MasTec, Inc. (MTZ) Earnings Call Transcript & Summary

Hi, everybody. Marc Bianchi here, Cowen's Energy transition analyst. We're excited to host MasTec for our next discussion. From MasTec, we have CEO, Jose Mas; CFO, George Pita; and from IR, Marc Lewis. So thanks, guys, for being here. George, I think you've got a regulatory disclosure to read off. So we'll let you do that, and then we'll jump into some Q&A.

Sure. Thanks for joining us today. As you said, we have a lot of exciting things to talk about. We have -- we'll be making forward-looking statements today. Please make note of the forward-looking safe harbor disclosures that are included in our company website on our presentations, and that's available on www.mastek.com. Thank you.

Thanks. Well, Jose, you've -- I guess you just hit a nice anniversary as your role as CEO here. Maybe you could give investors a quick overview of MasTec from a portfolio perspective, right, there's several businesses that you're in. What's -- how do all of those fit together? And how did you get to this point in kind of the company's current makeup of the portfolio?

So Marc, I think you just reminded me that I'm getting a lot older. But as Marc said, I had the privilege of becoming CEO of MasTec in 2007. And in 2007, we were roughly about a $900 million company predominantly in the telecom space. And at that time, we realized that the telecom industry was changing pretty rapidly. Back then it was driven by second lines and fax machines and things we don't even use anymore. Now we needed to find businesses that we thought had higher growth rates, higher earnings potential. Fast forward 15 years, we've taken the business from roughly $900 million in sales, this year we'll do over $9 billion. So we've got over a tenfold growth over that 15 years. And I think more exciting is we've gotten to industries that we think have extremely long tail of demand. So today, we're still a significant player in telecom. A little bit different in that. We're a big player on the wireless side as well, which we traditionally were back then. We're the largest provider of wireless infrastructure in the country for all major carriers, be it AT&T, Verizon, T-Mobile, DISH, some of the smaller players building out their networks. So we are the guys that actually find the land, negotiate the lease with TowerCo and more importantly finding the towers. But again, once on the towers, we go through the cable and going into the maintenance port. So it's a very exciting time with what everything is coming. 5G represents a transformational change, in that we're having large densification to the network with lots of small cells and lots of different antenna points across the network. We're really at the beginning stages of that currently, and we expect the lose part to ramp in the second half of 2022, and really have a really nice cycle for a relatively long time. And then we've got the nicest part to deal, which is going on as well, which is part of it is to support 5G and part of it's to support the broadband initiative to the home that we saw from this demand from Puerto Rico. A lot of government dollars have been allocated towards broadband fiber across the country. It started prepandemic with a couple of programs that the government put out, about $20 billion of different programs that were available, about the first $9 billion of that were awarded over the course of the last 18 months or so. Since then the government allocated over $50 billion in infrastructure part of the broadband, none of those dollars have been allocated yet. So there's going to be an enormous amount of federal dollars that come into our space that we think on top of what's already a very active market as we can create a great dynamic for a long, long time. So we're excited about what's happening in telecom. In addition to that over report, through the last 15 years, we did a good job expanding what we call our power business. Really 3 components to our Power business. The first was oil and gas, which for a long time has been really the driving force behind a lot of MasTec's growth and quite frankly, its earnings. Since the pandemic, oil and gas, obviously took a pretty significant hit with all of the ESG conversations that were happening and the demand for oil that was down at that time. It really drove prices down. A lot of people stopped building projects. And we've seen a new shift in the last few months relative to everything, right? So from the expectations about oil and gas is going to do over a long period of time. The importance that they have total energy cycle, the amount of products that are now being bought -- planned from a pipeline perspective that are going to be built over the next few years. So we've had a very negative view in that business for probably the last 2 years, what seems to be a changing shift in what we think is going to be a go-forward plan. And '22 is a very difficult year in that business, I guess for the last few years. There haven't been a lot of projects planned. So we're in period today where there's a lot of planning going on, but the reality is that the supply chain doesn't allow for that to happen quickly. So we're very bullish about what's going to happen in '23 and beyond, but '22 is still a challenging year, but we're pretty excited about what that means for the long-term impact for the business. In addition to that, in our Power sector, we've really gotten engaged and everything from generation all the way to the delivery to the home. So if you think about generation, we've been focused on clean energy. We started as a wind contractor a long time ago, really wind drove our business. We organically grew into solar about 1.5 years ago. We've gotten into a lot of different clean fuels. We're installing some of the advanced class turbines that burn both gas and hydrogen. We've built out an infrastructure business with civil component, some heavy infrastructure with roads and bridges and a little bit of verticals. So we've migrated that business, really diversified that business, brought it from about $300 million a couple of years ago, we received $2 billion this year. Obviously, it's a business that grew out the growth, about thousands of people have been challenged from a margin perspective when compared to new businesses. And as we've grown so much, we'll be high in the top in our ability to grow those margins over time. Very exciting for us. And then we've made a lot of investment in the power delivery sector. We think about power delivery and transmission substation distributions. For the first time in my life I'm ready to think that the energy grade as we know it is changing. Customers all over the country are getting hired in the programs with building stronger grades preparing for electric vehicle charging. And I think we've positioned MasTec really well in that field. So from a total company perspective, we've got tremendous opportunities in front of us to manage growth opportunities. I think we've built a great brand with a great reputation, and it's really all about execution for us. We think the value proposition in the MasTec stock is about our ability to execute. If we can hit the margin profile that we've laid out, over the course of the last year, we're very bullish as to what that means for the future. We think we're trading at a pretty significant discount for the rest of the peer group. We understand some of the reasons why -- we talked about oil and gas, some of the margin pressure, but we think as we're able to deliver and perform, we think that those multiples will catch up with the peer group and really in that lies some of the big investment opportunity in MasTec. So excited. We're in the middle of this great transformation of MasTec and diversification and really the growth of some of our non-oil and gas businesses. So pretty excited about what future holds.

Okay. And you've done some pretty impactful acquisitions in power delivery over the past 12 months. Do you feel like that business is now appropriately sized? And I would just kind of ask the same question across the other 3 businesses as well?

Sure. So there's no question our power delivery business went from -- prior to the pandemic, we were roughly $500 or $600 million business, and now we're somewhere between $2.5 billion to $3 billion on an annual run rate. So the business is growing tremendously. We've got tremendous wins at our back, markets growing. Our customers have really responded rather to the acquisition that we made. So we think there's tremendous potential. I think we've got great geographic coverage. It can all be better. So I think we're fine relative to size. I think we've become a solid #2 player in the industry today. There's opportunity to grow both organically and potentially through more M&A over time. I don't think it's a priority for us today. But if the right deal came along with the right value, we'd definitely look at it. But the environment is changing, there are tremendous opportunities that we're trying to take advantage of whenever they're possible.

Okay. Super. In the Clean Energy and Infrastructure segment, so that's had some challenges over the past several quarters. And as I think about it, correct me if my understanding is wrong, but there were some problem projects in there, and you've kind of worked your way through that backlog. And that backlog is pretty much out of there, if not completely gone. And then now we've got this whole solar slowdown because of the concern about tariffs. Obviously, that's now changing and we're going to talk about that. But would you say that that's sort of a fair description of what's happened. And you kind of have the business getting back to where it ought to be exiting the year with this sort of approximately 10% margin target?

Yes. So I'd say a couple of things. Problem projects is a harsh word. I mean there's no question sometimes you have projects that go well and sometimes projects don't go as well. And we've had our share with those over time, a lot of the -- I don't think that's been the biggest driver by any means. I think when you look at our entry into new markets, where we're overstaffed or potentially managing to a newer industry, I think that's led to more of the margin issue than in particularly a project. So for solar, for example, when we started that organically we're hiring into the projects. Today, we hire big teams prior to starting construction, which means there's cost associated with that. When we're new on the job, we are training people as well to deal, so there's a lot of inefficiencies on those projects. So I don't know that the projects end up being significantly different than what we anticipate going in. But obviously, they don't perform at the levels that we think are going to perform over time. We've already seen in our solar business when our teams have built more than one project, the improvements in productivity and profitability that we've seen for those projects have been quite evident. So the question is, as your growth rates normalize, we think that the margin profile as we got multiple projects going on and off are performing, it actually has a much bigger impact to the margin profile than we've got. Your first 2 or 3 projects going where -- turning out, we have actually been now making a lot of money. And I think that's a lot of what's driven our lower margin profile in that business for the last couple of years. If you think about this year, we've guided to the mid-single-digit range, still not worthy where we think our optimal margin levels in that business. We think that's a high single-digit to low double-digit business from the way we see projects. But one of the things that we get to see that isn't necessarily so evident to the public is we get to see a project by project base, whereas for us, we're looking at is once we're working on our second and third project is to be able to hit that margin profile on a project-specific basis. Knowing that if we execute and we're able to perform at those levels on multiple projects, we'll ultimately get to the margin profile. And I think we've already demonstrated that for ourselves. I think the next step is to demonstrate that to the market. Obviously, there's a lot of things impacting '22 outside of just oil and gas has got a huge impact on our business this year, especially a decline from last year, but the labor is tough, labor -- wage inflation has been there, fuel inflation, right? So there are things that are impeding our business that we've talked about on our quarterly calls that are important to notice as we think about '22, right? As we get time, when we can pass those costs through our contracts if we get our annual CPA, CPI indexes, adjustments in our contracts and our fuel additions surge -- fuel surcharges in our contracts, it will always happen immediately. They might happen over the course of months or over the course of the year. But I think all of that will significantly impact our ability to improve our margins over time.

Okay. Now talking about the tariff, which is front of mind for everybody. There's lots of people that follow solar that are at this conference and interested in perspective there as well. So what you deferred, I think, $250 million of revenue out of '22 into '23 because of this issue. But now it looks like things might be -- the tide might be shifting back in your favor for that. So how realistic is it that, that $250 million kind of comes back into '22? And what are customers saying right now? What's the perspective on the ground?

So first and foremost, I think it's a wonderful announcement. I think it's definitely a step in the right direction. This had been -- with August right around the corner nobody really need to have the investigation that's going to end up. So there was a lot of concern, and there was a lot of potential issues. Obviously, whatever the tariff was, it was going to have to be figured out on projects that could -- which sustained on any projects that couldn't. So definitely the cloud really goes away relative to the industry, it's incredibly bullish in 2023. I think 2023 is going to be unbelievable because everybody is running as fast as they can as of yesterday, right? So how much are they counting back on the '22? I think it's still too early to tell, rather than quoting on this 24 hours. I had an opportunity to speak to one of the largest solar manufacturers in Cambodia yesterday. And for the last 3 months, their production at pretty much halted. They were building for countries that weren't necessarily impacted, but the reality is that there was a significant slowdown in their own productivity. So now they're going to start back up. So the question is, what does it mean? How many developers are willing to start projects without panels on the ground, that would impact how much activity happen in '22, how many panels will actually be delivered before '22 that also impacted. So I think it's still a little bit too early to tell for us with '22, it's obviously a step in the right direction. It's great news. It has great implications to the '23 and beyond. I think we'll have to figure out over the course of the next few weeks what would actually mean for 2022.

And then how about the sort of $350 million of work that you didn't defer that's expected to happen in '22. You had a lot of confidence that, that was going to move forward at the time of the call. What what was really behind that? I mean do the customers actually have the panels on the ground, they're ready to go, what's the color around that?

Yes. For the most part, they were projects that were either in really late stage or projects that had panels that weren't impacted by the circumvention complaint, right? So there are other countries that they came from, some are U.S.-based panels, right? So some of them just weren't impacted by the Commerce Department's inquiry, right? So that's what's pretty much stuff. Everybody is going to figure out exactly what this means, exactly how quickly they can get started and what they can push forward. So I think it's going to have a positive impact, but I think it's still too early to kind of quantify it.

So I mean now that the tariff decision is a couple of years away, but it still could be on the horizon. And I think when you were talking before at the call that panel -- or maybe this was on another call, the panel makes up like 50% of the cost. And if that goes up by 2x, it obviously is catastrophic for the project. But what level of increase does the -- is the industry able to sort of manage? Because I know these PPAs are struck on pretty tight margins. So I wouldn't think there's much room to move that.

Look, we don't have a crystal ball, so we don't know what it's going to mean in longer term, right? The negative repercussions potentially that is happening where everybody tries to build as much as they can in the next few years, right? And then kind of looking at what happens at the end of -- going into '25. Personally, I think that between now and '25, we're going to have resolved this issue, right? So either there's going to be a new administration or it's going to be something that potentially looks at the issue quite differently than it's being looked at today. I think we're going to see a lot of manufacturing moves and other parts might not be as impacted as what we're seeing today. So 2 years is a long time to give companies an opportunity to plan for it. I think everybody will have some sort of contingency plans until we truly know where the 2-year tariff impact is going to be. But I think what that means is over the next few years, it's going to be growing to all revenues. People are going to have definitive answers as to what happens to the end of '24 and '25. I would suspect, like happens in this industry all the time, there's going to be some extension or some expansion of it depending on where manufacturing capabilities are at that time. So I don't view it. We've been in this industry a long time. You have all these preset dates, and I think we'll see something similar to what happened, whether there could be an extension whether it'd be actual application to the tariffs or there would have been a resolution to the issue. The bottom line is the majority of polysilicon in the world still comes out of China, so including you address that issue. You can't -- you have no option but to source from the next step. And that's even if you're durable in the U.S, right? So it's one of the biggest issues that's still need to be resolved over time.

Okay. I want to go back to your power delivery business here. So you've guided to the sort of $2.5 billion revenue level for '22. And I think the near-term target is sort of $3 billion to $3.5 billion. How long does it take to get to that level? And are there catalysts on the horizon that you see that could really accelerate when you get there? I don't know we've got the Infrastructure Act that's been announced, but I don't think anything has been allocated out of that. So maybe just talk to us about the opportunity to get to that $3 billion to $3.5 billion?

So look, one of the biggest growth opportunities for us was solar, right, we did roughly $300 million last year. We're talking about doubling it this year, doubling beginning next year. So it's a business that we're highly confident that we'll see $1 billion in '23, can actually be a lot more than that. So that's one of the biggest drivers of what drives our total clean energy revenues. We think wind has been in the market, it's been depressed over the course of the last couple of years with a lot of transmission projects that are currently being built to open up additional wind corridors. So we think the wind business maybe more in '24, but even potentially starting '23, you're going to have a nice rebound. We're seeing what's happening. We're involved in a lot of other lean alternative projects. We're installing today a lot of gas turbines that will ultimately burn on hydrogen, so we have duel fuel turbines that start off and burn gas and then will ultimately burn hydrogen. We think that's going to be a huge driver of the industry. Carbon capture is a huge opportunity on the pipeline side, but quite frankly it's also a huge opportunity for us on clean energy side. We look at a lot of the terrestrial man work that has to happen at those sites. Our smaller infrastructure business that's really focused on roads and bridges that we've got in certain geographies with the dodge coming in from the infrastructure fund. That's a market that we think is going to perform really well. So we're just really excited about the diversity within what we call clean and green infrastructure that will have potential of all of those different verticals located and really are our maturity in the business. So as a lot of those are organic has started, as we build, as we build new projects, we think the margin profile significantly improves. And we're looking forward to executing on and showing the market what we can give out to it today.

Okay. The other large competitor in the power delivery businesses, they had their Analyst Day and talked about sort of 5% to 10% growth in that business. And is it reasonable to think -- I mean we'll get to the $3 billion, $3.5 billion for you guys at some point. Beyond that, like the longer-term growth profile, is it reasonable to think that you could do better than that 5% to 10% level. I mean the other company is 3x the size in that business. So I would think just from a smaller base, you'd have the opportunity to grow faster, but I'm just kind of curious how you see the longer-term growth rate there.

So we split the business in 2, right? So as we think about the clean energy, again, a lot of our focus on clean energy has been about our organic growth opportunity because of that, and I think we're a large player. And so I do think the clean energy side of the opportunity will be greater than that from a growth profile when I think about the next 3 to 5 years. And then we have the power delivery business which is more focused on distribution transmission services. And again, it's a market where I think today, we really put ourselves to be the second biggest player in that business. There's tremendous opportunities with our customers that are looking for alternative, looking to continue to grow and expand both their contractor base, but more importantly, just the amount of work that they see on the horizon. So long-term growth rates are that a long term. So I think 5% to 10% long-term growth rates is a realistic expectation. But I think there's going to be paths for us where we're going to exceed that over the course of the next 3 to 5 years because of where we sit in the market and the opportunity for us to really take the share in addition to what we do today.

How do like large transmission projects fit in? Are they -- how much of that work are you interested in taking on? Is it -- does it introduce some more execution risk and then you just want to limit the amount of projects like that you take on? Just talk to us about the philosophy there.

It's a small subset of our power delivery business. So historically, it was a much bigger portion of what we did. We had $500 million, $600 million business in sale, which about half of it was larger type transmission projects, sometimes we have to work on smaller projects, sometimes we have the opportunity to work on bigger projects. I think that has the ability to grow from that base just because of the sheer volume that exists out there. But I think the bulk of our Power renewable business will still end up being a lot of the maintenance type of work as I think that the opportunities are great and sticky, it's MSA-driven. So it's really the profile that we're looking at. I don't think we're going to see -- when you look at our business mix today, I don't think when we look out the next 3 to 5 years, there's going to be a massive shift to larger projects within that power delivery business. I think all the business will grow, thus the transmission business will grow along with the distribution business. And you might have pockets where transmission grows a little bit more than not, but I still think on a general basis, we're going to have a relatively similar shoot-up to what we have today where it's highly driven by recurring repeatable work.

Okay. Maybe switching over to the pipeline business. It's been volatile lately, I guess, or at least the guidance because of the movement of Mountain Valley. You've now pushed that into '23 for your expectation, but you have a high degree of confidence, I think, is how you phrased it. What gives you confidence in that? I think NextEra had mentioned in a regulatory filing that there -- they think it's a very low probability for it to ever get done. Why is your view different?

So first, let's say a couple of things, right? When you look at '22 versus '21, of course, we've got about $1 billion of revenue decline in oil and gas business. That's one of the big impacts that we're having in '22. When we look at '23 and beyond, what we're seeing is for the last 2 years, there hasn't been a pipeline project planned in this country, right? There's been so much negativity around the industry when you think about ESG, whatever is going to mean to oil and gas longer term. When you look at commodity prices today and you look at what's happening just in the U.S., now all of a sudden production is increasing, there's an article after article where it talks about, now we have potentially a pipeline shortage again where just probably 12 months ago at the top we've done more pipelines than we could ever need. And now we're in a situation where a lot of producers can't move their new product because of the pipeline infrastructure doesn't exist. So we're seeing a ton of projects on the drawing boards of our customers. we expect working significantly around in '23 and beyond. These are our projects. You can just start from one day to another, right? So the supply chain cycle is somewhat difficult period. But we think '23 is going to be dramatically better year than what we've seen in '22. So we're very bullish on improving the business over the near term cycle. But for the next 3 to 5 years, we think this business is going to be a lot here than we ever anticipated over the last few years. And I think that's a very positive sign. On big specific projects, right, I mean obviously was -- what we thought was going to be a big driver of the '22 business. When we thought about 2022, we knew it was going to be a really challenging year, but we thought anything could get us to do that trough in '22, as we started looking at '23, where quite frankly, the potential was more on alternative pipeline, so we drilled a pipeline for carbon capture -- actually, hydrogen, which we think is going to be added into the rest of the oil and gas play today, so for the pipeline story. So we're still very bullish on that. But we're seeing the traditional oil and gas pipeline projects come up that we weren't expecting. And In particular -- look, it's a project that's almost 90% complete, billions and billions of dollars invested in the project. The amount that's left to complete is fairly minimal. There's a massive need for the pipeline. I think today, you've got Senator mention we've been on a rampage relative to that project. And this area has been very supportive of the project that's delayed. So I think just politically, it's a project that has to be done. There's a lot of things that still have to happen, the permitting has to happen. But I think it's probably that ultimately happens. I think it probably will be complete in '23. And it's something that isn't currently in our guidance, but we think at some point does complete.

Yes. Okay. Maybe on the pipeline business more generally. So obviously, the commodity is supportive, rig count supportive as you were sort of alluding to just there. But we haven't seen it show up tremendously in your backlog yet? Is it something that you would expect over the next couple of quarters, we'd start to see some real meaningful backlog additions there? And do you have to make a decision about taking on that work versus maybe your resources could be allocated to growing the power delivery business or other parts of the business where perhaps investors are willing to put a better multiple on?

So to your first question, I think the answer is yes. I think you will see some of those projects run through backlog between here and year-end. I think that's -- we're very bullish about that. Two, when we think about our capital allocation, I mean reality is that today, our pipeline business is down $1 billion. We're -- we've got the equipment in place. We've got personnel in place. It's not easy to move personnel to a project. So we think we've got great people that we've been able to hang on to. So we don't think there's a lot of capital required to get back to historical levels of revenue. It's not -- we're not necessarily investing a lot of capital to get there. A lot of our capital is going to what we think is higher growth businesses, right? It's in telecom, it's in power delivery. But we have a great asset in our pipeline capabilities that we just need to utilize.

So it's not -- the pipeline is not taking away from people and equipment that could be utilized elsewhere in the portfolio?

It is.

Okay. Cool. Maybe -- go ahead, George.

One thing, Marc, I guess you haven't talked about it, but I think it's worth noting that we talked about all the hydrocarbon opportunities that exist, and that are developing into '23 and thereafter. I think it's also worth noting and monitoring the carbon capture sequestration and other uses for pipeline infrastructure that are really developing, I think, give us significant opportunity in the future as well, right? So I think when I -- when you think about the pipeline services that we operate, there's hydrocarbon need. We've talked about that. I think there's also a growing and developing carbon friendly use of pipelines, whether it be for sequestration or ultimately for hydrogen. And those other things that are developing, I think, will give us a significant opportunity going forward.

Yes, that was actually the next question on my list. So great you brought it up. What -- help us size that opportunities if you could, I don't know if you want to talk about a TAM or maybe a typical project size and we can go off and run our own numbers, but just help us -- give us some tools to come up with the materiality there?

What we've said over the course of the last 1.5 years or so is as those projects begin to come to fruition, and we've got -- there's massive investment going on from the likes of Exxon and everybody else really evaluating the market, figuring out where to play, figuring out the best use of their build-out in CapEx, right? So there's no question that we think there will be considerable activity related to the market. There's going to be some projects that are massive, that are maybe new projects that are big as some of the pipelines that we additionally build. And then you're going to have a lot of the smaller local regional projects that also have an impact. We've said in the past we think that when we look out 3 to 5 years, we can see a pipeline business that is similar in size to our current pipeline business that was predominantly all different types of sources that traditionally didn't do. And now is in the backdrop of an environment where we really thought oil and gas is going to be challenge, when you think about where that market is headed in addition to the opportunities that exist in front of oil and gas market space than potentially we're talking about the levels that we were historically at in that market. So we think it's a phenomenal market. It's new. It's really starting. We think we'll see the first real project starting in 2023. There's a couple of really big projects that are on the board right now that we can get those in the next 3 years. But in addition to those MasTec projects, there's a lot of smaller, more regional work that we think is going to have some impact that's going to be just before some of the large projects.

That's great. We're at time, but I just want to squeeze kind of one last thing because we didn't really talk about communications. It's obviously a really big part of your business. Two questions with that. One, the customer spend has been deferred a bit, I think, because of spectrum auctions and stuff. So just talk to us about the profile of that over the next 1.5 years? And what gives you confidence? And then the last one is just I think there's a smart grid angle in this business that the industry has talked about. Just maybe address for investors what that is because this is an energy transition sustainability conference, so maybe interested to see how you participate?

When we think about telecom, we kind of bucketed in 2 areas, right, one is wireless and the other is wired. We're the largest wireless provider infrastructure in the country today. We work for all the carriers, AT&T, Verizon, T-Mobile, DISH and some of the smaller ones building out their networks. And we're really -- we feel that business is really just getting started. We have 5G broadens, and for this purpose it hasn't really started. We've had some macro work relative to some small cell adoption, but the densification required to have true 5G is really -- we think it really starts in the second half of '22 and it's going to go on for a long time. But it's important because the second part of telecom is what we call the wireline business here are really -- today, it's highly driven by fiber, right? We think there's a lot of fiber deployment happening for 2 reasons. One is to provide higher speeds of broadband at people's homes and businesses and the other one is to support the wireless network. There are tens of billions of dollars from the government that have been allocated for broadband infrastructure starting pre-pandemic. We had $20 billion, $25 billion that was allocated, only $9 billion of that first initial phase has been awarded, which represents almost north of $30 billion for the projects. In addition to all that, there's $50 billion in infrastructure build related to broadband that we're still going to have to be allocated. So the amount of dollars flowing into the wireline component of the business is just massive. The reason that that's important, right, is one, it's going to expedite the wireless speed, but it's also going to bring a lot of new technologies. So when we talk about smart grids or city or even citywide grids, things like autonomous vehicles, things like, remote parking where you can just drive your car up to a space and it will really move through sensors. How much time you're at that space? It's going to change the way we live. And I think we're really just seeing the beginning of that, and I think a lot of that is going to be driven by some of the federal dollars. So we're super excited about everything that's happening on the power side, but we're just as excited about what's happening on the telecom side because we think the next few years is really going to be a massive transition in how we communicate with each other. And obviously, the -- I thought has been changed how we all communicated in 2007, 2008. I think we're getting to the point where this next evolution of technology is really going to be the next change in cycle for how we live our last 15 years from now.

Awesome. That's a great place to leave it. Gentlemen, thanks so much. I appreciate the time and look forward to trying to get soon.

Thanks, Marc. Appreciate it.