Quanta Services, Inc.

Greetings, and welcome to the Quanta Services third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kip Rupp, Vice President, Investor Relations. Thank you, sir. You may begin.

Thank you, and welcome, everyone, to the Qantas Services' third quarter 2024 earnings conference call. This morning, we issued a press release announcing our third quarter 2024 results, which can be found in the investor relations section of our website at QantasServices.com. This morning, we also posted our third quarter 2024 operational and financial commentary and our 2024 outlook expectations summary on Qantas' investor relations website. While management will make brief introductory remarks during this morning's call, the operational and financial commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community. Please remember that information reported on this call speaks only as of today, October 31st, 2024, and therefore you advise that any time-sensitive information may no longer be accurate as of any replay of this call. This call would include forward-looking statements and information intended to qualify under the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements reflecting expectations, intentions, assumptions, or beliefs about future events or financial performance or that do not solely relate to historical or current facts. You should not place undue reliance on these statements as they involve certain risks, uncertainties, and assumptions that are difficult to predict or beyond QANAs control, and actual results may differ materially from those expressed or implied. While we will also present certain historical and forecasted non-GAAP financial measures, reconciliations of these financial measures to their most directly comparable GAAP financial measures are included in our earnings release and operational and financial commentary. Please refer to these documents for additional information regarding our forward-looking statements and non-GAAP financial measures. Lastly, please sign up for email alerts through the Investor Relations section of QantasServices.com to receive notifications of news releases and other information, and follow Qantas IR and Qantas Services on the social media channels listed on our website. With that, I would like to now turn the call over to Mr. Duke Austin, Qantas President and CEO. Duke?

Thanks, Kip. Good morning, everyone, and welcome to the Quantum Services third quarter 2024 earnings conference call. Before I turn to our third quarter results, I would like to comment on Quantum's response to Hurricanes Beryl and Helene. During the third quarter, we deployed significant resources to assist power restoration and related efforts in Texas for Hurricane Beryl and in the southeast for Hurricane Helene. During these events, our employees often do more than work to get the power restored. What is not well known are the other ways that our crews, who are first responders, help people in need during these devastating events. For example, in response to Hurricane Helene, Quanta crews work with local sheriffs, law enforcement groups, and various humanitarian organizations to leverage our helicopter assets to deliver more than 200,000 pounds of cargo who impacted rural and mountain communities in North Carolina, including water, food, medical and camping supplies, pet food, hay for livestock, and more. Our pilots also aided search and rescue efforts, provided reconnaissance and roadway assessments, and performed welfare checks. These severe weather events also often impact the lives and property of Kwana employees, many of whom are away from their families for long periods restoring power to others. Quanta Cares, our employee's relief fund, provided financial support to approximately 125 employees and their families who were impacted by these damaging storms. I want to recognize and thank the thousands of Quanta employees who work tirelessly to restore power and much more for people in need during these severe weather events. Quanta delivered another quarter of double-digit growth in revenues, adjusted EBITDA, and adjusted earnings per share, as well as a number of other record financial metrics, including total backlog of $34 billion and free cash flow of $539 million. There is momentum building across our portfolio of solutions, with the increased demand for and tightening of power generation capacity and the significant power grid upgrades and enhancements required to facilitate load growth. Our collaborative, solution-based approach is valued by our clients more than ever. Guana sits at the nexus of the utility, renewable energy, and technology industries, and the convergence of these industries is gaining pace. Utilities across the United States are experiencing and forecasting meaningful increases in power demand for the first time in two decades, which is being driven by the adoption of new technologies and related infrastructure, including artificial intelligence and data centers, as well as federal and state policies designed to accelerate the energy transition and policies intended to strategically reinforce domestic manufacturing and supply chain resources. The necessity to build and modernize infrastructure is clear, and we believe Kiwana's craft-skilled labor workforce and self-performed capabilities are critical to advancing our infrastructure solutions. To that end, The integration of Cupertino Electric is progressing well, and while it is early, we have received positive customer response to our comprehensive critical path electric infrastructure solutions for the technology and data center industry that provides opportunity to improve speed to market for projects. In summary, we are executing well on our strategic plan, and while there are areas for improvement, We are pleased with where we sit. We are pacing well against our multi-year financial targets, including double-digit EPS growth and double-digit returns. We ended the quarter with record backlog. We expect adjusted EPS to grow approximately 20% at the midpoint of our guidance over last year. We expect record levels of free cash flow this year, a leverage profile below two times by year end, and over $3 billion of liquidity. Our end markets have never been better. and we see opportunity for further strength in the coming years. As I hope you can tell, we are proud of our execution and even more excited about the solutions platform we have built for the future. We are positioning Quanta for decades of expected necessary infrastructure investment and believe our service line diversity creates platforms for growth that expand our total addressable market. Our portfolio approach and focus on craft skill labor is a strategic advantage that we believe provides us the ability to manage risk and shift resources across service lines and geographies, which is increasingly important as the energy transition and new technologies add complexity to infrastructure programs. We believe our service offering, diversity, supply chain capabilities, and portfolio approach have improved our cash flow and returns profile and position us well to allocate resources to the opportunities we find most economically attractive. and achieve operating efficiencies and consistent financial results. I will now turn the call over to Jayshree Desai, Quantum CFO, to provide a few remarks about our 2024 guidance results, about 2020 results and guidance. And then we will take your questions, Jayshree.