Welcome to MasTec's Third Quarter 2023 Earnings Conference Call initially broadcast on November 1, 2023. Let me remind the participants that today's call is being recorded. At this time, I'd like to turn the conference over to Marc Lewis, MasTec's Vice President of Investor Relations. Marc?

Thanks, Elaine, and good morning, everyone. Welcome to MasTec's third quarter call. The following statement is made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking, such as statements regarding MasTec's future results, plans and anticipated trends in the industries where we operate. These forward-looking statements are the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent eventual knowledge. Various risks, uncertainties and assumptions are detailed in our press releases and filings with the SEC. Should one or more of our – these risks or uncertainties materialize or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in today's call. In today's remarks by management, we will be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP financial measures in this call. A reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release. Please note that we have two documents associated with today's webcast on the Investors and Events and Presentations page of our website at mastec.com. There is a companion document with information and analytics on the quarter just ended and a guided summary to assist in developing your financial models going forward. Both PDF files are available for immediate download. With us today, we have Jose Mas, our CEO; and Paul DiMarco, our EVP and Chief Financial Officer. The format of the call will be opening remarks announced by Jose, followed by a financial review from Paul. These discussions will be followed by a Q&A period, and we expect the call to last about 60 minutes. We have a lot of important things to talk about today, so I'll now turn it over to Jose so we can get going. Jose?

Thanks, Marc. Good morning, and welcome to MasTec's 2023 third quarter call. Today, I'll be reviewing our third quarter results as well as providing my outlook for the markets we serve. As you all know, we moved up our earnings release in this call by two days from our normal cadence. As we went through our quarter close process, given the preliminary results we were seeing for the third quarter relative to our prior guidance and the forward information we are receiving from some of our segments, we determined that it was important to get our earnings release out to the market as soon as our procedures had reached the point that we had sufficient clarity on the data. We appreciate everyone adapting your schedules so that you could join us on this call today. Thank you. Now some third quarter highlights. Revenue for the quarter was $3.257 billion, a 30% year-over-year increase, organic growth of roughly 10% and a 13% sequential increase, but well below our previous guidance. Adjusted EBITDA was $271 million, a 10% increase over last year, but again, well below our previous estimate. Adjusted earnings per share was $0.95. Cash flow from operations generated during the quarter was $294 million, with a $213 million reduction of net debt during the quarter. We expect further cash flow strength during the fourth quarter and the first quarter of 2024, which Paul will cover later. And finally, backlog at quarter end was $12.5 billion. In summary, we continue to face challenges this year. We now expect full year revenue to be about $1 billion or 7% below our previous estimates. This revenue shortfall is primarily related to the continued challenges in our Clean Energy business, where full year revenues will be up about $900 million versus our initial expectations.…

Thank you, Jose, and good morning, everyone. First off, I wanted to echo Jose's comments, and thank you for the flexibility and accommodating the change to our earnings call schedule. We hope the earlier visibility into our results and outlook will provide some value. We are committed to providing clear and accurate visibility into our performance and strategy, and we'll continue to work towards that goal. Turning to our third quarter results. MasTec generated consolidated revenue of $3.26 billion, up 30% year-over-year and 13% sequentially, but below guidance by approximately 13%. We had lower-than-anticipated activity versus our expectations in each segment, which I will cover in more detail later. Adjusted EBITDA at $271 million missed our guidance by $90 million, driven by decreased operating leverage associated with lower volume, unabsorbed costs due to ongoing project delays and execution challenges on certain legacy projects. Lower-than-expected adjusted EBITDA also drove performance and adjusted earnings per share of $0.95. Overall, it was a very disappointing quarter, where we faced a number of challenging developments. We took a hard look at the business and our prospects for the balance of the year, and we believe our outlook appropriately captures the closeout risks in projects that have challenged us this year and the anticipated lower activity with certain customers. Despite these challenges, we are pleased with the $294 million of cash flow generated by operations during the quarter and the corresponding $230 million of net debt reduction. Turning to some segment details. Third quarter Clean Energy revenue was $1.1 billion, and adjusted EBITDA was $58 million or 5.2% of revenue. While we did achieve 12% year-over-year organic revenue growth in the quarter, revenue and adjusted EBITDA were both well below expectations, driven by delays in execution of certain contracts and performance challenges on certain legacy…

Thank you. [Operator Instructions] We will take our first question from Alex Rygiel from B. Riley.

Good morning, Jose and Paul.

Good morning, Alex.

Clearly, this looks like a kitchen sink quarter and probably no surprise given the macro environment and how cloudy it has gotten out there. But – how can we be reassured that the reset here sort of reflects your most conservative assumptions given sort of all the cross-currents?

Well, look, there’s no question, Alex, that we struggled in forecasting this year in 2023. Quite frankly, we don’t want to miss. I think we spent years beading and raising. We took a lot of pride in that. We’ve obviously struggled here in the last little bit. So we needed to set a base, this is very early for us providing outlooks for 2024, for sure. But coming off of the results that we were having, we wanted to give people an indication of what we thought would be a base set of earnings for 2024.

That’s helpful. And then can you talk a bit about your backlog and possibly quantify backlog that maybe at risk or cancellation? And also talk about sort of the base level of backlog that you have from MSAs and how stable that is in this economic environment?

Yes. It’s a good question, Alex. And I think it’s important when you think about our backlog, right, because we go through so much scrutiny in our backlog and what it actually takes to put in backlog that we – even in 2023, right, we didn’t experience a significant amount of – or any really cancellations or delays based on something once it was in backlog. To make it through backlog, we’ve got to have a signed contract, in our Clean Energy business, it means it needs to be a finance project. So backlog is generally not fully reflective of the work that we see in front of us. It’s usually understated. In our other businesses, it’s very heavy MSA driven. Obviously, there’s some impact as the MSA, if utilities start to come back a little bit, it impacts your go-forward rate, but it doesn’t put work at risk. So we feel really good about at least the initial targets that we set about 2024, we’ve vetted them with customers, we’ve vetted them backlog. Again, we think this is really the entry-level base for us as we think about 2024.

Thank you very much.

[Operator Instructions] We will take our next question from Andy Kaplowitz from Citigroup. Please go ahead.

Good morning, everyone.

Good morning, Andy.

Can you give us some more color into your Power Delivery business? I know you said that several customers push CapEx into next year. But Power Delivery, I think, is supposed to be more long cycle. And if anything, higher rates would seemingly impact Q4 versus Q3. So was it more a couple of big projects moving to the right? Was it broad-based delays? And then how are you thinking about the longer-term growth profile in that business and your confidence level of reaching a growth target for 2024?

Yes. Andy. So I’d kind of break the business up in two, right? One is comparing to last year, on a full year-over-year comparison. One of the biggest challenges we had, especially from a margin perspective was the lack of storm work in Q3. So we probably had a $50 million decline in storm work on a year-over-year basis, which impacted, again, not just margins, that impacted revenues as well. So I think when you’re comparing last year to this year, that was probably the biggest driver of what you see in Power Delivery. When you compare it sequentially with Q2, right, we were still down. We were down about $35 million in revenue from Q2 to Q3. Some of that was just the transition of projects. We finished some projects. We’re starting others. We probably didn’t get as quick of a start on some of those projects. Some of that comes back. And then I think that the balance of that, which is probably $10 million to $15 million or so, was really the beginning of what we saw with some pullbacks in utilities. So it wasn’t a huge number, but it was significant. It’ll continue into Q4 to some extent. And then we think that, again, we talked about these vendor consolidation efforts, which again, we think we’ve actually fared really well in and position us well going into next year. So as we think about it, right, we’ll grow revenue slightly in 2023 versus 2022. We’ve talked in previous calls about some of the contracts that we kind of got out of late last year, early this year that impacted revenue on a full year basis, especially from some of the acquisition activity that we had previously made. So I think it really sets up the year nicely for us in 2024. We’ve come out with an initial guide of mid-single-digits in growth. We’re hoping that tends to be conservative. There’s a ton of activity out there in transmission and substation, and it’s an area that we’ve really focused on, so lots of opportunities for us, but again, really early. We’re still in October, so we feel really comfortable that we can achieve that just based on the MSA contracts that we have, the awards that we’ve been given, and what we’re expecting from our client base predominantly in our distribution work.

Very helpful, Jose. And then maybe just can you give us a little more color into how you’re thinking about clean energy at this point and the quality of your customer base, particularly at IEA. What’s the risk that you announced in such as the recent announcement in front of one of your customers to pause their construction are not just one-off but are a function of some more challenging customers? And how do you scrub your backlog to make sure you aren’t surprised again by the type of announcement you disclosed from that customer?

Yes. So I mean one of the things I want to be really clear about because one of the questions we had to ask ourselves over the course of the last few months is, I mean, did we buy an inferior customer base with the acquisition of IEA? And I think the flat I’d answer to that is no, we did not, right? I think we have a great customer base at IEA, our customers have lots of history, lots of installed capacity. They know exactly what they’re doing, their customers that in some cases were more dependent on different financing strategies. It doesn’t make them better or worse. It just made them different this year. So I think when we think about the challenges that we had in 2023, obviously, I do think we should have better understood the risk and position the opportunities in the business to be more broad-based with different types of clients, and that’s exactly what we’re doing for 2024. So we’ve spent months going through every possible project that exists, every project that we’re being asked to participate in. We’re prioritizing those that we think have a really high degree and level of confidence that are going to absolutely happen in 2024, and that’s how we’re building our 2024 plan. I mean, what really changes is if the market improves, right? If – once tax equity gets behind us, which we expect to happen by year-end, and people get to start financing projects in multiple ways, we think that’s going to create a huge catalyst of new projects of which many we’re going to be involved with. And we think that will be a big catalyst of the business. We’re not really including a lot of that as we think about 2024 because we’re not 100% sure of the timing. So again, we’re hoping that as the year starts, we’ve built our plan with a very solid customer base, and then we can grow that based on some of the opportunities that are going to come as the year progresses.

Appreciate the color, Jose.

We will take our next question from Steven Fisher from UBS. Please go ahead.

Thanks. Good morning. I wanted to focus on the cash flow a little bit, specifically in terms of the timing. I think you may have mentioned that the positive cash flow will continue into Q1 of next year? And I’m really just kind of curious about the cadence of how that cash flow will develop next year? Is it positive, you’re saying in Q1 and Q2 is maybe a little weaker than Q3, Q4, again, just kind of curious how the debt reduction might go over the course of the year?

Yes, Steven, this is Paul. So I think it should be a similar cadence to the year. We haven’t laid out each quarter yet. But we do expect Q1 because of weather and normal seasonal challenges to be a lower volume quarter, so that should facilitate less working capital requirement. And then you’re right, as we ramp through the middle of the year, we’d expect some investment there that hopefully can largely offset with stronger earnings, but we’d be less cash flow generation in the middle of the year and there’s some ability to reduce debt going into Q4.

Okay. That’s helpful. And then just on the communication side of things for next year. I think you said high-single-digits. Maybe you can just clarify that? And within that, I guess I’m curious – and that’s the growth. If there’s any color you can give on a breakout between wireless and fiber because it sounds like you are experiencing a bit of a slowdown in fiber as you go into Q4 here. What have you assumed on some of those trends for next year? Just to kind of gauging the comfort of getting to what looks like a pretty robust growth number and estimate given some of the overhangs of what we’re experiencing right now from some of these telecom companies?

Yes, Steve. So it’s Jose. I’d say a couple of things, right? I think this year, we were obviously impacted by the slowdown in wireless. I think our wireline business is up strong for the full year, will be strong for the full year as we close the year out. A little bit of a slowdown in the second half of the year that we were hoping wouldn’t happen, and I think that is some management of CapEx. And obviously, as the credit environment changes, we’ve had different customers do different pullbacks. With that said, we’ve got a bunch of awards during this year in 2023 that didn’t have a lot of volume, that had a lot of engineering associated with the projects that we knew the volume would kick in 2024, and these are a lot of the government RDOF-funded projects where that initial activity in engineering is really important, but it’s low dollar. And once it turns in construction, it has a meaningful impact. And we have a number of those that starting late Q1, early Q2 going to construction, which are going to have a significant amount of increased revenue in 2024 versus 2023. So as we planned out 2024, and again, we’re really early, we took a very conservative assumption on where wireless goes from here based on the conversations we’ve had with our customers. And we’ve kind of built the balance in that growth plan based on really project activity awards from 2023 without making much assumption for new things going into 2024, even though there are some opportunities. Again, it’s important to talk about bead funding, which we really don’t even see impacting the business until 2025 because a lot of that is going to be awarded in 2024. So we feel good about our ability to grow that business in 2024 just based on the awards that we’ve had here in the last few months, we think that’s important. We’ve taken a very conservative approach to how we think our customers will guide CapEx based on recent commentary. And again, any improvements to that should actually allow us to improve on the numbers that we’ve talked about today.

But just to clarify, so are you assuming the wireless business is actually up next year?

We are not. We are not making that assumption. We’re assuming that it’s flat.

Flat, okay. All right. Thank you very much.

Thank you, Steve.

We will now move to our next question from Justin Hauke from Baird. Please go ahead.

Hi good morning guys. A lot of my questions have been answered here. But I wanted to ask, I guess the risk profile of just cost overruns on some of the fixed price contracts at IEA, you guys, at least as of the last 10-Q, we don’t have the one from the quarter, but the revenue on unapproved change orders has kind of moved materially higher over the last year and a half. And just as we go into 4Q and kind of the annual close out the resolution on some of those unapproved change orders, you talked about a legacy industrial project. I mean just can you give us some context about what’s been driving that balance increasing?

Yes. So we do – we should see a slight reduction when the Q3 numbers come out, but a lot of it is with the legacy industrial projects that we had challenges on in 2022 and the early part of this year. Some of them were resolved in the ordinary course in Q4 and some we work with the customers on we think our contractual obligations that they’ve made under the contracts. And we obviously have a very robust process for reporting those. We have a very strong track record of realizing those change orders, and we really don’t expect any different in the environment today.

Okay. And then just because it is a high visibility project, can you quantify the MVP revenue contribution that you’re assuming in 4Q? And then how much will be there in the first half of 2024? I know they’ve disclosed that the cost estimate for the project is higher, just kind of giving some context to help us understand how much that’s contributing?

Yes. Look, I think it’s unchanged for the full year in 2023. It’s just – it’s heavier in the fourth quarter than it was in the third quarter because of the delays. Remember, we started ramping that project in September. We had to get roughly 3,700 people with some of the delays in early on in that project, there was a lot of delays just in terms of fully understanding what was going to be allowed and not allowed. We got to that full ramp towards the latter half of the quarter, so we moved some revenue into Q4. And I’d say we’re probably at this point – I don’t know what they’ve said publicly, so I don’t really want to give a revenue number for 2024. But for us, it will be in the hundreds of millions.

Okay. Fair enough. Thank you.

Thank you.

We will take our next question from Neil Mehta from Goldman Sachs. Please go ahead.

Good morning, Jose, Paul, I wanted to start off on tax [indiscernible] has been a big driver of some – can you hear me okay, Jose? Sorry.

Yes. Go ahead, Neil. Good morning.

Okay. Good morning. I think some of the concerns to your point have been around tax equity and that's created a lot of the volatility in the Clean Energy segment. And you had made a comment that you expect to get a little bit more clarity by the end of this year around that. So can you talk about what gives you confidence on that? And do you think that's going to translate into greater activity from the customer base?

So the short answer is absolutely. I think there's been an enormous amount of work that's happened since guidance was released on some of the language in the summer. I think the industry customers are feeling really comfortable and better about the conversations that have been happening with everybody from treasury to energy to commerce. I think the final language will be out by the end of the year. And I think that will spur an enormous amount of activity because it will open up. It will give people the understanding of what it means to hit the bonus tax depreciation opportunities that exist within the bill, which makes tax equity clear, which makes – then makes it sellable. And we have a lot of customers who – it significantly changes their capital profile and the return profile and they don't want to give it up, so they don't want to commit to the tax equity today and so they fully understand what all their bonus opportunities are. And I think we're getting very close to that being finalized, which, again, I think adds a tremendous amount of activity to the market. And I think it's important to, again, we're trying to build our 2024 plan with projects that aren't super dependent on that and then really use that as potential upside as we think about the year.

Yes. And I would just add, Neil, that direct transfer is another provision of the IRA that's starting to become much more prevalent, right? I think there was some uncertainty on the – how that transaction – how those transactions would be effectuated early on. But what we're seeing is more and more developers and renewable power generators finding ways to monetize their tax equity through direct transfer, which as long as it becomes efficient from a cost perspective – from a value perspective, it's a much more efficient from an administrative perspective. So we are positive on developments.

Thanks Paul and that's helpful. And then Jose for the follow-up is just on margins. We spend a lot of time on this call talking about the top line, but margins have been a source of volatility over the last couple of years as well. So can you give the market confidence in the way that you're modeling out the margin profile, where do you think the biggest risks are? And where do you think the areas for upside surprise could be?

Sure. Again, as we thought about 2024 and then what we're seeing here, I think we took, again, a view as to where we are today and how we're thinking about that with where the revenue is going. We haven't changed our long-term margin profile expectations, which I also think is important. There's nothing that we're seeing in the business that we don't – that we think doesn't allow us to reach our previous targets. If anything, I think we've said, as we've talked about, the full company margins for the year, I think they're based on very reasonable and conservative assumptions with, quite frankly, upside across the board, right? We're starting the year at mid-teens in oil and gas in a year where there's a lot of new work coming on projects where they've traditionally beat those types of margin returns. We think there's upside there. On the communications side of the business, obviously, we started the year stronger than we had the previous year. We've had a – we've taken a step back here in the second half. But when we think about where they were for 2022, there's no reason we shouldn't get back to those levels very soon, which are significantly better than where we'll end the year this year. Our power delivery business, again, this was – this is really the first post year one after acquisition. So I think there's been some noise in and out of the margins, but I think that we're – our ability to hit double-digit margins there is completely unchanged. And I think Clean Energy, despite – even despite all the challenges that we've had, margins have improved on a year-over-year basis and held somewhat steady. And I think that with the volume that we're expecting, margins have an opportunity to really increase. So I feel good about where margins are going to go over time. And again, I think we’ve set a really conservative base level for 2024 that everybody should feel comfortable with.

Okay thank you both.

Thanks Neil.

We will take our next question from Marc Bianchi from TD Cowen. Please go ahead.

Thank you. The first question I had relates to the electric businesses, so Clean Energy and Power Delivery and you had mentioned, and I think, like the market has been generally concerned with the higher cost of capital that’s affecting those businesses. So, if you think about project development and higher cost of capital, that’s one thing for Clean Energy and then higher cost of capital in the utility sector, and you mentioned some customers slowing spending. So that systemic issue seems to be continuing into 2024 but you made the comment that you’ve got some of the utility customers picking spending back up once they renew their budget. So can you kind of talk about how much of that systemic risk do you think is continuing to overhang the business in 2024 and how much of it is getting cleared up and what the maybe mechanisms are for that?

Yes. So I think when we think about planning for 2024 and again, we’re very early in the cycle, the way we’ve thought about it is we’ve had a lot of success in growing our business. So, in basically either picking up territory or expansion within existing territories in the last x months, right? And we’ve done that with major customers, with major utilities on both the East Coast and the West Coast, and we feel really good about that margin expansion. And in a normal typical year where we wouldn’t have this overhang of concern relative to what’s happening with interest rates and costs, our growth projections just based on that would be dramatically higher than what we laid out today. So, I think we’re hedging the opportunities that we’re getting from a growth perspective with some of the challenges we think utilities will continue to face. We are hopeful that as the year develops, those utilities will actually perform better or have less issues than what we’re projecting, which will allow us the opportunity to grow at a faster rate. For us in our Power Delivery business to set a mid-single-digit growth rate going into next year is a really low number. It’s one that is lower than we would have suspected. And then when you throw on to that some projects that we’ve won that should help that. I think we’re being really conservative as we think about where they are from a capitalization perspective and what they need to do to fund projects. And I’d say it’s exactly the same answer on our Clean Energy business as well.

Okay. Thanks, Jose. The other one I had relates to Oil and Gas. So you’ve got MVP helping in the first half of 2024, but talked about overall revenue decline for the year. So, it would look like the second half is quite a bit below sort of the $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about, is it in fact that you do see the steady state run rate now quite a bit below $2 billion, or is that another maybe source of conservatism?

No. Look, I think we’ve said for a while that the right level for that business was $1.5 billion to $2 billion. We’ve been feeling more comfortable that it’s going to be closer to the higher end of that. We also knew that MVP would present its own set of challenges in that it would start, it would be a lot of revenue in particular periods, and it would go away. As I think about 2024, obviously, the first half of the year is going to be a little bit stronger because of MVP. We’ve got a lot of projects that we’ve previously talked about that are filling in 2024. So, we actually feel really good about 2024. I think the first half will be higher than it was in 2023, the second half will be slightly lower. Again, I think that’s based on the projects we know today, I think, there’s some opportunities for some potential pull-in. But there’s also projects that we know about that are going to start in 2025. So, I think it’s going to be a much more consistent year versus the ebbs and flows that we’ve had this year or quite frankly, that we had last year as well in that business.

Okay. Thank you very much.

Thank you.

We will take our next question from Brent Thielman from D.A. Davidson. Please go ahead.

Hey, thanks. Good morning. Jose, just one more on the Clean Energy margins. I guess the question is does the profile of the projects in the backlog or under LNP support the margins you are hoping to eventually achieve for that business once that work gets underway? Or do you need to work through that first before we start to think about something sort of nicely above the mid-single-digit range?

If we could hit the volume profiles that we're talking about, the margins associated with our pricing in bids definitely allows us to achieve that, and we actually think it potentially allows us to achieve more. So we don't believe we have a pricing issue. We – as we look at it on a project-by-project basis as we've been delivering projects this year, project performance at the job level has been good. It's been the absorption of costs that's been more of a problem. So as we get revenue levels to where they need to be, we start getting into the margin profile, not even that we're talking about today, but over time, what we've laid out previously on our longer-term outlook.

Okay. And I guess I'll ask this question on 2024 maybe another way. I mean the preliminary view, sort of mid- to high single-digit growth for next year. To what degree does that included executing on through the renewables projects inherited from IEA that you've seen sort of defer thus far this year?

Brian, I missed a slight part of the question after – can you repeat the question because it cut out for a second?

Yes, Jose, I guess the question is just as you think about that 2024 preliminary view for growth. To what degree does that include assumptions for the work from IEA that you've seen deferred so far this year?

Well, what we've done for 2024 in Clean Energy is we've kind of gone back to the start, right? And we took every project regardless of where it came from, whether it was IEA or our legacy business, and we've risk-adjusted it, and we're focusing on projects where we think have very little issues to proceed in 2024, and that's how we're building our plan. We're not abandoning any projects. We're not abandoning any customers to the extent that we can pull them in, we will obviously do that. But we're really trying to build the plan based on a combined work schedule of jobs that we think have the highest likelihood of going and are performing well.

Okay. Thanks, Jose.

[Operator Instructions] We will take our next question from Adam Thalhimer from Thompson Davis.

Hey, good morning. Thanks guys.

Good morning, Adam.

Jose, to what extent are higher rates and macro uncertainty impacting bidding?

Well, I don't know that they're impacting bidding as much as they're impacting customers' ability to ultimately perform on projects as a concern in bidding, right? So I think – what it does to our bidding strategy is it really makes us get a very good understanding of where the customer is, what the potential of that job on a go-forward basis is and their ability to execute. And to the extent that they can meet that from a cost perspective, right, we're building in our current costs as we know them, we're building in whatever we think may change from a labor perspective or materials. A lot of that gets locked in a bid time. So from a pricing mechanism perspective, we're not overly concerned. We're more concerned with making sure that the projects that we're bidding and the time that we're spending bidding on projects is well served relative to the potential of that project moving forward.

Okay. So, I was kind of more thinking about just the pace of bidding or the flow of bidding or the amount of projects that people are giving to look at for 2024?

Yes. And that's the issue, right? It's – I mean the amount of work that is being presented, right, or people ask us to bid on is more than we could ever do. So the challenge isn't providing pricing to everybody, the challenge is making sure that you're down selecting from that list to a list that you think is really doable. I want to reiterate this because we tried to say it in different ways, the market is incredibly healthy. There is an enormous amount of pent-up demand in the marketplace relative to projects. You can meet dozens and dozens of customers that have massive portfolios of build plants. The question is how many of those will go forward and when. And I think they will all go forward, quite frankly, or most of them will go forward, but the question is when, and that's what we're really spending a lot of time. So we're not in the same position that we were in 2023.

Okay. Great, good luck for Q4.

Thanks, Adam.

It appears there are no further questions at this time. I would like to turn the call back over to Jose Mas for any additional or closing remarks.

Yes. So I just want to take this opportunity to thank everybody again. Thank you for changing your schedules, and we look forward to updating you on our fourth quarter call. Thank you.

This concludes today's call. Thank you for your participation. You may now disconnect.