Quanta Services (PWR) 1 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Kip Rupp	executive
Earl Austin	executive
Jayshree Desai	executive
Justin Hauke	analyst
Sangita Jain	analyst
Brian Brophy	analyst
Jamie Cook	analyst
Michael Dudas	analyst
Alexander Rygiel	analyst
Steven Fisher	analyst
Neil Mehta	analyst
Charles Albert Dillard	analyst
Andrew Kaplowitz	analyst

Call transcript

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Operator

Greetings, and welcome to the Quanta Services Second 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 of Investor Relations. Thank you, sir.

You may begin.

Kip Rupp

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

of reported call no commentary on call. management's brief introductory from X, may advised investment call, the time on [indiscernible] and today, you financial any morning's of that prepared questions remarks only longer August the be interim And replace largely are [indiscernible] this this therefore, make this is during will the replay speaks to accurate information management community. additional as as While for Please time-sensitive remarks intended XXXX. any operational institutional remember of

statements will statements that beliefs safe established events performance from -- liability the include to intended Act or solely historical do about We or XXXX, relate under Private Reform forward-looking current to assumptions or not qualify financial or harbor expectations, Litigation intentions, facts. of the and by future information that Securities reflecting including

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

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

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

Earl Austin

transition, Earnings Kip. quarter Quanta's to Thanks, half the double-digit adjusted the to EBITDA XXXX another and renewable demand of of results and Conference Call. and of necessary adjusted per second Second $XX.X for record our reliability. Quarter start. billion results revenue, flow. earnings and total off to share, programs by security in believe strong execution multiyear backlog highlighted everyone, generation We morning, America's cash driven grid power of continued services, first the quarter Their growth, is portfolio, and infrastructure our energy build our load support Good growth welcome and a customers' the reflect to good sound Quanta our power Services year by North

companies a recently renewable provides dynamic exceptional acquisition renewable for premier management load technology Electric of transmission complements power lines self-performed, team skilled consumption. generation electric-infrastructure to utilities culture offering workforce from electron developers, [indiscernible] consumers Cupertino comprehensive, to energy, We the driving craft create platform large and base, or completed demand with Quanta's will which of for new solutions and and customer a that a and brings and growth CI service CEI, an

to well are infrastructure, by driven supply and strategically accelerate [indiscernible] Utilities increases the technologies for and and transition meaningful as chain reinforce adoption intended in new experiencing across energy federal the manufacturing States the as many artificial policies first United to the power and resources. related domestic time years, in centers data intelligence the of demand and forecasting including designed

growth, valued required ever. more to solutions approach facilitate of of and the with than momentum clients collaborative across complexities by on upgrades the energy solution-based significant its our portfolio transition, our the power is grid building impact load the There is and our enhancements

achieve in years. initiatives strategic We of expect to then to and goals forward the continue multiyear coming our look we to the

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

craft economically Our lines allocate and about improved attractive cash provides to and our and profile resources find the results and portfolio a is Desai, to the also and diversity to provide on to approach and Quanta's approach We'll the your we achieve new focus and CFO, financial programs. to a manage us call strategic is well that us service advantage efficiencies shift turn energy now opportunities school Jayshree? and believe and and ability geographies, results. take across guidance, important technology labor add operational we'll then strategic risk remarks is which few our transition infrastructure increasingly we portfolio resources as believe Jayshree our -- has consistent to and complexity flow positions returns to the over the questions. most We XXXX

Jayshree Desai

flow million diluted adjusted second or share Thanks, reported diluted stock flow EBITDA of $X.XX revenues. or we per quarter healthy attributable Duke, of $XXX.X million. billion. morning, and the of income We cash was and good $XXX.X revenues with share $X.XX. earnings Adjusted operations second $XXX.X generated This from cash in quarter and million to common X.X% morning, flows everyone. of million $XXX.X of Net of free per cash $X.X

to opportunistic balance and our of as CEI us and our to quarter, organic of the cash second stockholders. commented, of generate a the adjustments. capital acquired flow completed to and To acquisition incremental of end for earnings liquidity $X.X that deployment billion, This consideration to the cash the Duke upfront both we and that excluding ample subject sheet for performance approximately end, returns the subsequent customary second end and with supports expectations growth allowed quarter

after combination are morning, cash in also per billion a short-term provided XXXX for profitable double-digit which earnings we existing new EBITDA our revenues to update refinancing and for year borrowings year full adjusted of paper free record an the growth, and transaction expectations, program opportunity we calls another options. financial our debt We share with and a cash under growth with commercial flow. funded This facility, of evaluating on loan and $X.X of hand, currently

expected Of strategy, note, from unchanged. position contribution the and demonstrate increased expectations believe for adjusted our adjusted the our But guidance market end to We remain our our otherwise, strength commitment per our these to our attributable CEI. portfolio and EBITDA metrics long-term guidance competitive earnings for of the share diluted financial revenues, favorable in approaches, prior was our trends marketplace.

which financial Operator? and IR Additional and happy XXXX on commentary about are details website. posted both our and our With are commentary financial that, in our expectation found your can operational guidance of questions. outlook summary, we answer to be

Operator

from Justin question of [Operator comes Hauke first Instructions] the line Our with Baird.

Justin Hauke

it moving a like kind demand within maybe outlook. unchanged. you're with and the you start your negatives say some guess seems said of back pieces, I would your positives peers question maybe of I to kind of organic of to maybe want that mean if offsetting the just here guess, I more here. pressure market some base low of storm underground a was good like pretty call in the business, kind you retail to I is some utilities too, -- don't weaker, it your bit of with know maybe voltage, little

for lay moving you had guess year? to maybe weeks month. us back couple bit little And your Hurricane give of a stronger place you a little outlook obviously, the the I can first and of same to overall of locally what's you. Barrel, for a of just of the And bit this getting what's I guess land little the you weaker

Earl Austin

Yes.

along said we've a that think we portfolio. I run a at So look we it and all portfolio as

you cases. the when point most that expected So we see some push between or part, it, I portfolio forecasted But segment and to pull -- the is have there. it we performing the you delineation little many can the here that's as the there's through certainly, just segments and When outlook think for better expect what well continue. a off I [indiscernible] there. business is I of where than work we mix shift in do think anticipated would forming out on a

Utilities may capital another replacements about at there, are that need budgets, -- distribution, ones for as you and weak their the look offsets into electric. it be, they transmission, and capital of CapEx especially gas over their when of into whatever segment or their Many don't it ahead so have own underground them have the us. think budgets, they

segment, there's we stops at that guide the move the on diameter larger We starts healthy. continue. that to projects guide we will large how don't underground in -- and pipe It our to We're said work there, we look it. to and like We've back make business. million, always certainly need shift to approach it and forth. It's of So conservative a $XXX nature.

don't at of also We make that. it range. XXX XX% midpoint by ] the need midpoint growth [ stand The of EPS. midpoint the the to -- it's and range organic So

the at midpoint. So XX% that I'll growth again, organic say

Justin Hauke

Okay. guess the for Great. Jayshree. And then X I second maybe is

in were of handful mentioned was in the the quarter, but here the projects called you on really from first out So quarter. that margins renewables the you there the drag strong still

think about I quarter, for margins of drag? similar understanding that just XQ, so of the of you hit million. have from Q can was what the we number $XX those would an excluding last in have kind a Do the have kind been

Jayshree Desai

little performed of mentioned Q challenges than [ $XX expected, a million, we the overcame is from very continues into ] the better projects overall those drag the a the well, one bit of quarter. first segment the Yes. second but We in had in around we projects from

is segment that heading. where at pleased we're So

Earl Austin

add. don't thought XX% above And we I'll point there. the the really what We're well. performing projects We or as get to XX.X% Yes. that There's out. those well performed of just

Justin Hauke

the No, were stride. margins Yes.

source $XX like sounds it the of segment. So was in still same of kind pressure the million

So.

Earl Austin

in see We've it. you you in the out. -- stated same way of -- the on But X performing kind can there double-digit some projects. some out, segment it clear It's as on was the drag ranges and drag

Jayshree Desai

That's we're the like on under half things that's feel Yes, our back we in seeing renewable. half what we've on those with going directions. got confident strength. control, and the take forward, expectations to And you're back execution

Operator

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

Sangita Jain

back transmission if a year, had talked Duke, can you and spending. between distribution about go question. to the Earlier this So I shift

utility we that under the seeing budgets CapEx for And are are first so half. XX% far,

can for still like distribution So us in seeing second half, kind you there? the spend? help of are now ramp should you're back you Or that pockets seeing what we air understand see a if

Earl Austin

line service you we're a up distribution and when at X% transition the not think I mean as year. for segment, I a as our look

seen much we're haven't or the to we from it be of shift able one other. too to whether a T D, drag, So

segmentation some You up last X%. get year, We delineations. we're said

If you work just look itself. at the

that utilities T we and or are D. said, yes, whether movements So there's around

We penetration EV have a out west. build great

budgets EV sales of coming XX% California said you're some because so the before, of the distribution there are seeing And states. on to spend penetration. in We've the and

that's pushing. so And

and system tell distribution say validates been pace will the through, push, it it I down. you push can of I certainly see you the that push EV. you rebuild in But will the can't be seeing and nevertheless, that slow certainly, it as systems continue what slows that there's down, as there, the out If we've you're impacts on as pushes saying our load it it. distribution as will a think California, still I it where into ongoing

does have So in play. into -- storm you coming it hardening areas, are which

certainly the half. strengthening We're in back

transition. see what's downs You regulatory able through we're ups of to we know the and things impacts, where ahead of we're the we utilities, and different it but nature, things. the sit, There portfolio can -- allowed to in like We us coming. those that and numbers, go is

really a in So move positions advantage job portfolio take the to as done we the has our in year. through company nice of great ourselves

Sangita Jain

That's for -- if maybe one Jayshree. is very And helpful. Great. this

do renewables burning maybe? much how at rates? in quarter, think it the And book-to-bill lag SunZia you a On of an booking renewables was actual how result much high in was the

Jayshree Desai

Yes, an burn that work. for on are sure, but impact we booking the SunZia has burn,

past out, pointed In work quarter. we fact, additional the as we're booking

to the to are from comp and But very segment. is We continue because in coming. SunZia a good it. of doubt impact last work book we higher year, We that about work no that about feel year, held still

Earl Austin

stacking I but we'll the certainly margin it some 'XX. concerned on Yes. operate grows in will the will way always well, well, there line goes at SunZia your again, 'XX. thing, of that the through add continue. larger will growth effect over top. on not look accretion multiyear we that there stack see growth have would and in around I'm in there's execute and point we've projects better you some be over as base as that That's stacking segment as is top and think nicely, you'll that And certainly differently as and your CAGR to stack the I growth. the the next top we over we've and base, We also this year better along said, do talked top one outlook, We you this see right? about work. that's And in

Operator

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

Brian Brophy

some customers Just as wanted from there. all await some guys out pulling here. back Obviously, to impact trade election from energy stick uncertainty seeing clarity. uncertainty out there's customers? Are with renewable we any this Are there, at away you

hearing Just curious and what you're there? seeing

Earl Austin

A couple of renewable things the side. on

driving chips what from I the think policy you And -- centers to standpoint, factor data would have the they're be the and a or hyperscalers way budgets or consider want that consider renewable you renewable most the Otloking. are. generation, backstopping from or when elections the behind certainly driving technology you and technology is they're it business our everything whether whatever, continues

that Republican or concerned we've well. to as will So continue done to drive I'm far Democratic, as

all We've been gas technology and cheapest drives deal parties at the the growth, growth. any we're the it, power. pretty generation of the transmission to in certainly to which a country significant power in it's backstop amount facilitate transmission, needs where to generation of in load what's back low still whether is planned agnostic let driving things kind that or switching those renewables continues. or former And And of

Brian Brophy

you to just in manufacturing in you you've Conductor. that the last done are investment? was helpful. I about with ask space details is talk deal the there? opportunities rationale about That's And here And about -- now thinking just how year. the the What then this TS manufacturer on broadly, second wanted Can the

Earl Austin

We invested do being as in solution, of and we're alignment reconductoring that think or of a investment at. base technology. a where in it's corridors You customer lot have We small well. we the a there about understand really of that's to when you're like helpful kind great these interdiseconductoring part talking there

alongside we worked our [indiscernible]. So have a -- technology. invested the well, know I we like years it, and customers lot about as many

it's of. think be we we certainly It the that a and -- solutions board want technology. a So to across good has some something part

Operator

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

Jamie Cook

think -- in issue. question underground first My just a on you quarter, I mix and the mentioned utility,

If wondering given landscape. you in second I that. other the strategically. you're just how stronghold -- you your question, Duke, is hearing of performing why could industrial I'm my And think for on you lowered weakness elaborate its And some margin target, then industrial just parts

and some them. be are the You've get investors had pretty good success grow recently the of number M&A to some going to starts of work just because large harder Quanta law with questions to to against organically it's from for I continue

forward, success more If M&A going And portfolio in growth mix to the potentially shifts just with greater reasons. even for or organic should your more versus balance M&A those growth? we driven wondering, acquisitions, or growth versus organic by expect I'm the

Earl Austin

has we going set there. great The to performed go will UI I I'll Industrial that continue forward. to records believe I business it segment. Jamie, Okay. the think

invested like in we that business like and We So business. we Evergreen the well.

the lot we shift would in early being when the see to. good in year, So did business, margins. It of have some a larger that continue some fluctuations I was to [indiscernible] work it. like you We can't it predict in stabilizes

just I it just So say would pushed. of some

and come we prudent in forecasted be at in. the to we're back going look But to it From standpoint, I'm how unwilling a put it it. may about

We things are nature. election an and facing in year

MSA looked you the decisions the into had And LDC or some may. Be. we're electric segment. way and movement capital had be from then some business, distribution the about on we move made utilities business, whatever prudent within how underground like LDC I hardening So where to consolidated guide. storm didn't some we going it UI or it

I pick the on side. it up other So

other side. in We segment. also shows the renewables move those and crews the to electric up It

plus headcount the -- like move most our resources really over. of is So will things XX,XXX not and We're that today.

we're well. up segment So and headcount is our as is movement --

and but nicely. there. the like, there, conservative growing bigger shift on [indiscernible] shift guidance work business some it's some outward we projects, on So industrial and

we wouldn't look them probably year didn't EPS you at I least been last can't numbers I line past the and of midpoint too. at the this think and I say, M&A, years, year organically predict that the at growing what M&A, business done year of guide the lot [indiscernible] you're our me. I back. it. before surprise big But So few at a over when organically. the I and we've it look And grow to far will we've able know look at

X when big a ] They're were big and XX when [ when company. ]. They big, its billion is [ $X it's they're

have on to just our what everyone put not work great and focus what like we But on needs is acquired go that provides we Quanta to a worried to I and strategy really multi-verticals of see. heads and them we off a doing. I'm solutions, have about So platform down it. We else execute. good M&A.

actually opportunities. we have So a M&A position in ourselves I put more think to

Now whether company. Quanta been, deploy how we like We're depends. you be forward. macro it. just going our free past our going on have markets we lastly, not, the decade, free to do way invest in But depends When the a we it on if execute we couple chances of It like leverage and for we timing. we're I it cash sheet cash. depends think deploy I the reasons. the It And going have conservative or balance with to

Operator

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

Michael Dudas

communications business. update maybe the on us So

the you're probably going visibility You out It next see so what's could But years? traction to do you the targeting forward. growth. improved of couple $XXX that revenue year. more Any business? highlighted client side relative like that discussions of trends tone the us some million or on we move value this give margin as And or seems the of some

Earl Austin

I not has the [indiscernible] Yes, continue resources. to company has some fairly certainly think we like that nice something move dynamic always been mean and invest the out. business. I and The in quickly and we in moves business it's and clients, and our

would And really too how business. so and grow it can us we're pretty, grow the prudent call We really, it or in doesn't much. what not impact we invest it about I

the from this segment this So at come hasn't growth point.

basis, to look really it. invest not And really say how haven't we much how and communications pushed it want nonregulated, won't. in of capital. just you to We they're I kind at regulated, on whether

make we coming. there support our as big So see spends, of we'll whatever is seen clients. that, we fine, or or or They here it's it. adjustments coming on It's gets [indiscernible] grow. spends. say When sure I'm these common, it it's the big to If is money days. business to, the I've

Operator

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

Alexander Rygiel

might A tailwinds years? X could your impact next chance Any the of have the your lot ones rank business. greatest driving here which on business you over

Earl Austin

that. the is is And from think matter of -- I standpoint that customer base I talking a backstops if driving what to what than about everything, Alex, really no we're half loan anyone side thought. believe that Yes, me is the about most it's substantially gives can point demand how more what even growth you we the and something what's think it, gigawatt technologies

The customers of capital whether it be continue be technology, budgets whether rise, utilities. to it our

data I to. backstop whatever technology and it something the is say go, be, it to power money spend AI things, do roll people are want would rise have back point center they certainly willing spend. we all on product. So people to But of or or think may do. I I there, mean absolutely They can a is that then that and just you against

necessary be product So if that's infrastructure the place. is to a put there in against

to the I So that back are stock necessary driven believe being generation really do by technology. are builds

this I for point of the growth. So point to that driver at

Alexander Rygiel

broader then the in of driving to sort and of different you a portfolio maybe of And with going way in technology selling big Are did services this new you market business? past? than today a backdrop your

Earl Austin

we trying front Yes. to where I as side provide clients the go it. and to trying solutions, more understand client of to be the solution-based whether clients and have want faster, what have moving the mean at bottlenecks way and transformers the the I the need if to it end to business solution be to you and are through we're start you from all the think inclusive, faster, really understand

take to go And the so that ability itself market on. faster something out the is to our really company to bottlenecks prides

today. I we're we Can provide budget our quicker relatively think to with faster? and people that deal in market everyone able is on it do time and with So we ability wants it do line go to that. faster and to to we get faster? it something that want, Can

Operator

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

Steven Fisher

sounds more of have And to of give collection there like timing pretty Just related or is raise? on collection a and could Maybe the general you guidance us you receivables. the still on receivables. Canadian maintaining thoughts that the the you're question deleveraging color guidance around cash the flow if post a to Canadian raise CEI the the confident there. your position It that little how just in against guidance tied

Earl Austin

Yes.

of itself, start the the So the half there's get in it numbers, confident year. Jayshree position second let but real the to we said we're -- happen our would in I'll to

closer -- the day. like very it's So it I the you've whole chunks works way every we're thereafter. the today, closer look, shortly the and getting of If year, the be with in part to end this just by is we're working not way seen it's and the it of expect the client, through settlement but

we're receivable, it's So [indiscernible] cloud forward with now. with issue progress client and as working to some on see, that making you starting move can of the

let on rest. there. sit Jayshree the we I'll So I like where comment

Jayshree Desai

mean Xx. under I be we'll Yes.

weren't your again, under below to But is year. end Xx. And reason, answer we which be of able even expect collect, by we for don't whatever the Xx leverage the to expectation we'd Our question, without that. still

Steven Fisher

years. broadened last you've over just the does the line the kind M&A. company service a think bigger to Duke, can up lines? then you just sort mean, forward? on it follow diversity What really capabilities several a service here? the still And tweaks Is I going Excellent. question the Okay. of more you from of diversify mean Do there's of lot for you do to picture

Earl Austin

and understand think I think really trade. skill craft about we they think how it how we about and and we

have we development. workforce a So

we've amount that in is. a training craft. invested believe significant I it have across And matter craft it really We doesn't don't what

So electric, if gives a skill mean new of workforce inside us the the that whole ] transferability little and -- trained high it's low you of the them [ it XX can. craft sides voltage, I you both voltage across because and have is can't so on bit not move -- you a

Some it's as not as sounds. it can, easy But some can't.

both is there [indiscernible] required movement. of on So extra sides that

I And things need business can of to out business. we customer there. believe that the from that venue the before, side we gives whole the across the that then scale the to as are of a a get meet basically front side do our craft workforce there. front voltage us we demand like So We more new do standpoint of

And so continue acquisitions to that grow of organically in the make side or to that either try we'll business.

to we're that make So make not afraid acquisitions sense.

and when we over ], it it have happens patient. world-class X craft. in I And make to very there's nothing in think X And We're probably we patient. years We in we're the business companies, I we're be think about -- talked think happens. by that. the And to I prudent I and there. best try [indiscernible] not or [ want

already see lead the there to opportunities until and way the want of we be to right we kind the have. that So we solutions comprehensive we'll patient

Operator

from question of Next is the Neil line Sachs. with Mehta Goldman

Neil Mehta

grid. an including big as it of there like picture and regulatory places question the -- through. push about demand more no upgrade environment, need to the your But is in services for regulatory CapEx doubt is the those in the for there's the big Illinois, we've a utility question tough commitment to around First some increases capital picture sometimes seen regulator of [indiscernible] outcomes, enormous

perspective. environment juxtaposition need services on and a perspective the the I your constraints to regulatory of the And just enormous regulatory love the so the relative from for

Earl Austin

Yes.

top I affordability I think energy on on it's is a mind. do mind, everyone's things. couple of that top of everyone's is believe of

here in environment. in own a on outcry our about did with a day trees in and all they ] that what back throughout across nice here knowing the XX watching for political sitting million customer job Houston to to X and X getting days You money hurricane people really in the service them [ the expect it's political with people have to spend. just is wire the politically out outcry a done pine XXX-foot and fair telephone not and

you you it $X days, and you want up want you'll X certainty If it. and spend want in trillion it, underground fix

Until you down. that don't put matter coming a when across you XXX-foot a in it's and what do, tree poll wire, put you

costs money. country And And move. it's regulatory It we just that outcry so wants I -- that see match where the expensive. from a standpoint it to doesn't

that we matter where whether at. every single customer you're have, something that affordability is So doesn't

all We it. face

have be there They solutions costs. help to we so. help make try smooth. We depend It's them, be why look to and we and and do certainly at this to try to us there at prudent about to to on how looking have out we're we're

it's through you're have And fun get season, it's political times so believe, whether so and moving whether that, I Once political, the the down house. we do some an towards air we we'll you'll in XXX, EV, conditioner heat, not if it's if every will -- renewables we another XXX, continue, need transition. they direction and the and And around. will in the of in I believe don't it's die this it's right country get can think don't believe if

push going you're to So either load. way,

Neil Mehta

built could the that growth to data capture in your Cupertino, now, really of think But about you what is the follow-up to center what like could that the XX% as like how then your And CAGR type business? you you alluded look from focus X scaling set on data And really years could envision platform. opportunities center in slides?

Earl Austin

Yes. They're well. as really business renewable

So batteries solar. and doing there wouldn't they're what I discount with

solar But the and you as the I and like of those job that nice kind doing well. in a it as the So see of they're piece down well, think right there data center in all and up going that's the chips wheelhouse. can We do guidance. things, show

by think So grow, can they where things Cupertino capacity, resources, limited that bonding nature. were we of

speed I base client do a speed and market to the manufacture to sheet, to speed to think transformers, balance more our accomplish just trying that their clearly, solution their is comprehensive solutions market, everything something or that base, values. base we're client to

an it's there I know and do We're So know where like synergies do we they that. better. than better the I we I know know market, that. are can we I in we sit. were can X%. know kind I than around of early. better talking

So we'll in you'll synergies not our also top see cash of profile line continue I the and growth bottom different. flow the only looks find company, but the the to in line, think

If you returns, our they look look at different.

company that to macro markets the push So continue we the we're want in, in the in they solutions. right spot

We here continue to we're say it set is. provider solution a

Operator

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

Charles Albert Dillard

on second questions guidance. So couple a for you the implied of half

second recent if ramp It electric be to factor your out year-on-year half a revenues, in over you the business. or significant acquisition. seems like on half, going there's first even the So pretty half

the again, comfortable hoping with the guide out bridge Just get like could CEI, looks like we the it renewables growth exit that secondly, in flatten based then us excluding year. as starts that? on you business, looks to help and And like it

of feel the growth that get confident to how acceleration wanted about on in just I color that some So business. you

Jayshree Desai

renewables. our on good we start are let the with in We sitting spot. feel Chad, customers good Again, a where -- about are headed. Yes. me

around the lot any matters election As I Duke a concern base in the market. of do customer not our major from the cetera. we're renewable pointed et out, again, yet customers think, quality seeing noise,

So end year there. expectations confident we of very feel about still our

know, conservative. are, see over tend we you as develop of want the next We course, to months. be to market We X the

So of sort any pullback is only perceived that.

that enter continuing strong today. our We on a any electric it We projects. to seeing -- contracts touched concern you utility side, the or it. to continue And on continue but spend We're see back want to here sitting to is capital. customers is build don't half,

-- are the big We've the we've is and entered year. into capital got that that, start half we believe of that that We will coming. ramping back programs towards

us that So both out electric all and our segment. our in confidence renewables revenue in the guide of give expectations laid things we've those for

Earl Austin

color difficult build it it's little I on big as see that. say to a solar. would Steve, -- you to we that

great reasons the It's of solar have to need It's best felt -- Blattner so I in projects. in -- like looks we a with confidence we easy. in. think business, we're of us the is and and big just easy. It not that that lean something building of concerned give One deal we lot the not a very the

client So does the base.

plant won't So We're you new a for they in believe the saying you and gives backstopping be saying will to gas. the and we systems. I'm -- haul continue for what support renewables tech their do here the but renewables there, visibility here not need or want we growth is long not redundancy you're

system So eventually. day if renewables build into X, X, the don't build it they they'll pushing day it

we Yes, we as what programs segment give the mean well like starting I into that Jayshree are I that we've us a believe segment. half visibility premium going right. see is on guidance, to the think as taken will the renewable continue forward administration. under do electric approach lot any and I of a So back

-- need feel execute we here. through to confident just So we

Charles Albert Dillard

call won't electric both customers. helpful. towards from to Great. in just a shift That's utility earlier distribution, super about the and at our return the And transmission gas I conversation

give capital the conversation dollars or of I So can that for any customers But see side equation? CapEx the least like the understand XXXX. with less what's distribution the to whether that's flowing like today for you of back you'll incremental at color about happening

Earl Austin

it's regional. mean I

say You to maybe ] distribution is didn't our have one we way, but [ the is it's around some fine. other, business said, I I regions, side electric I just was the the as way some our push others. necessary. electric like in by move there. on in had feel to and movements There ability them growing certain

releases, some than business we too gas you're there. and that. up off of in where not I'm in capital So gas things some to the things gas concerned The like methane caught electric,

electric moving year. into So they're over the for

they're happens we're accommodate. need able to It to able around budgets

transmission gives provide I client always around. our We're matter. and them So the of that flexibility. the there say it or can always We though. to doesn't are movement move ultimate fungible skill consider I'll That's always into There's the distribution, moving we is substations movement. sets what -- some a part fungible. are solution

can to solution, and is the we client job to Our that provide the flexibility to them. give it

Operator

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

Andrew Kaplowitz

of load to electric had but with quarter in backlog your as trying talked obviously the you quarter. bit you figure higher were to a deal this power about out growth, contracting nice uptick a last low customers Duke, a

then talk accelerating Are So you starting end? confidence to about did here? renewables see these from can And will effectively again? backlog level that your come growing about MSA to larger an you

Earl Austin

Yes.

I saw -- I we I what in bit when it's low, this a said transition. reset think you just think

We solar, load to at talking looking that wind I'm budgets and you're and the XX see that. gig capital continue for matter. their about

some up. because movements capital going think continue to segments, going we the load's our do everyone budget, consistently. it. I see And to going You're is up to they're across maintaining point

You that gigs, can't actually build across deny up. XX up. X up, XX high, you're fact you faster renewables, capital and still the of gigs, gigs makes is stabilizes and whether got it's moving loads If going it's it, the we gas renewables to add going system, do fired it How generation, renewables it it's if going better.

We is across I of spend look be I mean flexible movements got new. see to we those with some So capital to get it. wouldn't -- at and you'll how those just

that's -- supply. XXX this the seeing is [indiscernible] something just I transmission It's say, We it. the pricing is yesterday need out market. important. out transmission and just country, the there. So but been at you it you on economics. see in been We is it's onetime, is It's extremely And fact saw we okay, can there. can the build I coming. think PGM and demand go to far got and

Andrew Kaplowitz

you a some think been expected I Very you year. second business it's Canadian could is us in doing? I into improvement a give for little quite color helpful. your a of how more And while. half then this drag the on know guys you

commentary in your where had regarding I in geography. are improvement you update expecting in Canada could that you But think you release. some on positive us still

Earl Austin

mean certainly better. better. is I it's market getting macro getting The

and into getting 'XX is higher second the expect Canada has the always market market better. We high is the to half because highs better increasingly quarter-over-quarter and low lows.

it. as states, were so the growth the supporting more a we'll of well. see some States. the states the as move It's move resources are is been we Australia still in you And come very be back, with able in Canada But of nicely. a lot we business And helping into to the along Canada very, nice

we and X. business think not we the and at term. So in But off it again of grow It's we book rightsized close it, we just and -- bring very go-forward segment the with like that It's year, -- will next to see we a allow at us be look how basis. cautious about the all year. throughout the see we the It's parity of rest work the on up backside margins we'll got do long that I just though. on where to incremental, the

Operator

back I the this over to We for comments. to have turn like would questions time. floor closing management at no further

Earl Austin

Yes.

the from conference And the like go row. they your appreciate with notice heat and for ongoing employees and I So days in questions the participating on to of doesn't we management we to we'd days completes call. and you. XX-hour what in in you in in notice. [indiscernible] clients get rain It you. This interest Home through they the day It thank your Services. their dedication appreciate call. Thank worked all doesn't our team clients, appreciate and every XX,XXX go a

Operator

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

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

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