QUANTA SERVICES, INC. — Call Transcript 2026

Hi, good afternoon, everyone. Thanks for joining us after lunch. I am really excited to have a conversation with Quanta Services. Joining us from Quanta is Duke Austin, the CEO, and also Jayshree Desai, who is the CFO. We'll just have a fireside chat. I've got a lot of questions lined up, for those of you in the room, I'm told there's a blue card here. You hit the QR code, if you want your questions answered, I've got my trusty iPad, I'll make sure that happens. Yeah, let's first of all thank you. Thank you for joining us. Thanks, Chad. The first question I have is on just the portfolio. Over the last five years, Quanta has done a lot between the M&A. There's been clearly a big acceleration in electrical infrastructure build-out. The question I have is, just talk about what you've become and why this version of Quanta is right for the moment at hand. Thanks, Chad. Thanks for having us. Thanks for the interest. Fundamentally, I think at the core of Quanta is the same with the craft, and we've really worked hard to build a professional model within craft along all skill sets. In saying that, I do think as we've evolved as a company and how we look today, it's different. I think we've transformed the company in many ways, and we've become something to the customer where it's a collaboration to get where they want to go. We're really having discussions at the client level, at the customer level, and even to make sure that it's not impacting their customer. I do think it's different, and I think we're in a different spot than we were in the past because of where we sit with craft. As we have those discussions really around capital budgets, timing, how they interface, I think people really, when we have large load on one side and utility on the other, the dynamics are different. One's trying to go as fast as they possibly can, one's trying to make sure the ratepayer is in good shape. It seems like a model you meld together, and we're doing that. We're seeing those models where one's willing to pay to make sure the ratepayer's okay, and the other one's wanting to build. We're in the middle of that nexus, and I think as we see it, we can provide tons of solutions around that. We can work with customers on their capital. I think when I hear our customers say, "We're going to use Quanta, and that's how we're going to get our capital budget done," that means something to me. Years ago, you didn't hear that. I think you hear that a lot now. We have common analysts as well, I hear it on both sides. I think that's really our goal is to make our customer more successful. If we do that, we become more successful. I think both sides, from our large load technology type TAM to our utility TAM, and the renewables in the middle of generation in the middle of that. Yeah, look, I think we're in a unique position, great markets. I think we put the company in the right place from a strategy standpoint to grow with multiple ways to grow. Yeah, I think we'll continue to compound earnings. How have all these changes translated your ability to increase the scope of work on a project? Maybe you can talk about maybe five years ago, which share of the project could you attack? And then with some of the acquisitions that you've done and the investments that you made on the supply chain side and areas like that, what does that look like now? Yeah. I think if we go to the utility TAM, in the past, generationally, it was primarily just kind of T&D build construction. We evolved that into some of the engineering supply chain, now the generation of both renewable and fossil. Really, unless they're building nuke, which some of them are, most aren't, that whole addressable market they're talking about is really a market that we can help with besides land or things like that. You get into the 90% from 50% on that big addressable market, which I think we have a good moat there on the utility side that allows us to really lean into that and become part of that industry and help. We've not only got ourselves in there, but we've allowed ourselves to take more of that position on the technology side. You saw this platform acquisition with Cupertino. It really got us into the customer base on technology. They were first movers there, had been with technology for a long time. Now we've built that out to where we've added DSI, our mechanical platform, as well as Tri-City into that, then also our internal electric electrification, that low voltage electric that we put in there as well against that moat and really built that out to, we were just electric, now we can do mechanical. We bought Civil early last year in January. There's not much we can't do. We can do it all. It just depends on if we want to. I do think we were finishing up balance of plant data center today. We self-performed 85% of it. I think the same thing will exist. We're going to do it again. More and more scope, that continues. As we see these big builds coming out, we'll be able to take that addressable market. Other than chips, we're not going to mess with those. It's not us. We'll do the rest. Got it. Okay. Just maybe sticking with M&A. For as long as I've covered Quanta, you had this great flywheel, right? Acquire family businesses, reasonable multiples. As the business has gotten larger, your deal size is going to need to increase to basically maintain the current level of growth. The question I have is, how do you keep that flywheel going? What sort of infrastructure are you putting into place, to ensure that you can sustain this pace of M&A to maintain your growth rate? Look, I don't think we have to transform the business. I think family businesses, the last two are at least 50 years old. I think one's 120, 130 maybe. We see a lot of 100-year-old businesses. They want to perpetuate the name. They want to be a part of something different. We don't really source deals. It's something we do internally. We're not out trying to make acquisitions. They're coming to us. Do they fit the model or not? What does the management team want to do? Are they staying? Are they leaving? We want people to stay with us, stay with us long-term, and buy great companies. I think a fallacy is that we need to make acquisitions. We don't. It's inherent. I look at it like, it's my money, it's your money, I want to spend it in a way where I believe we can get the most growth, we can generate the most cash. That's what we're trying to accomplish with acquisitions, is to make sure we invest free cash in the proper way. I think we've done that, the synergies are there when we make these acquisitions. We haven't bought companies today look, we see the data center market, the companies that we acquired, about 30% of the business was data center. We knew we could grow them because we knew the data center market on the other side, we knew what they did. It's a built-in synergy within the business because we have it at the customer level. We don't have to press these deals to say there's a synergy. We're very disciplined about it. We owe it to our ownership to be disciplined. I think we can continue to acquire great companies with great management teams that really fit our model, and I think we've done a nice job seeing markets, the vertical supply chain, the things that we've done there. We can see the markets and where they're going. As long as we can predict where things are going, we're able to lean into great businesses over time, and yeah, we've done it ourselves. Good. Okay. One through line that I am picking up on the M&A side is that you're leaning more into the mechanical, electrical, plumbing side of craft labor. Can you just expand on that and just how you see that market evolving for Quanta? Maybe from an M&A perspective, but also from just a project-based perspective, right? We're hearing more about these large-scale mega projects, and growing MEP intensity. Maybe spend some time on that, please. Yeah. It's the client. The client's asking us to do more, we're listening. We need platform companies to do that. DSI, we felt like we needed to be in the mechanical business. It's craft. It's something that we relate nicely. Great family. We were able to really lean into that and put some capital in, and we're growing out the fabrication facilities today. We're going to double the size of our fabrication. That's been something that we're able to really meet the customer demand on that. It's not just chips. It's from Tesla to Samsung, all of them. I just think we've really been able to move that way past just the data center piece of it. The craft, I think in the middle of that is just growing that craft. What they want is our ability to give curriculum training, the things that we've invested in since 2009. Management, that's my background. Really being fourth generation is we've really put the time into craft. If we get someone into our facilities that can't climb because they're scared of heights, 100 ft is pretty tall. You ever been up there? It'll get a little shaky on you. Not a lot of people want that. They get back down, about 30% fall out on the first pole. Now, instead of going home, they go to the inside electric, or they go to pipefitter, welder, or plumbers. We're able to really move people around and get a lot more people through our trade organizations. We see a lot of people try, like that'll say, "We'll give you $100 million. That's going to do it. Money doesn't buy craft. Craft builds craft. Journeymen builds journeymen. You can't think that you're going to put $100 million into anything today and get craft tomorrow. That ain't going to happen. It takes years to train. We're very proud of the journeymen that we have and the training we've done, and it's a fallacy to think. We've been investing $200 million a year for the past, I don't know, since 2009, in training, and we're proud of that. I would just say like, not only are we making the acquisitions against it, we're training the people that allow us to get what I would consider the synergies and the outward growth of the company. Got it. Okay. Let's actually shift over to talking more about your end markets. Both Duke, you and Jayshree, you spend a lot of time at the highest levels with clients. I'm talking about the utilities, developers, hyperscalers, colocators. Can you bring us into those conversations? What are their concerns and what are they asking you for? I'll let Jayshree go first. She's in there more than me. Yeah. I think everyone is really excited about where they sit. I think it's a once in a generation opportunity for a lot of our customers and for ourselves. It's generally excitement is what we see. Now, having said that, there are challenges that every part of our business is dealing with. You've got affordability concerns, you've got permitting challenges, you've got political challenges, and you've got speed to market challenges. At every level that we're working with, you've got to be able to address all of those at the same time. I think that's really a unique position that we can sit in because we have the ability to really affect, in some areas more than others, but literally we affect every one of those areas. Our ability to help our customers weave through these dynamics has allowed us to really become more of a partner with every one of them and allow us to give you all the certainty of why we're confident about our five years and even beyond that, what we're seeing around this infrastructure build. It's really a question of what we're seeing is more when, not if. How do we accelerate and get more certain around the when is what we're working with most of our customers. Well, I'll stop there and let Duke add more to that. Yeah. Look, we're in a different spot than we have been. We have a sense of responsibility when people say, we're going to use Quanta to build this capital and stick to our plan. I take it personally. We're discussing it all the time. It showed up in the past year or so where I think the customer's asking us to change them as well. We're trying to change underneath us. We're no longer just building out infrastructure. We're also being asked to look at it outward five years, make sure the supply chain's there, make sure we have right of way, help with permitting, help with political, get us where we want to go. Stay with me. Help me. That discussion's a different discussion than answering an RFQ. It's way different. That's where we're at today, is the discussion's more strategic. It's long. We're prudent about it when we look at it. I commend them for doing it. I do. I think it's something that to get out in front of something and recognize the fact that I'm not going to be able to get this done without help, we have to collaborate ourselves. We're collaborating as well. We need their help to help them. It's very much a 360 the way we're thinking through it with clients today, and the more that we can get involved, the earlier we can get involved, the better we execute it at the price and at the timeframe. Got it. If you look at your utility customers, and then your large load customers, how far out are those conversations extending to? Yeah. We're well past 2030 in places in the utility business especially. It's out past 2030. The large load, I would say even same. Those discussions are ongoing. They're all in different phases, they're all in different time frames, but if you're looking at a combined cycle today, if you order it today, your 30 months, I don't know what they're saying today, but 30, 36 months, whatever they said, it's over 30 months. Then it takes a couple of years to build it. You're five years from today if you order today. Any orders they have, or if they book next quarter, they're five years from the next quarter. Those bookings are pushing outward, so you can see it. You've got to build transmission and substations in. It's going to feed something. You have a lot of power today that's being done, what I would consider a bridge. If you're building 100 megs at times, it's bridge power, it's going to go to the grid at some point. You've got to build the grid back to it. We're on both sides of that. Sometimes we're building the intermittent power and have plans to build the grid. Look, I like where we sit. I think it's much longer than 2030. I don't know why we put 2030 as the timeframe. Everything stops in 2030, the world's going to end. Look, it's still moving forward. My God. We're well past 2030. Yeah. We track the multi-year utility CapEx budgets, right? Yeah. Just only maybe one or two years ago, you saw those budgets growing at 8%, 9% a year. Now, if you look at least the last quarter, right? These multi-year budgets are growing at +20%. How do we think about that in the context of when that should translate into an acceleration in Quanta's utility business within electric power? Look, I think we're planning for that, for sure. Today, we see the growth rates in our people and the transmission business. We have a really nice business growing in a normalized way today. That's what it's doing. We have not seen the big project stack on it yet. I think you probably start looking into this year, early next year, start going to construction on some of them. That's going to elongate. It's going to be broad. We've seen these cycles before, big ones, but I think this is bigger than normal. The bigger projects will start to come in in 2027 and really stack on, and you've got five to seven-year builds on just what you see. I think it's going to get bigger than, go longer than that, of course. I do think, after that, we're in early innings on the bigger stuff that would stack on top. Same with our generation. There as well, I think. Okay. Well, since you mentioned transmission, let's jump there. Can you frame up the large transmission opportunity? At least from the projects that we track, there's a pretty big center of gravity in Texas, right? One thing I'm thinking about in Texas is that it's probably a little bit easier from a permitting standpoint to get things done there, maybe a little bit more certainty. I don't know. You tell me. I guess, how do you think through the stacking of those sorts of projects? Yeah. I would tell you, Texas, until you go through the wrong piece of property, it's great. You try to go through the wrong piece of property, it's no fun. Yeah, look, we've got to build infrastructure. I think we're making progress regulatorily. Texas, it will start first, I believe. You're seeing MISO come out with projects that people are winning there. I think they continue to have tranches. There's some backlash on whether they weren't competitive or not. I doubt they'll go backwards, but they may. I think it'll be a blend of both for the regulated utility to stay there, and then they'll have some competitive like they're doing now. It seems to be the way they're going to go, but we'll see. Either way, we're on both sides. It doesn't matter to us. We want to build it. I do see those things moving forward. In order to really facilitate what we're trying to do as a country with the load, we're going to double load in the country. The need for transmission congestion is probably $12 billion-$15 billion a year, somewhere in there, of congestion. It's the cheapest form of energy. We've got to get these lines built, and I think you got to walk it back, and I know I hear a lot about, well, it's only 50% utilized. The national highway system is 35% utilized. You going to get rid of the highways, too? Are you not going to build any more? Look, the transmission system was never meant to be 100%, ever. People go to sleep. Like, something will sleep. You got to sleep a little bit, and when you sleep, the lights go out, everything goes out, everything's quiet, your bill goes way down. It's 50%. It's not ever going to be more than that. That's a fallacy. You've got to have that transmission to get it to load centers. We really need the permitting and the reform and some of the things to help that. You still have a lot at the states. The states got to get behind it. I do think the vertically integrated utilities are probably in a better position in growth. Hopefully, we can do some regulatory things to give both sides of that some ways to grow generation because we need the generation as well. Is there anything that maybe makes you more optimistic on the pace of the build? From a regulatory standpoint, there's a recent acquisition of Dominion by NextEra. Is there anything that kind of makes you look more confident on that? We have a lot of smart people trying to build generation and transmission in the PJM. We got to get some political pressure off and build it in. What I would say, demand is there. The willingness of technology to pay for incremental cost to the ratepayer, drive the ratepayers. Philosophically, under any scenario, more generation, more transmission should equal less to the ratepayer. It just should. There's no reason why we can't do that. It's being done in Indiana. In Indiana, if you look at the model in Indiana, where NiSource is building there, it's $7 a month to the ratepayer deduction because of load in. It can be done. It's easier for the vertical people to do so. Definitely, I think you're going to see scenarios where you're seeing that model get pressed, and so it'll come down. We got to have those kind of things happen in order for us to perpetuate where we want to go as a country, and that demand will allow us to do so. What makes 765 kV so much more complex than 300 kV or 500 kV? Can you talk about just what makes Quanta just well-positioned to win on that part of the cycle? 765 kV is big and heavy. In some parts of the construction, you can go pick a block up with your hand. You got to have a 12-ton crane, and you got to have the block to pick it up, and you got to pull wire across it. It's six-bundle conductor. It's a different level of construction. When you think about it's big. There's a lot of capital that goes into that, a lot of planning that goes into it. For us, you can 25% more right away for six times load. I sign up for that. Very hard to build DC across North America because it doesn't drop load. 765 kV allows you to drop load wherever you want on AC, so you can do it. You don't get as good of quality, but I won't debate that. That's for engineers. It is something that I believe, for a backbone infrastructure, we need it in the country. It'll allow us to really move generation much more economical across large territories. I think it's going to get built. It's been talked about for, I don't know, my career, 20 years. It's always been needed. We just think now the demand's going to press it, and either we're going to build multiple corridors, which I don't think we'll do. We're highly likely to see 765 kV in a meaningful way across North America. Okay. Can you talk about, with this build-out of 765 kV, how that creates follow along spur line opportunities? As we think about over the next 10 years, this is the first wave of building that trunk line. How does that cascade out as you're densifying that network? Yeah. Look, I think of it just like a highway. I always like to go to highway because people understand. You build a 24-lane highway, it comes down to a looper. You have offshoots of it all the way once you get a corridor from point to point. All the lower voltage goes out to feed industrial parks or data center or whatever it may be, but you have to have the trunk line to do so. It's 10 to one normally, is what you see. A big line, you get 10 off of it normally. It takes time, but over time, that's what you'll see. Which just extends the capital build when you think about it, right? You're basically saying this is a 10x multiplier on- Okay. ... on capital over time. If you had a mile of 765 kV, you got 10 of everything else. Wow, okay. I do think when you look at it, we see that. We see them planning to build those things. If you go back, CREZ wasn't 765 kV, but it was 345 kV double circuit. The CREZ lines are at capacity. We had the same debate, should we build it? We also, with the winter storm in Texas, had a huge issue with CREZ. Yeah, we should build it. Look, we have demand outside of data centers, and we have demand with industrials. We have demand across the country with the pharmaceuticals. I can go on and on. Industrial, re-industrialization of North America. It's here, and we got to wake up and start building the infrastructure. Got it. That is actually a good segue to the next question. I want to talk a little bit more about Cupertino and Dynamic too, the recent acquisitions, and just how can Quanta serve large load customers better now versus before? It's just a different discussion. Both of them are fabricating in obviously different disciplines. The engineering, very common, the way we were able to kind of put them together, engineer together, do some things there. I think it's more I don't think we're doing anything different other than scale. We can scale across the lower 48 and into Canada if we need to. That scale of those businesses, we've added Tri-City in there as well. I think we're just able to see more and take on more of where they're at, build offices, build capabilities. We had a nice business that was more, we call it power plant industrial inside about 1,000 electric. We're taking those 1,000 and put them into that framework on the electric side. The mechanical side, I think, as you start to see generation get built from fossil, you'll see heavy mechanical that comes back meaningfully in these type of builds. It gives us just a lot of framework opportunity. We talk about all the time the portfolio and how the labor's fungible. You start to see, okay, neither one of these companies were really data center driven. They were doing all kinds of other things. You can see the fungibility of it. Now you have a generation market coming on that's going to start in a meaningful build on the way, on forward looking. I just think the opportunity for us to expand their capabilities are there, and I like the fact that they're both union and they're working together quite a bit. We're not having issues. Like type people, they're both growing as fast as we can grow them. Really, really great management teams, think alike. Super proud of those acquisitions. Okay. Maybe a question for you on the generation side. If memory serves me correctly, the vast majority of incremental generation has been on the renewable side in the last number of years. How do you see that on a go-forward basis in terms of mix? I know with some of your, I think with NiSource, right, you talked about getting, I guess, back into gas-fired construction, at scale, selectively. Yeah, maybe just kind of map out how you see that cycle playing out in terms of just that mix. Then, how big does Quanta want to be in that cycle? Yeah. That's a good question. The last part. I don't think I have a choice. What I would say, what I see in renewables, and Jayshree can comment, I think she should. You're seeing we're still growing double-digit type growth in our renewable business. Batteries are coming into play. What I'm seeing with batteries is we're seeing longer durations, and I'm seeing them get cheaper. I think Tesla kind of came out with something they believe has been revolutionary. I don't know. I haven't really looked up on it. Apparently, you think Elon can say he can get that thing down in half, maybe, to cost. I don't doubt him. If you can do that and get longer durations, solar becomes very much what I would consider as good as gas generation at times. Why not? I just think, yeah, you're going to have gas generation. We need all forms, by the way. When we see that's there. That's what we're doing today. As we progressed, we were asked to get into the gas power generation. It's not my favorite thing to do. I knew we had the capabilities to do it. It's not my favorite thing to do, and it's very difficult to sync CCGT up. We're getting unit one and two of class, some of the turbines. I know that's difficult, and there's very good people that do that. They're busy. They're beyond busy. The client's asking us to do more there, and we had Abbey that worked with us, that had the capabilities, ran a big engineering division before. We have 300 people in Birmingham today, going to 500-600. We're getting the front-end capabilities. We decided to do a joint venture on the first one in Indiana. We're able to do that, de-risk the company through the construct, the way that we did it, while really reducing cost to the client and the ratepayer, the large load customer willing to offset some risk. I think that design is a good design. I think we can continue. The inbounds on building gas power generation are probably every bit as robust as data center or anything else at this point. We can't build them all. We're not going to try. We're going to have clients that we really want to work with that are asking us to do something in a collaborative way, we'll do it. It has to be in a collaborative way that we can work together to de-risk us as well as enhance the ability to come in on time and on budget. We had the craft. I thought early in my career, but we built one in Alaska. That's what taught me into doing it. Man, it was tough. Syncing something at nameplate power is just hard. I know it's hard, and that's why I'm very concerned, and you'll hear me talk about it. How big can we get? We're only going to get as big as we feel comfortable, and that's one of the reasons that we de-risked ourselves with JV, is because that's their main business at times, Zachry's, and they did a really nice job, and I felt like it was a great partnership on where we're at today. Simple cycle is not too worried about. We can build simple cycles. It's not something that's as difficult as syncing them up. Look, lots of opportunity, and I do think it's really important when you think through, because we get questions all the time, "Well, what if renewables go down?" Well, what about our gas generation that we're building that business? Where does it sit? One thing I will say, we have great markets. They're not all going to rise at the same time, and they're not going to stay risen forever. They're going to move up and down, and we'll have things that look great, things that look good, and things that are okay. That's what we want in the portfolio. It allows us to really be flexible, give you long-term guidance, and de-risk the investor base on three different verticals, typically of initiatives is the way the company's moving. Look, if we hit them all at once and jackpot, I guess, I don't know. Look, I don't think you'll hit them all at once instead of going vertical on them. I just think there's going to be fluctuations, and it really gives us longevity in the markets that we see well past 2030. You should comment on renewables. You do a great job on it, but not much more to add. You know this, Chad, I'm clearly a bull on renewables, and I will always be because it makes sense. The cost curve is coming down. There's value to it in many markets, and the power demand is there. We continue to see a really good market there. The technology curves on both those things. I always say, don't ever underestimate technology. Both solar panels and batteries are really technology plays, and it just keeps getting better and better. There is a real need for that as part of the energy mix. In the short term, for sure, because like Duke said, it's very difficult to get a gas plant built in the next five years. There'll be some, the majority of the generation build-out will still be renewables. Even beyond 2030, regardless what the politics might be around the tax credits, it will be about market demand and market drivers. Where there's an energy need and even some capacity need, you're going to have batteries and solar be part of that. Wind is a little different. Wind is more challenged, for sure, onshore wind. It'll still be part of the mix. It just won't be a big growth driver. There's value to wind, actually on both sides of that equation, on the energy and capacity side. There will be markets where, especially as more transmission gets built out, which has been the biggest bottleneck to wind, you'll see more wind coming as well. With solar and batteries will still have a nice growth curve to it. Got it. Okay. How about behind the meter? I know right now, I think, there's a view that it is maybe more of a bridge power solution, go beyond 2030, right? Think about what the grid looks like with that added element. Yeah. I think there's cases that you could make where it makes some sense to have some form of behind-the-meter generation. Look, I think batteries behind the meter are going to be there for sure. There'd be other things, backup generation, of course. Anything they're doing today will at least become backup generation. The question is, can you sell back into the grid? Do you have bi-directional capabilities or not? What can you get out of that? Are we thinking through that well enough now of what can be done later? I do think there's applications for it. It becomes cost at some point. If you can bring on load and you can bring on utility scale, it'll reduce the rate there. You got to think through the cost of something. Right now, it's speed to market. That becomes cost to market over time as you start to get more generation on these systems. There's always a place for it. We're invested in a company called Hybar. They build rebars. We take some off-take off the rebar, green rebar in Arkansas. They have behind-the-meter solar and battery to shape peak. What it does is for the price point of their electricity, we can build and manufacture steel rebar much cheaper because of the way that batteries and solar come into play in the plant. I'm amazed at what that'll do for a company that's pressed on power. That's a situation where you could see behind-the-meter something that works, it works for the utility, and it works for the client too. I don't know. Yeah. That it works great, and it'll be there. Right now, it's just like if you have anything that'll generate an electron, go. I don't think that's going to be that way when you start to see the cycle of gas generation come online. Got it. Okay. Let's actually shift back over to your modular fabrication capabilities. Correct me if I'm wrong, but I think this is a recently acquired capability, with Cupertino and Dynamic. What have you learned about this sort of capability, and then how do you think about deploying this at greater scale? If you can you talk about just what share of your work even flows through modular today? Yeah. If you take into account our vertical factories for transformers, you'll have 7 million sq ft under roof with you. We said we're going to spend $700 million in expansion. We're expanding all the factories. That includes MEP fab capabilities. As we look at it today, if you go back 10 years, Cupertino was the first mover in this. It's always been a good market. It's always been a market that we thought was prevalent. In saying that, you didn't have the constraint of the workforce that you do today, and the cost to move people, the cost to move people into other parts of the country. It's much more economical today than it's ever been to modularize because of some constraints on craft skill, and especially the electric side. I think those constraints, you've always modularized some of the mechanical, but it's more prevalent now. I think as you move into rural areas, Wyoming, New Mexico, places like that where there's just nothing, you're much more economic to fabricate. We're seeing more and more of it. Your engineering, your video, your Trimble, all the things that you have capabilities of the 3D modularization, that's really enhanced what you can modularize. It actually fits when it hits the field. I think that's the key is we've advanced technology to a point where you're able to have what I would consider world-class quality at your factory that goes to the field, everything kind of syncs up, and it cuts that time to build down, and it cuts labor down in the field. Yeah, I like it. We'll use it as much as possible. I would tell you it's less than 5% of the business, call it. Yeah, roughly. Mm-hmm. It's growing. Got you. Once it expands too, it'll grow more. The business is also getting bigger, so it's hard for me to characterize it against the business because our business overall continues to grow. Well, now I'm going to have to ask about the economics. Look, there's players in the industry that are pure play. You can look at them and our margins are comparable. Got you. Okay. You spent a number of years working with the utilities through a master service agreement. It kind of beckons the question, with data centers, with the long visibility, to what extent should we expect those sorts of relationships start to unfold, or even on the industrial side? Yeah, I think they are. They're unfolding. We're definitely building them on that side. It's a trust issue in many ways. We got to continue to perform. If we continue to perform over time, it's already happening, where they realize that when we sign up for something, we're going to do it on time and on budget. The more times we do it just keeps building our name. Our best commercial is our customers. I had one the other day. They were talking to one of our larger utility customers, and they had given them our name. It was a large, it wasn't a hyperscaler, it was a large colocator. The utility came back and said, "Hey, they just thanked us for giving them your name." I was like, "Well, yeah, thank you." This thing is very circular. It's a small group, and we just got to perform, I think, and provide the same kind of mindset solutions that we have for utilities on the other side and just not deviate. Yeah. I think we work hard to be long-term, and we work hard to be programmatic with our customers. I believe we've done a nice job of that on the utility side. You're seeing that in our results. We have been working towards that on the technology side. It's absolutely making an impact. It's just we're early in it. It's only been two years since Quanta really has been leaning into the technology side, as a Quanta whole, right? Obviously, our operating unit has done it for a longer period, but within this whole Quanta holistic total solution approach, we've just begun. I believe we're going to see a lot of results of that as our technology customers are seeing the benefits of that. Like Duke said, we got to prove it, because again, they got to trust us to get the work they need to do. We're in the early innings in that. Got you. Okay. On the Investor Day, you guys talked about the $13 million per megawatt TAM for data center. I guess, for the average project that you're working on today, what does that look like, and what would you need to do organically or inorganically to actually realize that full $13 million TAM? I think we look at it, we're between, call it, 25%-50%, in that range, of the way we think through it. It really depends on where it's at. Like regionally, just structurally, there's some regions of the country that we're just not as heavy, and we don't have the capacity in that part of the world. It's a matter of us building capacity in different areas, whether it be mechanical or civil or whatever. The high voltage piece we can cover off. Medium voltage we can cover off. We can take it. You got to think about it. We just started this platform two years ago, and so we're building on this platform that's already big. I think we'll just continue to add to it, add regionality to it, and then really pick the business up where it's more fulsome. I would tell you we're probably averaging 15% now on things, because we're building for others out of our fabrication facilities. We're just doing mechanical on one building versus 10. There's just all kinds of things that we can take more market share, we can think through it, but we'll have top 10 customers there that we're going to service, and we're going to have to be more fulsome to do so. We continue to talk to them years out, decades out, around what we need to do, and we're going to build against it. Okay. Now let's shift over to labor. Can you talk about your strategy to ensure an adequate labor supply over the next three to five years? Then specific to the training program, what do you see as the biggest bottleneck? We've done a nice job since 2009 there, and I do think that continuation's there. I'm not as concerned about the craft skill. I'm concerned, but I'm not as concerned. We have good, what I consider, visibility into growth curves and what we need from a labor curve, so we can see it today. The more that we can get in front and plan with our clients on a forward look, the better off we'll service them. We're encouraging, like, let's have the conversation early. Let's talk about what you want to do, where you want to do it. That moves all the time. We can say we're going to go to Wisconsin, we end up in Iowa. It happens, and that's okay. As long as we have good growth curves with them, we can meet the demands. We're hiring a lot of military. About 25% of our craft comes from the military. I think we owe it to them. Our median wage is $120,000. Kids coming out of the school, $75,000, 25% pension easily, and call it all health and welfare for the same. I just think we can do some unique things. We pay well. We always have. I feel good about it. We've pushed equity down to 9,500 people, between 9,000 and 10,000. We're proud of that as well. We got to take care of them. We got to take care of craft. That's who we are, and our ability to ramp that. Five years ago, we were at 3,000, kind of organically on the growth rate. Last year was 6,000 organically. We added 10, but that was somewhat through acquisition. Journeyman builds journeyman. More journeyman we have, more we can build, which just fluctuates. I feel good about where we can go with craft. Got it. Okay. Maybe just the last minute or so, let's talk through your margin targets, right? You called for an increase out to 2030. Can you just walk through the levers to get there? Since we're running short on time, I wanted to throw something in on return on invested capital. That's like another target for you. Maybe just talk through the building blocks there. Yeah. Look, I think when you look at our margin profile, we're growing it some. You can see the project mix inside the UI. It came up. I think that'll continue as that becomes a bigger piece of the segment. Probably that's the question of the day, margin. Look, we self-perform 85%. We have to pay our craft. Our craft moves up. Okay? We pay them well. It's going to come up. We are going to increase margins a little bit, but that's not the story. We'll take margin, we'll take outward look and longevity and stickiness with clients over time and compound earnings, invest free cash and do great things with it that we've done in the past for a decade. When we give a 10-year, five-year look, we hit it, and we've hit it for a decade. That's the intent, and that's how we do it. We just stay with it. It's not very sexy, but you just compound it over and over again. Our ROIC- The same. It's the same approach, right? Our return, you've seen it grow, because of this consistent, deliberate effort on focusing on the long run. There are levers. You're seeing our working capital profile improve. We believe we're going to continue seeing that. That's going to be a driver of our ROIC. The margin improvements that Duke talked about around some of the areas that we can do around the mix of work and the efficiencies, we're going to continue to gain around those. All of those things are going to help drive our ROIC. We are heavily focused on that, ensuring that at the end of the day, we take on more share of wallet, even if it might be not necessarily margin dilutive, but if we're allowed to take on more scope with less capital, we're going to do so. That's going to be a big driver of our ROIC as well. Got it. Okay. We're out of time, guys. All right. Thank you so much. Appreciate it. Thanks, everyone.

Speaker 1: Hi, good afternoon, everyone. Thanks for joining us after lunch. I am really excited to have a conversation with Quanta Services. Joining us from Quanta is Duke Austin, the CEO, and also Jayshree Desai, who is the CFO. We'll just have a fireside chat. I've got a lot of questions lined up, for those of you in the room, I'm told there's a blue card here. You hit the QR code, if you want your questions answered, I've got my trusty iPad, I'll make sure that happens. Yeah, let's first of all thank you. Thank you for joining us. Hi, good afternoon, everyone. hi good afternoon everyone Thanks for joining us after lunch. thanks for joining us after lunch I am really excited to have a conversation with Quanta Services. i am really excited to have a conversation with quanta services Joining us from Quanta is Duke Austin, the CEO, and also Jayshree Desai, who is the CFO. joining us from quanta is duke austin the ceo and also jayshree desai who is the cfo We'll just have a fireside chat. we'll just have a fireside chat I've got a lot of questions lined up, for those of you in the room, I'm told there's a blue card here. i've got a lot of questions lined up for those of you in the room i'm told there's a blue card here You hit the QR code, if you want your questions answered, I've got my trusty iPad, I'll make sure that happens. you hit the qr code if you want your questions answered i've got my trusty ipad i'll make sure that happens Yeah, let's first of all thank you. yeah let's first of all thank you Thank you for joining us. thank you for joining us

Speaker 2: Thanks, Chad. Thanks, Chad. thanks chad

Speaker 1: The first question I have is on just the portfolio. Over the last five years, Quanta has done a lot between the M&A. There's been clearly a big acceleration in electrical infrastructure build-out. The question I have is, just talk about what you've become and why this version of Quanta is right for the moment at hand. The first question I have is on just the portfolio. the first question i have is on just the portfolio Over the last five years, Quanta has done a lot between the M&A. over the last five years quanta has done a lot between the m&a There's been clearly a big acceleration in electrical infrastructure build-out. there's been clearly a big acceleration in electrical infrastructure build-out The question I have is, just talk about what you've become and why this version of Quanta is right for the moment at hand. the question i have is just talk about what you've become and why this version of quanta is right for the moment at hand

Speaker 2: Thanks, Chad. Thanks for having us. Thanks for the interest. Fundamentally, I think at the core of Quanta is the same with the craft, and we've really worked hard to build a professional model within craft along all skill sets. In saying that, I do think as we've evolved as a company and how we look today, it's different. I think we've transformed the company in many ways, and we've become something to the customer where it's a collaboration to get where they want to go. We're really having discussions at the client level, at the customer level, and even to make sure that it's not impacting their customer. I do think it's different, and I think we're in a different spot than we were in the past because of where we sit with craft. Thanks, Chad. thanks chad Thanks for having us. thanks for having us Thanks for the interest. thanks for the interest Fundamentally, I think at the core of Quanta is the same with the craft, and we've really worked hard to build a professional model within craft along all skill sets. fundamentally i think at the core of quanta is the same with the craft and we've really worked hard to build a professional model within craft along all skill sets In saying that, I do think as we've evolved as a company and how we look today, it's different. in saying that i do think as we've evolved as a company and how we look today it's different I think we've transformed the company in many ways, and we've become something to the customer where it's a collaboration to get where they want to go. i think we've transformed the company in many ways and we've become something to the customer where it's a collaboration to get where they want to go We're really having discussions at the client level, at the customer level, and even to make sure that it's not impacting their customer. we're really having discussions at the client level at the customer level and even to make sure that it's not impacting their customer I do think it's different, and I think we're in a different spot than we were in the past because of where we sit with craft. i do think it's different and i think we're in a different spot than we were in the past because of where we sit with craft As we have those discussions really around capital budgets, timing, how they interface, I think people really, when we have large load on one side and utility on the other, the dynamics are different. One's trying to go as fast as they possibly can, one's trying to make sure the ratepayer is in good shape. It seems like a model you meld together, and we're doing that. We're seeing those models where one's willing to pay to make sure the ratepayer's okay, and the other one's wanting to build. We're in the middle of that nexus, and I think as we see it, we can provide tons of solutions around that. We can work with customers on their capital. As we have those discussions really around capital budgets, timing, how they interface, I think people really, when we have large load on one side and utility on the other, the dynamics are different. as we have those discussions really around capital budgets timing how they interface i think people really when we have large load on one side and utility on the other the dynamics are different One's trying to go as fast as they possibly can, one's trying to make sure the ratepayer is in good shape. one's trying to go as fast as they possibly can one's trying to make sure the ratepayer is in good shape It seems like a model you meld together, and we're doing that. it seems like a model you meld together and we're doing that We're seeing those models where one's willing to pay to make sure the ratepayer's okay, and the other one's wanting to build. we're seeing those models where one's willing to pay to make sure the ratepayer's okay and the other one's wanting to build We're in the middle of that nexus, and I think as we see it, we can provide tons of solutions around that. we're in the middle of that nexus and i think as we see it we can provide tons of solutions around that We can work with customers on their capital. we can work with customers on their capital I think when I hear our customers say, "We're going to use Quanta, and that's how we're going to get our capital budget done," that means something to me. Years ago, you didn't hear that. I think you hear that a lot now. We have common analysts as well, I hear it on both sides. I think that's really our goal is to make our customer more successful. If we do that, we become more successful. I think both sides, from our large load technology type TAM to our utility TAM, and the renewables in the middle of generation in the middle of that. Yeah, look, I think we're in a unique position, great markets. I think we put the company in the right place from a strategy standpoint to grow with multiple ways to grow. I think when I hear our customers say, "We're going to use Quanta, and that's how we're going to get our capital budget done," that means something to me. i think when i hear our customers say "we're going to use quanta and that's how we're going to get our capital budget done," that means something to me Years ago, you didn't hear that. years ago you didn't hear that I think you hear that a lot now. i think you hear that a lot now We have common analysts as well, I hear it on both sides. we have common analysts as well i hear it on both sides I think that's really our goal is to make our customer more successful. i think that's really our goal is to make our customer more successful If we do that, we become more successful. if we do that we become more successful I think both sides, from our large load technology type TAM to our utility TAM, and the renewables in the middle of generation in the middle of that. i think both sides from our large load technology type tam to our utility tam and the renewables in the middle of generation in the middle of that Yeah, look, I think we're in a unique position, great markets. yeah look i think we're in a unique position great markets I think we put the company in the right place from a strategy standpoint to grow with multiple ways to grow. i think we put the company in the right place from a strategy standpoint to grow with multiple ways to grow Yeah, I think we'll continue to compound earnings. Yeah, I think we'll continue to compound earnings. yeah i think we'll continue to compound earnings

Speaker 1: How have all these changes translated your ability to increase the scope of work on a project? Maybe you can talk about maybe five years ago, which share of the project could you attack? And then with some of the acquisitions that you've done and the investments that you made on the supply chain side and areas like that, what does that look like now? How have all these changes translated your ability to increase the scope of work on a project? how have all these changes translated your ability to increase the scope of work on a project Maybe you can talk about maybe five years ago, which share of the project could you attack? maybe you can talk about maybe five years ago which share of the project could you attack And then with some of the acquisitions that you've done and the investments that you made on the supply chain side and areas like that, what does that look like now? and then with some of the acquisitions that you've done and the investments that you made on the supply chain side and areas like that what does that look like now

Speaker 2: Yeah. I think if we go to the utility TAM, in the past, generationally, it was primarily just kind of T&D build construction. We evolved that into some of the engineering supply chain, now the generation of both renewable and fossil. Really, unless they're building nuke, which some of them are, most aren't, that whole addressable market they're talking about is really a market that we can help with besides land or things like that. You get into the 90% from 50% on that big addressable market, which I think we have a good moat there on the utility side that allows us to really lean into that and become part of that industry and help. We've not only got ourselves in there, but we've allowed ourselves to take more of that position on the technology side. You saw this platform acquisition with Cupertino. Yeah. yeah I think if we go to the utility TAM, in the past, generationally, it was primarily just kind of T&D build construction. i think if we go to the utility tam in the past generationally it was primarily just kind of t&d build construction We evolved that into some of the engineering supply chain, now the generation of both renewable and fossil. we evolved that into some of the engineering supply chain now the generation of both renewable and fossil Really, unless they're building nuke, which some of them are, most aren't, that whole addressable market they're talking about is really a market that we can help with besides land or things like that. really unless they're building nuke which some of them are most aren't that whole addressable market they're talking about is really a market that we can help with besides land or things like that You get into the 90% from 50% on that big addressable market, which I think we have a good moat there on the utility side that allows us to really lean into that and become part of that industry and help. you get into the 90% from 50% on that big addressable market which i think we have a good moat there on the utility side that allows us to really lean into that and become part of that industry and help We've not only got ourselves in there, but we've allowed ourselves to take more of that position on the technology side. we've not only got ourselves in there but we've allowed ourselves to take more of that position on the technology side You saw this platform acquisition with Cupertino. you saw this platform acquisition with cupertino It really got us into the customer base on technology. They were first movers there, had been with technology for a long time. Now we've built that out to where we've added DSI, our mechanical platform, as well as Tri-City into that, then also our internal electric electrification, that low voltage electric that we put in there as well against that moat and really built that out to, we were just electric, now we can do mechanical. We bought Civil early last year in January. There's not much we can't do. We can do it all. It just depends on if we want to. I do think we were finishing up balance of plant data center today. We self-performed 85% of it. I think the same thing will exist. We're going to do it again. More and more scope, that continues. It really got us into the customer base on technology. it really got us into the customer base on technology They were first movers there, had been with technology for a long time. they were first movers there had been with technology for a long time Now we've built that out to where we've added DSI, our mechanical platform, as well as Tri-City into that, then also our internal electric electrification, that low voltage electric that we put in there as well against that moat and really built that out to, we were just electric, now we can do mechanical. now we've built that out to where we've added dsi our mechanical platform as well as tri-city into that then also our internal electric electrification that low voltage electric that we put in there as well against that moat and really built that out to we were just electric now we can do mechanical We bought Civil early last year in January. we bought civil early last year in january There's not much we can't do. there's not much we can't do We can do it all. we can do it all It just depends on if we want to. it just depends on if we want to I do think we were finishing up balance of plant data center today. i do think we were finishing up balance of plant data center today We self-performed 85% of it. we self-performed 85% of it I think the same thing will exist. We're going to do it again. i think the same thing will exist. we're going to do it again More and more scope, that continues. more and more scope that continues As we see these big builds coming out, we'll be able to take that addressable market. Other than chips, we're not going to mess with those. It's not us. We'll do the rest. As we see these big builds coming out, we'll be able to take that addressable market. as we see these big builds coming out we'll be able to take that addressable market Other than chips, we're not going to mess with those. other than chips we're not going to mess with those It's not us. it's not us We'll do the rest. we'll do the rest

Speaker 1: Got it. Okay. Just maybe sticking with M&A. For as long as I've covered Quanta, you had this great flywheel, right? Acquire family businesses, reasonable multiples. As the business has gotten larger, your deal size is going to need to increase to basically maintain the current level of growth. The question I have is, how do you keep that flywheel going? What sort of infrastructure are you putting into place, to ensure that you can sustain this pace of M&A to maintain your growth rate? Got it. got it Okay. okay Just maybe sticking with M&A. just maybe sticking with m&a For as long as I've covered Quanta, you had this great flywheel, right? for as long as i've covered quanta you had this great flywheel right Acquire family businesses, reasonable multiples. acquire family businesses reasonable multiples As the business has gotten larger, your deal size is going to need to increase to basically maintain the current level of growth. as the business has gotten larger your deal size is going to need to increase to basically maintain the current level of growth The question I have is, how do you keep that flywheel going? the question i have is how do you keep that flywheel going What sort of infrastructure are you putting into place, to ensure that you can sustain this pace of M&A to maintain your growth rate? what sort of infrastructure are you putting into place to ensure that you can sustain this pace of m&a to maintain your growth rate

Speaker 2: Look, I don't think we have to transform the business. I think family businesses, the last two are at least 50 years old. I think one's 120, 130 maybe. We see a lot of 100-year-old businesses. They want to perpetuate the name. They want to be a part of something different. We don't really source deals. It's something we do internally. We're not out trying to make acquisitions. They're coming to us. Do they fit the model or not? What does the management team want to do? Are they staying? Are they leaving? We want people to stay with us, stay with us long-term, and buy great companies. I think a fallacy is that we need to make acquisitions. We don't. It's inherent. Look, I don't think we have to transform the business. look i don't think we have to transform the business I think family businesses, the last two are at least 50 years old. i think family businesses the last two are at least 50 years old I think one's 120, 130 maybe. i think one's 120 130 maybe We see a lot of 100-year-old businesses. we see a lot of 100-year-old businesses They want to perpetuate the name. they want to perpetuate the name They want to be a part of something different. they want to be a part of something different We don't really source deals. we don't really source deals It's something we do internally. it's something we do internally We're not out trying to make acquisitions. we're not out trying to make acquisitions They're coming to us. they're coming to us Do they fit the model or not? do they fit the model or not What does the management team want to do? what does the management team want to do Are they staying? are they staying Are they leaving? are they leaving We want people to stay with us, stay with us long-term, and buy great companies. we want people to stay with us stay with us long-term and buy great companies I think a fallacy is that we need to make acquisitions. i think a fallacy is that we need to make acquisitions We don't. we don't It's inherent. it's inherent I look at it like, it's my money, it's your money, I want to spend it in a way where I believe we can get the most growth, we can generate the most cash. That's what we're trying to accomplish with acquisitions, is to make sure we invest free cash in the proper way. I think we've done that, the synergies are there when we make these acquisitions. We haven't bought companies today look, we see the data center market, the companies that we acquired, about 30% of the business was data center. We knew we could grow them because we knew the data center market on the other side, we knew what they did. It's a built-in synergy within the business because we have it at the customer level. I look at it like, it's my money, it's your money, I want to spend it in a way where I believe we can get the most growth, we can generate the most cash. i look at it like it's my money it's your money i want to spend it in a way where i believe we can get the most growth we can generate the most cash That's what we're trying to accomplish with acquisitions, is to make sure we invest free cash in the proper way. that's what we're trying to accomplish with acquisitions is to make sure we invest free cash in the proper way I think we've done that, the synergies are there when we make these acquisitions. i think we've done that the synergies are there when we make these acquisitions We haven't bought companies today look, we see the data center market, the companies that we acquired, about 30% of the business was data center. we haven't bought companies today look we see the data center market the companies that we acquired about 30% of the business was data center We knew we could grow them because we knew the data center market on the other side, we knew what they did. we knew we could grow them because we knew the data center market on the other side we knew what they did It's a built-in synergy within the business because we have it at the customer level. it's a built-in synergy within the business because we have it at the customer level We don't have to press these deals to say there's a synergy. We're very disciplined about it. We owe it to our ownership to be disciplined. I think we can continue to acquire great companies with great management teams that really fit our model, and I think we've done a nice job seeing markets, the vertical supply chain, the things that we've done there. We can see the markets and where they're going. As long as we can predict where things are going, we're able to lean into great businesses over time, and yeah, we've done it ourselves. We don't have to press these deals to say there's a synergy. we don't have to press these deals to say there's a synergy We're very disciplined about it. we're very disciplined about it We owe it to our ownership to be disciplined. we owe it to our ownership to be disciplined I think we can continue to acquire great companies with great management teams that really fit our model, and I think we've done a nice job seeing markets, the vertical supply chain, the things that we've done there. i think we can continue to acquire great companies with great management teams that really fit our model and i think we've done a nice job seeing markets the vertical supply chain the things that we've done there We can see the markets and where they're going. we can see the markets and where they're going As long as we can predict where things are going, we're able to lean into great businesses over time, and yeah, we've done it ourselves. as long as we can predict where things are going we're able to lean into great businesses over time and yeah we've done it ourselves

Speaker 1: Good. Okay. One through line that I am picking up on the M&A side is that you're leaning more into the mechanical, electrical, plumbing side of craft labor. Can you just expand on that and just how you see that market evolving for Quanta? Maybe from an M&A perspective, but also from just a project-based perspective, right? We're hearing more about these large-scale mega projects, and growing MEP intensity. Maybe spend some time on that, please. Good. good Okay. okay One through line that I am picking up on the M&A side is that you're leaning more into the mechanical, electrical, plumbing side of craft labor. one through line that i am picking up on the m&a side is that you're leaning more into the mechanical electrical plumbing side of craft labor Can you just expand on that and just how you see that market evolving for Quanta? can you just expand on that and just how you see that market evolving for quanta Maybe from an M&A perspective, but also from just a project-based perspective, right? maybe from an m&a perspective but also from just a project-based perspective right We're hearing more about these large-scale mega projects, and growing MEP intensity. we're hearing more about these large-scale mega projects and growing mep intensity Maybe spend some time on that, please. maybe spend some time on that please

Speaker 2: Yeah. It's the client. The client's asking us to do more, we're listening. We need platform companies to do that. DSI, we felt like we needed to be in the mechanical business. It's craft. It's something that we relate nicely. Great family. We were able to really lean into that and put some capital in, and we're growing out the fabrication facilities today. We're going to double the size of our fabrication. That's been something that we're able to really meet the customer demand on that. It's not just chips. It's from Tesla to Samsung, all of them. I just think we've really been able to move that way past just the data center piece of it. The craft, I think in the middle of that is just growing that craft. Yeah. yeah It's the client. it's the client The client's asking us to do more, we're listening. the client's asking us to do more we're listening We need platform companies to do that. we need platform companies to do that DSI, we felt like we needed to be in the mechanical business. dsi we felt like we needed to be in the mechanical business It's craft. it's craft It's something that we relate nicely. it's something that we relate nicely Great family. great family We were able to really lean into that and put some capital in, and we're growing out the fabrication facilities today. we were able to really lean into that and put some capital in and we're growing out the fabrication facilities today We're going to double the size of our fabrication. we're going to double the size of our fabrication That's been something that we're able to really meet the customer demand on that. that's been something that we're able to really meet the customer demand on that It's not just chips. it's not just chips It's from Tesla to Samsung, all of them. it's from tesla to samsung all of them I just think we've really been able to move that way past just the data center piece of it. i just think we've really been able to move that way past just the data center piece of it The craft, I think in the middle of that is just growing that craft. the craft i think in the middle of that is just growing that craft What they want is our ability to give curriculum training, the things that we've invested in since 2009. Management, that's my background. Really being fourth generation is we've really put the time into craft. If we get someone into our facilities that can't climb because they're scared of heights, 100 ft is pretty tall. You ever been up there? It'll get a little shaky on you. Not a lot of people want that. They get back down, about 30% fall out on the first pole. Now, instead of going home, they go to the inside electric, or they go to pipefitter, welder, or plumbers. We're able to really move people around and get a lot more people through our trade organizations. We see a lot of people try, like that'll say, "We'll give you $100 million. What they want is our ability to give curriculum training, the things that we've invested in since 2009. what they want is our ability to give curriculum training the things that we've invested in since 2009 Management, that's my background. management that's my background Really being fourth generation is we've really put the time into craft. really being fourth generation is we've really put the time into craft If we get someone into our facilities that can't climb because they're scared of heights, 100 ft is pretty tall. if we get someone into our facilities that can't climb because they're scared of heights 100 ft is pretty tall You ever been up there? you ever been up there It'll get a little shaky on you. it'll get a little shaky on you Not a lot of people want that. not a lot of people want that They get back down, about 30% fall out on the first pole. they get back down about 30% fall out on the first pole Now, instead of going home, they go to the inside electric, or they go to pipefitter, welder, or plumbers. now instead of going home they go to the inside electric or they go to pipefitter welder or plumbers We're able to really move people around and get a lot more people through our trade organizations. we're able to really move people around and get a lot more people through our trade organizations We see a lot of people try, like that'll say, "We'll give you $100 million. we see a lot of people try like that'll say "we'll give you $100 million That's going to do it. Money doesn't buy craft. Craft builds craft. Journeymen builds journeymen. You can't think that you're going to put $100 million into anything today and get craft tomorrow. That ain't going to happen. It takes years to train. We're very proud of the journeymen that we have and the training we've done, and it's a fallacy to think. We've been investing $200 million a year for the past, I don't know, since 2009, in training, and we're proud of that. I would just say like, not only are we making the acquisitions against it, we're training the people that allow us to get what I would consider the synergies and the outward growth of the company. That's going to do it. that's going to do it Money doesn't buy craft. money doesn't buy craft Craft builds craft. craft builds craft Journeymen builds journeymen. journeymen builds journeymen You can't think that you're going to put $100 million into anything today and get craft tomorrow. you can't think that you're going to put $100 million into anything today and get craft tomorrow That ain't going to happen. that ain't going to happen It takes years to train. it takes years to train We're very proud of the journeymen that we have and the training we've done, and it's a fallacy to think. we're very proud of the journeymen that we have and the training we've done and it's a fallacy to think We've been investing $200 million a year for the past, I don't know, since 2009, in training, and we're proud of that. we've been investing $200 million a year for the past i don't know since 2009 in training and we're proud of that I would just say like, not only are we making the acquisitions against it, we're training the people that allow us to get what I would consider the synergies and the outward growth of the company. i would just say like, not only are we making the acquisitions against it we're training the people that allow us to get what i would consider the synergies and the outward growth of the company

Speaker 1: Got it. Okay. Let's actually shift over to talking more about your end markets. Both Duke, you and Jayshree, you spend a lot of time at the highest levels with clients. I'm talking about the utilities, developers, hyperscalers, colocators. Can you bring us into those conversations? What are their concerns and what are they asking you for? Got it. got it Okay. okay Let's actually shift over to talking more about your end markets. let's actually shift over to talking more about your end markets Both Duke, you and Jayshree, you spend a lot of time at the highest levels with clients. both duke you and jayshree you spend a lot of time at the highest levels with clients I'm talking about the utilities, developers, hyperscalers, colocators. i'm talking about the utilities developers hyperscalers colocators Can you bring us into those conversations? can you bring us into those conversations What are their concerns and what are they asking you for? what are their concerns and what are they asking you for

Speaker 2: I'll let Jayshree go first. She's in there more than me. I'll let Jayshree go first. i'll let jayshree go first She's in there more than me. she's in there more than me

Speaker 3: Yeah. I think everyone is really excited about where they sit. I think it's a once in a generation opportunity for a lot of our customers and for ourselves. It's generally excitement is what we see. Now, having said that, there are challenges that every part of our business is dealing with. You've got affordability concerns, you've got permitting challenges, you've got political challenges, and you've got speed to market challenges. At every level that we're working with, you've got to be able to address all of those at the same time. I think that's really a unique position that we can sit in because we have the ability to really affect, in some areas more than others, but literally we affect every one of those areas. Yeah. yeah I think everyone is really excited about where they sit. i think everyone is really excited about where they sit I think it's a once in a generation opportunity for a lot of our customers and for ourselves. i think it's a once in a generation opportunity for a lot of our customers and for ourselves It's generally excitement is what we see. it's generally excitement is what we see Now, having said that, there are challenges that every part of our business is dealing with. now having said that there are challenges that every part of our business is dealing with You've got affordability concerns, you've got permitting challenges, you've got political challenges, and you've got speed to market challenges. you've got affordability concerns you've got permitting challenges you've got political challenges and you've got speed to market challenges At every level that we're working with, you've got to be able to address all of those at the same time. at every level that we're working with you've got to be able to address all of those at the same time I think that's really a unique position that we can sit in because we have the ability to really affect, in some areas more than others, but literally we affect every one of those areas. i think that's really a unique position that we can sit in because we have the ability to really affect in some areas more than others but literally we affect every one of those areas Our ability to help our customers weave through these dynamics has allowed us to really become more of a partner with every one of them and allow us to give you all the certainty of why we're confident about our five years and even beyond that, what we're seeing around this infrastructure build. It's really a question of what we're seeing is more when, not if. How do we accelerate and get more certain around the when is what we're working with most of our customers. Well, I'll stop there and let Duke add more to that. Our ability to help our customers weave through these dynamics has allowed us to really become more of a partner with every one of them and allow us to give you all the certainty of why we're confident about our five years and even beyond that, what we're seeing around this infrastructure build. our ability to help our customers weave through these dynamics has allowed us to really become more of a partner with every one of them and allow us to give you all the certainty of why we're confident about our five years and even beyond that what we're seeing around this infrastructure build It's really a question of what we're seeing is more when, not if. it's really a question of what we're seeing is more when not if How do we accelerate and get more certain around the when is what we're working with most of our customers. how do we accelerate and get more certain around the when is what we're working with most of our customers Well, I'll stop there and let Duke add more to that. well i'll stop there and let duke add more to that

Speaker 2: Yeah. Look, we're in a different spot than we have been. We have a sense of responsibility when people say, we're going to use Quanta to build this capital and stick to our plan. I take it personally. We're discussing it all the time. It showed up in the past year or so where I think the customer's asking us to change them as well. We're trying to change underneath us. We're no longer just building out infrastructure. We're also being asked to look at it outward five years, make sure the supply chain's there, make sure we have right of way, help with permitting, help with political, get us where we want to go. Stay with me. Help me. That discussion's a different discussion than answering an RFQ. It's way different. That's where we're at today, is the discussion's more strategic. Yeah. yeah Look, we're in a different spot than we have been. look we're in a different spot than we have been We have a sense of responsibility when people say, we're going to use Quanta to build this capital and stick to our plan. we have a sense of responsibility when people say we're going to use quanta to build this capital and stick to our plan I take it personally. i take it personally We're discussing it all the time. we're discussing it all the time It showed up in the past year or so where I think the customer's asking us to change them as well. it showed up in the past year or so where i think the customer's asking us to change them as well We're trying to change underneath us. we're trying to change underneath us We're no longer just building out infrastructure. we're no longer just building out infrastructure We're also being asked to look at it outward five years, make sure the supply chain's there, make sure we have right of way, help with permitting, help with political, get us where we want to go. we're also being asked to look at it outward five years make sure the supply chain's there make sure we have right of way help with permitting help with political get us where we want to go Stay with me. stay with me Help me. help me That discussion's a different discussion than answering an RFQ. that discussion's a different discussion than answering an rfq It's way different. it's way different That's where we're at today, is the discussion's more strategic. that's where we're at today is the discussion's more strategic It's long. We're prudent about it when we look at it. I commend them for doing it. I do. I think it's something that to get out in front of something and recognize the fact that I'm not going to be able to get this done without help, we have to collaborate ourselves. We're collaborating as well. We need their help to help them. It's very much a 360 the way we're thinking through it with clients today, and the more that we can get involved, the earlier we can get involved, the better we execute it at the price and at the timeframe. It's long. it's long We're prudent about it when we look at it. we're prudent about it when we look at it I commend them for doing it. i commend them for doing it I do. i do I think it's something that to get out in front of something and recognize the fact that I'm not going to be able to get this done without help, we have to collaborate ourselves. i think it's something that to get out in front of something and recognize the fact that i'm not going to be able to get this done without help we have to collaborate ourselves We're collaborating as well. we're collaborating as well We need their help to help them. we need their help to help them It's very much a 360 the way we're thinking through it with clients today, and the more that we can get involved, the earlier we can get involved, the better we execute it at the price and at the timeframe. it's very much a 360 the way we're thinking through it with clients today and the more that we can get involved the earlier we can get involved the better we execute it at the price and at the timeframe

Speaker 1: Got it. If you look at your utility customers, and then your large load customers, how far out are those conversations extending to? Got it. got it If you look at your utility customers, and then your large load customers, how far out are those conversations extending to? if you look at your utility customers and then your large load customers how far out are those conversations extending to

Speaker 2: Yeah. We're well past 2030 in places in the utility business especially. It's out past 2030. The large load, I would say even same. Those discussions are ongoing. They're all in different phases, they're all in different time frames, but if you're looking at a combined cycle today, if you order it today, your 30 months, I don't know what they're saying today, but 30, 36 months, whatever they said, it's over 30 months. Then it takes a couple of years to build it. You're five years from today if you order today. Any orders they have, or if they book next quarter, they're five years from the next quarter. Those bookings are pushing outward, so you can see it. You've got to build transmission and substations in. It's going to feed something. Yeah. yeah We're well past 2030 in places in the utility business especially. we're well past 2030 in places in the utility business especially It's out past 2030. it's out past 2030 The large load, I would say even same. the large load i would say even same Those discussions are ongoing. those discussions are ongoing They're all in different phases, they're all in different time frames, but if you're looking at a combined cycle today, if you order it today, your 30 months, I don't know what they're saying today, but 30, 36 months, whatever they said, it's over 30 months. they're all in different phases they're all in different time frames but if you're looking at a combined cycle today if you order it today your 30 months i don't know what they're saying today but 30 36 months whatever they said it's over 30 months Then it takes a couple of years to build it. then it takes a couple of years to build it You're five years from today if you order today. you're five years from today if you order today Any orders they have, or if they book next quarter, they're five years from the next quarter. any orders they have or if they book next quarter they're five years from the next quarter Those bookings are pushing outward, so you can see it. those bookings are pushing outward so you can see it You've got to build transmission and substations in. you've got to build transmission and substations in It's going to feed something. it's going to feed something You have a lot of power today that's being done, what I would consider a bridge. If you're building 100 megs at times, it's bridge power, it's going to go to the grid at some point. You've got to build the grid back to it. We're on both sides of that. Sometimes we're building the intermittent power and have plans to build the grid. Look, I like where we sit. I think it's much longer than 2030. I don't know why we put 2030 as the timeframe. Everything stops in 2030, the world's going to end. Look, it's still moving forward. My God. We're well past 2030. You have a lot of power today that's being done, what I would consider a bridge. you have a lot of power today that's being done what i would consider a bridge If you're building 100 megs at times, it's bridge power, it's going to go to the grid at some point. if you're building 100 megs at times it's bridge power it's going to go to the grid at some point You've got to build the grid back to it. you've got to build the grid back to it We're on both sides of that. we're on both sides of that Sometimes we're building the intermittent power and have plans to build the grid. sometimes we're building the intermittent power and have plans to build the grid Look, I like where we sit. look i like where we sit I think it's much longer than 2030. i think it's much longer than 2030 I don't know why we put 2030 as the timeframe. i don't know why we put 2030 as the timeframe Everything stops in 2030, the world's going to end. everything stops in 2030 the world's going to end Look, it's still moving forward. look it's still moving forward My God. my god We're well past 2030. we're well past 2030

Speaker 1: Yeah. We track the multi-year utility CapEx budgets, right? Yeah. yeah We track the multi-year utility CapEx budgets, right? we track the multi-year utility capex budgets right

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Just only maybe one or two years ago, you saw those budgets growing at 8%, 9% a year. Now, if you look at least the last quarter, right? These multi-year budgets are growing at +20%. How do we think about that in the context of when that should translate into an acceleration in Quanta's utility business within electric power? Just only maybe one or two years ago, you saw those budgets growing at 8%, 9 % a year. just only maybe one or two years ago you saw those budgets growing at 8% 9 % a year Now, if you look at least the last quarter, right? now if you look at least the last quarter right These multi-year budgets are growing at + 20%. these multi-year budgets are growing at + 20% How do we think about that in the context of when that should translate into an acceleration in Quanta's utility business within electric power? how do we think about that in the context of when that should translate into an acceleration in quanta's utility business within electric power

Speaker 2: Look, I think we're planning for that, for sure. Today, we see the growth rates in our people and the transmission business. We have a really nice business growing in a normalized way today. That's what it's doing. We have not seen the big project stack on it yet. I think you probably start looking into this year, early next year, start going to construction on some of them. That's going to elongate. It's going to be broad. We've seen these cycles before, big ones, but I think this is bigger than normal. The bigger projects will start to come in in 2027 and really stack on, and you've got five to seven-year builds on just what you see. I think it's going to get bigger than, go longer than that, of course. Look, I think we're planning for that, for sure. look i think we're planning for that for sure Today, we see the growth rates in our people and the transmission business. today we see the growth rates in our people and the transmission business We have a really nice business growing in a normalized way today. we have a really nice business growing in a normalized way today That's what it's doing. that's what it's doing We have not seen the big project stack on it yet. we have not seen the big project stack on it yet I think you probably start looking into this year, early next year, start going to construction on some of them. i think you probably start looking into this year early next year start going to construction on some of them That's going to elongate. that's going to elongate It's going to be broad. it's going to be broad We've seen these cycles before, big ones, but I think this is bigger than normal. we've seen these cycles before big ones but i think this is bigger than normal The bigger projects will start to come in in 2027 and really stack on, and you've got five to seven-year builds on just what you see. the bigger projects will start to come in in 2027 and really stack on and you've got five to seven-year builds on just what you see I think it's going to get bigger than, go longer than that, of course. i think it's going to get bigger than go longer than that of course I do think, after that, we're in early innings on the bigger stuff that would stack on top. Same with our generation. There as well, I think. I do think, after that, we're in early innings on the bigger stuff that would stack on top. i do think after that we're in early innings on the bigger stuff that would stack on top Same with our generation. same with our generation There as well, I think. there as well i think

Speaker 1: Okay. Well, since you mentioned transmission, let's jump there. Can you frame up the large transmission opportunity? At least from the projects that we track, there's a pretty big center of gravity in Texas, right? One thing I'm thinking about in Texas is that it's probably a little bit easier from a permitting standpoint to get things done there, maybe a little bit more certainty. I don't know. You tell me. I guess, how do you think through the stacking of those sorts of projects? Okay. okay Well, since you mentioned transmission, let's jump there. well since you mentioned transmission let's jump there Can you frame up the large transmission opportunity? can you frame up the large transmission opportunity At least from the projects that we track, there's a pretty big center of gravity in Texas, right? at least from the projects that we track there's a pretty big center of gravity in texas right One thing I'm thinking about in Texas is that it's probably a little bit easier from a permitting standpoint to get things done there, maybe a little bit more certainty. one thing i'm thinking about in texas is that it's probably a little bit easier from a permitting standpoint to get things done there maybe a little bit more certainty I don't know. i don't know You tell me. you tell me I guess, how do you think through the stacking of those sorts of projects? i guess how do you think through the stacking of those sorts of projects

Speaker 2: Yeah. I would tell you, Texas, until you go through the wrong piece of property, it's great. You try to go through the wrong piece of property, it's no fun. Yeah, look, we've got to build infrastructure. I think we're making progress regulatorily. Texas, it will start first, I believe. You're seeing MISO come out with projects that people are winning there. I think they continue to have tranches. There's some backlash on whether they weren't competitive or not. I doubt they'll go backwards, but they may. I think it'll be a blend of both for the regulated utility to stay there, and then they'll have some competitive like they're doing now. It seems to be the way they're going to go, but we'll see. Either way, we're on both sides. It doesn't matter to us. We want to build it. I do see those things moving forward. Yeah. yeah I would tell you, Texas, until you go through the wrong piece of property, it's great. i would tell you texas until you go through the wrong piece of property it's great You try to go through the wrong piece of property, it's no fun. you try to go through the wrong piece of property it's no fun Yeah, look, we've got to build infrastructure. yeah look we've got to build infrastructure I think we're making progress regulatorily. i think we're making progress regulatorily Texas, it will start first, I believe. texas it will start first i believe You're seeing MISO come out with projects that people are winning there. you're seeing miso come out with projects that people are winning there I think they continue to have tranches. i think they continue to have tranches There's some backlash on whether they weren't competitive or not. there's some backlash on whether they weren't competitive or not I doubt they'll go backwards, but they may. i doubt they'll go backwards but they may I think it'll be a blend of both for the regulated utility to stay there, and then they'll have some competitive like they're doing now. i think it'll be a blend of both for the regulated utility to stay there and then they'll have some competitive like they're doing now It seems to be the way they're going to go, but we'll see. it seems to be the way they're going to go but we'll see Either way, we're on both sides. either way we're on both sides It doesn't matter to us. it doesn't matter to us We want to build it. we want to build it I do see those things moving forward. i do see those things moving forward In order to really facilitate what we're trying to do as a country with the load, we're going to double load in the country. The need for transmission congestion is probably $12 billion-$15 billion a year, somewhere in there, of congestion. It's the cheapest form of energy. We've got to get these lines built, and I think you got to walk it back, and I know I hear a lot about, well, it's only 50% utilized. The national highway system is 35% utilized. You going to get rid of the highways, too? Are you not going to build any more? Look, the transmission system was never meant to be 100%, ever. People go to sleep. Like, something will sleep. You got to sleep a little bit, and when you sleep, the lights go out, everything goes out, everything's quiet, your bill goes way down. In order to really facilitate what we're trying to do as a country with the load, we're going to double load in the country. in order to really facilitate what we're trying to do as a country with the load we're going to double load in the country The need for transmission congestion is probably $12 billion-$15 billion a year, somewhere in there, of congestion. the need for transmission congestion is probably $12 billion-$15 billion a year somewhere in there of congestion It's the cheapest form of energy. it's the cheapest form of energy We've got to get these lines built, and I think you got to walk it back, and I know I hear a lot about, well, it's only 50% utilized. we've got to get these lines built and i think you got to walk it back and i know i hear a lot about well it's only 50% utilized The national highway system is 35% utilized. the national highway system is 35% utilized You going to get rid of the highways, too? you going to get rid of the highways too Are you not going to build any more? are you not going to build any more Look, the transmission system was never meant to be 100%, ever. look the transmission system was never meant to be 100% ever People go to sleep. people go to sleep Like, something will sleep. like something will sleep You got to sleep a little bit, and when you sleep, the lights go out, everything goes out, everything's quiet, your bill goes way down. you got to sleep a little bit and when you sleep the lights go out everything goes out everything's quiet your bill goes way down It's 50%. It's not ever going to be more than that. That's a fallacy. You've got to have that transmission to get it to load centers. We really need the permitting and the reform and some of the things to help that. You still have a lot at the states. The states got to get behind it. I do think the vertically integrated utilities are probably in a better position in growth. Hopefully, we can do some regulatory things to give both sides of that some ways to grow generation because we need the generation as well. It's 50%. it's 50% It's not ever going to be more than that. it's not ever going to be more than that That's a fallacy. that's a fallacy You've got to have that transmission to get it to load centers. you've got to have that transmission to get it to load centers We really need the permitting and the reform and some of the things to help that. we really need the permitting and the reform and some of the things to help that You still have a lot at the states. you still have a lot at the states The states got to get behind it. the states got to get behind it I do think the vertically integrated utilities are probably in a better position in growth. i do think the vertically integrated utilities are probably in a better position in growth Hopefully, we can do some regulatory things to give both sides of that some ways to grow generation because we need the generation as well. hopefully we can do some regulatory things to give both sides of that some ways to grow generation because we need the generation as well

Speaker 1: Is there anything that maybe makes you more optimistic on the pace of the build? From a regulatory standpoint, there's a recent acquisition of Dominion by NextEra. Is there anything that kind of makes you look more confident on that? Is there anything that maybe makes you more optimistic on the pace of the build? is there anything that maybe makes you more optimistic on the pace of the build From a regulatory standpoint, there's a recent acquisition of Dominion by NextEra. from a regulatory standpoint there's a recent acquisition of dominion by nextera Is there anything that kind of makes you look more confident on that? is there anything that kind of makes you look more confident on that

Speaker 2: We have a lot of smart people trying to build generation and transmission in the PJM. We got to get some political pressure off and build it in. What I would say, demand is there. The willingness of technology to pay for incremental cost to the ratepayer, drive the ratepayers. Philosophically, under any scenario, more generation, more transmission should equal less to the ratepayer. It just should. There's no reason why we can't do that. It's being done in Indiana. In Indiana, if you look at the model in Indiana, where NiSource is building there, it's $7 a month to the ratepayer deduction because of load in. It can be done. It's easier for the vertical people to do so. Definitely, I think you're going to see scenarios where you're seeing that model get pressed, and so it'll come down. We have a lot of smart people trying to build generation and transmission in the PJM. we have a lot of smart people trying to build generation and transmission in the pjm We got to get some political pressure off and build it in. we got to get some political pressure off and build it in What I would say, demand is there. what i would say demand is there The willingness of technology to pay for incremental cost to the ratepayer, drive the ratepayers. the willingness of technology to pay for incremental cost to the ratepayer drive the ratepayers Philosophically, under any scenario, more generation, more transmission should equal less to the ratepayer. philosophically under any scenario more generation more transmission should equal less to the ratepayer It just should. it just should There's no reason why we can't do that. there's no reason why we can't do that It's being done in Indiana. it's being done in indiana In Indiana, if you look at the model in Indiana, where NiSource is building there, it's $7 a month to the ratepayer deduction because of load in. in indiana if you look at the model in indiana where nisource is building there it's $7 a month to the ratepayer deduction because of load in It can be done. it can be done It's easier for the vertical people to do so. it's easier for the vertical people to do so Definitely, I think you're going to see scenarios where you're seeing that model get pressed, and so it'll come down. definitely i think you're going to see scenarios where you're seeing that model get pressed and so it'll come down We got to have those kind of things happen in order for us to perpetuate where we want to go as a country, and that demand will allow us to do so. We got to have those kind of things happen in order for us to perpetuate where we want to go as a country, and that demand will allow us to do so. we got to have those kind of things happen in order for us to perpetuate where we want to go as a country and that demand will allow us to do so

Speaker 1: What makes 765 kV so much more complex than 300 kV or 500 kV? Can you talk about just what makes Quanta just well-positioned to win on that part of the cycle? What makes 765 kV so much more complex than 300 kV or 500 kV? what makes 765 kv so much more complex than 300 kv or 500 kv Can you talk about just what makes Quanta just well-positioned to win on that part of the cycle? can you talk about just what makes quanta just well-positioned to win on that part of the cycle

Speaker 2: 765 kV is big and heavy. In some parts of the construction, you can go pick a block up with your hand. You got to have a 12-ton crane, and you got to have the block to pick it up, and you got to pull wire across it. It's six-bundle conductor. It's a different level of construction. When you think about it's big. There's a lot of capital that goes into that, a lot of planning that goes into it. For us, you can 25% more right away for six times load. I sign up for that. Very hard to build DC across North America because it doesn't drop load. 765 kV allows you to drop load wherever you want on AC, so you can do it. You don't get as good of quality, but I won't debate that. That's for engineers. 765 kV is big and heavy. 765 kv is big and heavy In some parts of the construction, you can go pick a block up with your hand. in some parts of the construction you can go pick a block up with your hand You got to have a 12-ton crane, and you got to have the block to pick it up, and you got to pull wire across it. you got to have a 12-ton crane and you got to have the block to pick it up and you got to pull wire across it It's six-bundle conductor. it's six-bundle conductor It's a different level of construction. it's a different level of construction When you think about it's big. when you think about it's big There's a lot of capital that goes into that, a lot of planning that goes into it. there's a lot of capital that goes into that a lot of planning that goes into it For us, you can 25% more right away for six times load. for us you can 25% more right away for six times load I sign up for that. i sign up for that Very hard to build DC across North America because it doesn't drop load. 765 kV allows you to drop load wherever you want on AC, so you can do it. very hard to build dc across north america because it doesn't drop load 765 kv allows you to drop load wherever you want on ac so you can do it You don't get as good of quality, but I won't debate that. you don't get as good of quality but i won't debate that That's for engineers. that's for engineers It is something that I believe, for a backbone infrastructure, we need it in the country. It'll allow us to really move generation much more economical across large territories. I think it's going to get built. It's been talked about for, I don't know, my career, 20 years. It's always been needed. We just think now the demand's going to press it, and either we're going to build multiple corridors, which I don't think we'll do. We're highly likely to see 765 kV in a meaningful way across North America. It is something that I believe, for a backbone infrastructure, we need it in the country. it is something that i believe for a backbone infrastructure we need it in the country It'll allow us to really move generation much more economical across large territories. it'll allow us to really move generation much more economical across large territories I think it's going to get built. i think it's going to get built It's been talked about for, I don't know, my career, 20 years. it's been talked about for i don't know my career 20 years It's always been needed. it's always been needed We just think now the demand's going to press it, and either we're going to build multiple corridors, which I don't think we'll do. we just think now the demand's going to press it and either we're going to build multiple corridors which i don't think we'll do We're highly likely to see 765 kV in a meaningful way across North America. we're highly likely to see 765 kv in a meaningful way across north america

Speaker 1: Okay. Can you talk about, with this build-out of 765 kV, how that creates follow along spur line opportunities? As we think about over the next 10 years, this is the first wave of building that trunk line. How does that cascade out as you're densifying that network? Okay. okay Can you talk about, with this build-out of 765 kV, how that creates follow along spur line opportunities? can you talk about with this build-out of 765 kv how that creates follow along spur line opportunities As we think about over the next 10 years, this is the first wave of building that trunk line. as we think about over the next 10 years this is the first wave of building that trunk line How does that cascade out as you're densifying that network? how does that cascade out as you're densifying that network

Speaker 2: Yeah. Look, I think of it just like a highway. I always like to go to highway because people understand. You build a 24-lane highway, it comes down to a looper. You have offshoots of it all the way once you get a corridor from point to point. All the lower voltage goes out to feed industrial parks or data center or whatever it may be, but you have to have the trunk line to do so. It's 10 to one normally, is what you see. A big line, you get 10 off of it normally. It takes time, but over time, that's what you'll see. Yeah. yeah Look, I think of it just like a highway. look i think of it just like a highway I always like to go to highway because people understand. i always like to go to highway because people understand You build a 24-lane highway, it comes down to a looper. you build a 24-lane highway it comes down to a looper You have offshoots of it all the way once you get a corridor from point to point. you have offshoots of it all the way once you get a corridor from point to point All the lower voltage goes out to feed industrial parks or data center or whatever it may be, but you have to have the trunk line to do so. all the lower voltage goes out to feed industrial parks or data center or whatever it may be but you have to have the trunk line to do so It's 10 to one normally, is what you see. it's 10 to one normally is what you see A big line, you get 10 off of it normally. a big line you get 10 off of it normally It takes time, but over time, that's what you'll see. it takes time but over time that's what you'll see

Speaker 3: Which just extends the capital build when you think about it, right? Which just extends the capital build when you think about it, right? which just extends the capital build when you think about it right

Speaker 1: You're basically saying this is a 10x multiplier on- You're basically saying this is a 10x multiplier on- you're basically saying this is a 10x multiplier on- Okay. Okay. okay

Speaker 3: ... on capital over time. ... on capital over time. ... on capital over time

Speaker 2: If you had a mile of 765 kV, you got 10 of everything else. If you had a mile of 765 kV, you got 10 of everything else. if you had a mile of 765 kv you got 10 of everything else

Speaker 1: Wow, okay. Wow, okay. wow okay

Speaker 2: I do think when you look at it, we see that. We see them planning to build those things. If you go back, CREZ wasn't 765 kV, but it was 345 kV double circuit. The CREZ lines are at capacity. We had the same debate, should we build it? We also, with the winter storm in Texas, had a huge issue with CREZ. Yeah, we should build it. Look, we have demand outside of data centers, and we have demand with industrials. We have demand across the country with the pharmaceuticals. I can go on and on. Industrial, re-industrialization of North America. It's here, and we got to wake up and start building the infrastructure. I do think when you look at it, we see that. i do think when you look at it we see that We see them planning to build those things. we see them planning to build those things If you go back, CREZ wasn't 765 kV, but it was 345 kV double circuit. if you go back crez wasn't 765 kv but it was 345 kv double circuit The CREZ lines are at capacity. the crez lines are at capacity We had the same debate, should we build it? we had the same debate should we build it We also, with the winter storm in Texas, had a huge issue with CREZ. we also with the winter storm in texas had a huge issue with crez Yeah, we should build it. yeah we should build it Look, we have demand outside of data centers, and we have demand with industrials. look we have demand outside of data centers and we have demand with industrials We have demand across the country with the pharmaceuticals. we have demand across the country with the pharmaceuticals I can go on and on. i can go on and on Industrial, re-industrialization of North America. industrial re-industrialization of north america It's here, and we got to wake up and start building the infrastructure. it's here and we got to wake up and start building the infrastructure

Speaker 1: Got it. That is actually a good segue to the next question. I want to talk a little bit more about Cupertino and Dynamic too, the recent acquisitions, and just how can Quanta serve large load customers better now versus before? Got it. got it That is actually a good segue to the next question. I want to talk a little bit more about Cupertino and Dynamic too, the recent acquisitions, and just how can Quanta serve large load customers better now versus before? that is actually a good segue to the next question. i want to talk a little bit more about cupertino and dynamic too the recent acquisitions and just how can quanta serve large load customers better now versus before

Speaker 2: It's just a different discussion. Both of them are fabricating in obviously different disciplines. The engineering, very common, the way we were able to kind of put them together, engineer together, do some things there. I think it's more I don't think we're doing anything different other than scale. We can scale across the lower 48 and into Canada if we need to. That scale of those businesses, we've added Tri-City in there as well. I think we're just able to see more and take on more of where they're at, build offices, build capabilities. We had a nice business that was more, we call it power plant industrial inside about 1,000 electric. We're taking those 1,000 and put them into that framework on the electric side. It's just a different discussion. it's just a different discussion Both of them are fabricating in obviously different disciplines. both of them are fabricating in obviously different disciplines The engineering, very common, the way we were able to kind of put them together, engineer together, do some things there. the engineering very common the way we were able to kind of put them together engineer together do some things there I think it's more I don't think we're doing anything different other than scale. i think it's more i don't think we're doing anything different other than scale We can scale across the lower 48 and into Canada if we need to. we can scale across the lower 48 and into canada if we need to That scale of those businesses, we've added Tri-City in there as well. that scale of those businesses we've added tri-city in there as well I think we're just able to see more and take on more of where they're at, build offices, build capabilities. i think we're just able to see more and take on more of where they're at build offices build capabilities We had a nice business that was more, we call it power plant industrial inside about 1,000 electric. we had a nice business that was more we call it power plant industrial inside about 1,000 electric We're taking those 1,000 and put them into that framework on the electric side. we're taking those 1,000 and put them into that framework on the electric side The mechanical side, I think, as you start to see generation get built from fossil, you'll see heavy mechanical that comes back meaningfully in these type of builds. It gives us just a lot of framework opportunity. We talk about all the time the portfolio and how the labor's fungible. You start to see, okay, neither one of these companies were really data center driven. They were doing all kinds of other things. You can see the fungibility of it. Now you have a generation market coming on that's going to start in a meaningful build on the way, on forward looking. I just think the opportunity for us to expand their capabilities are there, and I like the fact that they're both union and they're working together quite a bit. We're not having issues. The mechanical side, I think, as you start to see generation get built from fossil, you'll see heavy mechanical that comes back meaningfully in these type of builds. the mechanical side i think as you start to see generation get built from fossil you'll see heavy mechanical that comes back meaningfully in these type of builds It gives us just a lot of framework opportunity. it gives us just a lot of framework opportunity We talk about all the time the portfolio and how the labor's fungible. we talk about all the time the portfolio and how the labor's fungible You start to see, okay, neither one of these companies were really data center driven. you start to see okay neither one of these companies were really data center driven They were doing all kinds of other things. they were doing all kinds of other things You can see the fungibility of it. you can see the fungibility of it Now you have a generation market coming on that's going to start in a meaningful build on the way, on forward looking. now you have a generation market coming on that's going to start in a meaningful build on the way on forward looking I just think the opportunity for us to expand their capabilities are there, and I like the fact that they're both union and they're working together quite a bit. i just think the opportunity for us to expand their capabilities are there and i like the fact that they're both union and they're working together quite a bit We're not having issues. we're not having issues Like type people, they're both growing as fast as we can grow them. Really, really great management teams, think alike. Super proud of those acquisitions. Like type people, they're both growing as fast as we can grow them. like type people they're both growing as fast as we can grow them Really, really great management teams, think alike. really really great management teams think alike Super proud of those acquisitions. super proud of those acquisitions

Speaker 1: Okay. Maybe a question for you on the generation side. If memory serves me correctly, the vast majority of incremental generation has been on the renewable side in the last number of years. How do you see that on a go-forward basis in terms of mix? I know with some of your, I think with NiSource, right, you talked about getting, I guess, back into gas-fired construction, at scale, selectively. Yeah, maybe just kind of map out how you see that cycle playing out in terms of just that mix. Then, how big does Quanta want to be in that cycle? Okay. okay Maybe a question for you on the generation side. maybe a question for you on the generation side If memory serves me correctly, the vast majority of incremental generation has been on the renewable side in the last number of years. if memory serves me correctly the vast majority of incremental generation has been on the renewable side in the last number of years How do you see that on a go-forward basis in terms of mix? how do you see that on a go-forward basis in terms of mix I know with some of your, I think with NiSource, right, you talked about getting, I guess, back into gas-fired construction, at scale, selectively. i know with some of your i think with nisource right you talked about getting i guess back into gas-fired construction at scale selectively Yeah, maybe just kind of map out how you see that cycle playing out in terms of just that mix. yeah maybe just kind of map out how you see that cycle playing out in terms of just that mix Then, how big does Quanta want to be in that cycle? then how big does quanta want to be in that cycle

Speaker 2: Yeah. That's a good question. The last part. I don't think I have a choice. What I would say, what I see in renewables, and Jayshree can comment, I think she should. You're seeing we're still growing double-digit type growth in our renewable business. Batteries are coming into play. What I'm seeing with batteries is we're seeing longer durations, and I'm seeing them get cheaper. I think Tesla kind of came out with something they believe has been revolutionary. I don't know. I haven't really looked up on it. Apparently, you think Elon can say he can get that thing down in half, maybe, to cost. I don't doubt him. If you can do that and get longer durations, solar becomes very much what I would consider as good as gas generation at times. Why not? I just think, yeah, you're going to have gas generation. Yeah. yeah That's a good question. The last part. that's a good question. the last part I don't think I have a choice. i don't think i have a choice What I would say, what I see in renewables, and Jayshree can comment, I think she should. what i would say what i see in renewables and jayshree can comment i think she should You're seeing we're still growing double-digit type growth in our renewable business. you're seeing we're still growing double-digit type growth in our renewable business Batteries are coming into play. batteries are coming into play What I'm seeing with batteries is we're seeing longer durations, and I'm seeing them get cheaper. what i'm seeing with batteries is we're seeing longer durations and i'm seeing them get cheaper I think Tesla kind of came out with something they believe has been revolutionary. i think tesla kind of came out with something they believe has been revolutionary I don't know. i don't know I haven't really looked up on it. i haven't really looked up on it Apparently, you think Elon can say he can get that thing down in half, maybe, to cost. apparently you think elon can say he can get that thing down in half maybe to cost I don't doubt him. i don't doubt him If you can do that and get longer durations, solar becomes very much what I would consider as good as gas generation at times. if you can do that and get longer durations solar becomes very much what i would consider as good as gas generation at times Why not? why not I just think, yeah, you're going to have gas generation. i just think yeah you're going to have gas generation We need all forms, by the way. When we see that's there. That's what we're doing today. As we progressed, we were asked to get into the gas power generation. It's not my favorite thing to do. I knew we had the capabilities to do it. It's not my favorite thing to do, and it's very difficult to sync CCGT up. We're getting unit one and two of class, some of the turbines. I know that's difficult, and there's very good people that do that. They're busy. They're beyond busy. The client's asking us to do more there, and we had Abbey that worked with us, that had the capabilities, ran a big engineering division before. We have 300 people in Birmingham today, going to 500-600. We're getting the front-end capabilities. We need all forms, by the way. we need all forms by the way When we see that's there. when we see that's there That's what we're doing today. that's what we're doing today As we progressed, we were asked to get into the gas power generation. as we progressed we were asked to get into the gas power generation It's not my favorite thing to do. it's not my favorite thing to do I knew we had the capabilities to do it. i knew we had the capabilities to do it It's not my favorite thing to do, and it's very difficult to sync CCGT up. it's not my favorite thing to do and it's very difficult to sync ccgt up We're getting unit one and two of class, some of the turbines. we're getting unit one and two of class some of the turbines I know that's difficult, and there's very good people that do that. i know that's difficult and there's very good people that do that They're busy. they're busy They're beyond busy. they're beyond busy The client's asking us to do more there, and we had Abbey that worked with us, that had the capabilities, ran a big engineering division before. the client's asking us to do more there and we had abbey that worked with us that had the capabilities ran a big engineering division before We have 300 people in Birmingham today, going to 500 - 600. we have 300 people in birmingham today going to 500 - 600 We're getting the front-end capabilities. we're getting the front-end capabilities We decided to do a joint venture on the first one in Indiana. We're able to do that, de-risk the company through the construct, the way that we did it, while really reducing cost to the client and the ratepayer, the large load customer willing to offset some risk. I think that design is a good design. I think we can continue. The inbounds on building gas power generation are probably every bit as robust as data center or anything else at this point. We can't build them all. We're not going to try. We're going to have clients that we really want to work with that are asking us to do something in a collaborative way, we'll do it. We decided to do a joint venture on the first one in Indiana. we decided to do a joint venture on the first one in indiana We're able to do that, de-risk the company through the construct, the way that we did it, while really reducing cost to the client and the ratepayer, the large load customer willing to offset some risk. we're able to do that de-risk the company through the construct the way that we did it while really reducing cost to the client and the ratepayer the large load customer willing to offset some risk I think that design is a good design. i think that design is a good design I think we can continue. i think we can continue The inbounds on building gas power generation are probably every bit as robust as data center or anything else at this point. the inbounds on building gas power generation are probably every bit as robust as data center or anything else at this point We can't build them all. we can't build them all We're not going to try. we're not going to try We're going to have clients that we really want to work with that are asking us to do something in a collaborative way, we'll do it. we're going to have clients that we really want to work with that are asking us to do something in a collaborative way we'll do it It has to be in a collaborative way that we can work together to de-risk us as well as enhance the ability to come in on time and on budget. We had the craft. I thought early in my career, but we built one in Alaska. That's what taught me into doing it. Man, it was tough. Syncing something at nameplate power is just hard. I know it's hard, and that's why I'm very concerned, and you'll hear me talk about it. How big can we get? We're only going to get as big as we feel comfortable, and that's one of the reasons that we de-risked ourselves with JV, is because that's their main business at times, Zachry's, and they did a really nice job, and I felt like it was a great partnership on where we're at today. It has to be in a collaborative way that we can work together to de-risk us as well as enhance the ability to come in on time and on budget. it has to be in a collaborative way that we can work together to de-risk us as well as enhance the ability to come in on time and on budget We had the craft. we had the craft I thought early in my career, but we built one in Alaska. i thought early in my career but we built one in alaska That's what taught me into doing it. that's what taught me into doing it Man, it was tough. man it was tough Syncing something at nameplate power is just hard. syncing something at nameplate power is just hard I know it's hard, and that's why I'm very concerned, and you'll hear me talk about it. i know it's hard and that's why i'm very concerned and you'll hear me talk about it How big can we get? how big can we get We're only going to get as big as we feel comfortable, and that's one of the reasons that we de-risked ourselves with JV, is because that's their main business at times, Zachry's, and they did a really nice job, and I felt like it was a great partnership on where we're at today. we're only going to get as big as we feel comfortable and that's one of the reasons that we de-risked ourselves with jv is because that's their main business at times zachry's and they did a really nice job and i felt like it was a great partnership on where we're at today Simple cycle is not too worried about. We can build simple cycles. It's not something that's as difficult as syncing them up. Look, lots of opportunity, and I do think it's really important when you think through, because we get questions all the time, "Well, what if renewables go down?" Well, what about our gas generation that we're building that business? Where does it sit? One thing I will say, we have great markets. They're not all going to rise at the same time, and they're not going to stay risen forever. They're going to move up and down, and we'll have things that look great, things that look good, and things that are okay. That's what we want in the portfolio. Simple cycle is not too worried about. simple cycle is not too worried about We can build simple cycles. we can build simple cycles It's not something that's as difficult as syncing them up. it's not something that's as difficult as syncing them up Look, lots of opportunity, and I do think it's really important when you think through, because we get questions all the time, "Well, what if renewables go down?" Well, what about our gas generation that we're building that business? look lots of opportunity and i do think it's really important when you think through because we get questions all the time "well what if renewables go down?" well what about our gas generation that we're building that business Where does it sit? where does it sit One thing I will say, we have great markets. one thing i will say we have great markets They're not all going to rise at the same time, and they're not going to stay risen forever. they're not all going to rise at the same time and they're not going to stay risen forever They're going to move up and down, and we'll have things that look great, things that look good, and things that are okay. they're going to move up and down and we'll have things that look great things that look good and things that are okay That's what we want in the portfolio. that's what we want in the portfolio It allows us to really be flexible, give you long-term guidance, and de-risk the investor base on three different verticals, typically of initiatives is the way the company's moving. Look, if we hit them all at once and jackpot, I guess, I don't know. Look, I don't think you'll hit them all at once instead of going vertical on them. I just think there's going to be fluctuations, and it really gives us longevity in the markets that we see well past 2030. You should comment on renewables. It allows us to really be flexible, give you long-term guidance, and de-risk the investor base on three different verticals, typically of initiatives is the way the company's moving. it allows us to really be flexible give you long-term guidance and de-risk the investor base on three different verticals typically of initiatives is the way the company's moving Look, if we hit them all at once and jackpot, I guess, I don't know. look if we hit them all at once and jackpot i guess i don't know Look, I don't think you'll hit them all at once instead of going vertical on them. look i don't think you'll hit them all at once instead of going vertical on them I just think there's going to be fluctuations, and it really gives us longevity in the markets that we see well past 2030. i just think there's going to be fluctuations and it really gives us longevity in the markets that we see well past 2030 You should comment on renewables. you should comment on renewables

Speaker 3: You do a great job on it, but not much more to add. You know this, Chad, I'm clearly a bull on renewables, and I will always be because it makes sense. The cost curve is coming down. There's value to it in many markets, and the power demand is there. We continue to see a really good market there. The technology curves on both those things. I always say, don't ever underestimate technology. Both solar panels and batteries are really technology plays, and it just keeps getting better and better. There is a real need for that as part of the energy mix. In the short term, for sure, because like Duke said, it's very difficult to get a gas plant built in the next five years. There'll be some, the majority of the generation build-out will still be renewables. You do a great job on it, but not much more to add. you do a great job on it but not much more to add You know this, Chad, I'm clearly a bull on renewables, and I will always be because it makes sense. you know this chad i'm clearly a bull on renewables and i will always be because it makes sense The cost curve is coming down. the cost curve is coming down There's value to it in many markets, and the power demand is there. there's value to it in many markets and the power demand is there We continue to see a really good market there. we continue to see a really good market there The technology curves on both those things. the technology curves on both those things I always say, don't ever underestimate technology. i always say don't ever underestimate technology Both solar panels and batteries are really technology plays, and it just keeps getting better and better. both solar panels and batteries are really technology plays and it just keeps getting better and better There is a real need for that as part of the energy mix. there is a real need for that as part of the energy mix In the short term, for sure, because like Duke said, it's very difficult to get a gas plant built in the next five years. in the short term for sure because like duke said it's very difficult to get a gas plant built in the next five years There'll be some, the majority of the generation build-out will still be renewables. there'll be some the majority of the generation build-out will still be renewables Even beyond 2030, regardless what the politics might be around the tax credits, it will be about market demand and market drivers. Where there's an energy need and even some capacity need, you're going to have batteries and solar be part of that. Wind is a little different. Wind is more challenged, for sure, onshore wind. It'll still be part of the mix. It just won't be a big growth driver. There's value to wind, actually on both sides of that equation, on the energy and capacity side. There will be markets where, especially as more transmission gets built out, which has been the biggest bottleneck to wind, you'll see more wind coming as well. With solar and batteries will still have a nice growth curve to it. Even beyond 2030, regardless what the politics might be around the tax credits, it will be about market demand and market drivers. even beyond 2030 regardless what the politics might be around the tax credits it will be about market demand and market drivers Where there's an energy need and even some capacity need, you're going to have batteries and solar be part of that. where there's an energy need and even some capacity need you're going to have batteries and solar be part of that Wind is a little different. wind is a little different Wind is more challenged, for sure, onshore wind. wind is more challenged for sure onshore wind It'll still be part of the mix. it'll still be part of the mix It just won't be a big growth driver. it just won't be a big growth driver There's value to wind, actually on both sides of that equation, on the energy and capacity side. there's value to wind actually on both sides of that equation on the energy and capacity side There will be markets where, especially as more transmission gets built out, which has been the biggest bottleneck to wind, you'll see more wind coming as well. there will be markets where especially as more transmission gets built out which has been the biggest bottleneck to wind you'll see more wind coming as well With solar and batteries will still have a nice growth curve to it. with solar and batteries will still have a nice growth curve to it

Speaker 1: Got it. Okay. How about behind the meter? I know right now, I think, there's a view that it is maybe more of a bridge power solution, go beyond 2030, right? Think about what the grid looks like with that added element. Got it. got it Okay. okay How about behind the meter? how about behind the meter I know right now, I think, there's a view that it is maybe more of a bridge power solution, go beyond 2030, right? i know right now i think there's a view that it is maybe more of a bridge power solution go beyond 2030 right Think about what the grid looks like with that added element. think about what the grid looks like with that added element

Speaker 2: Yeah. I think there's cases that you could make where it makes some sense to have some form of behind-the-meter generation. Look, I think batteries behind the meter are going to be there for sure. There'd be other things, backup generation, of course. Anything they're doing today will at least become backup generation. The question is, can you sell back into the grid? Do you have bi-directional capabilities or not? What can you get out of that? Are we thinking through that well enough now of what can be done later? I do think there's applications for it. It becomes cost at some point. If you can bring on load and you can bring on utility scale, it'll reduce the rate there. You got to think through the cost of something. Right now, it's speed to market. Yeah. yeah I think there's cases that you could make where it makes some sense to have some form of behind-the-meter generation. i think there's cases that you could make where it makes some sense to have some form of behind-the-meter generation Look, I think batteries behind the meter are going to be there for sure. look i think batteries behind the meter are going to be there for sure There'd be other things, backup generation, of course. there'd be other things backup generation of course Anything they're doing today will at least become backup generation. anything they're doing today will at least become backup generation The question is, can you sell back into the grid? the question is can you sell back into the grid Do you have bi-directional capabilities or not? do you have bi-directional capabilities or not What can you get out of that? what can you get out of that Are we thinking through that well enough now of what can be done later? are we thinking through that well enough now of what can be done later I do think there's applications for it. i do think there's applications for it It becomes cost at some point. it becomes cost at some point If you can bring on load and you can bring on utility scale, it'll reduce the rate there. if you can bring on load and you can bring on utility scale it'll reduce the rate there You got to think through the cost of something. you got to think through the cost of something Right now, it's speed to market. right now it's speed to market That becomes cost to market over time as you start to get more generation on these systems. There's always a place for it. We're invested in a company called Hybar. They build rebars. We take some off-take off the rebar, green rebar in Arkansas. They have behind-the-meter solar and battery to shape peak. What it does is for the price point of their electricity, we can build and manufacture steel rebar much cheaper because of the way that batteries and solar come into play in the plant. I'm amazed at what that'll do for a company that's pressed on power. That's a situation where you could see behind-the-meter something that works, it works for the utility, and it works for the client too. I don't know. That becomes cost to market over time as you start to get more generation on these systems. that becomes cost to market over time as you start to get more generation on these systems There's always a place for it. there's always a place for it We're invested in a company called Hybar. we're invested in a company called hybar They build rebars. they build rebars We take some off-take off the rebar, green rebar in Arkansas. we take some off-take off the rebar green rebar in arkansas They have behind-the-meter solar and battery to shape peak. they have behind-the-meter solar and battery to shape peak What it does is for the price point of their electricity, we can build and manufacture steel rebar much cheaper because of the way that batteries and solar come into play in the plant. what it does is for the price point of their electricity we can build and manufacture steel rebar much cheaper because of the way that batteries and solar come into play in the plant I'm amazed at what that'll do for a company that's pressed on power. i'm amazed at what that'll do for a company that's pressed on power That's a situation where you could see behind-the-meter something that works, it works for the utility, and it works for the client too. that's a situation where you could see behind-the-meter something that works it works for the utility and it works for the client too I don't know. i don't know

Speaker 1: Yeah. Yeah. yeah

Speaker 2: That it works great, and it'll be there. Right now, it's just like if you have anything that'll generate an electron, go. I don't think that's going to be that way when you start to see the cycle of gas generation come online. That it works great, and it'll be there. that it works great and it'll be there Right now, it's just like if you have anything that'll generate an electron, go. right now it's just like if you have anything that'll generate an electron go I don't think that's going to be that way when you start to see the cycle of gas generation come online. i don't think that's going to be that way when you start to see the cycle of gas generation come online

Speaker 1: Got it. Okay. Let's actually shift back over to your modular fabrication capabilities. Correct me if I'm wrong, but I think this is a recently acquired capability, with Cupertino and Dynamic. What have you learned about this sort of capability, and then how do you think about deploying this at greater scale? If you can you talk about just what share of your work even flows through modular today? Got it. got it Okay. okay Let's actually shift back over to your modular fabrication capabilities. let's actually shift back over to your modular fabrication capabilities Correct me if I'm wrong, but I think this is a recently acquired capability, with Cupertino and Dynamic. correct me if i'm wrong but i think this is a recently acquired capability with cupertino and dynamic What have you learned about this sort of capability, and then how do you think about deploying this at greater scale? what have you learned about this sort of capability and then how do you think about deploying this at greater scale If you can you talk about just what share of your work even flows through modular today? if you can you talk about just what share of your work even flows through modular today

Speaker 2: Yeah. If you take into account our vertical factories for transformers, you'll have 7 million sq ft under roof with you. We said we're going to spend $700 million in expansion. We're expanding all the factories. That includes MEP fab capabilities. As we look at it today, if you go back 10 years, Cupertino was the first mover in this. It's always been a good market. It's always been a market that we thought was prevalent. In saying that, you didn't have the constraint of the workforce that you do today, and the cost to move people, the cost to move people into other parts of the country. It's much more economical today than it's ever been to modularize because of some constraints on craft skill, and especially the electric side. Yeah. yeah If you take into account our vertical factories for transformers, you'll have 7 million sq ft under roof with you. if you take into account our vertical factories for transformers you'll have 7 million sq ft under roof with you We said we're going to spend $700 million in expansion. we said we're going to spend $700 million in expansion We're expanding all the factories. we're expanding all the factories That includes MEP fab capabilities. that includes mep fab capabilities As we look at it today, if you go back 10 years, Cupertino was the first mover in this. as we look at it today if you go back 10 years cupertino was the first mover in this It's always been a good market. it's always been a good market It's always been a market that we thought was prevalent. it's always been a market that we thought was prevalent In saying that, you didn't have the constraint of the workforce that you do today, and the cost to move people, the cost to move people into other parts of the country. in saying that you didn't have the constraint of the workforce that you do today and the cost to move people the cost to move people into other parts of the country It's much more economical today than it's ever been to modularize because of some constraints on craft skill, and especially the electric side. it's much more economical today than it's ever been to modularize because of some constraints on craft skill and especially the electric side I think those constraints, you've always modularized some of the mechanical, but it's more prevalent now. I think as you move into rural areas, Wyoming, New Mexico, places like that where there's just nothing, you're much more economic to fabricate. We're seeing more and more of it. Your engineering, your video, your Trimble, all the things that you have capabilities of the 3D modularization, that's really enhanced what you can modularize. I think those constraints, you've always modularized some of the mechanical, but it's more prevalent now. i think those constraints you've always modularized some of the mechanical but it's more prevalent now I think as you move into rural areas, Wyoming, New Mexico, places like that where there's just nothing, you're much more economic to fabricate. i think as you move into rural areas wyoming new mexico places like that where there's just nothing you're much more economic to fabricate We're seeing more and more of it. we're seeing more and more of it Your engineering, your video, your Trimble, all the things that you have capabilities of the 3D modularization, that's really enhanced what you can modularize. your engineering your video your trimble all the things that you have capabilities of the 3d modularization that's really enhanced what you can modularize It actually fits when it hits the field. I think that's the key is we've advanced technology to a point where you're able to have what I would consider world-class quality at your factory that goes to the field, everything kind of syncs up, and it cuts that time to build down, and it cuts labor down in the field. Yeah, I like it. We'll use it as much as possible. I would tell you it's less than 5% of the business, call it. It actually fits when it hits the field. it actually fits when it hits the field I think that's the key is we've advanced technology to a point where you're able to have what I would consider world-class quality at your factory that goes to the field, everything kind of syncs up, and it cuts that time to build down, and it cuts labor down in the field. i think that's the key is we've advanced technology to a point where you're able to have what i would consider world-class quality at your factory that goes to the field everything kind of syncs up and it cuts that time to build down and it cuts labor down in the field Yeah, I like it. yeah i like it We'll use it as much as possible. we'll use it as much as possible I would tell you it's less than 5% of the business, call it. i would tell you it's less than 5% of the business call it

Speaker 3: Yeah, roughly. Mm-hmm. Yeah, roughly. yeah roughly Mm-hmm. mm-hmm

Speaker 2: It's growing. It's growing. it's growing

Speaker 1: Got you. Got you. got you

Speaker 2: Once it expands too, it'll grow more. The business is also getting bigger, so it's hard for me to characterize it against the business because our business overall continues to grow. Once it expands too, it'll grow more. once it expands too it'll grow more The business is also getting bigger, so it's hard for me to characterize it against the business because our business overall continues to grow. the business is also getting bigger so it's hard for me to characterize it against the business because our business overall continues to grow

Speaker 1: Well, now I'm going to have to ask about the economics. Well, now I'm going to have to ask about the economics. well now i'm going to have to ask about the economics

Speaker 2: Look, there's players in the industry that are pure play. You can look at them and our margins are comparable. Look, there's players in the industry that are pure play. look there's players in the industry that are pure play You can look at them and our margins are comparable. you can look at them and our margins are comparable

Speaker 1: Got you. Okay. You spent a number of years working with the utilities through a master service agreement. It kind of beckons the question, with data centers, with the long visibility, to what extent should we expect those sorts of relationships start to unfold, or even on the industrial side? Got you. got you Okay. okay You spent a number of years working with the utilities through a master service agreement. you spent a number of years working with the utilities through a master service agreement It kind of beckons the question, with data centers, with the long visibility, to what extent should we expect those sorts of relationships start to unfold, or even on the industrial side? it kind of beckons the question with data centers with the long visibility to what extent should we expect those sorts of relationships start to unfold or even on the industrial side

Speaker 2: Yeah, I think they are. They're unfolding. We're definitely building them on that side. It's a trust issue in many ways. We got to continue to perform. If we continue to perform over time, it's already happening, where they realize that when we sign up for something, we're going to do it on time and on budget. The more times we do it just keeps building our name. Our best commercial is our customers. I had one the other day. They were talking to one of our larger utility customers, and they had given them our name. It was a large, it wasn't a hyperscaler, it was a large colocator. The utility came back and said, "Hey, they just thanked us for giving them your name." I was like, "Well, yeah, thank you." This thing is very circular. Yeah, I think they are. yeah i think they are They're unfolding. they're unfolding We're definitely building them on that side. we're definitely building them on that side It's a trust issue in many ways. it's a trust issue in many ways We got to continue to perform. we got to continue to perform If we continue to perform over time, it's already happening, where they realize that when we sign up for something, we're going to do it on time and on budget. if we continue to perform over time it's already happening where they realize that when we sign up for something we're going to do it on time and on budget The more times we do it just keeps building our name. the more times we do it just keeps building our name Our best commercial is our customers. our best commercial is our customers I had one the other day. i had one the other day They were talking to one of our larger utility customers, and they had given them our name. they were talking to one of our larger utility customers and they had given them our name It was a large, it wasn't a hyperscaler, it was a large colocator. it was a large it wasn't a hyperscaler it was a large colocator The utility came back and said, "Hey, they just thanked us for giving them your name." I was like, "Well, yeah, thank you." This thing is very circular. the utility came back and said "hey they just thanked us for giving them your name." i was like "well yeah thank you." this thing is very circular It's a small group, and we just got to perform, I think, and provide the same kind of mindset solutions that we have for utilities on the other side and just not deviate. It's a small group, and we just got to perform, I think, and provide the same kind of mindset solutions that we have for utilities on the other side and just not deviate. it's a small group and we just got to perform i think and provide the same kind of mindset solutions that we have for utilities on the other side and just not deviate

Speaker 3: Yeah. I think we work hard to be long-term, and we work hard to be programmatic with our customers. I believe we've done a nice job of that on the utility side. You're seeing that in our results. We have been working towards that on the technology side. It's absolutely making an impact. It's just we're early in it. It's only been two years since Quanta really has been leaning into the technology side, as a Quanta whole, right? Obviously, our operating unit has done it for a longer period, but within this whole Quanta holistic total solution approach, we've just begun. I believe we're going to see a lot of results of that as our technology customers are seeing the benefits of that. Like Duke said, we got to prove it, because again, they got to trust us to get the work they need to do. Yeah. yeah I think we work hard to be long-term, and we work hard to be programmatic with our customers. i think we work hard to be long-term and we work hard to be programmatic with our customers I believe we've done a nice job of that on the utility side. i believe we've done a nice job of that on the utility side You're seeing that in our results. you're seeing that in our results We have been working towards that on the technology side. we have been working towards that on the technology side It's absolutely making an impact. it's absolutely making an impact It's just we're early in it. it's just we're early in it It's only been two years since Quanta really has been leaning into the technology side, as a Quanta whole, right? it's only been two years since quanta really has been leaning into the technology side as a quanta whole right Obviously, our operating unit has done it for a longer period, but within this whole Quanta holistic total solution approach, we've just begun. obviously our operating unit has done it for a longer period but within this whole quanta holistic total solution approach we've just begun I believe we're going to see a lot of results of that as our technology customers are seeing the benefits of that. i believe we're going to see a lot of results of that as our technology customers are seeing the benefits of that Like Duke said, we got to prove it, because again, they got to trust us to get the work they need to do. like duke said we got to prove it because again they got to trust us to get the work they need to do We're in the early innings in that. We're in the early innings in that. we're in the early innings in that

Speaker 1: Got you. Okay. On the Investor Day, you guys talked about the $13 million per megawatt TAM for data center. I guess, for the average project that you're working on today, what does that look like, and what would you need to do organically or inorganically to actually realize that full $13 million TAM? Got you. got you Okay. okay On the Investor Day, you guys talked about the $13 million per megawatt TAM for data center. on the investor day you guys talked about the $13 million per megawatt tam for data center I guess, for the average project that you're working on today, what does that look like, and what would you need to do organically or inorganically to actually realize that full $13 million TAM? i guess for the average project that you're working on today what does that look like and what would you need to do organically or inorganically to actually realize that full $13 million tam

Speaker 2: I think we look at it, we're between, call it, 25%-50%, in that range, of the way we think through it. It really depends on where it's at. Like regionally, just structurally, there's some regions of the country that we're just not as heavy, and we don't have the capacity in that part of the world. It's a matter of us building capacity in different areas, whether it be mechanical or civil or whatever. The high voltage piece we can cover off. Medium voltage we can cover off. We can take it. You got to think about it. We just started this platform two years ago, and so we're building on this platform that's already big. I think we'll just continue to add to it, add regionality to it, and then really pick the business up where it's more fulsome. I think we look at it, we're between, call it, 25%-50%, in that range, of the way we think through it. i think we look at it we're between call it 25%-50% in that range of the way we think through it It really depends on where it's at. it really depends on where it's at Like regionally, just structurally, there's some regions of the country that we're just not as heavy, and we don't have the capacity in that part of the world. like regionally just structurally there's some regions of the country that we're just not as heavy and we don't have the capacity in that part of the world It's a matter of us building capacity in different areas, whether it be mechanical or civil or whatever. it's a matter of us building capacity in different areas whether it be mechanical or civil or whatever The high voltage piece we can cover off. the high voltage piece we can cover off Medium voltage we can cover off. medium voltage we can cover off We can take it. we can take it You got to think about it. you got to think about it We just started this platform two years ago, and so we're building on this platform that's already big. we just started this platform two years ago and so we're building on this platform that's already big I think we'll just continue to add to it, add regionality to it, and then really pick the business up where it's more fulsome. i think we'll just continue to add to it add regionality to it and then really pick the business up where it's more fulsome I would tell you we're probably averaging 15% now on things, because we're building for others out of our fabrication facilities. We're just doing mechanical on one building versus 10. There's just all kinds of things that we can take more market share, we can think through it, but we'll have top 10 customers there that we're going to service, and we're going to have to be more fulsome to do so. We continue to talk to them years out, decades out, around what we need to do, and we're going to build against it. I would tell you we're probably averaging 15% now on things, because we're building for others out of our fabrication facilities. i would tell you we're probably averaging 15% now on things because we're building for others out of our fabrication facilities We're just doing mechanical on one building versus 10. we're just doing mechanical on one building versus 10 There's just all kinds of things that we can take more market share, we can think through it, but we'll have top 10 customers there that we're going to service, and we're going to have to be more fulsome to do so. there's just all kinds of things that we can take more market share we can think through it but we'll have top 10 customers there that we're going to service and we're going to have to be more fulsome to do so We continue to talk to them years out, decades out, around what we need to do, and we're going to build against it. we continue to talk to them years out decades out around what we need to do and we're going to build against it

Speaker 1: Okay. Now let's shift over to labor. Can you talk about your strategy to ensure an adequate labor supply over the next three to five years? Then specific to the training program, what do you see as the biggest bottleneck? Okay. okay Now let's shift over to labor. now let's shift over to labor Can you talk about your strategy to ensure an adequate labor supply over the next three to five years? can you talk about your strategy to ensure an adequate labor supply over the next three to five years Then specific to the training program, what do you see as the biggest bottleneck? then specific to the training program what do you see as the biggest bottleneck

Speaker 2: We've done a nice job since 2009 there, and I do think that continuation's there. I'm not as concerned about the craft skill. I'm concerned, but I'm not as concerned. We have good, what I consider, visibility into growth curves and what we need from a labor curve, so we can see it today. The more that we can get in front and plan with our clients on a forward look, the better off we'll service them. We're encouraging, like, let's have the conversation early. Let's talk about what you want to do, where you want to do it. That moves all the time. We can say we're going to go to Wisconsin, we end up in Iowa. It happens, and that's okay. As long as we have good growth curves with them, we can meet the demands. We're hiring a lot of military. We've done a nice job since 2009 there, and I do think that continuation's there. we've done a nice job since 2009 there and i do think that continuation's there I'm not as concerned about the craft skill. i'm not as concerned about the craft skill I'm concerned, but I'm not as concerned. i'm concerned but i'm not as concerned We have good, what I consider, visibility into growth curves and what we need from a labor curve, so we can see it today. we have good what i consider visibility into growth curves and what we need from a labor curve so we can see it today The more that we can get in front and plan with our clients on a forward look, the better off we'll service them. the more that we can get in front and plan with our clients on a forward look the better off we'll service them We're encouraging, like, let's have the conversation early. we're encouraging like let's have the conversation early Let's talk about what you want to do, where you want to do it. let's talk about what you want to do where you want to do it That moves all the time. that moves all the time We can say we're going to go to Wisconsin, we end up in Iowa. we can say we're going to go to wisconsin we end up in iowa It happens, and that's okay. it happens and that's okay As long as we have good growth curves with them, we can meet the demands. as long as we have good growth curves with them we can meet the demands We're hiring a lot of military. we're hiring a lot of military About 25% of our craft comes from the military. I think we owe it to them. Our median wage is $120,000. Kids coming out of the school, $75,000, 25% pension easily, and call it all health and welfare for the same. I just think we can do some unique things. We pay well. We always have. I feel good about it. We've pushed equity down to 9,500 people, between 9,000 and 10,000. We're proud of that as well. We got to take care of them. We got to take care of craft. That's who we are, and our ability to ramp that. Five years ago, we were at 3,000, kind of organically on the growth rate. Last year was 6,000 organically. We added 10, but that was somewhat through acquisition. Journeyman builds journeyman. More journeyman we have, more we can build, which just fluctuates. About 25% of our craft comes from the military. about 25% of our craft comes from the military I think we owe it to them. i think we owe it to them Our median wage is $120,000. our median wage is $120,000 Kids coming out of the school, $75,000, 25% pension easily, and call it all health and welfare for the same. kids coming out of the school $75,000 25% pension easily and call it all health and welfare for the same I just think we can do some unique things. i just think we can do some unique things We pay well. we pay well We always have. we always have I feel good about it. i feel good about it We've pushed equity down to 9,500 people, between 9,000 and 10,000. we've pushed equity down to 9,500 people between 9,000 and 10,000 We're proud of that as well. we're proud of that as well We got to take care of them. we got to take care of them We got to take care of craft. we got to take care of craft That's who we are, and our ability to ramp that. that's who we are and our ability to ramp that Five years ago, we were at 3,000, kind of organically on the growth rate. five years ago we were at 3,000 kind of organically on the growth rate Last year was 6,000 organically. last year was 6,000 organically We added 10, but that was somewhat through acquisition. we added 10 but that was somewhat through acquisition Journeyman builds journeyman. journeyman builds journeyman More journeyman we have, more we can build, which just fluctuates. more journeyman we have more we can build which just fluctuates I feel good about where we can go with craft. I feel good about where we can go with craft. i feel good about where we can go with craft

Speaker 1: Got it. Okay. Maybe just the last minute or so, let's talk through your margin targets, right? You called for an increase out to 2030. Can you just walk through the levers to get there? Since we're running short on time, I wanted to throw something in on return on invested capital. That's like another target for you. Maybe just talk through the building blocks there. Got it. got it Okay. okay Maybe just the last minute or so, let's talk through your margin targets, right? maybe just the last minute or so let's talk through your margin targets right You called for an increase out to 2030. Can you just walk through the levers to get there? you called for an increase out to 2030. can you just walk through the levers to get there Since we're running short on time, I wanted to throw something in on return on invested capital. since we're running short on time i wanted to throw something in on return on invested capital That's like another target for you. that's like another target for you Maybe just talk through the building blocks there. maybe just talk through the building blocks there

Speaker 2: Yeah. Look, I think when you look at our margin profile, we're growing it some. You can see the project mix inside the UI. It came up. I think that'll continue as that becomes a bigger piece of the segment. Probably that's the question of the day, margin. Look, we self-perform 85%. We have to pay our craft. Our craft moves up. Okay? We pay them well. It's going to come up. We are going to increase margins a little bit, but that's not the story. We'll take margin, we'll take outward look and longevity and stickiness with clients over time and compound earnings, invest free cash and do great things with it that we've done in the past for a decade. When we give a 10-year, five-year look, we hit it, and we've hit it for a decade. Yeah. yeah Look, I think when you look at our margin profile, we're growing it some. look i think when you look at our margin profile we're growing it some You can see the project mix inside the UI. you can see the project mix inside the ui It came up. it came up I think that'll continue as that becomes a bigger piece of the segment. i think that'll continue as that becomes a bigger piece of the segment Probably that's the question of the day, margin. probably that's the question of the day margin Look, we self-perform 85%. look we self-perform 85% We have to pay our craft. we have to pay our craft Our craft moves up. our craft moves up Okay? okay We pay them well. we pay them well It's going to come up. it's going to come up We are going to increase margins a little bit, but that's not the story. we are going to increase margins a little bit but that's not the story We'll take margin, we'll take outward look and longevity and stickiness with clients over time and compound earnings, invest free cash and do great things with it that we've done in the past for a decade. we'll take margin we'll take outward look and longevity and stickiness with clients over time and compound earnings invest free cash and do great things with it that we've done in the past for a decade When we give a 10-year, five-year look, we hit it, and we've hit it for a decade. when we give a 10-year five-year look we hit it and we've hit it for a decade That's the intent, and that's how we do it. We just stay with it. It's not very sexy, but you just compound it over and over again. Our ROIC- That's the intent, and that's how we do it. that's the intent and that's how we do it We just stay with it. we just stay with it It's not very sexy, but you just compound it over and over again. it's not very sexy but you just compound it over and over again Our ROIC- our roic-

Speaker 3: The same. It's the same approach, right? Our return, you've seen it grow, because of this consistent, deliberate effort on focusing on the long run. There are levers. You're seeing our working capital profile improve. We believe we're going to continue seeing that. That's going to be a driver of our ROIC. The margin improvements that Duke talked about around some of the areas that we can do around the mix of work and the efficiencies, we're going to continue to gain around those. The same. the same It's the same approach, right? it's the same approach right Our return, you've seen it grow, because of this consistent, deliberate effort on focusing on the long run. our return you've seen it grow because of this consistent deliberate effort on focusing on the long run There are levers. there are levers You're seeing our working capital profile improve. you're seeing our working capital profile improve We believe we're going to continue seeing that. we believe we're going to continue seeing that That's going to be a driver of our ROIC. that's going to be a driver of our roic The margin improvements that Duke talked about around some of the areas that we can do around the mix of work and the efficiencies, we're going to continue to gain around those. the margin improvements that duke talked about around some of the areas that we can do around the mix of work and the efficiencies we're going to continue to gain around those All of those things are going to help drive our ROIC. We are heavily focused on that, ensuring that at the end of the day, we take on more share of wallet, even if it might be not necessarily margin dilutive, but if we're allowed to take on more scope with less capital, we're going to do so. That's going to be a big driver of our ROIC as well. All of those things are going to help drive our ROIC. all of those things are going to help drive our roic We are heavily focused on that, ensuring that at the end of the day, we take on more share of wallet, even if it might be not necessarily margin dilutive, but if we're allowed to take on more scope with less capital, we're going to do so. we are heavily focused on that ensuring that at the end of the day we take on more share of wallet even if it might be not necessarily margin dilutive but if we're allowed to take on more scope with less capital we're going to do so That's going to be a big driver of our ROIC as well. that's going to be a big driver of our roic as well

Speaker 1: Got it. Okay. We're out of time, guys. Got it. got it Okay. okay We're out of time, guys. we're out of time guys

Speaker 2: All right. All right. all right

Speaker 1: Thank you so much. Appreciate it. Thanks, everyone. Thank you so much. thank you so much Appreciate it. appreciate it Thanks, everyone. thanks everyone