Quanta Services (PWR) 20 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Kip Rupp	executive
Earl Austin	executive
Jayshree Desai	executive
Charles Albert Dillard	analyst
Ati Modak	analyst
Jamie Cook	analyst
Steven Fisher	analyst
Julien Dumoulin-Smith	analyst
Steven Fleishman	analyst
Justin Hauke	analyst
Brian Brophy	analyst
Adam Thalhimer	analyst
Drew Chamberlain	analyst
Sangita Jain	analyst
Marc Bianchi	analyst
Auguste Richard	analyst
Joseph Osha	analyst

Call transcript

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Operator

Good morning, and welcome to the Quanta Services Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

If you have any objections, please disconnect at this time.

I will now turn the call over to Kip Rupp, Vice President of Investor Relations for introductory remarks.

Kip Rupp

Thank you, and welcome, everyone, to the Quanta Services Fourth Quarter and Full Year 2024 Earnings Conference Call. our a XXXX announcing found results, Investor section issued and fourth in we Relations year quantaservices.com. full which of morning, press our release quarter the This at website can be morning, operational financial summary XXXX on also full outlook Relations Investor our and our quarter commentary, fourth This and we website. year Quanta's XXXX and expectation posted

for to While questions allowing and financial operational morning's call, management the remarks, investment institutional will make the prepared is from brief largely intended community. introductory additional management's remarks time during this replace commentary

harbor Please future including of expectations, statements forward-looking performance remember or Litigation replay any established the to any the be by that and under about Securities reflecting statements that XXXX, are and not information and only information longer relate reported on of intended include beliefs that this Reform events today, therefore, qualify of of call or this to speaks time-sensitive from advised XXXX, liability historical no Act solely as current as financial information call. facts. may February This do assumptions XX, accurate safe will intentions, you call Private

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

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

listed to of Quanta and news and releases Quanta other notifications the channels through Lastly, on and the please alerts of our for website. sign Investor receive on media IR Relations follow social information section Services up quantaservices.com, e-mail

Quanta's Duke With that, to call to CEO. Austin, would now like the and President Mr. turn over I Duke?

Earl Austin

double-digit growth year and and earnings in financial This a included results, our revenues record fourth number XXXX we which reported Thanks, quarter of and morning, full Kip. metrics.

Infrastructure notably, achieved all-time and highs. Our total backlog $XX.X Energy at segment, year-end and XX-month billion, Renewable Solutions was backlog

Our the strength approach, delivering our to industry strategy dynamics ability testament solutions-based that a to is to a adapt portfolio us mission-critical enables consistent while growth deliver to evolving profitable of infrastructure. diversified

produced more the X X our per has revenues years Quanta consecutive of industry-leading EBITDA made X record record of platform. than adjusted financial years, and employees dedicated record adjusted share. consecutive were XX,XXX and last by operational These years our earnings possible diluted results of X and

Quanta we strategic while for and to areas expect we there of for look years. this year, And and initiatives towards working coming excitement we to and accomplishments are our we the the always multiyear during year goals successful on, operationally strategically, another in and this financially. continue was with are the improvement, XXXX achieve are forward proud many

continue double-digit We targets, pacing and are well growth against and see growth returns. financial significant to opportunity multiyear double-digit strategy EPS to including our our advance

manufacturing meaningful both of including and centers strategic its at customer Quanta our service organic increases demand addressable market is center. Utilities energy being and new and growth is while is and infrastructure chain base artificial by infrastructure, experiencing initiatives enhancing related a lines capabilities across for are strategic therefore, fundamental transformation, reinforce data technologies domestic first decades, and The enlarging in our are opportunity States also transition time Our the positioned policies energy deployment. adoption intended which the X to total forecasting intelligence. United and supply resources. undergoing and The capital and in our driven landscape power strategically expanding and and for the

to support Quanta's coupled with tightening development. evolving portfolio modernization urgent as positions and navigate clients need the underscores for This large-scale our energy grid us they infrastructure power increasing demand landscape. capacity approach this generation uniquely

Our diversified solution-based create our across deploy they more than most us give ever. resources service by valued geographies, flexibility value to workforce approach lines, is clients and where believe skill lines. the collaborative We the our craft industries capabilities self-perform and service

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

Our and and operating resources the believe portfolio believe and we positions and financial that become is us increasingly focus lines approach attractive, shift in results. our achieve service to electrification approach across the we manage to geographies, We to growth, labor efficiencies which most and to portfolio advantage important energy as resources provides craft-skilled on a strategic will load accelerates. ability allocate economically us well consistent the transition opportunities risk find

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

Jayshree Desai

million, fourth and with year Duke, everyone. diluted or and adjusted diluted Thanks, per stock morning, revenues share $X.XX. was or common attributable to of completed good of earnings quarter $XXX.X $XXX.X XX.X% Adjusted billion, the net Quanta $X.XX per of $X.X revenues. EBITDA share, income of million,

flow upper free and guidance flow expectations. cash note, of year for end in the full fourth our our quarter cash the Of exceeded the

respectively, the our cash free cash record. For a XXXX, quarter fourth free we $X.X and year flow full of million full billion, flow $XXX.X with and had year

for X the our acquired incremental end of end, both and the XXXX, liquidity us with and upfront ample earnings cash that approximately that balance of to To returns capital consideration subsequent we growth stockholders. million performance investment organic the opportunistic for and to aggregate supports of $XXX end sheet allowed of expectations fourth our companies Our stock. generate to cash quarter a flow and

the growth, our trends business, share. the favorable to strategy, marketplace. EBITDA position our which of commitment strength provided competitive for year This in per the opportunity expectations, believe record revenues, and demonstrate margins for our approach end portfolio We improved adjusted full and adjusted another expectations our profitable called with our long-term to market XXXX growth our our financial year double-digit in we earnings of morning, and

March solutions. The infrastructure beginning of will reflects reflects and solutions new release, our previous ending how earnings underground segments. under reporting we Solutions and segments. report infrastructure managed months strategies and Electric resources and is and our XX, the better our positioning growing for reportable Solutions addressable and This the in Electric X X Solutions Infrastructure the electric business Infrastructure utility results converging Infrastructure segment Energy combines XXXX, [indiscernible] new with and Renewable allocated markets. power our mentioned are increasingly solutions segment As comprehensive

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

have against plan been double-digit including pacing double-digit our with well financial well ended executing growth targets, further better, summary, never XXXX strategic in record our In opportunity we multiyear see and we are end are the strength years. our EPS and and and for We on coming backlog, markets returns.

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

Operator

Bernstein. first Chad Dillard with comes [Operator question Instructions] from Our

Charles Albert Dillard

So just a picture big question here.

investing the So centers grid a broader lever Is Is the shift to grid? data needs, positive, does difference what design and there for in approach, Quanta? net from or training And any entrance neutral? mean use? negative it

Earl Austin

much there After and data AI, look like there's demand. demand, know. mean How what I AI, before I does, we still demand. don't was it centers significant at more when

the you firm well generation gigs, customer it. see XXX our at What It's commitments I at we to see XX level, is of gigs, in over look can it, can do honestly. point you

what type looking on and seeing -- centers of on the how infrastructure at you not demand our way. it, to We're So backlog that when those demand it. just type see it in energy, you're build. and the we booking that data against looking of we're at We're need

a see with at is to we're We there. great just market and what point. see that just from DeepSeek that that firm. AI chips we So not And does, demand concerned this

Charles Albert Dillard

just guys second did. question, just M&A on And recent you helpful. the That's that

baking So revenue should 'XX? what first guess, for of I sort like all, be contribution in we of

business, like you're civil in? business And mix other support then the verticals about this to ancillary that Quanta's Or forward? thinking going business? the be going you are of on there to are how meant Is core operating the

Australia And And positioned an guess, the And market view then I Australia I the acquisition? what market? with attractive guess, on as Quanta structure? a is how your this like is what's there expansion, on long-term

Earl Austin

Yes.

[ standpoint, I career. known we've them them office, culture DNA, my for -- the time, the long by decades. I of whole company, the business, Civil known my the Solution ] from basically, a their think the So passed

in So something the is great that family, business I that the know those synergies deal. against also a has the fits it's family we our put it don't And itself that, obviously, company DNA.

trying deliver we basis a value approach, holistic feel customers what to provide, We and gives overall look are for it. to a those add at us it it the can we solutions of when we're on accomplish. like that asking solutions our holistic really can I

center, If things -- to acre X,XXX it's to, it look you all doesn't look provide you LNG try that whether the at and at site, X,XXX data sites, at look acre we solutions a matter. solar do XX,XXX-acre

We to our will business core well as as are the the go against deliver the others. assets, and it and own people, which take

the and want as capabilities look to a So more are be more asking when it, look flexibility we ourselves at we give markets. it's solution and people we that for, holistic at self-perform

Australia. in great In market that Great something it like We invest the business we Australia, down of long the we to and we'll in we've along down business to side continue to front continue said companies, country. invest is we The invest feel in all the continue Australia. renewable can We're there that in term, leaders in. like markets.

law So lot obviously a great rule of of gives us and flexibility.

well. excited revenues. about market I'll on comment we're as that let So the Jayshree

Jayshree Desai

discuss it we're give in [indiscernible] to we acquisitions, inorganic in to and -- contribution not captured any that around segment, guide our related in the contribute is we'll don't We that. the of majority our individual but guidance you you going that X did acquisition, the is what tell

Operator

Sachs. will from Goldman Modak Our with next question come Ati

Ati Modak

how can color power the performance I was drove that in much the should provide we you wondering as going if on improvement segment, And margin the forward? electric the consider that? factors margin Maybe structural of some

Earl Austin

are we the Obviously, but quarter. lower margin ] had some We've Yes. profile acquisitions there a done this I executed better segment. in mean, Cupertino return. a [ well with that in

So utilizations in of the got years XX% type that framework, where we it, if ] of the in the outer you look nature we've I do think that margins the [ lot in at XX.X%, things and business. a past, when stated XX%

along, a in was. But say only we there the electric It it the felt going have I out business we personnel back to see is range XX% go-forward be the like XX.X%, basis. we're continue and we in we'll second the structures on loaded. we half at the and is was that we where have what's where all general, that I that segment. said And We in in to this put half. delivering think basically the earnings can strong field it. we'll markets, the together as and deliver be That's

there do the you So I of of what segment, that's that due should we going we Yes, But some be forward, it the factors at matter in think there. here see years framework what we framework are look how that XX.X%, XX%. some or to forward. kind will see above the in given kind no that's market, going

Jayshree Desai

Yes.

and our continue that, Peru operating just think to seeing add that if at last the have to go you reduced XXXX after that is in consideration takes comfort take double-digit over you're electric segment segment, performance revenue. going at at And I also And to company level in we're us -- think we're that XXXX. out should where from even I to storm and of we taking that's into the were well. that as from year still into going you the with XX%, we impact. It look

Operator

from line Securities. next Our come of Truist the Cook will question with Jamie

Jamie Cook

for question, big I or just Cupertino for and potential were [ very know an could in guys particular, with 'XX going awards could to frame in can on ]. Cupertino to associated is Blattner, opportunity awards larger ]. I with Duke, you guess synergies [ that my you growth with revenue XXXX? trying successful first I'm understand be [indiscernible] what's if expectations the you talk in And backlog synergies

if I this, on loaded. missed of sort But and talked my cash the just second you I'm question, back-end you sorry it Jayshree, to -- being flow know guide, more

first about half think we driving what's do how back and versus that? half Just

Earl Austin

Jamie. Thanks,

see balance as we of we and build to that market what I Blattner platform have these think them the there's And do we totality, the the look customers these into a the at way in Those do total TAMs value that discussions is synergies base we of show we're between further when when way we customer them. convergence in able the the on the unnoticed. we along or with goes companies, plant, technology, look unnoticed, business centers. the up. don't utilities at the when we've But we something are business that because you've the type goes with buy synergies data gotten seen things adjustable

And way and different, we're looks business certainly are the the so different. that looking those at markets

look then plus, let's just in billion puts is the markets $XXX billion serves the we us now larger different you CapEx America. CapEx. position converge really how North at And Utility at you the nexus a If it, utility probably, and middle CapEx plus. that but $XXX and in just billion $XXX projects. The in addressable on Quanta of look of call it Technologies tech

levels. record us you throughout be me. backlog expect It the year. at backlog the our how be know can't But levels tell record could surprise you expect do exactly I wouldn't I record So at levels. -- looks. at to It I CAGR to

you So will tell projects. I but what see exactly happen, can't that when bigger I

The is something community. perform -- to investment our that's ability to solutions unnoticed the

are again, to and provide we -- solutions that getting how And and with we solutions I'll solutions customer we it allow say do market those We our will in what only addressable that us bigger. provider. is a collaborate provider,

that Super we engineering So it. see opportunity. solution-based against craft-skill allows have strategies we sit us We we where I that going showing And excited see it that up. it just think about how and use we more forward in and solution. the

but the continue business. projects, base expect us book yes, larger I to fully we'll I mean, So

We are our not off eye either. that taking

Jayshree? So

Jayshree Desai

-- sorry, Jamie ahead. go

Jamie Cook

say awards to Duke. Cupertino larger specific to No, Cupertino I to anything Like terms in of just the to going revenue was is question specific in center, XXXX? a

Earl Austin

But that. inferred I absolutely. think I yes,

Jamie Cook

Okay.

Sorry on Go Jayshree. flow cash the question.

Jayshree Desai

given wouldn't the On be profile, I in our first nature it's business too operates. weighted. much our Yes. back just of will Jamie. free cash the how It half typical flow, expect half,

what of So the in done I we've think couple you'll see similar cadence last to years.

Operator

from Our Fisher will come next question UBS. with Steven

Steven Fisher

It generation voltage. the and high helpful mid-singles single-digit in have to and was for guidance growth upper the versus low

curious, Just of year-over-year? us what rates can sense we how XXXX, directionally, compares were a if it see can those of in so you give kind growth

generation of Or part beyond slow should kind just grow rate conceptually, high accelerating is cross, the looking And piece driving be the of kind years? then is low think still couple and of 'XX voltage do you for above will while kind and will? down generation, those this like sort renewables of the if of you streams which going to grid the next should

Earl Austin

I mean seeing the you're I Steve. think Yes, growth across business.

] the look to the top. on what and at you're [ growth seeing company you seeing You're call top it at whole XX%, it at growth, line the the X%, line, XX% if is EPS, the X% organic on of midpoint, the EPS midpoint

So we're seeing growth.

across convergence business. that year we're is lot of the feel segment the not our transmission to we months run And X for it we reasons how the of very was It's last and explained we like ] around that a the investment spoke that confusing distribution It One business. going one the the how I business, community. we Actually, segments. T&D. run crews [

together. So we it put

So tell go for how generation that? substations, all you to kinds what and of much there's growth us is or different there's Because things. in

cross across. from people plants rooms, we to hospitals, centers chip all Our to move clean data

manufacturing segment I specific large against where So any or -- people to making across not mean base. the we're we're We're to customer going our it's markets. optimize only addressing specific one TAM. manufacturing anything a one

is We're to XX-plus. on of is midpoint What like growing. get set the because of the to And are at the up growing, segment the matter we're way all doesn't guidance not up. the little putting going the business we markets matters range, So us. we're it pieces into

You growth across all it. see

across how that growing, business. to about So the those we discussed we feel go-forward It's that and and are we're we've like how talk run a to can all markets nimble on the going move the in we're provide going solutions be business, and that we're basis. them

And see we growth. have growth. And we

which Renewables welcome alone, the in that believe backlog up we staying are segment at see the would I you up we can to and put XX-month those we what we You backlog. the in the And just of they're put I 'XX. 'XX, 'XX backlog. last kind not see look quarter and that did. it and and It's long-term numbers there, said backlog

doesn't it said So we you I renewables, going demand matter. can generation, daily. be talking and this, to it demand then on we're on see It's growth, and generation. the you can a generation. you demand issue see it, think fire the see there. it's comfort to to about be we've for yourself just right and supply going It's going it's And continue, gas like It's

We little are. not We're optimistic. a get to going the pieces who provider. the growth. of like solution we're So That's into not segment. we the We're

Operator

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

Julien Dumoulin-Smith

Maybe just briefly. to here come last point that back to

Just quickly. on real the renewable front

some the execution off. speak bit the SunZia in confidence As you Both that across checked under make I think headlines the of federal it's the intact, new can administration, lands. in sure considerations but to wanted operations, the just little your on about a we've here suspect to permit terms project specifically? of largely you

just you revenue as a it And alluding if you I today? and compounding moment to ago, hypothetical translate speak think as resegment, and this as would brief, to about related that backlog it you but you to then to weren't separately can use were right, think again, how the stands resegmentation, here, into

even I that a appreciate well, today the speak in otherwise. just business, at a point are But suggest folks you is about can clearly if looking saying, it. than the some moment alluded renewables you more ago. clearly, to this to would data and suspect backlog I there deceleration something

Earl Austin

We're not We're doing people think to because complete. I fully well we're SunZia on the progressing first talk I are expect I little to want Julien bit issues all, us seeing replacement. that. -- of thanks. about like well. SunZia, any permitting great. And past we're about a worried

If SunZia look X soon the wind you And SunZia. it's just the line, line, at and replaced go that basically you not as then in if jobs of break we're replaced down We've project, a transmission it, a And big half the you worried piece, it's well. backlog. replacing already on your we it's to about yes, I -- but year.

at concerned to and replace that's And worried. all get I so we're want community. I investment a not ability And to out with our going think and not that I'm forward. misnomer SunZia there say,

talking start there's between it. ordering you are what We've Second, turbines We're XX% point are about 'XX. we're it's outer up years. when this it But We're when getting yes, going gas We XX% We built. put be 'XX concerned in see said all 'XX, And seeing to We're generation, to out, that going growth now seeing to months up that. generation then? growth. growth we're XX 'XX. you put and We'll XX renewable 'XX. it not generation at to and in looking in along, at [ ]. with do

what build to and capabilities batteries, underestimating the even transmission. look everything in of of people energy. possible And fill when get renewables renewables, of The get like and I we everyone that's to behind looking to up lines. transmission way the build I'm I need should, you America at got with because forms you are to the way And North really still the when the cost you at to is see real matters up believe turbines it gas, and we lines the still issue got all that, renewables, in when start fully fill it

straight about But get built. need transmission get permitting worried not I'm to we the to So growth. the

Jayshree Desai

quarter. clear, we resegmenting are Julien, first starting be to And [indiscernible] just

Earl Austin

first Yes. Yes, for we're resegmenting sure. quarter

Julien Dumoulin-Smith

And RTOs that indeed. I No, on planning Yes. substantive released if have can absolutely transmission these the really in point quickly. quite in last last pick their Duke up quarter. processes Because increases

that that flow into your you're for line to some expecting of the what's backlog? So time cadence and

quite across could I it get some quarters months. think of staggering X numbers a lag the these? Because really are that How is here, of in the that so. about there do or kind last be you couple

Earl Austin

glad What those do I'm Yes, is even we're discussions would say you before having they came I out. I today noticed. think and

the should of mainly are say, in was those their someone Steve for look that ] larger projects big Qs projects, -- think, talking and see already [ about those top the that both that's Those all and I are what ongoing on RTOs matter. at capital.

a daily you're starting we're chances. bigger like having basis, to on So and I work, and see those our discussions

Operator

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

Steven Fleishman

there renewables the tariffs, the administration despite you the certainly I question that you other it -- of would tailwinds -- I backlog answered things I there anything that like you're but just of think think or there, that on you in the watching have come So was ask, I up, it look just wary a some the didn't got? that sounds increase on are seeing you're -- and change just is like -- still

of out? you a keep be of the seem turbine you the over but coming and question I more lot gas up seems be want growth increasing. does next don't is ramp kind in your to As undergrounding of meaningfully on looking likely -- you that just together do know business business, the Second see this mentioned years? in your to focus for several gas, -- pieces to to

Earl Austin

Steve. Yes,

we First how I -- PTCs do of customers. administration at impact mean, and we're that looking like all, would on at look our

harboring. that our There's a We and safe sophisticated. I feel they're not good watch concerned, think watch we we it. do I'm lot but clients And of very top as closely. about

you of is the based XX what I in the against mean it may really kind But out generation it. some see. the what and of noisy, the worth think in have a on RA -- we and impacts hear. market, and it what look good of years' I think way short-term in we administration, will renewables certainly, needed the that that's the we need will be dynamics yes, I I those but the end, prevail

backlog, and need long, we generation. see out, work booking are of all forms we long out We

XX talked It's build forms forms as Things when [ all probably I think back we all I we need fast meter. demand today. pronounced all goes ] it as it behind as energy we talked We everything about up, the it, forms need it as and been is you're about of meet never years we seeing the come And it seeing of and quickly fast it. because can't distributed there. why can is generation, That's that think enough. you're we generation.

when look can build I at who we will it, at at When We look -- we to combined build risk. cycle, it's are. we're we just going it, it but probably not not build

cost And so a all things We yes, We cycle build around. we'll help kinds do it. the customers. either. can is cheap not of combined our around But substations can of

so the I to much it costs on turbines cost gas and them the to and it these to And days get trying think on build not how is same.

off And I risk. the cover company that on general, sure think have we that in we make to so

the and can be the And involved small something I be it. difficult, It's that, will that on those past and about them around I certainly of all business. think look how can't some of head. at opportunities combined Yes, that it's prudent out in we'll but cycles. my cycles, been opportunities get do we take in Single way we the risk we'll build aren't stuff. we [indiscernible]

Operator

next from with line the Justin of come Your will Baird. Robert question Hauke W.

Justin Hauke

wanted think hurricanes impact work, wildfires. in ask any a big California to that's the quarter? you as storm the have questions the of -- ask knockdown had same that impact the that of I the of lines. lot about I asked. Yes, picture just wanted I I to first if But curious here way to don't been really guess

term, undergrounding of Just lines kind about more your rebuild the and long impact, of do on long-term ability and versus maybe kind could that. And that differential to just if lines? overhead importantly, cost comment you thinking the the

Earl Austin

the We It -- in California some and nicely out progress expensive. now, is. to [indiscernible] of it's it undergoing continues involved in on

the taking I not you between fire nature But risk, when no it. the look and think at So question probably of about it's there's that really long-term expensive business.

do we -- today I impacts see -- it that do -- fires, hurricanes, it. and across storms it's of it weather or seeing whether winter weather we're violent

So got ongoing industry, programs I think the we're you're West. a in. that as resilient the hardening program energy has seeing Certainly, in an involved

in So I them don't take line we're ever our XX years harden intended XX, think to grid one every a derisk fire to clients with the risk of anyone their business. and XX ago. on trying ago, involved and years

to the we the ourselves and on resilient There's see try help and and as are across make So doing and have technologies we're to modern, well. like along that collaborate grid more we that. to and put more board coming for what out things that,

paradigm for or more. [indiscernible] harden and got So seeing and it everyone's events, kind to of decades new of we've And the in this see grid. we're these to that ongoing, we'll continue

XX we way XX, this long got the built and grid a last to years We over go.

happening, get do we've and I of industry. that see in so to And front an got as that

we in in watch is have from have the we ourselves risk well. out fire mean West. the to that There I as on risk fire

that company of the derisk fire the middle how do that sure well. make how something I is think ourselves the in we and So as we interact we watch

try in with together life So look, human it hard a that we the we're and clients events to and make when all these working spare to happen. difference sure make

Operator

Brian Nicolaus. line of come with question Stifel, Brophy Your the next from will

Brian Brophy

meaningful that you outlook that on talk was How we this And made [ I on should Lumin start hoping that ] communications thinking more here. about here could contributions you the bit be? about when detail a announcement any and could front?

Earl Austin

award in we the Yes. nice were look, telecom still business. I guys there. you had we was a in trying sure But just make knew to general,

We continue to grow the business.

to incrementally continue demand on fiber But on and as it to goes is long-haul core unnoticed center we just [indiscernible] you We as well data do big. think everything a It business see continue probably opportunities else. our forward. fiber move bit The communications.

business. We said, the nicely. love We're growing like it, I

I goes said at company see years grow. was the market and X meaningful we're thought markets the versus still we're something is our the from where continue that investment community it larger, different addressable standpoint. much ago it that And to I But -- addressable where and it's Sometimes was an unnoticed. should world much before, today

look on grown think going and our can make forward, technology And we unnoticed. at you the or goes it to segments, I that So when want you company it's I whether that is across something have and larger everyone But that this getting growth just communication realizes across that can go see markets addressable sure utilities, on. multiple

Operator

question next will Our Instructions] [Operator Davis. from come with Thompson Adam Thalhimer

Adam Thalhimer

same else curious the similar magnitude? was you're of [ Lumin another ], seeing fiber. actually. a about in you book question long-haul Could terms I award had of I what

And curious rate. tax then step can the if comment was you It up a decent on year-over-year. Jayshree,

see Just on was wanted what to there? going

Earl Austin

telecom think They're of we bought We long $X $X talked [ ], some there. we growing billion being Now ], And growing haul. and really off I base smaller we'll growth [ ago. do businesses billion X kind X, we're about years see in nicely.

growing. Our infrastructure data are markets space. the on of There's telecom no around shortage demand

awards see on can footprint. do and I what deliver getting national we So us a more

of talk about can still happen. moving underground of We some that our over business the utilization into telecom,

TAMs. these leveraging and people all across we're So assets leveraging

middle decades craft-skilled capabilities. right see and significant, multiple one of that customer continue And bases growth businesses. do in move to you'll consider that with the is what the of them. in would to so every the it forward resources see company I next our to engineering labor And move across across we're out for I is think Infrastructure there's and these and something ability we're conversations X I all our

Jayshree Desai

did at And us that Yes. year. some of here allowed a tax year entities to of end some the that the the I couple for take planning clean think up things. One, and tax through tax this rate, benefit legal we came the as nice

as vesting had going well best As we this we year a in the benefit earlier into big year, in had ] rate 'XX, vesting of -- the well the price and 'XX. [ the stock assuming RSU of we're lower as

both see rate. well. step-up you And seeing those that why things so as you're the in a combination tax are of The

Operator

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

Drew Chamberlain

a there. But can where project customers? that see bookings. kind on that to Just coming you your of standpoint little seeing Obviously, of the from a what of momentum bit just you're are from a demand kind break renewables follow-up bit is, out technology good and profiles a strong the

what could hearing how gone backlog? for safe earlier. briefly and And have harbor further the much that's be type Or you already harbor that either touched the upon impact that play in already then XXXX? outlook could the also, wins on into And what at you're safe being

Earl Austin

Yes.

and there's we looking we're when can But any book business, that ability at like think noise and mean, see to what deliver our that certainly, seeing market, I across pullback. renewable not there I work we're we how like continues. the

demand. so And we're actually seeing more

for doing And projects things the safe protected work are the ones, we meant The typically harbor. And that are we're is that bigger are do that necessary comfortable. to our really They're base safe smart, for that. equipment. the the the term. make buying long our customers harbor to sure customer And the

build XX harboring [ the as to beyond building build. and you would of, how would demand, at solar probably. you data meaningful point. generation the impact tomorrow, you can I build fastest it, quickly a if center could I this It's what build, We and you're not the don't would were find call safe far you yourself ask, the because see to And as ] you of market term. the long it. it backlog strength going And and just -- plant thing seeing just

months. XX way to no the right think XX minutes. you go one They just hear hear to now, I market to And want wants

And business. be of will so look we be won't what be It about on the form do how it. key how quick as generation I you get think that will much at

Operator

Keystone. from with will Jain of line question next Sangita come the Our

Sangita Jain

Texas acquisition Cupertino can on you So civil low the if that centers maybe? made. work for mostly that to now? Is if ask data trying you to your oriented can leverage that I I'm voltage see

Earl Austin

capabilities We Sangita, yes and Yes. Texas Southeast business. capabilities, engineering expand to I mean Southeast. it's I move not a the just have out. based, They only lot think, can but of it

can So yes, we I mean, expand.

When XX. at across Cupertino Lower look it, works we the all

as expansions business We of whole a and our to synergies business. really Texas us with in and well internally. absorb just there's could grow the So I lot synergies probably would the internally Southeast, they're Texas in the allow think Southeast expansion.

in get involved base, all industrial So that's of case. not They things. the to kinds be going LNG, different

about having And capabilities. the super so we're excited

us management we we internally of XX-plus we're to at long-standing teams is look be that go business will excited acquisitions, we ability solutions that DNA, acquisitions, our that quality externally, well, a the and when we for look generationally the of culture the so when our and civil this for when also both I are old years can we But super the And see. clients weren't solutions in for how you the looking at really business. something paramount know business, and look those to put it's and about think we that what teams strategies management and

sometimes and but see we it, can't And we there. see certainly it, our opportunities you like

Operator

line will next with question Marc come of Your Bianchi from the Cowen.

Marc Bianchi

ask the underground for 'XX. here in to on I wanted outlook

business year a the you're particularly, was 'XX in like and the 'XX. step pretty a past looks margin expectation it's good quarter, get year-over-year And a improvement So up. of for bit for an of that first sort lower as improvement showing we

'XX? So I happened what confidence in bounce was unpack and the in kind you of back what's the kind of driving 'XX in hoping could

Earl Austin

A couple of things.

was business a Gulf some Coast and us margins come down. the the impacted had storms industrial bit, the and in were half. Your We through back down

it So industrial business in gets is part of our better.

big off pipe Canada. Canada, we're in coming

impacts your acquisitions, at in. going accretive. we the growth look that then that that's when into of are some so the And you LDC And business have back it's

So the acquisition is accretive.

in We our as better going well have margin business core business. our LDC forward a industrial profile as

utility more to space, gas people back business. are put starting capital into In the the

core. that seeing back in we're the So come

things kind that's those together, margins the you're on of seeing and forward. So all impacts why going come

still But given any of capabilities electric we're day. the say telecom underground on I that into the leveraging and would gas into space across

gas people over can [ see and XXX you up ]. million there, pullback $XXX go the electric or and some that XXX move assets may of then So

the any me, I'd in not. that given can day one have to on segment, but see you So business if it's it was up

and have we like cross. two, it So does

double business in you can like not there in with do something I do get see and continue totality, to upper even still But think improvement. I I digits. single happy believe digits at, the that where it's We're we'll margin it's and or our maybe

Operator

Gus line with next the Markets. question will Our come Northland Richard of from Capital

Auguste Richard

a the lot On level, changes. federal of there's

processes. You've slow got indiscriminate layoffs by that the approval government and bureau could efficiency

up. You've got the deregulation things of potential speed and

You've potential being got solar of of the impact. imported panels another bands

your how you're wondering of on projects pushed they'll I'm to seeing potential due anything pulled easy point expectation will changes? And get these out? this at just to done, sort get what's or And it if get in

Earl Austin

we've we've the guided how it Good too to, question. could not account. to guided listen about don't been try into to -- really into changes we've minute. prudent that I how we and we've the I much and see what possibility, put head anything from it taken We've and our the midpoint. a very at think by because or were this baked be seen to that it And guidance point. down customers my we fundamentally,

And really, But in the on I we first -- we things addressable go good any across nicely I you markets, some of a if day, for certain we totality, feel to you everything impact opportunity. at and to grow business. we lot comfortable I a some is things it, of really just parts this given our continue So are term, -- don't in, happened X the hear to business of we I think that opportunity. room lot still and But and when right. a bit. look could mean, see have did there's day. growth, see back you're expand

as thing never you think, It will think. be will as never same will the and think be it happen. good I as you as bad

is, the with to outpace important. out the -- would just right front figure And thing point. it. we we'll in more demand be of And down to great get is be any to scenario, this really under have to going we that at So supply try middle how

Operator

of Your from Guggenheim with next comes Partners. line the question Joseph Osha

Joseph Osha

was last same of on earlier, look [ Duke times but week put you the hear sort out alluded there Power this as single to to are for and a way obviously, cycle thing renewables. Gen starting peak to we're combined happening and lead at alongside cycle little I people the ] side power machines,

just as wondering to longer evolve? frenzy you you same times I'm how are So seeing cycle kind And of mix lead well? on starting single side and see that your are the

Earl Austin

concerned built as for certainly I there much the single a Yes. I'm single mean not business cycle in we're us, capable and cycle.

you do up on it lot lot have opportunity back the generation We we'll there, today. edges of of yes, be -- see be around that. a So a whether diesel

will forms single think I the be cycles of energy.

and can situations up that of them and in type merchant use nature. You back things

to cycle. So way -- and is it with quicker single market

solution So do to of think project be quicker. I that part started the will get a the

And well. to So advantage of we see type the company as opportunity is positioned arrangements. take well the of those

Operator

Brent Our will Davidson. D.A. with the from Thielman next question of line come

to can go to return and Capital, Roth And ] with Phil Shen Brent. your [ we we'll

Unknown Analyst

What the to theme. exposure I data data Cupertino? center that opportunities AI back AI center your go beyond to wanted deepen you to the are could trend conceptualizing now

solutions provider. data of your that than a experiencing problems deeper center-related you you do customers you're way a could Kinds emphasized You now? that are in support

Earl Austin

that approach middle. well across that all customers the involves of owners we're collaborate utility how types help ability and on data anything, want we do move in and like clients be mean those are utilities craft-skilled. the I as our well, talk intersection we help both same well. centers stay so with as taking side, and as our things the renewables help build data discussions to of to center honest, really, more it middle It the as in we're to infrastructure, engineering, to infrastructure. them certainly involves faster, involves to with efficiently the and Yes. We the our It the

those to with that craft-skill. we've on comfortable along We the feel said feel business we up the lines end of front comfortable service in markets it's on basis of that and it, those middle provide look, And We go-forward So advantage to take our a solution. be see. a capacity a the we're and will see all and it, of we side convergence. we trying building using

these So about there's not talking we're much not with clients.

Operator

more no closing are questions to this like over turn to time. for remarks. I'd call there at the And back management now

Earl Austin

thank you. and today best this of building They're to employees. consider and I XX,XXX-plus conference the they're participating business. our your call. They allow your ongoing thank I us want the the Thank I questions, what infrastructure thank call want to have concludes in in We call. the to to the for I you. you Thank This future. them, appreciate Quanta Services. want our interest

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