PRIM - Earnings call 3 2023 | Primoris Services Corporation

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Operator

Ladies and gentlemen, thank you for standing by. My name is Cheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Primoris Services Corporation Third Quarter Earnings Conference Call and webcast. [Operator Instructions] I would now like to turn the call over to Vice President of Investor Relations, Blake Holcomb. Please go ahead.

Blake Holcomb

Good morning, and welcome to Primoris Third Quarter 2023 Earnings Conference Call.

prepared and Tom Officer. Ken with Chief President today Officer; Executive Dodgen, me comments McCormick, are and Joining Chief Financial

and we expectations. and our results the from like are certain would our statements uncertainties. made uncertainties company begin, Actual everyone call certain These to Before of are our reports various this aware and forward-looking cautions to that materially language subject in harbor projections may with safe make in risks differ during and statement. are The discussed contained filed I risks SEC.

outlook Our forward-looking statements, statements of law. November represent any by update required our X, disclaim XXXX. these obligation be to as We only, may as except today

non-GAAP are was A financial would third financial these turn non-GAAP during and on our press available of release, measures. which issued Tom McCormick. will addition, In conference certain call, reconciliation measures this Investors XXXX earnings our we the website to yesterday. I section the quarter call of over to to make like reference

Thomas McCormick

you this record financial and quarter Good to quarter profit. third Thank you, performance. our discuss deliver to QX and XXXX revenue today us for and surpassing of Primoris, was morning, another joining for QX for operational strong both year another results Blake. gross thank

We consecutive approximately also $X.X backlog quarter hit billion. from total a second Xth new to quarter high up the million for for a the around $XXX

clients of deliver relationship been milestones consistent, able as trust to in earning our execution through partnership positive order have and We to these each a achieve safe the outcomes. approaching customer by

in our accomplished performing employees day core each can this Of only emphasizing be our course, their duties. principles with

ability midst a they In focus and each on execution at congratulate for customers for manage economic shown challenges, and and high good I want geopolitical the uncertainty level. and the other, business have do we for thank our for to our them all Primoris. of to

we believe over controlling power in similar our to years, the in economic will safe, continue of solutions the in remain we While due a on and U.S. the in need investments to Primoris future. the communications. With to control, and to the The effectively with have economy, manage demand and success global and portfolio can through believe to continue the can for we that competitive that resilient past we to emissions things renewables, we we are delivery to have ambitious provide mindful a several growing reliable order cycles many and goals we invest energy. industry our more global economy infrastructure centered mindset meet of cost-effective in positioned to risk

go margins issues into from weighing Now nearing Gas the primarily These additional not I'll discussing on year-over-year XX% and revenues an Starting work legacy pushing certain from PLH the in closely anticipate also by operational to top of in these with improvement reduced the decline move and year. Gross revenue levels, decline the of Utilities they slower our of from effect. PLH XXXX revenues. There out are a year segment. impact driven power completion, rates This activity, margin are delivery cost some completed month lower margins spending utility on the gas business. storm by and seen to organic margin by segment, power of was XXXX. on our from part on by and once declined new impacts growth in XXXX profit we and in and customer adjust have the been has but we do delivery. season negative contract minimize encouraged driven more work performance the to line growth we in contribution lower projects utilities saw projects compared nearly compared to due from ability Coast, prior in for West to a customers were our to previous MSAs

key customers challenges our impact legacy or rate power work and the some had MSAs delivery year. will goal direction. we of fact, signed agree on project next In projects, new with begin X Despite to PLH is in trending have to the to more changes right win execute a positive that in

securing year, We the compared margins help was projects profit declined the year, of our projects of completion largest more top have are revenue in weighted to the to this the in more sequentially by to the like attract previous forward but revenue more due of future last and the Primoris' year-to-date the that we to than spend Communications history. We first doubled compared to substation of successful timing talent. our and non-MSA one and look year. gross improve nearing to half saw improved customers major

base. by are rapidly manage diversify in to to and continue with We to customers encouraged Texas the market are client we expand and seeing growth the growing new our engage

away quarter, personnel market. our in at a of expense negatively customer payment resources not we out margins desire our the demonstrates the were with balancing elected and from ability cash grow the flow. that line to to but allocate decision line, of also and impacting During terms discipline our or This requesting top

and quarter, for renewables by year. growth quarter margins. third at margin led compared now quarter the segment, favorable in our Pipeline execution with has the delivered Looking consecutive revenue Energy primarily second we pipeline and solid to project outperformed last expectations solid the of another and

areas we on are best expect quarters, and X from a and not. are market, pipeline areas organization these revenue rightsizing with the opportunities the the our in past that margins margins business generated the of to we maintain in midst and working focusing the the For difficult

are seen conditions we Our are to to making we is and critical toward seeing in a than $X.X businesses the opportunities decade. the having success, many ability civil are market haven't heavy in opportunities We and industrial in see also in we growth success, changes backlog of approximately results to more coming emergence our businesses the the for adjust sustained this to in have quarters. and in continue already we market progress that and delivering billion expect. The these

in the high we XX% and higher fit many months, of within are it's out these I our the ability but that more point identified that of course expertise, not fact to projects, construction. the engineering billion core projects of which volume to confidence $XX a and well our have than XX just in us would industrial for like of success. execute giving with the next opportunities, degree of Over strength

high from and to renewables also year, also activity gross part the profit Energy reached closeouts increased the and opportunities record Although to well several the remains due were high multiyear on projects. Cash sets successful we us for the we as the for positive to previous quarter we was that be the quarter, best to be during successful and in increase up contractors up contributor and are out further and all up cash contract maintained convert seen the our pursue, backlog a to the we horizon. solid in backlog gives close $X.X a choose to year. to a demand of not Revenue believe receivables. as the on business reflect our on billion, win track We in the segment have on renewables us period. Wrapping to approximately proactively segment, projects we selective and It quality managing in and the and sales are do of our we materials does it projects overall. the level over clients for Primoris expect funnel, is chance generation

that begin booked now have expect work will focused to booking on We the XXXX, work and the backlog and of XXXX are majority we beyond. execute in in

order build We continue in to and out retain meet our demand. to top management teams in seek to work the talent growth to

We project secured team scheduling gaps our broaden utilization. to maximize our also base, work clients avoid new have potential and with several in customer

and be solar well Our such our delivery by substation battery beginning are pipeline we adjacent opportunities remains of make high-voltage in headway as work, which will power to as and executed as business. storage strong, areas transmission

an responding we are renewables to in to we business, some want position of how to the industry We our also to and being are in but effectively challenges them. the acknowledge discussed navigating and excellent continue grow

there's from to industry Higher large returns involved some or capital to challenges. We to has developer costs interest access developers will in impact to great regarding higher the or the of and smaller believe to affect higher cost lower rates market. of solar lead projects greater the the or deal concern canceled financing negatively and access discussion being of some these the to potential First, due rates developers may opt larger those lower companies solar capital. remarks divest robust some with as including more of a opportunities been to and how may delayed projects, benefit

high-quality with supply forward move and of we have Our our will and as market, some that impact. There's chain equipment materials view business this the projects are align challenges the to for constraints future. more high-voltage could growth particularly critical minimize globally including to the in the is some also capacity times availability and could There need developers this continue that and and constraints for best in even voltage lead projects, order well module to challenges to in continued demand necessary face as with switchgear continue items, high customers future equipment the impacts transformers a breakers, is for currently growing production and interconnects. meet facing matter

delay supply customers of persistently occur. may and find module stay are working unexpected ahead to and projects We prioritizing alternative an resequencing solutions this where by with

keeping earlier I as into potential begins will development, overcome delays did challenge the an being toward talent. in challenges. business to our we additional and eye our delivery to for acquisition This prepared throughout impact disruptions planning dealt that to industry that are lead of are high-voltage We event of when and last to mitigate the to we experience regard in alluded times working XXXX to future the chain supply the us the retention and module XXXX. The enable is longer equipment with

We are in quality project at management a landscape competitive where is talent operating fast-growing industry a premium. a in

us self-perform work on their to generation developing in has and and for project plan key to train in them to invest worked is people our ability partners execute we the customers advantage managers our believe and those our is true the to execute helping time of success. resources We Primoris projects teams made next Our our to way. Retaining projects. something

attracting talent. our to be asset, approach been industry a we that an and building is disciplined fortunate has are to Our in huge teams

high be operating a compensation margin we upward ahead. mindful with on erosion and to order However, discipline to cost years in of efficiency occurs in the pressure must prevent as level continue

some have on these could of issues summarize, existed are which the To industry. if the an impact

results. choose we impacted Ken these by However, work challenges. I'll will that the financial for our customers and prevent to over chain strategy potential being turn supply plan now labor with confident materially more ahead issues and and to from are right on us for our it

Ken Dodgen

segment. in year, delivery, in operations. Gross power by up double-digit Revenue little third year. Energy a from partially compared everyone. was year, higher driven approximately from an increase from and X% down growth segment revenue the XX% the the utility our and civil in gas million year, prior of $XXX the in for morning, by million quarter prior the or lines: for and margins $X.X Good by $XX $XXX margins profit slightly from prior was for improved the Energy gains driven million the by renewables, up the were in to million was to an the increase was both XX.X% the the Energy driven billion, volumes over year, quarter was over $XXX primarily million, of growth XX.X% offset segments. The across slightly $XX pipeline, XX% due which third or prior or all gross The Utilities lower prior segment industrial. business quarter, primarily Utilities Gross

challenges pipeline our margin legacy in the quarter, SG&A projects. over delivery revenue year. segment million with our gross we can The $XX.X incremental these the and to benefit was compared backlog projects lower the led contributed support margin our in equipment XX.X% In the from were moving higher of base renegotiated business. compared driven look and project gross tailwinds as quarter. costs challenges to year. We execution another benefit rates, during gas positioned increase at of a was revenue to in productivity pipeline business over million the on higher These the the improvement XX% or by prior utility margins business, due factors performance increase for $XX.X in believe and renewables from $XXX overall delivery The segment down This, $X.X million, the up declining year. SG&A. the certain to prior or and into Utilities improved million results. a Expenses margins primarily the as The to was was in the some combined Turning increased past Gross volumes are XXXX. In by renewables $XX has year. XX% gross that project business. The and pipeline margins closeouts also XX.X% PLH gross year-to-date quarter renewables from for be headcount. quarter our industrial an driven that attributed completion million, our businesses. has the to compared prior work XX% and the XX.X%, profit XX% growth mix third increase impacted in Energy margins higher segment to prior in combined year, $XX.X to came us in segment, primarily markets prior solid strong solid the profit of and continues Utilities The utilization profit growing well segment, at to to lower-margin decline Energy heading improved to over and gross and XX% million projects, power the well in in power of in the increase our XXXX. Taking of an of the over with on

However, of to X.X% in of the last X.X% quarter year. SG&A revenue decreased as a to third percentage compared

million our quarter prior compared a the rates. debt year interest to in balances for expect revenue Fourth We high to The and million be to average SG&A expense the percent in the X% X% low third interest $XX.X due increase of $XX.X Quarter to average was higher year. the full range. Net was higher and as in

We expect to interest our expense $XX will full year million be million. $XX

which was expectations line with Our in the effective year. full tax XX%, our the quarter rate for is for

$X.XX changes revenues was higher taxes. and $X million jurisdictions discrete offset higher revenue $XXX income, prior year, was to acquisition, Adjusted year. the However, costs and income previously impacted with mix due from was and $XX operating million remainder this higher from the down million primarily of year, up was prior or other Adjusted prior an year. Net in be tax Adjusted and operating by items higher higher per to per rate for the EPS can by diluted offset the $X.XX tax primarily $X.XX tax partially interest quarter, higher the by to share, for PLH mentioned. million increase interest by associated due partially EBITDA the profit driven rates or income. of from $XX the compared EBITDA XX% increased gross share,

in flow. $XX cash operations $XX cash an generated to The over increase on cash We the Moving million the flows of drivers operating for from in of from year. primary million cash increase with QX, million. continuing priority debt are were of improved top remains ended a an capital, million $XXX.X to which and progress. make working which we the quarter area prior $XXX approximately and We of net

of third was ratio end the X.Xx net approximately at around down last XX-month X.Xx quarter debt-to-EBITDA end trailing the from Our of EBITDA QX, at year.

a the renewables, mostly leverage backlog liquidity XX%, billion up of from project at our focused Xx our record. QX billion at industrial the $X.X but range end XXXX toward our position flat around and in in to an from backlog Energy civil the year. of XXXX. Total to around million of wins. MSA segment be over due of was strength around to end billion increased or to by $X.X around goal in on backlog beginning $X.X to primarily up Fixed another of $XXX prior heavy further $X.X billion, continue remain reducing billion, was and compared the and the increase the year, XX% compared of We below approximately quarter $X.X strong

per backlog convert EPS backlog and our Utilities EPS are guidance, to of adjusted share. $X.XX of into quarters. Wrapping up Energy next over per XXX% of our revenue our XX% to $X.XX the expect $X.XX and $X.XX with range X We we reaffirming share of to

year for XXXX. We $XXX EBITDA the are million guidance full adjusted also affirming of to $XXX million our

revenue first EPS, quarters and for expect ranges the the year, However, due X trend and to our EPS in forward of guidance strong adjusted we the our of EBITDA. the half to adjusted upper earnings pull of our performance toward

As and of expect closeouts is customer we fourth to expect normal to revenue segment depending quarter declines we Energy projects seasonal our in project weather segment, third pipeline as are mix spend quarter, our timing be typical completed expected. of impacts. sequentially, increase fewer In to revenue a Utilities but renewable with the on less compared favorable our the and are

stages, across planning the our are year Tom. that, businesses are it XXXX. With record another still in continue to earnings that see optimistic and Although that we of in revenue I'll to would we improved over turn most early we provide back will

Thomas McCormick

Ken. Thanks,

take we takeaways questions, from some the to I'd Before summarize key like quarter.

obvious drive to both our our valuable level. in efforts a employees year. on metric, Safety culture a the X they existing ability great want an factor also high First, customers. highlight the continue that the most not to for the safety We is emphasis is at and through I asset. of continue again to for because the to into working productivity, employees' place of our want It customers and only are attracting new We quarters first and important delivering reasons, but our overall a are critical company.

In macroeconomic across the Second, of underperforming margins a improve getting to working are while acquired. many projects of seeing delivery lot positive we market, segment, growing power challenges, by from contracts Utilities are and benefiting some we our despite momentum past we businesses. a

are a to with great in and quality that margin year impacts path down we ourselves further we the winning and will set company ability QX. progress benefit the us the operate challenges this the contract our us in several moving ultimately flexibility past hard growth we down impede most excited as project our despite which strong XXXX. I successes and seasonal potential years. to backlog had and and the we to financial in great the finishing operations adjust are will we customers, cash improving productivity work in position and believe worked achieve optimistic debt each segment communications slight execute flow and of industrial that profitability pay the we of confident gain we ahead all achieve to our has This the of and of and and a in for consistent, for to work each are while and the and slow of to Energy are a the allow market to for momentum require ahead to us expansion the about we have slowdown are in each and also shareholders. are In potential with clients am effectively goals great improve gaining share for high even in could working attractive businesses, thus bid, service We in by that continues set lead of and goal operational an flow. employees Primoris our shared lies will significant XXXX. The to make managing executing over solid proud Continuing execution. we gas the businesses, markets of have path in renewables, us generation projects. In delivering our business up far, stay better that to cash believe we investments a XXXX and successful our a our managing down on business in on approaching or

the call open questions. now your will We for up

Operator

the of from first Your line Instructions] UBS. question Steven with Fisher [Operator comes

Steven Fisher

maybe the been some you margin that in ramp big I Curious Is just seems helping have those higher big margins. and PLH it QX up that that, how Utilities something already could implied the there the in the that would to the give that of is else QX midpoint the step were on expected is renewals, on impact I'm if up impact a the because QX. of wondering margins what if excluding quarter was us implied? wondering just like projects hit to pretty are range. color MSA

Ken Dodgen

normally few But to lot of think a of basis for million down just what margins was that the the kicking behind customers quarter, most but on they our by were revenue, got expecting. points that XX for of we timing took winter impact we to we've us us. the dollars holidays. Steve, XXX compared are lower, sequentially Yes, QX to it the down are, a be shutting going in due like and to

utilities So bottom to range. we're expecting the end of be full year gross our for at margins

Steven Fisher

in Okay. That's segment. And I'm talk about happening if could you gas helpful. the what's wondering

outs. you just You've of give and color a push slowdown mentioned little some bit there? Can some

Thomas McCormick

It's probably that was really just bit. see some a little work we'll more push out also. And forward west some pulled

a basis, when or their service at was possibility a always some that reached a their we spend want decided budgets quarterly spend, done a really this them. on last spending work year. ebbs They've to, when to to provide the do Clients, nothing they it's all curtail major. there and there's for this end work earlier look It's money the their the So you flows. so down. slow do to they've that towards it it of of -- this on year, part year But decided they either was is

Steven Fisher

then Okay. last. just And

renewables. bigger right? How developers confident that you the you tax proceeding out going I the How to work of as dynamics booked of about all rules? You in were mentioned? risks own mentioned terms there you XXXX of smaller relative any around that of the clarity that your rates are within and ones, that in you given for to mentioned Do you delays feel some business? those book to speed interest see do the you're are some planned, know

Thomas McCormick

so. I don't XXXX, For think

with been before sign their involved partnered contracts. we've those We've reputable. months good are. projects I for with projects even comfortable very some we very very the with clients, think we're where And

We are the know building. of components the they So where facilities where the respect that the to know for we're delivery on they with we respect projects. key with to position are financial

remains we're 'XX. think it but seen, comfortable pretty to be see. with we'll 'XX, I So

Operator

line Lee the next question from comes Your Jagoda from CJS Securities. of

Lee Jagoda

Ken, closeouts as look additional And can QX, quantify I margins expect guess, that could you first, are to we closeouts positively? hit there the in any to renewables? you out

Ken Dodgen

I renewables. on don't in Lee, numbers, have the me front exact of

it anticipating project basis now, we're for in right margin significant XX not quarter. I roughly any to that think closeouts segment then contributed QX. points this And

have a QX, QX actually projects that up in We in see QX. up compared in lot probably is that of to going are be to why we'll which starting segment sequentially revenue

Lee Jagoda

some the Energy. I you QX versus mix And in think mentioned of was maybe lower QX correct? margin that in Is

Ken Dodgen

Correct, yes, of that. because

Lee Jagoda

you. Got

Just anything over flow. about on flow? seen should as flow contracts we the the level last XXXX, smooth going free out in stuff changed the out has cash that free cash relative we've one to some that the of this help look to versus start to And more that year generation of How you're should QX? think we then cash

Ken Dodgen

be within within continue But No. on To segment, based Energy relatively be the Utilities seasonal and of is flow going answer to think completion to cash I projects. your going segment. last to the question lumpy the it's first, starts

QX, to see are With all could similar strong year, in years QX, not together and we're is as free as And I or Last year, not it's some respect going new everything was high some flow slip uncommon projects came of last going timing seasonally to in QX. QX. strong we our into all benefit cash at depending to I of it kind QX be to did have on believe what which cash we just as projects of up, think year. this actually the ago. we completed whereas had X happened seeing starting flow, and

Operator

the comes Jerry question next Goldman Revich Sachs. with from of Your line

Jerry Revich

your to up It's changed for nothing Can line are talk where if wondering you to top next I you folks sure has could crews risk factors for a in or the planning conversation. at you that contract I what included that for set want sure in margin year? And were folks that? mentioned the cautionary you business? of industry. want the your that's a on terms more given don't for case track on of in ability impact have the folks you the I just about, when you just separately, make number of function that just happens to make crews been historically. any the still plans structures remarks are And us at earlier ramp it's I'm impact think you solar you the update profile. to Tom, XX delays of up least year-end.

Thomas McCormick

I'll I answer forget sure changed same But we're we pre-investing also We're client remain still they have responsible your it. components in not the contracts. obligations, protections. first in still last the our far for. question materials have the have to so that But that our language some doing don't make still We our we the as as and contracts.

XXXX, with of in the pushed they're seen we've that up We towards see I them so we're XXXX. fairly either, to ease ease and the comfortable have surety have pretty supply issues, think not it us or going aligned to that us much delivery clients changed even expect up those. And clients haven't of they really to -- improvement forced and end

not to will and be; it's expect our it an is, it we if risk. issue, even that be and don't hopefully, So not

support and are yes, we're our on right we've on parts track. at growth -- And trying crews of is year. board next next year, grow right to by those needs. looking end to we're -- based our in and project some now, by The XX board we training. We're already them crew on and XXth to teams the first got XXth And got racing our to place that the question, We've the expect year just have this crew of growth we'll build we end on what year. of

Jerry Revich

pipeline then good on outlook in Can 'XX. to mentioned, on the just renewables, be And constructive pretty it Utilities? sounds that as Ken nice It the like growth Super. hand levers in to Utilities, you have can but you hear expand mouth.

on 'XX? So the in you remarks visibility to what that constructive visibility gives is the margin alluded growth improving prepared you profile for the comments or

Thomas McCormick

One is that. definitely

took those -- that these in with think had some 'XX, XXXX. of into balance favor. our them MSAs went I the into working in effect We in effect that renegotiated, of go we've

is, And we've expect 'XX, within group, of improvement The as other close we're we margin seeing now, as changes talent. lot we brought thing in power we a to made lot it our of seeing a out. out seeing -- delivery close when we're start

You them. But carry on on, with the they're to that they've so lot projects, whole XXXX. we to troubled through expect can't performing you've got taken do work get new into well, a in that

extremely performing is business well. communications our think I

they I was flat we think draw up let we'll be and project of not our part. In We some well-performing -- market and in most a for work perform sometime that on they and step for a business with probably in finishing extremely gas, business. see us, had me It's them and well. finished a they increasing see we maybe that group, during one Yes, project the in that's growth power that. behind it's us, our but the that job fairly little course fast-growing the XXXX, delivery year bit and do. back for them, of a they're say

Operator

question comes line the of from Davis. Adam next Our with Thompson,

Adam Thalhimer

solid a quarter. on Congrats

you a about of flesh just comment You out that made little $XX Can projects. a bit? industrial billion

Thomas McCormick

lot a it an going that projects of of noted in focusing billion the and project And of portion and size funnel fit my aren't have that $XX is see is trying a of work those. pursue that think our what we're going a that we kind really for identified worth XX% which our engineering market we that We we I I an work, addressable in they're just It's to wheelhouse and sure pursue and in, of and -- continue us. work our definitely to but about The expansion. we're work is to really in that margins that of right our type construction, industrial to the on make of improve expertise strengths. in that comments margin have

Adam Thalhimer

are And starts? XXXX construction those

Thomas McCormick

before we're on if design then XX -- to they'll X the of sure, get they doing months into of move When -- X, EPC, XXXX, design where period projects or be the XXXX. X carry for and you field. they'll to have the you they'll Some carry is client into the doing into a

will Some of to field. these the projects are go projects directly that

Adam Thalhimer

about to I just hate is solar. to don't of I for this but think but still talked year, know wanted make what next growth that's a extensively, sure. this market still Like because message you the ask quite kind guys we've I And I on

Thomas McCormick

in growth definitely not you to But Most billion a to $X.X market. XXX% when billion, year. going $X get a continue to at size, grow you're

a to approach hiring disciplined our work on. we take the that continue teams we and and developing So

to expecting we're so XX% year. in business XX% in And the XX% growth next that still to

Operator

of Your next the with Brent question Davidson. comes D.A. from Thielman line

Brent Thielman

in hold and of see upper next a guess about I if I cycle thinking the sort challenges target sort end the business, utilities in 'XX. PLH starting and you've 'XX, productivity contracts issues you're towards Why restructuring of on delivery. mean a benefit of question the this your range we pricing project and take terms the year, work if wouldn't the to in of power of sort margin got getting On year, more out also

see margin of kind in to a gap wouldn't why trying bridge Just we Utilities? in significant increase the

Thomas McCormick

That's you're trending what going to to. that's expect, and where we're exactly

Brent Thielman

it that? a sees big wouldn't to overhang thus And be Okay. utilities stronger,

Thomas McCormick

that expect can in you 'XX. Yes,

Brent Thielman

Okay. And had a year? the pipeline business mean I -- it's the come in like better covered in you I outlook then, it, what's it Tom, next if sounds mean lot for expected sorry than you just 'XX. but

Thomas McCormick

on are $XX is, $XX smaller by smaller what lot projects. than less projects of I opportunities a mean their million, $XX have projects. They're And million. million, million $XXX They

the which able on it's have it, of and be X have our minimum. But great execute to we it's They and still guys this businesses the as rightsized just be, not that to be going to long share got do for next performing a they're not won. our going It's -- I year, years market think, their for then don't not been that. pipeline win As work on work they'll and to just continue to okay. we that they've do

Brent Thielman

market Just Tom, just it's that in right an talent. you you're we to put that Got obviously, acquire things pretty somewhat can competitive Maybe on think the to Should to Utilities, just your talent talk year kind doing that it. want business? And next context. comment of back inhibitor of in now. the the growth about a about acquisition,

Thomas McCormick

and it's lay Us us. going company. It's I working the have it of they all paths it's And that the is we're those winning guys talent where companies group we're starting you help leadership people out about all I people, so talent. people focused have. excited as projects. the and what not are a to But we're the to mean being company that to successful. deliveries. see not business, in these their see. We it's fact career this -- just I success, and compensation, not pay It equity and like tough focusing doing on care performing opportunities It's really Getting that an because market. easier it's these our -- culture, long see It's about take being necessarily buy couple now. things about other of where and and success easier starting the it. and not a we're equity is -- And last seeing about and it's to from inhibitor much that's we're We take for and the just in be. What part paying can them And total career we're providing that them good as away things. think, lot well in will development. as of breeds there are on that benefits our good are highest contractor And It's then I want develop the combined, always and about doesn't that and competitors after brought think out have performance package. with well, the in margins. years retention competitive I to over power that industrial benefits, their help is people they've on work -- retaining think improved we're of saw that that people think is is their the

Operator

of comes from line question the final Our Julio Romero Company. with Sidoti &

Julio Romero

sales the the guys in renewable were quarter? much expect what do quarter? And for you How fourth

Ken Dodgen

in the Renewables see. were Let's quarter $XXX about million. sales

they're quarter, over that million. as targeting, be -- probably much billion, it For to as if $XXX $X.X everything even the could going they close fourth be maybe it's

Julio Romero

talked Okay. you renewables the what's challenges be the yourself with then, positioned, And beyond Tom, mentioned? but of within on customers kind the eye factors you're Great. looking listed concern about keeping more XXXX, biggest that how few to Maybe you your out just also aligned you potential resilient you're a that of well area, going forward.

Thomas McCormick

supply. long is I other that last? I some ahead earlier clients But some definitely pre-buying, some mentioned know supply Ukraine in that. that think transmission breakers affects to of going because unless we're gear jobs sources we're comments that's secured XXX anything and get have goes supply of trying the is what's in that breakers of has up, to finding U.S. impacts of impacted How that and manufacturing going supply actually mean components. I and interconnects. and associated I that and the picking chain. going my the to already transmission, if -- Anything transformers What are transformers with to that be the other pushes on of weeks,

and 'XX. least like taken that that's 'XX deal is it. are So solved at concern not If with actions to definitely for, a in

Julio Romero

the interest you least affected by the helpful renewable the rates, seems on relative with and That's after higher mentioned side customers you just you're for a at And Okay. that on going moment. that less then the there. work aligned yourself basis,

Thomas McCormick

our We're all. about talk at hearing that Yes. not customers

Operator

from We Securities. question Lee to would like another with CJS take

Lee Jagoda

Adam's next off business? on just you and in that a in XX% baseline for up to Julio. following solar Tom, I maybe on us give growth XXXX mentioned we're that question XX% piggybacking you think to Can Just year. XX% of working

Thomas McCormick

X.XX.

Ken Dodgen

we expect where is X.XX to end year. the

Operator

McCormick. over call Tom the turn to like now back to would I

Thomas McCormick

reached for and call as in future. be about Thank the and your company to know a this the still We've milestones some done. are far morning. this optimistic questions you there's important we But so work for year participating

and have talent, operations quality We strong the productivity continuously to in become company improve build service to order Primoris. attract provide to be company to our top customers your position great help our team we culture in time the be. these believe in on to we our in again and for am a excited can toward to I goals. interest you Thank lead

Operator

and ends that Ladies gentlemen, conference. today's

You now you Thank disconnect. your may time. for

Primoris Services (PRIM) 8 Nov 232023 Q3 Earnings call transcript