Quanta Services, Inc. ($PWR)

Good morning, everyone. Thank you for joining us for Quanta Services 2026 Investor Day. My name is Kip Rupp. I'm Vice President of Investor Relations for Quanta. I'm joined by Sean Eastman, our Director of Investor Relations who's seated over there. Before we get started, I wanted to welcome Matt Confer, Quanta's Senior Vice President of Health, Safety Environment for Safety bridging. Good morning. Here at Quanta Services, our people and their safe return home is essential to our success. We demonstrate that through world-class training programs, industry-leading safety systems, and our goal of having an AED with every crew and most recently, our collaboration with MATS & Construction, our mental health and silicide prevention program. Essentially, our measurement of success each day is a safe return to [indiscernible] the men and women out there doing the work to their families. Today is no different. What we really want is a safe return home for all of us in this room. With that, a quick review of the emergency procedures. If we need to leave, there'll be a voice of God come over the screen to give us instructions or overhead speakers to give us the instructions. [Operator Instructions] I have the emergency contract for the New York Stock Exchange. I will make the emergency call. If for some reason, I can't make that call, my back up is Kenny McCardo, sitting in the back of the room, he will make the call. If you see something, please say something, I'll be around all day if there's something I can do to support you or help you, please don't hesitate. Thank you, and have a safe day.

Thanks, [ Matt ]. So we were last here in 2022. And since then, Quanta has delivered on our goals and accomplished a great deal. Today, we're excited to take a deeper dive into our operating model, addressable markets and the strategies and initiatives we have in place to continue to differentiate Quanta from the competition capitalize on the opportunities to properly grow and meet the financial targets we intend to achieve over the next 5 years. For those of you joining us today who may be newer to the Quanta story, Quanta Services is North America's premier critical infrastructure solutions provider to some of the most exciting, visible and long-term secular growth markets. From an investment perspective, we believe Quanta is a unique company, not just domestically but globally. We believe Quanta is the industry leader with a notable competitive moat and differentiated solutions offerings that are highly sought after and valued by our customers. This slide presents some of the key characteristics that we feel differentiate Quanta from our competition in the eyes of our customers, employees and the investment community. As you'll hear today, we remain focused on providing solutions to our customers through collaboration and continuing to advance our capabilities to meet their needs and to provide them certainty. As our customers' capital programs increase in size, scope and complexity, many are seeking a longer-term and enhanced relationship with Quanta to deliver programs and projects for them safely, on time and on budget. As you can see from the agenda, our discussion today will be led by Duke Austin, Quanta's President and CEO. Duke will also be joined by Karl Studer, Quanta's President of Electric Operations; and Jayshree Desai, Quanta's CFO. We also have a number of senior executives joining us in the room today. Quanta has a strong and experienced corporate and operational leadership team, many of whom you've met over the years, with decades of experience in the industry and many with several generations of family involvement in our industry. Duke will start the presentation with a reflection of the last decade, and we'll then discuss key elements of our operating model. Karl will join Duke to discuss portions of the operating model, and Duke will dive into our total addressable market opportunities. Jayshree will discuss our long-term financial targets and capital allocation strategy. We'll then have a Q&A session to address any of the topics that we've discussed during the morning. [Operator Instructions] Additionally, those joining us through the webcast have the ability to submit questions during the Q&A session. And I'll try to balance questions coming in through that system with the questions in the room. We expect to conclude the formal and webcasted portion of the event between 11 and 11:30 Eastern Time. For those in attendance that would like to join the Quanta team informally for lunch that will take place just outside this room in the lobby area. This event is being webcast from our Investor Relations website, and the presentation materials that we'll be discussing today will be available shortly after the conclusion of the event in the Investor Relations section of our website at quantaservices.com. And finally, a brief housekeeping item. Please remember that information discussed during this [indiscernible] speaks only as of today, March 31, 2026 and therefore, you're advised that any time-sensitive information may no longer be accurate as of any replay of this call. This Investor Day will include forward-looking statements and information intended to qualify under the safe harbor from liability. You should not place undue reliance on these statements as they involve certain risks, uncertainties and assumptions that are difficult to predict or are beyond Quanta's control, and actual results may differ materially from those expressed or implied. For more information, please refer to the appendix of the presentation. Lastly, please sign up for e-mail alerts through the Investor Relations section of quantaservices.com to receive notifications of news releases and other information and follow a and Quanta Services on the social media channels listed on our website. Before I turn the stage over to Duke, I'd like to get things started with an opening video. Goodbye.

Good morning, everyone. Thanks for being here. We don't take it for granted to have our investors, our stakeholders here. I think it's really important for us to come out today. I've been in this role 10 years. sometimes it's like dog years, but it's certainly been 10. I'm still in all of where we're at in this institution and what we get to do is super fun sometimes. But what I would say is our families -- my family, I'll start everything we do internally and even externally with a picture of my family, 2 reasons. One, because it keeps growing. I'm having grand babies and so does Quanta. And those little ones there is why I'm here, share there in the middle. He's my reason. He's -- I think it's my duty. If you think I'm not invested in this, you're wrong. It's my duty to make sure that he has the opportunity to work for the greatest infrastructure company in the world. That's my job. That's how I see it. And so I think when we look at it, when we think about where we're going, all the people in the room, I think about this management team. And so I would like for you guys to stand up, you don't mind, just do it. It's an honor to day for us. so back down. It's honored today for us to be here. It is. I think we underestimate the gravity of it sometimes and where we're at as a company. many of us are under dogs. And our mentality, I don't -- the culture of this company, people ask all the time, what's the culture, what's the culture. It's very hard to explain, but what I would say is you can't buy it. You can't bottle it and you can't copy it. That's what I would tell you. It's just who we are. In many ways under docks. 90% of the time, [indiscernible], 8% of the time, we can't. We're just -- we can't figure out what's going on at 2% of the time, we're happy. So you get all these things where you're just frustrated 8% of the time mainly. And I think it's just -- it's that mindset of just getting better. And when I thought about it, I've got a video that explains it a little bit better, but it's absolute performance, and I'll talk about it because that is our culture. That's what we're looking for. It's many things that really are who we are. And I'll play a video so you can kind of see it. [Presentation]

Okay. So a little bit -- I think -- a little bit here we go. All right. So when we think about it, I mean, it starts with the 70,000 people that we have in the field. And it just reverberates up, it's a mindset top to bottom. You can see it, that's the culture. I think it's really important that you understand the culture of this company. And that's it. It's absolute performance. We're known for certainty, and that's how our customers see it. They want us to get it done. And I want to get it done on time, and that's us. So now you know the culture. I think when I -- before we get started on the strategy, there are some certain points that I want to make sure that we get to you. Number one, we self-perform about 85% of our business. I think it's really important. It's a differentiator for us. It's something that allows us to that certainty. So we need to be able to do that. Second, we've compounded earnings over time. We have a good track record. I'm going to go through some of it, so you can see it and see what we've done over a decade. That compounding of earnings is something that you should think about Quanta when you're thinking about it. We also -- I would say, our addressable markets will double what they have been where they were 2022. So it's not just a utility infrastructure company, supporting utility. We also support technology. We also have a big TAM in the middle with generation. So those 3 things are extremely important when you think about Quanta and our markets and where we're going. So look, that's part of what we're going to say today. I want to make sure you see it. We're a solution company. We're not a contractor. So I think that when we look at this, this is our history. It's what we've delivered. And when you look at back at I remember it vividly. So I think we were coming off COVID, we were talking about strategies that we had. But you can see our track record. When we think about this, I think about it how far back it goes, but I also think about what we're able to do today because I think that's really important when you think through this. You have a strategy that lasts 5 years really a lot longer than that, 10 plus. My job right now is really to be thinking about what are we doing in 2031, 2032, 2033. This strategy we're doing today, it's baked. It's there. We have the things and the tools to do it. So my job is to think out farther than that. But you can see what we've done. So I like our chances and our goals, our track record would tell you, you should believe us, your choice. This is kind of the things that we said we would deliver. And when I go back here, we were talking about 3,000 employees. And in 2025, we added 11,000 employees. So you can see what we've done with earnings. You can see the improvements we made in return on invested capital. I think everything we said we would do, we did it. And when we were looking at this plan. We have plenty of time kept me in the room and Jayshree and we quiz and quiz and quiz. And we took it serious. I don't -- we would not put a plan up here that we didn't believe in. And so anything you see today, the numbers you say today, I know Kip said it was just for today and everything is going to go away after today. Look to me, it's personal, okay? I view this as personal. I don't view it goes away today. I view it last. So I want you to know that as well. These are the numbers. We always asked about margin expansion, things of that nature, but we've given a consistent track record of -- you can see 23-plus adjusted EBITDA. You can see all the things we've done. It doesn't just happen. I mean I think we struggle with it because sometimes I feel like we make it look easy. It's very difficult to put these numbers up. We want the visibility of the earnings stream that you see here. And we want to improve our financial metrics. It's important to us, like I think all these things matter, and we'll continue to deliver on this. But this is what we've done I do think -- not a lot of people can say they've delivered things like this that look like this over this time frame. The management team has some credibility and the people in this room make it happen. Okay. So these are the numbers you really want, and I'm messing around, I agree. Look, we're only as good as what we do tomorrow. And I feel like when we talk about these numbers that you see now, they're big numbers. I'm looking at them. You got 7% to 10% kind of organic growth. You have 12 to 15 return on invested capital. So I think when you start looking at that and you're doubling the size of the company over the time frame. So you can see the numbers, [21 26 75 ] adjusted EPS, big numbers here. for me. And I think that this is something that it doesn't -- the strategy has to be here to deliver that. And Now Jason will get more into the numbers, talk about cash flows. She's super prudent. So give or make sure you ask a lot of questions. But when you say, I think our acquisition strategy as well. We're going to talk a lot about that. We're going to talk about what -- how we're getting here. I don't think you can just believe it. We have to get here. So when we talk about the model, I think the industry that we're in is transforming. And why are we here today, it's transforming. Utility business, many of our clients they're doubling the size of their companies, all over. And you can see it because your capital would tell you it's bigger than the market caps. They're a growth company. We're sitting in front of that. We're sitting in front of that market. And you can't just go into the market like you were before, so they're transforming. I believe our company has already transformed. This is not a transformational meeting for Quanta. We've done that. We've already done that. We'll show you the solutions. We'll show you the TAMs. We'll show you all the addressable markets that we can go do, but this company has transformed already. Cross [indiscernible]. But we've invested in this for decades. It's who we are. There are shortages in areas. I hear all the time that about how much someone is going to give to craft, $100 million here, $100 million there. You can't buy craft. Craft builds craft, journeyman build journeyman. We've been doing this for a decade. We spent $100 million to $200 million on the average for a decade. We continue to do that. So anyone that tells you, you can go throw money at craft and it's going to cure it, they're just wrong. It doesn't do it. You have to understand it. You have to build it, you have to build with the partners here, and you can see what we've done, and we'll continue to do it. It takes a journey to make adjournment. It just does. So I think when you look at us, we got this. We understand it. And if you have that issue and you need craft skill and you need to be certain, you need to call Quanta. That's what you need to do. So that's how we see it, and then you can be certain. So when we think about like all of our capabilities and what we've done, I think supply chain is huge here when you look at this. supply chain started kind of during COVID. And we kind of leaned into it there. But our model and the things that we're doing and how we're going through it, the supply chain is a big piece of this. This model, the service line piece of the model continues here. You can see all the things that we've done against the utilities on the 30% we weren't taking advantage of, we're taking advantage of it now. And I think -- for us, this is a model that we've built. It's something integrated. But that 3 -- you've seen this go $300 million to $500 million in our supply chain, that investment. That investment differentiates us now -- and so we're in front of that. The service lines are coming through. They're coming through at this integrated model, and each one is doing things a little percentage of the business. And so -- when you put it all together, you can get the solution that the client needs. And this crosses both addressable markets. And I think that's -- it's big because we started this in utilities, but that same model permeates all throughout this organization, and anything we're getting into any addressable market, we're able to take these -- the very foundations which differentiates us in the marketplace. You can see the kind of an evolution of where we were. So I think this is really an important point that when we look at this, it's talking to -- it's saying that every person that we have, we've increased revenue against it. What I'll say is illustrative Don't give me market to market. If I go -- don't try to do the math. I don't -- you can't do it that way because it will be different all the time. But it's illustrative and I do think you'll start to see it continue to move upward. I mean that's how I believe it will work out. And it's because of all these investments that we've made in supply chain, we're using technology. We're getting into generation. It's all the things that we've done to expand our revenue per employee, so that expansion will continue, but I don't think it's something that you can put in a financial model. I don't, for a lot of reasons, West Coast different than Texas, just different. So don't try to do that, but I do think it says a lot about where the company has gone and how much we have expanded our addressable markets. So when we look at it and we think about it, how do we -- has this changed? Has our market changed? Has we fundamentally changed to the customer? And we talk about a solution all the time. I do think SunZia was a great example of how we changed backward. I think as we talk about NiSource and some other things that we're doing now later in the presentation. I think you'll see how it's going to change going forward. We had 20 companies on SunZia. It was unique. It was a large project, and we're energized and of it. So when I look at it, that was a huge undertaking for the company. We had 20 operating units on it. We integrated nicely, but it continues to evolve. And we've got to work with our customers in a collaborative way. We did here, we'll continue that in the utility model. which we'll talk about. But it's really, really important that you see that we can put all these things together and go and build large projects and be certain for the customer. And we did that. So when I think about it, and we look at all the things that we're doing, it's to really be certain. It's that certainty. So why are we doing it? Why do we think that's important? Well, if a utility goes out tomorrow and they're given their earning streams and where they're going. They're doing it against capital. They are not going to go to someone that doesn't have the capabilities to be certain. Labor certainty, cost certainty, supply chain certainty all those things that we're talking about. And I think that's the answer. We have those answers. We can do that. We can solve those very issues that they have, whether it's technology or our utility customers. We can solve the issues. So we can't do it with one thing, with one piece of the business, so you need them all. You need all things like that -- I'll go back to the supply chain. I think it's really important, and I'll talk more about it later, but it gives the certainty of our customers on what they're saying against their model. We'll talk more about the model here in a second. But I think it's important that when we look at it, it's much like a flywheel in many ways, but I say it's our operating model. And it allows us to really go out and compound things, earning streams, customers, all things. And -- but at the very core of it, it's those people. And I -- when I think about that, -- that hasn't changed. That will never change in this company. That cross skill labor, that investment makes us certain. It makes this company move and everything feeds off of it. So you'll continue to see this model evolve. Karl is going to get up and talk about craft and what we're doing there. I think it's probably at the epicenter of everyone's mind at this point. It should be if it's not. And so we got a little video and then [indiscernible] is going to come up and talk about it. So super excited. But that hasn't changed. [Presentation]

Good morning. [indiscernible], with Jayshree help oversee the operations for the business, President of Electric Power, that would take just a little bit of a minute to introduce myself, first time up in front of all of you. Look, I had the opportunity to join Quanta a little around 15 years ago when our businesses were acquired. And I'll lean into a little bit of the why that does connect to the culture. And in the core of what the business is, I'm a journeymen alignment by trade. And well, I felt like at a young age, in my young 20s, I felt like I wanted to be part of something bigger and better than where I was working at the time, had the opportunity to start my own business, and we grew that business. . And we hit a point, this inflection point that took us to this place. We couldn't continue to scale the business. And what we didn't like about it and a partner is that we couldn't continue to offer to our employees, the advancement of what they were trained for and what they were capable of. And when I speak to craft labor and what I mean by that, I mean, I talk to the men and the women in the field. Those that are out there in it every day, the lineman electricians, the operators, the welders, the boiler makers, the list goes on of the trades that are out there and what they do and the infrastructure they build that powers everything for us to benefit from. They're the ones that make the decisions, thousands of decisions out there in the field when things don't go right. And when I say culture, what it really means to me is this is the environment that we create for our employees. This is where we show them the value that we appreciate of them and where we invest into what they do, we're behind what they do. We create this culture that allows them to go further in any other condition or atmosphere in their career than they would without us. The reality is, is you really cannot scale your craft labor without culture behind it. And that's really what made the decision for us that we want to be part of this business. We wanted the opportunity for our employees to sit down in a family of companies and have the chance to continue to grow. Duke will talk later about how M&A takes place that core acquisition strategy still holds true 15 years later. I continue to get to be a part of that now is on the other side of the fence then. And these businesses hit this inflection point, we hit this inflection point. It's either you go out and take someone else's money or you put yourself into an atmosphere that are going to allow your company to grow and be cared for. It's not a yearly decision. This is a decade decision. And we demand as owners of our businesses that our employees are taking care of, the culture will continue and the training will be there that every 1 of them gets the opportunity. So with Quanta, those businesses have now grown year-over-year at the same growth rate to the rest, well over 3,500 people now well into the billions. It's pretty remarkable when you think of when we started the business and how we got there. We wouldn't have done that without Quanta. Quanta demands that we listened to the craft from the bottom up that we understand what they go through and that we participate from the top down and build an environment and that culture around what they're capable of. The flywheel -- the craft is the engine that drives that. Our culture is the fuel that continues to allow the growth to take place year-over-year. Duke talked about what the business means to him. I want to tell you what it means to me. This is my son, Kathe disgraduated from line school last week, actually Thursday. Full circle opportunity for me his smile says it all. I just -- I love saying it. He just graduated from Boise State in December with a finance degree and knew that he he understood that he wanted to go into something that was bigger and he wanted to be part of change in something that was very special and he knew he could do it inside of Quanta. Just yesterday, he called me, he was on his way to his first job, got in the right of way. And he was reporting to employee #3, employee #4 and employee #5 that we started well over 20 years ago. All of this through the same opportunity, the line school that I went through that I was able to be a part of the same NLC. We acquired that business years ago. Why? Because we believed in it. And if you watch that chance that Duke plays all the time, you can fill that -- it teaches that craft and what that's about, you should all remember, that's how they show up every day and the power behind that. Look, the business is built on the strategy that we continue to differentiate ourselves is around our culture, the capacity, the capability and accelerators that we put on this all set on the foundation of safety and training. Look, our culture is what allows us to retain 28,000 journeymen and [indiscernible] that we have in the field every day. They continue to build thousands of journey through our training programs day in, day out. The capacity is where we take our training platforms, and we continue to scale them, push them into different markets and continue to allow the advancement of our trades, men and women in the field as they grow across all of our campus as the training centers. Look, our capability is based on developing our leaders in the field, not only professionally, but also personally and we believe that we will continue to offer that success and which will lead to those leaders of 1 day sitting in this room with us here. And the accelerators, the enhancements that we continue to scale our workforce without more people is really around what we do specifically with our integrated fabrication solutions and everything technology and how we use AI to continue to advance that training. Look, we will take advantage of all of these things. We will find a way into this younger generation that learns faster, smarter, quicker, and we will continue to build all on the core of our safety and training that's around us. This is our operating model. This is not something you replicate overnight just started 20-plus years ago. Here's a time line that shows you the dedication over decades to training some key points in this -- the Lazy Q NLC, they really are a benchmark of our campuses across the country. What we do inside those campuses is world-class. Live-line simulations. Everything we do [indiscernible]. We're working right inside the substations in our training environments. We're creating the environment to train at a pace that no 1 else understands to. We understand that it takes craft to train the craft Craft leaders understand the craft, and we will continue to develop our craft into the business leaders and those that will run the businesses for decades to come. Last year, the Lazy Q, 1 simple fact trained over 16,000 students days in the seats, training, 3,000 days of instructor-led curriculum, that's just 1 of our campuses. We continue to evolve those. [indiscernible] on the numbers, over $100 million annually is what we spend on our workforce development. We take this incredibly seriously and we will continue. Look, we train our trainers. We make sure that as we bring the craft out of the field, they possess the skills that would it takes that they actually understand how to tap into the minds of who they're training. This is important. Not everyone is a born trainer. What we've learned and understand is, is we need a curriculum to sit into the mines. We understand that craft won't sit in the seat for very long. You have to find ways to go to them, to advance the training and keep up at the pace that we need them. Sherman & Reilly was an M&A acquisition that we did a few years ago around high-voltage strain equipment. One with saves a successful business, gave us a synergy going forward into the transmission build that's coming at us. What we knew it inside of that business was a very foundational platform of training with this equipment into the field. We will continue to advance that and use that against our platforms. This is our 25-year head start on where we're going. You don't replicate it overnight. Safety, as Matt talked this is everything we do who we are. He talked about the I want to hit on a few stats on this. It's important to understand this is where the culture starts. Safety isn't a cost for us. Safety is just simply, it's the right thing to do when we make the investment, and this continues to allow our craft to feel safe and trained to respond when the incidents happened. Look, they -- we spent over $40 million in putting AEDs out there. The stat you should see there is over 50 lives saved that weren't just our employees. This was the public. This was those that were in the area of our crews. And not only that, it does give witness to what we do with our training and how we teach our teams to respond is as I can give you stories of crews going into burning homes and bringing families out safely. I'll give you a story of cruise responding at a hotel room after hours, saving a drowning child in a pool and resuscitating them. All that is fundamentally based on how seriously we take training and how we value that. The Lytx cameras. This is a rear-facing technology inside of all of our vehicles, uses AI to talk to the drivers. It trains behavior, and what we found with it is we take that data, it clearly reduces cost by reducing claims and things of that effect. But we take that information and we build curriculum around the train against Look, a lot of all of the apprenticeship programs that exist out have been out there for 40, 50, 60 years, little to known about the most hazardous thing that we ask our employees to do, and that is driving. We've changed that. We will continue to stay up with what's important and use the technology. Look, this is the issue that no 1 wants to talk about. And for us, it's -- we ask our craft in the field. We ask the men and women that we go out, we work long hours. We travel a long ways from home, lot of time from their families and in conditions that are hard. More than 5x the death than construction-related incidents, as on site. 46 out of 100,000 employees will fail to this. It's important for us that we care not only at the job site, but also after hours and give them a chance to connect to something that they can get this solved. It's important for us. Look, we supply and we drive every day the largest craft scale workforce in North America. And how do we do this? We continue to focus on the training. We advance the training. We have a new hybrid, a printer ship program that's designed around competency base, not only time, and that allows us to train journey man up to 30% faster. Our apprenticeship program enrollments are up over 120% for the year. Our trade partners that you see here lean on us because of our size and our scale, Diabete W, the UA the operators, Launa, boilermakers, plumbers, all of the unions come to us. We collaborate with them to drive forward to get so that we can create an advantage into the marketplace and we continue to compound on our trading environments that we've created. Our Northwest Lineman colleges in the Lazy Q, it's 10 world-class campuses across the country. And all of this continues to compound time over time. We bring our veterans in we offer them entry into our preapprentice classes. From that, we direct hire [indiscernible] programs into our apprenticeships. Over 20% of our preprinted students are made up by veterans. We're proud of that segment. But this is simply about certainty. As we train 10,000 to 20,000 people internally, we're simply running a large institution of training. We are a training organization. This is what we do. In the tight labor markets, what you'll find is preferred employer status will draw a traction. That's what Quanta is. We will draw in the training, and we will draw on the best leaders that are out there. Those who want to be trained, excuse me. These capabilities, the strategies, all of this is to make our workforce more efficient I'd like to look at it in the way of our solutions-based approach gives us the ability that we're sitting in front of our clients early and often as these programs and these projects continue to come out of a larger scale they ever had, our clients all across our markets need help. We often -- I refer to it in a way, is don't ask me that you need 100 employees, ask me what we can do with 100 employees, give us the opportunity to find ways to spread our labor in a more efficient, more effective way, give us the opportunity to use our service lines and all of our integrated solutions, our supply chain different methods that we can scale this workforce without just a number of bodies. This is a multiplier for us, it sets us apart. Look, our integrated fabrication solutions as this grows over 4 million square feet, looking to grow to over $5 million this year. This is not only for our MEP business, this is across all of our trades. We will continue to enhance this not only for the cost predictabilities not only for the schedule condensing that we can create on projects, not only for those efficiencies of what the trade can do in the field, the weather environments, but we will use this as a landing spot for our new hires into our programs, and we will eventually turn these into small training centers that send out into the workforce. Our AI technology, look, this is -- we're using this in a way to derisk the business. We are -- and we will continue to find ways out on large projects, programs that scale our workforce allow us to move faster out there. We've shown that we can reduce cost the human mind just simply cannot keep up with how fast AI can transmit and organize data. We will lean into this. We're doing it now, and we will continue to do this. As we self-perform 85% of our work, it's important that we continue to derisk the business against that. As we do more, we'll use these technologies. But with all of this, let me be very clear, you cannot replace physical craft labor in the field with technology, but we can make it incredibly efficient, and we will. Look, I believe this is probably the most underrated underestimated value of Quanta right here. Our ability to use our workforce as diverse as it is. As we sit down and we solve these solutions with our customers and the convergence of what has taken place out with a large load customer that needs the generation and needs the utility interface, these programs are getting larger. The capital budget is getting larger. And for us, as we can move and deploy this labor across its powerful. It's certainly a competitive advantage. 5 years ago, I stood up here, Duke [indiscernible] here and said we will execute all of our labor across all the markets and our trades. And I can tell you we've done that. We will take our transmission resources and deploy them into a solar project. We will take our subsurface teams and moving from horizontal to vertical drilling methods. We will use them to install large DUC bank, depending on the customers' demands. Will we use mechanical and industrial resources inside of wind turbines we have. We can take an electrician that is low voltage Wireman out that is doing a large load center 1 day. We'll move into a generation facility. We can put them in a solar facility, and we can put them in a substation, all by our integrated approach to how we go about using this diverse labor force. Our Sensia transmission line, it was led the 600 miles of transmission that was actually led by large pipe management team about 80% of them was. And almost the majority of all of the civil that was completed on that Sanjaya project was done by our pipe and gas crews. What is this is how we move across the markets, and we can be flexible with our craft. This is also a powerful retention tool, and you understand craft. Projects start stop, the craft likes to understand that the future is there. They understand the side of our culture. We will take them from 1 project to the next. We will cross-train them across the work and give them opportunity to stay in geographical areas to travel more hours in any part of what they're after. Look, this does give us the strategic positioning against everything that Duke will talk about. This is how we handle the convergence of our markets to our customers. And we are allowed to check all these boxes because we have that flexibility. We've created that. We stayed core to our craft labor and development of them, and we will continue to use that vibrant workforce across our flywheel, our operating model and to create the durable results. And with that, I'll turn it back over to Duke to talk about the markets. Thank you.

Thanks, Karl. As you can see, our commitment to labor is unwavering, that's going nowhere. I also say that the company does a nice job with our employees being on the road. We're all on the road a lot, 200 days a year, and many of us. It's lonely at times. And I do think the Mates, the programs that we can do for mental health that goes unknowns is something that we need to do as a leader in the industry, and we do, do. Also, we have a lot of significant others at home that support us. I've got one that's 30, 30 years and going, I think, 5 months. I keep track of that, guys, should do that. And we could not do that without the support we have from our families wouldn't work. So I think -- none of us take that doesn't go unnoticed. All right. Let's get to the markets. super fun to be up here talking about these markets that we have. I look at them, and I'm thinking, wow, it's twice as big as it was in 2020. It's so different, one from the other. We have a utility model, technology model. They're moving super fast on one side and the other ones starting to move super fast. So it's great. I think when I hear this, one of the things that I heard keep hearing, so I'm going to talk about it a little bit. We talk about grid constraint. So I keep hearing that the transmission system -- the system is 50% utilized. I want to talk about that just a second. That's right. How many hours do you sleep at night it. So 33% of the time is not very much a load on that system. Are you only going to run large low customers at night? Are you only going to prepare for night? No. So in the summer, in the winter, when it's real cold, real hot. Same thing. You get load variations. So in totality, that's what it looks like 50%. But 50% is roughly 90% of what the -- unless you want to black out. And I can tell you, running the grid in Puerto Rico, where it happens because lack of infrastructure, it is not fun. It is not where you want to be as a country. We're not going there. So it's a fallacy and it's -- do you know what the national highway system is utilized that is 30%. . lSo do you know how congested these streets are out here? Like you said walk, okay? So just think about it like that. It's easy to say, it's not how the system works. It makes for good for us. All right. We talk about the TAM, I think they're significant. And look, you can see, we think it's around $2.4 trillion. It's twice as big as it was before. Large loads are pushing in. So I think when we think about it, all the things you heard about labor, all those things, it's really to address this market. And we're addressing it across both sides with our service lines with all of our capabilities, all of our companies are addressing both sides. I think about like when you look at the utility partner, that's really core. That's what we've had. That's how we've historically been there. But it's something that the other side starts from technology. you really got to think about this market, where it's going and how they converge with generation, things like that. So our utility customers are extremely important and how the other TAM moves. So they work in unison in many ways, but this part of it, the electrification, our load growth here is significant. We've seen many of our customers double their budgets, even their market caps with the amount of capitalization we've seen. We've got great visibility here. This is like for us, there is this imbalance at the generation side. So I think you've seen us lean into our generation business start to do more here, but it's what both sides need. So it's creating that growth in both sectors, and it converges right there at generation. So this is talking about really what we need for a large load customer. I do believe it's not just data centers. This is -- when we talk about these large load customers, it's also onshoring, it's also pharmaceutical, many other things. And I think when you look at our backlog, while we talk about this, it's only 10% Jayshree correct me. Okay, close math. It's very close, but that's the fastest-growing thing we have is that large, low customer technology, but it's not just that. So they are complex. These builds are complex. We sit in the center of it. you're hearing many things about it where you're having off-grid solutions, on-grid solutions. We'll get more into that later. But I think in reality, the best way of that most people will -- the large majority will visually connect to the utility grid. It's certainly something that needs to happen. I believe it's the way to do it. And -- but it doesn't mean that these bills aren't complex. So our expanded capabilities and how we're looking at the loads and where we're going, I think we're just getting started here. The momentum is building. We're talking about it. We've had Cupertino for less than 2 years. And we talked about when we acquired [indiscernible], [indiscernible] is in the back. We'll talk more about it later. But what I would say is we're just learning this customer. And we're just to understand everything they need and the speed and our certainty means everything to them. So our amount of discussions with technology is significant. I mean it's daily. It's just about as much as we do or more than we do with our utility customers. And then we're talking to both of them at the same time in many ways. So it is converging, and we are seeing our position, how we're differentiated in it. is that certainty means everything. And we got -- they want to go faster. You heard me on a video. Let's go fast. I mean, that's us saying, we got to go we got to move. And fast does it mean quality moves down or certainly moves down, moves go faster. So we get a lot on a data center, and I think trying to explain, well, how much of your addressable market is a data center? How much? What can you do? What's the scope? I mean, we think about it like MEP, that's how you see it, mechanical, electrical, high voltage side of it. But it's around -- when you look at the market we can address, it's about 50% to 60%. And of that, which you can see the numbers up there. It's 13.5% meg, 13.5 million a meg when you look at it. So that's kind of what's possible. I think when we look at it, while we are -- I mean we're on jobs today where we're self-performing full scope, less chips, but full scope. We're on multiple jobs actually. So we don't talk a lot about it. We're down there doing it. And so we can go full scope. But I think it doesn't include the generation, and it doesn't include the high-voltage interconnects that we have from our utility. So it's almost double that if you really think about it, from a generation standpoint, if it's off-grid or your connected generation or we're connecting into [indiscernible], which is not in that scope. So we wanted to give you some context. I think it's important that you see it many times these jobs press on our supply chain to that's another opportunity pulpy chain shows up here in these markets. But I do think we got to talk about this because we've got to give you more visibility in it. We want you to see it. We want you to see those opportunities. And I'll go back 1 more time and say it's only 10% of our backlog. So it is moving up, though, and it will be the big driver that you see going forward. So when we think about these programmatic spends and we really want you to see the visibility that we have in them. And what I would say is while we're talking 2030, this goes well beyond 2030. We're talking to customers today about 2032, 2034, all the way out today, the programmatic spends that moved well beyond that. This business has not stopped at 2030. Actually, I think our job is to set this up to continue the compounded growth that you've seen in the past to continue that on a go-forward basis. And some will go faster than others. Some will grow way past what we ever thought. That's why the beauty of this company is a portfolio that we put together. And so that portfolio allows us to operate all the way across these markets. that keep moving forward. But I do believe you're seeing growth in all of them, and it's well beyond 2030, even though we kind of stopped at some here in a 5-year plan, but it's certainly longer. So when we talk about our supply chain, we've done a lot here and to give you -- to go back in time, we started this in our people strategy, which if you look at the room and look how young everyone is, I'm the oldest 1 probably are getting close to our management team, I mean many older in J. So anyways, -- we've done a really nice job with both of those things. And supply chain, one of the things that when we thought about it, you could see it during a cohort, you can see it stop. You can see like all of our crews and everything, it was so hard and the customer was driving us to be different here. That's the why. That's why we got into it. because they asked us to. They asked us to lean into this. Well, what's your critical components, transformers, breakers, polls, why? That's -- it was the biggest part of our utility business and also technology. That's what we leaned into. So the strategy, it was simple. We were listening to the customer. They were asking us to do it, and we delivered it. We're delivering it today. So when I think about it, we talked about what we had what we've done with labor. You can see the investment Carl talked about it, extremely important. The same investments here. We're just getting started. We'll continue to invest in this solution. We're the top 5 purchaser in the top 5 of havoltage equipment today. We have partnerships. We have vertical supply chain with transformers, we announced a [ $300 million to $500 million -- billion dollar -- million, million, $500 million to $700 million investment ] Anyways, all right. It's a big number in Jayshree is looking at me, so I know I said it wrong. That, to me, every factory is expanding that we have. It's a business on its own. Those numbers stand alone on their own. What it does for us, the pull-through is what really compounds this model that we're talking about, and it's this integrated service model that continues. And Look, this is a big piece of that, and we're really proud of what we've done here. So how we deliver. We have a vertical supply chain that delivers through our operating units. We have expanded what we can do here at our transformer factories, our breaker factories. So vertically, our partnerships, and then we can distribute. And so it's just starting to grow. I think these full-scale capabilities are extremely important to us as we move forward. How we deliver, how we deliver to ourselves and the customer matters. You can see it like with our 765 expansion, which I'll talk more about it, it came from our transformer facility that had built 765 transformers years ago, the first series of them that now where we've advanced that up to 765 now, where that factory will double in size, doubling capacity. With 765 being the very core of why we did it, it doesn't mean we can't [ be 500 -- 345 ], but we can go all the way to 765. U.S.-based in Pennsylvania. It matters that matters. We talked about SunZia, this is Kip's slide, so I'll just tell you, it's just showing you like the breadth of of what we can do. And I take it for granted that this is what we're supposed to do. We don't take commodity risk. So typically, all these things are backstopped or we've contracted around it. But you can see how big these numbers are. So that's why you're in the supply chain. The numbers are big. And that's what they're asking us to conquer. Not only the labor, you got 3,000, 4,000 guys out on SunZia given time, men and women. But it's also this behind it. You have to facilitate this as a company to deliver. If we're going to be certain, if we're going to be certain and on time, we have to deliver the supply chain along with that labor. Both of them matter. All right. So we walked through supply chain. We walked through labor, and I was put them together. So I think when it starts, it goes all the way back to how we -- at the customer level and where we're at there. So when I think about it and we're thinking about it, it's those relationships that we've had for 20-plus years. We have 20,000-plus employees that are on these systems on every day. What does that do? Why are they there? We have built trust with these clients. They trust our companies. They trust us to deliver against all solutions. So that is the very core of how you can put an integrated solution together is a trust. So this is like this on technology as well. I mean Cupertino is named after the city, [indiscernible]. I think Apple is there. I think you have a few more around there in San Jose, those areas. So they've had a long-standing relationship with technology. Same is very much the court. So it builds this trust and value. And I do think we talked about it when we bought Cooper Tino. One of the reasons was for that, not to mention the great pool and the leadership, but it was also the customer base. Tom's and arose to make sure I said that. So when we look at these integrated models, what does it mean? I think it depends on the customer. So we -- you can think about them to be differently in each one. So we model them around what they're asking us to do. I think that's important. It gives us flexibility and our labor is fungible. So we can move around these models. [indiscernible] want EPC. So I want just a procurement. Some might want just construction. It's okay. It's fine. What we're really trying to do is put the right team in the right position. And I think you can see I got challenged on this slide because, well, is your labor really that fungible? Can you move across every market? Can you take the service lines? Yes. I mean, we can move across all these markets. Our labor moves across these markets. So it's they're local. And I do think that local content from our organizations also derisk the investor and the customer. They're best-in-class. We're delivering the service lines When we talked about it in 2020, the -- we didn't have the 30%, the engineering the procurement, the things that were going on, even up to 50, we didn't have generation either on the fossil side of that utility market. Now when you think about what a utility says from and their capital, we can pretty much, I would tell you, well above 75%, probably in the 80s and 90s percent of that capital is addressable to us. and these service lines are foundational in how we integrate them, it's extremely important. So you have a lead crossing all this that allows Quanta to provide a total solution versus just a contractor locally. So that gives you the solution-based approach. Due to these service lines, it's due to us moving these across. So this is Sonia. We talked about it earlier, what we did there. It was 25 operating units, we sell performed 90% of the project. That self-performed content is something that I think separates us. And we were able to do that with Sonia. This is one of the largest -- or the largest renewable project in North America, the line was extremely difficult to build. The company just blew right through it performed. We did. It wasn't that easy. It wasn't -- it was like but we did it. And I'm really proud of the team, Kyle teams, some of the teams here that built it. But it's given customers certainty at scale. So we heard from the investor base a little bit, what are you going to do after SunZia, I'm really worried. Well, I don't know, we just gave guidance, I wouldn't be too worried. We never were worried because it looks different. This is just 1 big job. This is just to say we can do it. There's many programmatic spends. There's many other types of jobs that we have, but I do want to show you the breadth of the company and what is possible. This can happen on multiple fronts. This is kind of the old compounding model. All right. This is a representative of a partnership with a large utility customer. It's something that I'm proud of how we've ingrained ourselves in the very fabric of the customer. If you think about the AEP model, the announcement, it was around transformers. It's around 765, is around all the things that we're doing, that was built on long-standing trust between the 2 companies. And at the very top, we trust each other. They have a $70 billion plus capital budget. We work together on 765 capabilities. We're integrated in many, many ways with them their success and our success are together. And I think this model is way deeper in and it also contemplates day-to-day workforce in that very baseline that we believe is extremely important to have the base business to be able to perform the larger projects. So we're not just contemplating the one-off project. We're contemplating the whole programmatic spend, the whole capital stream of a customer today. That was not the case 5 years ago. It wasn't -- we weren't there yet. We're there. So we're in those rooms, having those conversations around giving customers capital spends certain. It's a differentiator. We're negotiating 75-plus percent of the things that we do. So when I look at it, I think we're way deeper in. This is a concept. It's not the only place we're doing it. It's multiple, it's across the board actually. We have these deep relationships with many, many, many of our utility clients and moving that way with our large customers and technology. So that's a deep relationships integrated and anticipate supply chain craft skill labor certainty and many other things that we do, engineering, all kinds of service lines. So you've incorporated the whole thing now into the new utility map. So that's how that works. All right. This is a slide I've been waiting to tell you all the whole time I could have done this hour ago, and we'd probably been fine. But I want to talk to you about NiSource what we did there because I think it's where it all comes together, both sides, both TAMs and all of our service lines. So we talk about NiSource. It's a deep relationship we had with NiSource for, I don't know, a decade at least or more, we were a contractor on their system, $50 million a year to $70 mn, something like that. And so we built trust. As they moved into different markets. As we see them today, they -- we had the opportunities to build generational generation with them. And we're awarded on those projects, non-backlog as soon as air permits and things come in, put them in backlog. So you expect our backlog to go up. When I look at this, that was just a start because there's also a renewable piece of this with batteries contemplated in it. There's large transmission that's contemplated in this program. And the other side of this is 1 to 3 gigs of large load and another 3 to 6 gigs in a geographic area. So if we have this much labor, -- and this much concentration in a geographic area, we talked about the fungibility. So -- and we talked about what a [indiscernible] was, so now let's talk times it to the 1,000, get to 1 gig. So we're in the gigs and talking to customers about their systems on the other side, the technology, which would be load centers out of centers, all the people that you know. And I really like our chances to build a vast majority of that 50% to 60% that we talked about being in our tangible spend, much like we did with Sensia, very much integrated but now it contemplates both addressable markets. And when we think about it, this is a midsized utility. There's many midsized utilities out there that we have very good relationships and have built trust with that the other side of our customers, which is the technology piece of this, want that same discussion. And we can deliver that. We are delivering it at the very highest level with them, with a customer. So this has gone from $50 million to what I consider $5 billion to $7 billion type opportunity across a 5- to 7-year period. That's just 1 customer. That's an integrated model. That's an integrated solution. It's probably much more than that. I'm being pretty prudent about it. But I just would tell you, in that geographic area, around that customer, there's that much opportunity due to that concentration of flexibility and fungibility of labor. And more importantly, that drives the rate payer down in Indiana or NiSource $7 to $8 a month for the customer because of the load. That's what the unknown news. That's what the industry has got to talk about and do a better job talking about is driving a load that creates a negative impact or a positive impact to the rate payer of $7 to $8 per month because of the [indiscernible]. And the same thing has happened in energy with [indiscernible]. We heard it last week. That large loan is creating $2 billion worth of impact to the good for the ratepayer. Just not getting out there like it should. It's got to -- we've got to do a better job as an industry talking about it talking about that data centers are not the issue. The issue that's causing that is the lack of infrastructure. If you build more infrastructure, bills go down, congestion in the United States is, I don't -- it's over $10 billion a year, just due to congestion. So we've got to build infrastructure as a country. This is an example where we've done a good job talking to the customer, talking to the customer base, and what you really see is our models coming together in this integrated customer service around fly chain and craft skill labor and what we can do with their utility customers. Super exciting for me at speed, certainty where Quanta really, really drives home who we are. This is it. NiSource it. You can expect more of it. So acquisitions. When we talk about our acquisitions, I mean, many of the room, 70% of the room on our team came from acquisitions. Much of our leadership came from acquisitions. And I think this is really, really important to us. And sometimes it goes on value because of how we deploy free cash against this. And I would tell you that we have a very good track record of acquiring great companies that allow us to do much more than may be seen just on the face of it. So when we think about it, this is core culture that we have, and I think you saw the absolute performance video. That's what we look for. We look for people like that. I mean we don't build synergies in our models to begin with. So it's not about synergy. It has to go in, has to fit the strategy we're talking about today. So anything we're talking about today, it's on the table for us to look at from a craft to engineering to many, many other things. Our owners stay, we grow together. We've done great things with these companies. We'll show some slides in a minute to tell you how much. But I do think it's important, and nothing is more important than the culture with these businesses. If we value anything, we're valuing that leadership team because I think when we look at it, we're there forever. We're not going to flip it. We're staying with it. So we've got to get that right. I've got a little video here that I want to want you to see. [Presentation]

Yes. So when we look at it, I really think you can see from our standpoint, the feeling that we get from being able to do this together. And it is a partnership -- we owe it every bit as much to the names that are on those trucks as the management team at Quanta to them as well. We want to permeate that same feeling. We want to make sure it perpetuates through time. that their kids, grandkids have the opportunity to do what they did with Quanta and more. I think when we look at it, we want to make sure those acquisition candidates, everybody underneath them has a chance to do more and be the CEO of an that's the goal. And I think we've done a nice job there. You could see the type of companies that we bought. I will say, Karl mentioned it a bit when we think about it, we talked about some of them. PTT, when we bought the transformer manufacturing capabilities and Sherman + Reilly, really around 765, nobody saw it, nobody understood what we were doing and why we did it. And there's many more things that fit our strategy. I'm just not going to tell you. Why would I do that? So -- but I do think the opportunities are out there, and you'll continue to see us lean into those type strategies in the future. As we talk about here, we're talking about the growth that you can see on the companies. It's substantial. We get way more growth than you would see us put into the models. We get a lot more synergies on the other side of this. Our consolidated eliminations that we make. We don't put them back up anywhere or try to put them back into service on you're different, like utility or your underground. We don't put them back up in the segments. We just -- we eliminate them. And so I think it's well over $2.5 billion that we're working together in synergies and internally. It's creating way more value than you can even see. So I do think that's really important when we think about it. And something that is driving margins and is driving returns and doing a lot of things together and building certainty for the client ultimately driving down the cost of the ratepayer. So the compounding model, I think we've been through it. You can see how Kraft skill grows this and our acquisitions and capital deployment are extremely important here. what does it look like going forward? I think it looks much of the same. But we will follow those markets. And it drives performance and success and compounds. We've talked a lot about that compound nature, and that's what allows us to do it. So you will continue to see that kind of capital deployment with these acquisitions as it fits into the strategy, it has to fit. So it will be much more of that. And with that, I believe it's Jayshree. So get up here and they've been waiting for you this whole time. So come on.

Okay. All right. Well, hopefully, you've heard the enthusiasm from Duke and Karl. I hope those you found those videos as inspiring as we all do. It does say a lot about who we are and what this culture is and why we believe with the TAM expansion that we have, that integrated solutions approach with our operating model, that dedication to craft and our culture of absolute performance. This is why we believe we can compound value over the next 5 years and beyond. And we believe we can create durable, consistent financial results over the long run. So I'm going to get into this. I'm going to talk first about why we believe that operating model is so critical in driving those consistent results. I'm going to go through it quickly because I think Duke and Carl actually hit it very, very well, but I do kind of want to bring it back to you all. And then I'm going to talk about our historical track record, what we've done over the last decade and how we performed against the last couple of 5-year plans. Then I'll get into our 5-year performance, what our expectations are going forward. talk about our cash generation profile and our capital allocation strategy. And then lastly, close with the levers we have to continue compounding adjusted EPS and return on invested capital. So turning to the slides. So as I said, right, we believe we have a very strong operating model that allows us to continue to drive consistent results and derisk the investor base. That's very important to us. We believe our credibility is very important, and we've tried very, very hard. We work really hard to earn that credibility, and we work really hard to try not to lose that credibility. And these are the reasons why, right? Duke and Carl talked a lot about why our craft workforce and how it's been built for versatility and the ability of our best-in-class operators to be able to flex across markets perform through cycles, and kultimately deliver certainty to both our customers and to our investors. We have a strong balance sheet, and we're going to keep that strong balance sheet. We firmly believe that our ability to generate cash and put that cash to work will continue to compound value for this company and for this investor base. That balance sheet, we remain patient. We keep it flexible so that we can be strategic, and opportunistic and deploying capital. And again, we strongly believe that our balance sheet reflects that patience. Duke talked a lot about why we've invested in our supply chain. It's been a great compound for us in driving revenues and allowing us to capture more scope. But it also allows us to derisk the results for the customer and for our investors, that ability to have control of our supply chain, as Duke described, is very similar strategy as to why we want to self-perform our labor, controlling our supply chain allows us to control our destiny and create consistent results over and over again. Training and safety. I mean, you heard it starting from the way Matt described how safety is important to us. You heard it from Duke. You heard it from Karl. You're going to hear it from every single person you talk to after we finish this presentation, how critical that training and safety as to who we are. Those dollars that we put up there, those are significant dollars we invest constantly in our future workforce. It's not an expense like Karl said, it is an investment and we treat it that way. And because we treat it that way, you're going to continue to see us, we believe, continue to drive those consistent results that we have had a track record of doing so far. And then lastly, I want to talk about this, right? We are getting more complex. The size and scale of our company is increasing, and we are being asked to do a whole lot more because of the integrated solutions that we've developed and the commitment to craft that we have created, but we are doing so and still making sure that we are taking the appropriate risks. We believe very strongly that not only can we grow our revenues, but we can grow the bottom line, which is how we measure ourselves against. And the NiSource contract is a great example of that. you've talked very well about what all we've been able to capture with NiSource. But as we talk to you about it when we announced it, we were able to capture so much of that sat scale and scope without creating risks for our customer and for you all as investors. That's very, very important to us. And as a reminder, Less than 15% of our revenues, less than 15% of our revenues comes from fixed price contracts greater than $300 million. That's really important because just as we -- as Duke talked about, our base work creates our ability to capture large work, but our large work allows us to continue to grow our base. And we're very focused on continuing to grow that base work not only because it derisks the investors, but it allows us to continue compounding value over the next 5 years. So let's go into our track record. Again, words we said a lot of words, but at the end of the day, we got to perform. We've got to put up the numbers for you guys to have that credibility in us. We know that. We firmly believe in that. And I really like this slide because I don't have to talk much to it. The numbers speak for themselves. We've been able to grow revenue over 14%. More importantly, we grew adjusted EBITDA faster than revenue. That said, margin expansion you've seen over that time period as we've scaled in our growth. Backlog has grown faster than revenue, giving us the visibility that we see over the long run, giving you comfort that we have that visibility in the long run. And then most importantly, our adjusted diluted EPS has grown 25% over the last 10 years, 25%. That's a testament not only to the operating performance of the company. but it's also a testament to our disciplined capital allocation approach. You're going to hear me talk a lot about that. You heard Duke talk a lot about it. We are a company that pride ourselves in not only operating performance but making sure that we are putting your capital to work that drives returns and drives that consistent performance. We're very proud of this, and we believe it's allowed us to earn the credibility that you all expect from us. But we also know that again, words only matter so much. We got to keep performing it. We talked to you last couple of times about our last 5-year plans. We set some targets. We know how important it is that we do what we say we will do. And so this slide shows you how we've done against the last 2 targets we've set. In 2021, we had a target adjusted EPS of $3.98. Our actuals were $4.91. We exceeded our targets, not only in adjusted EPS, but in return on invested capital as well. We set a target in 2026, of $12 for adjusted EPS and greater than 10% return on invested capital. That $12 was on the high end of our range. We now expect to exceed our targets on both adjusted EPS and return on invested capital. So the point of this slide, right, is just to remind you all that we put something out there, like Duke said, when we put something out there, we are firmly committed to making sure we deliver what we say we're going to do. So now let's go into the next 5 years, what are our expectations for where we're going to be over the next 5 years? As you can see here the numbers for the financial expectations of the consolidated level. We've also given you segment level expectations of revenue CAGR, EBITDA margins and operating income margins. I do ask you guys, though, and you're going to hear me say this a couple of times, don't over-index on the segment numbers. They're there. This is what we expect to do today. But as Duke and Carl talked about, we move our resources across segments. And so you may have some variations, right, as we make sure we maximize value for our customers and for our investors. As we move those resources around depending on what the work is. So let's focus on the consolidated level. Our expectations are we are going to grow organic revenue by 7% to 10% CAGR, 7% to 10% CAGR and -- just to put that in context, last 3 years, we've grown revenue by a CAGR of around 10%. So the 7% to 10% for us, we feel very doable, especially given all the things you've heard from Duke and Karl around expansion and the stuff we're doing for all of our customers. Adjusted EBITDA margins we see the ability to generate 10% to 11% adjusted EBITDA margins. This is a 30 basis point expansion against the midpoint of 26% guidance and an 80 basis point expansion against the high end of that guidance. Where we see the ability to expand margins is a few reasons. One, we think we're going to have performance improvements across the enterprise but in particular, from our legacy underground operations and our Canadian operations. We're going to have growing demand for our integrated fabricated solutions and our MEP capabilities. that's going to also help expand margins. And then lastly, operating leverage as we scale, as we take advantage of our supply chain capabilities and as we self-perform across greater scope. As Duke talked about, that $2.5 billion of intracompany revenues that we have to eliminate. Yes, we have to eliminate that. But what that means is we're doing more work for our own sister companies, which allows us to capture more margin that otherwise would have gone someone else. So for those 3 reasons, we think we'll be able to expand margins by 2030. So now giving you guys an overview of where we believe our growth is coming from across 6 key end markets. I want to talk a little bit about this. But before I get into this and before Duke comes in over here and takes this from me and tries to tell me to stop talking about it, I do believe that this is a good way to think about our end markets, but it is directional, directional. So don't get hung up on any one line item as we have said countless times. We have the ability to move across these markets. We can be flexible. We are able to move through cycles as we've demonstrated in the past and we're going to continue doing so forward. But this is a nice view of where we sit today and where we think our key end market growth is going to come from. As Duke talked about, the technology in load center is our fastest-growing market today as the demand for data centers, for large loads and the demand for our MVP capabilities continues to grow. That will be our fastest-growing market as we see it today. The core of who we are, our electric grid and gas utility business, that's the backbone of our revenue growth and our anchor for our revenue growth. We continue to see very good growth prospects of that as well. Our power generation and storage business. At the midpoint, we're seeing about double-digit growth over the next 5 years coming from both our renewable energy solutions and our gas generation solutions. We continue to see good growth from our customer base around these solutions around generation driven by the large load needs and what our customers are demanding from us. And rounding out this slide, our communications, industrial and pipeline services. As you can see here, we got steady growth around these key markets as well and a lot of -- a potential for upside, especially from our pipeline service business as the growing demand for infrastructure to deliver that gas keeps increasing to deliver that gas to gas generation and LNG facilities. So stepping away for this for a minute. Here's what I want you to take away from this slide. Again, don't overindex on any one line item because of the flexibility we have to move across those markets. What I do want you to see, though, is that we have great growth prospects across all of our markets. We have multiple ways to succeed here because of the end markets we're in and because of the total solutions approach that we've talked about so far. This ability, we believe, because of what we have set ourselves up, as Duke said, 5 years ago, we set ourselves up to be meet this moment. We believe we are well positioned to be able to capture a fast-growing market that didn't even exist 5 years ago. This is really what's underpinning a lot of our excitement that you're hearing today. So now turning to cash, right? It all comes to cash because cash, we believe very strongly is how we will compound value over the next 5 years. And what we do with that cash. Our cash generation strength and what we do with that cash is how we're going to compound value over the next 5 years. And I'm happy to say that our free cash flow adjusted EBITDA as a percentage continues to go up, continues to improve as our working capital has continued to improve. And we see that trend continuing over the next 5 years. As the demand for our integrated solutions and supply chain solutions increases. So now sitting here today, we expect that we will be able to achieve a 55% to 60% conversion ratio by 2030. Just as a reminder, as I talked about in the fourth quarter call, there will be some pressure on our free cash flow conversion given the manufacturing expansion that we will be doing. But by end of -- by the end of 2030, we do see the ability to get to that 55% to 60% range and even better. So what that means is we expect to generate $10 billion to $12 billion of free cash flow in this time period. And if you look at the middle of that chart, you can see what that means, that $10 billion to $12 billion. You see our bank leverage ratio coming down, trending downwards as the EBITDA grows as the debt matures and as we generate more cash and the cash builds. Having said that, we are going to maintain an investment-grade balance sheet, and you can see how we're going to be able to do so. And we're targeting a leverage ratio of about 1.5x to 2x. Now this is -- let me just pause here for a second. We're targeting a leverage ratio of 1.5 to 2x, and we are going to maintain an investment-grade balance sheet. But we don't feel any pressure to force ourselves to stay in those leverage ratios. So what I mean by that is if we've got really great capital opportunities in front of us, and we need to lean into it. Like we did with Blattner like we did with Cupertino, we may stretch above that 1.5, 2x. But if those companies, if we've done those right, and we're buying companies that drive accretive returns very quickly, we will have the ability to rapidly delever post acquisition. That's our approach to how we think about these opportunities that may come in front of us and may push us a little bit above that leverage ratio. But on the flip side, as I talked about earlier, we are patient deployers of capital. We're not buying capacity. We're not buying growth. We're not buying earnings for earnings sake. We are buying companies that meet our strategic goals, that have -- that meet that and adhere to that core philosophy that Duke talked about. That is very critical to how we deploy capital. And so in this 5-year period, if, for example, we don't have enough opportunities to keep ourselves in that 1.5x. That's fine. We'll be patient, and we'll wait until those opportunities are in front of us to be able to execute on them. We are going to measure our capital deployment strategy the same way we've done for the last 10 years. What I'm about to tell you is going to come to no surprise to those of you who followed Quanta over the last 10 years because we believe it's been critical to our success. We're going to continue investing in our organic growth, in our people, in our equipment, in our capabilities. We're going to continue to find really great family businesses that can join the Quanta family and continue to drive accretive returns for our shareholders. And then we'll continue to return excess capital to our shareholders in the form of dividends and opportunistically repurchase shares. We are going to measure our ability to buy a great company versus buying our shares back and whatever drives a higher return is how we'll move forward. So one other thing I just want to point out on this slide and just kind of giving you the context of our capital deployment strategy. In the last 4 years, we've generated $5 billion of free cash flow, and we bought $6 billion worth of companies. And in the last 10 years, we've generated $7 billion of free cash flow and have bought $10 billion of great family businesses in that time period, while still increasing returns, while still keeping an investment-grade balance sheet while still returning capital to our shareholders. That's the power we believe of our capital deployment strategy and our ability to continue compounding value. And just so for those of you who are -- this is very important, right, I want you to realize our dividend strategy, we're going to continue to grow our dividend. We continue to see double-digit dividend growth. We are not -- our dividend growth -- our dividend capital strategy is not a substitute to our investment strategy. It's a complement to it. So we are committed to continue growing our dividends. So bringing this back to what we believe is the most important metric, return on capital. This is what we think we are judged by, and this is what we expect our investors to judge us but are we really creating the value that we say we're going to be able to create. So again, another slide I'm proud of, right? Because, again, this is the testament of whether what we're saying it really makes sense for you all as investors. Over the last 5 years, we've expanded ROIC significantly. And we believe we're going to continue to be able to expand return on investment of capital. And we were able to expand that ROIC even while investing over $6 billion of capital and grade acquisitions. So we know how to do this. We know how to do this while driving accretive returns. We know how to do this moving forward, and you can expect us to continue having that same philosophy. And as such, we're comfortable standing in front of you saying we're going to continue to expand return on invested capital. we now expect a 12% to 15% by the end of 2030. So now let's bring it down all the way to what our expectations are for adjusted EPS. Like Duke said, this is probably what you've been waiting for, right? So walking you through this slide. Looking at where we are, right? Our expectations are that we will be able to grow 15% to 20% on compound annual growth rate against the $10.75 we achieved in 2025. So now we're targeting an EPS or adjusted EPS range of $21.60 to $26.75. Note, we have intentionally not given you an organic adjusted EPS growth and organic EPS targets. And we've done that because we believe sitting here that we have the ability to deploy capital and our 15% to 20% target reflects that belief that we will be able to deploy capital and still achieve that 15% to 20% compound annual growth rate. Now having said that, the revenue -- organic revenue targets I gave you as well as the margin expansion. We are comfortable in saying that we will be able to achieve a double-digit EPS growth organically. But we want you to focus on this 15% to 20% because, again, when we sit here today, we are going to be deploying capital, and we believe that's a better view of understanding who we are as a company. So to 20% as a target. But if the active market opportunities that we're really working on, the 765 transmission build-out, the gas generation solutions, those large load solutions that Duke described, if they all accelerate and we operate at the high end of our targets, we see the ability to grow more than 20%. And that's what you're seeing in that full stack on the right. If those things come together and we execute on the high end of what we've targeted, we should see an adjusted EPS CAGR of north of 20%. And by the way, these are not pie in the sky opportunities, right? As Duke said, we are actively working on. We are embedded with our customers in making every 1 of these market opportunities, a reality as fast as possible. if we're successful with our customers, we should be able to see that growth coming ahead. So in conclusion, right, wrapping it all up here on 1 slide. Here's what we are telling our investors. Here we're signing up with our investors what we can achieve by 2030. 7% to 10% organic CAGR -- organic revenue CAGR, $44 billion to $49 billion. Adjusted EBITDA margins of 10% to 11%, which at the midpoint at the high end is margin expansion from our 2016 guidance. And adjusted EPS with capital deployment of $21.60 to $26.75 a 15% to 20% CAGR of our 25 results and a return on invested capital of 12% to 15%. Our range range of the $21.60 to $26.75. That's really reflecting our views of how fast that organic growth can come in and the pace of our capital deployment and reflects our views on the multiple ways we have to succeed as I described in that revenue graph. So that was the conclusion on the numbers, but I hope from my presentation, you walk away with 4 key takeaways. One, like we've had a successful track record as I've shown you, we believe very firmly, the credibility matters, and we owe it to you all to continue to be credible. And we hope our track record proves it, but we also are going to do it going forward. Our 25% CAGR that we did over the last 10 years we believe we have the ability to continue compounding value over the next 5 to 10 years. The markets have never been better. The demand for our craft labor, the demand for our integrated solutions has never been stronger and giving us the confidence that's underpinning the growth, the numbers that I've laid in front of you all. Our workforce versatility, we keep bringing this up. not to just bore you with it, but it's really important you understand that. That workforce versatility is derisk this company. It gives us the ability to expand scope, do more for our customers and be flexible as markets can change. That's why we talk so much about it. That's why we built a portfolio of so many capabilities. It not only allows us to grow the top line, but more importantly, it preserves that bottom line and allows us to increase our returns on invested capital. It's a very critical strategy of who we are and why we do it. And then lastly, cash. Everything we're talking about at the end of the day, if we're not delivering the cash, it's not important, right? It doesn't -- it's not meaningful. Everything we're seeing here today, we believe, is going to continue allowing us to grow our cash generation strength. And what we do with that capital is very important. You have to judge us on whether you believe this management team, those people you meet in the room, do they have the ability to continue investing your capital smartly, driving accretive returns and returning value for the shareholders. Just stepping back for a second, just stepping back for a second. It took us 28 years to earn a $10.75 adjusted EPS, 28 years. What you're hearing today for me to Carl, this team, we are saying that we have the conviction that we can double that over the next 5 years. that's what we mean when we say we're compounding value and why we believe the next 5 years, we're going to continue to be able to do so and why we think we can do that well beyond that. So I'm going to stop there and turn it back to Duke.

All right. Thanks, Jayshree. That's Kids cartoon. So I feel like that. I'm going to wrap this thing up here, some sort of some takeaways from us. Look, we've taken a prudent approach to guidance, like we always have. I'm wanting to know that. From my standpoint, we've done this multiple times. 2x, sitting in Israel. This is. [indiscernible]. It's alway been prudent. Our guidance is prudent. So we're going to grow the company 15% to 20% plus. There's a lot of ways we can get to the plus, I like our [indiscernible]. We have a young team. I'm super proud of. I'm super proud of what they've done. They get after it every day. I want to be here with them through the plan. More importantly, we're building Quanta for decades beyond. And the next time that we come up, you'll see the same thing on how we've done on a forward basis. So -- and saying that, as we wrap this up and wrapped it up, which we're going to take some Q&A. I just want you to know that we have conviction to the plan that we couldn't be more excited about what we're going to do in the future to help our customers to collaborate and not only be a part of the market that create markets. I think it's really important because we're creating some markets here. We're creating our own business in many ways and many things that we do. So you'll see us do that through. In wrapping up, I know my mission. I'm going to turn it back over to Kip. So thank you.

Great. Thanks, Duke. So we're going to bring the team, Jayshree, Karl, to the stage for some Q&A. We'll have a couple of mics around the room, it should be. Well, okay. [Operator Instructions]And then for those on the webcast, there is the opportunity you can kind of message or type in a question. And so I'll try to scan through some of those and incorporate that into the questions as well. So the mics are coming just bear with us just for 1 minute. Okay. And please say your name and the company that you're with. [indiscernible], maybe hit Adam right here?

Adam Thalhimer with Thompson, Davis. I'm curious about the full stack scenario for 2030. What will be the organic revenue growth embedded in that target.

All right. So yes, as we talked about, right, in the 5-year targets, we're targeting a 7% to 10% organic growth rate. So you can expect that the full stack that we should be at the high end or higher in our organic targets. And if we are able to stack everyone what we're talking about in that orange bar.

I mean the full stack would be the high end of the range. I mean it's hard to predict where that would be, but you would expect it to be in the high of the range if you full stock it and roll it up. I mean I do think when you look at that, you also have to say what's the timing? Is the timing on all the kind of the 765 build there is our ability to take advantage of some of the strategies? How do we make acquisitions, how much expansion do we get off the acquisitions and the timing thereof. So there's a lot of things to say when you're out 5 years and you get a full stack. So it's not if, it's when in many cases. But look, I -- we've done 20-plus percent in the past, and you would expect that at the high end of the range is for the...

EPS, adjusted EPS.

Just EPS, sorry, yes. Anyways, we've done both. But when you think through it, I do think that organic number has to be at that somewhat at the higher end of the range.

Yes. I mean we have opportunities, right, definitely performing at that high end. But if all that stack comes in, yes, there's opportunities to be at the high end or greater.

Okay. Great. Maybe Joe right next to Adam. .

Joe Osha from Guggenheim Partners. Duke, you talked a lot about how capital deployment and business development. It's a long process, right? You didn't just show up and buy a company, which is part of why the multiples have stayed at 9% to 10%. But even so people can read the newspaper, right? So I'm wondering when you think about capital deployment, how much upward pressure is there on multiples for private companies right now? How much of a challenge is that?

Yes. Look, I think we do a great job with the way we use equity to attract talent as well as acquisitions. And most acquisitions participate in equity and they get the kind of returns that we've been able to deliver as well. So I think it's a double-edged sword to some degree, yes, you can see that, but you can also see what we've done. And really, when you look at what's out there, we believe we can deploy capital at the framework that's there today with great businesses that believe in a bigger what I could say, it's bigger than just a multiple or a turn or 2 of multiple. So I don't see I see our ability to continue to acquire great companies at this kind of framework. It will depend whether it's an engineering company or a heavy equipment company. But for the most part, I mean, we all sell for a multiple. We sold our business for 5 I don't feel bad about it at all. Like I love my job. I love what I'm doing. And there's others in the room that were less or more. But we've created value through equity, and we've also -- we pushed about between 7% to people with equity as well a year. And so it allows them to feel much like an ESOP in many ways, probably the largest you saw people ever see. But and then try to buy stock back as we see opportunities along the way to keep the shareholder at parity. So I don't see an issue for us to be able to deploy capital meaningfully into things. There's no I don't -- it's not imminent to us. I came up here ago, we're going to play it because I don't think it's right. I just see the ability for us to do so.

Andy?

Andy Kaplowitz, Citigroup. So NiSource, you announced it a little while ago now. And I would imagine there are other utilities that are going to watch and see sort of how this is going. So like your numbers do $1 billion per year or something like that, again, rough numbers, like how many more of these kind of things are out there like and -- are you making progress towards the is like, oh, this is really efficient. Let's do it like this because I'm sure it's efficient for you guys, too.

Yes. Look, it's not just utilities. I mean midsized utilities, yes. I mean we're talking to bunch of midsized utilities around different things. They're not all that big. Some of them are not contemplating generation, but some of them are could be renewables. And it can be all forms of generation. So it's also on the other side of that with technology, trying to solve that solution of the same generation as well as the line, the interconnections and the other side. So it's not just utilities, it's also technology, co-locators, hyperscalers as well as our traditional utility customers. So also add to that, and it's a meaningful number. look, I'm not trying to get everyone leathered up here to say, look, it's a big number for us. Now we've got to convert them. We got to do great things. But these numbers are big and their opportunities are 3-, 5-year top opportunities at elongate some. But there's not a week that goes by something doesn't come to us to say, "Okay, can we do this? What does it look like? How do we provide solution to this client and they're meaningful.

Great. Steve real quick up here. [indiscernible].

Steve Fisher, Duke, you said you wanted to grow the revenue per head count over time. I'm wondering how we should think about the growth rate in the craft labor force relative to that 7% to 10% organic growth rate. Presumably, you have some embedded efficiencies in there from the integrated modular solutions from the AI initiatives. Can you just maybe burn us from head count growth to that 7% to 10%?

Yes. I mean in order to get to the numbers you see, I think you need to grow 7,000 to 10,000 a year, at least, craft non-craft just in general, you're going to have to grow that. You'll get some efficiencies through AI. You'll get some efficiencies through premanufacturing and manufacturing capabilities that we have but you're still going to need that core to be growing 7,000 to 10,000 here, same almost the same as what we said as a percentage of organic growth. But it doesn't equate, by the way, but I do believe that's the headcount. There'll be some acquisitions in those numbers as well. .

I do want to jump in, Steve. I don't want you guys to take that as a modeling exercise. It's really important. Duke talked about it. It's a trend, and we're working hard as we are expanding our scope and being -- becoming much more efficient, as Karl described, with our labor and our capabilities. But the right way to think about our business going forward are the metrics that I had out subsequently around our CAGRs and our expansion possibilities around margins. .

Maybe, Mark, in front.

Mark Bianchi with TD Cowen. You had this slide with the pie chart for the craft lead spend on a data center. And I'm curious, which of those categories are you extremely active in right now? And where do you think maybe there's room to improve or increase the amount of business that you're doing there? Does that involve M&A?

Yes. Look, I think when you look at it right now, as far as the electric piece inside the data center would be Coppertone the costs that we have acquired. That's a big piece of it. our mechanical business. We're early. DSI was kind of a platform acquisition we made last year. So we'll continue to expand where we can against that. But when you say that, I mean, those 2 places, you're electric and your mechanical plumbing. So those are the MEP for sure. Then you look at, okay, well, the high-voltage side internally to the center of the load center, that makes -- we're there as well. The interconnection is the utility piece. It's not on there and the generation that's not on there, certainly is in our scope. It's left today. I think that comes up. But [indiscernible] is the -- where we're leaning into the most and what we're most. I would tell you, have the platform companies to build. When you think about the balance of plant, we're building those capabilities. We have those capabilities today, where we could take full scope, build it out. That wouldn't concern me at all to go build 1 tomorrow, but I do think that we have to be prudent about it. It has to be the right case and look, the GC model that's there today has been there a long time, and we work for a lot of them. So I would say, look, if someone asks us to go build a balance of plant data center tomorrow, we can do it. No question. The thing is that, that has not been something that we've been doing before probably last year that we started building a few. We're on some today, and we built those capabilities internally to do so. It's not that big of a piece of it, but it does allow us to understand where the customer is going to be connected to the customer. There's other models that we can work with GCs where we're connected to that make a lot of sense for us. We're really just trying to drive the cost down for the ultimate customer and by our models, but the MEPs where we're most concentrated [indiscernible] piece

Chad Albert, Bernstein. So a question for you guys on your integrated fabrication solutions. What are your projects use those capabilities today? Where is that going? What's driving the pace of deployment. And then as you go back to your margin bridge, how much does that generate?

Yes. Look, I think when you look at that, we probably have 4 million to 5 million square feet, something like that. it's across all segments. The majority would be going towards your data center, your load center builds. And then you also have a bunch of transformer capacity in there where you're doing breakers and control rooms, many, many other things that we do. So it's a broad-based build that continues to build out. It's early for us in the mechanical side. . So that's a big piece of it as well. So that mechanical side will continue to grow. And then we're seeing some, what I would consider joint designs, things like that, that we have the capabilities to do. If you go back in time, Cupertino has been that almost a decade well before anyone else was probably too early, Tom, would say. But that's okay because we have those capabilities now that really, really progresses forward. And Really, what we're doing there is expanding our ability to add labor. It's labor. So we can take in a confined space, build quicker and then go to the field with that and finish up. So you just really what you do is you help yourself live. So you can do that all across the company. We continue to see where AI plays a role in that, and we get smarter and smarter, we'll be able to do more and more of it, Chad. And I do think it gives you some margin expansion, albeit small, and the answer to the question earlier about acquisitions, yes, I mean, these are the type of things that we look at when we make acquisitions to enhance that strategy quicker. So we're looking at all ways to do that. So the capabilities that you discussed that allow some margin expansion. Certainly, we would lean into those if we found the right companies.

Nick.

Nick Amicucci with Evercore ISI. Duke, I just wanted to try and touch upon too, with the transformer manufacturing capacity expansion, too, it kind of lines up with -- around the time line, we're starting to see the kind of conversion to -- or the new deployments of 800-volt DC. Is there any capability, any kind of thought around entering that type of market. Now I know you had kind of said most things are going to be grid tied and so this would be more behind the meter, but just thoughts around that.

I mean look, we're working with all of our customers on designs. And then there's a lot of opportunities for us, a customer asking us to build capacity or build future capacity. So anything that we're building is against future capacity in our mind. And so we would need to see that. I do -- yes, we're getting asked to do all kinds of things around that. And I do think eventually see us expand into some of those things. We're not a manufacturer. I mean every one of those things have Jayshree, she was on [indiscernible] yesterday because I think like if you just take a transformer and you think about what's possible, so let me just say what's possible, which I think is much probably bigger than this, it's at least 5x if we build it. So if we're going to build a manufacturer, we want to build the outside of it, and we want to really, really get to market quicker, get to set from the technologies asking us to do, and it allows us to expand into building the total solution. That total solution is more important to us than just the manufacturer. But anything you see us doing it stands alone economically, but what we can do is significant from a synergy standpoint. So yes to answer your question a long way.

[indiscernible] Justin, here, please.

Justin Hauke at Robert W. Baird. I just wanted to ask about the M&A strategy because the last several years, it seems like more of them have been about expanding the vertical integration strategy you guys have done, but you're emphasizing the craft labor and the need to grow that. So I guess from here, do you have kind of all the pieces that you want from a manufacturing capacity that there'll be more organic expansions? Or are there other areas that you want to expand and that you're not in right now.

I mean we buy great companies. If we can build it organically fast enough, we will, if we see great family businesses or businesses that fit the model to the mold that we're trying to do and then listening to our customers on the backside of that with what we believe is the business behind it, yes, we'll lean into them. We want this to be where people are fighting for capital on all sides of the business. We have so much opportunity, and then we can decide. I mean the beauty of a portfolio that we have today, it allows so many ways that we can deploy it. So we'll deploy it, deploy the capital that we have and stay prudent to our balance sheet along the way to what acquisition make the most sense to the shareholder. I mean, if that provides returns because of the strategy that we have, we'll lean into that side of it. But I do think it gives us flexibility on the manufacturing side to create those would I consider unique positions in the marketplace where you have such as the straight today or whatever it may be, there's always something coming from overseas, it's delayed. If we can do it in North America, like we've done now, I like what we've done on our vertical supply chain, and we would look for opportunities there.

Liam?

Karl, you mentioned in your -- I'm sorry, Liam Burke, B. Riley Securities. Carl, you mentioned in your presentation that you have a great relationship with the unions -- is there any conflict between union labor and being able to cross train your craft force?

Good question. We certainly are in front, collaborating with this, especially a lot of these projects and programs have a multi-trade jurisdictional restriction with them. for us, our customers are coming to us early and helping us asking us to help solve that out in front of that. This will -- geographically, there's constraints, the IBW Launa UAS. As we try to bring them together, we believe we can stay in front of that and solve that, and that's really been our approach is to be in front with them versus being behind it. Yes. I would say just from my standpoint on the unions of family regeneration performing a 50-year pens in IBW. And those relationships are deep, but the company is 50-50 union, nonunion. And so we're able to really perform and have a great relationship to say the customer is asking us to do something. We either don't have the labor geographically, it doesn't make sense. But we don't back up from that. We work together with them to create. We're probably the -- I would say, easily the largest we create more jobs for unions than anyone else. So we're creating jobs for them daily, while growing other businesses. And sometimes we'll have nonunion crossover to union. And so I think it's just -- it's a full-scale way to look at labor across all labor unions as well as nonunion.

Kevin Wilson, Truist Securities. In the traditional power gen market, whether that be gas or potentially nuclear, do you think you need to do acquisitions to strengthen your position, manage risk or be able to grow at the market, or will you continue to use the joint venture approach like with [indiscernible] to approach that market?

Yes. I mean I think it was a way for us to enter on the combined cycle side with [indiscernible] and the JV. I think it's all of the above, beyond. Like I think you'll see acquisitions against some of it. I think we'll do some JVs. The simple cycles are a little different. They're not as complicated when you try to sync them up. So we have some simple cycles that we can do. And as we evolve over this 5-year plan, I mean, it's a market we're in a is in the room leading it. And I think when we think through it, I'll just throw all the questions on you have a good. So I think when we think through it, yes, I mean, we want to be able to be full scale in it. But I will tell you, in my time frame, I've seen many companies that thought they were really good at this. have big issues and building combined cycles, and I'm unwilling to take those risks of the past. Simple. I mean if a customer wants to go with this and they want certainty, I think we can build them every bit as good as bidding them, but for the same man, but we don't -- we can work together, we can define risk. We can do a lot of things. I just don't think the company needs to take that risk of a combined cycle as it stands today. We'll look for acquisitions. We'll look for ways to enhance that business. But I would say this when we look at any of these acquisitions, it's never just what you see, after. You like when you lean into something it's not just about data centers. In fact, if it was just data centers, we're not going to look at because I don't -- I'm not going to buy on a hockey stick. I'm not spending your money right. Why would I do that? Like -- so we're really -- I'm really concerned with these hockey stick companies that are out there. There's just not something we're going to lean into. It's not. We won't try and true 50-year-old companies that have longevity against our strategies and mechanical could cross all mechanical plumbing across from a generation station. They can build all kinds of different things besides data centers. So if we see a great heavy mechanical company that it can do multiple things, yes, we'll lean into them, but it's not just going to be 1 like generation or data is going to be all of the above approach and a great company with a great management team.

Maheep.

Maheep Mandloi from Mizuho. Maybe just a follow-up on that. You talked about the risk on CCGTs and maybe new technologies here. As you kind of look for the revenue growth or EPS growth about the target for these new segments, do you anticipate a change in the revenue recognition or the sort of the contract structures from cost plus to fixed cost? Because I think most of the private peers are on the fixed cost for CCGTs, for example, right?

Yes, I assume on fixed cost, but the ones I'm looking at. But I would just say, in general, if it goes to fixed cost and the people that build them, they don't have the labor to build them. So I'm not sure how they're going to do that. And you're going to get -- if you build 70 at once, everybody is building them, who's going to build the data centers on the backside of that. They're going to do that too. because the people that -- if you look at Bechtel, for example, they build them, they don't have labor. [indiscernible] or they use someone else or they try to go a local hiring hall to do that. They're not there. If someone's going to take labor risk in this market to build a CGT, I mean let them go for it. It's great. We got plenty of opportunity we'll do something else. We've got 4 ways to stock it, a huge portfolio. That's where we're going. We're not going to take a risk on the CGT. I've seen it, I've watched it. I'm not -- we're not going back. I'm not we're not doing that, just not. You can thank me later.

Brian [indiscernible] with Jefferies. Just a follow-up on the M&A question. When you look at your key 6 markets, where are you seeing the most competition from peers and maybe prime firms that are looking to also expand and leverage their platforms to compound growth. And are there any financial criteria or guardrails we should be aware of as it relates to Quanta.

I mean we can bond anything we can think of. So I'm not worried about that part of it. I'll just say when I think about competition part of that, it depends, but when I look at it, it's more about where we can scale versus competition. So in some places, someone may be better for job 1, and we may be better for 2 through 10. So you'll see some of that. Like I said in the prepared remarks, I mean, we're negotiating 75% kind of what we do. We may firm them up. We may do some things, but the negotiations are around 75%. So we're only really competing on 25% of the business. And I think when you look at the others, they're probably competing on the 75% of the business. So that's how different it is. And I think for us, it's really how do we work with the customer, how do we provide prudency on the regulated side while we're doing that. And yes, there's some low competition but not at scale.

And the financial guardrails, I mean, it's no different from the way we run our business, right, the way we look at acquisitions, the way we invest in organic growth, the types of work we will enter into, it's very much focused on is it going to drive those returns over the long run. That's what we're focused on. We're not focused on some short-term opportunity that may be for an instant, but then it creates some problems down the road that either we worked with the wrong customer. We have trouble collecting our cash or it's not the right risk profile. That's not what we're focused on. We're focused very much on a long duration, durable story.

And I think like -- look, if you look at telecom, we don't have scale there in places. I mean we're the other side of that? So I mean, that's a place where I would tell you like there's plenty of competition in everywhere out there. But we don't have scale and so that's where it sits. Large pipe, same thing. I mean, we're doing great things there. I think there's a lot of opportunity in it. I do -- but we haven't tried to scale it. We haven't invested in it and -- but the opportunities are there, and we'll grow that business. So there's plenty of competition there.

Questions? Go ahead, Alex.

Alex Rygiel, Texas Capital. Could we come back to the 80 basis points of adjusted EBITDA margin expansion. Can you talk about some of the big primary buckets where you think that will develop from and then highlight any headwinds that maybe you didn't mention yet?

Yes. No. I mean I think we -- I talked about the 3 areas in which we are -- we see the opportunities to expand margin, right? It's performance improvements we have to own up to it. We haven't performed as well as we'd like in certain parts of our operations. We absolutely do see the ability to continue improving in those. We've been -- we feel good about where we're heading in that direction. Our Canadian operations. The market is getting stronger. We've done a really good job of rightsizing that part of our business to be ready for this opportunity set that's coming in front of us. Our legacy underground business, we see the ability to continue improving margins there, again, improving our performances. And then the growth of the fabrication and MEP capabilities, right, depending on how quickly that can grow, depending on what our customers want, there is ability to get margin expansion from that. But again, to Duke's point, it's still a relatively small portion of our overall revenue. It is the fastest-growing. But if that has the ability to grow even faster, you're going to see more margin expansion from that. And then the supply chain solutions that we've developed, our vertical supply chain, like Duke said, we're in the top 5 purchaser of high-voltage equipment. That gives us a lot of strength in buying power. And we believe we're going to be able to continue to use that strength very well and continue to expand those margins. I would say those are the 3 big areas that allow us to get closer to that 80 basis points and hopefully even more.

Yes. I would say as well as what Jayshree said, the 2 platform companies that are inside that business today from last year, which would be DSI and our Civil business, but we are [indiscernible], sorry. There's another company in [indiscernible]. So [indiscernible] in there. I think in general, those 2 are performing very nicely, giving us a lot of flexibility on multiple builds that have a lot of synergies in there. It gives us a lot of conviction on moving those underground margins up into the ranges that Jayshree talked about. .

Banesh Soma from Cantor. Two questions. One, do perhaps this is an easy one for you. What percentage of the employee base is cross-trained right now? And is that a target that you have in mind?

Yes. I mean we don't really keep track of that -- like in underground, they can really cross almost all segments. So there's an underground business. it's significant. Where I would tell you where you're getting -- where you struggle is like a welder being alignment is probably not going to happen, a welder will be a welder. . Where it does happen is you can have like high-voltage come down into live. So we have a lot of cross training in some of those fields. It's more difficult to go from global ties in the high voltage just because of the complexity of some of the things that you need to do there. But it's not to say that we're not -- what I would tell you even more so that's important is when people come into the pre-apprenticeships where you would not even have opportunities for 50%. Now you can say, oh, the first thing you do with day 1 is you climb, Usually, it's 100 foot. And if you're scared, probably not your deal. And so then you go, "Hey, how about inside electric? How about mechanical. And we can provide way more opportunities with our pre-apprenticeships. And what we've done, as Carl said, with this training. So we can really cross-train early there. But not to say that we're not doing that. I would say, if I just had to guess, I'm a pure gas, it's probably 30%, Carl.

I think it's important you got to realize our customers, we're in front of so many things and so many negotiations, even not only with the unions to that question, but into this regard, we're planning years in advance of what this looks like. So we can ramp up the training programs, the scale to the geographic areas that our customers are being asked to hit on these points from Duke. But also, we'll go out with the different operating units in those areas, regions, however it looks, or if you take many builds that start to stack on top of each other, we can change our linear approach to how we're building some of these projects, whether it's in the buildings out of the buildings, many different ways to go about it. .

Okay. And then just on leverage. Jayshree, you mentioned 1.5 to 2x. What's sort of the peak leverage you would get to for an acquisition that you would make?

I think a good example is what we did when we acquired Blattner. We got to around -- I have the number up there, but it's like 2.5 to 7 in that range. You can see us pushing closer to 3. If it's a company that we believe very firmly and that we can get behind, and also the ability to rapidly delever after that, right? That's very critical and our willingness to go beyond that 2x.

Yes. And is worth clarifying what we mean by fungibility of labor, so let's just take Indiana. If you're building -- if you're an electrician, tournament electrician, you can be on a power plant, you can be on the battery, you can be on solar. You can be on control the station in the stations. You can be in the data center. . So if you can see all the markets and the fungibility of 1 or attrition, that would be apprentices, everyone around there that they can move theirselves around. Just to give you some example of how that -- what that looks like.

[indiscernible] from Goldman Sachs. Jayshree, maybe this a question for you on the active market opportunities that you highlighted on your EPS ladeck. I just want to make sure I understand properly. You said that that's not included in the guidance that you're providing there, but it's in the full stack. Is that going to be like the 765 kV lines, I would have imagined it's closer to the organic side of the equation versus inorganic. Can you help us understand where that lands?

Well, I think you should look at this as we have a multiple way getting to our targets and opportunities to grow beyond that, right? And we're talking about these active market opportunities that you've heard about that very closely involved with our customers. . The timing of those things can be still a little bit up in the air, and we're working very closely with our customers, as I was saying, as Duke was saying, to accelerate those things. But we want to take into account, we want to give you guys guidance around these larger, more exciting opportunities, but have some things that have to get through the regulatory process or you got to get through the permitting, whatever can happen when you're building large energy infrastructure. So sure, there -- I would think about it in several ways, right? The -- those market opportunities, if they all come in together, allows us the ability to stack beyond what we've shown in the targets, but it also allows you to think about our targets as a way to sort of derisk that range we're giving. I would look at it in both ways. But the way we sit here today, given the visibility we have with our target growth aspects, we believe that these are stacking opportunities, but allows us to derisk our targets. If for whatever reasons, projects move. I mean we've talked about this. We're in the infrastructure business. We're super excited about where we're going. We still have the abilities for margin expansion, but we're much more focused on that bottom line. And there may be times when we will give up some margin to ensure that we have that long-term visibility and durable earnings profile. And we recognize that things can happen, projects can move we keep ourselves an efficiency rate of around 80%. We plan for that as maybe a better way of saying that because things can happen. Things just do -- you're going to have a tariff situation, you've got a political situation, you're going to have a permitting situation, but we believe we've built a portfolio where we can manage through those cycles and give you the comfort of what we're telling you around our targets with opportunities for upside.

And I wouldn't -- like if you think about $765, if you hear about 10 and 8 go, it just means the other 2 500 lines that have a high degree of likelihood of building as well. So like I don't get to kind of AMR. It's a way, I believe we can stock. There's multiple ways, as Jayshree said. And so just to give you some context. .

Chris?

Chris Sung over at Wolfe Research. I wanted to just ask about the CAGR for key markets on the power generation and energy. Like how many nice horse like generation projects is embedded in that 7.5% to 12.5% growth CAGR?

Yes. I mean so we've talked about what we've announced publicly with NiSource. We have that -- that is baked into our projections. But as Duke talked about, there's opportunities for more. And if those come to fruition, that will just stack on top. Okay. Any other questions? I should say when they come to fruition.

I would say like if it's -- we have multiple opportunities there. If it's not an ice source, it will be someone else. Like I don't -- we used some examples today. And is that predicated on those examples, what happens if 1 doesn't happen? When we go to the next one. I still stand by what you're seeing with or without NiSource. Does that answer your question? .

Philip Shen with ROTH Capital Partners. There are a number of major banks right now that are on pause or partially or in full on the Section 48 EITC. So for your renewables business, this is important a lot of the volume we're seeing for 2026 is the Section 48 ITC. And the 48s really are not going to start construction until 2026 -- sorry, 2027 to 2028, and the uncertainty is really driven by this guidance delay. So I know you guys have Tier 1 customers, they can pivot to other sources of capital. The reality is, though, a lot of supply is going away as it relates to tax equity or at least on pause. So just curious, how are you guys dealing with the situation? And how do you adjust, if at all, are you even seeing it yet?

Yes. No, yes, we're well aware of those tariff complexities. I will tell you that we are working with customers who are really getting in front of this. So as we sit here today, we do not see any concerns around what I've shown you is around our growth profile around the power generation and storage side. We continue to see a lot of activity with those customers. I agree with you that, that is out there and that is a risk, but it's no different from the risks. It's a different type of risk. But again, if you work with the right customers who know about these things and get ahead of it, we feel it gives us the comfort of giving you the numbers that we've set in front of you. So right now, as I see it, we still see good growth opportunities in our renewables portfolio.

And normally, when you look at what we're giving kind of -- if we give you a broad-based guidance like this, you're going to expect about 80% of it to be right. Like there's going to be 20% that moves to the rider, it fluctuates a little bit here or there. One thing may look different. The portfolio of Quanta gives us that flexibility to work through that. If we get 90% right, those numbers are higher, like it just start. So like the portfolio and how we've approached it in a prudent manner, it's like 80% get to it, right? So you're going to have some things that delay or all kinds of things along the way. We expect that .

Did you have a question? I'll hand [indiscernible]. Any other questions?. Brian?

Brian Brophy, Stifel. I appreciate you guys doing this. You talked a lot about providing a solution. Presumably, that comes with accelerating schedules for the customer, creating a lot of certainty for the customer. When you think about pricing and the ability to command pricing, presumably that's something a customer would be willing to pay for, particularly in this environment, so when you're thinking about driving pricing versus kind of revenue certainty and getting visibility, how do you think about that trade-off?

Yes. I mean I think there's some -- on our regulated side of the business, I wouldn't expect anything more than what you've seen. Like it's just we're working with prudency, we're working with regulators. We already have an issue on what's the cost of rate payer. So like that we have to actually work with them to show them a better total cost than they would have got independently. If we can do that and create margin headroom, yes, sure. But the total cost of ratepayer with us doing a solution to go down, just it should. And we can do that in a collaborative manner with the client and we're doing it in many cases. So in saying that on the other side of technology, if there's something there that they want faster or we have the flexibility or it's going to cost more or there's risk, it's really pricing risk in these things. So as we price risk, if there's risk to it, yes, you can expect more margins. I still say -- it's a multi-decade compounding of earnings story with margin improvements along the way that are kind of what we've laid out in the framework. That's still how we look at the company. There is opportunities.

Okay. Any other questions? Okay. Great. So for those in the room, we've got kind of an informal lunch outside. Quanta management team will be there. So you can circulate pick their brain, talk to them, as you will. Plenty of great swag out there, everybody come on.

I want to say from my standpoint and us and this management team keep it shown. They work extremely hard to make this safe for you. And I can only say they're world-class everybody as much as our execution capabilities in the field and the ladies, thank you for what you all do to as well. So thank you, and thanks for being here. .

And thanks to everybody on the webcast who joined us. We certainly appreciate it.