Margin Outlook
Q: Are you planning to rightsize the Electric Power business in Canada due to margin pressures?
A: Earl Austin explained that while there is some margin pressure in Canada, they believe they can maintain 10% to 10.5% margins in the Electric segment, with potential upside depending on storms and utilization. By combining the Renewable and Electric segments, they expect to achieve double-digit margins in the future.

Transmission Project Visibility
Q: How has visibility of high-voltage transmission projects improved?
A: Earl Austin stated that the nation's grid is underinvested in transmission, and significant investment is needed to support transitions like EV adoption and fuel switching. They are beginning larger projects and seeing more opportunities, increasing their confidence in executing and winning these projects.

Acquisitions in Industrial Solutions
Q: Can you discuss the recent acquisitions and your strategy in Industrial Solutions?
A: Earl Austin mentioned that they value the resilient industrial business in their UUI segment and see the Environmental Solutions they provide as enduring for decades. The acquisitions enhance their customer base with minimal overlap and offer synergies that will show up in their numbers.

Customer Outlook and Regulatory Impact
Q: How are customers thinking about projects amid potential regulatory changes?
A: Earl Austin observed that customers are not backing off projects; capital continues to grow with factors like data centers and load growth driving demand. While EV penetration may stall, the need to electrify and secure the system remains, and any shift from distribution to transmission does not affect their portfolio or guidance.

2024 Guidance and CapEx Increases
Q: How much of the increased utility CapEx is factored into your 2024 guidance?
A: Earl Austin indicated they've considered historical growth and prudently accounted for factors like storms and election years in their guidance. They see opportunities to grow 15%, driven by the tech push on AI and data centers requiring clean power, boosting confidence in transmission system capital spending.

SunZia Project Risks and Impact
Q: Can you address risks related to the SunZia project and quantify its impact?
A: Earl Austin is confident in their numbers and not concerned about risks with SunZia. The project is starting and will ramp throughout the year, contributing to their guidance moving into the second half, with expectations for more awards to continue the ramp.

Renewables Segment Growth and Margins
Q: How should we think about the 20% growth in the Renewables segment in 2024?
A: Earl Austin noted they've had phenomenal growth in Renewables in '22 and '23 and expect double-digit plus growth in '24 across legacy business and balance of plant. As wind projects like SunZia come in, the mix shift and utilization of assets will help margins improve, and they believe the top line in the Renewables segment will increase.

Portfolio Approach Benefits
Q: Where will the portfolio approach have the biggest impact in 2024?
A: Earl Austin expects the Distribution business to ramp up in the back half of '24, with Canada moving back into good markets. They've rightsized the business, and as the portfolio matures geographically and across service lines, optimization will increase margins, aiming for double-digit EBITDA margins across the board.

Resource Allocation and Labor Capacity
Q: How are you managing resource allocation amid high demand and potential labor constraints?
A: Earl Austin stated they are not near capacity and are not concerned with labor at this point. They have a good 5-year outlook, working closely with clients, and see technology demands like data centers increasing the need for robust grid infrastructure, which aligns with their services.