXX quarter Earnings outlook website our third Quanta's expectation Relations also summary our quantaservices.com. issued found This of section Third quarter and in announcing you, third we to be our morning, XXXX press Investor we

While make XX, call the community. prepared investment questions will only speaks and largely is brief management for this introductory replay today, institutional forward-looking this advised safe you're intended therefore, management's call. This Reform or morning's be operational this call intended assumptions Please time-sensitive as of remarks remember call, that remarks, replace XXXX, commentary time longer any the during allowing that or additional performance including and October no of information as information financial Act from from of liability include on not future harbor do qualify relate historical to any to solely Private may established about expectations, or by events XXXX, will Securities accurate or intentions, reflecting the that financial facts. information Litigation of under current and statements to statements beliefs the reported

risks, uncertainties may expressed control, that those place not Quanta's differ as assumptions reliance involve on and should implied. from undue certain difficult statements or materially You results or to these are actual and beyond predict they

comparable financial our Reconciliations of information regarding historical and their measures certain are additional statements and non-GAAP non-GAAP to forward-looking for these most and earnings documents will commentary. operational release measures. and to in also financial Please these financial we present our While measures. included financial financial measures GAAP refer directly forecasted

and follow I website. With e-mail the the channels quantaservices.com of Services Quanta releases Quanta of to information on up Duke? to on Mr. like alerts now Investor IR the CEO. social to sign that, President Austin, and news our please and would receive notifications Duke turn for and Quanta's other Lastly, over through media Relations section call listed

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

Before third would response on Helene. to quarter I our turn to to comment I Beryl like results, Hurricanes Quanta's and

and third During in deployed Texas significant the in quarter, Hurricane Southeast to related Beryl for restoration resources or Hurricane power assist we the Helene. and efforts

crews power people our events. ways work during But events, other During employees get the are is the than that to who these our more often first restored. these are responders well known do devastating help need not in

to For mountain shares, cargo medical live example, and law camping crews rural safer response of leverage and more our and various helicopter Quanta more. than Carolina, organizations pet water, deliver communities XXX,XXX local supplies, stock Hurricane with pounds to in North work humanitarian to groups to Helene, food, enforcement assets and including in impacted food,

of search tirelessly perform Quanta thousands pilots by severe Quanta assessments the in support were financial lives more need from these their storms. I others. Cares, their of who much to the and events. severe employees, for restore reconnaissance long and XXX weather these employees recognize These families families and rescue also approximately thank employees roadway to restoring weather property provided to people often provided Quanta of fund aided power relief to efforts and away also impacted welfare and and want and our Our are many periods work whom events power employee damaging impact for during checks. who

portfolio free number well of cash total adjusted earnings metrics, billion our adjusted other $XX and revenues, including per share of of load backlog delivered as a of and $XXX quarter across required significant another financial EBITDA enhancements million. Quanta double-digit grid of the growth. of a generation and to and solutions momentum increased and power demand tightening upgrades capacity as in for with There facilitate record power is flow growth and building

approach collaborative more than solution-based clients is by valued ever. our Our

and Quanta and utility, the convergence including renewable industries and States being the across energy driven Utilities the adoption self-perform The infrastructure to gaining is the capabilities data manufacturing craft-skilled labor well and which new as at in to to in of and sits build the industries time and X increases power the federal are we nexus clear. intelligence accelerate reinforce by forecasting workforce chain solutions. policies is and is state centers advancing these the our related designed infrastructure strategically to as demand technology resources. And infrastructure, believe critical United experiencing of necessity policies and and are intended decades, technologies artificial supply domestic pace. transition modernize of energy for meaningful and first Quanta's

it while opportunity received end, we for industry speed to our critical integration that have electric improve Cupertino center To to is for to response customer technology is progressing path infrastructure Electric solutions market the provides positive that the well. comprehensive data early, And and of projects.

executing are are on while our well plan. strategic areas And for where pleased sit. improvement, are there we summary, we with we In

quarter including the We We returns. multiyear and record EPS against ended are growth double-digit pacing targets, well with our backlog. financial double-digit

guidance EPS approximately adjusted of midpoint XX% year. the our last grow to over We at expect

liquidity. cash flow year-end levels by free We over of this billion and record year, expect profile a leverage Xx $X of below

coming have better, opportunity for and in Our further we the see been strength end markets years. never

platform built As can I tell, future. the the have our are proud hope execution more even we you for and solutions about of excited we

are believe platforms infrastructure total market. creates that growth and addressable our of for We investment necessary expand diversity decades line our expected Quanta service positioning for

school programs. labor infrastructure increasingly and a approach and the us manage geographies, across is which provides resources and service that advantage ability on as new shift is complexity craft portfolio believe and focus risk Our we energy strategic add important to the lines technologies to transition

us and resources allocate opportunities approach and achieve to and consistent capabilities attractive portfolio profile and chain supply have well improved diversity, and to flow cash the most offering, service economically we financial our believe efficiencies results. our We find operating position returns

over to the about to we Jayshree? Desai, -- Jayshree our few provide your turn call I will guidance XXXX will XXXX then result and CFO, take Quanta's guidance, about a questions. remarks and results now

million morning, share of third revenues. stock everyone. and Thanks, of income million quarter XX.X% morning, Duke, EBITDA diluted or common adjusted we $X.X $X.XX. $XXX.X revenues was This to diluted of reported good per of billion. earnings $X.XX Net per attributable Adjusted $XXX.X or share and

cash and $XXX.X million. we cash with in quarter of flow operations the cash flow generated Additionally, free million of healthy third $XXX.X flows from

of address the maturity us business were that senior we to acquisition of Cupertino, allowing following quarter, our due the in During also recapitalized successfully the our notes October.

stockholders. This growth financial we earnings and morning, record with EBITDA, opportunity to for our cash for Our double-digit capital our earnings sheet revenues ample both for performance with per recapitalization, XXXX flow. investment adjusted an incremental year the in update also flow of our generate liquidity growth expectations growth full organic free provided and profitable and end and of to that year called returns this with cash expectations, to and balance opportunistic a another coupled which supports third us share the adjusted quarter allowed

our strategy, of marketplace. strength our to and expectations portfolio competitive market trends commitment position in end approach business, favorable We believe demonstrate our our long-term to our the the the

of and XXXX expectation in our on our are both guidance website. financial commentary found about can commentary our Additional financial outlook and summary, details operational posted which IR and be

are that, we Operator? questions. to With happy your answer

[Operator Instructions].

line Our question of Sachs. first Goldman from the with comes [indiscernible]

still needs supply a your You chain now bit? assets? about internal transformer source? talk significant synergies of And capability the ahead? you of going can Any that manufacturing acquired Is And little how some there again. there? with the you are a concern around Can PTT color much

that in New a small York XXX-year-old we we in make and did Thank this acquisition manufacturing the would allow to certainly business. to us market were transformer we acquire the going Yes. family markets the It's upstate you. some beneficial company did through that serve. PTTI When We some quarter. things

large that. to certainly with factory us transformers. helps constraints on continue We This see

has not backlog in business Our the longer, gotten shorter.

breakers build both we forward. transformers and and the to continue find with synergies see opportunities move ability We internally as to

So lows there. see. Lower we with We're constraints things that in They're to the are the real. do supply chain XX trying the

position see labor on I have so as capabilities, make a to both in path the manufacturing get from a critical we'll sure craft-skilled can self-perform standpoint to we continue of that good And certain think build well ourselves items. the as

are We're So the synergies there. seeing show them up.

business we can subs build support internally, EPC probably You ] XXX the year. XXX a [ to around

what bought we So that, for. them but we that's can not support

that that it's to enhance we not would our market really will of some some do clients. internally, provide just believe the we synergies to and supplement We that bills whole

give you as big with customers of about talked shaking the timing helpful. the projects. Got out the having us of Can few transmission that's conversations visibility it. you progressing? picture of into a here years are That's renewable next land, And how view for your lay then

the things record 'XX, in mean things hearing talking load I that say bids, everyone the in the inbound, I need -- demand proposals the work, Yes. that from think record for levels year-over-year, 'XX, contract, load in XX. levels I levels to we're would that record market to transmission the the have the levels we order in about record in infrastructure. is we

transmission more We constraints. continue bid opportunities, to see discussions capacity larger on more

the never seen continue better, it that to call, any mean, I transmission we've is generation said believe we ways. many cheapest form in of yes, So large we on the the and business

So country to you and trying do can't accomplish do we in and the without the expedite it. we're transmission, that to need things

comes Truist. Jamie question from next the with Cook of Our line

where is in I a be business XXXX you've guess margins then in the that's Jayshree, revenue we performance we're the guidance, pretty nice think margins guess, X double-digit a raised and expectation. just improvement I'm it wondering will the the reasonable Obviously, questions if to business that the year. to the and the unreasonable for place because with margins And that we you year. I me. renewable quarter. of throughout can One, that's where for were expect finally good made exiting

business Duke sort there for And in revenue just your how any my Jayshree. potential or there? guidance second an change then doing. Cupertino, just and for Is guess then of on the Cupertino update I question, year that is synergies

Jamie, the a minute. it's in on of questions comment some I'll there Duke and Jayshree let

could digits. I seasonality were see say get -- we time. over we did we it, run can look We've it, you they when and business. we them So in have renewables done the it that I up when in the double We and wouldn't believe margins, good. at

So and your first half back the pick you'll bills in half. of slower, it up

that broader However, there businesses, always is right business double in double today, digits. at around business that's digits transmission the

can business synergies certainly that's already. Cupertino we forward. believe So said that. do possible I has we've move we us consistently as out provided going to

get on We inbounds to continue Cupertino.

a us much allow I -- think will from -- much standpoint, participate we as customer us in it's in base greater a business our the allows different way see that something to center data it.

synergies electrification we're we but the Much they're point, haven't anything So business. there. really, show those and up our this the like at into like in baked got And Blattner, they're thereof there. seeing

in in delivered Today, year. and excited than business up -- continue 'XX, about we year year be We've this we're we'll next and our X to next deliver. better just story. And what it's pretty past will see. a see It's Jayshree? 'XX not next delivering. Cupertino for But the years, show beyond. year We're we

No, it. covered you

cadence of you, segment. of Renewable the remind Jamie, Just the

as first half. definitely the than is back half said, usually So stronger Duke

we look next we that the to So what Day XX% year, renewables. we at perform the going way to X% I it in that is in range have into think right opportunity to said -- Investor

sorry, in guide that the has Cupertino for Jayshree, the for implied what's But changed? expectations that XXXX

in guide? Yes, XXXX

Yes, for Cupertino, that all? at has changed

Cupertino range high $X we that you you that if in $X.X range. perform of that of recall, revenue, performing -- ability end to at It's has billion Yes. they're told to the billion the

Fleishman the Steve from Wolfe with Research. comes question next Our line of

maybe organic Could just you it do on lot just quarter, how -- And but look the to a in you're little backlog growth, in a from recent revenue lot the good kind that talk of growth that And quarter? that was you question here? kind the slower was acquisitions. First of why seeing? a acquisition of at and of

Yes. Thanks, Steve.

in you think some there when about around think I so backlog it, was quarter. or million growth the $XXX

just the third think when certainly way of growth growth double-digit if at delineation -- segmentation, at us T&D where about you the of X% it the traditional range. look the at, organically. the the create it's our into in some forecast midpoint we're for the With segmentation you of business, the issues T&D, segments It's quarter

forward, the digits of go-forward the have T&D on organically. that year-over-year we we the upper we So single going growth stated midpoint double-digit believe we'd traditional range. that business basis a at And at grow

yet center Cupertino, utilities The the then -- also data Okay. question, other you really your data of filter backlog? I shown better have not sense hasn't part. said just on for just you when a there up in even but up think in center will then utility opportunity, recently kind it investment most Great. one show plans through the And and your to business. Do that

-- think it. you I hear lot it's mean about I Yes. a

issue to You're see equity. starting utilities

see lot of in. You're transmission years showing today. we their stages. starting now, X it's is a to that from come RTOs if start the The are so up And the in growth thing robust that is planning better

those of think discussions from our I customers. are so from all we seeing And developers today from RTOs,

build away from to and the start to -- have need the time out, transformers substations. months You X XX some energization you years you're transmission

to just now. worst is I And have can start building -- can the that we you think think policy thing So the do industry you sit a transmission here. it's to is that I

So works. sitting that don't I think here

everyone took we think is are to I and rate to not ratepayers, across this good to the have while took moving structures a going. while that the country. punitive little forward. sure rates a make little It the It

so see against moving next of over what starting and an You're I'm excited would forward to decades. maybe tripling the doubling up I at big those consider industry, we're -- X where about generation show pretty the as

early get -- it build And stages we're the is today. of think the substation started all that has early transmission So in to that substantial, and very build I behind and getting started.

Alex next of Our with B. Rygiel the from question Riley. line comes

A here. couple of quick questions

has power talk regained generation in modular you Nuclear in nearing in a about Quanta's First, significant generation? small Can particular, interest opportunity commercial reactors, bit that deployment.

Yes. Thanks, Alex.

be I kind away at interconnections. -- think build going you'll forward. talking back you're decade even us see yes, to it I They'll big scale when I don't nuclear any piece think of the renewables, and on so still plants. gig reactors, a a a see in will be your a us heavily substation capacity, and about you see they're of SMRs bigger it,

it's nature ones certainly -- emergency that we're smaller it an of we to of diesel. Nicor say things grow helps to you'll going I something long from to [ the the versus a a And are need less. ] answer to come in that's if think like standpoint are. lot it see that So [ term, ] generation, going you're generation we of But

our yes, we'll and edges So is as -- for way -- think it but substations us, on the the I thereof. see around the we sit electrification here the be today, we all

And talk has business the years, risk general contracts and how bit helpful. the has you changed? can grown then projects through business about the of as a That's the in profile

the a break knitting. part been procuring linear you what you of create risk, we and time constructing usually risk. think people EPC different EPC, I Any have and down, skilled have labor or invested where stated in. that's you have is our We kinds we've craft engineering, really product here mean I program good or

XX% We the of still perform business.

if So margin there's that derisked capabilities into in know self-perform that critical and de-risk vertical our them really I the when the And and then business. supply risk And many, we having than stated our supply of project. go there's we done it, items Quanta chain we've own the the chains costs in and path our more think it. we

I that And out create have profiles we the of like margin them. so we can because risk

for across of due there's EPC good and that talent see not So certainty I continue get country. the to environment built And going around, that we're to forward enough the to just you'll going see you're in type shape. think fact

comes UBS. of next Fisher line the Steven from Our question with

near-term the outlook It big seems here well, with couple the of pretty dynamics. clarifications clear maybe that is a picture to start developing but just about

Just things. electric of on the side

million maybe with the a was what that shift of revenue happen extra time. in I curious puts of that the some Just these takes can in that stores $XXX that kind resources. and work, just for the for light on segment know unchanged emergency of guidance was

you apples-to-apples? going numbers maybe XX% And the they programs to us are the that are, if just acceleration not growth organic that And then the mentioned there? for XX% I'm to X% think if what's quarter, remind you just sure for can said year, I the those X%. last driving all you that the are nice year

Yes, segments Steve. across we both the ] we Thanks, talked donations movement [ about did have the crew of segments. that

and do incremental. million storms the yes, about one those that out. and some look do do the billion We So plus get it, revenue are at way the just back Beryl thing to industrial a company to [indiscernible] up of And of maybe with not fact When our it $XXX business it's things -- storms that us. show it's impact in reports a from off the that in quarter, of of we pushout $X.X you the have during due an in the industrial the you in. the company. others, business to it's big And to not gas-based the lot came that pull come storms does our

you're that show So business. seeing that up in profile industrial our margin in

a you lot So pushed that these turnarounds storms. have of

you the see across these in impacts up things can't storm the numbers. the show in those So portfolio, company

to think We're more importantly. off people an some to we're projects, go pulling than to over there in for off restore transmission, power. We're necessary pulling flying off it's people impact. this. they had industry We do So more major, human to renewable for And see. mountains save to continue storm. do X,XXX everyone well us also to in projects pulling major the just is and from the a the and this, struggle It's are is Canada that's larger I life, get

big gains storm. incremental as small written. not being It's on very So yes, very, there as incremental, it's what's but it's the

So and look be today. when sits electric like yes, kind forward, going at is up, the see to and and business renewable strong. is things I show it do you'll good, where it The of we continues our think there those T&D that's

Okay.

just were storm on decisions the what's that a before? get just Or take maybe rate delayed Separate the those follow-up Is U.S. that of on to case of And this impact, up? there gas continuation issues Just going as for? same kind waiting the a to from challenges the underground. of ramping operations we're arising? sort it new any projects is

a think business, they're underground it, renewables. Steve, they're electric, building you the about building underground electric the cause gas the telecom, certainly build to where side to electric. gas of Yes, budgets our when We lot look utility impacts a impacted not quarter budgets and you business of -- The talked lot, gas move went to to at on a last or enough I if from could , you're building but they're early. were LDC

that. and in industrial the with there along the did business up storms, crews out as impacts. our well you business impact But show decreasing LDC more now those the as moved the the We can with it we so segments. push see And it telecom yes,

those. So we had

certainly it, talk it, at I guidance it as to 'XX, as say double-digit the possibility portfolio, the we look a next the portfolio EPS guidance see at level. I in We we forward, you'll and into beyond just into is said in we're next of willing run 'XX, 'XX, year. And year. the before. realm XX% think you about we've guidance if get on talked go about And in

the may -- portfolio. growth term, short the business concern how but period. in growth of this running we're mean, worth we that's And decades see be So long-term I

Jefferies. comes question next Dumoulin-Smith from line Julien of with Our the

driving the enabling How workforce tighter been I do backdrop in training all a you guys labor Look, a pipeline for how a you've persistent pretty do business? backdrop you for about interesting mean of dearth a -- it's here of think as you... the emerging company.

we lost you. Julien,

I'll answer question. the

Yes.

Okay.

XX% I with early ago well from So both we at the stand we today, The of X, investments workforce, beginning as XX%, XX,XXX look, the years curriculum do colleges labor ] known. in what we stand made with in as there X we went we had it. today. invested year today, craft-skilled substantial the think

we and that it's and We that all others. got getting along Cupertino knew craft and of invest. And look that We We work that -- we're to lines XX% of of of So we organic, the that. We've continue to at continue to skills it is perform sure we'll crap us, our some self-performed that. and is through early. need supplementing invest core are continue that the our country service trade acquired some unions see We are XX,XXX, performed and opportunities to it in But to our that in grow. there, associations that we curriculum. to that business invest to across country and Julien. with craft do is dependable the that's that segments for make the investment across sure partners, continue as we'll workforce safe make the forward, trained, that go in

Excellent. now? Can me you hear guys

Yes, you. got

Sorry, I happened there. don't what know

I that you top has and mean with your just for overall the like now? trajectory line and Just to impact seen seeing that. at potential overall does your run seems inflation inflation impact the How this how margin line time sector the that trend. same right when top it what expansion think you're does about business

labor up those X% probably we through we have X% are to been long of as passed a to to we contractually the if inflationary labor to in passed a believe we there. -- X% contractually And It's now. about goes X%, not move Good has it X it's X piece through X% question. but X% then between Certainly, to been through bids, less time. forward, multiyear

a always portfolio adjusted or pass-through bids our impacts. that's and those for we've been labor So

certainly constrained it's outside than data center the piece on inside more On the business. electric of the business, our business,

also platform that to a acquisition labor also doing things Cupertino We're the putting lot that training. with force. of enhance we're in So and

different to the to we're with craft a trying enhance you'll the And to workforces skill, college for credits continue think involves we things, have build anything us We'll -- it future. so that. do of but will be lot see will I have curriculum,

the line from Richard comes of question Gus with Capital. Northland next Our

delivery time the overwhelmed shortages? X-year wondering And their and is any exceeding growth SMR I the was or demand demand supply that? just Electricity X- if you and some is on is had there not answer. next thoughts point clearly, where supply near-term growth. solution in And And what's

You're more of Seller for has to will to batteries going economical, to intermittence duration, back the to renewables. have built, continues be see become gas it. get longer got But batteries it's wind there.

I to growth, that's can at see come fleet, well, still and generation gas as can a just gas are generation you You believe That's online, better all grid case. online to think keep said. business, the make it be I and of keep have to that's still sure the coming XX% intermittency that there still anticipated Even but the double the there that. we've you always the thought to of up

run The country you used substantially. nice that country. the can't of reserve And reserve on deplenished edge. the have margins, most grid I across a if margin to you pretty the go is the believe across

it So in quick got on build. get in get that can't anticipated back And those to you've to get demand. you the a up generation and reserves

teams. X the of one So

build Qs You're constrain you either or the generation. grid, constrain the you build going to because can't generation

so certainly the get in built see So the thing do gas believe solar and more supplement than will that see as probably and you most immediate we've with today, it gas you'll seen but past. I along is

given resources? the that question, fires are whatnot, for in hurricanes you seeing services utilities demand seeing increase starting That the And benefit? are And are it. and sense. the makes sort hardening and that into complete Got to an next you allocate the of more feeds

hardening programs Yes. across board and or where hardening programs, se. see I we are both fire multiyear grid think mean against you the the per certainly have I grid there, type storms but fire

we or I stages. Florida, many mean, late a stages, something early see So X won't being most the say in other in areas. into quite mid it in I late stages to later -- it's quarters one continue but but stages yes, in bit, areas, areas,

areas. in hardening of distribution and and certain lot a started hardening you're transmission undergrounding starting people So with

the don't all old, have are grid So do to that get the you're faster doubling. you impacts underground. We to way the see modernize harden years you've stages I or this And you're things you've quicker. continue XX got up so and to violent client pressure this, only the grid. while XX, think them got demands that to of grids early demand you've doing -- got can go The to against and you'll from to is the -- up is weather

So it from is you of you do that everyone And something a while harden at first? is do meet to grid looking got demand. what you've the standpoint

something it unique these days. the So industry that is to is

line Dillard Our next of question comes from Chad the Bernstein. with

just question think MSA my contracts process duration. X So But are And how X next know year is months? much to on these over And in the then year the curious I years an the ongoing is that is I and this renewal out. guys in renewal of process. you XX for business up for

perspective, sense helpful. from how would like very So like have anything ago X be years talk I'd the to terms a like contracts versus can changed those pricing, how love that X you if get for and are to conversations a

MSAs out collaborative our clients. more see plan out and the it's and prepare, and front prudent get see efficient to you resources in terms are of can more -- be ways, contractual allows I business many it. a done much as it longer, allocated. more unseen and in for it so to because work and be mean, I framework stands capital would Yes. say today, can really it's you to When can certainly

the shortages half you up the if there, long labor talk labor don't term. So show

thousands tell A XX,XXX, So many lot are go hundreds, know, of years. of I think MSAs have, we they're you I around, longer know. up XX worked we don't them of in off nature. maybe They're I -- bigger it. as for how we The I don't MSAs, can't maybe that see

for XX me have MSAs. one -- very I very, could to client difficult So it's mean

as typically we just it's those numbers. for is line. that's MSAs XX% that today, see it -- as So to for business on say will going it But the extremely the me give forward, grows base business XX% the would be the most and around difficult top is I and it's part, you those what

You'll still at see it XX%.

business to has that, continue our or the going as is the and to there their workforces forward. and client with continue negotiate So or to there collaborate the grown, the current ability MSAs of as we'll be that bid and supplement stickiness

helpful. That's

on Second question and availability. is Cupertino labor

So segment sense your better program. how a I'd to for that love plan you training to integrate labor get with

can how much Cupertino. unlock you over just scale to that can, trying just terms is much next fast of business? if in headcount how years? And out of Just how figure labor the you can couple the And

Yes.

I good the trained, I when and programs, think it's X-, training Cupertino, training X-year I they've look very at programs, had you mean believe. how workforce

So good. at it, it? we very, When look very supplement we can Yes.

think don't what can can our people synergistic people it move -- process on, the can't we some will get into just into is early is climb we trade that way us some over And people as segment. want climb, do people recruiting it's we the well. I so to be for

Some down to they won't one client. ground, of the when want

of around we're other. of continue, the each edges both always that sides So

it top like they They that it's you think board is the were very for us with centers on top I beyond long us of lot so to but very, a we there. what pool, they land, provider the for way and solution across bodes when period Craft it exceptional they the sits -- a think what capabilities they're a labor of way time that, out recruit at similar. center just the look have for we different in both, -- consider data The business since the very, nicely solar well talent do. premier inception, data company

programs would about I get have, and when are consider smarter pre-apprenticeship supplementing more supplementing faster in. we and onboarding, we're productive that where they what people So the curriculum, excited the

benefit those and So both all things going somewhere are. -- X,XXX will count Cupertino and forward. depending certainly on us The between there. It X,XXX they varies in where it's

the Our JPMorgan. next question Chamberlain Drew with of comes from line

headwinds are year. last been IRA on of hearing from materials backlog maybe that kind The little that converting lighter customers into election, part your some convert? first you're of But when some hear holding from the this one renewable on to the and on on in your what from of really a just what hearing of this And you're obviously, maybe our positive stuff maybe year, what's the and first bidding up throughout thoughts commentary bookings some side, first the and can the X and than customers. the your quarters activity

I are mean what amount of next substantial the -- sure -- from I the and are. I'm backlog not expect The just us to I the negotiations going to can't why -- the ways put not we LNTP It's robust, many LNTP conversations based over -- FID. increase and contract. to there a in tend the on get into why and between paper a on on finger the is now call, final time

So negotiation, things in I'm inbounds ever they've not been that the verbals, concerned, the discussing as Renewables as all good on the the are we're segment.

backlog I have grow next will year, it feel and confident discussion. that look the time The this into going different. next we will

side backlog the concerned not is business the on of piece that with of it. -- So

wind of but going bit the and a the have would or it or business feedback one the it but from the continues progress have and other, either believe getting our Trump So a we noise little growing yes, the all. when repower think delay, fastest-growing in the like forward is our client business the solar customers I could either same to I see continuing say it's piece. we're Harris forward, business, to business, see itself you're a underlying the thing. some market our But I we the We way. And coming batteries are election, the the business,

Great. the Have updated conversations for indicative your I of quarter-over-quarter? do a XX% the what over of changed was think going CAGR started internal it prior And just and to think materially to the that course different? business you updated look then just rate is is this calling expectations in your growth data of used the market decade. are forecast Kind what higher what's side, the a do that Okay. XX% And versus the you deck you on

Yes.

have what what graph. Just continuing reports tell to it show were we're power about out there there. I of can are Duke as think But that center a reflects And data the data the just really growth we center as I those does is putting reminder, customer in for optimism as how that growth. third-party is trying standpoint, our needs that. That's well that in much from enabling

a what business. think that the is business think when do can need graphs in see you company basically And us going staying the it going the for inorganic, Yes. the a the indicative it's in data, center things put that of the what of it, data over also things. the that business discussions in center that you power? when put X X, X all I mean you us of all continue of the on middle certainly think you offering it And together solution business to I we've think to middle renewable but Yes. discussion the data growth yes, do all at a and in are consistently substantial, is it the some of power forward. it be and And leverage, growth can the nexus years, the midpoint are we at last look see we comes we about I the forward. to the of of Yes, the done need we going at to the we'll the forward. And done under strategy we've Yes, are if about in

were we a they I TAM around lot growth help the in just platform multi-customers. is excited that a do it's And a opportunities pretty And allows much to than bigger collaborate it's can the company think east built and us addressable with it west. of with So that's yesterday. to from are the what about markets unique we position and

like we base. I So where and like our sit, customer I

Our next Brophy line Stifel. of from Brian comes with question the

one cash on I ask to wanted flow.

So your there nature? more implied is in Canadian which year, conversion some free onetime excluding to than cash transmission this that about that way anything targets for Is flow bit flow is in this higher this about obviously free flow forward? core is cash little a longer-term cash collection, year free of there. versus conversion out think are XX% good Or is going a this EBITDA now

Yes.

I sit cash with flow. are with pleased free we where we very think our

to way of a continue of have reflection the those several course, of accretive. renewable things. One, is mix business be contracts it's are work, capital -- structured, working We very and the the

you're seeing so that benefit flow the And of in our cash free guide.

collections. doing better our are at We

DSO improving. Our is

So right year. we've is way our free XX% rate. at to it expectations to say those all conversion XX% -- are into forward, a cash around things guide for I going will flow the look said our factored the

really With Cupertino of believe this be have now, we we opportunities mix on it but end year, do that we've even the on of work. to depends and the range as seen high greater

have a and this be quarter on on big play, work mix we quarter, drag storm had a also this And last flow -- the a working that so year depending capital. into we can -- comes drag the can that free of be MSA how that like cash on

to very to So way be of range that with I is XX% continue it, to in be end think opportunities the to at XX% range. good high Brian, look the to that in right

this certainly in impact that year. don't We the The numbers. Canada expect of to is collect

to on get in. -- are to in money. the statement, confident going. the pressing paper number. negotiations has That taken Nothing We of claim. wrong. receive certainly the a is highly did that we construction some Canada which we've in get said, the confident like highly from in what We're the money We way of longer end were So our done

get you'll what press to it answer I we not more so business next right tell to I the do done. see exactly deserve in the you it's think year. what to going And when and important we've We're for believe because

client. there's And so a

the wrong longer. nothing a them taken get it's to working So with little we're collection, just the collections. with But

Citi. comes line with Our next Kaplowitz of the from Andy question

questions But quantum would or wave electrical see Duke, a X out how of that? in see you and I We new some to large of much and it sort about large come that that you that there's see. do so projects. 'XX given the transmission the size of as is down get to of just 'XX in [indiscernible] you tough know the ramps think how could projects environment? more Do that 'XX project you all occasionally do be know

inbound it's I of the transformers I and to -- in we or -- substantial. can't and If we you We're you today mean and of would not bigger just about whether again, by say that there tell we to day which them, million probably there. on seem the to manufacturers I that's billion by I multi "Hey, XXXX. said, or what talk I and one talking -- one to I of the I can't in we other get we'll work variables XXXX. did, it they're they get see build discussions $XXX you was, the remember they're $X the that somewhere you projects can -- negotiations will DNA. not billion And like said was a one are was $X of listening our

us. the MISO, west, look greater. been see to for can never same are to demand And And The has is that at the SPP. east, for we look you you there the demand can larger out projects that it at

build. at go can look you can to ERCOT, You XXX

geography this you want a anything just and developers You see the within large big don't can transmission, at pick look if pick as see and there's as country you projects. something

them thing take or you to We see high. in large see. stacking it we add I take of forward. one, we're in 'XX, the do see you'll going 'XX, If not at the it they X, the you ability business with going We And see you believe 'XX. it in same look see construction. our we together see effect concerned

same you themselves. case mean, about to and with Blattner don't $XX then But EPS talked and sort $XX Duke, there's to case markets I give but with at of capital have it time, Investor upside at plus 'XX. 'XX. point, absolutely Cupertino done guys that XX% deployment a upside guidance ago, be to you that sure had couple I'm tracking of to years Day want us does you noise, So you in you're the to get I the feel of that that like this little given to you what growth. bit always going mean, of a would the

said grown XX%, EPS, capital. opportunity beyond. certainly we grow it's we and a I year, double-digit minute XX% next mean if just midpoint We've ago, at for I the if deploying have year the this XX%,

capital ability range So will be see our digits some deploy to part will of in the continues. in double in We 'XX. we believe be

gets to you So the math. just $XX.XX in to we're going bottom that XX%, if the and it's XX you if grow do

out real But doing in look, the easy It do we'll on 'XX. it, got don't it in which say. execute tomorrow. think there. have we'll I we're 'XX, quick. today. about we've think story And it think do are We're to a in comes I and And that's I markets certainly deliver get opportunity the to and We

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

Maybe and capital. following on on allocation

to needed into the consolidation of of need of the solidify maybe you to get if maybe lot businesses years and scale our to the it of towards even demand seems the bring industry looking on the a that more growth guys to base to to the potential Or going and in going more couple -- extraordinary engineering of seems plans? a the to and given opportunities their various next get and kind long-term from serving their like that level of you vendors that lot the the your and kind that next When excitement the be provides like talking utility there's sellers the areas it kind about? on development for to electric maybe wanting within you of look because is customer work collaboration talking front-end especially Given been you've to you're that's industry. companies board

it are to add been disciplined side the said I acquire we're partner, for and can a at grow have If things going cost. front as those and acquire part if we to all we'll we'll engineering, to the we not known the mean, about business, acquire, to somehow and that's any long acquire we'll We've grow that we way. call time. before. our it, strategies, the how permitting, We're some big of business, those of things need a we to we certainly, organically, look the it

to we'll and disciplined We stay are disciplined it, to it.

term so. you we that a business, the XXX-year-old see family long business business. we a transformer at wasn't for we it's -- acquired, -- So It see look if

and multi-decade things the will still name want do. about today. they think a a take they keep that we're when people in I companies. it, I big we look they the perpetuate now. culture see on we you long-term for relationship we it are They for great the of decade in great They and They very the -- see people, a stability the yesterday from of businesses, for we things is what example here, that is their things mean, the Cupertino team, can how and we generationally, it, have And management see their want the be to provide They truck selective. family. at want these culture they've think name. care And And great people. great that had when

their they're families and build other interested get that's really People real a the we apartments to provide the craft that in craft-skills, us that their like of are kids like you businesses fine, think is it that not I'm here. craft at have down, sure the not that go people things is or I they and is when build So the to perpetuation continue key that, to and want go why estate want great. create or lot to -- which they that in generationally, don't have culture businesses things, large nature have

it, And think looking move execute our would want they while I the is key forward that's -- them and and stability continue and great what and to for for those for the investors is attract So consider businesses stakeholders. protected us creating the for that to and on culture people. they're here I with returns find we're

from next comes Markets. Our with of Jain the Sangita line Capital KeyBanc question

you on means? projects. to that what tenant signed of are the on already the DOE you of And of So think them front tell some handful did anchor recently you just to Can line? us become to them? bring a an Duke, transmission Does talking that

DOE. to talked we are talked mean bit. people to quite anchor the a We I tenants Yes. the that

our right -- sitting got It's harder. which You still still that say just IOUs difficult. do there, in helps, inherent think you that some of permitting of IOU, won't and it's or It's are, reality, it's I utilities not it has -- if have but some them more don't. are it's some of not them just them an it -- I'll and have happen. it have -- transformed, risk

the do a And around like projects good. That's mean they're I DOE and think we're anchor that And you are that all concept. projects, it's see we I great great them. to tenant. back the

like it's same at at about thing, I on T&D pressure the Texas piece that, fund things permitting biggest Are PUCs the level? lot we with of you states that putting rate really think but look the the there you a of and Texas, it, the in at a the rates payer and when the when discussion. things is not the rate. rate look the payer And are states and and happening

the And building than a that job lot things because so interest, more we to T&D we've got impactful discuss of are a better how gas way rate of different to infrastructure. payers do

those T&D cases. the infrastructure Actually, congestion makes in that down like go through things rates and

much that those if have at, all go to faster. you the you So projects I prove think look can out, those things things

Got it.

I that very tell can on us great. PTT would different that with I announced? is type versus anything And you the that that up that's can also transformer be you or on that, follow So transformer helpful. if honestly a recent acquisition of And acquisition the

the PTT. as in acquisition the discussions made on transformer well as Long we just one

business. be there. So we've smaller the transformer in the into the We're to are the We sell. We 'XX, like with in factories. PTT, can made bigger business. the the the pretty It's clients been can serve 'XX in but certainly areas supplemental. transformer class, can on We not say utilities than 'XX they the a that out cross class they internally. serve, sell little It's even covers in since discussion these

to a to we're got and small well. as We understand it. And we've internal got -- we customers in so just serve the our very, percentage And market manufacturing. of very watch

U.S.-based And will And as allow path to I And in China we well on derisking down we're manufacturing. business our is collaborating the think clients long-term for a transformers tariffs other us have team. difficult -- here. things risk workforce we the if against continue for -- And with and as projects the get us, you U.S.-based items places, the the it's in to really path or against believe really move that's and those transformers supply become key are backstop it critical us that current to and forward.

question next TD Bianchi line Cowen. Our from comes Marc with the of

was but challenges I the is renewable I been a earlier, a some thing bit chain a the expressed concern follow-up labor a supply this growth. about around to I little know prior and to guess of just little talked maybe by labor kind question. right around on some like their developers of business. it talked that's T&D to maybe as There's being Transformer about you bit, concerns. side was bottleneck the the better anything Is that could more last think than you talk supply chain incrementally you're ground, seeing it of or the these now relates worse about But quarter? there of what

to But able mean we constrained. are we've get large DC HVDC, to a that, Breakers real certainly HVDC but good a like into kinds in a especially transformer get besides bad, been is your I mean, stations have we to certain I robust constrained. -- of you certainly construction have see it.

done new developers that chain, on for to collaborate our certainly It's we've partners we the things do our supply something collaborate we the been ones the certainly, able sure, and and clients. think help I with, has enhance that with company and So projects in forward. can

worse. we So gotten don't think like I better our any gotten any positioning there. It though. it's hasn't

better, it get would it hasn't. think would You

But so stayed the of And our capacity. don't wish my believe able kind kind I of any constraint. we've see bill, our same. kind would to of I just Labor from manufacturing out I -- I'll lifetime. it any permitting outpace of been in that standpoint, it's get

said build So says come X and if I XXX tell yes if miles times will X,XXX someone it miles and tomorrow, they kV and yes of you, already. over yes answer thousand

end the to the now I the over have turn reached session. management of We floor for question-and-answer comments. will back closing

Yes.

is and the they're want questions and the men This certainly seen responders, the [indiscernible] to are want every going in respect and I'm natural that best day, thank had to all, I the first they appreciate women thank concludes and to deserve tell inclement conference field they in I and thank participating held business. And weather your Services. I lot Thank see in done they they've disasters. would something in is they've ongoing you and call. and We out of the what interest all we our you. that done job your First the a call. you for Quanta the

does today's this conclude gentlemen, teleconference. and Ladies

have participation, You for your your you wonderful this may lines Thank a disconnect at time. and day.