Quanta Services, Inc.

Could you speak to, you know, how you've dealt with fuel cost increases in the quarter and the extent to which you've been able to pass them on to customers? And also sort of with labor and equipment and components, have you been able to pass that through reasonably well, or have there been instances where you've had to go back to the customer and get some relief? I'm just kind of curious, you know, what the process has been like for some of those challenges in the quarter. Thanks.

Thanks, Nora. The costs certainly have increased, but typically we're able to work through those, through scale, through collaborating with the client. We are building crews, and I do think the build is really what's causing most of our issues, as well as the inefficiencies of the supply chain. It's not necessarily the fuel or the inflation. We can usually work through those kind of pressures. We work with the client on that, and I do think It's just the culmination of all three, kind of in a quarter, you see a little bit of pressure. Actually, internally, we're on kind of where we thought we would be from a margin standpoint. It's the guide going forward that we've put it on, and I believe, in my mind, it's pressured the overall segment margins, not where we sit in the first six months. Can we operate through that in the latter half? Maybe. We'll certainly take a prudent approach to guidance. We thought we should at least acknowledge that there is some pressure. But we're not seeing the pressure and we're not going to talk about fuel and crew counts and those things on a daily basis. We can work through those through on the way that we get cost recovery as well as get more efficient as a company and scale.

Okay. And then in the past we've talked about how to think about labor costs given that you're union and you typically have some visibility issues. as it relates to the electric workforce. Any updated thoughts on how we should think about coming labor cost increases and what the conversations with the unions are like and generally how to think about overall what that looks like as we're ending this year and heading into 23?