OEG - Earnings call transcript Q3 2020 | Orbital Infrastructure Group, Inc.

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Operator

Good day, everyone, and welcome to Orbital Energy Group Third Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's remarks.

As a reminder, this conference call is being recorded. A replay of today's call will be available on Orbital Energy Group's website later today and will remain posted there for the next 90 days. the to hand now will call Mr. over I and of the of KCSA harbor reading introductions for Eckstein safe the statement. Please go ahead, sir.

Scott Eckstein

Hello, us XXXX the section copy Officer on the the Chairman Thank Group's Investor on PowerPoint Daniel Group presentation press Relations Orbital With operator. everyone, today's and for to accompanying welcome you, download Vice Officer. available Executive Orbital website. Jim financial results Financial review and are release third Chief quarter for and Chief quarter will the developments. recent the Presentations the and conference of of as A and Events are call. call Ford, Company's earnings and O'Neil, Energy we third page Energy Today, of well as highlights

Company's other factors to prior projected significantly and integrated its performance the providers, cause and remarks, from political the will the competition; questions. Act the Section that today's Securities competitive to factors, those answer service statements. formal operating such other budgetary changes those solutions also to forward-looking things: these and results and certain demand meaning Act on or vary significant statements. Such as suppliers of in projected and could due materially forward-looking economic, Securities could those as pandemic, actual of market and or to future within forward-looking constraints; risks contain of may XXXX, prepared we to Company statements results remind These services. XXXX, and your uncertainties cause results COVID-XX including, like be others and number made of call from Exchange Section increased of are subject amended. to products, everyone agency, amended, operating statements among in would a I to of as fluctuations third-party vary the in government and the new in and Following periods The XXA reliance will manufacturers, in liability experience the XXE of that

with the as operations these has included no Commission. the other Energy information change. the assumes which information respect and available its are forms statements in on materially update circumstances Company forward-looking based certain These Group factors Exchange and and statements affect Securities Additional are and filed the to obligation to could today, Orbital to with Company Company

time, is Orbital pleasure introduce of floor this at Jim Vice the Energy. it Now, O'Neil, is yours. my Chairman and Jim, to CEO

Jim O'Neil

XXXX you, for us call. conference thank and earnings third Scott, everyone joining quarter Thanks, on today our

we transform on to quarter, the into strategy provider. execute third successfully our Group to an continue services During Orbital energy Energy infrastructure

power engagements. segment revenue electric and solar distribution quarter, on and growth and growing electric number projects for transmission we increased and of generated utility Our executed solar scale infrastructure the a

next through infrastructure continue operating to the improve profitable, of in momentum our returning this fourth expect At We related to quarter throughout closer efficiencies in revenues prices. a lower addition pandemic consolidated as the project increase we our oil Houston, our segment. positive solar pre becoming to the which experience collectively our was from as electric systems goal year. delays The to power same both levels sequential XX% move the to quarter by Reach electric a our due XXXX. the XXX% in were overall part and of The and over in second compared $X.X power the of XXXX. to the increase quarter, infrastructure we for compared operations, our as offset revenues Orbital year Gas million revenue segment $XX.X into lower forward Total quarter as basis third time, from continue on the of flow and of cash revenues and well in and operations moving was the primarily as $X.X business services to year solar and as power revenues to continue from cadence in well to construction million, COVID organization most million throughout increase

XXXX. part, implemented to the have of commenced continuity. SG&A adjusted current period for last the XXXX compared higher Construction COVID both this most alike of and also to in customers supporting Power quarter maintaining safety million year. that expenses loss service the was of operating of primarily and the $XXX,XXX overhead standards third environment a costs net of and year, $X.X quarter appropriate to for due for loss services the and while net for everyone's second million, We providers For with net The the $X.X provide associated loss Reach Orbital addition quarter business same have which had compared the to a operations,

our XXXX this of However, are first group the And largely the segment. behind that's the and in for we for us. revenues our startup reflects electric half improvement and and are costs our sequential expenses integration quarter infrastructure solar incurred increasing, power now of majority

continues As expected procurement shortly. These we the to the do additional consolidated cash to we prior of Reach solar excess a $X electric various Construction of for Construction, end solar subsequent in backlog infrastructure that of and utility $XX.X performance projects. OEGs and to our quarter consolidated to at backlog scale believe into $XX on increasing is awarded continue on from include to increased recent our Dan that track last beyond. of end the detail stated of we million segment and earnings with currently engineering, million the the business at EBITDA into the we Along construction and were results million not the infrastructure million power solar in contribute Company figures multiple provide end next revenues projects group quarter. as on $XX.X services quarter quarter. on throughout of stages financial will positive year, call, the be positively fourth and our as going XXXX basis, momentum to OEG flow revenue our On is our increased. quarter the

the September. we until third and quarter in During quarter With activity resulting permitting on most and great executing experienced said progress delays fourth meaningful customer in deliveries, largely projects expect and the quarter, not securing the in solar beyond. growth delayed in that third commencing we around construction and equipment made

We have opportunities of solar pipeline a several significant to will that believe to growth for we company the financial come. contribute years

master owned continues construction, throughout electric gain service In Orbital US. Reach addition the and executed owned with with end to an service cooperatives was to southwest Oklahoma. utility utilities Power electric distribution an agreement for agreement Electric And and Services, subsequent transmission our Georgia, securing and in service in electric Power a our was traction investor contracts investor multiyear awarded master and distribution Cooperative to southern multiyear provider Orbital quarter

all for power will to conditions, with caused these agreements, company, Power regions. efforts. fourth hurricanes hit critical emergency contribute continue and to power we also during incremental I repairs support have recurring securing well hurricane want Gulf as provide Orbital region, ice that to In Powers we who revenue to restorations our their and works in appreciate response this significant incident infrastructure participated the emergency employees restoring very generated to assisted affected performed quarter tireless extended related their much without storm the the the into Orbital with the Gulf addition safely in in Midwest. to by efforts working during outages we utilities extremely Coast support emergency assist challenging This response which as the communities quarter both as revenues thank and Coast under several year. northeast as

gain mandating continue distribution Orbital in the increasing We Powers We're electric coming must from about and to generation as that very growth. with solar remain for anticipate in in trends Many continues recognition the industry. sources and Powers for to energy. prospects assist infrastructure confident plans a for states discussions growth and of its with segment operation in capital transmission a significant increase Orbital electric significant of to come Market favorable number services year. their this customers power and renewable remain power the are

move in onto their power our labor contractors is add and industry being the constructed of for to to useful a power from power will significant Also, system this and electric as and business beyond that there's of in such many majority services years the shortage states nation's customers infrastructure demand skilled utility these for solar We proven As increasing or intend result, transmission as to scale utility approaching throughout its more generation. believe renewable our last segment services. coal will end nation market assets life. the a perform already projects the trends come. continue resulting for of positive away is the electric of distribution are The nuclear

quarter based third Houston Turning end Services quarter. systems, Segment; of to compared Overall the at our was $X.X million, in prior of the in materially the Infrastructure million to COVID backlog end North our of $X.X at by the America price oil. operations impacted the gas Energy was Integrated

activity customers major have integration quarter equipment customers, of do project from customer nearly subsequent result, for the operations Service indicated seen plants a on our XXXX. service they in will activity the increase an projects to gas year Orbital no projects smaller renewable indication of hold activity go begin we their to projects on several UK increased in year. of where quarter placed projects we has Are work. quotations petrochemical the With a for next as We majority As such for COVID did or revenues this sampling and on although full in as request quarter until today. anticipate starting said experienced measurement large no have petrochemical capital resumed deploying petrochemical are larger sites, for vast have experience some that increase and third recovery systems extent. fourth been technicians but integration to Gas some

related new continued and principal of the restrictions contributors company Major revenues major the revenue government and UK. into quarter. setbacks is projects the equally and facing service projects resurgence supporting the network momentum the during of COVID Ireland the methane UK the renewable, were the Market hydrogen quarter. However, to in currently gas potential latest bio fourth the because principally of has

to Gas I'd gas well approved one opportunities, degree. In opportunities metering our UK the over projects early UK COVID, setbacks, tell to the were have pursue of operator. five it's of XXXX what Gas or Brexit COVID renewable Brexit efforts further into growth development operations. out and year the However, network related any four a only related to XXXX. COVID-XX our that the funding issues system momentum of of like April may or in new those UK impact start barring marks next XXXX, year able the anticipate point new out restrictions contractors this renewable the impact this in Also to to cycle we perform we gas as finish too business transmission quality earlier specifically for for markets, upgrades moderate large on

we UK of awarded earlier As this essential year. a social comprise services energy project, revenues of nine project of were company. first and And renewable which driven our this critical be XXXX, first environmental, the approximately robust result, finally, a culture strategy, integration will be by overall infrastructure Europe's in systems we the from execute gas a governance component months as revenue on revenues mainland continue bio-methane in of to from reshaping creating XX% of our will that platform

Energy strategy. On to and which industry. provides Orbital solar employed, and Group, execute April first Black-Owned the services for completed color that construction Businesses a to Specifically, this services of to opportunities trained, people reducing market. to and provide procurement acquisition be year, scale Construction engineering this its contribute on providing Reach utility to desire X carbon or advanced emissions, of not our

led company's reaches initiatives. Directors, of In addition of leading black also Further, the a be Paul reduction carbon nation's Energy's enterprise Orbital will to Board to the White, being a footprint. member contributing of diversity

disadvantaged I'll for have and dream. to access families, to color, in a be will Energy the we electric develop to jobs, and catalyst in group objective intend Orbital the identify, Orbital paying change Reach underserved we to be full will impact in test, communities renewable energy, energy American and meaningful who their to initiative to own closely Academy and power on concludes opportunities improve opportunity The advance serve the subsidiaries. underserved a help making review supporting unfettered financial pass train opening industry their working people for company's careers the Reach or with to or development first people staff their This to The people And the and the construction of our At Training scale now lives. a find good my call people other and overlay of provide primary throughout to positions its results. is disadvantaged the remarks. Dan? Dan

Daniel Ford

of during operations April was financial discontinued that of the afternoon services. continuing Services quarter while Power Systems remarks of that formed good and the services electromechanical Solutions XXXX, XXXX $XX.X segment topic million of America. Power segments. in now revenues like for million Group of included Limited includes today We structure. XXXX total Group of XXX%. to includes of operations by reflect was is addition Also, company the my This in year. Jim segment project an will Orbital QX Reach Construction in the well and the we QX. Gas somewhat as Japan third operations of sector. is here during and electric on please systems and the quarter XXXX results. Gas during September Orbital increase third CUI the I'll last speak to power with The revised environment operations. sale I review I'll The and Previously, segment customer on divested political Reach of domestic classified our was note COVID-XX, you, part as Gas Orbital infrastructure power increase to Systems my acquisition within held business Reach and GAAP Orbital Orbital Construction quarter CUI The services, segment everyone Power North I'd Today on XX, power Energy the activity remind the segment Canada the continues disposed Construction everyone. quarter energy later focus electromechanical Thank in Infrastructure during UK in business commenced third previously impact Orbital QX, its first for more effective quarter Well delays this former was solar quarter. earlier former year-on-year year Brexit the divested presented as the and following the as presented XXXX the operations. in which energy renamed reported XXXX. as the remainder Integrated COVID-XX The as former company's lower surrounding remarks. UK of the related increased compared experienced was face $X.X revenues of and discontinued as the from and the during was market the investment offset headwinds of for

margin year. I third this XXXX. for price increase surrounding is the as for also XX.X% of headwinds services to markets improvement profit was the US quarter compared we of XX.X% integrated XXXX service continue will third Margin XXXX for earlier, the The for infrastructure profit. the of the mainly projects, for of quarter face the While segment continue than quarter Gross integrated solutions XX.X% the of to to compared and oil. Power Gross and more energy margin quarter size to COVID-XX into infrastructure XX.X% $X.X and segment, The XXXX in XXXX. million quarter attributed profit and $X.X prior of expect The the to compared project was was had during significant improvement revenues XXXX. energy Reach solutions third have of gross and the to often lower overall million which the Orbital due throughout and mentioned margins decrease infrastructure but remainder segment third solar

higher throughout energy created our throughout continues And expect of with and We and quarter backlog margin integration to greater operations, projects, commencing continue significant the customers adapt the products, with margin revenue. margins increase during continued sales new our the industries mix efficiencies for environment a new companies QX services are to revenues of in Reach as to and better to improved a focused with solar Power fourth momentum Orbital profitability. improve increased group projects along improvement to operating service construction of Increased Reach projects COVID-XX. by drive expected company's operating

due million $X.X related segment costs to prior cost period, million along for with the Construction increased decreased in in and year implemented previously XX, the September to SG&A with period. and SG&A due SG&A were XXXX cost SG&A cutting services activities integrated Power solutions and largely strategic increased year offset Orbital to three related prospective included These associated to mentioned. diligence was professional initiatives, by of million fees that in prior energy infrastructure months which to to due the due increase quarter of corporate third acquisitions. the increases loss items Reach The ended to Continuing the $X.X increased partially services was During comparative measures. compared compared costs, costs $X.X for the operations increased XXXX the quarter

Jim net $X.X quarter for the quarter was million $X.X loss the for improvement QX, sequential from of XXXX; third of of this a noted loss to a net million, As XXXX. compared was $XXX,XXX

to on solar begin project QX At to positively this to year. in Orbital and activities expect attributable early expect increase Power deliver to QX existing of Construction delays contracts Reach with expected a Construction see point business Orbital Reach matter the during short backlog fourth should achieve along We and revenue backlog. more Orbital expected negatively in quarter impacted Power The believe next the QX to expenses are Reach specifically significant see of and services Given we Power is the impacted. into results SG&A increases and group. Reach XXXX. profitability earnings which higher were costs, Construction also in beginning in services continue is term overhead based services the Reach with quarter

power over year of and XXXX, $XX.X backlog infrastructure upon energy and $XX services backlog September increased consists and the Orbital from due million XX, $X.X at At million million to $XX XX, the year touched Power. at $XX.X services from and electric segment, Jim Reach's inclusion is from infrastructure solutions earlier the of the million solar to As XX and up backlog million our segment. growth from XXXX, September integrated June

to Orbital Construction see Energy long group. challenges expect the despite revenues term it to and continue We earnings and add substantial of will the Reach benefits any pandemic acquisition from related positive

online some its manner. a mentioned quality, results coming next processes While as seeing other in its Reach's provide have pushed safe, project based of already year and the effective is some because Reach's are on into back repeatable cost previously, projects we projects proven high fourth pipeline quarter with customers predictable that's

the during Reach the on $X Lastly, at restricted continued of QX QX, PPP third a of activities million which payable. QX, compared and $X.X was cash with million cash From $XXX,XXX. of year-on-year and QX, note Please was use has XXX,XXX in both quarter of Construction purchase. standpoint, was $XXX,XXX, and In provided have we notes approximately $XXX,XXX, in $XXX,XXX its million the QX, during outflows in QX during the cash million used payment in $X.X basis. end company of million included and of quarter. note acquisition and and in million result the million. funding during cash the was QX the cash allocated to $X.X receivable, the received amount activities and investing quarter primarily that operating equivalents cash compared $X.X $X.X with quarter, in a the with by Financing offset compared to utilization sequential $X.X QX Cash first with the used activities reduce

capital the payment flow to adjustment purchases include the pertaining into to cash work delivered, services. to Some power of for backlog contracts in and cash through from related Power period improve the the term, expect month company on other and related pushed working we its backlog working Reach and of Longer both continues Orbital nine it notable COVID-XX sale acquisition, positive be delays, project QX. deposits based The Construction orders cash the capital generate changes flow and that XXXX power and works during business, to manage on items reconstruction, Reach usage of of capital. equipment, working delays as to and the

its the bolster half to short expenses. the In take Protection the if management to the in entered disciplined into amount and our million principal year, unsecured approximately full, certain working first of loans to of and are loan subsidiaries steps continue the both liquidity conditions pursuant term aggregate met. forgivable, capital is of in partially We $X.X Program. and or The company including thereon interest Paycheck accrued

for to we the filed at as time to plans up registration have this also our markets. all a time no back keep open $XX we avenues. We potential options a Well, to million. to shelf at prudent in go this explore was We July felt the

Before sale. Canada which of Jim, and I CUI, turn on an provide previously back I'd to for CUI assets to were like over it classified Japan. as update held Both

operations still for and XX, electromechanical $XXX,XXX September Porch subsidiary back assets gain held book XXXX, the seller remarks. a I liabilities to At the will earlier, for the XXXX CUI and XXXX, to and for power call small completed Japan CUI company closing in the September now approximately International included are XX, I'll these sale be As fully of sold expectation value. noted with on Back sale Canada assets the exited Jim over over financing the its previous for that company its the turn have operations. the will of company of

Jim O'Neil

and has utility at scale Gas services provide and community is Orbital the infrastructure at Orbital positioned company Dan. services for to solar provider or from systems success. This the Construction has business future Orbital Throughout to development In a eventual economy's position recovery. benefit you, our well we and into team growth continued pandemic, Energy to activities the transmission believe OEG Group Thank targeted distribution services transform been the Reach renewable revenues. this summary, Group through and diversified pursue to projects, to accomplished development project of acquisition the Power and

we momentum to to we And Group capitalize point. moving progress at Orbital Energy an the made is forward. this we've on intend believe With inflection date,

and environmental, energy as exploring. extremely our expected the robust to targeted taken customers we to existing infrastructure capital The years replacing continue We we scale infrastructure solar deployment markets want to take for the is transformation thank but The and and acquisition steps safety as protocols. the of our products is or have of be to energy governance, this ESG and utility social opportunity capacity keep company our to commitment be new through we building and all employees. several distribution platform, culture for an opportunities, transmission to and I a expect also services and expanding ensure both health time, infrastructure positive a necessary service contribute to we constantly business for organically our same we priority reconfiguring the serve are and is to that we a thank the come. outlook into and capabilities their their which At scope environment. exceptional services, deliver and grow strong leaders infrastructure executing safety will to cleaner, will this of customers and partners to platform. for as integrated provide employees I our while services not our want healthier least, our a for Last continued for continue support. building

for to our of be social color agent we we and remarks. of other opportunities responsibility, industry commitment We terms That In providing take underserved look people. serve an change this ESG for of very seriously an industry, or our prepared leader and disadvantaged employment concludes as in intend our efforts. people to

open please to like the questions. Operator, for go I ahead. call Now, would

Operator

Capital. Street ladies Our Instructions] Thank [Operator gentlemen. Lake first comes and with Brown from you, question Rob

is open. Your line

Robert Brown

to solar just get Reach on a bit little projects. pipeline want of I the

maybe a this could are the be And pipeline how bidding and projects of And point? projects price there continuing? how projects? on have you just you're those characterize at [ph] long on you would of long number visibility said You the

Jim O'Neil

between of XXXX. of out And year. move we million come Rob, that executed to the on, hundred as opportunities opportunities expect end And and believe we're to dollars' secure. into about talking worth can we more see that we several opportunities we be now next we

But of projects when opportunities this just solar in the increase to their activity, go over continue commonplace to construction, and pace continue canter generate only so that and forth so business. more the So very permitting time. challenge to is and of will we issues these revenue will much on,

Robert Brown

in of do electrical see infrastructure? -- And time? business, your that much Okay. business playing maybe business storm just power you And was -- was [ph] the of then, mix the work, much how how how terms out T&D over the

Jim O'Neil

to take mix much… on Dan, that, want You the how of

Daniel Ford

is the XX% mix numbers of XX% and me. I the don't about would it XX% would Yes, exactly XX%, was have the what Sure. But XX% schedule. about the in say, storm quarter, I to to during front I rest say was

is forward, Going to think works. I that and question for how address better Jim a

Jim O'Neil

Yes.

necessarily MSA be work increased is won't I in more your revenue of work but that to through be put the too, crews did going generate which it near we comes we've in the meaningful. something think But are recurring. where is this fourth anywhere more can quarter time, were storm be the third. at storm in number same you don't We forecast, it when the it -- storm generating

incremental the second most would as of revenue with third, the highest quarter, see third the growth all, the in the Typically we happen. So long that positive does well, all an most -- storm of storm be see business in we should second, in in over probably haul that it the when second and storm being quarter.

Robert Brown

then, to is it still pick loaded is visibility sometime it it early really type back at and on activity? tell there in this next there, that pretty year half get or you're you US gas like the is saying Is that more And visibility sounds again point. too the up good the infrastructure when low side; can

Jim O'Neil

end more what's be hope because going not six engineering which to North will done, is the to I happen week it's back start eight American operations time lead half by week happens. visibility seeing loaded mean, I about construction in hopefully the we to year, before activity, our needs a of

path capital to use And and a for not renewable in projects. opportunities some other of opportunities larger hopefully, Houston, by gas right in here we their now and much we'll that these see. are customers it's XXXX but is UK, rebidding of the waiting and plan budgets the the better not I So, good the think end in with now visibility have five-year that year, on UK than visibility see gas do network the right we the the

Operator

question Next comes with from Eric Craig-Hallum. Stine

line Your open. is

Eric Stine

in knowing So you was uncertainty the little but there can maybe you the wondering you you fourth in mentioned XXXX? if around on expect looking expect the that up like, some then color pipeline's timing still what also, Reach a type is step quarter, of might provide But there. uptick I that

Jim O'Neil

to Yes, in back year. been delayed of projects, I But quarter to when significantly, as projects order for trajectories We've in to the that's going be -- us the to the we're of segment see bigger store But, this growth we electric opinion, into power infrastructure have more next solar this had profitability my -- of year. due revenues to ramp to -- permitting. going in that of segment a we both magnitude at the point, quarter million a us; million take to in quarter. to from the be had back to in to to the significant mean, the solar infrastructure I what's growth do what in our moving expected the execute where call, experienced half is experience is a had we're some second here, going $XX third better this profitably $XX we and quarter. quarter expect we going than for fourth fourth couple revenue move solar

each those in not in see quarter But year, but lot gain, we into next probably we'll more a some meaningful fourth as ramp as growth percentage of or So the get gains numbers the we significant quarter. to expect a I revenues. I think,

Eric Stine

to turn Maybe plan. to the it. got Okay, acquisition

I -- that potentials mean, some the potentially that think looking, I may you're you one the got end quarter you by you of said last may you close year.

So that's start the cash what curious the case? of bit you And a outlook that and But what just if then term? that that the still balance also, balance? until a hindrance building flow is sheet get longer is cash is, positive

Jim O'Neil

close electric growth power opportunities up. great and experiencing of we're that's move teed several year, solar looking year. targets And significant into we of these because our we that Yes, segment were next did question. to We've some amount a of acquisition potentially the this we'll in that that decide got

that this right. teed we bring to year. time when candidates on another have acquisition likely we it's the But So won't up make is certainly board

Eric Stine

two said I -- to way level, a that I past two you've the think should that high year. mean, to in about it? And three is three think still the people

Jim O'Neil

year cash infrastructure, either opportunities that way. through service companies that on to and to we We two bring positive a expand make number or and want geographically good is it we to would provide to grow a should people acquisitions. lines I portfolio want acquisition, for flow three think our to Yes, that mean, today, we to growth. better add of and profitable want and have

is So it's us. the definitely and two definitely to year three part target of for a our story,

Eric Stine

thoughts, is Got just it. And -- is positive mean, then early But XXXX, time? not is. up step something lastly, in just or the much an how a that -- think for something by end of I is year, you annual that EBITDA XXXX? number more on to and predicated there maybe flow this guess, confirm, cash of I the so is by

Jim O'Neil

electric we expect Power our to the next be Reach Power to some We in Orbital there the be in T&D growth Services and early continue quarter in of significant that'll year, first infrastructure Electric segment. solar And And dependent Group, upon the growth construction. power XXXX. and see both, in

Daniel Ford

year… Eric, two the Sorry, timing acquisitions you were asking to on three a

Eric Stine

target. timing cash flow on No, that positive

Operator

Riley. Our from next Burke B. Liam comes question with

open. is Your line

Liam Burke

in step was and you contribution storm get restoration? recovery much how up sequentially from ramp How and you in second contribution business saw the gross of much from project up Dan, the or that your or margin improved the Jim quarter. did significant margins

Daniel Ford

its work. margin days, considerable T&D group going billable out coming long the the and essentially from especially the leave and getting they storm whatever overall, know, yard work, saw time. very of state paid to you high-margin they're working the long time Storm with crews out be in We to region as hours driving or is

-- the the to as well very that quarter. margin. a contributed certainly during whole, So But really project, performed T&D positively the

that So the But storm group and of there. in into nice bit mix it a was work boost a segment. a that definitely provided

Liam Burke

revenue, into to ramp the storm So thought up the to process, convert should improvement? quarter, without contribution, even just continued if same on from as gross I backlog fourth margin the and you projects, in look translate trends

Daniel Ford

The teens, are are whole. in The generally in certainly, profit more a contracts solar much scale, which projects, gross gross are whole. the a as margin. have significant lower In improvement, larger margin profiles EPC overall, but as profit

group provide growth not as lower be it. T&D, positive to will by expect continue group, see a to there. pertains as perform its to the a say, solar impact will the revenues mix I the we and in would the But that growing growth margin that that we be projects; of it'll the a that I think value be from So margin It's exactly, on to so, and T&D it mix. impact as solar and the revenue margin split, offset

Liam Burke

on on to more then one And T&D. just

how signed, nice that visibility or You have does two on look pipeline MSA business? agreement the

Jim O'Neil

mean, That a the of like an multi-year it's basically do become to secure. And visibility is pretty day. customer. work employee I And get your when really you good. MSA every crews that, they've like almost got

the the where fact, very count terminated. is that industry contracts That's be revenue will period. often and how in the revenues work that confident predictable. industry that the I recurring In that would They it's be estimate that's am, revenue is, very not multi-year over typically backlog. And what and that those MSA will seeing

and that, on to were continue than continue crews to into we when roll cut think distribution in XXXX MSAs work history but don't back leave. that all those the in where it that the my happened went in crews, back of the system they recession, just MSAs, and I utilities industry, other

Liam Burke

sorry, I'm Jim.

there on if any I is meant, On pipeline the new visibility MSA, agreements?

Jim O'Neil

-- going an function other And would -- sorry of safely, guess customers, these under more some opportunities investor a within the add in probably we to we participate utilities us two it's I would quarter, work are agreements have like next discussions that there we next and agreements; into more before that or new a of of at co-ops proves one utilities -- with but that of with MSA year. good two owned agreement history on able On or are competent execution. we're take or secure to we're we'll with that MSA them. being us

Liam Burke

Jim. you, Thank Great.

Operator

Our next Jeffrey comes with Cowen. question from Bernstein

open. line Your is

Jeffrey Bernstein

of have and point, with very to or hard A you those? grid on going ran forward you been on couple like Is still busy. for historic Sounds of has relationships come ENGIE. the the and potentially all any out that Snam work. at Thank just of some limitations the statute questions UK

Jim O'Neil

there to That's hope a we've play will long Jeffrey. and question, delays. those have that be good I But opportunities we been a mean, time, for just continue that waiting out. for

And been that for believe just But we've amount discussion about it's got already. there's significant a I happened deployed that more, Snam, yes, situation. but some ordering So, are meters of a there yet. very some fluid hasn't

Jeffrey Bernstein

And etc. PT, then utilities Got renewables, post-COVID the it. out gotten everyone the to message we're energy now hydrocarbon all planning -- is on and has gas seeing think now I to the that move peak

tons when they value you. through these to if into The are great How backdrop the guys does mostly hydrogen infrastructure gas they start gas this market who there, how trying it's have in for put of hydrogen. calorific utility measurement all, Nat it So does a apply participate systems? figure and obviously, world, [ph] out at to want to in

Jim O'Neil

integration in have are the bed. the we that is building the projects you The opportunities gas. hydrogen-related. for to bigger some tell integration opportunities I'll that is going in to forward, of in the have and us that opportunities especially PT we that many gas bringing released to get UK, group in of device, go renewable And when it one that those our

down But the our projects the the US differentiator to both in are, somewhat those gas and where coming seem in us, to company. but a that's opportunities in market. that's big for renewable So slowed UK for have been

Jeffrey Bernstein

Thank you, Jim.

Operator

I'm the back no Vice to time, CEO to questions call over further remarks. queue. At showing Chairman I'd like closing O'Neill, for and the in Mr. this turn Jim

Jim O'Neill

follow-up all continued and in today you you forward call our in Well, conversations many thank and our on update having look with Group. Orbital for And Energy of we interest you to your progress. for participation your

day. and a great you again, have So thank

Operator

this Thank day. good gentlemen, call. you and conference concludes participating, disconnect. Ladies may Have for a you today's now

Orbital Infrastructure (OIGBQ) 16 Nov 202020 Q3 Earnings call transcript