Q3 2025 Quanta Services Inc Earnings Call

Want to say emphasis third quarter 2025 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow management's prepared remarks, and we would ask that you. Please hold all questions until that time I will then provide instructions for the question and answer session. As a reminder, this conference call is being recorded.

If you have any objections. Please disconnect at this time.

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

Thank you and welcome everyone to the Quanta services third quarter 2025 earnings Conference call. This morning, we issued a press release announcing our third quarter 2025 results, which can be found in the Investor Relations section of our website at Quanta services Dot com.

We also posted our third quarter 2025, operational and financial commentary and our 2025 outlook expectation summary on Qantas Investor Relations website, while management will make brief introductory remarks. During this morning's call the operational and financial commentary is intended to largely replace the managements prepared remarks, allowing additional time for question.

<unk> from the institutional investment community. Please remember.

Speaker #1: You're out That's not who we are . We're really gonna . We're focused on our customers and certain programs and where it can be more a total solution .

Speaker #1: That's . .

The information reported on this call speaks only as of today October 32025, and therefore, you're advised that any time sensitive information may no longer be accurate as of any replay of this call. This call will include forward looking statements and information intended to qualify under the safe Harbor from liability established by the private Securities Litigation Reform.

Speaker #1: Much like what you've seen with NiSource in Indiana . We want that total solution . We're not going to , you know , if it's a one off , I do not believe you'll see us in that arena there .

Speaker #1: can , you know , unless it makes total sense . But I doubt it . I think we're going to be extremely selective here on how we go to market with with combined cycles .

<unk> of 995, including statements, reflecting expectations intentions assumptions or beliefs about future events or financial performance or that do not solely relate to historical or current facts.

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

Speaker #3: Our next question is from Nick Amicucci from Evercore . Please unmute your line and ask your question .

Speaker #4: Hey guys , can you hear me ? Yep . Hey . All right . Perfect . I just wanted to kind of touch upon .

We will also present certain historical and forecasted non-GAAP financial measures reconciliations of these financial measures to their most directly comparable GAAP financial measures are included in our earnings release and operational and financial commentary.

Speaker #4: So just given , you know , kind of the the massively increased demand for , you know , natural gas as the feed fuel .

Speaker #4: I mean , have you guys been having some conversations ? Obviously , you know , the pipeline business is kind of is targeted to be down this year .

Please refer to these documents for additional information regarding our forward looking statements and non-GAAP financial measures lastly.

Speaker #4: Just just kind of thinking about the the available infrastructure currently within the United States . And then , you know , the need , the inevitable need for some more .

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Speaker #4: Just wanted to get a sense of , you know , are people starting to talk about that or is it still very early innings ?

Speaker #1: No , I mean , I think we have , you know , probably a conversation every day about a piece of pipe . I when I , when I think about it , though , I wouldn't when I go into next year , it's 500 million .

With that I would like to now turn the call over to Mr. Duke Austin, Qantas, President and CEO Duke.

Thanks, Kip good morning, everyone quantum delivered another quarter of strong results achieving double digit growth in revenue adjusted EBITDA and.

Speaker #1: That's what we're going to get . And we're not going to unless we have booked work against it . We're not going to get ourselves in a position where that's something that the company is focused on , and we'll build it .

And adjusted EPS compared to the prior year, along with record backlog of $39 2 billion and a number of other record financial metrics.

Speaker #1: We certainly see it . We have great customers there . We'll be selective . The risk profiles and everything else on large diameter pipe .

These results reflect accelerating demand in our electric segment.

Speaker #1: And it's lumpy . We're trying to be a compounder of earnings and give good guidance for multi years and decades . In fact .

Robust activity across our end markets and positive momentum headed into 2026.

Speaker #1: So it's hard to do when you're when you're with lumpy the lumpiness of big pipe . It's just not us . And so I think yeah we can build you know billions in pipe .

They demonstrate the strength of our portfolio the capability of our craft skilled workforce and our ability to provide certainty through world class execution as customers modernize and expand critical infrastructure.

Speaker #1: It's just a matter of the client needs us to , to , to do it . And we'll have to do it in a way that we can de-risk ourselves .

Our performance continues to be powered by quanta as core drivers craft skilled labor execute.

Speaker #1: I don't like the weather risk . And that risk , bunch of different things there . If we can do risk ourselves , we'll build it all day .

Execution certainty and disciplined investment, which are critical to how we operate and create long term value.

Speaker #1: And I do think the opportunity is there . It's a good market . And , you know , certainly you can see it .

Our craft workforce remains the foundation of our business.

Executing with safety quality reliability across diverse infrastructure solutions.

Speaker #1: It's still tough at the state level . And permitting . We're not past that yet .

Execution certainty reinforces our reputation as a trusted partner capable of consistent high quality project delivery and disciplined investment ensures capital is allocated toward opportunities.

Speaker #4: Got it . Perfect . Thank you .

Speaker #3: Thank you . Our next question is Amit Thakur from BMO . Please unmute your line and ask your question .

Speaker #4: Hey , guys , can you hear .

Speaker #5: Me ?

<unk> our platform.

Speaker #6: Hey . Hello .

Speaker #1: Good morning .

Customer relationships and support sustainable growth.

Speaker #5: Hey . Good morning . Thanks for the time . You're one of your earnings supplements . I think . Kind of said that your solar and storage backlog increased pretty significantly versus last quarter .

One is the integrated solution based model continues to differentiate our platform.

Combining craft labor with engineering technology and program management expertise and critical supply chain capabilities, we deliver comprehensive self performed solutions across the full infrastructure lifecycle.

Speaker #5: I was just wondering if you guys could provide a little bit more color on how much did it increase ? And then what do you guys see as the kind of drivers of that ?

Speaker #5: Is that more from the legislative and safe harbor certainty , or is this kind of just more follow through from the power demand environment that's out there ?

This approach deepens customer partnerships and positions quanta as long term collaborator not a traditional contract.

Speaker #5: Thanks , guys .

Speaker #1: Thank you . Our renewable business hasn't let up . You know , we said it last , but I'll say it again . It's just .

I Wanna operates at the center of a fundamental transformation in the energy and infrastructure sectors.

Speaker #1: Lnps are coming into NPS . I nothing nothing new . I think we're growing the business . You know , obviously power is in need .

The convergence of the utility power generation technology, and large load industries is driving increased demand for resilient grids.

Speaker #1: And if you can build it faster with renewables and batteries , that's what's happening . The fastest thing to market right now is we'll be all encompassing in power and generation .

<unk> generation and storage and new infrastructure to support electrification.

Data centers and domestic manufacturing.

These structural drivers are fueling a generational investment cycle and critical infrastructure.

Speaker #1: The fact that we put in this , you know what I consider a total solution now , it will continue . And I think backlog in the renewables side has been great .

And Qantas diversified scalable platform is well positioned to capitalize on these opportunities.

Speaker #1: The inbounds are great . And I don't think it's pulling . I think it's just the normal course . And we're seeing a nice market there .

To that end. This morning, we announced the expansion of our total solutions platform that builds upon our world class craft skill labor capabilities and history of constructing more than 80000 megawatts of power generation through our industry, leading renewable energy and battery energy storage solutions.

Speaker #1: We continue to see it . Battery storage businesses fantastic . We're happy with where we sit in the market . And now that we can provide a , you know , a larger solution , I think it's great .

Speaker #1: And you'll continue to see us follow our customers . I mean , if you look at our bigger customers and look at what they're saying , I think we're right there in front of them or right there with them .

As well as other forms of generation.

Our total solutions power generation platform Leverages these capabilities to address growing generation and infrastructure needs due to the rapidly increasing demand for electricity from data centers manufacturing and reassuring industrialization electrification and power grid expansion.

Speaker #1: And that's important to us to be able to say yes to a customer when they ask us to do something , and they ask us to go with them , that we can say yes and have the capabilities to do so .

Speaker #1: You know , the 67 , 68,000 employees we have out there at they're fungible in many ways that we can move them around .

This platform is focused on providing a fully integrated solution to high quality customers for their generation development strategies as.

Speaker #1: We have to do a great job up here of making sure that we have the , you know what I consider the end markets to move to .

As a demonstration of this platform strength and scalability nice sources engaged <unk> for a design procurement and construction execution of generation and infrastructure resources capable of producing approximately three gigawatts of power for a large load customers.

Speaker #1: And we can be more selective . And we have been so that renewable piece is part of it . We're building a lot of renewables in Indiana .

Speaker #1: And so that same workforce will move over and do some CGT work . So I just think we're really fungible . We're happy with where we sit and I was broad based and we have not put the big , bigger projects in it .

This project highlights the strength of our total solutions platform spanning power generation battery energy storage transmission substation and underground infrastructure and underscores the value of our collaborative approach and builds on our relationship with <unk> and strong presence in Indiana.

Speaker #5: Thank you .

Speaker #3: Thank you . Our next question is from Justin Hawk from Robert W Byrd . Please unmute your line .

We believe these announcements reinforce our strategy to lead in large converging markets, where utilities power consumers and industrial operators require scalable integrated solutions.

Speaker #7: Great . Thanks for taking my question here . I guess I just wanted to build on on Jamie's question . That , you know , the thing , you know , I guess you guys have always , you know , self-performed so much of your work .

We expect to achieve record backlog and another year of double digit earnings per share growth in 2026.

Speaker #7: And that's a way that you've mitigated risk . And so just with the joint venture , maybe you can clarify kind of what's in your wheelhouse that you'll be doing and what's in Zachary's in terms of the , the combined cycle gas plants .

Our strategy remains focused on delivering certainty to customers.

Speaker #7: And then also just on the margin profile , I know you're not looking to do kind of discrete one off plants , but I guess how we would think about it as historically the the margins on those have been a little bit lower than , than the grid work .

<unk> and talent and technology, and expanding our addressable markets through disciplined strategic growth.

Quanta is resilient solution based model has performed well through varying market conditions.

Speaker #7: Just because the utilities , the ROE , you know , are lower on that CapEx versus the spend on grid with some of the adders .

Our strong execution disciplined investment and commitment to safety and quality continue to differentiate our platform and support sustainable value creation for our shareholders.

Speaker #7: So anything different from the margin profile on the work , that would be coming in on that . So those those are the questions .

I will now I'll turn it over to Jay Street, Assai, Qantas CFO to provide a few remarks about our results and 2025 guidance and then we will take your questions Jay Shri.

Speaker #7: Thank you .

Speaker #1: Yeah . As far as who's performing what , I mean , both of us can can perform , you know , total solutions .

Speaker #1: So I so I think , you know , they're better at certain things than we are . And we'll , we'll make sure from an engineering standpoint , they're certainly have the engineering staff and the capabilities there .

Thanks, Dave and good morning, everyone. This morning, we reported third quarter results with revenues of $7 6 billion net.

Net income attributable to common stock of $339 million or $2 24 per diluted share.

Speaker #1: So the front end side of it , the back end side of it make a lot of sense for Zachary . And then of course , we'll balance each other across the plant , whether it's internal subcontract .

Diluted earnings per share of $3 33, and.

And adjusted EBITDA of $858 million.

Speaker #1: How we decide to do it . But we're capable of doing the whole thing .

Based on our continued backlog momentum and strong revenue growth during the quarter, we are raising our full year revenue expectations to a range of 27 eight to $28 2 billion.

Speaker #1: have a great presence there . We'll work with the client on that to make sure that we're we're pulling in local kind of into into the state as well as we have , you know , offices there .

We are also raising our full year free cash flow expectations to $1 5 billion at the midpoint driven by another quarter of healthy free cash flow, which totaled $438 million.

Speaker #1: We can perform all the mechanical and self-perform , all the electric , you know , basically can do it all . I just , you know , it's kind of a 27 , 28 build , you know , with the ramp in 28 , 27 , 28 .

During the quarter, we issued $1 5 billion of notes to recapitalize, the balance sheet and enhance our liquidity position following the acquisition of dynamic systems.

Speaker #1: And we'll just have to see where we're at there . But and we have all those capabilities internally . We'll just balance each other there as far as margin profile , I would tell you it's that parity or better in the segment .

The interest rate on these notes was approximately 40 basis points lower than our issuance in the third quarter of 2024, reflecting the benefit of our recent ratings upgrade and the stability of our earnings outlook.

Speaker #7: Appreciate it . All right . Thank you . Congratulations .

This transaction reinforces our ability to support operations maintain financial flexibility and deploy capital strategically while preserving our investment grade rating.

Speaker #6: Thank you .

Speaker #3: Thank you . Our next question is from Phil Shen from Roth Capital . Please unmute your line and ask your question .

Our customers continue to value Kuan has differentiated self perform craft labor solutions, and we are expanding our platform for growth as evidenced by the power generation platform, we announced today.

Speaker #8: Hi , guys . Can you hear me ? Okay .

Speaker #6: Yes . Hello .

Speaker #3: Please go ahead .

Speaker #8: Hey , guys , can you hear me ? Okay .

These dynamics, coupled with another quarter of record backlog gives us confidence in our ability to drive sustained revenue and earnings growth over the coming years.

Speaker #1: Loud and clear .

Speaker #8: Okay , great . Thanks . Hey , I know you haven't given guidance for 26 , but as we wind down 25 , can you share what the growth trajectory for organic growth might look like for 26 ?

As we look toward 2026, the end market momentum and our consistent execution position us to deliver another year of double digit adjusted EPS growth and attractive returns.

Speaker #8: Perhaps . Comment on the different outlook for electric infrastructure and UI . If you can't take that , perhaps you can comment on the margin profile , the expanded total solutions platform compared to the current electric power margins , is the deal with NiSource margin accretive or in line with current run rate ?

We believe the opportunities ahead represent the next phase of a generational investment cycle in critical infrastructure and quanta is well positioned to lead through delivering consistent performance disciplined capital deployment and long term value creation for our stakeholders.

Speaker #8: Thanks , guys .

Additional detail and commentary on our 2025 financial guidance can be found in our operational and financial commentary and outlook expectation summary, both available on our Investor Relations website.

Speaker #1: It's in line or accretive on the first . On the last question , as far as guidance and where we're at , I mean , I look , I on 25 , we're right on line .

Speaker #1: You know , you know , see some say $10 million or one way or the other on 2.8 billion . I wouldn't get worked up about it .

With that we're happy to take your questions operator.

Speaker #1: We hit it down the middle . And I think we we've taken into account a lot of things and getting conservative guidance , more importantly , when we look at guidance , I mean , I'm looking at 28 , 29 .

Thank you we will now move to a question and answer session for today's session, we'll be utilizing the <unk> Cta by the retina, if you'd like to ask a question simply click on the right hand button at the bottom of your screen.

Speaker #1: We're saying we've floored it at ten kind of 15% EPs adjusted EPs at the midpoint , given all levers of the balance sheet in 20 is what we've done .

Galligan, Please presto nine to raise your hand and still seeks to one meet once you've been co. Don Please on mute yourself and again to ask a question again that still going to raise your hand and still seeks to one you can feel it dialed in we also all participants limit themselves to one question. If you have additional questions you may re keene and those questions will.

Speaker #1: So I don't know . I think I've given you five year guidance as far as I'm concerned , outward . And so I don't , you know , that's the guidance .

Speaker #1: And it'll be somewhere in there when we when we go to the street .

Speaker #8: Great . Thanks guys .

Be addressed time permitting.

We will now pause amendment to assemble a key.

Speaker #3: Thank you. Our next question is from Chad Dillard from Bernstein.

Our first question is from Steve Fleishman from Wolfe Research. Please on mute your line and ask a question.

Speaker #9: Hi , guys . So a big a big a big picture question for you guys . So over the medium and long term , how do you think the power to serve large customers like data centers .

Hi can you hear me.

Hey, He's got Dave Yes, we can good morning.

Speaker #9: Is it the Genco model like we're seeing with NiSource . Is it behind the meter . Is it traditional grid connection ? I know it's a combination of all the above , but we'd love to get a sense for like how you think that mix evolves .

Yeah, Okay, great. Thank you I appreciate it.

Okay, I will follow the rule and try to stick to one question.

The.

Yesterday, we heard from AEP talking about.

Speaker #9: And then I guess, secondly, when it comes to the JV, just announced, how do we think about the contract structure?

Potential partner for their high voltage transmission opportunities.

Speaker #9: And just like how you guys are thinking about bidding , is this competitive ? Is it open book any color that would be helpful ?

Maybe I'm curious if you could comment on.

Whether that would likely be U and then also just how much of the.

Speaker #1: I mean , I think it's all of the above . When you when you look at these things , you know , some of it we're certain on , we don't have any issues with that .

Kind of high voltage transmission, that's being discussed in Texas PJM has kind of already in any backlog or is that all mainly to carbon.

Speaker #1: We can as long as we can scope it and feel good about it , we're happy to have lump sum on things . It doesn't .

When might we see it.

Speaker #1: You know , we're we can do that . But if it's if it's stuff that we don't understand , we'll de-risk ourselves . You can expect that .

Yes, thanks, Steve with AEP look, they're a large customer of ours have been for many many years, we have great relationships. There I do think we're collaborating on 765 capabilities and doing a lot of different things together.

Speaker #1: I mean , I've said it publicly , we're not going to take risk on these larger projects with our labor and our labor force and everything we have for certainty .

Speaker #1: It's not the right answer for the client . And so I think us working together , preplanning early and upfront is extremely important for us .

So I do theres more to come there with us, but as we sit today.

None of the 765 is in our backlog we have lots of discussions lots of variables you have LNG peas, all kinds of different things, but none of that is in the backlog at this point, it's something that we're taking our time with it to make sure we get it right.

Speaker #1: When we look at the future, you know, of how we build things, especially today.

We're setting the resources and making sure internally that we have the training done and working with the clients on this in a collaborative manner I do think there's opportunities for us we've made investments in our transform facility and done some 16, Claire collaboratively collaboratively with our clients. So yes, we have a great relationship there.

Speaker #3: Thank you . Our next question is from Sharif Al-sabahi from Bank of America . Please unmute your line and ask your question .

Speaker #4: Hi . Good morning .

Speaker #10: I just wanted to touch on M&A a bit . Just as your backlog builds on multi-year demand , would you ever consider shifting your M&A focus to complement your craft labor pool by acquiring smaller service providers , or do you feel that the steps you've taken internally to grow the labor pool are able to match the .

Probably more to comment on I like our chances on the on the sensor hub.

Great. Thank you.

Thank you. Our next question is from Andy Kaplowitz from Citigroup.

Speaker #10: Workload that you want to take on in the coming years ?

Okay.

Yeah.

Good morning, everyone.

Speaker #1: Yeah , I mean , we don't buffer capacity . We never have . It's strategy . Totally . And so when I when we think about it , we're filling a strategic gap .

Good morning, Bonnie.

<unk>, obviously, the total solutions platform announced today I think can provide a whole new driver of backlog growth, but how do you think about execution risk for these larger in total solution jobs that include power generation I don't think you ever really less power generation, particularly as you know when you're focused on the bigger power generation.

Speaker #1: You could expect us to do so. I think we've done a nice job with that. We've stayed in front of the vertical supply chain.

Speaker #1: We don't talk about that much , but I think we've done a really nice job of our vertical supply chain and what we can do with that .

Speaker #1: We continue to add there. I think we have probably ten projects ongoing that are enhancing our vertical supply chain that doesn't get talked about.

You've had a little more variable performance. So can you get favorable terms and conditions and get comfortable how do you protect quanta as you one of these larger jobs.

Speaker #1: And so we were going to , you know , from our standpoint , we're filling the needs of the solution based approach for our clients .

Yes, I mean, great question, when we think about it we built eight gigs of of generation and Zachary has built six of 14 gigs, but together they built 100 cdt's. So when I think about it we put a great partnership together, we collaborated significantly with the client for not only for us but for the.

Speaker #1: And we'll continue to do so . We're adding fabrication . We're adding just about everywhere . But it's all strategic around the client .

Speaker #1: And I you know , look I would say we're we're ahead in that . And we'll continue to buy great family companies . It may use difference in how we think about it .

And users ratepayers as well as the loss of load customer. So I think when we look at it in a holistic manner and total solutions, we were able to put together what I consider de risked both sides here on.

Speaker #1: The culture and the company mean so much more than anything else, and we start there. And does it fit the strategies next?

Speaker #1: And then the financials will be after . But you can't you know , as far as I'm concerned , we pay a nice what I consider multiple for a great company .

Cost escalations and things of that nature, We've said publicly that we're not taking risk on these kind of <unk>.

Speaker #1: And you know we you've seen us go from civil to transformers to other things . They all have a purpose and they all have a strategy .

Jackson I think we've done a great job of working with the client here in a collaborative manner too.

What I consider give the ratepayer the right.

Speaker #1: We'll continue to leverage that strategy as we move forward in great markets that we have with technology and utilities .

Cost as well as the end user which is large load customers have the right cost. So it's really I think when we plan when we get in front of these things we can give a total cost solution and any risk everyone in the value chain and we've done that.

Speaker #3: Thank you . Our next question is from Brent Tilghman from D.A. Davidson . Please unmute your line and ask your question .

Thanks, Steve.

Okay.

Thank you. Our next question is from Steven Fisher from UBS. Please on mute your line and ask a question.

Speaker #6: Hey , great . Thanks so much . Do a bit of a follow on to that last question , but when you look across this sort of massive craft workforce , you've accumulated here , are there trades in particular where you see real , real scarcity such as it's actually somewhat of a limiting factor to your growth .

Thanks, Good morning so.

In 2019, you rolled out this utility services model, which reduce the reliance on larger discrete projects and focused I guess it was around 80% plus or so more on kind of utility services and I think thats.

Speaker #6: The growth's been good . Obviously , and maybe we're your especially focused on sort of recruiting talented folks out there .

Speaker #1: Yeah I think you know we've added about 6000 with acquisitions . So this year a little over . So you know , Porter year .

Obviously been a very very successful strategy and I'm just curious how we should think about.

I will review or your overall strategy I know obviously it is very heavily focused on being a solution provider in this new platform I think you would say is.

Speaker #1: So when you think about it , I mean we we've invested in that skilled workforce and our colleges , our campuses and everything we've done their curriculum .

Speaker #1: We can move that curriculum into all all phases of craft . Now . I mean , we're early in our technology piece . Cupertino acquisition was a great platform that inside Wireman like , as far as I'm concerned , is scarce .

Clearly part of providing solutions, but just.

Just curious.

How we should think about framing the strategy between being sort of this more base level of recurring services type strategy versus more of a <unk>.

This street EPC project delivery that may be a little bit lumpier.

Speaker #1: Is probably where you see scarcity . We've been able to add fabrication . We continue to add pre manufacturing . Let's call it , you know , pre manufactured products .

Yeah. Thanks, Steve look I think when you look at the company nothing has changed.

Speaker #1: There that are allowing us to scale it . But but I think that's probably when , when I think through it we'll continue to beef that program up and add faster to our inside wireman .

We certainly believe that cross close at the core it's fungible, we'll move across different platforms from msas to larger projects and installed the.

Our system based approach to the client.

Speaker #1: And now we're in plumbing, mechanical, and all kinds of trades. They're from our mechanical business. So, you know that's next, and we'll continue to add curriculum.

We're not going to turn down.

Because work because it's a large project I mean, I think that's part of this projects are getting bigger.

But were working for our clients that we work for.

Speaker #1: Some kids don't want to get in the air and some some of these businesses are more local than others . So so on our high voltage , we travel .

Now decades and that Hasnt changed we continue to do that we're also.

Speaker #1: We camp . They're starting to do more of that on the inside . But it was predominantly local . So we have to build these locals much , much stronger .

Discussing technology is a tan and I believe we are addressing that and so our clients. There. We've worked for decades. So as we look at both sides of this.

Speaker #1: And you'll see us do that . You'll see us add there . But but in general , I would tell you the inside piece of it and the mechanical piece , we're early , so that's where the gap is for us .

And I would tell you that we're still around 80% of base business even with.

What you see today now we've talked about this before I do believe you're going to get into a period, where you start stocking large projects on top of that base and I've been consistent in that you are just now starting to see it show up so I would expect the backlog to continue to increase I would expect us to stock and continue to.

Speaker #1: And try to enhance that as quick as possible .

Speaker #6: Okay . Thank you .

Speaker #3: Thank you . Our next question is from Mike Dudas from Vertical Research Partners . Please unmute your line and ask your question .

Nor the Powerplant, nor Greenville is in our backlog and we continue to stack. So at the larger projects <unk> No 765 in there.

Speaker #11: Good morning , Chip Jay Shree Duke Duke , given the you know , the demand you're seeing and the tightness and capacity are your customers starting to recognize they need to secure your your time , your MSA , your resources at a more quicker rate ?

I really like our chances of stacking is for decades or more and we're giving long term growth profiles, we're doing the things that we need to do to be a consistent compounding earnings platform.

Speaker #11: And is that could lead to maybe better scale and execution on margins as we move forward . And maybe an answer to that .

Good stuff. Thank you.

Thank you and our next question is from Sanjay <unk> from Keybanc.

Speaker #11: Any concern on how the industry is going to pay for all this , all this capacity that's coming through , certainly living in new Jersey , we've been seeing a lot of issues on rate rates going up , etc.

Great. Thank you for taking my question. So can I ask a follow up on the JV that you announced this morning.

For the large loan center.

Speaker #11: I just wanted your thoughts on on how that's the places you're talking to . Utilities and your developers .

I mean that this is mostly all your basic high voltage work that you do but I am wondering if there is a potential to add further scope to this with the customer so for low voltage electrical and mechanical work.

Speaker #1: Yeah , I mean , I think for is always an issue , you know , fuel is is a big piece of the bill .

Speaker #1: I mean , 60% and interest interest going down . You got to look at your fuel as well . And so that's those two are big pieces of a bill .

Now I'll say again this is a full full CDT I mean, it's a full bill.

It's a 50 50.

Speaker #1: Now , you know , I do think you're going to see large transmission get built and things of that nature . You know , PJM is shares shares , you know , sharing of infrastructure .

Certainly we have aspects of this that.

We will perform that.

Internally and then Zachary has aspects of this adult performed really well so it's a full JV a full turnkey project in.

Speaker #1: So , you know there's different models out there . But I go back to I think if you look at technology and look at where the loads come in , you haven't built a transmission line in the United States .

It's electric scope too I think youll see.

And the program itself.

<unk> will continue to see some stocking there with it.

Other other things and opportunities, but in general what you see is us building out that platform of.

Speaker #1: It's not NPV positive . Number one . Number two , generation . The more generation you can see it with , the NiSource example , where the rate payer is actually benefiting from the load .

What I consider from the CDT, three gigs and batteries around it and that's what we're building.

Speaker #1: Those models are out there . And I do think technology is willing to pay their way . So you're seeing utilities and technology come together for for what I think is the benefit of the ratepayer here .

I hope I answered your questions.

No. That's good. Thank you. Thank you Dave.

No.

Thank you. Our next question is from Julien Dumoulin Smith.

Speaker #1: And it's taken a little bit of time , but as that goes forward , I , you know , look , we all have to be prudent and watch the affordability piece of this .

Please.

Your line and ask your question.

Hey, good morning. Thank you guys very much for the time I. Appreciate it look if I could follow up a little bit on this on this question of scope of business. Obviously, you guys are expanding into the more of the generation side, but how do you think about expanding more into the data center side, specifically right Youre talking about pursuing generation here, specifically for large loads how about getting.

Speaker #1: But the NPV on the other side of it is a downward trajectory . So I like what I see . I think we'll get there .

Speaker #1: And you'll see , you know positive effect to the ratepayer . We all have to be cognizant of .

Sort of inside of the house, obviously, you guys have done a couple of acquisitions here.

She remains of your strategy to continue to ramp and expand the scope more directly here.

Speaker #3: Our next question is from Alex Regal from Texas Capital Securities . Please unmute your line and ask your question .

How do you think about that the rate of growth there in specifically.

Yeah, Julian I mean, I think we're down to a show at this point.

Speaker #1: When Alex .

What I can.

Pork slaughter.

Speaker #12: Good morning . Thank you . Nuclear power is gaining momentum here . Can you talk about how quantum might get involved in that ?

Basically build a building.

The customers and how we look at it in a solution base, if they ask us to build a plan or what I was sort of the total data center, we can build it.

Speaker #1: Yeah . I mean , look , I as long as we don't have to go behind that , what I would consider Nurk fence and the nuke fence we're good I mean I think once you get behind there we have to de-risk ourselves and think hard about it .

The MEP piece of it we can go we can grade we can do whatever necessary I think we'll have those opportunities will probably work with a general here or there on that.

Speaker #1: It's not something that the companies jumping up and down to take a risk on . So we're always around the edges on things .

But look we're in a position to where we can we can build basically the whole data center, we can build a generation behind it.

Speaker #1: And I think as long as we can do the things that we know how to do and stay out of the nuclear fence, we feel real comfortable.

All the way the rack so.

A real comfortable with how we positioned ourselves to take advantage of these opportunities they want to go fast.

Speaker #1: But we're not the reactor person and we're not the person inside the fence . You know , there's a lot of ancillary things we can do and will do , but once , once we cross the line of that , that fence , it's not us .

One person and we can do that so it's also working with the client the utility as well and how that converges I think is where the real opportunities for us is that convergence of generation labor certainty.

Speaker #2: Thank you .

And where do we sit in that in that sphere. There. So I like it that we're in front of it I do think we have a lot of opportunity to continue to build out scope with technology.

Speaker #3: Thank you . Our next question is from Brian Brophy from Stifel . Nicolaus .

Speaker #4: Thanks . Good morning everybody .

Excellent we'll hear about it growing next year maybe.

Speaker #13: Just following up on the Nighthawks project. Curious if you can comment on whether this is structured as a cost-plus or a fixed-price project.

Yep.

Thank you. Our next question is from Jamie Cook from curious seeking teeth, Keith Amit Your line and ask your question.

Speaker #13: I would assume it's fixed price , but I think you've alluded to in the past potentially structuring those on a cost plus basis to de-risk it .

Can you hear me.

Unclear.

Speaker #13: Just curious if you can provide any color . Thanks .

Oh, great I finally figured out at this time.

Speaker #1: Yeah . I mean , we're not going to get involved in what kind of contract structure we have , but I would just say , look , I stand by my comments previously that the company on these type of projects are not we're not going to take certain kinds of risk on them .

Anyway, so Duke.

Just wanted to build on.

In your announcement this morning, with the total solutions power generation platform and the joint venture with <unk>.

<unk> adds build power plants I guess, just taking this a step further.

Speaker #1: And so I feel comfortable with where we sit . They're comfortable with the contract and I can look everyone , all the investors in the eyes and say everything I've said about risk on a combined cycle .

This is sort of unlike UK store in a joint venture with someone sell.

I'm just thinking longer term is there anything you're dipping your toe in power generation and getting more comfortable to what degree do you think you need to do an acquisition.

Speaker #1: We have not taken that . So I'm happy with where we sit , happy with the contract structure . That's it's a collaborative structure with the client that allows both , both to to come out , you know , in a way that we can be risk both of our , our selves and get the right answer to the ratepayer as well as a large , low customer .

And acquire someone.

Could you full EPC.

Power plants I think this is steffen.

Getting your talent and over time, we do an acquisition. So you can do everything I guess by yourself.

Yeah.

Yes, Jamie I look at it like we're listening to our customer and they're asking us to expand our services.

Speaker #1: So I , I like where it sits . I'm not going to get into exactly what the structure looks like . Abby did a great job there , and I'm extremely pleased with where we sit .

I believe we have the capability to do so so we're working with select customers on this and longstanding customers on power generation and I do think it's a great business for the foreseeable future.

Speaker #1: And we have a great offering with Zachary built 100 plants and ourselves , built eight gigs of generation . I'm super happy with how we sit and you know , Indiana and what we're doing there for the local economy .

Zachary It was a great company very much valued the same as it is us.

Well no the family well.

Speaker #1: I , you know , it's a great partnership with NiSource . I hope it continues . And it should .

Great opportunity for us to work together on some things that they do better than us and we have the capabilities internally to do everything. So today, we felt like this was a great.

Speaker #13: Appreciate it. I'll pass it on.

Speaker #3: Thank you . Our next question is from Mandloi from Mizuho Securities . If you'd like to unmute your line and ask your question , please .

Venue for us in Indiana to work together.

Built this plan.

Risk is always concern me in these combined cycles and I believe we've done a nice job here of working collaboratively with the client so.

Speaker #12: A .

Speaker #10: Morning and thanks for taking the question here . Maybe just want to question the JV and maybe just for Jeffrey . So can you just talk about the accounting here .

I feel real comfortable with that yes, we can expand here it can be.

Speaker #10: And it seems like 5050 JV and nicer about six $7 billion CapEx . So could we assume that 3 billion coming to a backlog here ?

Large.

What I consider opportunity for the company and we will take advantage of it but in select cases.

Speaker #10: And in terms of the Rev , could you share that or to think about that here ? Thanks .

Im not going to get pressure to go.

Sign up 10 combined cycles is not who we are and we'll make sure that we limit ourselves to strategic partners.

Speaker #1: Yeah , I think the backlog will be incremental on that . So you can I would tell you the larger piece of that is air permits .

That will collaborate with us on a total solution. This is a large program. It's very much a solution for us and I think we've done it the right way with the JV to mitigate some risk for the client and ourselves. So I think it's the smart way to kind of for us to go into Indiana and the other places other kind of machines, we would look at it differently, but.

Speaker #1: It'll hit , you know , second half of next year that'll come into backlog . And you should look at our piece of it similar to Zia .

Speaker #1: You know , how it kind of stacked up . And that's how we look at the thing . And as far as the combined cycle , it's 5050 .

Speaker #14: Yeah . And the accounting on that , as we said , would be proportional . So we'll just the income statement will reflect our share of that work on from the revenue all the way down to the profit and balance sheet as well .

For this one this is a great opportunity for us.

I think what we've leveraged our capabilities along with salaries to have a complete.

Speaker #14: .

Speaker #1: There's parts of it , the battery and things like that are straight to quanta and parts of it that are part of the JV .

Solution for the client.

Speaker #14: Yeah . And just to , just to make sure that , as Duke said earlier , we the backlog will reflect as the work progresses .

Thank you.

Sure.

Our next question is from <unk> <unk> from Goldman Sachs. Please on mute your line and ask your question.

Speaker #14: So we're an phase now . We'll move forward in those things as as do mention , there's an air permit that has to get has to be obtained middle of next year .

Hey, guys good morning.

Just wondering as you think.

As we think about the JV opportunities in general is there a way to think about.

Speaker #14: That's when it really hits . And so you can expect most of the revenue pickup . And as Duke was saying , is it starts in the back half of 26 .

With the dollar value of the project.

Maybe on a gigawatt basis.

Whatever you would like to guide us.

Speaker #14: And really more into 27 and 28 .

And what's the view on the total market opportunity that you have for <unk> as it stands today and what is a reasonable market share for you.

Speaker #1: Yeah, there won't be anything meaningful. And I mean, as far as going to construction or revenues in Q3 2025.

I think it's been kind of look at the JV is just kind of when we think about it our portion of it.

Speaker #15: Correct .

Speaker #2: Thank you .

It's the whole thing is similar to his son's here I mean, I think that's how you have to look at this and how we're looking at it we have half of CTG, but on the other side of that quantity.

Speaker #3: Thank you . Our next question is from Adam Ballmer from Thompson Davis .

Speaker #10: Hey , good morning guys .

Speaker #2: Nice quarter .

Speaker #15: Thank you .

Speaker #16: If you can comment on the dynamic acquisition , how the integration is going , what kind of demand you're seeing generally in Texas and what would be your appetite for more mechanical construction acquisitions ?

Direct.

Are there opportunities there with batteries and other things. So I think I would look at it like <unk>.

Non standpoint from a revenue base.

Although the JV will be half or 50 50 on that day. So he can walk through the accounting, but it's 50 50.

Speaker #1: I mean , I think we're extremely pleased with the acquisition . We brought a great family business , long standing . I everything that we thought we'd do it ten times over .

And as far as the market, but that wouldn't get it all other it up that we're going to go after all the <unk> that are out there.

Who we are we're really we're focused on our customers and certain programs and where it can be more of a total solution much like what you've seen with nisource in Indiana, we want that total solution, we're not going to.

Speaker #1: I , I feel like as far as how it's integrated with our offering now , I mean , the inbounds and what we can do certainly picked up on the mechanical side .

Speaker #1: We're addressing pressing them . We can do a lot from fabrication . They already had large facilities and , a broad based service offering .

If it's a one off I.

I do not believe Youll see us.

And unless we can unless it makes total sense, but I doubt. It. So I think we're going to be extremely selective here on how we go to market with combined cycles.

Speaker #1: Will expand it very quickly , much like we've done . Cupertino and Blattner . So I think you can see that type of expansion with DSI as far as mechanical , I , you know , look , it's trades as long as it fits the profiles and the trades .

Thank you.

Sure.

Speaker #1: We would look at it , you know , it's something we're starting . We'll work with the ACI to look at , you know , opportunities as they come in .

Our next question is from Nick <unk> from Evercore. Please on mute your line and ask your question.

Speaker #1: Nothing imminent . But but we'll continue to look at that offering . I like the business . It's obviously you know , we have peers there and they've done a really nice job there ahead of us .

Hey, guys can you hear me yes.

Hey.

Alright perfect.

Just wanted to kind of touch upon so just given kind of.

Speaker #1: But you know, we're catching up pretty quick. And I like where we're going.

The massively increased demand for.

Natural gas as the feed fuel I mean have you guys been having some conversations obviously the pipeline business is kind of.

Speaker #2: Thanks , Duke .

Speaker #15: Sure .

Speaker #3: Thank you . Our next question is from Joe Osher from Guggenheim Partners . Please unmute your line and ask your question . Please .

Duke Austin: That are out there. That's not who we are. We're really going to. We're focused on our customers and certain programs and where it can be more a total solution, much like what you've seen with NiSource in Indiana. We want that total solution. We're not going to, you know, if it's a one off. I do not believe you'll see us in that arena unless we can, you know, unless it makes total sense. I doubt it. I think we're going to be extremely selective here on how we a good market with combined cycles.

Targeted to be down this year, just just kind of thinking about the available infrastructure currently within the United States and then the need the inevitable need for some more just wanted to get a sense of are people starting to talk about that or is it still very early innings.

Speaker #12: Sir . Hi . Hi . Can you hear .

Speaker #2: Me ?

Speaker #15: Yeah, we can hear you. Please go ahead.

Speaker #12: Okay , great . Hey . Good morning everybody . Lots of talk about combined cycle gas . And I'm a little curious . We hear a lot about single cycle going inside the fence alongside some of these big data centers to complement grid scale renewables .

No I mean, I think we have probably the conversation every day about a piece of pipe.

When I think about it though I wouldn't when I go into next year, it's $500 million.

Speaker #12: I'm wondering if that's perhaps part of the work that you're seeing , or perhaps contemplating . Thank you .

That's what we're going to die and we're not going to unless we are booked work against it.

We're not going to get ourselves in a position where that's something that the company is focused on and we'll build it but we certainly see it we have great customers there will be selective.

[Analyst 2]: Thank you.

Duke Austin: Sure.

Operator: Our next question is from Nick Amacchi from Evercore. Please unmute your line and ask your question.

The risk profiles and everything else on large diameter pipe and its lumpy.

[Analyst 1]: Hey guys, can you hear me?

Jayshree Desai: Yep. Hey.

Speaker #1: I mean, I think it's important for us not only for the technology or the large load customer on the other side. Yeah.

We're trying to be a compounded of earnings and give good guidance for multi years and decades. In fact, so it's hard to do when you win.

[Analyst 1]: All right, perfect. I just wanted to kind of touch upon, just given kind of the massively increased demand for natural gas as the feed fuel. I mean, have you guys been having some conversations? Obviously, the pipeline business is kind of targeted to be down this year. Just kind of thinking about the available infrastructure currently within the U.S. and then the inevitable need for some more. Just wanted to get a sense of, are people starting to talk about that? Is it still very early innings?

Lumpy lumpiness of big pipe.

It's just not us and so I think yes, we can build.

Billions and pipe, it's just a matter of the client needs us to.

To.

To do it and we will have to do it in a way that we can derisk ourselves I don't like the weather risk and that risk bunch of different things. There. If we can do risk ourselves, we'll build it all day.

Do you think the opportunity is there it's a good market and certainly you can see it still tough at the state level and permitting we're not past that yet.

Duke Austin: No, I mean, I think we have probably a conversation every day about a piece of pie. When I think about it though, I wouldn't. When I go into next year at $7 million, that's what we're going to guide and we're not going to unless we have book work against it. We're not going to get ourselves in a position where that's something that the company's focused on and we'll build it. We certainly see it. We have great customers there. We'll be selective, the risk profiles and everything else on a large-diameter pipe, and it's lumpy. We're trying to be a compounder of earnings and give good guidance for multi years and decades in fact. It's hard to do when you're with the lumpiness of big pipe. It's just not us. I think, yeah, we can build, you know, billions in pipe.

Got it perfect. Thank you.

Thank you. Our next question is Amit <unk> from BMO. Please on mute your line and ask your question.

Hey, guys can you hear me.

Hey, Hello, good morning.

Good morning, Thanks for the time.

One of your earnings supplement I think <unk> said that youre solar and storage backlog increased pretty significantly versus last quarter. I was just wondering if you guys could provide a little bit more color on.

How much did it increase and then what do you guys see as the kind of drivers or is that more from the legislative and safe Harbor certainty or is this kind of just more follow through from the power demand environment. That's out there. Thanks guys.

Duke Austin: It's just a matter of the client needs us to do it and we'll have to do it in a way that we can de-risk ourselves. I don't like the weather risk, the mat risk, bunch of different things there. If we can de-risk ourselves, we'll build it all day. Do you think the opportunity is there? It's a good market and you know, certainly you can see it. It's still tough at the state level and permitting. We're not past that yet.

Thank you our renewal business hasn't let up.

Last quarter I'll say it again, it's just LNG peas are coming into <unk>.

Nothing nothing new I think we're growing the business.

Obviously.

<unk> is a neat.

If you can build it faster with renewables and batteries. That's what's happened in the past is seeing the market right now it will be all encompassing and power and generation.

[Analyst 1]: Got it. Perfect. Thank you.

Operator: Thank you. Our next question is Ameet Thakkar from BMO Capital Markets. Please unmute your line and ask your question.

The fact that when you put in this.

And what I consider a total solution now it'll continue and I think backlog.

[Analyst 6]: Hey guys, can you hear me?

Jayshree Desai: Hey. Hello.

On the renewables side has been great. The inbounds are great.

Duke Austin: Good morning.

[Analyst 6]: Hey, good morning. Thanks for the time. One of your earnings supplements, I think, kind of said that your solar and storage backlog increased pretty significantly versus last quarter. I was just wondering if you guys could provide a little bit more color on how much did it increase, and then what do you guys see as the kind of drivers of that? Is that more from the legislative and safe harbor certainty, or is this kind of just more follow through from the power demand environment that's out there? Thanks, guys.

I don't think it's Poland I think it's just the normal course, and we're seeing a nice market. There we continue to see it battery storage businesses catastrophe.

We're happy with where we sit in the market and now that we can provide a larger solution I think it's great and Youll continue to see us follow our customers I mean, if you look at our bigger customers and look at what they're saying.

I think we're right there in front of them are right there with them.

That's important to us to be able to.

Duke Austin: Thank you. Our renewal business hasn't let up. You know, we said it last quarter. I'll say it again, it's just LNTPs are coming into FNTPs. Nothing new. I think we're growing the business. You know, obviously power is in need, and if you can build it faster with renewables and batteries, that's what's happening. The fastest thing to market right now is we'll be all encompassing in power and generation. The fact that we put in this, what I consider a total solution now, it'll continue, and I think backlog and the renewable side has been great. The inbounds are great, and I don't think it's pulling. I think it's just the normal course. We're seeing a nice market there. We continue to see it. Battery storage business is fantastic. We're happy with where we sit in the market.

Say, yes to our customer app when they ask us to do something and they asked us to go with them that we can say, yes and have the capability to do so.

60.

67, 68000 employees, we have out there.

Fungible in many ways that we can move them around we have to do a great job up here of making sure that we have the.

What I considered in market to move to and we can be more selective and we happen. So that renewable piece is a part of it we're building a lot of renewables in Indiana.

And so that same workforce will move over and do some CGT work.

So I just think we're generally fungible, we're happy with where we sit and backlog was broad based and we have not put the big bigger projects in it.

Thank you.

Duke Austin: Now that we can provide a larger solution, I think it's great. You'll continue to see us follow our customers. I mean, if you look at our bigger customers and look at what they're saying, I think we're right there in front of them or right there with them. It's important to us to be able to say yes to a customer app when they ask us to do something and they ask us to go with them, that we can say yes and have the capabilities to do so. The 67,000, 68,000 employees we have out there, they're fungible in many ways that we can move them around. We have to do a great job up here of making sure that we have the, you know, what I consider the end markets to move to, and we can be more selective, and we have been.

Thank you. Our next question is from Justin Hauke from Robert W. Baird. Please on mute your line.

Great. Thanks for taking my question here.

I guess I just wanted to build on Jamie's question.

<unk>.

I guess you guys have always self performed so much of your work and it's a way that you've mitigated risk and so just with the joint venture maybe you can clarify kind of what's in your wheelhouse that you'll be doing in <unk> in terms of the two.

The combined cycle gas plants, and then also just on the margin profile I know youre not looking to do kind of discrete one off plants, but I guess, how we would think about it is historically the.

Duke Austin: That renewable piece is part of it. We're building a lot of renewables in Indiana, and that same workforce will move over and do some CGT work. I just think we're extremely fungible, we're happy with where we sit, and backlog was broad based, and we had not put the big, bigger projects in it.

The margins on those have been a little bit lower than than the grid work just because the utilities la row.

Our lower on that Capex versus the spend on grid with some of the adders. So anything different from the margin profile on the work that would be coming in on that.

Those are the questions. Thank you.

Yeah as far as who's performing what I mean, both of us can can perform.

[Analyst 6]: Thank you.

<unk> solutions, so so I think.

Operator: Thank you. Our next question is from Justin Hauke from Robert W. Baird, please unmute your line.

Theyre better at certain things and we are well, we'll make sure from an engineering standpoint, there's certainly.

[Analyst 4]: Great. Thanks for taking my question here. I guess I just wanted to build on Jamie's question that, you know, the thing, you know, I guess you guys have always, you know, self-performed so much of your work, and it's a way that you've mitigated risk. Just with the joint venture, maybe you can clarify kind of what's in your wheelhouse that you'll be doing and what's in Zachry's in terms of the combined cycle gas plants. Also, just on the margin profile, I know you're not looking to do kind of discrete one-off plants, but I guess how we would think about it is historically the margins on those have been a little bit lower than the grid work just because the utilities, the ROEs are lower on that CapEx versus the spend on grid with some of the adders.

The engineering staff and the capabilities there. So the front end side of it the back end side of it make a lot of sense.

Zachary and then of course, we'll balance each other across the plant whether it's internal subcontract. However, we decide to do it but we're capable of doing the whole thing I think with the right answer is how do we continue to use local content, Indiana, we have a great presence there.

Work with the client on that to make sure that we're pulling in local content and to enter the state as well.

We have offices there we can self perform all of the mechanical means of a form all the electric.

Basically can do it all I just.

Kind of a $27 28.

<unk>.

With the ramp in 28, 27, 28, and we will just have to see what we're out there.

[Analyst 4]: Anything different from the margin profile on the work that would be coming in on that? Those are the questions. Thank you.

But we have all those capabilities internally what is balance each other there as far as margin profile I would tell you is at parity or better.

Duke Austin: Yeah. As far as who's performing what, both of us can perform, you know, total solutions. I think they're better at certain things than we are, and we'll make sure from an engineering standpoint they're certainly the engineering staff and the capabilities there. The front end side of it, the back end side of it make a lot of sense for Zachry. Of course, we'll balance each other across the plant, whether it's internal, subcontract, however we decide to do it. We're capable of doing the whole thing. I think what the right answer is, how do we continue to use local content in Indiana? We have a great presence there. We'll work with the client on that to make sure that we're pulling in local content into the state as well as we have offices there.

In the segment.

Appreciate it alright, thank you congratulations.

Thank you. Our next question is from Phil Shen from Roth Capital. Please on mute your line and ask your question.

Hey, guys can you hear me okay.

Yes, Hello, Thanks Heng.

Hey, guys can you hear me okay.

<unk>.

Okay, great. Thanks.

I know you haven't given guidance for 'twenty six.

But as we wind down 25.

Can you share what the growth trajectory for organic growth might look like for 2006, perhaps comment on the different outlook for electric infrastructure and new UI, if you cant take that.

Duke Austin: We can self-perform all the mechanical and self-perform all the electricity, you know, basically can do it all. It's kind of a 2027, 2028 build with the ramp in 2028, 2027, 2028, and we'll just have to see where we're at there. We have all those capabilities internally. We'll just balance each other there. As far as margin profile, I would tell you it's at parity or better in the segment.

Perhaps you can comment on the margin profile of the expanded total solutions platform.

Compared to the electric power margins.

The deal with nice source margin accretive or in line with current run rate. Thanks, guys.

It's in line or accretive on the first on the last question as far as guidance.

I mean look at it.

[Analyst 4]: Appreciate it. All right, thank you. Congratulations.

25.

And.

Jayshree Desai: Thank you.

Operator: Thank you. Our next question is from Philip Shen from Ross Capital. Please unmute your line and ask your question.

See some say $10 million or one way or the other on $2 8 billion I wouldn't get worked up about it we hit it down the middle and I think we've taken into account a lot of things and getting concerned guidance.

[Analyst 2]: Hi guys, can you hear me okay?

Jayshree Desai: Yes, hello.

More importantly, when we look at guidance I mean, I'm looking at putting on what we're saying in Florida.

Operator: Please go ahead.

[Analyst 2]: Hey guys, hear me okay?

At 10, and kind of 15% EPS adjusted EPS at the midpoint, given all levers of the balance sheet in 'twenty is what we've done so I don't know I think I've given your five year guidance as far as I'm concerned.

Duke Austin: Loud and clear.

[Analyst 2]: Okay, great, thanks. Hey, I know you haven't given guidance for 2026, but as we wind down 2025, can you share what the growth trajectory for organic growth might look like for 2026? Perhaps comment on the different outlook for electric infrastructure and UI. If you can't take that, perhaps you can comment on the margin profile, the expanded total solutions platform compared to the current electric power margins. Is the deal with NiSource margin accretive or in line with current run rate? Thanks guys.

Sure.

And so I don't you know thats the guidance and you it'll be somewhere in there when we are when we go to the street.

Right.

Great. Thanks, guys.

Thank you. Our next question is from Chad Dillard syndrome stone.

Hey, guys, so a big.

Duke Austin: It's in line or accretive on the 1st. On the last question, as far as guidance and where we're at, I mean I look at it on 2025, we're right in line. You know, see some save $10 million or one way or the other on $2.8 billion, I wouldn't get worked up about it. We hit it down the middle, and I think we've taken into account a lot of things and given conservative guidance. More importantly, when we look at guidance, I mean I'm looking in 2029, we're saying we floored it at 10 and kind of 15% EPS, adjusted EPS at the midpoint given all levers of the balance sheet and 20 is what we've done. I think I've given you five year guidance as far as I'm concerned, outward. That's the guidance and it'll be somewhere in there when we go to the street.

Big Picture question for you guys, so over the medium and long term.

Do you think the power industry evolves to serve large load customers like data centers is that the genco auto like we're seeing with lead source is a behind the meter as a traditional credit selection I know, it's a combination of all the above but once you get a sense for like how you think that mix evolves and then I guess secondly, when it comes to the JV you just announced.

How do we think about the contract structure.

And just like how you guys are thinking about bidding is as competitive as an open book in Colorado would be helpful.

I think it's all of the above when you look at these things some of it we were certain of them. We don't have any issues with it we can as long as we can scope and feel good about it.

Happy to have bumps some on things.

Yeah.

[Analyst 2]: Great. Thanks, guys.

We can do that but if it's if it's stuff that we don't understand we will derisk ourselves you can expect that I mean, I'll set up publicly we're not going to take risks on these larger projects.

Operator: Thank you. Our next question is from Chad Dillard from Bernstein.

With our labor and our Labor force and everything we have for certainty it's not the right answer for the client and so I think us working together preplanning.

[Analyst 5]: Hi guys. A big picture question for you guys. Over the medium and long term, how do you think the power industry evolves to serve large load customers like data centers? Is it the Genco model like we're seeing with NiSource, is it behind the meter, is it a traditional grid connection? I know it's a combination of all the above, but I'd love to get a sense for how you think that mix evolves. Secondly, when it comes to the JV just announced, how do we think about the contract structure and how you guys are thinking about, you know, betting, is this competitive, is it open book in color? That would be helpful.

Early in upfront.

Is extremely important for us when we look at the future of how we build things, especially today.

Thank you. Our next question is from <unk> <unk> from Bank of America. Please on mute your line and ask your question.

Hi, Good morning, I, just wanted to touch on.

Duke Austin: I mean, I think it's all of the above when you look at these things. Some of it we're certain on, we don't have any issues with, and as long as we can scope it and feel good about it, we're happy to have lump sum on things. If it doesn't work, we can do that. If it's stuff that we don't understand, we'll de-risk ourselves. You can expect that. I mean, I've said it publicly, we're not going to take risk on these larger projects with our labor and our labor force and everything we have for certainty. It's not the right answer for the client. I think us working together, pre-planning early and up front, is extremely important for us when we look at the future of how we build things, especially today.

M&A a bit just azure backlog builds a multiyear demand do you ever consider shifting your M&A focus to complement your craft labor pool by acquiring smaller service providers or do you feel that the steps you've taken internally to grow the labor pool are able to match the workload that you want to take on in the coming years.

Yes, I mean, we don't buffer capacity, we've never had that strategy totally.

And so when I when we think about it we're filling a strategic gap you could expect us to do so.

We've done a nice job with that and stayed in front vertical supply chain. We don't talk about that much but I think we've done a really nice job of our vertical supply chain and what we can do with that.

We continue to add there I think we have probably 10 projects ongoing that are enhancing our vertical supply chain that doesn't get talked about and so we were going to.

Operator: Thank you. Our next question is from Sharif El Sabahi from Bank of America. Please unmute your line and ask your question.

From our standpoint, we're filling the needs of other solution based approach for our clients and we'll continue to do so we're adding fabrication we're adding.

Just about everywhere, but it's all strategic around the client and I look I would say we're ahead in that and we will continue to buy great family companies.

Duke Austin: Hi, good morning. I just wanted to touch on M&A a bit. Just as your backlog builds on multi-year demand, would you ever consider shifting your M&A focus to complement your craft labor pool by acquiring smaller service providers? Or do you feel that the steps you've taken internally to grow the labor pool are able to match the workload that you want to take on in the coming years? Yeah, I mean we don't buy for capacity. We never have. It's strategy, totally. When we think about it, we're filling a strategic gap you could expect us to do. I think we've done a nice job with that. We've stayed in front. Vertical supply chain, we don't talk about that much, but I think we've done a really nice job of our vertical supply chain and what we can do with that. We continue to add there.

Huge difference in how we think about it.

<unk> culture in the company means so much more than anything else and we start there and does it fit the strategy is next in the financials will be after but.

As far as I'm concerned we pay a nice what I consider multiple for a great company and we.

You've seen us go from.

Civil to Transformers, two other things they all have a purpose and they all have a strategy will continue to leverage that strategy as we move forward in great markets that we have with technology and utilities.

Duke Austin: I think we have probably 10 projects ongoing that are enhancing our vertical supply chain. That doesn't get talked about. From our standpoint, we're filling the needs of the solution-based approach for our clients and we'll continue to do so. We're adding fabrication, we're adding just about everywhere, but it's all strategic around the client. I would say we're ahead in that and we'll continue to buy great family companies that make a huge difference in how we think about it. The culture and the company mean so much more than anything else. We start there and does it fit the strategy next and then the financials will be after. As far as I'm concerned, we pay a nice, what I consider, multiple for a great company. You've seen us go from civil to transformers to other things. They all have a purpose and they all have a strategy.

Yeah.

Okay.

Thank you. Our next question is campaign chairman Cynthia volatile form Keith on the line and.

Ask your question.

Okay, great. Thanks, so much.

Bit of a follow on to that last question, but when you look across this sort of massive craft workforce.

Here are their trades in particular, where you see real real scarcity as such it is actually somewhat of a limiting factor to your growth the growth and good obviously, and maybe where youre, especially focused on sort of recruiting talented folks out there.

Yes, I think you know we've added about 6000 with acquisitions. So this year a little over so.

Quarter over here. So when you think about it I mean, we've invested in that Costco workforce, and I apologize or campuses and everything we've done.

Their curriculum, we can move that curriculum into.

Duke Austin: We'll continue to leverage that strategy as we move forward in great markets that we have with technology and utilities.

I'll say all phases of craft now.

Early.

And then our technology piece Cupertino acquisition was a great platform that inside wireman like as far as I'm concerned is scarce is probably where you'd see scarcity, we've been able to add fabrication, we continue to add premium.

Operator: Thank you. Our next question is from Brent Tillman from DA Davidson. Please unmute your line and ask your question.

Pre manufacturing, let's call it.

[Analyst 6]: Great, thanks so much. A bit of a follow on to that last question, but when you look across this sort of massive craft workforce you've accumulated here, are there trades in particular where you see real scarcity, such as actually somewhat of a limiting factor to your growth? The growth's been good, obviously, and maybe where you're especially focused on sort of recruiting talented folks out there?

Pre manufactured products, there that are allowing us to scale of it.

But I think that's probably when and I think through it we will continue the pace that program up and add faster to our and saw warm in an hour and plumbing mechanical.

All kinds of trades, there from our mechanical business, so that snacks and we'll continue to add.

Duke Austin: Yeah, I think, you know, we've added about 6,000 with acquisitions, so this year a little over. So, you know, quarter year over year. When you think about it, I mean, we've invested in that craft school workforce and our colleges, our campuses and everything we've done, their curriculum. We can move that curriculum into all phases of craft now. I mean, we're early in our technology piece. Cupertino Electric acquisition was a great platform. That inside wireman, like, as far as I'm concerned, is scarce, is probably where you see scarcity. We've been able to add fabrication. We continue to add pre-manufacturing, let's call it, you know, pre-manufactured products there that are allowing us to scale it. I think that's probably when I think through it, we'll continue to beef that program up and add faster to our inside wire.

Curriculum, some kids don't want to get in the air and so these businesses are more local than others. So so on our high voltage we travel they can they're starting to do more of that on the NAND side, but it was predominantly local so we have to build these levels.

Much much stronger and you'll see us do that you'll see us add there, but but in general I would tell you the inside piece of it and the mechanical piece. We're early so that's where the gap is for us and try to enhance that as quick as possible.

Okay. Thank you.

Okay.

Thank you. Our next question is from Nike is from vertical research partners. Please on the airline and ask your question.

Good morning, Chapchai, Sri Duke.

Okay.

The triggering demand youre, saying and.

Duke Austin: Now we're in plumbing, mechanical, all kinds of trades there from our mechanical business. You know, that's next. We'll continue to add curriculum. Some kids don't want to get in the air and some of these businesses are more local than others. On our high voltage, we travel. We can't. They're starting to do more of that on the inside. It was predominantly local. We have to build these locals much, much stronger. You'll see us do that, you'll see us add there. In general, I would tell you the inside piece of it and the mechanical piece were early. That's where the gap is for us and try to enhance that as quick as possible. Okay, thank you.

Are your customers starting to recognize the need to secure your hangar.

Tying your MSA Earth's resources at a quicker rate in fact could lead to maybe better scale of execution on margins as we move forward and maybe ancillary to that.

Any concern on how the industries because the pay for all this all this capacity that's coming through certainly.

Living in New Jersey, where <unk> been seeing a lot of issues on rate right.

I Wanna up et cetera, just wanted to get your thoughts on how Thats a place turn as Youre talking to utilities in your docs.

Yeah, I mean, I think portability is or isn't an issue you know fuel is a big piece of the bill 60% interest and is going down you got to look at your fuel as well and so that's that those two are big pieces of a bill.

Operator: Thank you. Our next question is from Mike Dudas from Vertical Research Partners. Please unmute your line and ask your question.

Al.

I do think you're going to see large transmission get built and things of that nature. You know PJM has shares shares sharing of infrastructure. So.

[Analyst 3]: Good morning, Kip, Jayshree, Duke. Duke, given the extraordinary demand you're seeing and the tightness in capacity, are your customers starting to recognize they need to secure your time, your MSA, your resources at a more quicker rate? Does that lead to maybe better scale and execution on margins as we move forward? Maybe an answer to that. Any concern on how the industry is going to pay for all this capacity that's coming through? Certainly, living in New Jersey, we've been seeing a lot of issues on rates going up, et cetera. Just wanted to get your thoughts on how that's a place where as you're talking to utilities and your developers.

There's different models out there, but I'll go back to I think if you look at technology and look at where the loads coming and you haven't built a transmission line in the United States is not MPV positive number one number two generation the more generation you can see it with the nice source example, where the ratepayer is actually benefit.

And from the load those models are out there.

And I do think technology is willing to pay their way, so youre seeing utilities and technology come together for what I think is a benefit of the ratepayer here and it's taken a little bit of time, but as that goes forward. I. You know look we all have to be prudent and watch the affordability piece of this but the NPV on the.

Duke Austin: Yeah, I mean, I think affordability is always an issue. You know, fuel is a big piece of the bill. I mean, 60% interest and just going down, you got to look at your fuel as well. Those two are big pieces of a bill now. I do think you're going to see large transmission get built and things of that nature. PJM has shares, shares, you know, sharing infrastructure. There are different models out there. I go back to, I think if you look at technology and look at where the loads come in, you haven't built a transmission line in the U.S. that's not NPV positive, number one. Number two, generation. The more generation, you can see it with the NiSource example where the ratepayer is actually benefiting from the load. Those models are out there and I do think technology is willing to pay their way.

The other side of it as a downward trajectory so I like what I see I think we'll get there and you'll see.

Positive effect to the ratepayer, we all have to be cognizant of.

Okay.

Our next question is from Alex My girlfriend boxes have too scanty. Please on the airline and ask your question.

Morning, Alex.

Yeah.

Good morning. Thank you nuclear power is gaining momentum here can you talk about how quantum might get involved in that.

Yes, I mean I looked at.

As long as we don't have to go behind the what I would consider nurse fence and the new fence.

Duke Austin: You're seeing utilities and technology come together for what I think is the benefit of the ratepayer here. It's taken a little bit of time, but as that goes forward, we all have to be put in and watch the affordability piece of this. The NPV on the other side of it is a downward trajectory. I like what I see. I think we'll get there and you'll see positive effect to the ratepayer we all have to be cognizant of.

We're good I mean, I think once you get behind the area, we have to Derisk ourselves and think hard about that it's not something that the companies are.

Jumping up and down to take risk on so we're always around the edges on things and I think as long as we can do the things that we know how to do and stay out of the nuclear.

Vince we felt comfortable that we're not the reactor person and we're not the person inside defense you know theres a lot of ancillary things, we can do and will do but.

Like where you cross the line.

That that fence, it's not us.

Operator: Our next question is from Alex Rigor from Texas Capital Securities. Please unmute your line and ask your question.

Thank you.

Thank you. Our next question is from Brian Bracey, some stifling of glass.

Okay.

Duke Austin: Morning, Alex. Good morning.

Hum.

Thanks, Good morning, everybody.

[Analyst 3]: Thank you.

Duke Austin: Nuclear power is gaining momentum here. Can you talk about how Quanta might get involved in that? Yeah, I mean, look, as long as we don't have to go behind that, what I would consider the NERC fence and the nuke fence, we're good. I mean, I think once you get behind there we have to de-risk ourselves and think hard about it. It's not something that the company's jumping up and down to take a risk on. We're always around the edges on things. I think as long as we can do the things that we know how to do, stay out of the nuclear fence, we feel real comfortable. We're not the reactor person and we're not the person inside the fence. There's a lot of ancillary things we can do and will do, but once we cross the line of that fence, it's not us. Thank you.

Just following up on the <unk> project.

Curious if you can comment on whether that is structured as a cost plus or fixed price project.

I'd assume its fixed price, but I think you've alluded to in the past potentially.

Structuring those on a cost plus basis to derisk. It just curious if you can provide any color. Thanks.

Yes, I mean, we're not again Baldwin what kind of contract structure, we have but I would just say look I'm a standby my comments previously that the company on these type of projects, we're in or not we're going to not going to take certain kinds of risk on them and so I feel comfortable with where we sit there and what the contract in Oregon.

Look everyone all of the investors in the eyes, and say everything I said about risk on a combined cycle, we have not taken that so I'm happy with where we said happy with the contract structure. That's it's a collaborative structure with the client that allows both both too to come out.

Operator: Thank you. Our next question is from Brian Brophy from Stifel. Nicholas.

And in a way that we can derisk both of our ourselves and give the right answer to the ratepayer as well as a large load customers. So.

[Analyst 1]: Thanks. Good morning everybody. Just following up on the NiSource project. Curious if you can comment on whether that is structured as a cost plus or a fixed price project. I would assume it's fixed price, but I think you've alluded to in the past potentially structuring those on a cost plus basis to de-risk it. Just curious if you can provide any color.

Ah like where it sits and I'm not going to get into exactly what the structure looks like Oh, we did a great job there.

I'm extremely pleased with where we sit and we have a great offering with Zachary built Ohio plants and ourselves are built eight gigs of generation I'm Super happy with how we sit in.

Duke Austin: Thanks. Yeah, I mean, we're not going to get involved in what kind of contract structure we have, but I would just say, look, I'll stand by my comments previously that the company on these type of projects, we're not going to take certain kinds of risk on them. I feel comfortable with where we sit there, comfortable with the contract. I can look everyone, all the investors in the eyes and say everything I've said about risk on a combined cycle, we have not taken that. I'm happy with where we sit, happy with the contract structure, that it's a collaborative structure with the client that allows both to come out in a way that we can derisk both of ourselves and give the right answer to the ratepayer as well as a large load customer. I like where it sits.

Indiana, and what we're doing there for the local economy.

It's a great partnership with nice or site.

I hope it continues and ensure.

I appreciate it I'll pass it on.

Thank you. Our next question from Rohit <unk> from <unk> Securities if you'd like for me your line and ask your question. Please.

Hey, good morning, guys. Thanks for taking the question.

Maybe just final question on the JV and maybe the trajectory so let's talk about the accounting here.

It seems to be 50, 50, JV in Mexico started devote later $67 billion Capex should we assume that 3 billion come into backlog there and in terms of the Rev Rec purchase share back or.

To think about that.

Thanks.

Duke Austin: I'm not going to get into exactly what the structure looks like. Abby did a great job there and I'm extremely pleased with where we sit. We have a great offering with Zachry, built 100 plants and ourselves built 8 gigs generation. I'm super happy with how we sit and, you know, Indiana and what we're doing there for the local economy. It's a great partnership with NiSource. I hope it continues and it should.

Yeah, I think the backlog will be incremental on that so you can I would tell you that.

Larger piece to that is.

Air permits it'll hit.

Second half of next year that will come into backlog and you should look at it our piece of it's similar to SUNS is you know how it kind of stacked up and that's how I would look at that thing and as far as the.

Combined cycle, it's 50, 50, and the accounting on that and as you said the ports notary will just the income statement will reflect our share.

[Analyst 1]: Appreciate it. I'll pass it on.

Some of that work on from the revenue all the way down to the profit and balance sheet as well as <unk>.

Operator: Thank you. Our next question is from Ameet Thakkar from Mizuho Securities. If you'd like to unmute your line and ask your question, please.

Parts of it the battery and things like that are straight to quanta and parts of it that are a part of the JV, yeah, and just to just to make sure that as Dave said earlier.

Duke Austin: Hey, morning and thanks for taking the question here. Maybe just want a question on JV and maybe this for Jeffrey. We just talk about the accounting here. It seems like 50/50 JV and NiSource talked about like a $6 billion, $7 billion CapEx. We assume that $3 billion coming to a backlog here. In terms of the rev reg, could you share that or how to think about that here? Thanks. I think the backlog will be incremental on that. You can, I would tell you the larger piece of that is air permits. It'll hit second half of next year, that'll come into backlog. You should look at our piece of it similar to Sunsea, you know how it kind of stacked up and that's how I would look at the thing. As far as the combined cycle, it's 50/50.

We the backlog will reflect them as the work progresses. So we're in LNG Pea phase now we will move forward and the other things as Dave mentioned, there was an air permit that has to get has to be obtained middle of next year. That's when it really hits F. N. T. P. So you can expect most of the revenue for that.

As Dave was saying it starts in the back half of 'twenty, six and really more into 27 and 28.

Yes, there wont be anything meaningful and bought I mean as far as go into construction or revenues in.

26.

Okay.

Thank you.

Thank you our next question listen Adam Palmer from Thomson multiples.

Jayshree Desai: Yeah, the accounting on that, as we said, would be proportional. We'll just, the income statement will reflect our share of that work from the revenue all the way down to the profit and balance sheet as well.

Hey, good morning, guys nice quarter.

Okay.

If you can comment on the dynamic acquisition, how the integration is going what kind of demand youre seeing generally in Texas.

Duke Austin: There's parts of it with the battery and things like that are straight to Quanta and parts of it that are part of the JV.

And what would be your appetite for more mechanical construction acquisitions.

Jayshree Desai: Yeah, just to make sure that as Duke said earlier, the backlog will reflect as the work progresses. We're in LNTP phase now. We'll move forward in those things. As Doug mentioned, there's an air permit that has to be obtained middle of next year. That's when it really hits FNTP. You can expect most of the revenue, and as Duke was saying, it starts in the back half of 2026 and really more into 2027 and 2028.

I mean I think we're.

We're extremely pleased with the acquisition, we bought a great family Booz long standing up everything.

Everything that we thought.

We'd do it 10 times over.

I feel like as far as how it's integrated with our offering now.

The inbounds and what we can do certainly picked up on the mechanical side.

Dress and the best thing we.

We can do a lot from fabrication. They already has large facilities and broad based service offerings will expand it very quickly much like we've done in Cupertino and partner. So I think you can see that type of expansion with DSI as far as mechanical I you know look it's trades as long as it fits the profiles and the trades.

Duke Austin: Yeah, there won't be anything meaningful in back. I mean, as far as going to construction or revenues in 2026.

Jayshree Desai: Correct.

Duke Austin: Thank you.

Operator: Thank you. Our next question is from Adam Thalhimer from B. Riley.

We would look at it and something we're starting we will work with the S side to look at opportunities as they come in.

[Analyst 2]: Hey, good morning guys. Nice quarter.

Jayshree Desai: Thank you.

[Analyst 2]: If you can comment on the Dynamic Systems, Inc. acquisition, how the integration is going, what kind of demand you're seeing generally in Texas, and what would be your appetite for more mechanical construction acquisitions?

An eminent but but we'll continue to look at that offering I like the business. It's obviously.

You know we have peers, there and they've done a really nice job. There ahead of us, but we're catching up pretty quick and I like where we're going.

Duke Austin: I mean, I think we're extremely pleased with the acquisition. We bought a great family business, long standing, everything that we thought. We'd do it 10 times over. I feel like as far as how it's integrated with our offering now, the inbounds and what we can do certainly picked up on the mechanical side. We're addressing them. We can do a lot from fabrication. They already had large facilities and broad-based service offerings. We'll expand it very quickly, much like we've done with Cupertino Electric and Blattner Company. I think you can see that type of expansion with Dynamic Systems, Inc. as far as mechanical. Look, it's trades. As long as it fits the profiles and the trades, we would look at it. It's something we're starting. We'll work with Dynamic Systems, Inc. to look at opportunities as they come in.

Yeah.

Thanks, Dave.

Thank you. Our next question comes from Douglas Chaffin Guggenheim Partners. Please on mute your line and ask your question. Please.

Hi can you hear me.

Yeah. We can hear you. Please go ahead, okay great.

Hey, good morning, everybody wants to talk about combined cycle gas and what I'm curious, we hear a lot about single cycle going inside defense alongside some of these big data centers to complement grid scale renewables I'm wondering if that's perhaps part of the work that you're seeing and or perhaps contemplating. Thank you.

Yes, I mean, we said that before I mean, when we started putting this group together it was really around the single cycles, because we felt like that was something right down the road for us.

But it's led to you know where we're at today, having more of a total solution to it but we haven't a nice group that we're looking at at all.

Duke Austin: Nothing imminent, but we'll continue to look at that offering. I like the business. It's obviously, you know, we have peers there and they've done a really nice job. They're ahead of us, but we're catching up pretty quick and I like where we're going.

I think it's important for us not only for the technology or the large load customer on the other side, but utility as well and how we interface sat and speed this process up.

Everyone right now is around speed and I think we can provide a unique solution with the moat around the utility and in helping both sides of this so like.

[Analyst 2]: Thanks, Duke.

Operator: Thank you. Our next question is from Joe Osha from Guggenheim Partners. Please unmute your line and ask your question, please.

Like I said it comes together, a generation and craft skill, which we checks both boxes and the certainty thereof can we move faster, whereas single cycles at speed to market, whether it's solar batteries single cycle. The combined cycle lead times, if you have the engines.

[Analyst 3]: There.

Duke Austin: Hi.

[Analyst 3]: Hi, can you hear me?

Jayshree Desai: Yeah, we can hear you.

Operator: Please go ahead.

[Analyst 2]: Okay, great.

[Analyst 3]: Hey, good morning everybody. Lots of talk about combined cycle gas, and a little curious. We hear a lot about single cycle going inside the fence alongside some of these big data centers to complement grid scale renewables. I'm wondering if that's perhaps part of the work that you're seeing or perhaps contemplating.

Just all those things matter, it's a race and I think in general our generation and we're right in the middle of it. So I'm pleased with what we said.

Duke Austin: Thank you. Yeah, I mean, we said that before. When we started putting this group together, it was really around the single cycle. We felt like that was something right down the middle for us. It's led to where we're at today, having more of a total solution to it. We have a nice group that we're looking at it all. I think it's important for us not only for the technology or the large load customer on the other side, but utility as well and how we interface that and speed this process up. Everyone right now is around speed, and I think we can provide a unique solution with the mode around the utility and helping both sides of this. Like I said, it comes together, a generation and craft skill, which we check both boxes and the certainty thereof. Can we move faster with single cycles?

Okay. Thank you.

Thank you I'll ask question is from Northern I F&B Riley. Please on mute your line and ask a question.

Hi, Good morning. Thanks for taking my question. My question is are there data are you seeing any regulatory pushback to fund <unk>.

I mean, I think you would see affordability issues that are in certain places, but most of the commissions are you know really as long as it's a positive to the ratepayer and like I said I mean, most transmissions MPV positive.

Every commissioned is different.

Every state is different so they approach it in different ways, but for the most part I mean, everyone.

Duke Austin: It's speed to market, whether it's solar, batteries, single cycle. The combined cycle lead times, if you have the engines, just all those things matter here. It's a race, and I think in general for our generation, and we're right in the middle of it. I'm pleased with what we said.

The need for infrastructure is there and we want a modern robust grid in order to have an economy that that we see today. The grid has to be moderate and I. You know not only are we seeing these new projects, but just you still have an ongoing I mean, we.

[Analyst 3]: Okay, thank you.

<unk> performed very nicely for three decades, and negative load growth and that business is still there I mean, we still have to operate these systems and so you have that ongoing with the load in in front of it and as broad base. So I think the commissions were there to serve and we're going to make sure that they have.

Operator: Thank you. Our last question is from Laura Maher from B. Riley. Please unmute your line and ask a question. Hi, good morning. Thanks for taking the question. My question is, are the utilities seeing any regulatory pushback to fund transmission and distribution growth.

Portability to rate payers, there is an industry and everyone is balancing of that and fuel how you purchase you'll your fuel source.

Duke Austin: I mean, I think you would see affordability issues that are in certain places. Most of the commissions are, you know, really as long as it's a positive to the ratepayer. Like I said, I mean, most transmission is NPV positive. Every commission is different and every state's different. They approach it in different ways. For the most part, you know, everyone, the need for infrastructure is there and we want a modern, robust grid. I mean, in order to have an economy that we see today, the grid has to be modern. Not only are we seeing these new projects, but you still have an ongoing, I mean, we performed very nicely for three decades in negative load growth and that business is still there. We still have to operate these systems and so you have that ongoing with the load in front of it. It's broad based.

Taking risk on larger projects I mean, I think everyone is looking at risk.

On the outer years and stranded assets all kinds of different things that you can you can get into and that's why you've seen the pace b a little slower with technology, because we want to make sure that the stranded assets are not at the rate payer, but but as you see I believe the models are there it will move much faster now that the models are in.

Place to solidify the fact that the ratepayer benefits in most cases.

Thank you we have no further questions at this time I will turn the call back over to management for closing remarks.

I want to thank the 68176 men and women in the field, who make these calls possible not filled leadership, who continue to make US look good and thank you for participating in our conference call. We appreciate your questions and your ongoing interest in Quanta services. Thank you. This concludes our call.

Duke Austin: I think the commissions we're there to serve and we're going to make sure that the affordability of the ratepayers there is an industry and everyone is cognizant of that. Fuel, how do you purchase fuel, your fuel source, you know, taking risk on larger projects. I mean, I think everyone is looking at risk on the outer years and stranded assets, all kinds of different things that you can get into. That's why you've seen the pace be a little slower with technology because they want to make sure that the stranded assets are not at the ratepayer. As you see, I believe the models are there. It will move much faster now that the models are in place to, you know, solidify the fact that the ratepayer benefits in most cases.

Operator: Thank you. We have no further questions at this time. I will turn the call back over to management for closing remarks.

Duke Austin: I want to thank the 68,176 men and women in the field who make these calls possible, our field leadership who continue to make us look good. Thank you for participating in our conference call. We appreciate your questions and your ongoing interest in Quanta Services. Thank you. This concludes our call.