Q2 2024 Centuri Holdings Ins Earnings Call

July 29, 2024

[inaudible]

Operator: We're about to begin.

Operator: Good day, everyone, and welcome to Centuri's second quarter 2024 earnings conference call. At this time, all participants are in the listen-only mode.

Operator: Stand by, we're about to begin. Good day everyone and welcome to Century's second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode.

Operator: Good day, everyone, and welcome to Centuri's Q2 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Jason Wilcock, Chief Legal and Administrative Officer and Corporate Secretary for Centuri. Please go ahead, sir.

Please stand by. We're about to begin.

Speaker Change: Good day, everyone, and welcome to Century's second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

Operator: A brief question and answer session will follow the formal presentation. As a reminder, this conference is. Mr. Jason Wilcox, Chief Legal and Administrative Officer and Corporate Secretary for Century. Thank you, Bo, and hello, everyone.

Operator: A brief question-and-answer session will follow the formal presentation.

Operator: As a reminder, this conference is being recorded.

Jason Wilcock: It is now my pleasure to introduce your host, Mr. Jason Wilcock, Chief Legal and Administrative Officer, and Corporate Secretary for Century.

Speaker Change: As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Mr. Jason Wilcock, Chief Legal and Administrative Officer and Corporate Secretary for Century. Please go ahead, sir.

Jason Wilcock: Please go ahead, sir.

Bill Furman: Thank you, Bo, and hello, everyone. We appreciate you joining our call. This morning, we issued a post at the Centuri Holdings website, our second quarter 2024 earnings release. The slides that come to today's call are also available on Centuri Holdings' website. Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer-term guidance.

Jason Wilcock: Thank you, Bowen. Hello, everyone. We appreciate you joining our call. This morning, we issued and posted to Centuri Holdings' website our Q2 2024 earnings release. The slides accompanying today's call are also available on Centuri Holdings' website. Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer-term guidance. Some of the information that will be discussed today contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements are as of today's date and based on management's assumptions on what the future holds, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals.

Jason Wilcox: We appreciate you joining our call. This morning, we issued and posted on Century Holdings' website our second quarter 2024 earnings. The slides accompanying today's call are also available on Century Holdings' website. Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer-term guidance. Some of the information that will be discussed today contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act.

Jason Wilcox: Thank you, Bo, and hello, everyone. We appreciate you joining our call. This morning, we issued and posted to Century Holdings' website our second quarter 2024 earnings release.

Speaker Change: The slides accompanying today's call are also available on Century Holdings' website.

Speaker Change: Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer-term guidance.

Bill Furman: Some of the information that we'll be discussed today contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements are as of today's date and based on management's assumptions on what the future holds, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals. This cautionary note, as well as a note regarding non-GAAP measures, is included on slides 2 and 19 of this presentation, today's press release, and our filings with the Securities and Exchange Commission, which we encourage you to review. These risks and uncertainties may cause actual results to differ materially from the statements made today.

Jason Wilcox: These statements are, as of today's date, and based on management's assumptions about what the future holds, but they are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals. This Cautionary Note, as well as a note regarding non-GAAP measures, is included on slides 2 and 19 of this presentation, today's press release, and our filings with the Securities and Exchange Commission, which we encourage you to review. These risks and uncertainties may cause actual results to differ materially from statements made today. We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statements.

Speaker Change: Some of the information that will be discussed today contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act.

Speaker Change: These statements are, as of today's date, and based on management's assumptions on what the future holds, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals.

Jason Wilcock: This cautionary note, as well as a note regarding non-GAAP measures, is included on slides 2 and 19 of this presentation, today's press release, and our filings with the Securities and Exchange Commission, which we encourage you to review. These risks and uncertainties may cause actual results to differ materially from the statements made today. We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statement. Today's call is also being webcast live and will be available for replay in the investor relations section of our website shortly after the completion of this call. On today's call, we have Bill Fehrman, outgoing President and CEO of Centuri Holdings, Paul Caudill, incoming Interim President and CEO of Centuri Holdings, Gregory Izenstark, Chief Financial Officer of Centuri Holdings, and other members of the Centuri Holdings management team.

Speaker Change: This cautionary note, as well as a note regarding non-GAAP measures.

Speaker Change: is included on Slides 2 and 19 of this presentation. Today's press release...

Speaker Change: and our filings with the Securities and Exchange Commission, which we encourage you to review.

Speaker Change: These risks and uncertainties may cause actual results to differ materially from statements made today. We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statement.

Bill Furman: We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statement.

Bill Furman: Today's call is also being webcast live and will be available for replay in the Investor Relations section of our website shortly after the completion of this call.

Operator: Today's call is also being webcast live and will be available for replay in the Investor Relations section of our website shortly after the completion of this call. On today's call, we have Bill Fuhrman, outgoing president and CEO of Century Holdings. Paul Cuddill, Incoming Interim President and CEO of Century Holdings Gregory Eisenstark, Chief Financial Officer of Century Holdings, and other members of the Century Holdings management team. I'll now turn the call over to Bill. Thank you, Jason.

Speaker Change: Today's call is also being webcast live and will be available for replay in the Investor Relations section of our website shortly after the completion of this call.

Bill Furman: On today's call, we have Bill Furman, outgoing President and CEO of Century Holdings, Paul Cudill, incoming Interim President and CEO of Century Holdings, Gregory Eisenstark, Chief Financial Officer of Century Holdings, and other members of the Century Holdings management team.

Speaker Change: On today's call, we have Bill Fuhrman, outgoing President and CEO of Century Holdings.

Speaker Change: Paul Cuddill, Incoming Interim President and CEO of Century Holdings Gregory Eisenstark, Chief Financial Officer of Century Holdings and other members of the Century Holdings management team. I'll now turn the call over to Bill.

Jason Wilcock: I'll now turn the call over to Bill.

Bill Furman: I'll now turn the call over to Bill. Thank you, Jason, and thank you all to a joint-century second-quarter 2020-24 earnings call. Shortly, I'll discuss the quarter and recent developments.

Bill Fuhrman: And thank you all who have joined Centuri's second quarter 2024 earnings call. Shortly, I'll discuss the quarter and recent developments. First, being that this is our inaugural earnings call, I'll spend a few minutes talking about our organization, how we're differentiated, and our compelling value proposition. During the second quarter, Centuri concluded its initial public offering and a concurrent private placement.

Bill Fehrman: Thank you, Jason, and thank you all who have joined Centuri's Q2 2024 earnings call. Shortly, I'll discuss the quarter and recent developments. First, being that this is our inaugural earnings call, I'll spend a few minutes about our organization, how we're differentiated, and our compelling value proposition. During Q2 2024, Centuri concluded its initial public offering at a concurrent private placement. We listed on the New York Stock Exchange and raised just under $330 million. It was a special occasion to join colleagues at the New York Stock Exchange a few weeks later to ring the opening bell and commemorate this important milestone for our company. I again want to thank all my colleagues at the company for their dedication and commitment.

Bill Fuhrman: Thank you, Jason, and thank you all who have joined Century's second quarter 2024 earnings call.

Bill Furman: First, being that this is our inaugural earnings call, I'll spend a few minutes on our organization, how we're differentiated, and our compelling value and propositions. During the second quarter, Centuri concluded its initial public offering and a concurrent private placement. We listed on the New York Stock Exchange and raised just under $330 million. It was a special occasion to join colleagues at the New York Stock Exchange, a few weeks later, to ring the opening bell and commemorate this important milestone for our company. I again want to thank all my colleagues at the company for their dedication and commitment.

Bill Fuhrman: Shortly, I'll discuss the corridor and recent developments. First, being that this is our inaugural earnings call, I'll spend a few minutes talking about our organization, how we're differentiated, and our compelling value proposition.

Bill Fuhrman: During the second quarter, Century concluded its initial public offering and a concurrent private placement.

Bill Fuhrman: We listed on the New York Stock Exchange and raised just under $330 million. It was a special occasion to join colleagues at the New York Stock Exchange a few weeks later to ring the opening bell and commemorate this important milestone for our company. I again want to thank all my colleagues at the company for their dedication and commitment. Through completion of the IPO, we are proud to have brought to market a leading pure play North American utility infrastructure services company.

Bill Furman: Through completion of the IPO, we are proud to have brought to market a leading pure-play North American utility infrastructure services company. We partner with our customers to maintain, upgrade, and expand North American energy networks. Our risks go back more than a century with our company well-known for delivering world-class safety and quality performance. For these reasons, centrials are in the trust and partnership of a well-established blue chip utility customer base. The average tender for our top 20 customers is 23 years. We deploy our services across a scale platform that spans natural gas and electric infrastructure and is in 43 states and two Canadian provinces.

Bill Fehrman: Through completion of the IPO, we are proud to have brought to market a leading pure-play North American utility infrastructure services company. We partner with our customers to maintain, upgrade, and expand North American energy networks. Our roots go back more than a century, with our company well known for delivering world-class safety and quality performance. For these reasons, Centuri has earned the trust and partnership of a well-established blue-chip utility customer base. The average tenure for our top 20 customers is 23 years. We deploy our services across a scale platform that spans natural gas and electric infrastructure and is in 43 states and two Canadian provinces. In both our gas and electric market segments, we have historically focused on and continue to target local distribution work primarily through master service agreements or MSAs. A much smaller portion of our revenue is currently focused on smaller scale bid work.

Bill Fuhrman: I again want to thank all my colleagues at the company for their dedication and commitment. Through completion of the IPO, we are proud to have brought to market a leading pure-play North American utility infrastructure services company.

Bill Fuhrman: We partner with our customers to maintain, upgrade, and expand North American Energy Network. Our roots go back more than a century, with our company well-known for delivering world-class safety and quality performance. For these reasons, Century has earned the trust and partnership of a well-established blue-chip utility customer. The average tenure for our top 20 customers is 23 years.

Bill Fuhrman: We partner with our customers to maintain, upgrade, and expand North American energy networks.

Bill Fuhrman: Our roots go back more than a century, with our company well-known for delivering world-class safety and quality performance. For these reasons, Century has earned the trust and partnership of a well-established blue-chip utility customer base.

Bill Fuhrman: We deploy our services across a platform that spans natural gas and electric infrastructure and is in 43 states and 2 Canadian provinces. In both our gas and electric market segments, we have historically focused on, and continue to target, local distribution work primarily through Master Service Agreements, or MSAs. A much smaller portion of our revenue is currently focused on smaller scale bids... This means we lean primarily into the blocking and tackling maintenance and smaller scale construction work our customers need.

Bill Fuhrman: The average tenure for our top 20 customers is 23 years. We deploy our services across a scale platform that spans natural gas and electric infrastructure and is in 43 states and 2 Canadian provinces.

Bill Furman: In both our gas and electric market segments, we have historically focused on and continue to target local distribution work primarily through master service agreements or MSAs. In much smaller portion of our revenue is currently focused on smaller scale bid work. This means we lean primarily into the blocking and tackling maintenance and smaller scale construction work our customers need. Our approach helps us form sticky relationships with customers and, on a historical basis, has provided us with a recurring revenue profile and visibility over their longer-term spending plans. Over the last decade, Centri has delivered consistent and resilient growth, and perhaps more importantly, as we look ahead.

Bill Fuhrman: In both our gas and electric market segments, we have historically focused on, and continue to target, local distribution work primarily through Master Service Agreements, or MSAs.

Bill Fuhrman: A much smaller portion of our revenue is currently focused on smaller scale bid work.

Bill Fehrman: This means we lean primarily into the blocking and tackling maintenance and smaller scale construction work our customers need. Our approach helps us form sticky relationships with customers and, on a historical basis, has provided us with a recurring revenue profile and visibility over their longer-term spending plans. Over the last decade, Centuri has delivered consistent and resilient growth. Perhaps more importantly, as we look ahead, we see multiple levers to pull, which will drive continued expansion. Demand for utility CapEx growth, and in turn for our services, is underpinned by multi-decade secular tailwinds spanning gas, electric, and renewables. We are extremely energized by this backdrop and are keenly identifying, capturing, and expanding opportunities being forecasted in energy and utility infrastructure.

Bill Fuhrman: This means we lean primarily into the blocking and tackling maintenance and smaller scale construction work our customers need.

Bill Fuhrman: Our approach helps us form sticky relationships with customers, and on a historical basis, has provided us with a recurring revenue profile and visibility over their longer-term spending plans. Over the last decade, Century has delivered consistent and resilient growth.

Bill Fuhrman: Our approach helps us form sticky relationships with customers and on a historical basis has provided us with a recurring revenue profile and visibility over their longer term spending plans.

Bill Fuhrman: And, perhaps more importantly, as we look ahead, we see multiple levers to pull which will drive continued expansion; demand for utility CapEx growth, and in turn, for our service, is underpinned by multi-decade secular tailwinds spanning gas, electric, and renewables. We are extremely energized by this backdrop and are keenly focused on identifying, capturing, and expanding opportunities being forecasted in energy and utility infrastructure. To that end, we experienced ongoing commercial momentum during the second quarter of 2024 across MSAs, which represented 83% of the quarter's revenues, and bid work, which comprised the remaining 17%.

Bill Fuhrman: Over the last decade, Century has delivered consistent and resilient growth, and perhaps more importantly as we look ahead, we see multiple levers to pull which will drive continued expansion, demand for utility CapEx growth, and in turn for our services.

Bill Furman: We see multiple efforts to pull, which will drive continued expansion. The man for utility, CapEx growth and in turn for our services is underpinned by multi-decade secular tailwind spanning gas, electric and renewables. We are extremely energized by this backdrop and are keenly focused on identifying the capture and expanding opportunities being forecasted in energy and utility infrastructure. To that end, we experienced ongoing commercial momentum during the second quarter of 2024 across MSAs, which represented 83% of the quarter's revenues, and bid work, which comprise the remaining 17%. Bid work historically counts for 15 to 20% of our annual revenues as we maintain a very selective risk-adjusted criteria for the work we pursue.

Bill Fuhrman: is underpinned by multi-decade secular tailwinds spanning gas, electric, and renewables.

Bill Fuhrman: We are extremely energized by this backdrop and are keenly focused on identifying, capturing, and expanding opportunities being forecasted in energy and utility infrastructure.

Bill Fehrman: To that end, we experienced ongoing commercial momentum during Q2 2024 across MSAs, which represented 83% of the quarter's revenues, and bid work, which comprised the remaining 17%. Bid work historically accounts for 15% to 20% of our annual revenues as we maintain a very selective risk-adjusted criteria for the work we pursue. Illustrating our long-term customer relationships, we secured seven customer awards in Q2 with a total multiyear estimated revenue potential of more than $250 million through MSA extensions, including an early renewal with one of our top customers. The quarter continues our track record of never having lost a material customer MSA. During the period, we also secured an estimated $150 million in bid project awards.

Bill Fuhrman: To that end, we experienced ongoing commercial momentum during the second quarter of 2024 across MSAs, which represented 83% of the quarter's revenues and bid work, which comprised the remaining 17%.

Bill Fuhrman: Bid work historically accounts for 15-20% of our annual revenues as we maintain a very selective risk-adjusted criteria for the work we pursue. Illustrating our long-term customer relationships, we secured seven customer awards in the second quarter with a total multi-year estimated revenue potential of more than $250 million through MSA extensions, including an early renewal with one of our top customers. The quarter continues our track record of never having lost a material customer MSA.

Bill Fuhrman: Bid work historically counts for 15-20% of our annual revenues as we maintain a very selective risk-adjusted criteria for the work we pursue.

Bill Furman: Illustrated are not illustrating our long-term customer relationships. We secured seven customer words in the second quarter with a total multi-year estimated revenue potential of more than $250 million through MSA extensions, including an early renewal with one of our top customers. The quarter continues our track record of never having lost material customer MSA. During the period, we also secured an estimated $150 million in bid project awards combined with our MSA work. This represents more than $400 million in estimated revenue and brings our total current backlog to $4.7 billion. We were pleased to secure the 230 kV card of substation expansion job for Atlantic Shores Project 1.

Bill Fuhrman: Illustrating our long-term customer relationships, we secured seven customer awards in the second quarter.

Bill Fuhrman: with a total multi-year estimated revenue potential of more than $250 million through MSA Extensions, including an early renewal with one of our top customers.

Bill Fuhrman: The quarter continues our track record of never having lost a material customer MSA.

Bill Fuhrman: During the period, we also secured an estimated $150 million in bid project awards. Combined with our MSA work, this represents more than $400 million in estimated revenue and raises our total current backlog to $4.7 billion. We were pleased to secure the 230 kV Cardiff substation expansion job for Atlantic Shores Project 1. This work has an estimated value of $105 million in revenues and delivers critical infrastructure to connect New Jersey's first offshore wind project. While offshore wind work remains a de minimis part of our business mix,

Bill Fuhrman: During the period, we also secured an estimated $150 million in bid project awards. Combined with our MSA work, this represents more than $400 million in estimated revenue.

Bill Fehrman: Combined with our MSA work, this represents more than $400 million in estimated revenue and brings our total current backlog to $4.7 billion. We were pleased to secure the 230 kV Cardiff substation expansion job for Atlantic Shores Project 1. This work has an estimated value of $105 million in revenues and delivers critical infrastructure to connect New Jersey's first offshore wind project. While offshore wind work remains a diminished part of our business mix, this project highlights the ancillary infrastructure required to connect renewables to the grid and ultimately to end customers, and taps into our core capabilities. During Q2, we were awarded a $35 million gas project, replacing 30 miles of 20-inch steel pipe and building support stations as part of a major system upgrade in the Midwest.

Bill Fuhrman: and brings our total current backlog to $4.7 billion.

Bill Fuhrman: We were pleased to secure the 230 kV Cardiff substation expansion job for Atlantic Shores Project 1.

Bill Furman: This work has an estimated value of $105 million in revenues and delivers critical infrastructure to connect New Jersey's first offshore wind project. While offshore wind work remains a diminishing part of our business mix, this project highlights the ancillary infrastructure required to connect renewables to the grid and ultimately to end customers and have into our core capabilities. Also during the second quarter, we were awarded a $35 million gas project, replacing 30 miles of 20-inch steel pipe and building support stations as part of a major system upgrade in the Midwest. While small to start, the total scope of work to be done under future phases of this project will result in a revenue potential that is several multiples higher and will afford to participate in future bids.

Bill Fuhrman: This work has an estimated value of $105 million in revenues and delivers critical infrastructure to connect New Jersey's first offshore wind project.

Bill Fuhrman: This project highlights the ancillary infrastructure required to connect renewables to the grid and ultimately to end customers and taps into our core capabilities. Also, during the second quarter, we were awarded a $35 million gas project replacing 30 miles of 20-inch steel pipe and building support stations as part of a major system upgrade in the Midwest. While small to start, the total scope of work to be done under future phases of this project will result in revenue potential that is several multiples higher, and we look forward to participating in future bids. These wins are examples of early successes in our strategy to selectively expand our bid work while staying within our core competence. We have no plans to pursue cross-country transmission work.

Bill Fuhrman: While offshore wind work remains a diminutive part of our business mix, this project highlights the ancillary infrastructure required to connect renewables to the grid and ultimately to end customers and taps into our core capabilities.

Bill Fuhrman: Also during the second quarter, we were awarded a $35 million gas project, replacing 30 miles of 20-inch steel pipe and building support stations as part of a major system upgrade in the Midwest.

Bill Fehrman: While small to start, the total scope of work to be done under future phases of this project will result in a revenue potential that is several multiples higher, and we look forward to participating in future bids. These wins are examples of early successes in our strategy to selectively expand our bid work while staying within our core competencies. We have no plans to pursue cross-country transmission work. However, doing work in areas such as substations, generators, interconnections, and utility-scale transmission projects, as well as larger diameter pipe for gas utilities, can be attractive from a margin and returns perspective. When needed, it can also nicely balance any slowdowns in MSA volumes. Now to our results. Several factors contributed to our financial performance in Q2.

Bill Fuhrman: While small to start, the total scope of work to be done under future phases of this project will result in a revenue potential that is several multiples higher and we look forward to participating in future bids.

Bill Furman: These winds are examples of early successes in our strategy to selectively expand our bid work while staying within our core competencies. We have no plans to pursue cross-country transmission work. However, doing work in areas such as substations, generators, interconnections, and utility scale transmission projects, as well as larger diameter pipe per gas utilities, can be attractive from a margin and returns perspective. When needed, it can also nicely balance any slowdowns and MSA volumes.

Bill Fuhrman: These wins are examples of early successes in our strategy to selectively expand our bid work while staying within our core competencies.

Bill Fuhrman: However, doing work in areas such as substations, generators, interconnections, and utility-scale transmission projects, as well as larger diameter pipe for gas utilities, can be attractive from a margin and returns perspective. When needed, it can also nicely balance any slowdowns in MSA values. Now to our results. Several factors contributed to our financial performance in the second quarter. As reports from the financial community have observed, there has been a broad-based slowdown in transmission and distribution construction spending since the beginning of the year.

Bill Fuhrman: We have no plans to pursue cross-country transmission work. However, doing work in areas such as substations, generators, interconnections, and utility-scale transmission projects, as well as larger diameter pipe for gas utilities, can be attractive from a margin and returns perspective.

Bill Furman: Now to our results. Several factors contributed to our financial performance in the second quarter. As reports from the financial community have observed, there has been a broad base slowdown in transmission and distribution construction spending since the beginning of the year. In recent weeks, commentary has suggested a widespread deep need in this slowdown during the second quarter and particular softness in gas and electric distribution, which is our main focus area. At century, we experienced this dynamic during the period. Several customers across multiple regulatory jurisdictions across our territories, including Illinois, California, and Maryland, among others, experienced delayed or unfavorable rate case decisions.

Bill Fuhrman: When needed, it can also nicely balance any slowdowns in MSA volumes.

Bill Fuhrman: Now to our results.

Bill Fuhrman: Several factors contributed to our financial performance in the second quarter.

Bill Fehrman: As reports from the financial community have observed, there has been a broad-based slowdown in transmission and distribution construction spending since the beginning of the year. In recent weeks, commentary has suggested a widespread deepening in this slowdown during Q2. In particular, softness in gas and electric distribution, which is our main focus area. At Centuri, we experienced this dynamic during the period. Several customers across multiple regulatory jurisdictions across our territories, including Illinois, California, and Maryland, among others, experienced delayed or unfavorable rate case decisions. This drove lower than expected MSA customer spending, which in turn resulted in sluggish crew growth for Centuri. Further, we were impacted by delayed bid work and a bid job that was canceled by a customer. Despite these revenue headwinds, our adjusted EBITDA margin was in line with historical Q2 levels, evidencing our strong focus on cost control.

Bill Fuhrman: As reports from the financial community have observed, there has been a broad-based slowdown in transmission and distribution construction spending since the beginning of the year.

Bill Fuhrman: In recent weeks, commentary has suggested a widespread deepening of this slowdown during the second quarter and particular softness in gas and electric distribution, which is our main focus area. At Century, we experienced this dynamic during the period. Several customers across multiple regulatory jurisdictions across our territory, including Illinois, California, and Maryland, among others, experienced delayed or unfavorable rate case decisions. This drove lower than expected MSA customer spending, which in turn resulted in sluggish per capita growth for centuries.

Bill Fuhrman: In recent weeks, commentary has suggested a widespread deepening in this slowdown during the second quarter, and particular softness in gas and electric distribution, which is our main focus area.

Century: At Century, we experienced this dynamic during the period.

Century: Several customers across multiple regulatory jurisdictions across our territories.

Century: including Illinois, California, and Maryland, among others, experienced delayed or unfavorable rate case decisions. This drove lower-than-expected MSA customer spending, which in turn resulted in sluggish crew growth for a century.

Bill Furman: This drove lower than expected MSA customer spending, which in turn resulted in sluggish furniture growth for Century. Further, we were impacted by delayed bid work and a bid job that was cancelled by a customer. Despite these revenue headwinds, our adjusts at EBITDA margin was in line with historical second quarter levels, evidencing our strong focus on cost control. Further, if we tighten controls on CAPEXPEN and continue to focus on capital allocation, our focus has resulted in significantly less CAPEXPEN versus the prior year period. Together, these initiatives helped drive solid free cash flow conversion on adjusted EBITDA during the period.

Bill Fuhrman: Further, we were impacted by delayed bid work and a bid job that was cancelled by a customer. Despite these revenue headwinds, our adjusted EBITDA margin was in line with historical second-quarter levels, evidencing our strong focus on cost-cutting. Additionally, we tightened controls on CapEx spend and continue to focus on capital allocation.

Century: Further, we were impacted by delayed bid work and a bid job that was cancelled by a customer.

Century: Despite these revenue headwinds, our adjusted EBITDA margin was in line with historical second quarter levels, evidencing our strong focus on cost control.

Bill Fehrman: Further, we tightened controls on CapEx spend and continued to focus on capital allocation. Our focus has resulted in significantly less CapEx spend versus the prior year period. Together, these initiatives help drive solid free cash flow conversion on adjusted EBITDA during the period. Moving on to our cost-focused strategic initiatives and the progress we made during the quarter on these fronts. With an aim to drive efficiencies and improve bottom-line results, earlier this year, we commenced the process of identifying significant overhead cost reductions, as well as optimizing our supply chain and fleet management systems. During Q2, we finalized our two-phase review of corporate and operating company overhead.

Century: Further, we tighten controls on CapEx spend and continue to focus on capital allocation.

Bill Fuhrman: Our focus has resulted in significantly less CapEx spend versus the prior year period. Together, these initiatives help drive solid free cash flow conversion on adjusted EBITDA during the period. Moving on to our cost-focused strategic initiatives and the progress we made during the quarter on these. With an aim to drive efficiencies and improve bottom-line results, earlier this year, we commenced the process of identifying significant overhead cost reductions as well as optimizing our supply chain and fleet management systems. During the second quarter, we finalized our two-phase review of corporate and operating company overhead.

Century: Our focus has resulted in significantly less CapEx spend versus the prior year period. Together, these initiatives helped drive solid free cash flow conversion on adjusted EBITDA during the period.

Bill Furman: Moving on to our cost-focused strategic initiatives and progress we made during the quarter on these fronts. With an aim to drive efficiencies and improve bottom line results, earlier this year, we commenced the process of identifying significant overhead cost reductions as well as optimizing our supply chain and fleet management systems. During the second quarter, we finalized our two-phase review of corporate and operating company overhead. In total, we identified approximately $229 million in annualized savings for 2025, split between non-revenue generating functions and activities at the corporate level and overhead interoperate. We've seen very strong buy-in from our leadership team.

Century: Moving on to our cost-focused strategic initiatives and the progress we made during the quarter on these fronts.

Century: With an aim to drive efficiencies and improve bottom line results, earlier this year we commenced the process of identifying significant overhead cost reductions as well as optimizing our supply chain and fleet management systems.

Century: During the second quarter, we finalized our two-phase review of corporate and operating company overhead.

Bill Fuhrman: In total, we identified approximately $229 million in annualized savings for 2025, split between non-revenue-generating functions and activities at the corporate level and overhead interoperability. We've seen very strong buy-in from our leadership. They are energized by our focus on streamlining Senturi's organizational structure and the efficiencies and accountability that are enabled by a structure where there is direct reporting of operating company presidents to the CEO and daily line of sight into and across our business.

Bill Fehrman: In total, we identified approximately $229 million in annualized savings for 2025, split between non-revenue generating functions and activities at the corporate level and overhead in our operating companies. We've seen very strong buy-in from our leadership team. They are energized by our focus on streamlining Centuri's organizational structure and the efficiencies and accountability that are enabled by a structure where there is direct reporting of operating company presidents to the CEO and daily line of sight into and across our businesses. We also made headway on our fleet and supply chain savings initiatives by leveraging our scale at the Centuri level to secure better contract pricing across the business. During the period, we negotiated 10 major supply chain contracts with another 5 contracts currently under renegotiation. This work resulted in contract discounts on average of approximately 10%.

Century: In total, we identified approximately $229 million in annualized savings for 2025, split between non-revenue generating functions and activities at the corporate level, and overhead in our operating companies.

Bill Furman: They are energized by our focus on streamlining centuries' organizational structure and the efficiencies and accountability that are enabled by a structure where there is direct reporting of operating company presidents to the CEO and daily ISI into and across our businesses. We also made headway on our fleet and supply chain savings initiatives by leveraging our skill at a century level to secure better contract pricing across the business. During the period, we negotiated 10 major supply chain contracts, with another five contracts currently under renegotiations. This work resulted in contract discounts, on average, of approximately 10%. The savings achieved today represent approximately 17% of the spend with our top 100 vendors and reflects only the beginning of this process as we work toward becoming a more capital-efficient organization.

Century: We've seen very strong buy-in from our leadership team.

Century: They are energized by our focus on streamlining Senturi's organizational structure and the efficiencies and accountability that are enabled by structure where there is direct reporting of operating company presidents to the CEO and daily line of sight into and across our businesses.

Bill Fuhrman: We also made headway on our fleet and supply chain savings initiatives by leveraging our skill at the Century level to secure better contract pricing across the business. During the period, we negotiated 10 major supply chain contracts, with another 5 contracts currently under renegotiation.

Century: We also made headway on our fleet and supply chain savings initiatives by leveraging our skill at the Century level to secure better contract pricing across the business.

Century: During the period, we negotiated 10 major supply chain contracts, with another 5 contracts currently under renegotiation. This work resulted in contract discounts on average of approximately 10%.

Bill Fuhrman: This work resulted in contract discounts of approximately 10%. The savings achieved today represent approximately 17% of the spend with our top 100 vendors and reflects only the beginning of this process as we work toward becoming a more capital efficient organization. Before turning the time over to Greg for more details on second quarter results, It's important to spend a few minutes discussing the leadership transition. As announced on June 26th, I will be stepping down as President and CEO of Century. My last day is Wednesday, July 31st.

Bill Fehrman: The savings achieved today represent approximately 17% of the spend with our top 100 vendors and reflects only the beginning of this process as we work toward becoming a more capital efficient organization. Before turning the time over to Greg for more details on Q2 results, it's important to spend a few minutes discussing the leadership transition. As announced on 26 June 2024, I will be stepping down as President and CEO of Centuri. My last day is Wednesday, 31 July 2024. I have enjoyed my time here tremendously. This is an incredible organization, and I'm proud of what we have achieved together. My decision to leave was a tough one, but ultimately reflects a once in a career type of opportunity to take on the chief executive role at one of the nation's largest publicly traded utilities.

Century: The savings achieved today represent approximately 17% of the spend with our top 100 vendors and reflects only the beginning of this process as we work toward becoming a more capital-efficient organization.

Bill Furman: Before turning the time over to Great for more details on second quarter results, it's important to spend a few minutes discussing the leadership transition. As announced on June 26th, I will be stepping down as president and CEO of Centuri. My last day is Wednesday, July 31st. I have enjoyed my time here tremendously. This is an incredible organization, and I'm proud of what we have achieved together. My decision to leave was a tough one, but ultimately reflects a one-centred career type of opportunity to take on the chief executive role at one of the nation's largest publicly traded utilities.

Century: Before turning the time over to Greg for more details...

Greg: on second quarter results. It's important to spend a few minutes discussing the leadership transition.

Speaker Change: As announced on June 26th, I will be stepping down as President and CEO of Century.

Bill Fuhrman: I have enjoyed my time here tremendously. This is an incredible organization, and I'm proud of what we have achieved together. My decision to leave was a tough one, but ultimately, it reflects a once-in-a-career opportunity to take on the chief executive role at one of the nation's largest publicly traded utilities. To be clear, I have no concerns with the company, the board, the management team, or the overall business strategy that will drive a very successful future. Century has a seamless transition plan in place, with Paul Caudel set to take over as interim president Paul is uniquely and expertly situated to step into this role at this time.

Speaker Change: My last day is Wednesday, July 31st. I have enjoyed my time here tremendously. This is an incredible organization, and I'm proud of what we have achieved together.

Speaker Change: My decision to leave was a tough one.

Speaker Change: but ultimately reflects a once-in-a-career type of opportunity to take on the chief executive role at one of the nation's largest publicly traded utilities.

Paul Cudill: To be clear, I have no concerns with the company, the board, management team, or overall business strategy that will drive a very successful future for the business. Centuri has a seamless transition plan in place, with Paul Cunnell set to take over as interim president and CEO later this week. Paul is uniquely and expertly situated to step into this role at this time. He is a highly experienced utility executive, having served previously as CEO of NV Energy, part of the Berkshire Hathaway family, among other roles. He is a prior Centuri Advisory Board member and was most recently a special advisor to me and an architect of the cost reduction and efficiency programs I just spoke about.

Bill Fehrman: To be clear, I have no concerns with the company, the board, management team, or overall business strategy that will drive a very successful future for the business. Centuri has a seamless transition plan in place with Paul Caudill set to take over as interim president and CEO later this week. Paul is uniquely and expertly situated to step into this role at this time. He is a highly experienced utility executive, having served previously as CEO of NV Energy, part of the Berkshire Hathaway family, among other roles. He is a prior Centuri advisory board member and was most recently a special advisor to me and an architect of the cost reduction and efficiency programs I just spoke about. Over to Paul now for a few words.

Speaker Change: To be clear, I have no concerns with the company, the board, management team, or overall business strategy that will drive a very successful future for the business.

Paul Cuddill: He is a highly experienced utility executive, having served previously as CEO of Envy Energy, part of the Berkshire Hathaway family, among other roles. He is a former Century Advisory Board member and was most recently a special advisor to me and an architect of the cost reduction and efficiency programs I just spoke about. Now, over to Paul now for a few words.

Paul Caudel: Century has a seamless transition plan in place with Paul Caudel set to take over as interim president and CEO later this week.

Speaker Change: Paul is uniquely and expertly situated to step into this role at this time.

Speaker Change: He is a highly experienced utility executive, having served previously as CEO of Envy Energy.

Speaker Change: part of the Berkshire Hathaway family, among other roles. He is a prior Century Advisory Board member and was most recently a special advisor to me and an architect of the cost reduction and efficiency programs I just spoke about. Over to Paul now for a few words.

Paul Cudill: Over to Paul now for a few words.

Paul Cudill: Thanks, Bill, and hello to all of you on the call today. I'm excited for the opportunity to lead Centuri forward after Bill steps away from the CEO role. As Bill alluded to, I have an in-depth understanding of this organization, having partnered closely with him to design and execute on the cost and efficiency focus strategic initiatives we are discussing today. I look forward to picking up where Bill left off, as there is more work to do. Particularly around the areas of capital efficiency. I'm also aware of the importance of strategically growing the business. I intend to spend a substantial amount of my time meeting with customers and our operating company leaders to find ways we can more broadly service those already in our portfolio, while at the same time making inroads with new customers and markets.

Paul Cuddill: Thanks, Bill, and hello to all of you on the call today. I'm excited for the opportunity to lead Century forward after Bill steps away from the CEO role. As Bill alluded to, I have an in-depth understanding of this organization having partnered closely with him to design and execute on the cost and efficiency focused strategic initiatives we are discussing today. I look forward to picking up where Bill left off as there is more work to do, particularly around the areas of capital efficiency.

Paul Caudill: Thanks, Bill, and hello to all of you on the call today. I'm excited for the opportunity to lead Centuri forward after Bill steps away from the CEO role. As Bill alluded to, I have an in-depth understanding of this organization, having partnered closely with him to design and execute on the cost and efficiency-focused strategic initiatives we are discussing today. I look forward to picking up where Bill left off as there is more work to do, particularly around the areas of capital efficiency. I'm also aware of the importance of strategically growing the business. I intend to spend a substantial amount of my time meeting with customers and our operating company leaders to find ways we can more broadly service those already in our portfolio, while at the same time making inroads with new customers and markets.

Paul Caudel: Thanks, Bill, and hello to all of you on the call today.

Paul Caudel: I'm excited for the opportunity to lead Century forward after Bill steps away from the CEO role.

Paul Caudel: As Bill alluded to, I have an in-depth understanding of this organization, having partnered closely with him to design and execute on the cost and efficiency focused strategic initiatives we are discussing today.

Speaker Change: I look forward to picking up where Bill left off as there is more work to do, particularly around the areas of capital efficiency.

Paul Cuddill: I'm also aware of the importance of strategically growing the business. I intend to spend a substantial amount of my time meeting with customers and our operating company leaders to find ways we can more broadly serve those already in our portfolio while at the same time making inroads with new customers and markets. I've made clear to the Board of Directors that I'm available to serve as Interim CEO as long as necessary, and I look forward to meeting with our analysts and shareholders once I'm officially in the city. Back over to you, Bill. Thanks, Paul.

Speaker Change: I'm also aware of the importance of strategically growing the business. I intend to spend a substantial amount of my time meeting with customers and our operating company leaders to find ways we can more broadly service those already in our portfolio, while at the same time making inroads with new customers and markets.

Paul Cudill: I've made clear to the board of directors that I'm available to service as interim CEO as long as necessary, and I look forward to meeting with our analysts and shareholders once I'm officially in the seat.

Paul Caudill: I've made clear to the board of directors that I'm available to serve as interim CEO as long as necessary, and I look forward to meeting with our analysts and shareholders once I'm officially in the seat. Back over to you, Bill.

Speaker Change: I've made clear to the Board of Directors that I am available to serve as Interim CEO as long as necessary, and I look forward to meeting with our analysts and shareholders once I'm officially in the seat.

Bill Furman: Back over to you, Bill.

Bill Furman: Thanks, Paul. I know the company will be in great hands under Paul's leadership.

Bill Fehrman: Thanks, Paul. I know the company will be in great hands under Paul's leadership. Looking ahead, the board of directors engaged a search firm in mid-July to identify the next permanent CEO. This will allow the company the benefit of time to find the optimal individual to take over the role while continuing to drive Centuri forward under our aforementioned business strategy. We're looking at both internal and external candidates, and while we can't provide a timeline on our expected decision, we are very encouraged by our early discussions. Further, I will continue to be involved with Centuri as a non-employee director, and I intend to support Paul in any way I can.

Bill Fuhrman: I know the company will be in great hands under Paul's leadership, and looking ahead, the board of directors engaged a search firm in mid-July to identify the next permanent CEO. This will allow the company the benefit of time to find the optimal individual to take over the role, while continuing to drive Century forward under our aforementioned business strategy. We are looking at both internal and external candidates, and while we can't provide a timeline for our expected decision, we are very encouraged by our early discussions.

Speaker Change: Thanks, Paul. I know the company will be in great hands under Paul's leadership.

Bill Furman: And looking ahead, the board of directors engage to search for him and visualize to identify the next permanent CEO. This will allow the company to benefit of time to find the optimal individual to take over the role. I'll continue my drive century forward under our aforementioned business strategy. We are looking at both internal and external candidates, and while we can't provide a timeline on our expected decision, we are very encouraged by our early discussions.

Speaker Change: Looking ahead, the Board of Directors engaged a search firm in mid-July to identify the next permanent CEO . This will allow the company the benefit of time to find the optimal individual to take over the role, while continuing to drive Century forward under our aforementioned business strategy.

Speaker Change: We are looking at both internal and external candidates, and while we can't provide a timeline on our expected decision, we are very encouraged by our early discussions.

Bill Furman: Further, I will continue to be involved with Centuri as an unemployed director, with the intent to support Paul in any way I can. I did not bring in any other outside senior leaders during my tenure, and we have not seen any departures of key personnel beyond the initial removal in January. The management layer is intended to enhance the CEO line of sight into the business. Rather, as part of improving deficiencies across the organization, we have made several notable strategic appointments to bolster our focus on strategic growth and sharpen our internal financial planning processes to improve profitability.

Bill Fuhrman: Furthermore, I will continue to be involved with Century as a non-employee director and intend to support Paul in any way I can. I did not bring in any other outside senior leaders during my tenure, and we have not seen any departures of key personnel beyond the initial removal in January of management layers intended to enhance the CEO's line of sight into the business.

Speaker Change: Further, I will continue to be involved with Century as a non-employee director and intend to support Paul in any way I can.

Bill Fehrman: I did not bring in any other outside senior leaders during my tenure, and we have not seen any departures of key personnel beyond the initial removal in January of management layers intended to enhance CEO line of sight into the business. Rather, as part of improving efficiencies across the organization, we have made several notable strategic appointments to bolster our focus on strategic growth and sharpen our internal financial planning processes to improve profitability. We are very excited about the impact these changes will have going forward. I'll return later in the call to talk about the bright future ahead for Centuri. First, over to Greg Izenstark, Centuri's CFO, to discuss our Q2 results. Greg.

Paul Caudel: I did not bring in any other outside senior leaders during my tenure and we have not seen any departures of key personnel beyond the initial removal in January of management layers intended to enhance CEO line of sight into the business.

Bill Fuhrman: Rather, as part of improving efficiencies across the organization, we have made several notable strategic appointments to bolster our focus on strategic growth and sharpen our internal financial planning processes to improve profitability. We are very excited about the impact these changes will have going forward. I'll return later in the call to talk about the bright future ahead for Century. First, I'm turning the call over to Greg Eisenstar, Century's CFO, to discuss our second quarter results. Thank you, Bill.

Paul Caudel: Rather, as part of improving efficiencies across the organization, we have made several notable strategic appointments to bolster our focus on strategic growth and sharpen our internal financial planning processes to improve profitability.

Bill Furman: We are very excited about the impact these changes will have going forward.

Bill Furman: I will return later in the call to talk about the bright future ahead for Centuri.

Paul Caudel: We are very excited about the impact these changes will have going forward.

Gregory Eisenstark: But first, over the grey eyes and start, Centuri is CEO followed to discuss our second quarter results.

Paul Caudel: I'll return later in the call to talk about the bright future ahead for Century.

Greg Eisenstark: But first, over to Greg Eisenstart, Centuri's CFO , to discuss our second quarter results. Greg.

Gregory Eisenstark: Thank you, Bill. This morning we reported the second quarter of 2024 consolidated revenue of $672.1 million, compared to $805.8 million in the second quarter of 2023. Consolidated gross profit was $60.5 million on a gross profit or a gross profit margin of 9%.

Greg Eisenstark: This morning we reported second quarter 2024 consolidated revenue of $672.1 million compared to $805.8 million in the second quarter of 2023. Consolidated gross profit was $60.5 million on a gross profit or a gross profit margin of 9% compared to gross profit of $90 million or a gross profit margin of 11.2% in the prior year quarter of 2023. On a GAAP basis, net income in the second quarter came in at $11.7 million, or a diluted earnings per share of $0.14, down from $17.1 million, or a diluted earnings per share of $0.24, in the prior year period.

Greg Izenstark: Thank you, Bill. This morning, we reported Q2 2024 consolidated revenue of $672.1 million, compared to $805.8 million in Q2 2023. Consolidated gross profit was $60.5 million on a gross profit or a gross profit margin of 9%, compared to gross profit of $90 million or a gross profit margin of 11.2% in the prior year quarter of 2023. On a GAAP basis, net income in the second quarter came in at $11.7 million or diluted earnings per share of $0.14, down from $17.1 million or diluted earnings per share of $0.24 in the prior year period.

Greg Eisenstark: Thank you, Bill. This morning, we reported second quarter 2024 consolidated revenue of $672.1 million compared to $805.8 million in the second quarter of 2023.

Greg Eisenstark: Consolidated gross profit was $60.5 million on a gross profit or a gross profit margin of 9% compared to gross profit of $90 million or a gross profit margin of 11.2% in the prior year quarter of 2023.

Gregory Eisenstark: Compared to gross profit of $90 million or a gross profit margin of 11.2% in the prior year quarter of 2023. On a gap basis, net income in the second quarter came in at $11.7 million, or diluted earnings per share of $0.14 cents. Down from $17.1 million or diluted earnings per share of $24 cents in the prior year period. Total company adjusted EBITDA, a non-GAAP figure in the second quarter of 2024, was $68.6 million, down 26.1% from the prior year quarter. Adjusted EBITDA margin was 10.2% for the quarter. While down from the prior year quarter is 11.5%, it remains above the second quarter adjusted EBITDA margins over the last three years, which averaged 10.1%.

Greg Eisenstark: On a gap basis, net income in the second quarter came in at $11.7 million, or a diluted earnings-per-share of $0.14, down from $17.1 million, or a diluted earnings-per-share of $0.24 in the prior year period.

Greg Eisenstark: Total company adjusted EBITDA, a non-GAAP figure, in the second quarter of 2024 was $68.6 million, down 26.1% from the prior year quarter. Adjusted EBITDA margin was 10.2% for the quarter. While down from the prior year quarter's 11.5%, it remains above the second quarter adjusted even margins over the last three years, which averaged 10.1%, and points to higher profitability ahead as revenue grows. Non-GAAP adjusted net income in the second quarter came in at $17 million, or an adjusted diluted earnings per share of $0.20, down from $25 million, or an adjusted diluted earnings per share of $0.35 in the prior year period.

Greg Izenstark: Total company adjusted EBITDA, a non-GAAP figure in Q2 2024, was $68.6 million, down 26.1% from the prior-year quarter. Adjusted EBITDA margin was 10.2% for the quarter. While down from the prior-year quarter's 11.5%, it remains above the Q2 adjusted EBITDA margins over the last three years, which averaged 10.1%, and points to higher profitability ahead as revenue grows. Non-GAAP adjusted net income in Q2 came in at $17 million or an adjusted diluted EPS of $0.20. Down from $25 million or an adjusted diluted EPS of $0.35 in the prior-year period. Before turning to segment results, I'll highlight our storm restoration efforts.

Greg Eisenstark: Total company adjusted EBITDA, a non-GAAP figure, in the second quarter of 2024 was $68.6 million, down 26.1% from the prior year quarter.

Greg Eisenstark: Adjusted EBITDA margin was 10.2% for the quarter.

Greg Eisenstark: While down from the prior year quarter's 11.5%, it remains above the second quarter adjusted even at margins over the last three years, which averaged 10.1%.

Gregory Eisenstark: End points to higher profitability ahead as revenue grows. Non-GAAP adjusted net income in the second quarter came in at $17 million, or an adjusted diluted earnings per share of 20 cents. Down from $25 million or an adjusted diluted earnings per share of 35 cents in the prior year period.

Greg Eisenstark: and points to higher profitability ahead as revenue grows.

Greg Eisenstark: non-GAAP adjusted net income in the second quarter came in at $17 million, or an adjusted diluted earnings per share of $0.20, down from $25 million, or an adjusted diluted earnings per share of $0.35 in the prior year period.

Gregory Eisenstark: Before turning to segment results, I'll highlight our storm restoration efforts. In the first half of 2024, we dispatched more than 2,000 employees to respond following severe weather events. This generated $45.6 million in revenues in the first half of 2024. Subsequent to the end of the second quarter, Hurricane Barrel made landfall in Texas as a category one storm in the second week of July. In a coordinated response across our businesses, we mobilized more than 650 union and non-union employees to address the estimated 2.7 million people that were left without power in the wake of the storm.

Greg Eisenstark: Before turning to segment results, I'll highlight our storm restoration efforts. In the first half of 2024, we dispatched more than 2,000 employees to respond following severe weather events. This generated $45.6 million in revenues. Subsequent to the end of the second quarter, Hurricane Beryl made landfall in Texas as a Category 1 storm in the second week of July.

Speaker Change: Before turning to segment results, I'll highlight our storm restoration efforts.

Greg Izenstark: In H1 2024, we dispatched more than 2,000 employees to respond following severe weather events. This generated $45.6 million in revenues in H1 2024. Subsequent to the end of Q2, Hurricane Beryl made landfall in Texas as a Category 1 storm in the second week of July. In a coordinated response across our businesses, we mobilized more than 650 union and non-union employees to address the estimated 2.7 million people that were left without power in the wake of the storm. We have generated an estimated $22 million in storm restoration revenues through the third week in July. Q3 is the heart of the hurricane season and therefore, typically when we have greatest storm opportunity.

Speaker Change: In the first half of 2024, we dispatched more than 2,000 employees to respond following severe weather events. This generated $45.6 million in revenues in the first half of 2024.

Speaker Change: Subsequent to the end of the second quarter, Hurricane Beryl made landfall in Texas as a Category 1 storm in the second week of July .

Greg Eisenstark: In a coordinated response across our businesses, we mobilized more than 650 union and non-union employees to address the estimated 2.7 million people that were left without power in the wake of the storm. We have generated an estimated $22 million in storm restoration revenues through the third week of July. The third quarter is the heart of the hurricane season, and therefore typically when we have the greatest storm opportunities. With Beryl, we have already performed considerable work while it is still early in the hurricane season. Moving on to our reportable segment, revenue from our U.S. gas segment totaled $340.7 million, reflecting a year-over-year decrease of 13.1 percent.

Speaker Change: In a coordinated response across our businesses, we mobilized more than 650 union and non-union employees to address the estimated 2.7 million people that were left without power in the wake of the storm.

Gregory Eisenstark: We have generated an estimated $22 million in storm restoration revenues through the third week in July. The third quarter is the heart of the hurricane season and therefore typically when we have greatest storm opportunity. With barrel, we have already performed considerable work while it is still early during the hurricane season.

Speaker Change: We have generated an estimated $22 million in storm restoration revenues through the third week in July .

Speaker Change: The third quarter is the heart of the hurricane season and therefore typically when we have greatest storm opportunity.

Greg Izenstark: With Beryl, we have already performed considerable work while it is still early during the hurricane season. Moving on to our reportable segments. Revenue from our US Gas segment totaled $340.7 million, reflecting a year-over-year decrease of 13.1%. This was largely due to delayed or unfavorable regulatory decisions faced by key customers across multiple jurisdictions, which slowed or paused their spending plans and thus contributed to a reduction in net volumes under existing customer MSAs. This segment also benefited last year from a large natural gas bid project that has since been completed. Gross profit margin decreased to 7.4% in the current period, from 11.2% in the same period from the prior year. Again, negatively impacted by these revenue factors and one-time severance costs in the current quarter.

Speaker Change: With Beryl, we have already performed considerable work while it is still early during the hurricane season.

Gregory Eisenstark: Moving on to our reportable segments. Revenue from our U.S. Gas segment totaled $340.7 billion, reflecting a year-over-year decrease of 13.1%. This was largely due to delayed or unfavorable regulatory decisions based by key customers across multiple jurisdictions, which slowed or paused their spending plans and thus contributed to a reduction in net volumes under existing customer MSAs. This segment also benefited last year from a large natural gas bid project that has since been completed. Gross profit margin decreased to 7.4% in the current period from 11.2% in the same period from the prior year, again negatively impacted by these revenue factors and one-time seventh costs in the current quarter.

Speaker Change: Moving on to our reportable segments.

Speaker Change: Revenue from our U.S. gas segment totaled $340.7 million, reflecting a year-over-year decrease of 13.1 percent.

Greg Eisenstark: This was largely due to delayed or unfavorable regulatory decisions faced by key customers across multiple jurisdictions, which slowed or paused their spending plans and thus contributed to a reduction in net volumes under existing customer MSAs. This segment also benefited last year from a large natural gas bid project that has since been completed. Gross Profit Margin decreased to 7.4% in the current period from 11.2% in the same period of the prior year, again negatively impacted by these revenue factors and 1x7s costs in the current quarter.

Speaker Change: This was largely due to delayed or unfavorable regulatory decisions faced by key customers across multiple jurisdictions, which slowed or paused their spending plans and thus contributed to a reduction in net volumes under existing customer MSAs.

Speaker Change: This segment also benefited last year from a large natural gas bid project that has since been completed.

Speaker Change: Gross profit margin decreased to 7.4% in the current period from 11.2% in the same period from the prior year, again negatively impacted by these revenue factors and one-time severance costs in the current quarter.

Gregory Eisenstark: Revenue from our Canadian gas segment totaled $41 million, reflecting a decrease of 14.8% compared to the second quarter of 2023. This decline was driven by a reduction in net volumes under existing MSAs. Second gross profit margin increased to 22.8% for the second quarter, primarily due to a customer contract renewal in late 2023, and favorable changes in the mix of work. In our union electric segment, revenue was $164.2 million, a decline of 24.8% year-over-year. This largely reflects the completion of Orsted's offshore wind project in New Jersey, which was canceled in October 2023. Gross profit margin in the union electric segment decreased modestly to 7.4% in the second quarter of 2024, as compared to 7.8% in the second quarter of 2023.

Greg Eisenstark: Revenue from our Canadian gas segment totaled $41 million, reflecting a decrease of 14.8% compared to the second quarter of 2023. This decline was driven by a reduction in net volumes under existing MSAs. However, the segment gross profit margin increased to 22.8% for the second quarter, primarily due to a customer contract renewal in late 2023 and favorable changes in the mix of work. In our Union Electric segment, revenue was $164.2 million, a decline of 24.8% year-over-year.

Greg Izenstark: Revenue from our Canadian Gas Segment totaled $41 million, reflecting a decrease of 14.8% compared to Q2 2023. This decline was driven by a reduction in net volumes under existing MSAs. Segment gross profit margin increased to 22.8% for the second quarter, primarily due to a customer contract renewal in late 2023 and favorable changes in the mix of work. In our Union Electric Segment, revenue was $164.2 million, a decline of 24.8% year over year. This largely reflects the completion of Ørsted's offshore wind project in New Jersey, which was canceled in October 2023.

Speaker Change: Revenue from our Canadian gas segment totaled $41 million, reflecting a decrease of 14.8% compared to the second quarter of 2023. This decline was driven by a reduction in net volumes under existing MSAs.

Speaker Change: Segment Gross Profit Margin increased to 22.8% for the second quarter, primarily due to a customer contract renewal in late 2023 and favorable changes in the mix of work.

Speaker Change: In our Union Electric segment, revenue was $164.2 million, a decline of 24.8% year-over-year. This largely reflects the completion of Orsted's offshore wind project in New Jersey, which was cancelled in October 2023.

Greg Eisenstark: This largely reflects the completion of Orsted's offshore wind project in New Jersey, which was cancelled in October 2023. Gross profit margin in the Union Electric segment decreased modestly to 7.4% in the second quarter of 2024, as compared to 7.8% in the second quarter of 2023. This segment is a little more bid-focused than other segments, which enables better margin preservation, combined with the benefits of certain cost reduction measures taken earlier this year.

Greg Izenstark: Gross profit margin in the Union Electric segment decreased modestly to 7.4% in Q2 2024, as compared to 7.8% in Q2 2023. This segment is a little more bid-focused than other segments, which enables better margin preservation, combined with the benefits of certain cost reduction means taken earlier this year. Non-union Electric segment revenue totaled $120.5 million, a 9.8% year-over-year decline. This decrease was primarily driven by a reduction in net volumes under existing customer MSAs, caused in part by delays in rate case decisions impacting certain customers. Partly offsetting these declines was a modest step-up in transmission work.

Speaker Change: Gross profit margin in the Union Electric segment decreased modestly to 7.4% in the second quarter of 2024, as compared to 7.8% in the second quarter of 2023.

Gregory Eisenstark: This segment is a little more big-focused than other segments, which enables better margin preservation, combined with the benefits of certain cost reduction means taken earlier this year. Non-union electric segment revenue totaled $120.5 million, a 9.8% year-over-year decline. This decrease was primarily driven by a reduction in net volumes under existing MSAs. Existing customer MSAs caused in part by delays in rate case decisions impacting certain customers. Partly offsetting these declines was a modest step up in transmission work. The segment gross profit margin decreased to 13.5% in the current period, versus 15.4% in the same period from the prior year.

Speaker Change: This segment is a little more bid focused than other segments, which enables better margin preservation, combined with the benefits of certain cost reduction means taken earlier this year.

Greg Eisenstark: Non-Union Electric Segment revenue totaled $120.5 million, a 9.8% year-over-year decline. This decrease was primarily driven by a reduction in net volumes under the existing MSA. Existing customer MSAs are caused in part by delays in rate case decisions impacting certain customers. Partly offsetting these declines was a modest step up in transmission work. Segment Gross Profit Margin decreased to 13.5% in the current period versus 15.4% in the same period of the prior year.

Speaker Change: Non-Union Electric Segment

Speaker Change: Revenue totaled $120.5 million, a 9.8% year-over-year decline. This decrease was primarily driven by a reduction in net volumes under existing MSA.

Speaker Change: Existing customer MSAs caused in part by delays in rate case decisions impacting certain customers.

Speaker Change: Partly offsetting these declines was a modest step up in transmission work.

Greg Izenstark: Segment gross profit margin decreased to 13.5% in the current period, versus 15.4% in the same period from the prior year. Profitability was negatively affected by lower work hours for existing crews, which contributed to underutilization of fixed costs. Resulting from our focus on capital discipline, we reported net capital expenditures during the quarter of $20 million, compared to $29 million in the prior year quarter. This drove a healthy conversion of adjusted EBITDA to free cash flow of 71%. Moving to our balance sheet highlights. We closed our IPO on 22 April 2024, issuing 16.9 million shares of common stock in the process, inclusive of a 2.6 million concurrent private placement. Net proceeds after factoring in transaction fees was $328 million, which was used to reduce outstanding debt.

Speaker Change: Segment Gross Profit Margin decreased to 13.5% in the current period versus 15.4% in the same period from the prior year.

Greg Eisenstark: Profitability was negatively affected by lower work hours for existing crews, which contributed to underutilization of fixed costs. Resulting from our focus on capital discipline, we reported net capital expenditures during the quarter of $20 million, compared to $29 million in the prior year quarter. This drove a healthy conversion of adjusted EBITDA to pre-cash flow of 71%. Moving on to our Balance Sheet Highlights We closed our IPO on April 22nd, issuing 16.9 million shares of common stock in the process, inclusive of a 2.6 million concurrent private placement.

Gregory Eisenstark: Profitability was negatively affected by lower work hours for existing crews, which contributed to underutilization of six costs.

Speaker Change: Profitability was negatively affected by lower work hours for existing crews which contributed to underutilization of fixed costs.

Gregory Eisenstark: Resulting from our focus on capital discipline, we reported net capital expenditures during the quarter of $20 million, compared to $29 million in the prior year quarter. This drove a healthy conversion of adjusted EBITDA to free cash flow of 71%.

Speaker Change: Resulting from our focus on capital discipline, we reported net capital expenditures during the quarter of $20 million, compared to $29 million in the prior year quarter.

Speaker Change: This drove a healthy conversion of adjusted EBITDA to free cash flow of 71%.

Gregory Eisenstark: Moving to our balance sheet highlights, we closed our IPO on April 22nd, issuing 16.9 million shares of common stock in the process, inclusive of a 2.6 million concurrent private place. Next proceeds after factoring in transaction fees was $328 million, which was used to reduce outstanding debt. Prior to the IPO, we also used $92 million in cash to acquire the remaining 10% outstanding non-controlling interest in MindTek Services. Beginning with the second quarter, our financial statements reflect 100% of MindTek's results. On a 4.38 times, our leverage is largely in line with the same period last year, and down from the first quarter of 2024.

Greg Eisenstark: Next, proceeds after factoring in transaction fees were $328 million, which was used to reduce outstanding debt. Prior to the IPO, we also used $92 million in cash to acquire the remaining 10% outstanding non-controlling interest in LineTech services. Beginning with the second quarter, our financial statements reflect 100% of LineTech's results.

Speaker Change: Moving to our balance sheet highlights.

Speaker Change: We closed our IPO on April 22nd issuing 16.9 million shares of common stock in the process inclusive of a 2.6 million concurrent private placement

Speaker Change: Net proceeds after factoring in transaction fees was $328 million, which was used to reduce outstanding debt.

Greg Izenstark: Prior to the IPO, we also used $92 million in cash to acquire the remaining 10% outstanding non-controlling interest in Linetec Services. Beginning with Q2, our financial statements reflect 100% of Linetec's results. On a trailing 12-month basis, our net debt to adjusted EBITDA ratio was 4.38x. Our leverage is largely in line with the same period last year and down from Q1 2024. We ended the quarter with $31 million in cash and cash equivalents on the balance sheet and remain focused on delevering the business to be in line with peers. Turning now to our outlook.

Speaker Change: Prior to the IPO, we also used $92 million in cash to acquire the remaining 10% outstanding non-controlling interest in LineTech services.

Speaker Change: Beginning with the second quarter, our financial statements reflect 100% of Line Tech's results.

Greg Eisenstark: On a trailing 12-month basis, our net debt-to-adjusted EBITDA ratio was 4.38 times. Our leverage is largely in line with the same period last year and down from the first quarter of 2024. We ended the quarter with $31 million in cash and cash equivalents on the balance sheet and remain focused on de-levering the business to be in line with peers. Turning now to our outlook. Today we introduced a full year 2024 outlook for revenue of $2.5 to $2.7 billion, adjusted even a margin percentage of 9% to 9.6%, and net capital expenditures of $90 to $99 million. At the midpoint of our guidance, we expect our year-end leverage to be in the mid-three. With that, let me turn it back to Bill.

Speaker Change: On a trailing 12-month basis, our net debt-to-adjusted EBITDA ratio was 4.38 times.

Speaker Change: Our leverage is largely in line with the same period last year and down from the first quarter of 2024.

Gregory Eisenstark: We ended the quarter with $31 million in cash and cash equivalents on the balance sheet and remained focused on delivering the business to be in line with peers.

Speaker Change: We ended the quarter with $31 million in cash and cash equivalents on the balance sheet and remain focused on delevering the business to be in line with peers.

Gregory Eisenstark: Turning now to our outlook, today we introduced a full year of 2024 outlook for revenue of $2.5 to $2.7 billion, adjusted even a margin percentage of 9% to 9.6%, and next capital expenditures of $90 to $99 million. At the midpoint of our guidance, we expect our year-end leverage to be in the mid-three.

Greg Izenstark: Today, we introduced a full year 2024 outlook for revenue of $2.5 to 2.7 billion, adjusted EBITDA margin percentage of 9% to 9.6%, and net capital expenditures of 90 to 99 million. At the midpoint of our guidance, we expect our year-end leverage to be in the mid-thirties. With that, let me turn it back to Bill.

Speaker Change: Turning now to our Outlook. Today we introduced a full year 2024 Outlook for revenue of 2.5 to 2.7 billion dollars.

Speaker Change: adjusted even a margin percentage of 9% to 9.6% and net capital expenditures of 90 to 99 million dollars.

Speaker Change: At the midpoint of our guidance, we expect our year-end leverage to be in the mid-3's.

Bill Furman: With that, let me turn it back to Bill.

Bill Furman: Thanks, Rick. Fundamentally, the dynamics that drive our business have not changed. Utilities deliver growth by increasing their spend to build, maintain, and repair the infrastructure used to produce and deliver energy to their customers.

Bill Fuhrman: Thanks, Greg. Fundamentally, the dynamics that drive our business have not changed. Utilities deliver growth by increasing their spend to build, maintain, and repair the infrastructure used to produce and deliver energy to their customers.

Bill Fehrman: Thanks, Greg. Fundamentally, the dynamics that drive our business have not changed. Utilities deliver growth by increasing their spend to build, maintain, and repair the infrastructure used to produce and deliver energy to their customers. Volatility from quarter to quarter is a characteristic we face with our MSA model given there are no guaranteed volumes, and unfortunately, it was more pronounced to the downside in Q2. That said, the strong secular tailwinds we have previously discussed are very much in place, and we look forward to some normalization in our customer spending going forward. As we all know, today's North American infrastructure needs are immense, and they only grow as our aging infrastructure gets even older. Load demand growth from emergent technologies picks up momentum, and as clean technology deployment continues to pick up steam and require grid connectivity.

Speaker Change: With that, let me turn it back to Bill. Thanks, Greg. Fundamentally, the dynamics that drive our business have not changed. Utilities deliver growth by increasing their spend to build, maintain, and repair the infrastructure used to produce and deliver energy to their customers.

Bill Furman: Volatility from quarter to quarter is the characteristic we face with our MSA model, given there are no guaranteed volumes, and unfortunately, it was more pronounced to the downside in the second quarter. That said, the strong secular tailwinds we have previously discussed are very much in place, and we have forwarded some normalization in our customer spending going forward. As we all know, today's North American infrastructure needs are immense, and they only grow as our aging infrastructure gets even older. Low demand growth from emergent technologies picks up momentum, and as clean technology deployment continues to pick up steam and require grid connectivity.

Bill Fuhrman: Volatility from quarter to quarter is a characteristic we face with our MSA model given there are no guaranteed volumes, and unfortunately, it was more pronounced to the downside in the second quarter. That said, the strong secular tailwinds we have previously discussed are very much in place, and we look forward to some normalization in our customer spending going forward. As we all know, today's North American infrastructure needs are immense, and they only grow as our aging infrastructure gets even older.

Speaker Change: Volatility from quarter to quarter is a characteristic we face with our MSA model given there are no guaranteed volumes, and unfortunately it was more pronounced to the downside in the second quarter.

Speaker Change: That said, the strong secular tailwinds we have previously discussed are very much in place, and we look forward to some normalization in our customer spending going forward.

Speaker Change: As we all know, today's North American infrastructure needs are immense, and they only grow as our aging infrastructure gets even older. Low-demand growth from emergent technologies picks up momentum, and as clean technology deployment continues to pick up steam, it will require grid connectivity.

Bill Fuhrman: Low-demand growth from emergent technologies picks up momentum, and as clean technology deployment continues to pick up steam and require grid connectivity, utilities continue to plan billions of dollars in CapEx spend to replace natural gas in the electric infrastructure. We see more than half a century of work to replace the existing miles of natural gas that are more than 50 years old across the United States. Similarly, U.S. electric transmission lines are an average of 50 years old.

Bill Furman: Utilities continue to plan billions of dollars in capex spend to replace natural gas and electric infrastructure. We see more than half a century of work replacing existing miles of natural gas mains that are more than 50 years old across the United States. Similarly, U.S. Electric transmission lines are an average 50 years old. Paired with growing offshore wind capacity and demand driven by load from data centers and advanced manufacturing, we plan to be a long-term partner to our utility customers for many years to come.

Bill Fehrman: Utilities continue to plan billions of dollars in CapEx spend to replace natural gas and electric infrastructure. We see more than half a century of work to replace the existing miles of natural gas mains that are more than 50 years old across the United States. Similarly, US electric transmission lines are on average 50 years old. Paired with growing offshore wind capacity and demand driven by load from data centers and advanced manufacturing, we plan to be a long-term partner to our utility customers for many years to come. Beyond the macro, there are several critical strategic initiatives in place that we expect to drive growth and profitability for Centuri. We have spoken in the past about senior leadership-driven growth with core customers and a need to grow wallet share with toehold customers while driving revenue synergies from cross-selling.

Speaker Change: Utilities continue to plant billions of dollars in CapEx spend to replace natural gas and electric infrastructure. We see more than half a century of work to replace the existing miles of natural gas mains.

Speaker Change: that are more than 50 years old across the United States. Similarly, U.S. electric transmission lines are on average 50 years old.

Bill Fuhrman: Paired with growing offshore wind capacity and demand driven by load from data centers and advanced manufacturing, we plan to be a long-term partner to our utility customers for many years to come. Beyond the macro, there are several critical strategic initiatives in place that we expect to drive growth and profitability for centuries. We have spoken in the past about senior leadership-driven growth with core customers and a need to grow wallet share with toehold customers while driving revenue synergies from cross-selling.

Speaker Change: Paired with growing offshore wind capacity and demand driven by load from data centers and advanced manufacturing, we plan to be a long-term partner to our utility customers for many years to come.

Bill Furman: Beyond the macro, there are several critical strategic initiatives in place that we expect to drive growth and profitability for Century. We have spoken in the past about senior leadership driven growth, with core customers in a need to grow wallet share with total customers while driving revenue synergies from cross-selling. We are also taking a focus and coordinate approach across our businesses to pursue opportunities in adjacent high-growth service lines. We have made great strides in identifying cost savings and will continue to implement our plan thoughtfully to deliver the savings initiatives discussed today. Our progress on supply chain and fleet optimization savings and implementation is in the earlier innings, and we will continue to report updates in future quarters.

Speaker Change: Beyond the macro, there are several critical strategic initiatives in place that we expect to drive growth and profitability for Century.

Speaker Change: We have spoken in the past about senior leadership driven growth with core customers and a need to grow wallet share with toehold customers while driving revenue synergies from cross-selling. We are also taking a focused and coordinated approach across our businesses to pursue opportunities in adjacent high growth service lines.

Bill Fuhrman: We are also taking a focused and coordinated approach across our businesses to pursue opportunities in adjacent high-growth service lines. We have made great strides in identifying cost savings and will continue to implement our plan thoughtfully to deliver the savings initiatives discussed today. Our progress on supply chain and fleet optimization savings and implementation is in the early innings, and we will continue to report updates in future quarters. This work will not stop.

Bill Fehrman: We are also taking a focused and coordinated approach across our businesses to pursue opportunities in adjacent high-growth service lines. We have made great strides in identifying cost savings, and we'll continue to implement our plan thoughtfully to deliver the savings initiatives discussed today. Our progress on supply chain and fleet optimization savings and implementation is in the earlier innings, and we will continue to report updates in future quarters. This work will not stop. Our focus on cost, both operating and capital, will continue to support margins that are broadly consistent with historical trends and drive healthy free cash flow generation. Although longer term, we'll pursue accretive bolt-on M&A, our near-term focus will be on reducing debt and bringing our leverage more in line with our peers. We thank you for your time today and will now turn the call over to our operator for Q&A.

Speaker Change: We have made great strides in identifying cost savings and will continue to implement our plan thoughtfully to deliver the savings initiatives discussed today.

Speaker Change: Our progress on supply chain and fleet optimization savings and implementation is in the earlier innings, and we will continue to report updates in future quarters. This work will not stop.

Bill Furman: This work will not stop. Our focus on cost, both operating and capital, will continue to support margins that are broadly consistent with historical trends and drive healthy free cash flow generation.

Bill Fuhrman: Our focus on cost, both operating and capital, will continue to support margins that are broadly consistent with historical trends and drive healthy free cash flow generation. Although, longer term, we'll pursue a creative bolt-on M&A, our near-term focus will be on reducing debt and bringing our leverage more in line with our peers. We thank you for your time today and will now turn the call over to our operator for Q&A. Thank you, Mr. Fuhrman. Ladies and gentlemen, at this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2.

Speaker Change: Our focus on cost, both operating and capital, will continue to support margins that are broadly consistent with historical trends and drive healthy free cash flow generation.

Bill Furman: All the longer-term will pursue a creative, multi-MNA. Our near-term focus will be on reducing debt and bringing our leverage more in line with our peers.

Speaker Change: Although longer term we'll pursue a creative bolt-on M&A, our near-term focus will be on reducing debt and bringing our leverage more in line with our peers. We thank you for your time today and will now turn the call over to our operator for Q&A.

Operator: We thank you for the time today and will now turn the call over to our operator for Q&A.

Operator: Thank you, Mr. Herman. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. We ask that you please limit yourself to one question and one follow-up.

Operator: Thank you, Mr. Fehrman. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. We ask that you please limit yourself to one question and one follow-up. We'll go first today to Steven Fisher with UBS.

Speaker Change: Thank you Mr. Berman. Ladies and gentlemen at this time if you would like to ask a question please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. We ask that you please limit yourself to one question and one follow up. We'll go first today to Stephen Fisher with UBS.

Operator: We ask that you please limit yourself to one question and one follow-up. We'll go first today to Stephen Fisher with UBS. Thanks. Good morning. Just want to understand a little bit about these MSA dynamics, if I could, please. And it seems like there was a further incremental step down in that MSA activity. Can you just talk about what really was the driver of that? Was it sort of spreading to new states or getting worse in the states that were problematic over the last couple of quarters?

Steven Fisher: We'll go first today to Steven Fisher with UBS.

Steven Fisher: Thanks.

Steven Fisher: Thanks. Good morning. Just wanna understand a little bit about these MSA dynamics, if I could, please. It seems like there was further incremental step-down in that MSA activity. Could you just talk about, you know, what really was the driver of that? Was it sort of spreading to new states or getting worse in the states that were problematic over the last couple of quarters? You know, what was really the incremental concern here by the regulators? It's still about inflation. Then what do you think the key drivers are of getting this dynamic to be better for you?

Bill Furman: Good morning. Just wanted to understand a little bit about these MSA dynamics, if I could please. It seems like there was a further incremental step down in that MSA activity. Could you just talk about what really was the driver of that? Was it sort of spreading to new states or getting worse in the states that were problematic over the last couple of quarters? What was really the incremental concern here by the regulators that still about inflation? Then what do you think the key drivers are of getting this dynamic to be better for you?

Stephen Fisher: Thanks, good morning, just want to understand a little bit about these MSA dynamics if I could please. It seems like there was...

Speaker Change: further incremental step down in that MSA activity.

Stephen Fisher: Can you just talk about, you know, what really was the driver of that?

Speaker Change: sort of spreading to new states or getting worse in the states that were problematic over the last couple of quarters.

Speaker Change: What was really the incremental concern here by the regulators? It's still about inflation. What do you think the key drivers are of getting this dynamic to be better for you?

Bill Furman: Sure. Well, thank you, Steven.

Operator: What was really the incremental concern here by the regulators that's still about inflation? What do you think the key drivers are of getting this dynamic to be better for you? Sure. Well, thank you, Stephen. Good morning.

Bill Fehrman: Sure. Well, thank you, Steven, and good morning. Good to hear from you. Well, as we reported during H1 of the year, customers really have significantly underspent relative to the expectations, particularly the expectations that were communicated to us, during Q1, which seemed to change as we moved into Q2. There's a very strong broad base of caution within our customers, and there's very clear regulatory challenges in certain jurisdictions, particularly Illinois, California, and Maryland. For example, in Q2, we had a customer cancel a $30 million project, and obviously, that had an important impact on our overall results.

Bill Furman: Good morning. Good to hear from you. Well, as we reported during the first half of the year, customers really have significantly underspent relative to the expectations. Protector was the expectations that were communicated to us during the first quarter, which seemed to change as we moved into the second quarter. There's a very strong broad base of caution with inter-customers, and there's very clear regulatory challenges in certain jurisdictions, particularly Illinois, California, and Maryland. For example, in the second quarter, we had a customer council, a $30 million project, and obviously that had an important impact on our overall results.

Speaker Change: Sure. Well, thank you, Stephen. Good morning. Good to hear from you. Well, as we reported during the first half of the year, customers really have significantly underspent relative to the expectations.

Bill Fuhrman: Well, as we reported during the first half of the year, customers really significantly underspent relative to the expectations, particularly the expectations that were communicated to us during the first quarter, which seemed to change as we moved into the second quarter. There's a very strong broad base of caution within our customers, and there are very clear regulatory challenges in certain jurisdictions, particularly Illinois, California, and Maryland. For example, in the second quarter, we had a customer counsel a $30 million project, and obviously that had an important impact on our overall results.

Speaker Change: particularly the expectations that were communicated to us.

Speaker Change: during the first quarter, which seemed to change as we moved into the second quarter.

Speaker Change: There's a very strong broad base of caution within our customers, and there's very clear regulatory challenges in certain jurisdictions, particularly Illinois, California, and Maryland.

Speaker Change: For example, in the second quarter, we had a customer cancel a $30 million project.

Speaker Change: and obviously that had an important impact on our overall results.

Bill Furman: Now, we do anticipate an increase in spending in the medium, the longer term, which will all store the false sets to shortfall in the first half of the year, through communication with our customers. An anticipated lower interest rate environment should help with reducing the overall customer caution. And we clearly expect our results over time to evidence the strategic initiatives that we have in place and our growth. And so we're confident in our second half outlook. That's informed in part by a series of conversations that we've had with our customers. And of note, our outlook doesn't assume any significant changes in the macro environment, new business opportunities, or anything beyond the savings that we've already discussed in this call.

Bill Fuhrman: Now we do anticipate an increase in spending in the medium to longer term, which will offset the shortfall in the first half of the year. Through communication with our customers, an anticipated lower interest rate environment should help with reducing overall customer caution.

Bill Fehrman: Now, we do anticipate an increase in spending in the medium to longer term, which will also offset the shortfall in the H1 of the year, through communication with our customers. An anticipated lower interest rate environment should help with reducing the overall customer caution. We clearly expect our results over time to evidence the strategic initiatives that we have in place and our growth. You know, we're confident in our H2 outlook. That's informed in part by a series of conversations that we've had with our customers. Of note, our outlook doesn't assume any significant changes in the macro environment, new business opportunities or anything beyond the savings that we've already discussed in this call.

Speaker Change: Now, we do anticipate an increase in spending in the medium to longer term, which will also offset the shortfall in the first half of the year through communication with our customers.

Speaker Change: An anticipated lower interest rate environment should help with reducing the overall customer caution. And we clearly expect our results over time to evidence.

Bill Fuhrman: We clearly expect our results over time to demonstrate the strategic initiatives that we have in place and our growth. And so, we're confident in our second half outlook, which is informed in part by a series of conversations that we've had with our customers. And of note, our outlook doesn't assume any significant changes in the macro environment, new business opportunities, or anything beyond the savings that we've already discussed in this call. And so, overall, it really is a point of caution with customers, and for us, with Illinois, California, and Maryland being very key states for us, having regulatory challenges there is very significant for us.

Bill Fuhrman: But we see those beginning to soften moving into the second half of the year. Thanks, Bill. And just to follow up on your commentary on the second half of the year, just to understand sort of the assumptions and the risk going forward, can you just give us maybe what you think the cadence of Q3 versus Q4 would be, perhaps from an EBITDA perspective? I assume Q3 is generally going to be higher, but do you need to kind of win any more particular out there?

Speaker Change: the strategic initiatives that we have in place and in our growth. And so, you know, we're confident in our second half outlook. That's informed in part by a series of conversations that we've had with our customers.

Speaker Change: And of note, our outlook doesn't assume any significant changes in the macro environment, new business opportunities, or anything beyond the savings that we've already discussed.

Bill Furman: And so overall, it really is a point of caution with customers. And for us, with Illinois, California, and Maryland being very key states for us having regulatory challenges there.

Bill Fehrman: Overall, it really is a point of caution with customers. For us, with Illinois, California, and Maryland being very key states for us, having regulatory challenges there were very significant for us. We see those beginning to soften moving into the H2 of the year.

Speaker Change: in this call. And so, overall, it really is

Speaker Change: a point of caution with customers and for us, with Illinois, California, and Maryland being very key states for us, having regulatory challenges there were very significant for us. But we see those beginning to soften.

Bill Furman: We're very significant for us, but we see those beginning to soften moving into the second half of the year.

Steven Fisher: Okay, thanks, Phil.

Speaker Change: moving into the second half of the year.

Steven Fisher: Great. Thanks, Bill. Just to follow up on your commentary on H2 of the year, just to understand sort of the assumptions and the risk going forward, can you just give us maybe what do you think the cadence of Q3 versus Q4 would be perhaps from an EBITDA perspective? I assume Q3 is generally gonna be higher, but do you need to kind of win any more particular bids out there? You know, where do you see the risk factors for H2 of the year?

Steven Fisher: And just to follow up on your commentary on the second half of the year, just to understand sort of the assumptions and the risks going forward. Can you just give us maybe what would you think the cadence of Q3 versus Q4 would be perhaps from an EBITDA perspective. Sympiu 3 is generally going to be higher, but do you need to kind of win any more particular bids out there?

Speaker Change: Thanks, Bill. And just to follow up on your commentary on the second half of the year, just to understand sort of the assumptions and the risk going forward, can you just give us maybe what you think the cadence of Q3 versus Q4 would be, perhaps from a...

Speaker Change: Q3 is generally going to be higher, but do you need to win any more particular bids out there? Where do you see the risk factors for the second half of the year?

Bill Furman: Where do you see the risk factors for the second half of the year? Sure.

Bill Fuhrman: Where do you see the kind of risk factors for the second half of the year? Sure. Thank you for that question.

Bill Fehrman: Sure. Yep. Thank you for that question. Well, to start off, we do see a few positive indicators to note, as we head into H2 of the year. One, we're starting to see some pockets of normalization in spending. Particularly around electric. That's very good news for our company and for our business. Obviously, we're starting to factor in the cost savings that we've talked about. There was the early start to the storm season. Clearly the forecasts are for more significant storms, unfortunately heading towards the country. We'll be ready to respond to those. Our electric business is seeing more RFP activity in 2024 and beyond.

Bill Furman: Thank you for that question. Well, to start off, we do see a few positive indicators to note as we head into the second half of the year. One, we're starting to see some pockets of normalization and spending, particularly on electric. So that's very good news for our company and for our business. Obviously, we're starting to factor in the cost savings that we've talked about. And then there was the early start to the storm season. And clearly, the forecasts are for more significant storms, unfortunately, heading towards the country, but we'll be ready to respond to those.

Speaker Change: Thank you for that question. Well, to start off, we do see a few positive indicators to note as we head into the second half of the year. One, we're starting to see some pockets of normalization and spending.

Bill Fuhrman: Well, to start off, we do see a few positive indicators to note as we head into the second half of the year. One, we're starting to see some pockets of normalization and spending. [inaudible] and our electric business is seeing more RFP activity in 2024 uh... and beyond and then finally i would say that uh... the biggest driver perhaps is that uh... the certain delays in rate case decisions are starting to get settled out and we're beginning to see uh... work getting released uh... we're also right now seeing a pretty good flow of work from customers that were impacted in the first half of the year uh... they're beginning to add uh... crews uh... uh... and so uh... you know i think if you if you analyze uh... second half of 24 versus second half of 23, You'll need to factor in the cost savings that we've had as well as the fact that, one, we've only performed $22 million in storm work in the second half last year, and through July 21st of this year, we already have $22 million for the month. So a very critical point as you're looking at quarter over quarter and year over year.

Speaker Change: particularly around electric. So that's very good news for our company and for our business. Obviously we're starting to factor in the cost savings that we've talked about.

Speaker Change: And then there was the early start to the storm season, and clearly...

Speaker Change: The forecasts are...

Speaker Change: for more significant storms, unfortunately, heading towards the country.

Bill Furman: And our electric business is seeing more RFP activity in 2024 and beyond. And then finally, I would say that the biggest driver, perhaps, is that the certain delays in rate case decisions are starting to get settled out. And we're beginning to see work getting released. We're also right now seeing a pretty good flow of work from customers that were impacted in the first half of the year. They're beginning to add crews. And so, you know, I think if you analyze the second half of 24, versus the second half of 23, you'll need to factor in the cost savings that we've had, as well as the fact that one, we've only performed 22 million in storm work in the second half last year.

Speaker Change: but we'll be ready to respond to those.

Speaker Change: And our electric business is seeing more RFP activity in 2024.

Bill Fehrman: Finally, I would say that the biggest driver perhaps is that the certain delays in rate case decisions are starting to get settled out, and we're beginning to see work getting released. We're also right now seeing a pretty good flow of work from customers that were impacted in H1 of the year. They're beginning to add crews. You know, I think if you analyze H2 2024 versus H2 2023, you'll need to factor in the cost savings that we've had, as well as the fact that, one, we've only performed $22 million in storm work in H2 last year. Through 21 July 2024, we already have $22 million for the month.

Speaker Change: and beyond. And then finally, I would say that the biggest driver perhaps is that the certain delays in great case decisions are starting to get settled out and we're beginning to see work getting released.

Speaker Change: We're also right now seeing a pretty good flow of work from customers that were impacted in the first half of the year.

Speaker Change: They're beginning to add crews, and so...

Speaker Change: I think if you analyze the second half of 24 versus the second half of 23,

Speaker Change: You'll need to factor in the cost savings that we've had as well as the fact that, one, we've only performed $22 million in storm work in the second half last year.

Bill Furman: And through July 21st of this year, we already have 22 million for the month. So a very critical point as you're looking at quarter over quarter and year over year. And then fourth quarter, 23 already showed some softness, as we've talked about in the past. And I know what you're familiar with. The big projects that were the big tailwinds in the second quarter of 23 and the third quarter of 23 were already wrapped up in the fourth quarter. And so at that point, again, we saw some of the sluggishness and spending under an MSA word creep bin.

Speaker Change: And through July 21st of this year, we already have $22 million for the month.

Bill Fehrman: Very critical point as you're looking at quarter over quarter and year over year. Fourth quarter 2023 already showed some softness, as we've talked about in the past, and I know you're familiar with. The big projects that were the big tailwinds in the second quarter of 2023 and the third quarter of 2023 were already wrapped up in the fourth quarter. At that point, again, we saw some of the sluggishness in spending under our MSA work creep in. We're feeling good about what we're seeing. I think that the customers are beginning to really look at releasing work so that they can hit their capital spend requirements for the year.

Speaker Change: So a very critical point as you're looking at quarter over quarter and year over year.

Bill Fuhrman: And then the fourth quarter, 2023, already showed some softness, as we've talked about in the past and I know you're familiar with. The big projects that were the big tailwinds in the second quarter of 2023 and the third quarter of 23, we're already wrapped up in the fourth quarter. And so at that point, again, we saw some of the sluggishness and spending under an MSA word creep in. So we're feeling good about what we're seeing, and I think that the customers are beginning to really look at releasing work so that they can hit their capital spend requirements for the year. Okay. Thank you, Bill. I'll turn it over to you, and best wishes to you.

Speaker Change: And then fourth quarter 23 already showed some softness, as we've talked about in the past, and I know you're familiar with.

Speaker Change: The big projects that were the big tailwinds in the second quarter of 2003 and the third quarter of 2003.

Speaker Change: We're already wrapped up in the fourth quarter.

Speaker Change: And so, at that point again, we saw some of the sluggishness and spending under an MSA word creep in. So, we're feeling good about what we're seeing.

Bill Furman: So we're feeling good about what we're seeing.

Bill Furman: And I think that the customers are beginning to really look at releasing work so that they can hit their capital spend requirements for the year.

Speaker Change: And I think that the customers are beginning to really look at releasing work so that they can hit their capital spend requirements for the year.

Steven Fisher: Okay, thank you, Bill.

Steven Fisher: Okay. Thank you, Bill. I'll turn it over, and best wishes to you.

Steven Fisher: I'll turn it over, and best wishes to you. Thanks, David.

Operator: Thanks, Stephen. Take care. Thank you. We go next now to Mark Strauss with J.P.

Bill Fehrman: Okay. Thanks, Steven. Take care.

Speaker Change: Okay. Thank you, Bill. I'll turn it over and best wishes to you.

Operator: Take care. Thank you.

Operator: Thank you. We go next now to Mark Strouse with JP Morgan.

Stephen Fisher: Thanks, Stephen. Take care.

Mark Strauss: We'd like to now to Mark Strauss with JP Morgan.

Speaker Change: Thank you. We go next now to Mark Strauss with J.P. Morgan.

Mark Strauss: Yes, thank you very much for taking our questions. When you think about the lower than expected spending in 2Q, can you just kind of talk about how you're thinking about that kind of potential timing of that coming back? Or does it come back at all? Or does it just simply get delayed?

Operator: Yes, thank you very much for taking our questions. When you think about the lower than expected spending in 2Q, can you just kind of talk about how you're thinking about the potential timing of that coming back? Or does it not come back at all?

Mark Strouse: Yes, thank you very much for taking our questions. When you think about the lower than expected spending in Q2, can you just kinda talk about how you're thinking about that kinda potential timing of that coming back? Or does it come back at all? Or does it just simply get delayed? Is there any reason to think that that could lead to potential upside to what you were thinking kind of looking out to 2025?

Mark Strauss: Yes, thank you very much for taking our questions. When you think about the lower-than-expected spending in 2Q, can you just kind of talk about how you're thinking about that potential timing of that coming back?

Bill Fuhrman: Or does it just simply get delayed? Is there any reason to think that that could lead to potential upside to what you were thinking, kind of looking out to 2025? Well, as I just mentioned in response to Stephen's call, we are beginning to see customers start to release work, start to order it back with a stronger showing of crews. And just going to, again, the fact that for these customers who are blue chip utilities, for them to meet their earnings, they will have to deploy capital.

Bill Furman: Is there any reason to think that that could lead to potential upside to what you were thinking, kind of looking out to 2025? Well, if I just mentioned in response to Steven's call, we are beginning to see customers start to release work, start to order back in a stronger showing of crews. And just going to again, the fact that for these customers who are blue chip utilities, for them to meet their earnings, they will have to deploy capital. And so, while there was a slowdown in the first half of the year, we do expect to see an improvement and an increase going into the second half of the year so that these customers can be their earnings requirements and their spend.

Speaker Change: or does it come back at all, or does it just simply get delayed? Is there any reason to think that that could lead to potential upside to what you were thinking, kind of looking out to 2025?

Bill Fehrman: Well, as I just mentioned, in response to Steven's call, we are beginning to see customers start to release work, start to order back in, a stronger showing of crews. Just going to, again, the fact that for these customers who are blue chip utilities, for them to meet their earnings, they will have to deploy capital. While there was a slowdown in the H1 of the year, we do expect to see an improvement and an increase going into the H2 of the year so that these customers can meet their earnings requirements and their spend.

Speaker Change: Well, as I just mentioned in response to Stephen's call, we are beginning to see customers start to release work, start to

Speaker Change: order back in a stronger showing of crews and just going to, again, the fact that for these customers who are blue-chip utilities.

Bill Fuhrman: And so while there was a slowdown in the first half of the year, we do expect to see an improvement and an increase going into the second half of the year so that these customers can meet their earnings requirements and their spending. And so we anticipate an increase in spending in the medium to longer term, which will, we think, offset the shortfall in the first half of the year. And then, obviously, what we're hearing from the Fed and the anticipated lower interest rate environment will also help with reducing overall customer caution. Okay, thanks, Bill. And then my follow-up, the CapEx guidance of 90 to 99 million, which was lower than what we were looking for.

Speaker Change: for them to meet their earnings, they will have to deploy capital. And so, while there was a slowdown in the first half of the year,

Speaker Change: We do expect to see an improvement and an increase going into the second half of the year.

Speaker Change: so that these customers can meet their earnings requirements and their spend. And so, we anticipate an increase in spending in the medium to longer term, which will...

Bill Fehrman: We anticipate an increase in spending in the medium to longer term, which will, we think, offset the shortfall in H1. Obviously, what we're hearing through the Fed and anticipated lower interest rate environment, I think, will also help with reducing overall customer caution.

Bill Furman: And so we anticipate an increase in spending in the medium to longer term, which we'll think all set the shortfall in the first half of the year. And then obviously what we're hearing through the Fed and anticipated a lower interest rate environment, I think we'll also help us reducing overall customer cost.

Speaker Change: We think offset the shortfall in the first half of the year. And then obviously what we're hearing through the Fed and anticipated lower interest rate environment I think will also help with reducing overall customer caution.

Bill Furman: Okay, thanks, Bill, and then I follow up the CAPEX guidance of $90 to $99 million.

Mark Strouse: Okay. Thanks, Bill. A follow-up. The CapEx guidance of $90 to 99 million, that was lower than what we were looking for. Is that simply a function of the 2024 revenue outlook being a bit lower? Or are you signaling that, you know, there's something more structural there with your CapEx spending?

Speaker Change: Okay, thanks Bill and then I follow up the the the CapEx guidance of 90 to 99 million that was

Bill Furman: That was lower than what we were looking for.

Bill Fuhrman: Is that simply a function of the 2024 revenue outlook being a bit lower, or are you signaling that there's something more structural there with your CapEx? So we've talked about from the very beginning that we would have a much more disciplined focus on capital allocation and that capital would be viewed as a significant asset of the company and would be used in particular for growth opportunities. As part of that, as we've talked about in the past, we're reevaluating our fleet under our prior ownership with Southwest.

Bill Furman: Is that simply a function of the 2024 revenue outlook being a bit lower, or are you signaling that there's something more structural there with your CAPEX spending? So we've talked about, from the very beginning, that we would have a much more disciplined focus on capital allocation than that. The CAPEX would be viewed as a significant asset of the company and would be used in particular for growth opportunities. As part of that, as we've talked about in the past, we're re-evaluating our fleet under our prior ownership with Southwest. Our fleet was essentially bought with 100% CAPEX.

Speaker Change: That was lower than what we were looking for. Is that simply a function of the 2024 revenue outlook being a bit lower, or are you signaling that there's something more structural there with your CapEx spending?

Bill Fehrman: We've talked about from the very beginning that we would have a much more disciplined focus on capital allocation and that the capital would be viewed as a significant asset of the company and would be used in particular for growth opportunities. As part of that, as we've talked about in the past, we're reevaluating our fleet. Under our prior ownership with Southwest, our fleet was essentially bought with 100% CapEx. We're now looking at a buy/rent/lease type of strategy for our fleet, which will positively impact our capital spend. With the discipline that we have imposed and the opportunity to continue optimizing our fleet, we will see a continued decrease in our CapEx spend over time.

Speaker Change: So, we've talked about from the very beginning that we would have a much more disciplined focus on capital allocation than that.

Speaker Change: The capital would be viewed as a significant asset of the company and would be used in

Speaker Change: in particular for growth opportunities.

Speaker Change: As part of that, as we talked about in the past, we're re-evaluating our fleet under our prior ownership with Southwest.

Bill Fuhrman: Our fleet was essentially bought with 100% CapEx. We're now looking at a buy-rent-lease type of strategy for our fleet, which will positively impact our capital spend. And so, with the discipline that we have imposed and the opportunity to continue optimizing our fleet, we will see a continued decrease in our CapEx spend over time, and this is just the start of it that you're seeing today. Okay, very helpful.

Bill Furman: We're now looking at a by rent lease type of strategy for our fleet, which will positively impact our capital spend. And so, with the discipline that we have imposed and the opportunity to continue optimizing our fleet, we will see a continued decrease in our CAPEX spend over time. And this is just the start of that you're seeing today.

Speaker Change: Our fleet was essentially bought with 100% CapEx.

Speaker Change: We're now looking at a buy-rent-lease type of strategy for our fleet, which will positively impact our capital spend. And so, with the discipline that we have imposed...

Speaker Change: and the opportunity to continue optimizing our fleet, we will see a continued decrease in our capex spend over time, and this is just the start of it that you're seeing today.

Bill Fehrman: This is just the start of it that you're seeing today.

Mark Strauss: Okay, very helpful.

Operator: Thanks, Bill. And I'll add my best wishes as well on your next job. Thank you so much.

Mark Strouse: Okay. Very helpful. Thanks, Bill. I'll add my best wishes as well on your next chapter.

Mark Strauss: Thanks, Bill, and I'll add my best wishes as well on your next chapter. Thank you so much.

Speaker Change: Okay, very helpful. Thanks, Bill. And I'll add my best wishes as well on your next chapter.

Bill Fehrman: Yep. Thank you so much.

San Gita Jane: We'll go next now to San Gita Jane with Key Bank Capital Markets. Thank you. Good afternoon, and thanks for taking my question. If I can ask a between gas revenues and electric revenues, it looks like gas revenues held up closer to expectations, but the softness has more pronounced on the electric side. Can you maybe elaborate on that, and do you see the same trend in the second half? Or should we see some kind of offset?

Operator: We go next now to Sangeeta Jain with KeyBank Capital. Thank you, good afternoon, and thanks for taking my questions. If I can ask, between gas revenues and electric revenues, it looks like gas revenues held up closer to expectations, but the softness is more pronounced on the electric side. Can you maybe elaborate on that, and do you see the same trend in the second half, or should we see some kind of uplift? Yeah, thank you so much for the question. I'll have Greg answer that question. Greg

Operator: We go next now to Sangita Jain with KeyBanc Capital Markets.

Speaker Change: We go next now to Sangeeta Jain with KeyBank Capital Markets.

Sangita Jain: Yeah, thank you. Good afternoon, and thanks for taking my questions. If I can ask between gas revenues and electric revenues, it looks like gas revenues held up closer to expectations, but the softness is more pronounced on the electric side. Can you maybe elaborate on that? Do you see the same trend in the second half, or should we see some kind of offset?

Sangeeta Jain: Thank you. Good afternoon and thanks for taking my questions.

Sangeeta Jain: If I can ask between gas revenues and electric revenues, it looks like gas revenues held up closer to expectations but the softness is more pronounced on the electric side. Can you maybe elaborate on that and do you see the same trend in the second half or should we see some kind of offset?

Bill Furman: Yeah, thank you so much for the question. I'll have the electric side. Our non-union business saw a continuation of lower crew hours, or lower work hours. As Bill alluded to, we have seen some positive momentum as we've gotten into the second, the third quarter, especially given the storm work that we did already in July. When you look at our union business, it is a little bit more big-focused. The RSTs have started to come out in greater volume and frequency, but they are a little delayed from what we had anticipated and what we had seen in last year.

Bill Fehrman: Yeah. Thank you, so much for the question. I'll have Greg answer that question. Greg?

Sangeeta Jain: Thank you so much for the question. I'll have Greg answer that question. Good morning. So, yeah, I mean on the electric side, our non-union business,

Greg Eisenstark: Good morning. So, yeah, I mean, on the electric side, our non-union business, you know, saw a continuation of lower crew hours or lower work hours. You know, as Bill alluded to, we have seen some, you know, positive momentum as we've gotten into the second and third quarter, especially given the storm work that we did already in July. But when you look at our union business, it is a little bit more big focused. The RFPs have started to come out in greater volume and frequency, but they are a little delayed from what we had anticipated and what we had seen last year.

Greg Izenstark: Good morning. Yeah, I mean, on the electric side, our non-union business, you know, saw a continuation of lower crew hours or lower work hours. You know, as Bill alluded to, we have seen some positive momentum as we've gotten into the third quarter, especially given the storm work that we did already in July. When you look at our union business, it is a little bit more bid-focused. The RFPs have started to come out in greater volume and frequency. They are a little delayed from what we had anticipated, and what we had seen in last year. We are seeing some momentum there.

Greg Eisenstark: you know, saw a continuation of lower crew hours.

Greg Eisenstark: or lower work hours.

Greg Eisenstark: As Bill alluded to, we have seen some positive momentum as we've gotten into the third quarter.

Greg Eisenstark: especially given the storm work that we did already in July .

Greg Eisenstark: When you look at our union business...

Speaker Change: It is a little bit more big focused.

Speaker Change: The RFPs have started to come out in greater volume and frequency, but they are a little delayed from what we had anticipated.

Greg Eisenstark: So, we are seeing some momentum there, and we'll, you know, be looking to expand and increase that as we get through the second half of the year. And I can follow that up with one question on storm work. You told us what the storm work was to date in 3Q. Can you also help us understand what's in your guidance for Second Hand? I mean, we do, have forecasted storm work during the seasonal period in which it's most common to occur.

Bill Furman: So we are seeing some momentum there, and we'll obviously be looking to expand and increase that as we get through the second half of the year.

Speaker Change: and what we have seen in last year. So we are seeing some momentum there. And we'll obviously be looking to expand and increase that as we get through the second half of the year.

Greg Izenstark: We'll, you know, obviously be looking to expand and increase that as we get through the H2.

Bill Furman: And if I can follow that up with one question on storm work, you told us what the storm work was to date and treat you. Can you also help us understand what's in your guidance for the second half? We have forecasted storm work during the seasonal period in which it's most common to occur. It's a fairly modest amount of storm work, and obviously, given what we've done thus far, we're off to a good start.

Sherif El-Sabbahy: Great. If I can follow that up with one question on storm work. You told us what the storm work was to date in Q3. Can you also help us understand what's in your guidance for H2?

Speaker Change: If I can follow that up with one question on storm work. You told us what the storm work was to date in 3Q. Can you also help us understand what's in your guidance for second half?

Greg Izenstark: I mean, we do. We have forecasted storm work during the seasonal period in which it's most common to occur. You know, it's a fairly modest amount of storm work and, you know, obviously, given what we've done thus far, you know, it's you know, we're off to a good start.

Speaker Change: I mean, we do, we have forecasted storm work during the seasonal period in which it's most common to occur. You know, it's a fairly modest amount of storm work. And, you know, obviously given what we've done thus far, you know, we're off to a good start.

Greg Eisenstark: You know, it's a fairly modest amount of storm work, and, you know, obviously given what we've done thus far, you know, it's, you know, we're off to a good start. Thank you. Thank you. We go next now to Justin Houck at Robert Baer.

Sherif El-Sabbahy: Got it. Thank you.

Speaker Change: Thank you.

Operator: Thank you. We go next now to Justin Hauke at Robert W. Baird.

Justin Halk: We go next now to Justin Halk at Robert Baird. Great. Thank you for taking my questions this morning. I guess I just wanted to ask on the guidance question maybe one more time. So, I mean, it looks like the midpoint, the guidance basically, if you assume that EBIT is flat year over year and 3Q and 4Q, that kind of gets you the midpoint. And that's coming off of the first quarter. It was down 60%, and second quarter was down 25%. And I know you had these discrete kind of a wang on that. But I guess I just want to understand the visibility that gets to that outlook between the cost savings, the MSAs picking up and I guess just confirming that you aren't assuming that the MSA work does get better and just kind of the bracketing of the assumptions on why it could be flat year over year.

Speaker Change: Thank you. We go next now to Justin Hauck at Robert Baird.

Operator: Great. Thank you for taking my questions this morning. I guess I just wanted to ask the guidance question maybe one more time. So, I mean, basically, if you assume that EBIT is flat year over year in 3Q and 4Q, that kind of gets you to the midpoint, and that's coming off of the first quarter, when it was down 60 percent, and the second quarter, it was down 25.

Justin Hauke: Great. Thank you for taking my questions this morning. I guess I just wanted to ask on the guidance question maybe one more time. I mean, it looks like the midpoint, the guidance, basically, if you assume that EBIT flat year-over-year in Q3 and Q4, that kind of gets you the midpoint, and that's coming off of the Q1, it was down 60%, and Q2 was down 25%.

Justin: Great. Thank you for taking my questions this morning. I guess I just wanted to ask on the guidance question maybe one more time.

Justin Great: So, I mean, it looks like the midpoint, the guidance, basically, if you assume to EBIT flat.

Speaker Change: year-over-year in 3Q and 4Q, that kind of gets you to the midpoint and that's that's coming off of the first quarter it was down 60% and second quarter was down 25.

Justin Hauke: I know you had these discrete kind of a weighing on that, but I guess I just wanna understand the visibility that gets to that outlook, between the cost savings, the MSAs picking up, and I guess just confirming that you are assuming that the MSA work does get better and just kind of the bracketing of the assumptions on why it could be flat year over year.

Operator: And I know you had discreet weighing on that, but I guess I just want to understand the visibility that gets to that outlook between the cost savings. The MSA is picking up, and I guess just confirming that you are assuming that the MSA work does get better, and just kind of the bracketing of the assumptions on why it could be flat. Sure.

Speaker Change: And I know you had discreet kind of a weighing on that, but I guess I just want to understand the visibility that gets to that look between the cost savings.

Speaker Change: the the MSA is picking up and I guess just confirming that you are assuming that the MSA work does get better and Just kind of the bracketing the assumptions on why it could be flagged earlier

Bill Furman: Sure. Well, clearly on the MSA side, as we've discussed, we are beginning to see customers begin to release work. There's a significant amount of bid work under those MSAs that we have engaged with, and we're awaiting decisions on award.

Bill Fuhrman: Well, clearly on the MSA side, as we've discussed, we are beginning to see customers begin to release work. There's a significant amount of bid work under those MSAs that we have engaged with, and we're awaiting, a decision on award. So from that perspective, we do see a better second half of the year. Maybe for some of the details, I'll turn it over to Greg to add some color to this.

Bill Fehrman: Sure. Well, clearly on the MSA side, as we've discussed, we are beginning to see customers begin to release work. There's a significant amount of bid work under those MSAs that we have engaged with, and we're awaiting decisions on award. From that perspective, we do see a better H2 of the year. Maybe for some of the details, I'll turn it over to Greg to add some color to this.

Speaker Change: Clearly on the MSA side, as we've discussed, we are beginning to see customers begin to release work. There's a significant amount of bid work.

Speaker Change: under those MSAs that we have engaged with, and we're awaiting.

Gregory Eisenstark: And so, from that perspective, we do see a better second half of the year.

Greg Eisenstark: decisions on award and so from that perspective we do see a better second half of the year. Maybe for some of the details I'll turn it over to to Greg to add some color to this.

Gregory Eisenstark: Maybe for some of the details, I'll turn it over to create to add some color to this.

Greg Eisenstark: Yeah, I would add, you know, we talked, Bill mentioned, we did $22 million of storm work in the back half of last year. We've already done $22 million of storm work here through the first three weeks of July, projected you know a increase in storm activity we'll see what that transpires or what transpires from that but but as you said we did have a couple items in the second half of the year or last year that kind of winded down in the second half of the year and so that'll kind of be behind us and and obviously our fourth quarter last year included some you know pullback already on the electric side consistent with what we've seen in the first half of this year so we think we've leveled out, Thank you, you didn't give an adjusted EPS guidance. Can you help us for thinking about kind of the updated thought? and your DNA assumptions for 24 just so we can kind of bridge to that.

Gregory Eisenstark: Yeah, I would add, you know, we talked; Bill mentioned we did $22 million of storm work in the back half of last year. And we've already done $22 million of storm work here through the first three weeks of July. You know, forecast projected, you know, an increase in storm activity. We'll see what transpires, or what transpires from that. But, as you said, we did have a couple items in the second half of the year, or last year, that kind of winded down in the second half of the year. And so that'll kind of be behind us.

Greg Izenstark: Yeah. I would add, you know, we talked, Bill mentioned we did $22 million of storm work in the back half of last year, and we've already done $22 million of storm work here through the first three weeks of July. You know, forecasters projected an increase in storm activity. We'll see what that transpires or what transpires from that. But as you said, we did have a couple items in the H2 of last year that kind of wound down in the H2 of the year, and so that'll kind of be behind us.

Greg Eisenstark: Yeah, I would add, you know, we talked, Bill mentioned we did $22 million of storm work in the back half of last year, and we've already done $22 million of storm work here through the first three weeks of July .

Speaker Change: you know, forecasts.

Greg Eisenstark: projected, you know, an increase in storm activity. We'll see what that transpires or what transpires from that. But as you said, we did have a couple items.

Greg Eisenstark: in the second half of the year, or last year that kind of winded down in the second half of the year.

Greg Izenstark: Obviously, our Q4 last year included some, you know, pullback already on the electric side, consistent with what we've seen in the H1 of this year. We think we've leveled out.

Gregory Eisenstark: And obviously, our fourth quarter last year included some pullback already on the electric side, consistent with what we've seen in the first half of this year. So we think we've leveled out.

Greg Izenstark: Obviously, our Q4 last year included some, you know, pullback already on the electric side, consistent with what we've seen in the H1 of this year. We think we've leveled out.

Greg Eisenstark: of the year, and so that'll kind of be behind us. And obviously, our fourth quarter last year included some...

Speaker Change: pull back already on the electric side, consistent with what we've seen in the first half of this year. So we think we've leveled out.

Justin Hauke: Okay. Second question. Just you didn't give an adjusted EPS guidance. Can you help us for thinking about kind of the updated thoughts for interest expense and your D&A assumptions for 2024, just so we can kind of bridge to that?

Gregory Eisenstark: Thank you.

Justin Halk: Second question, you didn't get an adjustment EPS guidance. Can you help us for thinking about kind of the off day's thoughts for interest expense and your DNA assumptions for 24 just so we can kind of bridge that? You know, with regarding DNA, you know, I'd say it's going to be fairly consistent with what we reported in the first half of 2024.

Speaker Change: Okay. Thank you.

Speaker Change: You didn't give an adjusted EPS guidance. Can you help us for thinking about kind of the updated thoughts for interest expense and your DNA assumptions for 24 just so we can kind of bridge to that?

Greg Eisenstark: You know, regarding DNA, I'd say it's going to be fairly consistent with what we reported in the first half of 2024. And, you know, with regard to interest, I just remind you that we paid off a significant piece of debt in April of this second quarter. And so you need to factor that in as you kind of think about the last six months of the year. [inaudible] Thank you very much.

Greg Izenstark: You know, with regard to D&A, you know, I'd say it's gonna be fairly consistent with what we reported in the H1 of 2024. With regard to interest, I just remind you that we paid off a significant piece of debt in April of this Q2. You need to factor that in as you kind of think about the H2 of the year.

Speaker Change: You know with regarding DNA, you know, I'd say it's going to be fairly consistent with what we reported in the first half of 20

Gregory Eisenstark: And you know, with regards to interest, I just remind you that we paid off a significant piece of debt in April of this second quarter. And so you need to factor that in as you kind of think about the last six months of the year. Okay, great.

Speaker Change: 2024. And, you know, with regards to interest, I just remind you that we paid off a significant piece of debt in April of this second quarter, and so you need to factor that in as you kind of think about the last six months of the year.

Justin Hauke: Okay, great. Thank you very much.

Justin Halk: Thank you very much. Thank you.

Speaker Change: We go next now to Sharif El Sabahi at Bank of America.

Operator: Thank you. We go next now to Sherif El-Sabbahy at Bank of America.

Operator: Thank you. We go next now to Sharif El Sabahi at Bank of America. Hi, thanks for taking the question. I realize rate cases have pushed out some work. Is there a risk that elections also push out or delay some of the work in the second half?

Sharif El-Saba: We go next now to Sharif El-Saba. He at Bank of America. I've explained the question. I realize rate cases have pushed out some work.

Sherif El-Sabbahy: Hi. Thanks for taking the question. I realize rate cases have pushed out some work. Is there a risk that elections also push or delay some of the work in H2?

Speaker Change: Hi, thanks for taking the question. I realize rate cases have pushed out some work. Is there a risk that elections also push or delay some of the work in the second half?

Bill Furman: Is there a risk that elections also push our delay some of the work in the second half? I don't actually think so. In my view, when we look back at both the prior Trump administration and the Biden administration, they both have pushed significant investment in infrastructure. Both of them pushed billions and billions of dollars out into the market, and everything that I've seen, at least signaling coming out of the Trump presidency campaign, has been continued investment in infrastructure and, in some cases, required investment in infrastructure. Of course, if the Harris campaign wins, they've been very strong on infrastructure span renewal spend and such.

Bill Fehrman: I don't actually think so. In my view, when we look back at both the prior Trump administration and the Biden administration, they both have pushed significant investment in infrastructure, and both of them pushed billions and billions of dollars out into the market. Everything that I've seen, at least signaling coming out of the Trump presidency campaign has been continued investment in infrastructure, and in some cases, required investment in infrastructure. Of course, if the Harris, they've been very strong on infrastructure spend, renewable spend, and such. All of those line up very well for us with regards to our core capabilities, and we're very much ready to take that work on.

Speaker Change: I don't actually think so, in my view, when we look back at both the prior Trump administration and

Bill Fuhrman: the Biden administration, they both have entered the market, and everything that I've seen, at least signaling, coming out of the Trump presidency campaign has been continued investment in infrastructure and, in some cases, required investment in infrastructure. And, of course, if the Harris campaign wins, they've been very strong on infrastructure spend, renewable spend, and such, and so all of those line up very well for us with regard to our core capabilities, and we're very And so I think either way, our business will catapult regardless of who wins.

Speaker Change: the Biden administration, they both have

Speaker Change: pushed significant investment in infrastructure and both of them pushed billions and billions of dollars out.

Speaker Change: into

Speaker Change: into the into the market and everything that I've seen at least signaling coming out of the Trump presidency

Speaker Change: campaign has been continued investment in infrastructure, and in some cases required investment in infrastructure. And of course if

Speaker Change: The Harris campaign wins. They've been very strong on infrastructure spend, renewable spend, and such, and so all of those

Bill Furman: All of those line up very well for us with regards to our core capabilities, and we're very much ready to take that work on. I think either way, our business will account for, regardless of who wins.

Speaker Change: line up very well for us with regards to our core capabilities and we're very much ready to take that work on and so I think either way our business will catapult regardless of who wins.

Bill Fehrman: I think either way, our business will catapult, regardless of who wins.

Bill Fuhrman: And just to follow up on leverage, you said your expectation is to be in the mid threes by year end. It's in the low fours as of this quarter. Can you just give us a sense of how comfortable you feel there?

Sherif El-Sabbahy: Understood. Just to follow up on leverage, you said your expectation is to be in the mid-threes by year-end. It's in the low fours as of this quarter. Can you just provide us a sense of how comfortable you feel there? You've talked about some of your expectations for the H2. I realize you have cost savings underway. Are there any other levers on capital allocation that you could pull too if we see spending further delayed?

Bill Furman: And just to follow up on leverage, you said your expectation is to be in the mid threes by year end.

Speaker Change: Understood. And just to follow up on leverage, you said your expectation is to be in the mid threes by year end. It's in the low fours as of this quarter. Can you just provide us a sense of how comfortable you feel there? You've talked about some of your expectations for the second half.

Bill Furman: It's in the low fours as of this quarter. Use provide us a sense of how comfortable you feel there. You've talked about some of your expectations for the second half. And I realize you have cost savings underway. Are there any other levels, levers on capital allocation that you could pull to, if we see spending further delayed? Sure, well, and debt. As we've said, we ultimately are pushing to get ourselves really in line with where our peers are at. And so, while we'll be in that mid threes range by the end of the year, that's not where we ultimately want to land.

Bill Fuhrman: You've talked about some of your expectations for the second half. And I realize you have cost savings underway. Are there any other levels, levers on capital allocation that you could pull if we see spending further delayed? Sure.

Speaker Change: And I realize you have cost savings underway. Are there any other levers on capital allocation that you could pull if we see spending further delayed?

Bill Fuhrman: Well, as we've said, we are ultimately pushing to get ourselves really in line with where our peers are. And so while we'll be in that mid-three range by the end of this year, that's not where we ultimately want to land; we'll continue to focus on leverage reduction over the next several months, and once we get into a better spot on leverage, obviously, that will begin to open up the opportunity for M&A, but first and foremost, we're going to drive our leverage down, significant work on the supply chain, and significant work on our The fleet is a billion dollars of assets.

Bill Fehrman: Sure. Well, in debt, as we've said, we ultimately are pushing to get ourself really in line with where our peers are at. While we'll be in that mid-three range by the end of the year, that's not where we ultimately want to land. We'll continue to focus on leverage reduction over the next several months. Once we get into a better spot on leverage, obviously that will begin to open up the opportunity for M&A. First and foremost, we're going to drive our leverage down. Just on the CapEx side and other levers, we are just in the early innings around significant work on supply chain and significant work on our fleet.

Speaker Change: Sure, well, as we've said, we ultimately are pushing to get ourselves really in line with where our peers are at and so while we'll be in that mid three range by the end of that's not where we ultimately want to land we'll continue to

Bill Furman: We'll continue to focus on leverage reduction over the next several months. And once we get into a better spot on leverage, obviously that will begin to open up the opportunity for M&A, but first and foremost, we're going to drive our leverage down.

Speaker Change: focus on leverage reduction.

Speaker Change: over the next several months and once we get into a better spot on leverage obviously that will begin to open up the opportunity for M&A but first and foremost we're going to drive our leverage down.

Bill Furman: And just on the on the cap excite and other lovers, we are just in the early needs around significant work on supply chain and significant work on on our fleet. The fleet is a billion dollars of asset. There's a lot of opportunities there. It's just taking us some time to thoughtfully go through those assets and determine what makes the most sense. For us, for instance, we have a lot of our assets up in cold weather territories where work significantly slows down over that period of time, and being able to move those assets down into the warmer regions of the country where work continues to pick up during that period.

Speaker Change: And just on the CapEx side and other levers, we are just in the early innings around

Speaker Change: significant work on supply chain and significant work on on our fleet. The fleet is a billion dollars of asset.

Bill Fehrman: The fleet is $1 billion of asset. There's a lot of opportunity there. It's just taking us some time to thoughtfully go through those assets and determine what makes the most sense for us. For instance, we have a lot of our assets up in cold weather territories where work significantly slows down over that period of time, and being able to move those assets down into the warmer regions of the country where work continues to pick up during that period. It's those types of things that we're looking at versus perhaps just buying equipment for both of those regions and have some of it sit without really being used efficiently.

Bill Fuhrman: There's a lot of opportunity there. It's just taking some time to thoughtfully go through those assets and determine what makes the most sense. For us, for instance, we have a lot of our assets up in cold weather territories where work significantly slows down over that period of time, and being able to move those assets down into the warmer regions of the country where work continues to pick up during that period.

Speaker Change: There's a lot of opportunity there, it's just taking us.

Speaker Change: some time to thoughtfully go through those assets and determine what makes the most sense.

Speaker Change: For us for instance

Speaker Change: We have a lot of our assets up in cold weather territories where work significantly slows down.

Speaker Change: over that period of time and being able to move those assets.

Speaker Change: down into the warmer regions of the country where work

Bill Furman: It's those types of things that we're looking at versus perhaps just behind equipment for both of those regions and how some of it sit without really being used efficiently. And so I would say that beyond the capital allocation and the discipline that we're applying to our capital, meaning that when it gets pushed out into the operating companies, we're not putting a cost of that capital on it, that the Yopcos will have to cover. And when that gets returned, they'll have to be a return of and a return on the capital. And so that type of discipline will support more efficient use of that money.

Bill Fuhrman: It's those types of things that we're looking at versus perhaps just buying equipment for both of those regions and having some of it sit without really being used efficiently. And so I would say that beyond the capital allocation and the discipline that we're applying to our capital, meaning that when it gets pushed out into the operating companies, we're now putting a cost on that capital on it that the OPCOs will have to cover, and when that gets returned, there will have to be a return on and a return on the capital. And so that type of discipline will support more efficient use of that money.

Speaker Change: continues to pick up during that period.

Speaker Change: It's those types of things that we're looking at versus perhaps just buying equipment for both of those regions and have some of it fit.

Bill Fehrman: I would say that beyond the capital allocation and the discipline that we're applying to our capital, meaning that when it gets pushed out into the operating companies, we're now putting a cost of that capital on it that the OpCos will have to cover, and when that gets returned, there'll be a return of and a return on the capital. That type of discipline will support more efficient use of that money. Again, just a very hard focus on our fleet and our supply chain is going to open up additional levers for us to pull going forward.

Speaker Change: without really being used efficiently and so I would say that beyond the capital allocation and the discipline

Speaker Change: that we're applying to our

Speaker Change: our capital meeting.

Speaker Change: that when it gets pushed out into the operating companies, we're now putting...

Speaker Change: a cost of that capital on it that the OPCOs will have to cover and when that gets returned they'll have to be

Speaker Change: a return of and a return on the capital.

Gregory Eisenstark: And then again, just a very hard focus on our fleet and our supply chain is going to open up additional levers for us to pull going forward. Understood. And just given where leverage is, could you remind us where your covenants stand? We're in compliance with our covenants.

Bill Fuhrman: And then, again, just a very hard focus on our fleet and our supply chain is going to open up additional levers for us to pull going forward. Understand, and just given where Leverage is, could you remind us where your covenants stand? We're in compliance with our covenants. Thank you.

Speaker Change: That type of discipline will support more efficient use.

Speaker Change: of that money and then.

Speaker Change: Again, just a very hard focus on our fleet and our supply chain is going to open up additional levers for us to pull going forward.

Sherif El-Sabbahy: Understood. Just given where leverage is, could you remind us where your covenants stand?

Speaker Change: Understood. And just given where Leverage is, could you remind us where your covenants stand?

Bill Fehrman: We're in compliance with our covenants.

Speaker Change: We're in compliance with our covenants.

Sherif El-Sabbahy: Thank you.

Operator: We go next now to Joe O'Day with Wells Fargo. Hi, thanks for taking my question. Looking at the year-over-year revenue bridge on slide 12, there is some helpful breakdown there. It seems like kind of four buckets of headwinds, a couple of them really tough comps, and then a couple of them maybe a little bit more the operating environment.

Operator: Thank you. We go next now to Joe O'Dea with Wells Fargo.

Joe O'Day: We go next now to Joe O'Day with Wells Fargo. All right. Thanks for taking my questions. Just looking at the year-over-year revenue bridge on slide 12, some helpful breakdown there. It seems like kind of four buckets of headwinds, a couple of them really tough comps, and then a couple of them maybe a little bit more the operating environment.

Speaker Change: Thank you.

Speaker Change: Thank you. We go next now to Joe O'Day with Wells Fargo.

Speaker 16: Hi. Thanks for taking my questions. Just looking at the year-over-year revenue bridge on slide 12, some helpful breakdown there. It seems like kind of four buckets of headwinds, a couple of them really tough comps, and then a couple of them maybe a little bit more the operating environment. In the roughly $33 million of just lower volumes under MSAs, can you elaborate on this a little bit more? What type of project work is getting pushed out? How long is it that utilities can push this type of project work out? And then just, like, related and how the business works, I mean, obviously, downside surprises here in the H1.

Joe O'Dea: Hi. Thanks for taking my questions. Just looking at the year-over-year revenue bridge on slide 12, some helpful breakdown there. It seems like kind of four buckets of headwinds, a couple of them really tough comps, and then a couple of them maybe a little bit more the operating environment. In the roughly $33 million of just lower volumes under MSAs, can you elaborate on this a little bit more? What type of project work is getting pushed out? How long is it that utilities can push this type of project work out? And then just, like, related and how the business works, I mean, obviously, downside surprises here in the H1.

Joe O'Day: All right. Thanks for taking my questions.

Joe O'Day: Just looking at the year-over-year revenue bridge on slide 12, some helpful breakdown there. It seems like kind of four buckets of headwinds, a couple of them really tough comps, and then a couple of them maybe a little bit more the operating environment.

Gregory Eisenstark: But in the roughly 33 million of just lower volumes under MSAs, can you elaborate on this a little bit more? What type of project work is getting pushed out? How long is it that utilities can push this type of project work out? And then just related in how the business works.

Greg Eisenstark: But in the roughly $33 million of just lower volumes under MSAs, can you elaborate on this a little bit more? What type of project work is getting? pushed out, how long it is that utilities can push this type of project work out, and then just related to how the business works. I mean, obviously, downside surprises here in the first half of the year, but does it tend to be pretty symmetrical, and you could get these upside surprises in the back half, or just how does that work in terms of visibility and conversation?

Speaker Change: but in the roughly 33 million of just lower volumes under MSAs.

Speaker Change: Can you elaborate on this a little bit more what what type of project work is is getting?

Speaker Change: pushed out how long it is that utilities can push this type of project work out.

Gregory Eisenstark: I mean, obviously, downside surprises here in the first half of the year, but does it tend to be pretty symmetrical? And you could get these upside surprises in the back half, or just how does that work in terms of visibility and conversations with customers? So, you know, regarding the other category of 33 million or so, you know, this is largely just MSA work, and some of it is timing and delays that our customers have communicated to us. And it's also slightly lower work hours, especially on the electric side, like we mentioned already. And so, you know, this is all work that can flow from quarter to quarter, and we're obviously heading into the second half of the year, which, you know, from a third quarter perspective, is a seasonally higher period for us.

Speaker Change: And then just like related and how the business works, I mean, obviously, downside surprises here in the first half of the year, but does it tend to be pretty symmetrical and and you could get these upside surprises in the back half or just how does that work in terms of visibility and conversations with customers?

Speaker 16: Does it tend to be pretty symmetrical and you could get these upside surprises in the back half, or just how does that work in terms of visibility and conversations with customers?

Joe O'Dea: Does it tend to be pretty symmetrical and you could get these upside surprises in the back half, or just how does that work in terms of visibility and conversations with customers?

Greg Eisenstark: So regarding the other category of $33 million or so, this is largely just MSA work, and some of it is timing and delays that our customers have communicated to us. Also, slightly lower work hours, especially on the electric side, as we mentioned already.

Bill Fehrman: You know, regarding the other category of $33 million or so, you know, this is largely just MSA work and some of it is timing and delays that our customers have communicated to us. It's also slightly, you know, lower work hours, especially on the electric side, like we mentioned already. You know, this is all work that can flow from quarter to quarter, and we're obviously heading into the H2, which, you know, from a Q3 perspective is a seasonally higher period for us. You know, this is work that ultimately will come at some point. You know, it is, but is dependent on how the customer releases work and such.

Greg Izenstark: You know, regarding the other category of $33 million or so, you know, this is largely just MSA work and some of it is timing and delays that our customers have communicated to us. It's also slightly, you know, lower work hours, especially on the electric side, like we mentioned already. You know, this is all work that can flow from quarter to quarter, and we're obviously heading into the H2, which, you know, from a Q3 perspective is a seasonally higher period for us. You know, this is work that ultimately will come at some point. You know, it is, but is dependent on how the customer releases work and such.

Speaker Change: So, regarding the other category of $33 million or so,

Speaker Change: You know, this is largely just MSA work and some of it is timing and delays that our customers have communicated to us.

Speaker Change: and also slightly lower work hours, especially on the electric side, like we mentioned already.

Greg Eisenstark: And so, you know, this is all work that can flow from quarter to quarter, and we're obviously heading into the second half of the year, which, from a third-quarter perspective, is a seasonally higher period for us. And so, you know, this is work that ultimately will come at some point. You know, it is, but it is dependent on how the customer releases work and such. What was your second question? I'm sorry, Jeff.

Speaker Change: And so, you know, this is all work that can flow from quarter to quarter, and we're obviously heading into the second half of the year, which, you know, from a third-quarter perspective is a seasonally higher period for us.

Gregory Eisenstark: And so, you know, this is work that ultimately will come at some point. You know, it is, but is dependent on how the customer releases work and such.

Speaker Change: And so, you know, this is work that ultimately will come at some point, you know, it is, but it is dependent on how the customer releases work and such.

Bill Fehrman: What was your second question? I'm sorry, Joe.

Joe O'Day: What was your second question?

Greg Izenstark: What was your second question? I'm sorry, Joe.

Gregory Eisenstark: I'm sorry, Jim. It was just in terms of over time. And as you observed, surprise is relative to plan from quarter to quarter, trying to understand the scope for the back half of the year to come in, you know, notably above plan. I would say, you know, first half if we characterize that as notably below plan, and just the way the business works or what is the scope for customers to do a lot more than you think they're going to do. You know, we're here to service the customers, you know, any way they need, and if they come to us and ask for additional crews and additional work and additional hours, you know, we'll make sure we accommodate that request.

Greg Eisenstark: It was just in terms of time and, as you observe surprises relative to plan from quarter to quarter, trying to understand the scope for the back half of the year to come in, notably above plant. I would say, you know, the first half, if we characterize that as notably below plant, the way the business works. What is the scope for customers to do a lot more than you think they're going to do?

Speaker 16: It was just in terms of over time and as you observe surprises relative to plan from quarter to quarter, trying to understand the scope for H2 to come in notably above plan. I would say, you know, H1, if we characterize that as notably below plan and just the way the business works, what is the scope for customers to do a lot more than you think they're gonna do?

Joe O'Dea: It was just in terms of over time and as you observe surprises relative to plan from quarter to quarter, trying to understand the scope for H2 to come in notably above plan. I would say, you know, H1, if we characterize that as notably below plan and just the way the business works, what is the scope for customers to do a lot more than you think they're gonna do?

Speaker Change: What was your second question? I'm sorry, Jim.

Jim: It was just in terms of over time and as you observe surprises relative to plan from quarter to quarter, trying to understand the scope for the back half of the year to come in.

Speaker Change: notably above plan. I would say, you know, first half if we characterize that as notably below plan and just the way the business works, what is the scope for customers to do a lot more than you think they're going to do.

Greg Eisenstark: You know, we're here to service the customers any way they need, and if they come to us and ask for additional crews and additional work and additional hours, we'll make sure we accommodate that request. I think we've talked about a little bit that we have seen an uptick in bid RFP flow, you know, compared to the first half of the year. We've already touched on the storm activity and where we stand there.

Bill Fehrman: You know, we're here to service the customers, you know.

Greg Izenstark: You know, we're here to service the customers, you know.

Speaker Change: You know, we're here to service the customers, you know, any way they need and if they come to us and ask for additional crews and additional work.

Greg Izenstark: Any way they need, and if they come to us and ask for additional crews, additional work, and additional hours, you know, we'll make sure we accommodate that request. I think we've talked about a little bit that we have seen an uptick in bid RFP flow, you know, compared to H1. We've already touched on the storm activity and where we stand there. You know, we are seeing some increased movement, and that does encourage us as we look to H2 and, you know, obviously.

Speaker Change: and additional hours, you know, we'll make sure we accommodate.

Gregory Eisenstark: I think we've talked about a little bit that we have fleeing an uptick and in-bit RFP flow, you know, compared to the first half of the year. We've already touched on storm activity and where we stand there. And so, you know, we are seeing some increased movement, and that does encourage us as we look to the back half and, you know, obviously.

Speaker Change: at that request.

Speaker Change: I think we've talked about a little bit that we have seen an uptick in bit RFP flow.

Speaker Change: you know, compared to the first half of the year.

Greg Eisenstark: And so, you know, we are seeing some increased movement, and that does encourage us as we look to the back half and, you know, obviously. And then also, just wanted to ask about the cost savings, so the $29 million of annualized savings, is that something that should be fully realized in 2025, and how much of that is in 2024? And then also just supply chain and fleet savings; any quantification of the potential savings there?

Speaker Change: We've already touched on the storm activity and where we stand there, and so, you know, we are seeing some increased movement, and that does encourage us as we look to the back half.

Gregory Eisenstark: And then I also just wanted to ask on the cost savings, so the 29 million of annualized savings, is that something that should be fully realized in 2025, and how much of that is in 2024? And then also just supply chain of fleet savings, any quantification of the potential savings there? So the annualized $29 million is expected to be realized in 2025. We talked, we've been making; we initially started in the corporate office in the first quarter and have moved to the operational side of the house in the second quarter, so you will start seeing that benefit in the second half of the year and then fully realized going forward into 2025.

Speaker 17: Also just wanted to ask on the cost savings. The $29 million of annualized savings, is that something that should be fully realized in 2025? How much of that is in 2024? Also, supply chain and fleet savings, any quantification of the potential savings there?

Speaker Change: you know, obviously.

Joe O'Dea: Also just wanted to ask on the cost savings. The $29 million of annualized savings, is that something that should be fully realized in 2025? How much of that is in 2024? Also, supply chain and fleet savings, any quantification of the potential savings there?

Speaker Change: and then also just wanted to ask on the cost savings so the 29 million of annualized savings

Speaker Change: Is that something that should be fully realized in 2025, and how much of that is in 2024? And also just supply chain and fleet savings, any quantification of the potential savings there?

Greg Eisenstark: So the annualized $29 million, you know, is expected to be realized in 2025. We talked, we've been making, we initially started in the corporate office in the first quarter and have moved to the operational side of the house in the second half, or in the second quarter, so you will start seeing that benefit in the second half of the year and then fully realized going forward into 2025. You know, from a supply chain and fleet perspective, we think there's a lot of opportunity.

Greg Izenstark: The annualized $29 million is expected to be realized in 2025. We've been making progress. We initially started in the corporate office in Q1 and have moved to the operational side of the house in H2 or in Q2. You will start seeing that benefit in H2 and then fully realized going forward into 2025. You know, from a supply chain and fleet perspective, you know, we think there's a lot of opportunity. We are in the early stages and the early innings of that analysis and that work. We have made some progress already with some of our key suppliers.

Speaker Change: So the annualized $29 million is expected to be realized in 2025. We talked, we've been making, we initially started in the corporate office.

Speaker Change: in the first quarter and

Speaker Change: have moved to the operational side of the house.

Speaker Change: in the second half, or in the second quarter.

Speaker Change: So you will start seeing that benefit in the second half of the year and then fully realize it.

Gregory Eisenstark: From a supply chain and fleet perspective, we think there's a lot of opportunity. We are in the early stages and early innings of that analysis and that work. We have made some progress already with some of our key suppliers, but that's something that we'll continue to put focus on as we move throughout 24 and 25. What is it like 15 million of that 29 that you get in 24? Related to the 29 million, you know, I'd probably say it's maybe a third. Great, that's helpful.

Speaker Change: going forward into 2025.

Speaker Change: From a supply chain and fleet perspective, we think there's a lot of opportunity. We are in the early stages and the early innings of that analysis and that work.

Greg Eisenstark: We are in the early stages and the early innings of that analysis and that work. We have made some progress already with some of our key suppliers, but that's something that we'll continue to put a focus on as we move throughout 2024 and 2025. But is it like 15 million of that 29 that you get in 24?

Greg Izenstark: That's something that we'll continue to put focus on as we move throughout 2024 and 2025.

Speaker Change: We have made some progress already with some of our key suppliers, but that's something that we'll continue to put focus on as we move throughout 2024 and 2025.

Speaker 17: Is it, like, $15 million of that 29 that you get in 2024?

Joe O'Dea: Is it, like, $15 million of that 29 that you get in 2024?

Speaker Change: But is it like 15 million of that 29 that you get in 24?

Greg Eisenstark: Related to the 29 million, you know, I'd probably say it's a... Great, that's helpful. Thank you. And we'll go next to Chris Ellinghaus.

Greg Izenstark: Related to the $29 million, you know, I'd probably say it's maybe a third.

Speaker Change: Related to the 29 million, you know...

Speaker Change: I'd probably say it's maybe a third.

Speaker 17: Great. That's helpful. Thank you.

Joe O'Dea: Great. That's helpful. Thank you.

Gregory Eisenstark: Thank you.

Speaker Change: Great, that's helpful. Thank you.

Chris Ellyhouse: And we'll go next now to Chris Ellyhouse at Seabird, Williams, and Shank.

Operator: We'll go next now to Chris Ellinghaus at Siebert Williams Shank.

Speaker Change: And we'll go next now to Chris Ellinghaus at Seabird, Williams & Schenck.

Bill Furman: Hey everybody, how are you feeling? Great, thank you. Bill, you know, there's always some short-term gyrations relative to, you know, GRC outcomes. Are there any commonalities that you've heard from your customers related to their rate case outcomes that, you know, influence your results? And secondly, you know, what are they telling you for, say, next year? It sounds like you think things are starting to normalize. So does that sort of suggest what you're hearing for customers is, you know, more back-to-plan for 2025?

Operator: Hey everybody, how are you? And a great thank you. Bill, you know, there's always some short-term gyrations relative to..., you know, GRC outcomes. Are there any... A, commonalities that you've heard from your customers related to their rate case outcomes that, you know, influence your results, and secondly, what are they telling you for say next year? It sounds like you think things are starting to normalize, so does that sort of suggest what you're hearing from customers is more back to plan for 2025?

Chris Ellinghaus (Sieber: Hey, everybody. How are you today?

Greg Izenstark: Great. Thanks.

Bill Fehrman: Great. Thanks.

Chris Ellinghaus: Hey everybody, how are you today?

Chris Ellinghaus (Sieber: Bill, you know, there's always some short-term gyrations relative to, you know, GRC outcomes. Are there any commonalities that you've heard from your customers related to their rate case outcomes that, you know, influence your results? Secondly, you know, what are they telling you for, say, next year? It sounds like you think things are starting to normalize. Does that sort of suggest what you're hearing from customers is, you know, more back to plan for 2025?

Chris Ellinghaus: Bill, you know, there's always some short-term gyrations relative to, you know, GRC outcomes.

Chris Ellinghaus: Are there any commonalities that you've heard from your customers related to their rate case outcomes that...

Speaker Change: you know, influence your results? And secondly, you know, what are they telling you?

Speaker Change: for say next year it sounds like you think things are starting to normalize so does that sort of suggest what you're hearing for customers is you know more back to plan for 2025?

Jim Connell: Yeah, thanks for the question, Chris. I'll start, then I'm going to hand it off to Jim Connell, who's had tremendously strong relationships with our customers. As I stated, there's a certain jurisdiction in particular: Illinois, California, Maryland, which I would say issued pretty onerous rate case outcomes. And there's a commonality across those, I would say, a little bit. And in our case, those are very large states for us with regards to customers. And so I would say the cases that came out had an outsized influence on our results. That said, those customers have all communicated that.

Operator: Thanks for the question, Chris. I'll start and then I'm going to hand it off to Jim Connell, who has a tremendously strong relationship with our customers. As I stated, there's a certain jurisdiction in particular, Illinois, California, and Maryland, which I would say issued pretty onerous rate case outcomes.

Greg Izenstark: Yeah. Thanks for the question, Chris. I'll start, and then I'm going to hand it off to Jim Connell, who has tremendously strong relationships with our customers. As I stated, there's a certain jurisdictions in particular Illinois, California, and Maryland, which I would say issued pretty onerous rate case outcomes. There's a commonality across those, I would say a little bit. In our case, those are very large states for us with regards to the customers. I would say the cases that came out had an outsized influence on our results. That said, those customers have all communicated that again, for them to meet their earnings, they ultimately will have to deploy capital in these areas.

Bill Fehrman: Yeah. Thanks for the question, Chris. I'll start, and then I'm going to hand it off to Jim Connell, who has tremendously strong relationships with our customers. As I stated, there's a certain jurisdictions in particular Illinois, California, and Maryland, which I would say issued pretty onerous rate case outcomes. There's a commonality across those, I would say a little bit. In our case, those are very large states for us with regards to the customers. I would say the cases that came out had an outsized influence on our results. That said, those customers have all communicated that again, for them to meet their earnings, they ultimately will have to deploy capital in these areas.

Jim Connell: Yeah, thanks for the for the question Chris. I'll start and I'm going to hand it off to Jim Connell who has tremendously strong relationships.

Jim Connell: With our customers as I stated there's there's a certain jurisdictions

Jim Connell: and in particular Illinois, California, and Maryland, which I would say issued pretty onerous rate case outcomes, and there's a commonality across those, I would say, a little bit. And in our case,

Bill Fuhrman: And there's a commonality across those, I would say, a little bit. And in our case, those are very large states for us with regard to customers. And so I would say the cases that came out had an outsized influence on our results.

Jim Connell: Those are very large states for us with regards to the customers and so I would say the cases that came out

Bill Fuhrman: That said, those customers have all communicated that, again, for them to meet their earnings, they will ultimately have to deploy capital in these areas. And so we are beginning to see movement. Jim, what's your take on this?

Jim Connell: had an outsized influence on our results. That said, those customers have all communicated that, again, for them to meet their earnings, they ultimately will have to deploy capital in these areas. And so we are beginning to see movement.

Jim Connell: Again, for them to meet their earnings, they ultimately will have to deploy capital in these areas. And so we are beginning to see movement.

Greg Izenstark: We are beginning to see movement. Jim, what's your take on this?

Bill Fehrman: We are beginning to see movement. Jim, what's your take on this?

Jim Connell: Jim, what's your take on this? Chris, thanks for the question. Generally, when we speak to these customers, which span from coast to coast, the executives are telling us that they're settling into their new normal. And that will come with more of a steady flow of work in future years. Many of them have been more volatile in their own business here in the short run due to some of these fast moving, very dynamic changes in their business. But to be clear, the work that we are doing and the work that is being spent under these plans are safety mandated, required to ensure the safe and reliable delivery of both gas and electric.

Jim Connell: Yeah, Chris, thanks for the question. Generally, when we speak to these customers, which span from coast to coast, the executives are telling us that they're settling into their new normal, and that will come with more of a steady flow of work in future years. Many of them have been more volatile in their own business here in the short run due to some of these fast-moving, very dynamic changes in their business.

Speaker 17: Yeah. Chris, thanks for the question. Generally, when we speak to these customers which span from coast to coast, the executives are telling us that they're settling into their new normal. That will come with more of a steady flow of work in future years. Many of them have been more volatile in their own business here in the short run due to some of these fast-moving, very dynamic changes in their business. But to be clear, the work that we are doing and the work that is being spent under these plans are safety mandated, required to ensure the safe and reliable delivery of both gas and electric. We look forward to that settling in in the near future.

Jim Connell: Yeah. Chris, thanks for the question. Generally, when we speak to these customers which span from coast to coast, the executives are telling us that they're settling into their new normal. That will come with more of a steady flow of work in future years. Many of them have been more volatile in their own business here in the short run due to some of these fast-moving, very dynamic changes in their business. But to be clear, the work that we are doing and the work that is being spent under these plans are safety mandated, required to ensure the safe and reliable delivery of both gas and electric. We look forward to that settling in in the near future.

Jim Connell: Jim, what's your take on this?

Jim Connell: Yeah, Chris

Jim Connell: Thanks for the question.

Jim Connell: Generally, when we speak to these customers, which span from coast to coast,

Jim Connell: The executives are telling us that they are settling into their new normal, and that will come with more of a steady flow of work in future years. Many of them have been more volatile in their own business here in the short run.

Jim Connell: due to some of these fast-moving, very dynamic changes in their business.

Greg Eisenstark: But to be clear, the work that we are doing and the work that is being spent under these plans is safety mandated, required to ensure the safe and reliable delivery of both gas and electricity. And so we look forward to that settling in in the near future. Okay, um, the significant storm restoration work thus far, does that suggest that, relative to your guidance view, that you're expecting the third quarter margin to have a little more weight?

Speaker Change: But, to be clear, the work that we are doing and the work that is being spent under these plans are safety mandated, required to ensure the safe and reliable delivery of both gas and electric. And so, we look forward to that settling in in the near future.

Jim Connell: And so we look forward to that settling in, in the near future.

Bill Furman: Okay. The significant storm restoration work thus far. Does that suggest that, you know, relative to your guidance view, that you're expecting third quarter margin to have a little more weight to the second half? Yeah, I mean, we are a seasonal business, and across both our gas and electric businesses, the third quarter tends to be the most active from a volume and a workload perspective. So, not just storm, which obviously is most concentrated in the third quarter, but just across our business. The third quarter tends to be our most active, so that's correct.

Chris Ellinghaus (Sieber: Okay. The significant storm restoration work thus far, does that suggest that, you know, relative to your guidance view, that you're expecting Q3 margin to have a little more weight to the H2?

Jim Connell: Okay, um...

Speaker Change: The significant storm restoration work thus far, does that suggest that, you know, relative to your guidance view, that you're expecting third quarter margin to have a little more weight to the second half?

Greg Eisenstark: Yeah, I mean, we are a seasonal business, and across both our gas and electric businesses, the third quarter tends to be the most active from a volume and a workload perspective. So not just storms, which obviously are most concentrated in the third quarter, but just across our business, the third quarter tends to be our busiest, so that's correct. Right, but this year are you expecting that shape to maybe be a little more deviated versus the fourth quarter?

Greg Izenstark: Yeah. I mean, we are a seasonal business and across both our gas and electric businesses, Q3 tends to be the most active from a volume and a workload perspective. Not just storm, which obviously is most concentrated in Q3, but just across our business, Q3 tends to be our most active. That's correct.

Jim Connell: Yeah. I mean, we are a seasonal business and across both our gas and electric businesses, Q3 tends to be the most active from a volume and a workload perspective. Not just storm, which obviously is most concentrated in Q3, but just across our business, Q3 tends to be our most active. That's correct.

Speaker Change: Yeah, I mean, we are a seasonal business and across both our gas and electric businesses, the third quarter tends to be the most active from a volume and a workload perspective. So not just

Speaker Change: storm which obviously is most concentrated in the third quarter but but just across our business the third quarter tends to be our most active so that's correct

Bill Furman: Right, but this year you're expecting that shape to maybe be a little more deviated versus the fourth quarter. I mean, we're definitely off to a strong start in July. You know, the forecasts are what they are, and you know, we'll see what the rest of the quarter holds, but we're definitely off to a fast start. Right. Okay. All right.

Chris Ellinghaus (Sieber: Right. Expecting that shape to maybe be a little more deviated versus Q4?

Speaker Change #100: Right, but this year you're expecting that shape to maybe be a little more deviated versus the fourth quarter?

Greg Eisenstark: I mean, we're definitely off to a strong start in July. The forecasts are what they are, and we'll see what the rest of the quarter holds, but we're definitely off to a fast start. Right. Okay. All right. Good luck, Bill. Thank you. And, gentlemen, it appears we have no further questions today. Mr. Fuhrman, I'll turn things back to you, sir, for any closing comments. All right, thank you.

Greg Izenstark: I mean, we're definitely off to a strong start in July. You know, the forecasts are what they are. You know, we'll see what the rest of the quarter holds, but we're definitely off to a fast start.

Jim Connell: I mean, we're definitely off to a strong start in July. You know, the forecasts are what they are. You know, we'll see what the rest of the quarter holds, but we're definitely off to a fast start.

Speaker Change #101: I mean we're definitely off to a strong start in July . You know, the forecasts are what they are and you know we'll see what the rest of the quarter holds but we're definitely off to a fast start.

Chris Ellinghaus (Sieber: Right. Okay. All right. Good luck, Bill.

Bill Furman: Good luck, Bill. Thank you.

Greg Izenstark: Thank you.

Bill Fehrman: Thank you.

Speaker Change #102: Right, okay. Alright, good luck, Bill.

Operator: And gentlemen, it appears we have no further questions today, Mr. Ferman.

Operator: Gentlemen, it appears we have no further questions today. Mr. Fehrman, I'll turn things back to you, sir, for any closing comments.

Bill Fuhrman: Thank you.

Bill Furman: I'll turn things back to you, sir, for any closing comments. All right. Thank you. I appreciate everybody's attendance on the call today. Obviously, I'm moving on to AP, but I want you to know that the company is in great hands. The company is poised to go after all of this work that's going to be coming our way. No, there's no issues here. I purely went to AP because of an opportunity for me to do something that I'm very passionate about, but with Paul's leadership here, he and I have been colleagues for close to three decades.

Speaker Change #103: And gentlemen, it appears we have no further questions today. Mr. Fuhrman, I'll turn things back to you, sir, for any closing comments.

Bill Fuhrman: I appreciate everybody's attendance on the call today. Obviously, I'm moving on to AAP, but I want you to know that the company is in great hands. The company is poised to go after all of this work that's going to be coming our way. No, there are no issues here.

Bill Fehrman: All right. Thank you. I appreciate everybody's attendance on the call today. Obviously, I'm moving on to APS, but I want you to know that the company is in great hands. The company is poised to go after all of this work that's going to be coming our way. There's no issues here. I purely went to APS because of an opportunity for me to do something that I'm very passionate about. With Paul's leadership here, he and I have been colleagues for close to three decades. We think alike, we manage alike, we lead alike, and so I'm very comfortable that the strategy we have here in place will continue to move forward. We really appreciate your time today, and we look forward to further discussions.

Fuhrman: All right, thank you. I appreciate everybody's attendance on the call today Obviously, I'm moving on to the AAP, but I want you to know that the company is in great hands

Fuhrman: The company is poised to go after all of this work that's going to be coming.

Bill Fuhrman: I purely went to AAP because of an opportunity for me to do something that I'm very passionate about. But under Paul's leadership here, he and I have been colleagues for close to three decades. We think alike. We manage alike. We lead alike.

Fuhrman: Our way. No, there's no issues here. I'm I purely went to AP because of of an opportunity for me

Paul Caudel: to do something that I'm very passionate about. But with Paul's leadership here, he and I have been colleagues for close to three decades. We think alike. We manage alike. We lead alike. And so I'm very comfortable that

Bill Furman: We think alike, we manage alike, we leave alike, and so I'm very comfortable that the strategy we have here in place will continue to move forward.

Bill Fuhrman: And so I'm very comfortable that... Thank you all and take care. Thank you, Mr. Fuhrman. Ladies and gentlemen, that does conclude today's Century Second Quarter 2024 earnings call. Again, thanks so much for joining us, everybody. BF-WATCH TV 2021

Bill Furman: And so we really appreciate your time today, and we look forward to further discussions.

Paul Caudel: and the strategy we have here in place will continue to move forward. And so we really appreciate your time today, and we look forward to further discussions. Thank you all and take care.

Operator: Thank you all, and take care.

Bill Fehrman: Thank you all, and take care.

Operator: Thank you, Mr. Ferman.

Operator: Thank you, Mr. Fehrman. Ladies and gentlemen, that does conclude today's Centuri Q2 2024 earnings call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

Operator: Ladies and gentlemen, that does conclude today's second quarter 2024 earnings call. Again, thanks so much for joining us, everyone, and we wish you Centuri Holdings. Centuri Holdings.

Speaker Change #105: Thank you, Mr. Fuhrman. Ladies and gentlemen, that does conclude today's Century Second Quarter 2024 earnings call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

Speaker Change #106: ♪ ♪ ♪ ♪ ♪

Q2 2024 Centuri Holdings Ins Earnings Call

Request a DemoDemo

CTRI

Centuri Holdings

Earnings