Q3 2023 MasTec Inc Earnings Call

November 1, 2023

Speaker 1: busy community plaza. Reporting live in the

Operator: 2023. Let me remind participants that today's call is being recorded. At this time, I'd like to turn the conference over to Marc Lewis, MasTec's Vice President of Investor Relations. Mark?

Let me remind participants that today's call is being recorded.

Unknown Attendee: in 2023. Let me remind participants that today's call is being recorded.

Speaker 2: Let me remind participants that today's call is being recorded.

At this time I'd like to turn the conference over to Marc Lewis <unk>, Vice President of Investor Relations Mark. Thank you Lee and good morning, everyone welcome to <unk> third quarter call.

Marc Lewis: At this time, I'd like to turn the conference over to Marc Lewis, MassEx 5th President of Investor Relations. Marc? Thanks Elaine. Good morning everyone.

Speaker 2: At this time I'd like to turn the conference over to Mark Lewis, MASTEC's Vice President of Investor Relations.

J. Marc Lewis: Thanks, Elaine, and good morning, everyone. Welcome to MasTec's third quarter call. The following statement is made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking, such as statements regarding MasTec's future results, plans, and anticipated trends in the industries where we operate. These forward-looking statements are the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent events or knowledge. Various risks, uncertainties, and assumptions are detailed in our press releases and filings with the SEC. Should one or more of our these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in today's call.

Marc Lewis: Thanks, Elaine, and good morning, everyone. Welcome to MasTec's third quarter call. The following statement is made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking, such as statements regarding MasTec's future results, plans, and anticipated trends in the industries where we operate.

Speaker 3: Thanks Elaine. And good morning everyone. Welcome to MOSCEC's third quarter call. The following statement is made pursuant to the Safe Harbor for forward-looking statements described in the Private Securities of the Immigration Reform Act of 1995.

Marc Lewis: Welcome to MassEx 3rd quarter call.

Following statements made pursuant to the safe Harbor for forward looking statements described in the private Securities Litigation Reform Act of 1995.

Marc Lewis: The following statement is made pursuant to the safe harbor for poor looking statements described in a private security litigation reform act of 1995. In these communications, we may make certain statements that are forward looking, such as statements regarding MassEx future results, plans, and anticipated trends in the industries where we operate. These forward looking statements are the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent intervention knowledge.

These communications, we may make certain statements that are forward looking such as statements regarding <unk> future results plans and anticipated trends in the industries, where we operate these forward looking statements of the company's expectations on the day of the initial broadcast of this conference call and the company does not undertake to update these expectations based on subsequent events or knowledge.

Speaker 3: In these communications, we may make certain statements that are forward looking such as statements regarding mass-diction future results, plans, and anticipated trends in industries where we operate.

Marc Lewis: These forward-looking statements are the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent events or knowledge. Various risks, uncertainties, and assumptions are detailed in our press releases and filings with the SEC. Should one or more of our these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in today's call.

Speaker 3: These four are looking statements with the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent of internal knowledge.

Various risks uncertainties and assumptions are detailed in our press releases and filings with the SEC.

Speaker 3: various risk, uncertainties and assumptions or details in our press releases and findings with the SEC. Should one of our, these risks or uncertainties materialize or should any of our underlying assumptions prove incorrect, action results may differ significantly from results expressed or implied in today's call.

Marc Lewis: Various risk uncertainties and assumptions are detailed in our press releases and filings with the SEC. Should one or more of our these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, action results may differ significantly from results expressed were implied in today's call.

Should one or more of our these risks or uncertainties materialize or should any of our underlying assumptions prove incorrect actual results may differ significantly from results expressed or implied in today's call.

In today's remarks by management, we will be discussing adjusted financial metrics are reconciled in yesterday's press release and supporting schedules.

Marc Lewis: In today's remarks by a management, we will be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-gap financial measures in this call. A reconciliation of a non-gap financial measure is not reconciled in these comments to the most comparable gap financial measure can be found in our earnings press release.

J. Marc Lewis: In today's remarks by management, we will be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP financial measures in this call. A reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release. Please note that we have two documents associated with today's webcast on the Investors and Events and Presentations page of our website at mastec.com. There is a companion document with information and analytics on the quarter just ended, and a guided summary to assist in developing your financial models going forward. Both PDF files are available for immediate download. With us today, we have Jose Mas, our CEO, and Paul DiMarco, our EVP and Chief Financial Officer.

Marc Lewis: In today's remarks by management, we will be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP financial measures in this call. A reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release.

Speaker 3: Today's remarks by a management, we will be discussing adjusted financial metrics, reconciled in yesterday's press release, and supporting schedules. In addition, we make use certain non- GAAP financial measures in this call. A reconciliation of a non- GAAP financial measure is not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release.

We may use certain non-GAAP financial measures in this call a reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release.

Please note that we have two documents associated with todays webcast on the investors and events and presentations page of our website at <unk> Dot Com. There is a companion document with information and analytics on the quarter just ended and our guidance summary to assist in developing your financial models going forward. Both PDF files are available for immediate download with us.

Speaker 3: Please note that we have two documents that I'll show you with today's webcast, only investors and events and presentations page of our website at mystech.com. There is a companion document with information and analytics on the quarter just ended and a guide at summary to assist in developing your financial models going forward. Both PDF files are available for immediate downloads.

Marc Lewis: Please note that we have two documents associated with today's webcast on the Investors and Events and Presentations page of our website at mastec.com. There is a companion document with information and analytics on the quarter just ended, and a guided summary to assist in developing your financial models going forward. Both PDF files are available for immediate download. With us today, we have Jose Mas, our CEO, and Paul DiMarco, our EVP and Chief Financial Officer.

Marc Lewis: Please note that we have two documents associated with today's webcast on the investors and events and presentations page of our website at moustache.com. There is a companion document with information and analytics on the quarter just ended and a guide summary to assist in developing your financial models going forward. Both PDF files are available for immediate download.

Hey, we have Jose Mas, our CEO and Paul <unk>, our EVP and Chief Financial Officer.

Speaker 3: With us today we have Jose Maas, our CEO , and Paul DeMarco, our EVP and Chief Financial Officer. Before my other call, we open remarks and announcements by Jose, followed by a financial review from Paul. These discussions will be followed by a Q&A period, and we expect the call to last about 60 minutes.

Marc Lewis: With us today, we have Jose Moss, our CEO, and Paul Demarca, our EVP and chief financial officer. The former of the call will be opening remarks and analysis by Jose, followed by financial review from Paul. These discussions will be followed by, you know, a period and we expect to call the last about 60 minutes. We have a lot of important things to talk about today, so I'll now turn over to Jose so we can get going.

Format of the call will be opening remarks analysis by Jose followed by financial review from Paul. These discussions will be followed by Q&A period, and we expect to call to last about 60 minutes. We have a lot of important things to talk about today, so I'm not trying to work towards those so we can get going Jose.

J. Marc Lewis: The format of the call will be opening remarks and announcements by Jose, followed by a financial review from Paul. These discussions will be followed by a Q&A period, and we expect the call to last about 60 minutes. We have a lot of important things to talk about today, so I'll now turn it over to Jose, so we can get going. Jose?

Marc Lewis: The format of the call will be opening remarks and announcements by Jose, followed by a financial review from Paul. These discussions will be followed by a Q&A period, and we expect the call to last about 60 minutes. We have a lot of important things to talk about today, so I'll now turn it over to Jose, so we can get going. Jose?

Speaker 3: We have a lot of important things to talk about today, so I'll now turn it over to Jose so we can get going. Jose?

Thanks Mark.

Speaker 4: Thanks, Mark. Good morning and welcome to Moskowitz 2023 third quarter call.

Good morning, and welcome to March towards 2023 third quarter call.

Jose Mas: Thanks, Mark. Good morning, and welcome to MasTec's 2023 Q3 Call. Today, I'll be reviewing our Q3 results, as well as providing my outlook for the markets we serve. As you all know, we moved up our earnings release and this call by 2 days from our normal cadence. As we went through our quarter close process, given the preliminary results we were seeing for the Q3 relative to our prior guidance and the forward information we were receiving from some of our segments, we determined that it was important to get our earnings release out to the market as soon as our procedures had reached the point that we had sufficient clarity on the data. We appreciate everyone adapting your schedules so that you could join us on this call today. Thank you. Now, some Q3 highlights.

Jose Mas: Jose? Thanks, Mark.

Today I'll be reviewing our third quarter results as well as providing my outlook for the markets we serve.

Speaker 4: Today, I'll be reviewing our third quarter results, as well as providing my outlook for the markets we serve.

Jose Mas: Good morning, and welcome to moustache's 2,023 third quarter call. Today, I'll be reviewing our third quarter results as well as providing my outlook for the markets we serve. As you all know, we moved up our earnings release in this call by two days from our normal cadence. As we went through our quarter close process, given the preliminary results we were seeing for the third quarter relative to our prior guidance and the forward information we were receiving from some of our segments, we determined that it was important to get our earnings release out to the market as soon as our procedures had reached the point that we had sufficient clarity on the data. We appreciate everyone adapting your schedules so that you can join us on this call today. Thank you.

As you all know we moved up our earnings release and this call by two days from our normal cadence.

Speaker 4: As you all know, we moved up our earnings release and this call by two days from our normal cadence.

As we went through our quarter close process given the preliminary results we were seeing for the third quarter relative to our prior guidance and the forward information we were receiving from some of our segments. We determined that it was important to get our earnings release out to the market as soon as our procedures had reached the point that we had sufficient clarity on the data.

Speaker 4: As we went through our quarter close process, given the preliminary results we were seeing for the third quarter relative to our prior guidance, and the forward information we were receiving from some of our segments, we determined that it was important to get our earnings released out to the market as soon as our procedures had reached the point that we had sufficient clarity on the data. We appreciate everyone adapting your schedules so that you could join us on this call today. Thank you.

We appreciate everyone adapting your schedules so that you could join us on this call today. Thank you.

Now some third quarter highlights.

Speaker 4: Now some third quarter highlights. Revenue for the quarter was $3,257 million, a 30% year over your increase, organic growth of roughly 10%, and a 13% sequential increase, but well below our previous guidance.

Jose Mas: Now some third quarter highlights. Revenue for the quarter was $3,257 million, a 30% year over your increase, organic growth of roughly 10%, and a 13% sequential increase, but well below our previous guidance. Adjusted EBITDA was $271 million, a 10% increase over last year, but again, well below our previous estimate. Adjusted earnings per share was $0.95. Cashflow from operations generated during the quarter was $294 million with a $213 million reduction of net debt during the quarter.

Revenue for the quarter was 3.257, billion% to 30% year over year increase organic growth of roughly 10% and 13% sequential increase but well below our previous guidance.

Jose Mas: Revenue for the quarter was $3.257 billion, a 30% year-over-year increase, organic growth of roughly 10%, and a 13% sequential increase, but well below our previous guidance. Adjusted EBITDA was $271 million, a 10% increase over last year, but again, well below our previous estimate. Adjusted earnings per share was $0.95. Cash flow from operations generated during the quarter was $294 million, with a $213 million reduction of net debt during the quarter. We expect further cash flow strength during Q4 and Q1 2024, which Paul will cover later. And finally, backlog at quarter end was $12.5 billion. In summary, we continue to face challenges this year.

Adjusted EBITDA was $271 million, a 10% increase over last year, but again well below our previous estimate.

Speaker 4: Adjusted EBITDA was 271 million, a 10% increase over last year, but again, well below our previous estimate. Adjusted earnings per share was...

Adjusted earnings per share was <unk> 95.

Cash flow from operations generated during the quarter was $294 million with a $213 million reduction of net debt during the quarter.

Jose Mas: Cash flow from operations generated during the quarter was $294 million, with a $213 million reduction of net debt during the quarter. We expect further cash flow strength during Q4 and Q1 2024, which Paul will cover later. And finally, backlog at quarter end was $12.5 billion. In summary, we continue to face challenges this year.

Speaker 4: Casulo from operations generated during the quarter was 294 million with a 213 million reduction of net debt during the quarter. We expect further Casulo's strength during the fourth quarter and the first quarter of 2024, which Paul will cover later.

We expect further cash flow strength during the fourth quarter and the first quarter of 2024, which Paul will cover later.

Jose Mas: We expect further cashflow strength during the fourth quarter and the first quarter of 2024, which Paul will cover later. We expect to be about a billion dollars or 7% below our previous estimates. This revenue shortfall is primarily related to the continued challenges in our clean energy business, where full year revenues will be off about 900 million versus our initial expectations. The bulk of that shortfall occurred at IAA, which we acquired late last year.

Finally backlog at quarter end was $12 5 billion.

Speaker 4: And finally, backlog with quarter end was 12 and a half billion.

In summary, we continue to face challenges this year.

Speaker 4: In summary, we continue to face challenges this year.

We now expect full year revenue to be about $1 billion were 7% below our previous estimates.

Jose Mas: We now expect full year revenue to be about $1 billion or 7% below our previous estimates. This revenue shortfall is primarily related to the continued challenges in our clean energy business, where full year revenues will be off about $900 million versus our initial expectations. The bulk of that shortfall occurred at IEA, which we acquired late last year. As a reminder, IEA generated approximately $2.4 billion in revenue in 2022. While we knew the wind market would be challenged this year, we expected the solar market to allow them to achieve revenue growth in 2023. We now expect revenues for IEA in 2023 to be approximately $1.7 billion.

Speaker 4: We now expect full year revenue to be about a billion dollars or 7% below our previous estimate.

This revenue shortfall is primarily related to the continued challenges in our clean energy business, where full year revenues will be off about $900 million versus our initial expectations.

Speaker 4: This revenue shortfall is primarily related to the continued challenges in our clean energy business, where full year revenues will be off about 900 million versus our initial expectation.

Bulk of that shortfall occurred at IAA, which we acquired late last year.

Jose Mas: The bulk of that shortfall occurred at IEA, which we acquired late last year. As a reminder, IEA generated approximately $2.4 billion in revenue in 2022. While we knew the wind market would be challenged this year, we expected the solar market to allow them to achieve revenue growth in 2023. We now expect revenues for IEA in 2023 to be approximately $1.7 billion.

Speaker 4: The bulk of that shortfall occurred at IAA, which we acquired late last year.

As a reminder, IAA generated approximately $2 $4 billion in revenue in 2022.

Jose Mas: As a reminder, IAA generated approximately $2.4 billion in revenue in 2022. While we knew the wind market would be challenged this year, we expected the solar market to allow them to achieve revenue growth in 2023. We now expect revenues for IAA in 2023 to be approximately $1.7 billion. While there is no question, we are disappointed in our ability to understand forecasting risks based on project timing, there have been a number of market factors that have an outsized negative impact on IAA.

Speaker 4: As a reminder, IAA generated approximately 2.4 billion in revenue in 2022.

While we knew the wind market would be challenged this year, we expected the solar market to allow them to achieve revenue growth in 2023.

Speaker 4: While we knew the win market would be challenges here, we expected the solar market to allow them to achieve revenue growth in 2023.

We now expect revenues for IAA in 2023 to be approximately $1 7 billion.

Speaker 4: We now expect revenues for IA in 2023 to be approximately 1.7 billion.

While there is no question, we are disappointed in our ability to understand forecasting risk based on project timing there have been a number of market factors that have an outsized negative impact on IAA.

Jose Mas: While there is no question we are disappointed in our ability to understand forecasting risks based on project timing, there have been a number of market factors that have an outsized negative impact on IEA. IEA, to a greater degree than MasTec's legacy renewable business, had a customer base that was more dependent on using tax equity to help finance projects. While the Inflation Reduction Act has created significant tax incentives that are expected to have a materially positive impact on the solar industry and our business, the delay in clearly defining the specifics of the law, for example, domestic content, has created a significant delay to certain customers' ability to access tax equity. While this delay has impacted our ability to achieve our projected revenue, I'd like to make clear that these projects haven't been canceled, but rather delayed.

Speaker 4: While there is no question we are disappointed in our ability to understand forecasting risks based on project timing, there have been a number of market factors that have an outsized negative impact on IA.

IAA to a greater degree than <unk> legacy renewable business had a customer base that was more dependent on using tax equity to help finance projects.

Speaker 4: IAA to a greater degree than Maasthek's legacy renewable business had a customer base that was more dependent on using tax equity to help finance projects.

Jose Mas: IAA, to a greater degree than Maastricht's legacy renewable business, had a customer base that was more dependent on using tax equity to help finance projects. While the Inflation Reduction Act has created significant tax incentives that are expected to have a materially positive impact on the solar industry and our business, the delay on clear defining the specifics of the law, for example, the domestic content has created a significant delay to certain customer's ability.

While the inflation reduction act has created significant tax incentives that are expected to have a materially positive impact on the solar industry and our business. The delay unclear defining the specifics of the law. For example, domestic content has created a significant delay to certain customers ability to access tax equity.

Jose Mas: While the Inflation Reduction Act has created significant tax incentives that are expected to have a materially positive impact on the solar industry and our business, the delay in clearly defining the specifics of the law, for example, domestic content, has created a significant delay to certain customers' ability to access tax equity. While this delay has impacted our ability to achieve our projected revenue, I'd like to make clear that these projects haven't been canceled, but rather delayed.

Speaker 4: While the inflation reduction act has created significant tax incentives that are expected to have a materially positive impact on the solar industry and our business, the delay on clear defining the specifics of the law, for example domestic content, has created a significant delay to certain customer's ability to access tax equity.

While this delay has impacted our ability to achieve our projected revenue I'd like to make clear that these projects haven't been cancelled, but rather delayed and while there has been some negative commentary on the solar market in general lately, we continue to experience significant demand for our renewable services.

Speaker 4: While this delay has impacted our ability to achieve our projected revenue, I'd like to make clear that these projects haven't been canceled for rather delayed. And while there has been some negative commentary on the solar market in general lately, we continue to experience significant demand for our renewable services.

Jose Mas: While this delay has impacted our ability to achieve our projected revenue, I'd like to make clear that these projects haven't been canceled for rather delayed. And while there has been some negative commentary on the solar market in general lately, we continue to experience significant demand for our renewable services. While we have started a number of new projects in the second half of 2023, our fourth quarter guidance does not assume new projects start after October.

Jose Mas: While there has been some negative commentary on the solar market in general lately, we continue to experience significant demand for our renewable services. While we have started a number of new projects in the second half of 2023, our Q4 guidance does not assume new project starts after October. Our Q4 guidance is made up of projects we are currently working on. We also believe this to be prudent. It's taken us time to get to know the IEA customer base and we believe we are bringing the right scrutiny to both our legacy and IEA projects as we fill our 2024 pipeline, and believe we will be much more consistent in our ability to forecast this segment's revenue.

While we have started a number of new projects in the second half of 2023, our fourth quarter guidance does not assume new project starts after October.

Speaker 4: While we have started a number of new projects in the second half of 2023, our fourth quarter guidance does not assume new projects start after October . So our fourth quarter guidance is made up of projects we are currently working on.

So our fourth quarter guidance is made up of projects. We are currently working on.

Jose Mas: Our Q4 guidance is made up of projects we are currently working on. We also believe this to be prudent. It's taken us time to get to know the IEA customer base and we believe we are bringing the right scrutiny to both our legacy and IEA projects as we fill our 2024 pipeline, and believe we will be much more consistent in our ability to forecast this segment's revenue.

Jose Mas: So our fourth quarter guidance is made up of projects we are currently working on. We also believe this to be prudent. It's taken us time to get to know the IE customer base and we believe we are bringing the right scrutiny to both our legacy and IAA projects as we fill our 2024 pipeline and believe we will be much more consistent in our ability to forecast the segments revenue. We are disappointed with the forecasting assumptions we made in 2023 and our understanding of projects risks in our revenue assumptions.

We also believe this to be prudent.

Speaker 4: We also believe this to be prudent. It's taking us time to get to know the IE customer base and we believe we are bringing the right scrutiny to both our legacy and IEA projects as we fill our 2020 4 pipeline and believe we will be much more consistent in our ability to forecast the segments revenue.

It's taken us time to get to know the <unk> customer base and we believe we are bringing the right scrutiny to both our legacy and IAA projects as we feel our 2024 pipeline and believe we will be much more consistent in our ability to forecast this segment's revenue.

We are disappointed with the forecasting assumptions, we made in 2023 and our understanding of projects risks and our revenue assumptions.

Speaker 4: We are disappointed with the forecasting assumptions we made in 2023 and our understanding of projects' risks and our revenue assumptions.

Jose Mas: We are disappointed with the forecasting assumptions we made in 2023, and our understanding of project risks and our revenue assumptions. We have made significant changes on how we go to market and how we assess projects and risks. While we're incredibly disappointed about our performance this year, we are still very bullish on our future. The level of interaction we are having with our customers around projects and timing today is as good as we've ever had in our business. We have a level of verbal and expected awards that gives us an opportunity to significantly grow our clean energy business. While we need to be prudent on timing and understand the risks associated around financing, interest rates, and interconnect agreements, our long-term outlook for this market is unchanged.

We have made significant changes on how we go to market and how we assess projects and risks.

Jose Mas: We have made significant changes on how we go to market and how we assess projects and risks. While we're incredibly disappointed about our performance this year, we are still very bullish on our future. The level of interaction we are having with our customers around projects and timing today is as good as we've ever had in our business. We have a level of verbal and expected awards that gives us an opportunity to significantly grow our clean energy business.

Speaker 4: We have made significant changes on how we go to market and how we assess projects and risks.

While we are incredibly disappointed about our performance. This year, we're still very bullish on our future.

Speaker 4: While we're incredibly disappointed about our performance this year, we are still very bullish on our future. The level of interaction we are having with our customers around projects and timing today is as good as we've ever had in our business.

The level of interaction, we are having with our customers around projects and timing today is as good as we've ever had in our business.

Jose Mas: The level of interaction we are having with our customers around projects and timing today is as good as we've ever had in our business. We have a level of verbal and expected awards that gives us an opportunity to significantly grow our clean energy business. While we need to be prudent on timing and understand the risks associated around financing, interest rates, and interconnect agreements, our long-term outlook for this market is unchanged.

We have a level of verbal and expected awards that gives us an opportunity to significantly grow our clean energy business.

Speaker 4: We have a level of verbal and expected awards that gives us an opportunity to significantly grow our clean energy business. While we need to be prudent on timing and understand the risks associated around financing, interest rates, and interconnect agreements, our long-term outlook for this market is unchanged.

While we need to be prudent on timing and understand the risks associated around financing interest rates and interconnect agreements are long term outlook for this market is unchanged.

Jose Mas: While we need to be prudent on timing and understand the risks associated around financing, interest rates and interconnect agreements, our long-term outlook for this market is unchanged. We expect considerable backlog growth both by year end and into 2024. And while again I'm very disappointed with our 2020 23 results, I truly believe that the combination of IEA and our legacy clean energy business will end up being a great acquisition for MasTec and our shareholders. We will appropriately manage expectations and risks going into 2024 and make conservative revenue assumptions until the market stabilizes.

We expect considerable backlog growth both by year end and into 2024, and while again I'm very disappointed with our 2023 results I truly believe that the combination of IEA and our legacy clean energy business will end up being a great acquisition for master and our shareholders.

Jose Mas: We expect considerable backlog growth, both by year-end and into 2024, and while again, I'm very disappointed with our 2023 results, I truly believe that the combination of IEA and our legacy clean energy business will end up being a great acquisition for MasTec and our shareholders. We will appropriately manage expectations and risks going into 2024, and make conservative revenue assumptions until the market stabilizes. With that said, we expect strong double-digit growth revenue in 2024 in our clean energy segment. In our oil and gas segment, revenues were below our previous estimate, as our ramp on the MVP project took longer than expected. Despite this, our full year revenue target of $2 billion is unchanged, with more activity expected in Q4 than we originally expected.

Speaker 4: We expect considerable backlog growth both by year end and into 2024. And while again, I'm very disappointed with our 2023 results. I truly believe that the combination of IEA and our legacy clean energy business will end up being a great acquisition for MOSTIC and our shareholders.

We will appropriately manage expectations and risk going into 2024 and may conservative revenue assumptions until the market stabilizes with that said, we expect strong double digit growth revenue in 2024, and our clean energy segment.

Speaker 4: We were appropriately managed expectations in risk going into 2024 and make conservative revenue assumptions until the market stabilizes. With that said, we expect strong double-digit growth revenue in 2024 in our clean energy segment.

Jose Mas: With that said, we expect strong double-digit growth revenue in 2024 in our clean energy segment. In our oil and gas segment, revenues were below our previous estimate as our ramp on the MVP project took longer than expected. Despite this, our full-year revenue target of $2 billion is unchanged, with more activity expected in the fourth quarter than we originally expected. We now expect the MVP project to extend through the first half of the year. We expect 2024 revenue levels in our oil and gas segment to be slightly lower than 2023. But with slightly better margins as we expect there will be less cost plus work versus this year.

And our oil and gas segment revenues were below our previous estimate as our ramp on the MVP project took longer than expected. Despite this our full year revenue target of $2 billion is unchanged with more activity expected in the fourth quarter than we originally expected.

Speaker 4: In our oil and gas segment, revenues were below our previous estimate as our ramp on the MVP project took longer than expected. Despite this, our full year revenue target of 2 billion is unchanged, with more activity expected in the fourth quarter than we originally expected. We now expect the MVP project to extend through the first half of the year.

We now expect the MVP project to extend through the first half of the year.

Jose Mas: We now expect the MVP project to extend through the first half of the year. We expect 2024 revenue levels in our oil and gas segment to be slightly lower than 2023, but with slightly better margins, as we expect there will be less cost plus work versus this year. In our communication segment, revenue fell short of expectation, primarily related to a slowdown in wireless spend. For the full year, we expect revenue from our three primary wireless customers, AT&T, Verizon, and T-Mobile, to be down about 14% year-over-year. We expect this to be offset by strong growth from our wireline customers. As we look ahead to 2024, post-quarter end, we won a significant maintenance contract for our largest communications customer for services we weren't previously providing.

We expect 2020 for revenue levels in our oil and gas segment to be slightly lower than 2023, but with slightly better margins as we expect there will be less cost plus work versus this year.

Speaker 4: We expect 2024 revenue levels in our oil and gas segment to be slightly lower than 2023, but with slightly better margins as we expect there will be less cost plus work versus this year.

In our communications segment revenue fell short of expectation primarily related to a slowdown in wireless spend.

Jose Mas: In our communications segment, revenue fell short of expectation primarily related to a slowdown in wireless spend. For the full year, we expect revenue from our three primary wireless customers, AT&T, Verizon and T-Mobile to be down about 14% year over year. We expect this to be offset by strong growth from our wireless customers. As we look ahead to 2024, post quarter end, we want a significant maintenance contract for our largest communications customer, for services we weren't previously providing.

Speaker 4: In our communications segment, revenue fell short of expectation, primarily related to a slowdown in wireless spend.

For the full year, we expect revenue from our three primary wireless customers AT&T, Verizon and T mobile to be down about 14% year over year.

Jose Mas: For the full year, we expect revenue from our three primary wireless customers, AT&T, Verizon, and T-Mobile, to be down about 14% year-over-year. We expect this to be offset by strong growth from our wireline customers. As we look ahead to 2024, post-quarter end, we won a significant maintenance contract for our largest communications customer for services we weren't previously providing.

Speaker 4: For the full year, we expect revenue from our three primary wireless customers, AT&T, Verizon and T-Mobile, to be down about 14% year over year.

We expect this to be offset by strong growth from our wireline customers. As we look ahead to 2024 post quarter end, we want a significant maintenance contract for our largest communications customer for services, we weren't previously providing.

Speaker 4: We expect this to be offset by strong growth from our wireline customers.

Speaker 4: As we look ahead to 2024, post quarter end, we want a significant maintenance contract for our largest communications customer for services we weren't previously providing.

This program should be fully ramped by the second quarter of next year, and we expect over $100 million a year in annual revenues.

Speaker 4: This program should be fully ramped by the second quarter of next year, and we expect over $100 million a year in annual revenues.

Jose Mas: This program should be fully ramped by the second quarter of next year and we expect over 100 million a year in annual revenues. This award combined with the number of large wireline program awards under which we are currently performing engineering services that we expect will convert into construction in the first half of next year gives us confidence in our ability to grow our communications revenue. In the high single digits for 2024, despite some continued capex weakness as some of our customers managed to hire across the capital.

Jose Mas: This program should be fully ramped by Q2 of next year, and we expect over $100 million a year in annual revenues. This award, combined with a number of large wireline program awards, under which we are currently performing engineering services that we expect will convert into construction in the first half of next year, gives us confidence in our ability to grow our communications revenue in the high single digits for 2024, despite some continued CapEx weakness, as some of our customers manage through higher costs of capital. In our power delivery segment, revenue fell short of expectations as we had a significant year-over-year decline in storm revenue, which also impacted year-over-year margins, along with the number of utilities moderating their spending plans as they dealt with the changing interest rate environment.

This award combined with the number of large wireline program awards under which we are currently performing engineering services that we expect will convert into construction in the first half of next year gives us confidence in our ability to grow our communications revenue in the high single digits for 2024, Despite some continued capex weakness.

Speaker 4: This award, combined with a number of large wireline program awards, under which we are currently performing engineering services that we expect will convert into construction in the first half of next year, gives us confidence in our ability to grow our communications revenue in the high single digits for 2024, despite some continued capex weakness as some of our customers manage through higher costs of capital.

As some of our customers manage through higher cost of capital.

And our power delivery segment.

Jose Mas: In our power delivery segment, revenue fell short of expectations as we had a significant year-over-year decline in storm revenue, which also impacted year-over-year margins, along with the number of utilities moderating their spending plans as they dealt with the changing interest rate environment.

Jose Mas: In our power delivery segment, revenue fell short of expectations as we had a significant year over year decline in storm revenue, which also impacted year over year margins, along with the number of utilities moderating their spending plans as they dealt with the changing interest rate environment. We expect similar performance in both revenues and margins in the fourth quarter. Over the course of the last few months, we have seen a number of utilities begin vendor consolidation efforts.

Revenue fell short of expectations as we had a significant year over year decline in storm revenue, which also impacted year over year margins, along with a number of utilities moderating their spending plans as they dealt with the changing interest rate environment.

Speaker 4: Revenue fell short of expectations as we had a significant year over year decline in storm revenue which also impacted year over year margins along with the number of utilities moderating their spending plans as they dealt with the changing interest rate environment.

Margins were up sequentially and we expect similar performance in both revenues and margins in the fourth quarter.

Speaker 4: Margins were up sequentially, and we expect similar performance in both revenues and margins in the fourth quarter.

Jose Mas: Margins were up sequentially, and we expect similar performance in both revenues and margins in Q4. Over the course of the last few months, we have seen a number of utilities begin vendor consolidation efforts. We've had a very good quarter increasing our market share, having been awarded increased scope for 2024. Post-quarter award activity has been strong, and while we've seen some short-term fluctuations in capital spend, we believe the long-term fundamentals of the business has only improved. We expect some continued capital discipline on behalf of the utilities, offset by growth associated with transmission and substation work, leading to expectations of single-digit revenue growth in 2024, with modest margin expansion. Before turning the call over to Paul, I'd like to reflect on where we are today. Post-pandemic, we took steps to fundamentally transform MasTec.

Over the course of the last few months, we've seen a number of utilities begin vendor consolidation efforts, we've had a very good quarter, increasing our market share having been awarded increased scope for 2024.

Speaker 4: Over the course of the last few months, we have seen a number of utilities begin vendor consolidation efforts.

Speaker 4: We've had a very good quarter increasing our market share, having been awarded increased scope for 2024.

Jose Mas: We have had a very good quarter increasing our market share having been awarded increased scope for 2024. Post quarter award activity has been strong and while we've seen some short term fluctuations in capital spend, we believe the long term fundamentals of the business is only improved. We expect some continued capital discipline on behalf of the utilities offset by growth associated with transmission and substation work leading to expectations of single digit revenue growth in 2024 with modest margin expansion.

Post quarter award activity has been strong and while we've seen some short term fluctuations in capital spend we believe the long term fundamentals of the business has only improved we expect some continued capital discipline on behalf of the utilities offset by growth associated with transmission and substation work leading to expectations of single digit revenue grew.

Speaker 4: Post-quarter award activity has been strong, and while we've seen some short-term fluctuations in capital spend, we believe the long-term fundamentals of the business has only improved.

Jose Mas: We expect some continued capital discipline on behalf of the utilities, offset by growth associated with transmission and substation work, leading to expectations of single-digit revenue growth in 2024, with modest margin expansion. Before turning the call over to Paul, I'd like to reflect on where we are today. Post-pandemic, we took steps to fundamentally transform MasTec.

Speaker 4: We expect some continued capital discipline on behalf of the utilities, offset by growth associated with transmission and substation work, leading to expectations of single-digit revenue growth in 2024 with modest margin expansion.

In 2024 with modest margin expansion.

Before turning the call over to Paul I'd like to reflect on where we are today.

Jose Mas: Before turning the call over to Paul, I'd like to reflect on where we are today. Post-pandemic, we took steps to fundamentally transform MasTec. In the three to four years since, we've more than doubled the revenue of the business, despite seeing a significant drop in our own gas pipeline revenues. We believe that our transformation, which has seen a significantly increase our presence in power delivery and clean energy, positions as company better that at any point in our history, but this transition has been much more difficult than we expected.

Speaker 4: Before turning the call over to Paul, I'd like to reflect on where we are today.

Post pandemic, we took steps to fundamentally transform master.

Speaker 4: Post-pandemic, we took steps to fundamentally transform MOSTIC. In the three to four years since, we've more than doubled the revenue of the business, despite seeing a significant drop in our own gas pipeline revenues.

In the three to four years since we have more than doubled the revenue of the business. Despite seeing a significant drop in our oil and gas pipeline revenues.

Jose Mas: In the three to four years since, we've more than doubled the revenue of the business, despite seeing a significant drop in our oil and gas pipeline revenues. We believe that our transformation, which has seen us significantly increase our presence in power delivery and clean energy, positions this company better than at any point in our history. But this transition has been much more difficult than we expected. The two power delivery acquisitions we made in 2021 are performing well and have strategically positioned us with significant expansion opportunities for future growth. However, they came with their sets of challenges and setbacks, and took a lot of effort and time as we integrated them in 2022.

We believe that our transformation, which has seen a significantly increase our presence in power delivery and clean energy positions. This company better than at any point in our history.

Speaker 4: We believe that our transformation, which has seen a significantly increase our presence in power delivery and clean energy, positions this company better than at any point in our history. But this transition has been much more difficult.

With this transition has been much more difficult than we expected.

The two power delivery acquisitions, we made in 2021 are performing well and have strategically positioned us with significant expansion opportunities for future growth.

Speaker 4: The two power delivery acquisitions we made in 2021 are performing well and have strategically positioned us with significant expansion opportunities for future growth. However, they came with their sets of challenges and setbacks and took a lot of effort in time as we integrated them in 2022.

Jose Mas: The two power delivery acquisitions we made in 2021 are performing well and have strategically positioned us with significant expansion opportunities for future growth. However, they came with their sets of challenges and setbacks and took a lot of effort in time as we integrated them in 2022. Much more difficult has been the combination of IA as our full year performance in revenue deterioration have been difficult to manage and put stress on the organization.

However, they came with their sets of challenges and setbacks and took a lot of effort and time as we integrated them in 2022.

Much more difficult has been the combination of IAA as.

Jose Mas: Much more difficult has been the combination of IEA, as our full year performance and revenue deterioration have been difficult to manage and put stress on the organization. While again, not pleased with our performance, I think we have created an optimal structure as we look to effectively grow and manage this business. Our market strategy has been well received by our customers, and the relationships we've created, solidified, and grown over the last year gives us great confidence regarding our future in clean energy and the market-leading position we believe we can capture. Exiting 2023, we are keenly focused on growing and effectively managing our business for growth, strong margins, and cash flow. For the first time in a few years, we have no new acquisitions to integrate, which will allow us to fully focus on the areas that we need to improve.

Speaker 4: Much more difficult has been the combination of IA, as our full-year performance and revenue deterioration have been difficult to manage and put stress on the organization.

As our full year performance in revenue deterioration have been difficult to manage and put stress on the organization.

While again not pleased with our performance I think we have created an optimal structure as we look to effectively grow and manage this business.

Speaker 4: While again, not pleased with our performance, I think we have created an optimal structure as we look to effectively grow and manage this business.

Jose Mas: While again, not pleased with our performance, I think we have created an optimal structure as we look to effectively grow and manage this business. Our market strategy has been well received by our customers and the relationships we've created, solidified, and grown over the last year gives us great confidence regarding our future in clean energy and the market leading position we believe we can capture. Exiting 2023, we are keenly focused on growing and effectively managing our business for growth, strong margins, and cash flow. For the first time in a few years, we have no new acquisitions to integrate which will allow us to fully focus on the areas that we need to improve.

Our market strategy has been well received by our customers and the relationships, we've created solidified and grown over the last year gives us great confidence regarding our future in clean energy and the market leading position. We believe we can capture.

Speaker 4: Our market strategy has been well received by our customers, and the relationships we've created, solidified, and grown over the last year gives us great confidence regarding our future in clean energy and the market-leading position we believe we can capture.

Jose Mas: Our market strategy has been well received by our customers, and the relationships we've created, solidified, and grown over the last year gives us great confidence regarding our future in clean energy and the market-leading position we believe we can capture. Exiting 2023, we are keenly focused on growing and effectively managing our business for growth, strong margins, and cash flow. For the first time in a few years, we have no new acquisitions to integrate, which will allow us to fully focus on the areas that we need to improve.

Exiting 2023, we are keenly focused on growing and effectively managing our business for growth strong margins and cash flow.

Speaker 4: Exiting 2023, we are keenly focused on growing and effectively managing our business for growth, strong margins, and cash flow. For the first time in a few years, we have no new acquisitions to integrate, which will allow us to fully focus on the areas that we need to improve.

For the first time in a few years, we have no new acquisitions to integrate which will allow us to fully focus on the areas that we need to improve.

For those of you new to mass Tech. This is my 16th year as CEO.

Jose Mas: For those of you new to MOSTEC, this is my 16th year of CEO. Our revenue for my first year as CEO was around $900 million and EBITDA was less than 50. Those of you that know me know how competitive I am and how I always want to succeed and perform. This has been a challenging year, but understand I'm as motivated and determined as ever to make sure MOSTEC reaches its full potential.

Jose Mas: For those of you new to MasTec, this is my 16th year as CEO. Our revenue for my first year as CEO was around $900 million, and EBITDA was less than $50 million. Those of you that know me, know how competitive I am and how I always want to succeed and perform. This has been a challenging year, but understand, I'm as motivated and determined as ever to make sure MasTec reaches its full potential. My family is the largest single shareholder at MasTec, and our interests are aligned with all shareholders. I bear a great sense of responsibility in knowing that our shareholders have made an investment with their hard-earned dollars in MasTec. I do not take that for granted.

Speaker 4: For those of you new to MosTech, this is my 16th year as CEO . Our revenue for my first year as CEO was around $900 million and EBITDA was less than $50.

Our revenue for my first year as CEO was around $900 million and EBITDA was less than 50.

Those of you that Gnome Knowhow competitive I am and <unk> want us to succeed and perform.

Speaker 4: Those of you that know me know how competitive I am and how I always want to succeed and perform. This has been a

This has been a challenging year.

But understand them as.

<unk> and determined as ever to make sure mostek reaches its full potential.

Speaker 4: But understand, I'm as motivated and determined as ever to make sure Mostek reaches its full potential.

My family is the largest single shareholder in master and our interests are aligned with all shareholders.

Jose Mas: My family is the largest single shareholder at MasTec, and our interests are aligned with all shareholders. I bear a great sense of responsibility in knowing that our shareholders have made an investment with their hard-earned dollars in MasTec. I do not take that for granted.

Jose Mas: My family is the largest single shareholder in MOSTEC. In our interests are aligned with all shareholders. I bear a great sense of responsibility in knowing that our shareholders have made an investment with their harder and dollars in MOSTEC. I do not take that for granted. I can also say, and I know action speak a lot louder than words, that I believe we are better positioned today that at any point in our history.

Speaker 4: My family is the largest single shareholder in MOSTIC. And our interests are aligned with all shareholders.

Hi, bear a great sense of responsibility and knowing that our shareholders have made an investment with their hard earned dollars in Moscow I.

Speaker 4: I bear a great sense of responsibility in knowing that our shareholders have made an investment with their hard-earned dollars in Mostec.

I do not take that for granted I can also say and I know actions speak a lot louder than words that I believe we are better positioned today than at any point in our history.

Speaker 4: I do not take that for granted. I can also say, and I know actions speak a lot louder than words, that I believe we are better positioned today than at any point in our history.

Jose Mas: I can also say, and I know actions speak a lot louder than words, that I believe we are better positioned today than at any point in our history. The long-term opportunities in our segments are better than I think people realize. Despite the short-term challenges, our long-term outlook is intact. Our communications, power delivery, and clean energy segments give us not only strong revenue growth opportunities, but each segment has the ability for margin improvement. Our long-term margin goals are unchanged and have been more impacted, not by pricing, but by volume and our ability to absorb costs on higher revenue levels. We look forward to delivering on these expectations and regaining the confidence of the investment community. I'd like to take this opportunity to thank the men and women of MasTec.

The long term opportunities in our segments are better than I think people realize.

Speaker 4: The long-term opportunities in our segments are better than I think people realize.

Jose Mas: The long-term opportunities in our segments are better than I think people realize. Despite the short-term challenges, our long-term outlook is intact. Our communications, power delivery and clean energy segments give us not only strong revenue growth opportunities, but each segment has the ability for margin improvement. Our long-term margin goals are unchanged and have been more impacted not by pricing, but by volume and our ability to absorb costs on higher revenue levels. We look forward to delivering on these expectations and regaining the confidence of the investment community.

Despite the short term challenges our long term outlook is intact, our communications power delivery and clean energy segments gives us not only strong revenue growth opportunities, but each segment has the ability for margin improvement.

Speaker 4: Despite the short-term challenges, our long-term outlook is intact. Our communications, power delivery, and clean energy segments give us not only strong revenue growth opportunities, but each segment has the ability for margin improvement.

Our long term margin goals are unchanged and have been more impacted not by pricing, but by volume and our ability to absorb costs on higher revenue levels.

Speaker 4: Our long-term margin goals are unchanged and have been more impacted not by pricing but by volume and our ability to absorb costs on higher revenue levels.

Jose Mas: Our long-term margin goals are unchanged and have been more impacted, not by pricing, but by volume and our ability to absorb costs on higher revenue levels. We look forward to delivering on these expectations and regaining the confidence of the investment community. I'd like to take this opportunity to thank the men and women of MasTec.

We look forward to delivering on these expectations and regaining the confidence of the investment community.

Speaker 4: We look forward to delivering on these expectations and regaining the confidence of the investment community. I'd like to take this opportunity to thank the men and women of Mostek. Men and women of Mostek are committed to the values of safety, environmental stewardship, integrity, honesty, and in providing our customers a great quality project at the best value.

I'd like to take this opportunity to thank the men and women of Master men and women of Mostek are committed to the values of safety environmental stewardship integrity honesty and in providing our customers a great quality project at the best value.

Jose Mas: I'd like to take this opportunity to thank the men and women of MOSTEC. Men and women of MOSTEC are committed to the values of safety, environmental stewardship, integrity, honesty, and in providing our customers a great quality project at the best value. I also know how competitive our people are and the desire they have to perform at a very high level. I know they're up for the task.

Jose Mas: The men and women of MasTec are committed to the values of safety, environmental stewardship, integrity, honesty, and in providing our customers a great quality project at the best value. I also know how competitive our people are and the desire they have to perform at a very high level. I know they're up for the task. I will now turn the call over to Paul for our financial review. Paul?

I also know how competitive are people are and the desire they have to perform at a very high level I know theyre up for the task I will now turn the call over to Paul for our financial review Paul.

Speaker 4: I also know how competitive our people are and the desire they have to perform at a very high level. I know they're up for the task. I will now turn the call over to Paul for our financial review. Paul? Thank you, Jose.

Paul Dimarco: I will now turn the call over to Paul for our financial review. Paul. Thank you Jose and good morning everyone. First off, I wanted to echo Jose's comments and thank you for the flexibility and accommodating the change to our earnings cost schedule. We hope the earlier visibility into our results and outlook will provide some value. We are committed to providing clear and accurate visibility into our performance and strategy and will continue to work towards that goal.

Thank you Jose and good morning, everyone.

Paul DiMarco: Thank you, Jose, and good morning, everyone. First off, I wanted to echo Jose's comments, and thank you for the flexibility in accommodating the change to our earnings call schedule. We hope the earlier visibility into our results and outlook will provide some value. We are committed to providing clear and accurate visibility into our performance and strategy, and we'll continue to work towards that goal. Turning to our Q3 results, MasTec generated consolidated revenue of $3.26 billion, up 30% year-over-year and 13% sequentially, but below guidance by approximately 13%. We had lower than anticipated activity versus our expectations in each segment, which I will cover in more detail later.

First off I wanted to aggregate Wacko Jose comments and thank you for the flexibility in accommodating the change to our earnings call schedule we.

Speaker 5: First off, I wanted to echo Jose's comments and thank you for the flexibility in accommodating the change to our earnings call schedule.

We hope the earlier visibility into our results and outlook, we'll provide some value.

Speaker 5: We hope the earlier visibility into our results and outlook will provide some value.

We are committed to providing clear and accurate visibility into our performance and strategy and we'll continue to work towards that goal.

Speaker 5: We are committed to providing clear and accurate visibility into our performance and strategy, and we'll continue to work towards that goal.

Turning to our third quarter results <unk> generated consolidated revenue of $3 $36 billion.

Paul DiMarco: Turning to our Q3 results, MasTec generated consolidated revenue of $3.26 billion, up 30% year-over-year and 13% sequentially, but below guidance by approximately 13%. We had lower than anticipated activity versus our expectations in each segment, which I will cover in more detail later.

Paul Dimarco: Turning to our third quarter results, MasTec generated consolidated revenue of $3.26 billion, up 30% year-over-year, and 13% sequentially, but below guidance by approximately 13%. We had lower than anticipated activity versus our expectations in each segment, which I will cover in more detail later. Adjusted EBITDA at $271 million, missed their guidance by 90 million, driven by decreased operating leverage associated with lower volume, unabsorbed costs due to ongoing project delays, and execution challenges on certain legacy projects. Lower than expected adjusted EBITDA also drove under performance in adjusted earnings per share of 95 cents.

Speaker 5: Mostek generated consolidated revenue of $3.26 billion, up 30% year-over-year and 13% sequentially, but below guidance by approximately

Up 30% year over year and 13% sequentially.

Below guidance by approximately 13%.

We had lower than anticipated activity versus our expectations in each segment, which I will cover in more detail later.

Speaker 5: We add lower than anticipated activity versus our expectations in each segment, which I will cover in more detail later.

Adjusted EBITDA at $271 million missed our guidance by $90 million.

Paul DiMarco: Adjusted EBITDA at $271 million, missed our guidance by $90 million, driven by decreased operating leverage associated with lower volume, unabsorbed costs due to ongoing project delays, and execution challenges on certain legacy projects. Lower than expected adjusted EBITDA also drove underperformance in adjusted earnings per share of $0.95. Overall, it was a very disappointing quarter, where we faced a number of challenging developments. We took a hard look at the business and our prospects for the balance of the year, and we believe our outlook appropriately captures the closeout risks and projects that have challenged us this year, and the anticipated lower activity with certain customers. Despite these challenges, we are pleased with the $294 million of cash flow generated by operations during the quarter and the corresponding $213 million of net debt reduction.

Speaker 5: Adjusted EBITDA at $271 million, missed our guidance by $90 million, driven by decreased operating leverage associated with lower volume, unabsorbed costs due to ongoing project delays, and execution challenges on certain legacy projects.

Driven by decreased operating leverage associated with lower volume unabsorbed costs due to ongoing project delays.

And execution challenges on certain legacy projects.

Lower than expected adjusted EBITDA also drove underperformance and adjusted earnings per share of <unk> 95.

Speaker 5: Lower than expected adjusted EBITDA also drove under performance in adjusted earnings per share of 95 cents.

Overall, it was a very disappointing quarter.

Speaker 5: Overall, it was a very disappointing quarter, where we faced a number of challenging developments.

Paul DiMarco: Overall, it was a very disappointing quarter, where we faced a number of challenging developments. We took a hard look at the business and our prospects for the balance of the year, and we believe our outlook appropriately captures the closeout risks and projects that have challenged us this year, and the anticipated lower activity with certain customers. Despite these challenges, we are pleased with the $294 million of cash flow generated by operations during the quarter and the corresponding $213 million of net debt reduction.

Paul Dimarco: Overall, it was a very disappointing quarter where we faced a number of challenging developments. We took a hard look at the business and our prospects for the balance of the year, and we believe our outlook appropriately captures the close-out risks and project that have challenged us this year, and the anticipated lower activity with certain customers. Despite these challenges, we are pleased with the $294 million cash flow generated by operations during the quarter, and the corresponding $213 million of net debt reduction.

We faced a number of challenging developments.

Took a hard look at the business and our prospects for the balance of the year and we believe our outlook appropriately captures the closeout risks and projects that are challenged us this year and the anticipated lower activity with certain customers.

Speaker 5: We took a hard look at the business and our prospects for the balance of the year, and we believe our outlook appropriately captures the closeout risks in projects that have challenged us this year and the anticipated lower activity with certain customers.

Despite these challenges we are pleased with the $294 million of cash flow generated by operations during the quarter and the corresponding $213 million of net debt reduction.

Speaker 5: Despite these challenges, we are pleased with the $294 million of cash flow generated by operations during the quarter and the corresponding $213 million of net debt reduction.

Turning to some segment details.

Paul Dimarco: Turning to some segment details. Third quarter clean energy revenue was $1.1 billion, and adjusted EBITDA with $58 million or 5.2% of revenue. While we did achieve 12% year-over-year organic revenue growth in the quarter, revenue and adjusted EBITDA were both well below expectations, driven by the lay's execution of certain contracts and performance challenges on certain legacy projects. While margins held flat with a second quarter, margins were almost 100 basis points below expectations due to lower fixed cost absorption.

Paul DiMarco: Turning to some segment details. Q3 clean energy revenue was $1.1 billion, and Adjusted EBITDA was $58 million, or 5.2% of revenue. While we did achieve 12% year-over-year organic revenue growth in the quarter, revenue and Adjusted EBITDA were both well below expectations, driven by delays in execution of certain contracts, and performance challenges on certain legacy projects. While margins held flat with the Q2, margins were almost 100 basis points below expectations due to lower fixed cost absorption. We also incurred additional costs on the legacy industrial project that reduced margins by almost 100 basis points. This project has been challenging to close out for the past few quarters, but we expect to be off-site in Q4 and believe that we have appropriately accounted for potential risks in our guidance.

Third quarter clean energy revenue was $1 1 billion and adjusted EBITDA was $58 million or five 2% of revenue.

Speaker 5: Third quarter clean energy revenue was $1.1 billion and adjusted EBITDA was $58 million or 5.2% of revenue.

While we did achieve 12% year over year organic revenue growth in the quarter revenue and adjusted EBITDA were both well below expectations.

Speaker 5: While we did achieve 12% year-over-year organic revenue growth in the quarter, revenue and adjusted EBITDA were both well below expectation.

Driven by delays in execution of certain contracts and performance challenges on certain legacy projects.

Speaker 5: given by the ladies' execution of certain contracts and performance challenges on certain legacy projects.

While margins held flat with the second quarter margins were almost 100 basis points below below.

Paul DiMarco: While margins held flat with the Q2, margins were almost 100 basis points below expectations due to lower fixed cost absorption. We also incurred additional costs on the legacy industrial project that reduced margins by almost 100 basis points. This project has been challenging to close out for the past few quarters, but we expect to be off-site in Q4 and believe that we have appropriately accounted for potential risks in our guidance.

Speaker 5: While margins held flat with the second quarter, margins were almost 100 basis points below expectations due to lower fixed cost absorption.

Below expectations due to lower fixed cost absorption.

We also incurred additional cost on the legacy industrial project that reduced margins by almost 100 basis points.

Speaker 5: We also incurred additional costs on the legacy industrial project that reduced margins by almost 100 basis points.

Paul Dimarco: We also incurred additional costs on the legacy industrial project that reduced margins by almost 100 basis points. This project has been challenging to close out for the past few quarters, but we expect to be off-site in Q4 and believe that we have appropriately accounted for potential risks in our guidance.

This project has been challenging to close out for the past few quarters, but we expect to be upside in Q4, and believe that we've appropriately accounted for potential risks in our guidance.

Speaker 5: This project has been challenging to close out for the past few quarters, but we expect to be off site in Q4 and believe that we have appropriately accounted for potential risks in our guidance.

Our oil and gas segment generated revenue of $672 million in Q3, a year over year increase of 79%, but approximately 20% below our expectation as we saw a slower ramp than anticipated on the mountain Valley pipeline.

Speaker 5: Our oil and gas segment generated revenue of $672 million in Q3, a year-over-year increase of 79%, but approximately 20% below our expectation as we saw a slower ramp than anticipated on the Mountain Valley Pipeline.

Paul Dimarco: Our oil and gas statement generated revenue of $672 million in Q3, a year-over-year increase of 79%, but approximately 20% below our expectation as we saw a slower ramp than anticipated on the mountain valley pipeline. As a reminder, we had to mobilize almost 3,700 crew members to the site. We encountered some delays due to the ongoing legal challenges the project faced, even after receiving approval under the debt ceiling release bill passed over the summer.

Paul DiMarco: Our oil and gas segment generated revenue of $672 million in Q3, a year-over-year increase of 79%, but approximately 20% below our expectation, as we saw a slower ramp than anticipated on the Mountain Valley Pipeline. As a reminder, we had to mobilize almost 3,700 crew members to the site. We encountered some delays due to the ongoing legal challenges the project faced, even after receiving approval under the Debt Ceiling Relief Bill passed over the summer. Adjusted EBITDA was $97 million, in line from a rate expectation at 14.5%, but lower than guidance, commensurate with the revenue shortfall. We are now fully ramped on the project and expect construction to be completed in the first half of 2024.

As a reminder, we had to mobilize almost 3700 crew members to the site.

Speaker 5: As a reminder, we had to mobilize almost 3,700 crew members to the site.

We encountered some delays due to the ongoing legal challenges the project phase even after receiving approval under the debt ceiling relief bill passed over the summer.

Paul DiMarco: We encountered some delays due to the ongoing legal challenges the project faced, even after receiving approval under the Debt Ceiling Relief Bill passed over the summer. Adjusted EBITDA was $97 million, in line from a rate expectation at 14.5%, but lower than guidance, commensurate with the revenue shortfall. We are now fully ramped on the project and expect construction to be completed in the first half of 2024.

Speaker 5: We encountered some delays due to the ongoing legal challenges the project faced even after receiving approval under the Debt Ceiling Relief Bill passed over the summer.

Adjusted EBITDA was $97 million in line from a rate expectation at 14, 5%, but lower than guidance commensurate with the revenue shortfall.

Paul Dimarco: Adjusted EBITDA was $97 million in line from a rate expectation at 14.5%, but lower than guidance commensurate with the revenue shortfall. We're now fully ramped on the project and expect construction to completed in the first half of 2024.

Speaker 5: Adjusted EBITDA was $97 million in line from a rate expectation at 14.5%, but lower than guidance commensurate with the revenue shortfall.

We are now fully ramped on the project and expect construction to completed in the first half of 2024.

Speaker 5: We are now fully ramped on the project and expect construction to be completed in the first half of 2024.

Our communications segment also had activity than expected with revenue of $824 million $76 million below forecast.

Paul Dimarco: Our communications segment also had less activity than expected, with revenue of $824 million, $76 million below forecast. We saw continued pull back from our wireless customers in excess of previous expectations, and we also experienced moderated fiber spending late in the quarter, which we expect to continue through your end. Adjusted EBITDA was $78 million for Q3, or 9.5% of revenue. Lower volume in the quarter impacted absorption of our indirect expenses, lowering our margins by approximately 200 basis points versus guidance.

Paul DiMarco: Our communication segment also had less activity than expected, with revenue of $824 million, $76 million below forecast. We saw continued pullback from our wireless customers in excess of previous expectations, and we also experienced moderated fiber spending late in the quarter, which we expect to continue through year-end. Adjusted EBITDA was $78 million for Q3, or 9.5% of revenue. Lower volume in the quarter impacted absorption of our indirect expenses, lowering the margins by approximately 200 basis points versus guidance. Lastly, our power delivery segment had Q3 revenue of $665 million, $85 million below guidance, and adjusted EBITDA of $57 million, or 8.6% of revenue.

Speaker 5: Our communication segment also had less activity than expected, with revenue of $824 million, $76 million below forecast.

We saw continued pullback from our wireless customers in excess of previous expectations and we also experienced moderated fiber spending late in the quarter, which we expect to continue through year end.

Speaker 5: We saw continued pullback from our wireless customers in excess of previous expectations, and we also experienced moderated fiber spending late in the quarter, which we expect to continue through year end.

Adjusted EBITDA was $78 million for Q3 or nine 5% of revenue.

Speaker 5: Adjust the diva style was $78 million for Q3 or 9.5% of revenue.

Lower volume in the quarter impacted absorption of our indirect expenses lowered margins by approximately 200 basis points versus guidance.

Speaker 5: Lower volume in the quarter impacted absorption of our indirect expenses, lowering our margins by approximately 200 basis points versus guidance.

Paul DiMarco: Lower volume in the quarter impacted absorption of our indirect expenses, lowering the margins by approximately 200 basis points versus guidance. Lastly, our power delivery segment had Q3 revenue of $665 million, $85 million below guidance, and adjusted EBITDA of $57 million, or 8.6% of revenue.

Lastly, our power delivery segment had Q3 revenue of $665 million $85 million below guidance, and adjusted EBITDA of $57 million or eight 6% of revenue.

Speaker 5: Lastly, our power delivery segment had Q3 revenue of $665 million, $85 million below guidance and adjusted EBITDA of $57 million or 8.6% of revenue.

Paul Dimarco: Lastly, our power delivery segment had Q3 revenue of $665 million, $85 million below guidance, and adjusted EBITDA of $57 million, or 8.6% of revenue. While margins were up 40 basis points from Q2, we shall fell short of our guidance due to lower utilization of our crews and equipment. Several of our utility customers have indicated their spending will slow down for the balance of the year as they manage annual capital budgets and this higher cost of capital. We began to see pull back late in the third quarter, but we expect this to be a short-term trend that will be alleviated as we move into 2024 annual budgets are replenished.

While margins were up 40 basis points from Q2 with shelf fell short of our guidance of our guidance due to lower utilization of our crews and equipment.

Speaker 5: While margins were up 40 basis points from Q2, we fell short of our guidance due to lower utilization of our crews and equipment.

Paul DiMarco: While margins were up 40 basis points from Q2, we fell short of our guidance due to lower utilization of our crews and equipment. Several of our utility customers have indicated their spending will slow down for the balance of the year as they manage annual capital budgets amidst higher cost of capital. We began to see pullback late in the third quarter, but we expect this to be a short-term trend that will be alleviated as we move into 2024 annual budgets are replenished. Emergency restoration services also trended below our expectations, and very little activity is expected in the fourth quarter. Backlog as of the third quarter was $12.5 billion, reflecting a 7% decline versus the second quarter.

Several of our utility customers have indicated they're spending will slow down for the balance of the year as they manage annual capital budgets in this higher cost of capital.

Speaker 5: Several of our utility customers have indicated their spending will slow down for the balance of the year as they manage annual capital budgets amidst higher costs of capital.

We began to see pullback late in the third quarter, but we expect this to be a short term trend that will be alleviated as we move into 2024 annual an annual budgets are replenished.

Speaker 5: We begin to see pullback late in the third quarter. So we expect this to be a short-term trend that will be alleviated as we move into 2024, annual budget's are replanted.

Paul DiMarco: We began to see pullback late in the third quarter, but we expect this to be a short-term trend that will be alleviated as we move into 2024 annual budgets are replenished. Emergency restoration services also trended below our expectations, and very little activity is expected in the fourth quarter. Backlog as of the third quarter was $12.5 billion, reflecting a 7% decline versus the second quarter.

Emergency restoration services also trended below our expectations and very little activity as expected in the fourth quarter.

Paul Dimarco: Emergency restoration services also trend below our expectations, and very little activity is expected in the fourth quarter.

Speaker 5: Emergency Restoration Services also trend below our expectations, and very little activity is expected in the fourth quarter.

Backlog as of the third quarter was $12 5 billion, reflecting a 7% decline versus the second quarter.

Paul Dimarco: Backlog as of the third quarter was $12.5 billion, reflecting a 7% decline versus the second quarter. The decline was driven by lower near-term activity, expected in our communication and power delivery MSA work, the significant Q3 revenue burn in oil and gas, and timing of contract executions and our clean energy segment. For some additional color, we signed over $500 million of contracts in clean energy alone since September 30 that are not included in Q3 backlog.

Speaker 5: Backlog as of the third quarter was $12.5 billion, reflecting a 7% decline versus the second quarter.

The decline was driven by lower near term activity expected in our communication and power delivery MSA work.

Speaker 5: The decline was driven by lower near-term activity expected in our communication and power delivery MSA work, the significant Q3 revenue burn in oil and gas, and timing of contract

Paul DiMarco: The decline was driven by lower near-term activity expected in our communication and power delivery MSA work, the significant Q3 revenue burn in oil and gas, and timing of contract executions in our clean energy segment. For some additional color, we signed over $500 million of contracts in clean energy alone since 30 September 2023, that are not included in Q3 backlog. Additionally, after these contract signings, we continue to work on projects under limited notice to proceed that have approximately $2 billion of contract value. Per our policy, these contracts will be included in backlog once fully executed. We have also signed or received verbal awards totaling over $300 million for both the communication and power delivery segments. These awards are related to work for new customers, geographic expansion, or new services with existing clients.

Significant Q3 revenue burn in oil and gas and.

And timing of contract executions in our clean energy segment.

For some additional color, we signed over $500 million of contracts and clean energy alone. Since September 30 that are not included in Q3 backlog.

Speaker 5: For some additional color, we signed over $500 million of contracts in clean energy alone since September 30th that are not included in Q3 backlog.

Additionally, after these contract signings, we continue to work on projects under a limited notice to proceed that of approximately $2 billion of contract value.

Speaker 5: Additionally, after these contract signings, we continue to work on projects under limited notice to proceed that have approximately $2 billion of contract value.

Paul DiMarco: Additionally, after these contract signings, we continue to work on projects under limited notice to proceed that have approximately $2 billion of contract value. Per our policy, these contracts will be included in backlog once fully executed. We have also signed or received verbal awards totaling over $300 million for both the communication and power delivery segments. These awards are related to work for new customers, geographic expansion, or new services with existing clients.

Paul Dimarco: Additionally, after these contract signings, we continue to work on projects under limited notice to proceed that of approximately $2 billion of contract value. For our policy, these contracts will be included in backlog once fully executed. We have also signed or received verbal awards totaling over $300 million for both the communication and power delivery segments. These awards are related to work for new customers, geographic expansion, or new services with existing clients.

For our policy. These contracts will be included in backlog once fully executed.

Speaker 5: For our policy, these contracts will be included in backlog once fully executed.

We have also signed or received verbal awards totaling over $300 million for both the communication and power delivery segments.

Speaker 5: We have also signed or received verbal awards totaling over $300 million for both the communication and power delivery segment.

These awards are related to work for new customers geographic expansion or new services with existing clients.

Speaker 5: These awards are related to work for new customers, geographic expansion, or new services with existing clients.

Q3 cash flow generated by operations was $294 million, reducing our net debt by $213 million to about $3 billion.

Speaker 5: Q3 cashflow generated by operations was $294 million, reducing our net debt by $213 million to about $3 billion.

Paul DiMarco: Q3 cash flow generated by operations was $294 million, reducing our net debt by $213 million to about $3 billion. The cash flow was driven by improved working capital metrics, with DSO and DPO both improving, and now in line with historical levels. DSO improved to 85 days, down from 90 days at Q2, and we expect further improvement in subsequent quarters. For the third quarter, net debt leverage improved slightly to 3.4 times, and liquidity also improved to approximately $1.2 billion. Factoring in the developments during Q3, we now expect 2023 revenue to approximate $12 billion, with Adjusted EBITDA of $850 million, or 7.1% of revenue.

Paul Dimarco: Q3 cashflow generated by operations was $294 million, reducing our net debt by $213 million to about $3 billion. The cashflow was driven by improved working capital metrics with DSO and DPO, both improving and now in line with historical levels. DSO improved to 85 days down from 90 days at Q2, and we expect further improvement in subsequent quarters. For the third quarter, net debt leverage improves slightly to 3.4 times, and liquidity also improved to approximately $1.2 billion.

The cash flow was driven by improved working capital metrics with DSO and depot, both improving and now in line with historical levels.

Speaker 5: The cash flow was driven by improved working capital metrics, with DSO and DPO both improving and now in line with historical levels.

DSO improved to 85 days down from 90 days at Q2, and we expect further improvement in subsequent quarters.

Speaker 5: ESO improved to 85 days down from 90 days of Q2, and we expect further improvement in sub-screen quarters.

For the third quarter net debt leverage improved slightly to three four times and liquidity also improved to approximately $1 2 billion.

Speaker 5: For the third quarter, net debt leverage improved slightly to 3.4 times and liquidity also improved to approximately $1.2 billion.

Paul DiMarco: For the third quarter, net debt leverage improved slightly to 3.4 times, and liquidity also improved to approximately $1.2 billion. Factoring in the developments during Q3, we now expect 2023 revenue to approximate $12 billion, with Adjusted EBITDA of $850 million, or 7.1% of revenue.

Factoring factoring in the developments during Q3, we now expect 2023 revenue to approximately $12 billion.

Speaker 5: Factoring in the development during Q3, we now expect 2023 revenue to approximate $12 billion with a just a debit of $850 million or 7.1% of revenue.

Paul Dimarco: Factoring in the development during Q3, we now expect 2023 revenue to approximate $12 billion with a just a debit of $850 million or 7.1% of revenue. New. This reflects a significant reduction from a prior guidance driven by the near-term developments we are experiencing across the business. While we are disappointed in the 2023 expected results, we feel confident that Thalh Wick is a public conservative and light of the current market.

With adjusted EBITDA of $850 million or seven 1% of revenue.

This reflects a significant reduction from our prior guidance driven by the near term developments, we are experiencing across the business.

Paul DiMarco: This reflects a significant reduction from our prior guidance, driven by the near-term developments we are experiencing across the business. While we are disappointed in the 2023 expected results, we feel confident this outlook is appropriately conservative in light of the current market. From a segment perspective, our oil and gas segment full-year revenue expectation remains unchanged for 2023 at $2 billion, with Adjusted EBITDA margins in the mid-teens. For the fourth quarter, we expect revenue of approximately $740 million and Adjusted EBITDA margins in the low double digits. Full-year clean energy segment revenue is now expected to be approximately $4 billion, with Adjusted EBITDA margins in the low to mid-single digits. We have a very strong pipeline of projects and are pleased with the post-Q3 project signings, but expect specific project start dates to produce some quarter-to-quarter variability.

Speaker 5: This reflects a significant reduction from a prior guidance driven by the near term developments we are experiencing across the business.

While we are disappointed in the 2023 expected results we feel confident in this outlook is appropriately conservative in light of the current market.

Speaker 5: While we are disappointed in the 2023 expected results, we feel confident this outlook is appropriately conservative in light of the current market.

From a segment perspective.

Paul Dimarco: From a segment perspective, our oil and gas segment, Full Your Revenue Expectation remain unchanged for 2023 at $2 billion, with adjusted EBITDA margins in the mid-teens. For the fourth quarter, we expect revenue of approximately $740 million and adjusted EBITDA margins and the low double digits.

Our oil and gas segment full year revenue expectations remain unchanged for 2023 at $2 billion with adjusted EBITDA margins in the mid teens.

Speaker 5: Our oil and gas segment, Fully A Revenue Expectation, remain unchanged for 2023 at $2 billion, with adjusted even done margins in the mid-

For the fourth quarter, we expect revenue of approximately $740 million and adjusted EBITDA margins in the low double digits.

Speaker 5: For the fourth quarter, we expect revenue of approximately $740 million in adjusted EBITDA margins and the low double digits.

Paul DiMarco: For the fourth quarter, we expect revenue of approximately $740 million and Adjusted EBITDA margins in the low double digits. Full-year clean energy segment revenue is now expected to be approximately $4 billion, with Adjusted EBITDA margins in the low to mid-single digits. We have a very strong pipeline of projects and are pleased with the post-Q3 project signings, but expect specific project start dates to produce some quarter-to-quarter variability.

Full year clean energy segment revenue is now expected to be approximately $4 billion with adjusted EBITDA margins in the low to mid single digits.

Speaker 5: Full year clean energy segment revenue is now expected to be approximately $4 billion with adjusted EBITDA margins in the low to mid single digit.

Paul Dimarco: Full year, clean energy segment revenue is now expected to be approximately $4 billion, with adjusted EBITDA margins in the low-to-mid single digits. We have a very strong pipeline of projects and are pleased with the post-Q3 project findings, but expect specific project start dates to produce some quarter to quarter variability. Marginers are expected to turn lower than our previous expectations due to the continued costs we are carrying and preparation for significant volume growth. Fourth quarter expectations are $1.15 billion of revenue, with adjusted EBITDA margins similar to the third quarter.

We have a very strong pipeline of projects and are pleased with the post Q3 project signings, but expect specific project start dates to produce some quarter to quarter variability.

Speaker 5: We have a very strong pipeline of projects and are pleased with the post Q3 project signing.

Speaker 5: but expect specific product start dates to produce some quarter-to-quarter variability.

Margins are expected to trend lower than our previous expectations due to the continued cost we are carrying in preparation for significant volume growth.

Paul DiMarco: Margins are expected to trend lower than our previous expectations due to the continued costs we are carrying in preparation for significant volume growth. Fourth quarter expectations are $1.15 billion of revenue, with Adjusted EBITDA margins similar to the third quarter. For full year 2023, we expect our communication segment to generate $3.25 billion of revenue, with Adjusted EBITDA margins in the high single digits. We anticipate some further margin pressure versus prior guidance due to reduced operating leverage from the lower revenue expectations. Fourth quarter revenue is forecasted at $750 million, with Adjusted EBITDA margins down slightly from the third quarter. Looking to 2024, we're having good dialogue with customers on ways to drive further efficiency in their capital spend, something we are well positioned to provide through our industry-leading scale.

Speaker 5: Margins are expected to trend lower than our previous expectations due to the continued costs we are carrying in preparation for significant volume growth.

Fourth quarter expectations are $115 billion of revenue with adjusted EBITDA margins similar to the third quarter.

Speaker 5: Board of Quarters expectations are $1.15 billion of revenue with a just-a-debted margins similar to the third quarter.

For full year 2023, we expect our communications segment to generate $3 5 billion of revenue with adjusted EBITDA margins in the high single digits.

Paul Dimarco: For Full Year 2023, we expect our communications segment to generate $3.25 billion of revenue, with adjusted EBITDA margins in the high single digits. We anticipate some further margin pressure versus prior guidance due to reduced operating leverage from the lower revenue expectations. Fourth quarter revenue was forecasted at $750 million, with adjusted EBITDA margins down slightly from the third quarter.

Speaker 5: For full year 2023, we expect our communications segment to generate $3.25 billion of revenue with a justediva-de-margin and the high single digits.

We anticipate some further margin pressure versus prior guidance due to reduced operating leverage from the lower revenue expectations.

Speaker 5: We anticipate some further margin pressure versus prior guidance due to reduced operating leverage from the lower revenue expectation.

Paul DiMarco: We anticipate some further margin pressure versus prior guidance due to reduced operating leverage from the lower revenue expectations. Fourth quarter revenue is forecasted at $750 million, with Adjusted EBITDA margins down slightly from the third quarter. Looking to 2024, we're having good dialogue with customers on ways to drive further efficiency in their capital spend, something we are well positioned to provide through our industry-leading scale.

Fourth quarter revenue was forecasted at $750 million with adjusted EBITDA margins down slightly from the third quarter.

Speaker 5: Fourth quarter revenue was forecasted at $750 million with adjusted EBITDA margins down slightly from the third quarter.

Looking to 2024, we're having good dialogue with customers on ways to drive further efficiency in their capital spend something we are well positioned to provide through our industry leading scale.

Speaker 5: Looking to 2024, we're having good dialogue with customers on ways to drive further efficiency in their capital spend. Something we are well positioned for vibes, through our industry leading scale.

Paul Dimarco: Looking to 2024, we're having good dialogue with customers on ways to drive further efficiency in their capital spend, something we are well positioned for vides through our industry leading scale.

Finally full year 2023 power delivery segment revenue is now expected to be $2 7 billion.

Speaker 5: Finally, full year 2023 power delivery segment revenue is now expected to be $2.7 billion with high single digit EBITDA margins.

Paul DiMarco: Finally, full year 2023 power delivery segment revenue is now expected to be $2.7 billion, with high single-digit EBITDA margins. Margins are expected to be lower than previous forecasts due to reduced operating leverage and the expectation of very little emergency restoration work. Fourth quarter expectations are roughly similar to Q3 performance for both revenue and adjusted EBITDA. We've also revised our full year 2023 adjusted earnings per share guidance to $1.75, driven by lower anticipated earnings, partially offset by a lower expected effective tax rate. In light of the revised guidance, we now expect to generate cash flow from operations of approximately $500 million for the second half of 2023, and $400 million for the full year. This equates to approximately $200 million of cash flow from operations in Q4.

Paul Dimarco: Finally, Full Year 2023 Power Delivery segment revenue is now expected to be $2.7 billion, with high single digit EBITDA margins. Marginers are expected to be lower than previous forecasts due to reduced operating leverage and the expectation of very little emergency restoration work. Fourth quarter expectations are roughly similar to Q3 performance for both revenue and adjusted EBITDA.

With high single digit EBITDA margins.

Margins are expected to be lower than previous forecast due to reduced operating leverage and the expectation of very little emergency restoration work.

Speaker 5: Marges are expected to be lower than previous forecasts due to reduced operating leverage and the expectation of very little emergency restoration work.

Fourth quarter expectations are roughly similar to Q3 performance for both revenue and adjusted EBITDA.

Speaker 5: Fourth quarter expectations are roughly similar to Q3 performance for both revenue and adjusted EBITDA.

We've also revised our full year 2023 adjusted earnings per share guidance to $1 75.

Speaker 5: We've also revised our full year 2023 adjusted drinks per share guidance to $1.75.

Paul Dimarco: We've also revised our Full Year 2023 adjusted earnings per share guidance to $1.75 driven by lower anticipated earnings partially offset by a lower expected expected tax rate. In light of the revised guidance, we now expect to generate cash flow from operations of approximately $500 million for the second half of 2023 and $400 million for the full year. This equates to approximately $200 million of cash flow from operations in Q4. Net debt leverage is expected to remain in the low three times at your end, higher than our sustained target of 2.5 times, but we are committed to return to this level next year, and we believe our 2024 outlook will readily support our leverage objectives.

Paul DiMarco: We've also revised our full year 2023 adjusted earnings per share guidance to $1.75, driven by lower anticipated earnings, partially offset by a lower expected effective tax rate. In light of the revised guidance, we now expect to generate cash flow from operations of approximately $500 million for the second half of 2023, and $400 million for the full year. This equates to approximately $200 million of cash flow from operations in Q4.

Driven by lower anticipated earnings, partially offset by a lower expected effective tax rate.

Speaker 5: driven by lower anticipated earnings partially offset by a lower expected effective tax rate.

In light of the revised guidance, we now expect to generate cash flow from operations of approximately $500 million for the second half of 2023 and $400 million for the full year.

Paul Dimarco: Recall that Q1 is generally our slowest quarter, so our lower working capital requirements should support continued cash flow generation.

Speaker 5: In light of the revised guidance, we now expect to generate cash flow from operations of approximately $500 million for the second half of 2023, and $400 million for the full year.

This equates to approximately $200 million of cash flow from operations in Q4.

Speaker 5: This equates to approximately $200 million of cash flow from operations in Q4.

Net debt leverage is expected to remain in the low three times at year end higher than our sustained target of two five times, but we are committed to return to this level next year.

Speaker 5: Net debt leverage is expected to remain in the low three times at year end, higher than our sustained target of 2.5 times, but we are committed to return to this level next year and we believe our 2024 outlook will readily support our leverage objective.

Paul DiMarco: Net debt leverage is expected to remain in the low 3 times at year-end, higher than our sustained target of 2.5 times, but we are committed to return to this level next year, and we believe our 2024 outlook will readily support our leverage objectives. Recall that Q1 is generally our slowest quarter, so our lower working capital requirements should support continued cash flow generation. Finally, while we are still early in our 2024 planning process, we felt it was important to provide investors with some preliminary, achievable guidance off the disappointing results for 2023.

And we believe our 2024 outlook will readily support our leverage objectives.

Recall that Q1 is generally our slowest quarter slow so our lower working capital requirements should support continued cash flow generation.

Paul DiMarco: Recall that Q1 is generally our slowest quarter, so our lower working capital requirements should support continued cash flow generation. Finally, while we are still early in our 2024 planning process, we felt it was important to provide investors with some preliminary, achievable guidance off the disappointing results for 2023.

Speaker 5: Recall that Q1 is generally our slowest quarter. So our lower working capital requirements should support continued cash flow generation.

Finally.

While we are still early in our 2020 for planning process. We felt it was important to provide investors investors with some preliminary achievable guidance off the disappointing results for 2023.

Speaker 5: Finally, while we are still early in our 2024 planning process, we felt it was important to provide investors with some preliminary achievable guidance off the discipline and results for 2023.

Paul Dimarco: Finally, while we are still early in our 2024 planning process, we've felt it was important to provide investors with some preliminary achievable guidance off the discipline of results for 2023. To recap, the initial 2024 outlook provided in yesterday's release and expanded on by Jose, we currently expect mid to high single digit revenue growth for the company. We expect this growth to be driven by double digit growth and clean energy, mid single digit growth and power delivery, high single digit growth and communications, and a mid single digit revenue decline in oil and gas. We expect each segment to improve margins in 2024, resulting in total company adjusted EBITDA margins of 7.5 to 8%.

To recap the initial 2024 outlook provided in yesterday's release and expanded on by Jose.

Speaker 5: To recap, the initial 2024 outlook provided in yesterday's release and expanded on by Jose.

Jose Mas: ... To recap the initial 2024 outlook provided in yesterday's release and expanded on by Jose, we currently expect mid- to high-single-digit revenue growth for the company. We expect this growth to be driven by double-digit growth in clean energy, mid-single-digit growth in power delivery, high-single-digit growth in communications, and a mid-single-digit revenue decline in oil and gas. We expect each segment to improve margins in 2024, resulting in total company Adjusted EBITDA margins of 7.5% to 8%. I'll now turn the call over to the operator for Q&A.

Jose Mas: To recap the initial 2024 outlook provided in yesterday's release and expanded on by Jose, we currently expect mid- to high-single-digit revenue growth for the company. We expect this growth to be driven by double-digit growth in clean energy, mid-single-digit growth in power delivery, high-single-digit growth in communications, and a mid-single-digit revenue decline in oil and gas. We expect each segment to improve margins in 2024, resulting in total company Adjusted EBITDA margins of 7.5% to 8%. I'll now turn the call over to the operator for Q&A.

We currently expect mid to high single digit revenue growth for the company.

Speaker 5: We currently expect mid to high single digit revenue growth for the company.

We expect this growth to be driven by double digit growth in clean energy.

Speaker 5: We expect this growth to be driven by double digit growth and clean energy. Mid single digit growth and

Mid single digit growth in power delivery hi.

High single digit growth in communications and a mid single digit revenue decline in oil and gas.

Speaker 5: High single-digit growth in communications and amid single-digit revenue decline in oil and gas.

We expect each segment to improve margins in 2024, resulting in total company adjusted EBITDA margins of seven 5% to 8%.

Speaker 5: We expect each segment to improve margins in 2024, resulting in total company adjusted either the margins of 7.5 to 8%. I'll now turn the caller over to the operator.

I'll now turn the call over the operator for Q&A.

Unknown Attendee: I'll now turn the call over to the operator for Q&A. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speaker phone, please make sure your mute button is turned off to allow your signal to reach your equipment. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions.

Thank you.

If you would like to ask a question. Please signal by pressing star one on your telephone keypad.

Operator: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute button is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We will take our first question from Alex Regal from B. Riley. Please go ahead.

Speaker 2: If you would like to ask a question, please signal by pressing star one on your telephone keypad.

Thanks for using a speaker phone. Please make sure your mute button is turned off to allow your signal to reach our equipment.

Speaker 2: If you're using a speaker phone, please make sure your mute button is turned off to allow your signal to reach air equipment.

Okay.

Speaker 2: Again, press star one to ask a question.

Star one to ask a question.

We'll pause for just a moment to allow everyone an opportunity to signal for questions.

Speaker 2: We'll pause for just a moment to allow everyone an opportunity to signal for questions.

We will take our first.

First question from Alex Regal.

Alex Riga: We will take our first question from Alex Riga from B Reilly. Please go ahead. Good morning, Jose and Paul. Good morning, Alex. You know, clearly this looks like a kitchen sink quarter and probably no surprise given the macro environment and how cloudy it's gotten out there. But how can we be reassured that the reset here sort of reflects your most conservative assumptions given sort of all the cross-currents? Well, look, there's no question, Alex, that we struggled in forecasting this year in 2023. Quite frankly, we don't want to miss. I think we spent years beating and raising. We took a lot of pride in that. We've obviously struggled here in the last little bit.

Speaker 2: we will take our first question from Alex.

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Speaker 2: Riga from B Reilly. Please go ahead.

B Riley. Please go ahead.

Good morning, Jose and Paul Good morning.

Alex Rygiel: Good morning, Jose and Paul.

Morning, Alex.

Jose Mas: Good morning, Alex.

Clearly this looks like a kitchen sink quarter, and probably no surprise, given the macro environment and how cloudy its gotten out there but.

Speaker 6: You know, clearly this looks like a kitchen sink quarter and you know, probably no surprise, given the macro environment and how cloudy it's gotten out there. But how can we be reassured that the reset here sort of reflects your most conservative assumptions given sort of all the crosscurrents?

Operator: You know, clearly this looks like a kitchen sink quarter, and, you know, probably no surprise given the macro environment and how cloudy it's gotten out there. But how can we be reassured that the reset here sort of reflects your most conservative assumptions, given sort of all the crosscurrents?

Alex Rygiel: You know, clearly this looks like a kitchen sink quarter, and, you know, probably no surprise given the macro environment and how cloudy it's gotten out there. But how can we be reassured that the reset here sort of reflects your most conservative assumptions, given sort of all the crosscurrents?

But how can we be reassured that the reset here sort of reflects your.

Most conservative assumptions, given sort of all the cross currents.

Well look there's no question, Alex So we struggled in forecasting.

Speaker 4: Well, there's no question Alex that we struggled in forecasting this year in 2023.

Jose Mas: Well, look, there's no question, Alex, that we struggled in forecasting this year in 2023. Quite frankly, we don't want to miss. I think we spent years beating and raising. We took a lot of pride in that. We've obviously struggled here in the last little bit. So, you know, we needed to set a base. This is very early for us providing outlooks for 2024, for sure. But coming off of the results that we were having, we wanted to give people an indication of what we thought would be a, a base set of earnings for 2024.

This year in 2023.

Quite frankly, we don't want to Miss I think we spent years, beating and raising we took a lot of pride in that we've obviously struggled here in the last little bit. So we needed to set a base. This is very early for us providing outlooks for 2024 for sure.

Speaker 4: Quite frankly, we don't want to miss. I think we spent years beating and raising. We took a lot of pride in that. We've obviously struggled here in the last little bit. So, you know, if we needed to set a base, this is very early for us providing outlooks for 2024, for sure. But coming off of the results that we were having, we wanted to give people an indication of what we thought would be a base set of earnings for 2020.

Jose Mas: So, you know, if we needed to set a base, this is very early for us providing outlooks for 2024, for sure, but coming off of the results that we were having, we wanted to give people an indication of what we thought would be a base set of earnings for 2024.

Both coming off of the results that we were having and we wanted to give people an indication of what we thought would be a base set of earnings for 2024.

Helpful and then can.

Speaker 6: And then, can you talk a bit about your backlog and possibly quantify backlog that maybe at risk or cancellation and also talk about sort of that base level of backlog that you have from MSAs and how stable that is in this economic environment?

Can you talk a bit about your backlog and possibly quantify backlog that may be at risk score cancellation and also talk about sort of that base level of backlog that you have from Msas and how stable that is in this economic environment.

Alex Rygiel: Helpful. And then, can you talk a bit about your backlog and possibly quantify backlog that may be at risk or cancellation? And also talk about sort of that base level of backlog that you have from MSAs and how stable that is in this economic environment.

Alex Riga: And then, can you talk a bit about your backlog and possibly quantify backlog that maybe at risk or cancellation and also talk about sort of that base level of backlog that you have from MSA's and how stable that is in this economic environment? Yeah, it's a good question, Alex. And I think it's important when you think about our backlog, right? Because we go through so much scrutiny in our backlog and what it actually takes to put in backlog that we, even in 2023, we didn't experience a significant amount of or any really cancellations or delays based on something once it was in backlog.

Yes, it's a good question, Alex and I think it's important when you think about our backlog right because we go through so much scrutiny in our backlog and what it actually takes to put in backlog that we even even in 2023, where we didn't experience a significant amount of or any really cancellations or delays based on something once it was in backlog.

Speaker 4: Yeah, it's a good question Alex and I think it's important when you think about our backlog right because we go through so much scrutiny in our backlog and what it actually takes to put in backlog that we even even in 2023 right we didn't experience a significant amount of or any really cancellations or delays based on something once it was in backlog.

Jose Mas: Yeah, it's a good question, Alex, and I think it's important when you think about our backlog, right? Because we go through so much scrutiny in our backlog and what it actually takes to put in backlog, that we, even in 2023, right, we didn't experience a significant amount of or any really cancellations or delays based on something once it was in backlog. To make it through backlog, we've got to have a signed contract. In our clean energy business, it means it needs to be a finance project. So, you know, backlog is generally not fully reflective of the work that we see in front of us. It's usually understated. In our other businesses, it's very heavy MSA driven.

To make it through backlog, we've got to have a signed contract and our clean energy business. It means it needs to be a finance project. So backlog is generally not fully reflective of the work that we see in front of us it's usually understated.

Speaker 4: To make it through backlog, we've got to have a signed contract. In our clean energy business, it means it needs to be a finance project. So, you know, backlog is generally not fully reflective of the work that we see in front of us. It's usually understated. In our other businesses, it's very heavy MSA driven. Obviously, there's some impact as the MSA.

Jose Mas: To make it through backlog, we've got to have a signed contract. In our clean energy business, it means it needs to be a finance project. So, you know, backlog is generally not fully reflective of the work that we see in front of us. It's usually understated. In our other businesses, it's very heavy MSA driven.

Alex Riga: To make it through backlog, we've got to have a sign contract in our clean energy business. It means it needs to be a finance project. So, you know, backlog is generally not fully reflective of the work that we see in front of us. It's usually understated. In our other businesses, it's very heavy MSA driven. Obviously, there's some impact as the MSA, if utility starts to come back a little bit. It impacts your go-forward rate, but it doesn't put work at risk.

In our other businesses, it's very heavy MSA, driven obviously, there is some impact as the MSA.

Jose Mas: Obviously, there's some impact as the MSA, if utilities start to cut back a little bit, it impacts your go-forward rate, but it doesn't put work at risk. So we feel really good about at least as the initial targets that we've set about 2024. We've vetted them with customers, we've vetted them with backlog. Again, we think this is really the entry-level base for us as we think about 2024.

Utilities start to come back a little bit it impacts your go forward rate.

Speaker 4: utility start to come back a little bit. It impacts your go for great, but it doesn't put work at risk. So we feel really good about at least as initial targets that we've said about 2024. We've vetted them with customers, we've vetted them with backlog. Again, we think this is really the entry-level base for us as we think about 2024.

But it doesn't put work at risk. So we feel really good about our leases. The initial targets that we've set about 2024, we bettered them with customers, we bettered them with backlog again. We think this is this is really the entry level base for us as we think about 2024.

Alex Riga: So we feel really good about, at least as the initial targets that we've said about 2024, we've vetted them with customers, we've vetted them with backlog. Again, we think this is really the entry-level base for us as we think about 2020. Thank you very much. Thanks Alex. Once again, if you would like to ask a question, please press star one. If you would, we would ask you to ask one question and one follow-up question, and then to rejoin the queue, and then to queue up again. Thank you.

Thank you very much.

Thanks, Alex.

Alex Rygiel: Thank you very much.

Jose Mas: Thanks, Alex.

Once again, if you would like to ask a question. Please press star one.

Speaker 2: Once again, if you would like to ask a question, please press star 1.

Operator: Once again, if you would like to ask a question, please press star one. If you would, we would ask you to ask one question and one follow-up question, and then to rejoin the queue and then to queue up again. Thank you. We will take our next question from Andy Kaplovitz, from Citigroup. Please go ahead.

If you would we would ask you to ask one question and one follow up question and then to rejoin the queue and then to queue up again.

Speaker 2: If you would, we would ask you to ask one question and one follow-up question and then to rejoin the queue and then to queue up again. Thank you. We will take our next question from Andy Kaplovitz from Sushi Group. Please go ahead.

Thank you we will take our next question from Andy Kaplowitz from Citigroup. Please go ahead.

Andy Kaplowitz: We will take our next question from Andy Kaplowitz from Sushi Group. Please go ahead. Good morning, everyone. Thank you. Can you give us more color into your power delivery business? I know you said that several customers push Kaplbacks into next year, but power delivery I think is supposed to be more long cycle and of anything higher rates would seemingly impact queue four versus queue three. So was it more a couple of big projects moving to the right? Was it broad-based delays? And then how are you thinking about the longer-term growth profile in that business and your confidence level of reaching your growth target for 2024? Yeah.

Hey, good morning, everyone.

Good morning, Andy.

Andrew Kaplowitz: Good morning, everyone.

Jose Mas: Morning, Andy.

And can you give us some more color into your power delivery business. I know you said that several customers pushing capex into next year, but I will go very power delivery I think is supposed to be more long cycle and if anything higher rates with seemingly impact Q4 versus Q3. So was it more a couple of big projects moving to the right.

Andrew Kaplowitz: Jose, can you give us more color into your power delivery business? I, I know you said that several customers pushed CapEx into next year, but power delivery, power delivery, I think, is supposed to be, you know, more long cycle, and if anything, higher rates would seemingly impact Q4 versus Q3. So was it more, you know, a couple of big projects moving to the right? Was it broad-based delays? And then how are you thinking about the longer term growth profile in that business and your confidence level of, you know, reaching your growth target for 2024?

Speaker 7: Can you give us more color into your power delivery business? I know you said that several customers push catbacks into next year, but power delivery, I think is supposed to be more long cycle and if anything higher rates would seemingly impact Q4 versus Q3. So was it more, you know, a couple of big projects moving to the right? Was it probably the ways and then how are you thinking about the longer term growth profile in that business and your confidence level of reaching your growth target for 2024?

Based on that and how are you thinking about the longer term growth profile of that business and your confidence level of reaching your growth target for 2024.

Yeah.

Andy So I'd kind of break the business up into <unk>, one is comparing to last year.

Jose Mas: Yeah. Andy, so I'd kind of break the business up in two, right? One is comparing to last year, on a, you know, on a full year, year-over-year comparison. You know, one of the biggest challenges we had, especially from a margin perspective, was the lack of storm work in Q3. So we probably had, you know, a $50 million decline in storm work on a year-over-year basis, which impacted, again, not just margins, it impacted revenues as well. So I think when you're comparing last year to this year, that was probably the biggest driver of what you see in power delivery. When you compare it sequentially with Q2, right, we were still down. We were down about $35 million in revenue, from Q2 to Q3. Some of that was just the transition of projects.

Jose Mas: Andy, so I'd kind of break the business up into one. One is comparing the last year on a full year, year-over-year comparison. One of the biggest challenges we had, especially from the margin perspective, was the lack of storm work in queue three. So we probably had 50 million to our decline in storm work on a year-over-year basis, which impacted, again, not just margins, it impacted revenues as well. So I think when your comparing last year to this year, that was probably the biggest driver of what you see in power delivery.

Speaker 4: Andy, so I'd kind of break the business up into right one. One is comparing the last year on a full year, year over year comparison. One of the biggest challenges we had, especially from the margin perspective, was the lack of storm working Q3. So we probably had.

On a full year year over year comparison.

The biggest challenges we had especially from a margin perspective was the lack of storm work in Q3.

So we probably had.

$50 million decline in storm work on a year over year basis, which impacted again, not just margins that impacted revenues as well. So I think when you are comparing last year to this year that was probably the biggest driver of what you see in power delivery when you compared sequentially with Q2 right. We were still down we were down about $35 million in revenue from.

Speaker 4: you know, 50 million to our decline in storm work on a year over your basis, which impacted, again, not just margins, it impacted revenues as well. So I think when your comparing last year to this year, that was probably the biggest driver of what you see in power delivery. When you compare it sequentially with Q2, right, we were still down, we were down about 35 million in revenue from Q2 to Q2.

Jose Mas: So I think when you're comparing last year to this year, that was probably the biggest driver of what you see in power delivery. When you compare it sequentially with Q2, right, we were still down. We were down about $35 million in revenue, from Q2 to Q3. Some of that was just the transition of projects.

Jose Mas: When you compare it sequentially with queue two, right? We were still down. We were down about 35 million in revenue from queue two to queue three. Some of that was just the transition of projects. We finished some projects. We're starting others. We probably didn't get as quick of a start on some of those projects. Some of that comes back. And then I think that the balance of that, which is probably 10 to 15 million dollars or so, was really the beginning of what we saw with some pullbacks and utilities.

Q2 to Q3 some of that was just the transition of projects. We finished some projects were starting others, we probably didn't get as critical to start on some of those projects some of that comes back.

Speaker 4: Some of that was just the transition of projects. We finished some projects, we're starting others. We probably didn't get as quick of a start on some of those projects. Some of that comes back.

Jose Mas: We finished some projects, we're starting others. We probably didn't get as quick of a start on some of those projects. Some of that comes back. And then I think that the balance of that, you know, which is probably, you know, $10 to 15 million or so, was really the beginning of what we saw with some pullbacks in utilities. So you know, it wasn't, it wasn't a huge number, but it was significant. It'll continue into Q4 to some extent. And then we think that, again, we talked about these vendor consolidation efforts, which again, we think we've actually fared really well in and position us well going into, going into next year. So as we think about it, right, you know, we'll, we'll grow revenue slightly in 2023 versus 2022.

And then I think that the balance of that which is probably $10 million to $15 million or so it was really the beginning of what we saw with some pullbacks in utilities.

Speaker 4: And then I think that the balance of that, which is probably 10 to 15 million dollars or so, was really the beginning of what we saw with some pullbacks in utility.

So it wasn't it wasn't a huge number but it was significant it will continue into Q4 to some extent and then we think that again, we talked about these vendor consolidation efforts, which again, we think we've actually fared really well in and position us well going into going into next year. So as we think about it right.

Speaker 4: So, you know, it wasn't a huge number, but it was significant. It'll continue into Q4 to some extent. And then we think...

Jose Mas: So it wasn't a huge number, but it was significant. It'll continue in the queue four to some extent. And then we think that, again, we talked about these vendor consolidation efforts, which, again, we think we've actually fairly well in and positioned us well going into next year. So as we think about it right, we'll grow revenue slightly in 23 versus 22. We've talked in previous calls about some of the contracts that we kind of got out of late last year, early this year that impacted revenue on a full-year basis, especially from some of the acquisition activity that we previously made.

Jose Mas: It'll continue into Q4 to some extent. And then we think that, again, we talked about these vendor consolidation efforts, which again, we think we've actually fared really well in and position us well going into, going into next year. So as we think about it, right, you know, we'll, we'll grow revenue slightly in 2023 versus 2022.

Speaker 4: Again, we talked about these vendor consolidation efforts, which again, we think we've actually fared really well in and positioned us well going into next year. So as we think about it, right, we'll grow revenue slightly in 23 versus 22.

We'll grow revenue slightly in 'twenty three versus 22, we've talked in previous calls about some of the contracts that we kind of got out of late last year. Early this year that impacted revenue on a full year basis, especially from some of the <unk> from some of the acquisition activity that we had previously made.

Speaker 4: We've talked in previous calls about some of the contracts that we kind of got out of late last year, early this year that impacted revenue on a full year basis, especially from some of the acquisition activity that we have previously made.

Jose Mas: We've talked in previous calls about, you know, some of the contracts that we kind of got out of late last year, early this year, that impacted revenue on a full year basis, especially from some of the acquisition activity that we had previously made. So I think it really sets up the year nicely for us in 2024. We've come out with a, you know, an initial guide of, you know, mid-single digits in growth. We're hoping that that tends to be conservative. There's a ton of activity out there in transmission and substation, and it's an area that we've really focused on.

I think it really sets up the year nicely for us in 24, we've come out with an initial guide of mid single digits in growth, we're hoping that that tends to be conservative.

Speaker 4: So I think it really sets up the year nicely for us in 24. We've come out with an initial guide of mid-single digits in growth. We're hoping that that tends to be conservative.

Jose Mas: So I think it really sets up the year nicely for us in 24. We've come out with an initial guide of mid-single digits and growth. We're hoping that that tends to be conservative. There's a ton of activity out there in transmission and substation in the scenario that we've really focused on. So lots of opportunities for us, but again, really early, we're still in October. So we feel really comfortable that we can achieve that just based on the MSA contracts that we have, the awards that we've been given, and what we're expecting from our client-based predominantly in our distribution work. Very helpful.

There's a ton of activity out there and and transmission and substation and it's an area that we've really focused on so lots of opportunities for us, but again really early were still in October so.

Speaker 4: There's a ton of activity out there in transmission and substation and in the scenario that we've really focused on. So lots of opportunities for us, but again, really early we're still in October . So we feel really comfortable that we can achieve that just based on the MSA contracts that we have, the awards that we've been given and what we're expecting from our client base predominantly in our distribution.

Jose Mas: So, lots of opportunities for us, but again, really early, we're still in October, so, you know, we feel really comfortable that we can achieve that just based on the MSA contracts that we have, the awards that we've been given, and what we're expecting from our client base, predominantly in our distribution work.

We feel really comfortable that we can achieve that just based on the MSA contracts that we have the awards that we've been given and what we're expecting from our client base predominantly in our distribution work.

Very helpful. Jose and then maybe just can you give us a little more color into how youre thinking about clean energy and discipline and the quality of your customer base, particularly at IAA.

Andrew Kaplowitz: Very helpful, Jose. And then maybe just can you give us a little more color into how you're thinking about clean energy at this point and the quality of your customer base, particularly at IA? What's the risk that, you know, announcements, such as the recent announcement from one of your customers to pause their construction, are not just one-off, but are a function of some more challenged customers? And how do you scrub your backlog to make sure you aren't surprised again by the type of announcement you disclosed from that customer?

Speaker 7: very helpful. I mean, maybe just can you give us a little more color into how you're thinking about clean energy at this point in the quality of your customer base, particularly at IA. What's the risk that you're announcing such as the recent announcement from one of your customers to pause their construction or are not just one off, but are a function of some more challenged customers? And how do you scrub your backlog to make sure you aren't surprised again by the type of announcement you disclose from that customer?

Andy Kaplowitz: I mean, maybe just can you give us a little more color into how you're thinking about clean energy at this point and the quality of your customer-based, particularly at IA? What's the risk that announcement such as the recent announcement in front of one of your customers to pause their construction or are not just one-off, but are a function of some more challenged customers? And how do you scrub your backlog to make sure you aren't surprised again by the type of announcement you disclose from that customer?

Risks that you announced their intentions to recent announcement front of one of your customers to pause their construction are not just one off.

A function of some more challenged customers and how do you scrub your backlog to make sure you are surprised again by the type of announcement you disclose from that customer.

Yes, so I mean, one of the things I want to be really clear about because one of the questions. We had to ask ourselves over the course of the last few months as did we buy an inferior customer base with the acquisition of IAA and I think the flat I'd answer that is no. We did not right I think we have a great customer base at IAA.

Speaker 4: Yeah, so I mean, one of the things I want to be really clear about, because one of the questions we had to ask ourselves over the course of the last few months is, I mean, did we buy an inferior customer base?

Jose Mas: Yeah. So I mean, one of the things I wanna be really clear about, because one of the questions we had to ask ourselves over the course of the last few months is, I mean, did we buy an inferior customer base with the acquisition of IEA? And I think the flat-out answer to that is no, we did not, right? I think we have a great customer base at IEA. Customers with lots of history, lots of installed capacity. They know exactly what they're doing. They're customers that, in some cases, you know, were more dependent on different financing strategies. It doesn't make them better or worse; it just made them different this year.

Andy Kaplowitz: Yeah, so, I mean, one of the things I want to be really clear about, because one of the questions we had to ask ourselves over the course of the last few months is, I mean, did we buy an inferior customer base with the acquisition of IA? And I think the, the flat I'd answer that is, no, we did not, right? I think we have a great customer base at IA, customers with lots of history, lots of installed capacity.

Speaker 4: with the acquisition of I.A. And I think the flat I'd answer that is no, we did not, right? I think we have a great customer-based I.A. Customers with lots of history, lots of installed capacity.

Customers, who have lots of history.

Jose Mas: Customers with lots of history, lots of installed capacity. They know exactly what they're doing. They're customers that, in some cases, you know, were more dependent on different financing strategies. It doesn't make them better or worse; it just made them different this year.

Lots of installed capacity.

Exactly what theyre doing their customers that in some cases, we're more dependent on different financing strategies that doesn't make them.

Speaker 4: you know exactly what they're doing their customers that in some cases you know we're more dependent on different financing strategies it doesn't make them better or worse it just made them different this year so i i think when we think about the challenges that we had in twenty three uh... obviously i i do think uh...

Andy Kaplowitz: They know exactly what they're doing. They're customers that in some cases, you know, were more dependent on different financing. Strategies, it doesn't make them better or worse. It just made them different this year. So I think when we think about the challenges that we had in 23, obviously, I do think we should have better understood the risk and position, the opportunities in the business to be more broad base with different types of clients.

Better or worse. It just made them different this year. So I think when we think about the challenges that we had in 'twenty three.

Jose Mas: So I think when we think about the challenges that we had in 2023, obviously, I do think we should have better understood the risk and position the opportunities in the business to be more broad-based with different types of clients, and that's exactly what we're doing for 2024. So we've spent months going through every possible project that exists, every project that we're being asked to participate in. We're prioritizing those that we think have a really high degree and level of confidence that are gonna absolutely happen in 2024, and that's how we're building our 2024 plan. I mean, what really changes is if the market improves, right?

Obviously I do think.

We should have better understood the risk and position the opportunities in the business to be more broad based with different types of clients and thats exactly what were doing for 2024. So we've spent months.

Speaker 4: We should have better understood the risk and position, the opportunities in the business to be more broad-based with different types of clients. And that's exactly what we're doing for 2024. So we've spent months.

Andy Kaplowitz: And that's exactly what we're doing for 2024. So we've spent months going through every possible project that exists, every project that we're being asked to participate in. We're prioritizing those that we think have a really high degree and level of confidence that are going to absolutely happen in 2024. And that's how we're building our 2024 plan. I mean, what really changes is if the market improves, right? If, you know, once tax equity gets behind us, which we expect to happen by year end, and people get to start financing projects in multiple ways, we think that's going to create a huge catalyst of new projects of which many we're going to be involved with.

Going through every possible project that exists every project that we are.

Speaker 4: Going through every possible project that exists every project that we're that we're being asked to participate in we're Prioritizing those that that we think have a really high degree and level of confidence that are going to absolutely happen in 2024 and that's how we're building our 2024 plan. I mean what really changes is if the market improves, right?

We're being asked to participate in we're prioritizing those that we think have a really high degree and level of confidence that we're going to absolutely happen in 2024, and that's how we're building our 2024 plan I mean, we're really changes as the market improves right if if.

Jose Mas: We're prioritizing those that we think have a really high degree and level of confidence that are gonna absolutely happen in 2024, and that's how we're building our 2024 plan. I mean, what really changes is if the market improves, right?

Once tax equity gets behind us, which we expect to happen by year end and people get to start financing projects in multiple ways, we think thats going to create.

Jose Mas: If you know, once Tax Equity gets behind us, which we expect to happen by year-end, and people get to start financing projects in multiple ways, we think that's gonna create a huge catalyst of new projects, of which many we're gonna be involved with, and we think that'll be a big catalyst of the business. We're not really including a lot of that as we think about 2024, because we're not 100% sure of the timing. So again, we're hoping that as the year starts, we've built our plan with a very solid customer base, and then we can grow that based on, you know, some of the opportunities that are gonna come as the year progresses.

Speaker 4: If, you know, once tax equity gets behind us, which we expect to happen by year end, and people get to start financing projects in multiple ways, we think it's going to create a huge catalyst of new projects, of which many we're going to be involved with. And we think that'll be a big catalyst of the business. We're not really including a lot of that as we think about 2024, because we're not 100% sure of the timing.

Huge catalysts of new projects.

Which many we're going to be involved with and we think that'll be a big catalyst of the business, we're not really including a lot of that as we think about 2024, because we're not 100% sure of the timing. So again, we're hoping that as the year starts we built our plan with.

Andy Kaplowitz: And we think that'll be a big catalyst of the business. We're not really including a lot of that as we think about 2024 because we're not 100% sure of the timing. So again, we're open that as the year starts, we built our plan with a very solid customer base, and then we can grow that based on, you know, some of the opportunities are going to come as a year progresses. Appreciate the color of the day. Thanks, Andy.

Jose Mas: We're not really including a lot of that as we think about 2024, because we're not 100% sure of the timing. So again, we're hoping that as the year starts, we've built our plan with a very solid customer base, and then we can grow that based on, you know, some of the opportunities that are gonna come as the year progresses.

Speaker 4: So again, we're open that as the year starts, we've built our plan with...

A very solid customer.

Speaker 4: A very solid customer base.

Customer base and then we can grow that based on some of the opportunities are going to come as the year progresses.

Speaker 4: And then we can grow that based on some of the opportunities that are going to come as the year progresses.

Appreciate the color today.

Andrew Kaplowitz: Appreciate the color, Jose.

Thanks, Andy.

Jose Mas: Thanks, Andy.

We will take our next question from Steven Fisher from UBS. Please go ahead.

Steven Fisher: We will take our next question from Steven Fisher from UBS. Please go ahead. Thanks.

Operator: We will take our next question from Stephen Fisher from UBS. Please go ahead.

Speaker 2: you will take our next question from Stephen Fisher from UBS. Please go ahead.

Thanks, Good morning wanted to focus on the cash flow a little bit specifically in terms of the timing I think you may have mentioned that the positive cash flow will continue into Q1 of next year.

Speaker 8: Thanks. Good morning. I wanted to focus on the cash flow a little bit, specifically in terms of the timing. I think you may have mentioned that the positive cash flow will continue into Q1 of next year, and I'm really just kind of curious about the cadence of how that cash flow will develop.

Steven Fisher: Thanks. Good morning. Wanted to focus on the cash flow a little bit, specifically in terms of the timing. I think you may have mentioned that the positive cash flow will continue into Q1 of next year, and I'm really just kind of curious about the cadence of how that cash flow will develop next year. Is it positive, you're saying in Q1, then Q2 is maybe a little weaker, and then Q3, Q4? Again, just kind of curious how the debt reduction might go over the course of the year.

Paul Dimarco: Good morning. I wanted to focus on the cash flow a little bit, specifically in terms of the timing. I think you may have mentioned that the positive cash flow will continue into Q1 of next year. And I'm really just kind of curious about the cadence of how that cash flow will develop next year. Is it positive you're saying in Q1, then Q2 is maybe a little weaker and then Q3, Q4 again, just kind of curious how, how the debt reduction might go over the course of the year.

Really just kind of curious about the cadence of how that cash flow will develop.

Next year is a positive thing in Q1, and Q2 is maybe a little weaker and then Q3 Q4 again just kind.

Speaker 8: Next year is it positive you're saying in Q1, then Q2 is maybe a little weaker, and then Q3, Q4 again, just kind of curious how the debt reduction might go over the course of the year.

And I'm curious, how how the debt reduction.

It might go over the course of the year.

Yes, David This is Paul so I think it should be a similar cadence to the year, we haven't laid out each quarter, yet, but we do expect Q1 because of weather and normal seasonal challenges to be a lower volume quarter. So that should facilitate that's working capital requirement and then youre right as we ramp through the.

Paul DiMarco: Yeah, Stephen, this is Paul. So I think it should be a similar cadence to the year. We haven't laid out, you know, each quarter yet, but we do expect Q1, because of weather and normal seasonal challenges, to be a lower volume quarter, so that should facilitate less working capital requirement. And then you're right, as we ramp through the, you know, middle of the year, we'd expect some investment there that, you know, hopefully can largely offset with stronger earnings. But, you know, we'd be less cash flow generation in the middle of the year, and then some ability to reduce debt going into Q4.

Paul Dimarco: Yes, Steven, this is Paul. So I think it should be a similar cadence to the year we haven't laid out each quarter yet, but we do expect Q1 because of weather and normal seasonal challenges to be a lower volume quarter. So that should facilitate less working capital requirement, and then you're right as we ramp through the middle of the year. We'd expect some investment there that hopefully can largely offset with stronger earnings, but we'd be less casual generation in the middle of the year, and then some ability to reduce debt going into Q4.

Speaker 5: I think it should be a similar cadence to the year. We haven't laid out each quarter yet, but we do expect Q1 because of weather and normal seasonal challenges to be a lower volume quarter. So that should facilitate best working capital requirement and then you're right as we ramp through the middle of the year. We'd expect some investment there that hopefully can largely offset with stronger earnings, but we'd be less casual generation in the middle of the year and that's the ability to reduce that.

Middle of the year, we would expect some investment there that will hopefully can largely offset with with stronger earnings, but we'd be less cash flow generation in the middle of the year, and then and Thats an ability to reduce debt going into Q4.

Okay. That's helpful. And then just on the communications side of things for next year.

Steven Fisher: Okay, that's helpful. And then just on the communication side of things for next year, I think you said high single digits. Maybe you can just clarify that. And within that, I guess that's the growth, if there's any color you can give in a breakout between wireless and fiber, 'cause it sounds like you are experiencing a bit of a slowdown in fiber as you go into Q4 here. You know, what have you assumed on some of those trends for next year, just to kind of gauge the comfort of getting to, you know, what looks like a pretty robust growth number and estimate, given some of the overhangs of what we're experiencing right now from some of these telecom companies?

Steven Fisher: Okay, that's helpful. And then just on the communication side of things for next year, I think you said that high single digits, and you can just clarify that. And within that, I guess I'm curious, and that's the growth, if there's any color you can give in a breakout between wireless and fiber because it sounds like you are experiencing a bit of a slowdown in fiber as you go into Q4 here. What have you assumed on some of those trends for next year just to kind of gauge the comfort of getting to what looks like a pretty robust.

Speaker 8: Okay, that's helpful. And then just on the communication side of things for next year.

I think you said high single digits.

Speaker 8: I think you said high single digits, and you can just clarify that. And within that, I guess I'm curious, and that's the growth. If there's any color you can give in a breakout between wireless and fiber, because it sounds like you are experiencing a bit of a slowdown in fiber as you go into Q4 here.

Can just.

Clarify that and within that I guess.

I'm curious the growth.

If theres any color you can give a breakout between wireless and fiber because it sounds like you are experiencing.

A bit of a slowdown in fiber as you go into Q4 here.

<unk>.

What have you assumed on some of those trends for next year.

Speaker 8: you know, what have you assumed on some of those trends for next year, just to kind of gauge the comfort of getting to, you know, what looks like a pretty robust

Kind of gauge the comfort of getting too.

Well, let's take a pretty robust.

Growth number an estimate given some of the overhangs of what we're experiencing right now from some of these.

Speaker 8: Growth number and estimate given some of the overhangs of what we're experiencing right now from some of these telecom companies Yes

Telecom companies.

Yes, Steve So it's Jose.

Jose Mas: Yeah, Steve. So it's Jose. Yeah, I'd say a couple things, right? I think this year, we were obviously impacted by the slowdown in wireless. I think our wireline business is up strong for the full year, will be strong for the full year as we, as we close the year out. A little bit of a slowdown in the second half of the year that, that, you know, we were hoping wouldn't happen, and I think that is some, you know, management of CapEx, and obviously, as the credit environment changes, we've had different customers do different pullbacks.

Steven Fisher: Growth number and estimate given some of the overhangs of what we're experiencing right now from some of these Telecom companies. Yes, Steve, so it's Jose. I'd share a couple things, right? I think this year we were obviously impacted by the slowdown in wireless. I think our wireline business is up strong for the full year. We'll be strong for the full year as we close the year out. A little bit of a slowdown in the second half of the year that, you know, we were hoping wouldn't happen.

I'd say a couple of things right I think this year, we were obviously impacted by the slowdown in wireless I think our wireline business is up strong for the full year.

Speaker 4: I'd say a couple things, right? I think this year we were obviously impacted by the slowdown in wireless. I think our wireless business is up strong for the full year. We'll be strong for the full year as we close the year out. A little bit of a slowdown in the second half of the year that we were hoping wouldn't happen. And I think that

Will be strong for the full year as we close the year out a little bit of a slowdown in the second half of the year that.

We were hoping would happen and I think that has some.

Steven Fisher: And I think that is some, you know, management of CapEx and obviously as the credit environment changes, we've had different customers through different pullbacks. With that said, you know, we got a bunch of awards during this year in 2023 that didn't have a lot of volume that had a lot of engineering associated with the projects that we knew the volume would kick in 2024. And these are a lot of the government hard off funded projects where, you know, that initial activity and engineering is really important, but it's low dollar and once it turns into construction, it has a meaningful impact.

Management of Capex and obviously.

Speaker 4: uh... you know management of copax and and obviously as as

The credit environment changes, we've had different customers through different pullbacks.

Speaker 4: credit environment changes. We've had different customers do different pullbacks.

With that said we.

Speaker 4: With that said, you know, we got a bunch of awards during this year in 2023 that didn't have a lot of volume, that had a lot of engineering associated with the projects that we knew the volume would kick in 2024 and these were a lot of the government hard-off funded projects where, you know, that initial activity and engineering is really important, but it's low dollar and once it turns into construction it has a meaningful impact.

We got a bunch of awards during this year in 2023 that didn't have a lot of volume that had a lot of engineering associated with the projects that we knew the volume would kick in 2024 and these were a lot of the government <unk> funded projects where that initial activity in engineering.

Jose Mas: With that said, you know, we got a bunch of awards during this year in 2023 that didn't have a lot of volume, that had a lot of engineering associated with the projects that we knew the volume would kick in 2024, and these were a lot of the government ARDOT-funded projects, where, you know, that initial activity in engineering is really important, but it's low dollar, and once it turns into construction, it has a meaningful impact. And we have a number of those that's starting, you know, late Q1, early Q2, going to construction, which are gonna have a significant amount of increased revenue in 2024 versus 2023. So as we've planned out 2024, and again, we're really early, we took a very conservative assumption on where wireless goes from here, based on the conversations we've had with our customers.

Really important but its low dollar and once it turns in construction it has a meaningful impact and we have a number of those that starting.

Speaker 4: And we have a number of those that starting, you know, Lake Q1, early Q2, going to construction, which are gonna have a significant amount of increased revenue in 24 versus 23. So as we planned out, 24, and again, we're really early, we took a very conservative assumption on where wireless goes from here, based on the conversations we've had with our customers.

Jose Mas: And we have a number of those that's starting, you know, late Q1, early Q2, going to construction, which are gonna have a significant amount of increased revenue in 2024 versus 2023. So as we've planned out 2024, and again, we're really early, we took a very conservative assumption on where wireless goes from here, based on the conversations we've had with our customers.

Steven Fisher: And we have a number of those that starting, you know, Lake Q1, early Q2 going to construction, which are going to have a significant amount of increased revenue in 24 versus 23. So as we planned out 24 and again, we're really early. We took a very conservative assumption on where wireless goes from here based on the conversations we've had with our customers. And we've kind of built the balance in that growth plan, you know, based on really project activity awards from 23 without making much assumption for new things going into 24 even though there are some opportunities.

Late Q1 early Q2 go into construction, which are going to have a significant amount of increased revenue and 24 versus 23. So as we planned out 24 and again, we're really early we took a very conservative assumption on where wireless goes from here based on the conversations we've had with our customers.

Steven Fisher: Again, it's important to talk about feed funding, which we really don't even see impacting the business until 25 because a lot of that's going to be awarded in 24. So, you know, we feel good about our ability to grow that business in 24 just based on, you know, the awards that we've had here in the last few months. We think that's important. We've taken a very conservative approach to how we think our customers will guide CapEx based on recent commentary.

And we've kind of built the balance in that growth plan based on really project activity awards from 'twenty, three without making much assumption for new things going into 'twenty four even though there are some opportunities.

Speaker 4: And we've kind of built the balance in that growth plan, based on really project activity awards from 23, without making much assumption for new things going into 24, even though there are some opportunities.

Jose Mas: And we've kind of built the balance in that growth plan, you know, based on really project activity awards from 2023, without making much assumption for new things going into 2024, even though there are some opportunities. Again, it's important to talk about BEAD funding, which we really don't even see impacting the business until 2025, 'cause a lot of that's gonna be awarded in 2024. So, you know, we feel good about our ability to grow that business in 2024, just based on, you know, the awards that we've had here in the last few months. We think that's important. We've taken a very conservative approach to how we think our customers will guide CapEx, based on recent commentary. And again, any improvements to that should actually allow us to improve on the numbers that we've talked about today.

Again, it's important to talk about bead funding, which we really don't even see impacting the business until 'twenty five because a lot of that is going to be awarded in 'twenty four.

Speaker 4: Again, it's important to talk about BEAD funding, which we really don't even see impacting the business until 25, because a lot of that's going to be awarded in 24. So we feel good about our ability to grow that business in 24. Just based on the awards that we've had here in the last few months, we think that's important. We've taken a very conservative approach to how we think our customers will guide CapEx.

So we feel good about our ability to grow that business and 24, just based on the awards that we've had here in the last few months. We think that's important we've taken a very conservative approach to how we think our customers will guide capex.

Jose Mas: We think that's important. We've taken a very conservative approach to how we think our customers will guide CapEx, based on recent commentary. And again, any improvements to that should actually allow us to improve on the numbers that we've talked about today.

Based on recent commentary and again any improvements to that should actually allow us to improve on the numbers that we've talked about today.

Speaker 4: based on recent commentary. And again, any improvements to that should actually allow us to improve on the numbers that we've talked about today.

But just to clarify are you assuming in the wireless business is actually up next year.

Speaker 4: But just to clarify, so are you assuming the wireless business is actually up next year? We are not. We are not making that assumption. We're assuming that it's flat. Flat, okay.

Neil Mehta: But just to clarify, so are you assuming the wireless business is actually up next year?

Steven Fisher: But just to clarify, so are you assuming the wireless business is actually up next year?

Steven Fisher: And again, any improvements to that should actually allow us to improve on the numbers that we've talked about today. But just to clarify, so are you assuming the wireless business is actually up next year? We are not, we are not making that assumption. We're assuming that it's flat. Flat.

We're not we're not making that assumption, we're assuming that it's flat.

Jose Mas: We are not. We are not making that assumption. We're assuming that it's flat.

Unknown Attendee: Okay.

Unknown Attendee: All right.

Flat okay.

Neil Mehta: Flat, okay. All right. Thank you very much.

Steven Fisher: Flat, okay. All right. Thank you very much.

Alright, Thank you very much.

Thank you Steve.

Unknown Attendee: Thank you very much.

Jose Mas: Thank you, Steve.

Unknown Attendee: Thank you, Steve.

We will now move to our next question from Justin Hauke from Baird. Please go ahead.

Speaker 2: We will now move to our next question from Justin Hawkey from Baird, please go ahead.

Operator: We will now move to our next question from Justin Hawkey, from Baird. Please go ahead.

Justin Halkey: We will now move to our next question from Justin Halkey from Beard. Please go ahead.

Hi, good morning, guys.

Justin Hauke: Hi, good morning, guys. A lot of my questions have been answered here, but I wanted to ask about, you know, I guess, you know, the risk profile of just cost overruns on some of the fixed price contracts at IEA. You know, you guys, at least as of the last 10-Q, we don't have the one from the quarter, but, you know, the revenue on unapproved change orders has, you know, kind of moved materially higher over the last year and a half. And just as we go into Q4 and kind of the, you know, annual close up, the resolution on some of those unapproved change orders, and you talked about a legacy industrial project. I mean, just...

Speaker 9: Hi, good morning guys. A lot of my questions been answered here, but I wanted to ask.

A lot of my questions been answered here, but I wanted to ask.

Unknown Attendee: Hi. Good morning, guys. A lot of my questions been answered here, but I wanted to ask you know, I guess, you know, the risk profile of just cost of runs on some of the fixed price contracts at I. You know, you guys, at least as of the last 10 queue, we don't have the one from the quarter, but you know, the revenue on unapproved change orders has, you know, kind of moved materially higher over the last year and a half.

I guess.

Speaker 9: You know, I guess, you know, the risk profile of just cost over earns on some of the fixed price or contracts at IEA.

The risk profile of just <unk>.

Costco bonds on some of the fixed price contracts at IAA.

You guys at least as of the last 10-Q, we don't have the one from the quarter, but the revenue on unapproved change orders.

Speaker 9: You know, you guys, at least as of the last 10-Q , we don't have the one from the quarter, but, you know, the revenue on unapproved change orders.

It has kind of moved materially higher over the last year and a half.

Speaker 9: has kind of moved materially higher over the last year and a half. And just as we go into 4Q and kind of the annual clause that's the resolution on some of those on approved change orders and you talked about a legacy industrial project. I mean, can you give us some context about what's been driving that balance increasing?

And just as we go into <unk> in Canada.

Justin Hauke: And just as we go into Q4 and kind of the, you know, annual close up, the resolution on some of those unapproved change orders, and you talked about a legacy industrial project. I mean, just. Can you give us some context about, you know, what's been driving that, that balance increasing?

Unknown Attendee: And just as we go into 4 queue and kind of the, you know, annual clause, the resolution on some of those unapproved change orders and you talked about a legacy industrial project. I mean, just can you give us some context about, you know, what's been driving that that balance increasing. Yeah, so we do, we should see a slight reduction when the Q3 numbers come out, but a lot of it is with the legacy industrial projects that we had challenges on in 22 and the early part of this year. It's a strong track record of realizing those change orders and we really don't expect any different in the environment today.

Annual closing.

The resolution on some of those unapproved change orders he talked about our legacy industrial project I mean, just can you give us some context about.

Justin Hauke: Can you give us some context about, you know, what's been driving that, that balance increasing?

What's been driving that that balance increasing.

Yeah. So we do we should see a slight reduction when the Q3 numbers come out.

Paul DiMarco: Yeah, so we should see a slight reduction when the Q3 numbers come out. But a lot of it is with the legacy industrial projects that we had challenges on in 2022 and the early part of this year. You know, some of them were resolved in the ordinary course in Q4, and some we're working with the customers on, you know, we think are contractual obligations that they've made under the contracts. You know, we obviously have a very robust process for recording those. We have a very strong track record of realizing those change orders, and we really don't expect any different in the environment today.

Speaker 5: Yeah, so we should see a slight reduction when the Q3 numbers come out, but a lot of it is with the legacy industrial projects that we had challenges on in 22 and the early part of this year. Some of them were resolved in the ordinary course in Q4, and some were working with the customers on what we think are contractual obligations that they've made under the contract.

But a lot of it is with the legacy industrial projects that we had challenges on in 'twenty, two and the early part of this year.

Some of them will resolve in the ordinary course in Q4 and saw more work with our customers on.

We think our our contractual obligations that they have made under the contracts.

We obviously have a very robust process for we're recording those we have a very strong track record of realizing those those change orders and we really don't expect any different in the environment today.

Speaker 5: We obviously have a very robust process for recording those. We have a very strong track record of realizing those change orders, and we really don't expect any different.

Okay and then.

Just because it is a high visibility project can you quantify the MVP revenue contribution that youre, assuming in <unk> and then and then how much will be there in the first half of 'twenty, where I know they've disclosed.

Speaker 9: Okay, and then just because it is a high visibility project, can you quantify the MEP revenue contribution that you're assuming in 4Q and then how much will be there in the first half of 24? I know they've disclosed that the cost, estimate for the project is higher, just kind of giving some context to help us understand how much that's contributing.

Justin Hauke: Okay. And then, just because it is a high visibility project, can you quantify the MVP revenue contribution that you're assuming in Q4, and then how much will be there in the first half of 2024? I know they've disclosed that the cost estimate for the project is higher. You know, just kind of giving some context to help us understand how much that's contributing.

Unknown Attendee: Okay, and then just because it is a high visibility project, can you quantify the MVP revenue contribution that you're assuming in 4Q and then how much will be there in the first half to 24? Or I know they've disclosed that the cost estimate for the project is higher, you know, just kind of giving some context to help us understand how much that's contributing. Yeah, look, I think it's unchanged for the full year in 23.

The cost estimate for the project is higher.

Just kind of giving some context.

Help us understand how much that's contributing.

Yes look I think.

It's unchanged for the full year in.

Speaker 4: Yeah, look, I think it's unchanged for the full year. Uh, in 23, it's just it's heavier on the fourth quarter than it was in the third quarter because of the delays. Remember, we, you know, we started ramping that project in September . We had to get roughly 3700 people with some of the delays and early on in that project, there was a lot of delays just in terms of fully understanding what was going to be allowed and not allowed. Uh, we got to that full ramp, uh, you know, towards the latter half of the quarter. So it moved some revenue into Q4 .

Jose Mas: Yeah, look, I think it's unchanged for the full year in 2023. It's just heavier on the fourth quarter than it was in the third quarter because of the delays. Remember, we, you know, we started ramping that project in September. We had to get to roughly 3,700 people with some of the delays, and early on in that project, there was a lot of delays, just in terms of fully understanding what was gonna be allowed and not allowed. We got to that full ramp, you know, towards the latter half of the quarter, so it moved some revenue into Q4.

'twenty three it's just it's heavier in the fourth quarter than it was in the third quarter because of the delays remember we we started ramping that project in September we had to get to.

Unknown Attendee: It's just it's heavier on the fourth quarter than it was in the third quarter because of the delays. Remember, we started ramping that project in September. We had to get to roughly 3,700 people with some of the delays. And early on in that project, there was a lot of delays just in terms of fully understanding what was going to be allowed and not allowed. We got to that full ramp, you know, towards the latter half of the quarter.

Roughly 3700 people with some of the delays in early on in that project. There was a lot of the lasers in terms of fully understanding what was going to be allowed or not allowed.

We got to that full ramp.

Towards the latter half of the quarter. So it moved some revenue into Q4 and I'd say, we're probably at this point I don't know what they've said publicly so I don't really want to give a revenue number for 2024, but for us it will be.

Unknown Attendee: So it moved some revenue into Q4 and I'd say we're probably at this point, you know, I don't know what they've said publicly. So I don't really want to give a revenue number for 2024, but for us, it'll be, you know, in hundreds of millions.

Jose Mas: I'd say we're probably, at this point, you know, I don't know what they've said publicly, so I don't really want to give a revenue number for 2024, but for us it'll be, you know, in the $hundreds of millions.

Speaker 10: And I'd say we're probably at this point, you know, I don't know what they've said publicly, so I don't really want to give a revenue number for 2024. But for us, it'll be, you know, in the hundreds of millions. Okay. Fair enough. Thank you.

Unknown Attendee: Okay, sure enough. Thank you.

In the one hundreds of millions.

Okay fair enough. Thank you.

Justin Hauke: Okay, fair enough. Thank you.

<unk>.

Jose Mas: Thank you.

We will take our next question from.

Neil Mehta: We will take our next question from Neil Meta from Goldman Sachs. Please go ahead. Good morning, Jose Paul. I want to start off on tax. I've been a big driver of some. Oh, can you hear me? Okay, Jose? Sorry. Good morning. I think some of the concerns to your point have been around tax equity and that's created a lot of the volatility and the clean energy segment. And you had me to comment that you expect to get a little bit more clarity by the end of this year around that.

Operator: We will take our next question from Neil Mehta, from Goldman Sachs. Please go ahead.

Neil Mehta from Goldman Sachs. Please go ahead.

Speaker 2: Neil Mater from Goldman Sachs, please go ahead.

Good morning Jose Paul.

Speaker 11: Good morning, Jose, Paul, I want to start off on text.

Neil Mehta: Good morning, Jose, Paul. I want to start off on Tax Equity. Have been a big driver of some. Oh, can you hear me okay, Jose? Sorry.

I wanted to start off on taxes.

Okay.

That's been a big driver.

Oh can you hear me okay. Okay, sorry, we can good morning, okay. Good.

Speaker 11: Can you hear me okay? Jose, sorry. Good afternoon, morning. Okay, good morning. I think some of the concerns to your point have been around tax equity and that's created a lot of the volatility and the clean energy segment. And you had me in a comment that you expect to get a little bit more clarity by the end of this year around that. So can you talk about what gives you confidence on that and do you think that's gonna translate into greater action?

Jose Mas: We can. Go ahead, Neil. Morning.

Good morning, I think.

Neil Mehta: Okay. Good morning. I think some of the concerns, to your point, have been around Tax Equity, and that's created a lot of the volatility in the clean energy segment. And you had made a comment that you expect to get a little bit more clarity, by the end of this year around that. So can you talk about what gives you confidence on that, and do you think that's gonna translate into greater activity from your customer base?

Sure.

To your point a bit around tax equity.

And that's created a lot of the volatility in the clean energy segment and you had made a comment that you expect to get a little bit more clarity.

By the end of this year around that so can you talk about what gives you confidence on that and do you think that's going to translate into integrator activity from your customer base.

Neil Mehta: So can you talk about what gives you confidence on that and do you think that's going to translate into greater activity from the customer base? I mean, so the short answer is absolutely. You know, I think there's been an enormous amount of work that's happened since guidance was released on some of the language in the summer. I think the industry customers are feeling really comfortable and better about the conversations that have been happening with everybody from Treasury to energy to commerce.

Yes.

So the short answer is absolutely.

Speaker 4: I mean, so the short answer is absolutely, you know, I think there's been an enormous amount of work that's happened since guidance was released on on some of the language in the summer. I think the industry customers are feeling really comfortable and.

Jose Mas: I mean, so the short answer is absolutely. You know, I think there's been an enormous amount of work that's happened since guidance was released on some of the language in the summer. I think the industry customers are feeling really comfortable and better about the conversations that have been happening with everybody from Treasury to Energy to Commerce. I think the final language will be out by the end of the year, and I think that will spur an enormous amount of activity because it'll open up. It'll give people the understanding of what it means to hit the bonus tax depreciation opportunities that exist within the bill, which makes tax equity clear, which makes it, then makes it sellable.

I think there's been an enormous amount of work Thats happened since guidance was released on some of the language in the summer.

I think the industry customers are feeling really comfortable in and better about the conversations that have been happening with everybody from treasury to energy.

Speaker 4: and better about the conversations that have been happening with everybody from Treasury to Energy to Commerce. I think the final language will be out by the end of the year and I think that will spur an enormous amount of activity because it will open up. It will give people the understanding of what it means to hit the bonus tax.

To commerce.

I think the final language will be out by the end of the year and I think that will spur an enormous amount of activity because it will open up it will give people the understanding of what it means to hit the bonus.

Jose Mas: I think the final language will be out by the end of the year, and I think that will spur an enormous amount of activity because it'll open up. It'll give people the understanding of what it means to hit the bonus tax depreciation opportunities that exist within the bill, which makes tax equity clear, which makes it, then makes it sellable.

Neil Mehta: I think the final language will be out by the end of the year and I think that will spur an enormous amount of activity because it will open up. It will give people the understanding of what it means to hit the bonus tax depreciation opportunities that exist within the bill, which makes tax equity clear, which then makes it sellable. And we have a lot of customers who it significantly changes their capital profile and their return profile and they don't want to give it up so they don't want to commit the tax equity to dance.

Neil Mehta: So they fully understand what all their bonus opportunities are and I think we're getting very close to that being finalized, which again, I think that's a tremendous amount of activity to the market. And I think it's important again, you know, we're trying to build our 24 plan with projects that aren't super dependent on that and then really use that as, you know, potential upside as we think about the year. And I would just add, Neil, that direct transfer is another provision of the IRA that's starting to become much more prevalent.

<unk> depreciation opportunities that exist within the bill, which makes tax equity clear, which makes sense that makes it sellable and we have a lot of customers, who it significantly changes our capital profile and the return profile and they don't want to give it up so they don't want to commit the tax equity today until they fully understand what other.

Speaker 4: appreciation opportunities that exist within the bill which makes tax equity clear which makes it then makes it sellable

Jose Mas: We have a lot of customers who it significantly changes their capital profile and their return profile, and they don't wanna give it up, so they don't wanna commit to tax equity today until they fully understand what all their bonus opportunities are, and I think we're getting very close to that being finalized, which again, I think adds a tremendous amount of activity to the market. I think it's important to, again, you know, we're trying to build our 2024 plan with projects that aren't super dependent on that, and then really use that as, you know, potential upside as we think about the year.

Speaker 4: And we have a lot of customers who it significantly changes their capital profile and their return profile, and they don't want to give it up, so they don't want to commit to tax equity today until they fully understand what all their bonus opportunities are. And I think we're getting very close to that being finalized, which, again, I think adds a tremendous amount of activity to the market.

Bonus opportunities are and I think we're getting very close to that being finalized, which again I think thats a tremendous amount of activity to the market.

It's important to again, we're trying to build our 24 plan with projects that aren't super dependent on that.

Jose Mas: I think it's important to, again, you know, we're trying to build our 2024 plan with projects that aren't super dependent on that, and then really use that as, you know, potential upside as we think about the year.

Speaker 5: I think it's important again, we're trying to build our 24 plan with projects that aren't super dependent on that and then really use that as potential upside as we think about the year. And I would just add, Neil, that direct transfer is another provision of the IRA that's starting to become much more prevalent. I think there was some uncertainty on the...

And then really use that as potential upside as we think about the year.

Does that Neil that direct transfer is another provision of the IRA that's starting to become much more prevalent alright, I think there was some uncertainty on the.

Paul DiMarco: Yeah, and I would just add, Neil, that, you know, direct transfer is another provision of the IRA that's starting to become much more prevalent, right? I think there was some uncertainty on how that transaction, how those transactions would be effectuated early on. But, you know, what we're seeing is more and more developers and renewable power generators finding ways to monetize their tax equity through direct transfer, which, as long as it becomes efficient from a cost perspective, from a value perspective, it's a much more efficient from an administrative perspective. So we are positive on developments.

Neil Mehta: I think there was some uncertainty on how those transactions would be effectuated early on, but what we're seeing is more and more developers and renewable. Power Generators, Finding Ways to monetize their tax equity through direct transfer, which as long as it becomes efficient from a cost perspective, from a value perspective, it's much more efficient from an administrative perspective. So we are positive on developments. Now, thanks Paul, that's helpful. And then Jose Paul's up follow up is just on margins.

On the how that transaction, how those transactions would be effectuate. It early on but what we're seeing is more and more developers.

Speaker 5: on the how that transaction how those transactions would be effectuated early on but you know what we're seeing is more and more developers and and renewable um

Paul DiMarco: But, you know, what we're seeing is more and more developers and renewable power generators finding ways to monetize their tax equity through direct transfer, which, as long as it becomes efficient from a cost perspective, from a value perspective, it's a much more efficient from an administrative perspective. So we are positive on developments.

And renewable.

Power generators, finding ways to monetize their tax equity through direct transfer which.

As long as it becomes efficient from a cost perspective from a value perspective, it's a much more efficient.

From an administrative perspective, so we are.

Positive.

Developments.

Yeah. Thanks, Paul that's helpful and then as a.

Speaker 11: Yeah, thanks, Paul. That's helpful. And then, Jose, Paul, the follow-up is just on margins. We spent a lot of time on this call talking about the top line, but margins have been a source of volatility over the last couple of years as well. So, can you give the market confidence in the way that you are modeling out the margin profile? Where do you think the biggest risks are, and where do you think the areas for upside surprise?

Neil Mehta: Yeah. Thanks, Paul. That's helpful. And then, Jose, Paul, the follow-up is just on margins. We've spent a lot of time on this call talking about the top line, but margins have been a source of volatility over the last couple of years as well. So can you give the market confidence in the way that you are modeling out the margin profile? Where do you think the biggest risks are, and where do you think the areas for upside surprise could be?

The follow up is just on margins. We've spent a lot of time on this call talking about the top line.

Neil Mehta: We spent a lot of time on this Paul talking about the top line, but margins have been a source of volatility over the last couple of years as well. So can you give the market confidence in the way that you are modeling out the margin profile? Where do you think the biggest risks are? And where do you think the areas for upside that price could be? Sure, again, as we thought about 24 and then what we're saying here, I think we took, again, a view as to where we are today and how we're thinking about that with where the revenue is going.

But margins have been a source of volatility over the last couple of years as well. So can you give the market confidence in the way that you're modeling out the margin profile, where do you think the biggest risks are and where do you think the areas for upside surprise could be.

Sure again as we thought about 24, and then what we're saying here I think we took.

Speaker 4: Sure, again, as we thought about 24 and then what we're saying here, I think we took, again, a view as to where we are today and how we're thinking about that with where the revenue's going.

Jose Mas: Sure. Again, as we thought about 2024 and then what we're saying here, I think we took again a view as to where we are today and how we're thinking about that with where the revenue is going. We haven't changed our long-term margin profile expectations, which I also think is important. There's nothing that we're seeing in the business that we think doesn't allow us to reach our previous targets. If anything, I think we've said, you know, as we've talked about, you know, the full company margins for the year, I think they're based on very reasonable and conservative assumptions, with quite frankly, upside across the board, right?

Again, a a view as to where we are today and how we're thinking about that with where the revenue is going.

Yeah.

We haven't changed our long term margin profile expectations, which I also think is important there's nothing that we're seeing in the business that we don't do that we think doesn't allow us to reach our previous targets.

Speaker 4: We haven't changed our long-term margin profile expectations, which I also think is important. There's nothing that we're seeing in the business that we think doesn't allow us to reach our previous targets. If anything, I think we've said, you know, as we've talked about, you know, the full company margins for the year, I think they're based on very reasonable and conservative assumptions with, quite frankly, upside across the board, right? We're starting the year and, you know, at

Neil Mehta: We haven't changed our long-term margin profile expectations, which I also think is important. There's nothing that we're seeing in the business that we think doesn't allow us to reach our previous targets. If anything, I think we've said, as we've talked about, the full company margins for the year, I think they're based on very reasonable and conservative assumptions with quite frankly upside across the board. We're starting the year and midteens in oil and gas in a year where there's a lot of new work coming on projects where they traditionally beat those types of margin returns.

Jose Mas: There's nothing that we're seeing in the business that we think doesn't allow us to reach our previous targets. If anything, I think we've said, you know, as we've talked about, you know, the full company margins for the year, I think they're based on very reasonable and conservative assumptions, with quite frankly, upside across the board, right?

If anything I think we've said as we've as we've talked about.

The full company margins for the year I think they are based on on very reasonable and conservative assumptions with quite frankly upside across the board right. We're starting the year.

Jose Mas: We're starting the year and, you know, at mid-teens in oil and gas in a year where, you know, there's a lot of new work coming on projects where they traditionally beat those types of margin returns. We think there's upside there. On the communication side of the business, obviously, we started the year stronger than we had the previous year. We've taken a step back here in the second half, but, you know, when we think about where they were for 2022, there's no reason we shouldn't get back to those levels very soon, which are significantly better than where we'll end the year this year. Our power delivery business, again, you know, this is really the first post-year, you know, post-year one after acquisition.

At mid teens in the oil and gas in a year, where there's a lot of new work coming on projects, where they've traditionally beat those types of margin returns, we think theres upside there.

Speaker 4: You know midteens and oil and gas in a year where you know there's a lot of new work coming on projects where they traditionally beat those types of margin returns we think there's upside there

Neil Mehta: We think there's upside there. On the communication side of the business, obviously, we started the year stronger than we had the previous year. We've taken a step back here in the second half, but when we think about where they were for 2022, there's no reason we shouldn't get back to those levels very soon, which are significantly better than where we'll end the year this year. Our power delivery business, again, this is really the first post-year one-after acquisition.

On the communications side of the business, obviously, we started the year stronger.

Speaker 4: on the communication side of the business. Obviously we started the year stronger, then we had the previous year, we've had a, we've taken a step back here in the second half. But...

Then we had the previous year we've had.

Taking a step back here in the second half but.

Jose Mas: We've taken a step back here in the second half, but, you know, when we think about where they were for 2022, there's no reason we shouldn't get back to those levels very soon, which are significantly better than where we'll end the year this year. Our power delivery business, again, you know, this is really the first post-year, you know, post-year one after acquisition.

When we think about where they were for 2022. There is no reason, we shouldnt get back to those levels are very soon which are significantly better than where we will end the year. This year.

Speaker 4: You know, when we think about where they were for 2022, there's no reason we shouldn't get back to those levels.

Speaker 4: very soon, which are significantly better than where we'll end the year this year. Our power delivery business, again, this is really the first post-year one after acquisition, so I think there's been some noise in and out of the margins, but I think that our ability to hit double-digit margins there is completely unchanged.

Our power delivery business again. This was this is really the first post year.

Tier one after acquisition. So I think there's been some noise in and out of the margins, but I think that we're our ability to hit double digit margins. There is completely unchanged and I think clean energy. Despite even despite all the challenges that we've had margins have improved on a year over year basis, and held somewhat steady and I think that with the volume.

Jose Mas: So I think there's, you know, been some noise in and out of the margins, but I think that, you know, we're our ability to hit double-digit margins there is completely unchanged. And I think clean energy, you know, even despite all the challenges that we've had, you know, margins have improved on a year-over-year basis and held somewhat steady. And I think that with the volume that we're expecting, you know, margins have an opportunity to really increase. So, I feel good about where margins are gonna go over time. And again, I think we've set a really conservative base level for 2024 that everybody should feel comfortable with.

Neil Mehta: So I think there's been some noise in and out of the margins, but I think that our ability to have double-digit margins there is completely unchanged. I think clean energy, even despite all the challenges that we've had, margins have improved on a year-over-year basis and held somewhat steady. And I think that with the volume that we're expecting, margins have an opportunity to really increase. I feel good about where margins are going to go over time. And again, I think we've said a really conservative base level for 24 that everybody should feel comfortable with. Thank you both. Thanks, Neil.

Speaker 4: And I think clean energy, you know, despite, even despite all the challenges that we've had, you know, margins of...

Speaker 4: have improved on a year over your basis and held some wood steady. And I think that with the volume that we're expecting, you know, margins have an opportunity to really increase.

We're expecting margins have an opportunity to really increase so.

Jose Mas: And I think that with the volume that we're expecting, you know, margins have an opportunity to really increase. So, I feel good about where margins are gonna go over time. And again, I think we've set a really conservative base level for 2024 that everybody should feel comfortable with.

I feel good about where margins are going to go over time.

Speaker 10: I feel good about where margins are going to go over time. And again, I think we've set a really conservative base level for 24 that everybody should feel comfortable with. Okay. Thank you, boss.

I think we've set a really conservative base level for 24 that everybody should feel comfortable with.

Okay. Thank you Pat.

Neil Mehta: Okay. Thank you both.

Thanks Neil.

Jose Mas: Thanks, Neil.

We will take our next question from Marc Bianchi from Cowen.

Neil Mehta: We will take our next question from Mark Bianchi from TD Count. Please go ahead. Thank you.

Operator: We will take our next question from Mark Bianchi from TD Cowen. Please go ahead.

Speaker 2: We will take our next question from Mark Bianchi from TD Count. Please go ahead.

Please go ahead.

Thank you.

First question I had relates to the electric businesses, so clean energy and power delivery and you had mentioned and I think like the market has been generally concerned with.

Marc Bianchi: Thank you. The first question I had relates to the electric businesses, so clean energy and power delivery. And you had mentioned, and I think, like, the market has been generally concerned with the higher cost of capital that's affecting those businesses. So if you think about project development and higher costs of capital, that's one thing for clean energy, and then higher costs of capital in the utility sector, and you mentioned some customers slowly expanding. So that systemic issue seems to be continuing into 2024. But you made the comment that, you know, you've got some of the utility customers picking spending back up once they renew their budget.

Speaker 5: Thank you. The first question I had relates to the electric businesses, so clean energy and power delivery. And you had mentioned, and I think the market has been generally concerned with the higher cost of capital that's affecting those businesses. So if you think about project development and higher cost of capital, that's one thing for clean energy, and then higher cost of capital in the utility sector. And you mentioned some customers slowing spending. So that

Mark Bianchi: The first question I had relates to the electric businesses, so clean energy and power delivery. And you had mentioned, and I think the market has been generally concerned with the higher cost of capital that's affecting those businesses. So if you think about project development and higher cost of capital, that's one thing for clean energy and then higher cost of capital in the utility sector. And you mentioned some customers slowly spending. So that systemic issue seems to be continuing into 2024, but you made the comment that you've got some of the utility customers picking spending back up once they renew their budget.

The higher cost of capital that's affecting those businesses. So if you think about project development and higher cost of capital. That's one thing for clean energy and then higher cost of capital in the utility sector and you mentioned some customers slowing spending so that systemic issue seems to be.

Marc Bianchi: So that systemic issue seems to be continuing into 2024. But you made the comment that, you know, you've got some of the utility customers picking spending back up once they renew their budget. So can you kind of talk about, you know, how much of that systemic risk do you think is continuing to overhang the business in 2024, and how much of it's getting cleared up, and what the maybe mechanisms are for that?

Speaker 5: systemic issue seems to be continuing into 2024. But you made the comment that, you know, you've got some of the utility customers picking spending back up once they renew their budget. So can you kind of talk about, you know, how much of that systemic risk do you think is continuing to overhang the business in 2024 and how much of it's getting cleared up and what the maybe mechanisms are for that?

Continuing into 2024, but you made the comment that you've got some of the utility customers picking spending back up.

Once they renew their budgets. So can you kind of talk about how much of that systemic risk do you think is continuing to overhang the business in 2024, and how much of it's getting cleared up and what the maybe mechanism sorry for that.

Marc Bianchi: So can you kind of talk about, you know, how much of that systemic risk do you think is continuing to overhang the business in 2024, and how much of it's getting cleared up, and what the maybe mechanisms are for that?

Mark Bianchi: So can you kind of talk about how much of that systemic risk you think is continuing to overhang the business in 2024 and how much of it's getting cleared up and what the maybe mechanisms are for that. Yeah, so I think when we think about planning for 24, and again, we're very early in the cycle, the way we've thought about it is we've had a lot of success in growing our business, so in basically either picking up territory or expansion within existing territories in the last X months, right?

Yes, so I think when we think about planning for 'twenty four and again, we're very early in the cycle.

Speaker 4: Yes, so I think when when we think about planning for 24 and again, we're very early in the cycle.

Jose Mas: Yeah. So I think when we think about planning for 2024, and again, we're very early in the cycle, the way we've thought about it is, we've had a lot of success in growing our business. So in basically, either picking up territory or expansion within existing territories in the last X months, right? And we've done that with major customers, with major utilities on both the East Coast and the West Coast, and, you know, we feel really good about that margin expansion. And in a normal, typical year where we wouldn't have this overhang of, you know, concern relative to what's happening with interest rates and costs, our growth, our growth projections, just based on that, would be dramatically higher than what we laid out today.

The way we've thought about it is we've had a lot of success.

Speaker 4: The way we've thought about it is we've had a lot of success.

In growing our business, so and basically either picking up territory or expansion within existing territories and the last X months right and we've done that with major customers with major utilities on both the east coast and the West Coast and we feel really good about that margin expansion and in a normal.

Speaker 4: in growing our business. So in basically either picking up territory or expansion within existing territories in the last X months, right? And we've done that with major customers, with major utilities on both the East Coast and the West Coast.

Mark Bianchi: And we've done that with major customers, with major utilities on both the East Coast and the West Coast. And we feel really good about that margin expansion. And in a normal typical year where we wouldn't have this overhang of concern relative to what's happening with interest rates and costs, our growth projections just based on that would be dramatically higher than what we laid out today. So I think we're hedging the opportunities that we're getting from a growth perspective with some of the challenges we think utilities will continue to face.

Speaker 4: And, you know, we feel really good about that margin expansion. And in a normal, typical year where we wouldn't have this overhang of, you know, concern relative to what's happening with interest rates and costs, our growth...

A year, where we wouldn't have this overhang of concern relative to what's happening with interest rates and cost our growth.

Jose Mas: And in a normal, typical year where we wouldn't have this overhang of, you know, concern relative to what's happening with interest rates and costs, our growth, our growth projections, just based on that, would be dramatically higher than what we laid out today.

Our growth projections, just based on that would be dramatically higher than what we laid out today. So I think we are hedging the opportunities that we're getting from a growth perspective with some of the challenges. We think utilities will continue to face we're hopeful that as the year develops those utilities will actually perform better or.

Jose Mas: So, I think we're hedging the opportunities that we're getting from a growth perspective with some of the challenges we think utilities will continue to face. We're hopeful that as the year develops, those utilities will actually, you know, perform better or have, you know, less issues than what we're projecting, which will allow us the opportunity to grow at a faster rate. You know, for us, in our, you know, for us in our power delivery business to set a, you know, mid-single-digit growth rate going into next year is a really low number. It's one that is lower than we would have suspected. And then, you know, when you, when you throw onto that some projects that we've won, that should help that.

Speaker 4: The opportunities that we're getting from a growth perspective with some of the challenges we think utilities will continue to face. We're hopeful that as the year develops, those utilities will actually perform better or have less issues than what we're projecting, which will allow us the opportunity to grow at a faster rate. For us in our power delivery business to set a mid-single-digit growth rate going into next year is a really low number. It's one that is lower than we would have suspected.

Mark Bianchi: We're hopeful that as the year develops, those utilities will actually perform better or have less issues than what we're projecting, which will allow us the opportunity to grow at a faster rate. For us in our power delivery business to set a mid single digit growth rate going into next year is a really low number. It's one that is lower than we would have suspected. And then when you throw on to that some projects that we've won that should help that.

<unk>.

Less issues than what we're projecting which will allow us the opportunity to grow at a faster rate.

For us for us in our power delivery business to set a mid single digit growth rate going into next year as a really low number. It's one that is lower than we would have suspected.

Jose Mas: You know, for us, in our, you know, for us in our power delivery business to set a, you know, mid-single-digit growth rate going into next year is a really low number. It's one that is lower than we would have suspected. And then, you know, when you, when you throw onto that some projects that we've won, that should help that.

And then when you when you throw onto that some projects that we've won that should help that I think we're being really conservative as we think about where they are from a capitalization perspective on what they need to do to fund projects in I'd say.

Speaker 4: uh... and then you know when you when you go on to that some projects that we've won that should help that were i think we're being really conservative as we think about

Jose Mas: I think we're being really conservative as we think about, you know, where they are from a capitalization perspective and what they need to do to fund projects. And I'd say it's exactly the same answer on our clean energy business as well.

Mark Bianchi: I think we're being really conservative as we think about where they are from a capitalization perspective and what they need to do to fund projects. And I'd say it's exactly the same answer on our clean energy business as well.

Speaker 10: you know where they are from uh... a capitalization perspective of what they need to do to fund projects and i'd say exactly the same answer on our

Exactly the same answer on our clean energy business as well.

Jose Mas: Okay, thanks Jose.

Okay. Thanks, Thanks, Jose the other one I had.

Speaker 5: Okay, thanks Jose. The other one I had relates to oil and gas. So you've got MVP helping in the first half of 24, but talked about an overall revenue decline for the year. So it would look like...

Marc Bianchi: ... Okay. Thanks, Jose. The other one I had relates to oil and gas. So, you've got MVP helping in the first half of 2024, but talked about an overall revenue decline for the year. So it would look like the second half is quite a bit below sort of the $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about, is it in fact that you do see the steady state run rate now quite a bit below $2 billion, or is that another maybe source of conservatism?

Marc Bianchi: Okay. Thanks, Jose. The other one I had relates to oil and gas. So, you've got MVP helping in the first half of 2024, but talked about an overall revenue decline for the year. So it would look like the second half is quite a bit below sort of the $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about, is it in fact that you do see the steady state run rate now quite a bit below $2 billion, or is that another maybe source of conservatism?

It relates to oil and gas. So you have got MVP, helping in.

Jose Mas: The other one I had relates to oil and gas. So you've got MVP helping in the first half of 24, but talked about an overall revenue decline for the year. So it would look like the second half is quite a bit below sort of the $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about is it in fact that you do see the steady state run rate now quite a bit below $2 billion or is that another maybe source of conservatism?

In the first half of 'twenty, four but talked about overall revenue decline for the year. So it would look like the second half is quite a bit below.

Speaker 12: The second half is quite a bit below sort of the $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about, is it in fact that you do see the steady state run rate now quite a bit below $2 billion or is that another maybe source of conservancy?

The $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about it.

Is it in fact that you do see the steady state run rate now quite a bit below 2 billion or is that another may be source of conservatism.

No look I think we've we've said for a while that the.

Speaker 4: No, look, I think, you know, we've we've we've said for a while that.

Jose Mas: No, look, I think, you know, we've said for a while that, you know, the right level for that business was $1.5 billion to $2 billion. We've been feeling more comfortable that it's gonna be closer to the higher end of that. You know, we also knew that MVP would present its own set of challenges, in that it would, you know, it would start, it would be a lot of revenue in particular periods, and it would go away. As I think about, you know, 2024, obviously, the first half of the year is gonna be a little bit stronger because of MVP. We've got a lot of projects that we've previously talked about that are filling in 2024, so we actually feel really good about 2024.

Jose Mas: No, look, I think we've said for a while that the right level for that business was a billion five to two. We've been feeling more comfortable that it's going to be closer to the higher end of that. We also knew that MVP would present its own set of challenges in that it would start. It would be a lot of revenue in particular periods and it would go away. As I think about 2024, obviously the first half of the year is going to be a little bit stronger because of MVP.

The right level for that business was $1 five to two we've been feeling more comfortable that it's going to be closer to the higher end of that we also knew that MVP would presents its own set of challenges and that it would start it would be a lot of revenue in particular periods and it would go away.

Speaker 4: You know, the right level for that business was a billion five to two. We've been feeling more comfortable that it's going to be closer to the higher end of that. You know, we also knew that MVP would, would present its own set of challenges and that it would, you know, it would start, it would be a lot of revenue in particular periods and it would go away. Uh, as, as I think about, you know, 2024, obviously the first half of the year is going to be a little bit stronger because of MVP. We've got a lot of projects that we've previously talked about that are filling in 24. So we actually feel really good about 24. I think, um,

As I think about 2024, obviously, the first half of the year is going to be a little bit stronger because of MVP. We've got a lot of projects that we've previously talked about that are filling in 24. So we actually feel really good about 'twenty four I think.

Jose Mas: As I think about, you know, 2024, obviously, the first half of the year is gonna be a little bit stronger because of MVP. We've got a lot of projects that we've previously talked about that are filling in 2024, so we actually feel really good about 2024.

Jose Mas: We've got a lot of projects that we've previously talked about that are filling in 24. So we actually feel really good about 24. I think the first half will be higher than it was in 23. The second half will be slightly lower. Again, I think that's based on the projects we know today. I think there's some opportunities for some potential pooling but there's also projects that we know about that are going to start in 25. So I think it's going to be a much more consistent year versus the EBS implodes that we've had this year or quite frankly that we had last year as well in that business.

Mark Bianchi: Okay, thank you very much. Thank you.

Yeah.

Jose Mas: I think, you know, the first half will be higher than it was in 2023. The second half will be slightly lower. Again, I think that's based on the projects we know today. I think there's some opportunities for some potential pull-in, but there's also projects that, you know, we know about that are gonna start in 2025. So I think it's gonna be a much more consistent year versus the ebbs and flows that we've had this year, or quite frankly, that we had last year as well in that business.

The first half will be higher than it was in 'twenty three the second half will be slightly lower again, I think thats based on the projects. We know today I think there is some opportunities for some potential pooling.

Speaker 10: you know the first half will be higher than it was in twenty three the second half will be slightly lower uh... again i think that's based on the projects we know today i think there's a some opportunities for some potential pull-in but but there's also projects that you know we know about that are going to start in twenty five uh... so i i think it's going to be a much more consistent year versus the ebbs and flows that that we've had this year or quite frankly that we had last year as well in that business

But theres also projects that we know about that are going to start in 'twenty five.

So I think it's going to be a a.

Much more consistent year versus the ebbs and flows that we've had this year or quite frankly that we had last year as well in that business.

Okay. Thank you very much.

Marc Bianchi: Okay. Thank you very much.

<unk>.

Jose Mas: Thank you.

We will take our next question.

Brent Peelman: We will take our next question from Brent Peelman from GA Davidson. Please go ahead. Hey, thanks.

Operator: We will take our next question from Brent Thielemann, from D.A. Davidson. Please go ahead.

Speaker 2: We will take our next question from Brent Peelman from G.A. Davidson, please go ahead.

Brent Thielman.

Man.

D. A davidson. Please go ahead.

Hey, Thanks, Good morning Jose.

Speaker 13: Hey, thanks. Morning. Jose, just one more on the clean energy margin.

Brent Thielman: Hey, thanks. Good morning. Hey, Jose, just one more on the clean energy margins. I guess the question is, does the profile of the projects in the backlog or under LNP support the margins you're hoping to eventually achieve for that business once that work gets underway? Or do you need to work through that first before we start to think about something sort of, you know, nicely above this mid-single digit range?

One more on the clean energy margin.

Jose Mas: Good morning. Jose, just one more on the clean energy margins. I guess the question is, is the profile of the projects in the backlog or under LNP support the margins or helping to eventually achieve for that business once that work gets underway? What you need to work through that first, before we start to think about something sort of nicely about this big thing of digit range? If we could hit the volume profiles that we're talking about, the margins associated with our pricing and bids definitely allows us to achieve that and we actually think it potentially allows us to achieve more.

I guess the question is that does.

Speaker 13: I guess the question is, is the profile of the projects in the backlog or under LNP support the margins or helping to eventually achieve for that business once that work gets underway? What you need to work through that first before we start to think about something sort of nicely above this single-digit range.

As the profile of the projects in the backlog or under LNP.

The port the margins Youre, hoping to eventually achieve for that business once that work gets underway.

Need to work through that first before we start to think about something sort of yes.

And nicely above that.

Single digit range.

If we could hit the volume profiles that we're talking about the <unk>.

Speaker 10: If we could hit the volume profiles that we're talking about, the margins associated with our pricing and bid.

Jose Mas: If we could hit the volume profiles that we're talking about, the margins associated with our pricing and bids definitely allows us to achieve that. And, you know, we actually think it potentially allows us to achieve more. So we don't believe we have a pricing issue. As we look at it on a project-by-project basis, as we've been delivering projects this year, project performance at the job level has been good. It's been the absorption of costs that's been more of a problem. So as we get revenue levels to where they need to be, you know, we start getting into the margin profile, you know, not even that we're talking about today, but over time, what we've laid out previously on our longer-term outlook.

Margins associated with our pricing and bids.

Definitely allows us to achieve that.

Speaker 10: Definitely allows us to achieve that. And we actually think it potentially allows us to achieve more. So we don't believe we have a pricing issue. We, as we look at on a project by project basis, as we've been delivering projects this year, project performance at the job level has been good. It's been the absorption of cost. It's been more of a problem. So as we get revenue levels to where they need to be, we start getting into the margin profile, not even that we're talking about today, but over time what we've laid out previously on our longer term outlook.

We actually think it potentially allows us to achieve more so we don't we don't believe we have a pricing issue. We as we look at it on a project by project basis as we've been delivering projects. This year project performance at the job level has been good it's been the absorption of cost it's been more of a problem. So as we get revenue levels to where they need to be.

Jose Mas: So we don't believe we have a pricing issue, as we look at our project by project basis as we've been delivering projects this year, project performance at the job level has been good, it's been the absorption of costs, it's been more of a problem. So as we get revenue levels to where they need to be, we start getting into the margin profile, not even that we're talking about today, but over time what we've laid out previously on our longer term outlook.

Jose Mas: It's been the absorption of costs that's been more of a problem. So as we get revenue levels to where they need to be, you know, we start getting into the margin profile, you know, not even that we're talking about today, but over time, what we've laid out previously on our longer-term outlook.

We start getting into the margin profile not even though we're talking about today, but over time, what we've laid out previously on our longer term outlook.

Okay.

I guess I'll ask this question on <unk>, maybe another way I mean that the preliminary view sort of mid to high single digit growth for next year.

Speaker 13: Okay, and I guess I'll ask this question on 24 maybe another way. I mean, the pre-biminary view sort of made a high single digit growth for next year. To what degree does that include?

Brent Thielman: Okay. And I, you know, I guess I'll ask this question on 2024 maybe another way. I mean, the preliminary view, sort of mid- to high-single-digit growth for next year. To what degree does that include executing on sort of the renewables projects inherited from IEA that you sort of deferred thus far this year?

Jose Mas: Okay, and I guess I'll ask this question on 24 maybe another way. I mean, the preliminary review, sort of the high single digit growth for next year, to what degree does that include it executing on the renewables projects inherited from IAA that you've seen sort of deferred thus far this year? Brian, I missed a slight part of the question after, can you repeat the question because it cut out for a second?

To what degree did that included.

Executing on through the renewables projects inherited from IAA that you've seen.

Speaker 13: executing on the renewables projects inherited from IEA that you've seen that you sort of deferred thus far this year.

Sort of deferred thus far this year.

Bryan I missed a slide part of the question. After can you repeat the question because it cut out for a second.

Jose Mas: Brent, I missed a slight part of the question after... Can you repeat the question? Because it, it cut out for a second.

Speaker 10: I missed a slight part of the question after, can you repeat the question? Because it cut out for a second.

Yes, I guess the question is just as you think about that 2024 preliminary view for growth to what degree does that include assumptions for work from IAA that you've seen deferred so far this year.

Brent Thielman: Yeah, Jose, I guess the question is just as you think about that 2024 preliminary view for growth, to what degree does that include assumptions for the work from IEA that you've seen deferred so far this year?

Speaker 13: Yeah, Jose, I guess the question is just as you think about that 2024 preliminary view for growth, to what degree does that include assumptions for the work from IEA that you've seen deferred so far?

Jose Mas: Yeah, I guess the question is just as you think about that, 2024 preliminary view for growth, to what degree does that include assumption for the work from IAA that you've seen deferred so far this year? Well, what we've done for 24 and clean energy is we've kind of gone back to the start, right? And we took every project with artists of where it came from, whether it was IAA or legacy business, and we've risk adjusted it, and we're focusing on projects where we think have very little issues to proceed in 24, and that's how we're building our plan.

Well, what we've done for 24 and clean energy as we've kind of gone gone back to the start right and we took every project regardless of where it came from where the <unk> legacy business.

Speaker 10: Well, what we've done for 24 and clean energy is we've kind of, you know, gone, gone back to the start. Right. And we took every project, regardless of where it came from, whether it was our legacy business, and we've risk adjusted it. And we're focusing on projects.

Jose Mas: Well, what we've done for 2024 in clean energy is we've kind of, you know, gone back to the start, right? And we took every project, regardless of where it came from, whether it was IEA or our legacy business, and we've risk-adjusted it, and we're focusing on projects where we think, you know, have very little issues to proceed in 2024, and that's how we're building our plan. You know, we're not abandoning any projects. We're not abandoning any customers. To the extent that we can pull them in, we will obviously do that, but we're really trying to build a plan based on a combined work schedule of jobs that we think have the highest likelihood of going and of performing well.

And we've risk adjusted it and we're focusing on projects.

Where we think have very little issues to proceed in 'twenty four and Thats how were building our plan.

Speaker 10: where we think, you know, have very little issues to proceed in 24 and that's how we're building our plan. You know, we're not abandoning any projects, we're not abandoning any customers to the extent that we can pull them in. We will obviously do that, but we're really trying to build a plan based on a combined work schedule of jobs that we think have the highest likelihood of going in a performing well.

We're not abandoning any projects, we're not abandoning any customers to the extent that we can pull them in we will obviously do that but we're really trying to build the plan based on a combined work schedule of jobs that we think have the highest likelihood of going and are performing well.

Jose Mas: You know, we're not abandoning any projects. We're not abandoning any customers. To the extent that we can pull them in, we will obviously do that, but we're really trying to build a plan based on a combined work schedule of jobs that we think have the highest likelihood of going and of performing well.

Jose Mas: You know, we're not abandoning any projects, we're not abandoning any customers to the extent that we can pull them in. We will obviously do that, but we're really trying to build the plan based on a combined work schedule of jobs that we think have the highest likelihood of going in a performing well.

Okay. Thanks Jose.

Brent Thielman: Okay. Thanks, Jose.

Adam Talheimer: Okay. Thanks for the day. As a reminder, if you would like to ask a question, please press star one. We'll take our next question from Adam Talheimer from Thompson Davis.

Okay.

As a reminder.

Speaker 2: As a reminder, if you would like to ask a question, please press star one. We'll take our next question from Adam Kalheimer from Thompson D.

We'd like to ask a question. Please press star one.

Operator: As a reminder, if you would like to ask a question, please press star one. We'll take our next question from Adam Talheimer from Thompson Davis.

Take our next question from Adam.

From Thompson Davis.

Hey, good morning, Thanks, guys.

Speaker 14: hey good morning thanks guys uh... how's it to what extent or higher rates uncertainty impacting bidding

Jose Mas: Hey, good morning. Thanks, guys. How's it going to extend our higher rates and macro uncertainty impacting bidding? Well, I don't know that they're impacting bidding as much as they're impacting customers ability to ultimately perform on projects as a concern in bidding, right? So I think what it does to our bidding strategy is it really makes us get a very good understanding of where the customer is, what the potential of that job on a go-forward basis is, and their ability to execute.

Adam Thalhimer: Hey, good morning. Thanks, guys.

Jose to what extent are higher rates and macro uncertainty impacting bidding.

Jose Mas: Morning, Adam.

Adam Thalhimer: Jose, to what extent are higher rates and macro uncertainty impacting bidding?

Well I don't know that theyre impacting bidding as much as they are impacting.

Speaker 10: Well, I don't know that they're impacting bidding as much as they're impacting, um, you know, customers ability to ultimately, uh, perform on projects as, as a concern in bidding. Right? So I think.

Jose Mas: Well, I don't know that they're impacting bidding as much as they're impacting, you know, customers' ability to ultimately perform on projects as a concern in bidding, right? So I think what it does to our bidding strategy is it really makes us get a very good understanding of where the customer is, what the potential of that job on a go-forward basis is, and their ability to execute. And to the extent that they can meet that from a cost perspective, right, we're building in our current costs as we know them. We're building in, you know, whatever we think, you know, may change from a labor perspective or materials. A lot of that gets locked in at bid time. So from a pricing mechanism perspective, you know, we're not overly concerned.

Jose Mas: And to the extent that they can meet that from a cost perspective, right, we're building in our current cost. As we know them, we're building in whatever we think may change from a labor perspective or materials, a lot of that gets locked in at bid time. So from a pricing mechanism perspective, we're not overly concerned, we're more concerned with making sure that the projects that we're bidding and the time that we're spending bidding on projects as well serve relative to the potential of that project moving forward. List that you think is really doable.

Customers' ability to ultimately.

Perform on projects as a concern in bidding right. So I think what it does to our bidding strategy as it really makes us get a very good understanding of where the customer is what the potential of that job on a go forward basis is and their ability to execute and to the extent that they can meet that from a cost perspective right. We're building in our current cost as we.

Speaker 10: What it does to our bidding strategy is it really makes us get a very good understanding of where the customer is, what the potential of that job on a go-forward basis is, and their ability to execute, and to the extent that they can meet that from a cost perspective, right? We're building in our current cost as we know them. We're building in, you know, whatever we think, you know, may change from a labor perspective or materials. A lot of that gets locked in at bid time. So from a pricing mechanism perspective, you know, we're not overly concerned. We're more concerned with

Jose Mas: And to the extent that they can meet that from a cost perspective, right, we're building in our current costs as we know them. We're building in, you know, whatever we think, you know, may change from a labor perspective or materials. A lot of that gets locked in at bid time. So from a pricing mechanism perspective, you know, we're not overly concerned.

Then we are building in whatever we think may change from a labor perspective or materials a lot of that gets locked in a bid time. So from a from a pricing mechanism perspective, we're not overly concerned we're more concerned with may.

Jose Mas: We're more concerned with, you know, making sure that the projects that we're bidding and the time that we're spending bidding on projects is well served relative to the potential of that project moving forward.

Making sure that the projects that we're bidding and the time that were spent in bidding on projects as well served relative to the potential of that project moving forward.

Speaker 10: You know, making sure that the projects that we're bidding and the time that we're spending bidding on projects is well served relative to the potential of that project moving forward.

Okay, sorry, I was kind of more thinking about just the.

Adam Thalhimer: Okay. Sorry, I was kind of more thinking about just the pace of bidding or the flow of bidding or the amount of projects that people are giving you to look at for 2024.

Speaker 14: Sorry, I was kind of more thinking about just the pace of bidding or the flow of bidding or the amount of projects that people are giving you a look at for 2020.

The pace of bidding or flow of bidding or the amount of projects that people are giving you look at for 2024.

Yes, and Thats the issue right its.

Speaker 10: Yeah, and that's the issue, right? It's it's I mean, the amount of work that is being presented right or people ask us to bid on is more than we could ever do. So the challenge isn't, you know,

Jose Mas: Yeah, and that's the issue, right? It's, I mean, the amount of work that is being presented, right, or people ask us to bid on is more than we could ever do. So the challenge isn't, you know, providing pricing to everybody. The challenge is making sure that you're down selecting from that list to a list that you think is really doable. You know, I wanna reiterate this because we, you know, we try to say it different ways. The market is incredibly healthy. There is an enormous amount of pent-up demand in the marketplace relative to projects. You can meet dozens and dozens of customers that have massive portfolios of build plans. The question is, how many of those will go forward and when?

I mean, the amount of work that has been.

<unk> presented writer people ask us to bid on is more than we could ever do so the challenge isn't.

Providing pricing to everybody that the.

Speaker 10: Providing pricing to everybody the problem of the challenge is making sure that you're down selecting from that list to a list that you think Is is really doable You know, I want to reiterate this because we we try to say it different ways The market is incredibly healthy. There is an enormous amount of pent-up demand in the marketplace relative to projects

<unk>, making sure that youre down selecting from that list to a list that you think is really doable.

To reiterate this because we've tried to say it different ways. The market is incredibly healthy there is an enormous amount of pent up demand in the marketplace relative to projects.

Jose Mas: You know, I wanna reiterate this because we, you know, we try to say it different ways. The market is incredibly healthy. There is an enormous amount of pent-up demand in the marketplace relative to projects. You can meet dozens and dozens of customers that have massive portfolios of build plans. The question is, how many of those will go forward and when?

Jose Mas: You know, I want to reiterate this because we try to say it in different ways. The market is incredibly healthy. There is an enormous amount of pen of demand in the marketplace throughout the projects. You can meet dozens and dozens of customers that have massive portfolios of build plants. The question is how many of those will will go forward and when I think they will all go forward quite frankly or most of them will go forward, but the question is one and that's where we're really spending a lot of time so we're not in the same position that we were in 23.

You can meet dozens and dozens of customers that have massive portfolios of build plans.

Speaker 10: you can meet dozens and dozens of customers that have massive portfolios of build plans. The question is how many of those will go forward and when. I think they will all go forward, quite frankly, or most of them will go forward, but the question is when. And that's where we're really spending a lot of time, so we're not in the same position that we were in 2020.

Question is how many of those will we'll go forward and when and I think they will all go forward quite frankly, where most of them will go forward, but the question is one and that's what we're really spending a lot of time. So we're not in the same position that we were in 2003.

Jose Mas: I think they will all go forward, quite frankly, or most of them will go forward, but the question is when, and that's where we're really spending a lot of time, so we're not in the same position that we were in 2023.

Okay, great. Good luck for Q4.

Speaker 15: Great, good luck with Q4. Thanks for having me.

Neil Mehta: Okay, great. Good luck with Q4.

Adam Thalhimer: Okay, great. Good luck with Q4.

Thanks, Adam.

Adam Talheimer: Okay. Great. Good luck with Q4. Thanks, Adam.

Jose Mas: Thanks, Adam.

Unknown Attendee: It appears there are no further questions at this time.

It appears there are no further questions at this time.

Operator: It appears there are no further questions at this time. I would like to turn the call back over to Jose Mas for any additional or closing remarks.

I would like to turn the call back over to Jose Mas for him.

Speaker 2: like to turn the call back over to José Mas for any additional or closing remarks.

Jose Mas: I would like to turn the call back over to Jose Mas for any additional or closing remarks. Yes, I just want to take this opportunity to thank everybody again. Thank you for changing your schedules and we look forward to updating on our fourth quarter. Thank you.

Any additional or closing remarks.

So just wanted to take this opportunity to thank everybody again, thank you for changing your schedules and we look forward to updating you on our fourth quarter call.

Jose Mas: Yes, I just wanna take this opportunity to thank everybody again. Thank you for changing your schedules, and we look forward to updating you on our Q4 call. Thank you.

Speaker 10: Yes, I just want to take this opportunity to thank everybody again. Thank you for changing your schedules, and we look forward to updating you on our fourth quarter call.

Thank you.

Okay.

This concludes today's call. Thank you for your participation you may now disconnect.

Operator: This concludes today's call. Thank you for your participation. You may now disconnect.

Unknown Attendee: This concludes today's call. Thank you for your participation.

Speaker 2: This concludes today's call. Thank you for your participation. You may now disconnect.

Unknown Attendee: You may now disconnect.

Q3 2023 MasTec Inc Earnings Call

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