Good day, and welcome to the third quarter 2025 Comfort Systems USA Earnings Conference Call. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 11. To remove yourself from the queue, press star 11 again. As a reminder, this call may be recorded. I would like to turn the call over to Julie Schaaf, Chief Accounting Officer. Please go ahead.

Thanks, Michelle. Good morning. Welcome to Comfort Systems USA's third quarter 2025 earnings call. Our comments today, as well as our press releases, contain forward-looking statements within the meaning of the applicable securities laws and regulations. What we will say today is based upon the current plans and expectations of Comfort Systems USA. Those plans and expectations include risks and uncertainties that might cause actual future activities and results of our operations to be materially different from those set forth in our comments. You can read a detailed listing and commentary concerning our specific risk factors in our most recent Form 10-K and Form 10-Q, as well as in our press release covering these earnings. A slide presentation is provided as a companion to our remarks and is posted on the Investor Relations section of the company's website found at ComfortSystemsUSA.com. Joining me on the call today are Brian Lane, President and Chief Executive Officer, Trent McKenna, Chief Operating Officer, and Bill George, Chief Financial Officer. Brian will open our remarks.

Thanks, Julie. Good morning, and thank you for joining us on the call today. Our amazing teams across the country continue to deliver excellent results for our customers, and they have delivered financial results that far exceed even our recent outcomes. We earned $8.25 per share this quarter, which is double what we earned in the same quarter last year. Our mechanical business had a sharp increase in profitability, and our electrical segment was higher as well. We also had favorable developments in some late-stage projects that contributed to our great results. Construction is driving most of our results, but service revenue and profit also grew by double-digit percentages. Our bookings were strong, and our backlog at the end of the quarter grew to a new high of $9.4 billion. dollars as a result of exceptional demand for our services we achieved a second consecutive same store backlog increase of more than a billion despite significant third quarter burn we continue to book to book work with good margins and good working conditions for our valuable people we We entered the fourth quarter of 2025 with $3.7 billion more in backlog than last year at this time. I'm happy to announce the acquisition of two companies on October 1st, FZ Electrical, a contractor with strong industrial capabilities located in Grand Rapids, Michigan, and Meisner Electric, a contractor based in Boca Raton, Florida, with strong capabilities in healthcare and other attractive markets. We are thrilled to have these two companies doing the Comfort Systems USA family of companies, and we welcome them. Today, we increased our quarterly dividend by 20% to $0.60 per share, and we have actively purchased shares during 2025. With solid bookings and great demand, we expect continuing growth and strong results in 2025 and 2026. Trent will discuss our operations and outlook in a few minutes, and I will make closing comments after our Q&A, but first I will turn the call over to Bill to review our financial performance. Thanks, Brian.

Our third quarter results were remarkable in every way, with 33% same-store revenue growth, sharply higher margins, EPS up by over 100% from the prior year, and a surge of over $500 million in quarterly free cash flow. We achieved more than $400 million in quarterly EBITDA for the first time ever, and that's a 74% increase over the same quarter one year ago. So we'll start with revenue. Revenue for the third quarter of 2025 was $2.5 billion, an increase of $639 million, or 35%, compared to last year. Electric segment revenue grew by 71%, and mechanical revenue increased by 26%. Through nine months, same-store revenue increased 23%, and currently our best estimate is that fourth quarter same-store revenue will grow in the high-teen range as compared to the same quarter last year. For full year 2026, we expect same-store revenue growth to continue, most likely by a percentage in the low to mid-teens and weighed more heavily to the first half of the year. Gross profit was $608 million for the third quarter of 2025, $226 million higher than one year ago. Our gross profit percentage grew to a remarkable 24.8% this quarter, compared to 21.1% for the third quarter of 2024. Quarterly gross profit percentage in our mechanical segment increased significantly to 24.3% this year compared to 20.3% last year. Margins in our electrical segment also grew to 26.2% as compared to 23.9% in the third quarter of 2024. Great ongoing execution augmented by favorable developments in certain late-stage projects drove us to higher margins in both segments. Our largest single discrete project development was recognizing $16 million of previously deferred revenue on a project as a customer emerged from bankruptcy. We currently expect that 2026 profit margins are likely to continue in the strong ranges that we have achieved and averaged over recent quarters. SG&A expense for the quarter was $230 million, or 9.4% of revenue, compared to $180 million, or 9.9% of revenue in the third quarter of 2024. SG&A increased mainly from ongoing investments in people to support our higher activity levels. Our operating income increased by just over 86% from last year, from $203 million in the third quarter of 2024 to $379 million for the third quarter of 2025. Our operating income percentage surged to 15.5% this quarter from 11.2% in the prior year. Our year-to-date tax rate was 20.9%. Our effective tax rate in the first quarter was lower due to interest we received on a delayed refund relating to our 2022 federal tax return, we expect our tax rate to continue to be around 23% for the rest of 2025 and into 2026. After considering all these factors, net income for the third quarter of 2025 was $292 million, or $8.25 per share, as compared to net income for the third quarter of 2024 of $146 million or $4.09 per share. Thanks to great execution by our people, EBITDA increased by 74% to $414 million this quarter from a strong $238 million in the third quarter of 2024. Our trailing 12-month EBITDA is now $1.25 billion. Free cash flow for the third quarter of 2025 was 519 million and year-to-date our free cash flow is 632 million. We purchased additional shares this quarter and year-to-date we have spent around 125 million buying approximately 345,000 shares at an average price of $363.13 per share. At the end of September our net cash position was $725 million. As Brian mentioned, we acquired two fantastic companies on October 1st, Feinzestra and Meisner Electric. We funded approximately $170 million in purchase consideration in the first fourth quarter, and these acquisitions are expected to provide over $200 million in incremental annual revenue and $15 to $20 million of annual EBITDA. In August, we finalized an amendment to our senior credit facility that increased our borrowing capacity from $850 million to $1.1 billion on very favorable terms. The new maturity date is October 2030. Our balance sheet and cash flow have put us in a great position to continue to invest, grow, and reward our shareholders. That's all I've got. Trent?

Thanks, Bill. Well, I'm going to discuss our operations and outlooks. Our backlog at the end of the third quarter was a record $9.4 billion, a large sequential and large year-over-year increase. Since last year at this time, our backlog has increased by $3.7 billion, or 65 percent, and $3.5 billion of the increase was same store. on a sequential basis backlog increased by 1.3 billion or 15% all of which was same store third quarter bookings were especially strong in the technology sector both in our traditional construction business as well as the modular part of our business we are entering the final quarter of 2025 with same store backlog 62% higher than at this time last year and our project pipelines remain at historically high levels industrial customers accounted for 65% of total revenue in the first nine months of 2025 and they are major drivers of pipeline and backlog technology which is included in industrial was 42% of our revenue a substantial increase from 32% in the prior year while our manufacturing revenues declined on a percentage basis we continue to see good demand for manufacturing but in many cases data center opportunities are more compelling institutional markets which include education healthcare and government remain strong and represent 22% of our revenue the commercial sector provided about 13% of revenue most of our service revenue is for commercial customers construction accounted for 86% of our revenue with projects for new buildings representing 61% and existing building construction 25% we include modular in new building construction and year-to-date modular with 17% of our revenue we remain on track to have 3 million square feet of space in our modular businesses by early 2026 and we will prudently consider additional investments next year based on the strong demand we are seeing in modular service revenue was up 11% but with faster growth in construction it is now 14% of total revenue service profitability was strong this quarter and service continues to be a growing and reliable source of profit and cash flow I cannot say enough about the amazing team of craft professionals that we have working hard for our customers every single day thanks to the teams that are working across the country we are optimistic about our future. I want to close by joining Brian and Bill in thanking our over 21,000 employees for their hard work and dedication. I will now turn it back over to Michelle for questions. Thank you.

Thank you. As a reminder to ask a question please press star 1-1. If your question has been answered and you'd like to remove yourself from the queue press star 1-1 again. Our first question comes from Adam Thalmer with Thompson Davis. Your line is open.

Hey, good morning, guys. Congrats on another wave of record results. Thanks, Adam. I wanted to ask high level on the technology side. Does the bidding activity match the bookings and the revenue growth that you saw in Q3?

Yeah, Adam. The opportunities, the pipeline, line still robust, matching quarter three. There's still more opportunities than probably can be handled out there in the market at the moment. So we've seen no let up at all in the opportunities.

And then I'm curious on capital allocation. Your net cash, I think, broke out to an all-time record in Q3. Just curious how you're thinking about that, and if just accumulating cash from here wouldn't be the worst thing in the world.

Well, that's never the worst thing in the world. There are worse alternatives to accumulating cash, but we haven't changed our capital allocation thinking since 2007. We will, to the extent we can find opportunities that we have conviction around, we will deploy most of our cash doing acquisitions. We will continually buy back our shares using a portion of our free cash flow. We get aggressive on that when we feel like the stock has dipped relative to its, you know, relative to our prospects. So, for example, when it dipped earlier this year, we spent $100 million in a couple weeks buying shares. And then one point you might be making is there's so much cash now, is it realistic for us to deploy it into acquisitions? And I think the answer is, you know, we've faced that problem on a couple of stair steps in our cash over the last few years. So far, our reputation as an acquirer and our commitment to great outcomes for the people we buy have allowed us to find good opportunities to deploy our cash. You know, one thing people might not think about is we're growing, but the companies we're buying are growing as well. There's a certain amount of scaling going on. So I meet with companies regularly that are having, that have results that are twice as big as they were two or three years ago. And so in a sense, you know, the reality is the opportunity set that's facing a company with a great, deep, well-established workforce of pipefitters or electricians is amazing. These companies are worth more today than they were five years ago just because of actually what's going on because of the investments they've been making in the meanwhile. And, you know, we're optimistic. We're going to just try to keep doing what we've been doing. And, you know, if we wake up with the problem of we just can't keep up with the cash, then we'll find ways to, We'll find ways to reward our shareholders in other ways.

I'll turn it over. Thanks.

Thank you. Our next question comes from Sanjita Jain with KeyBank Capital Markets. Your line is open.

Thank you for taking my question. So a couple that I have. One is on the cash flow in third quarter, your free cash flow was especially strong. So I'm just trying to think how we should think about it for the whole year, and if there were any material advanced payments included in SWEQ that we should be aware of.

So for one thing, there wasn't an extraordinary event like there has been a few times over the last few years where we get way ahead due to some specific event, or we have a turnaround where that event is sort of recalibrated. I will say that you can always expect our cash flow to be roughly equal to our net income. We are a cash business. We pay our taxes in cash. So when you see a quarter where we have cash flow above our net income, at some point we're going to give that back. When it's below our net income, then we have cash we'll collect in the future. You know, through six months, we were behind our net income. There were some specific reasons for that that we've discussed. In the third quarter, we had a big catch-up. We're getting fantastic payment terms. As we can negotiate good pricing and good conditions for our workers, we can also negotiate good payment terms. So we just had a great cash flow quarter, but nothing fundamental has changed. We're going to cash flow our net income.

Got it. And then if I can ask one on backlog growth, obviously your backlog suggests that you're booking out further than a year. Can you speak a little bit to that? and if it's primarily on the modular side or also on the traditional construction side, if it's just data center or also life sciences, former work that you feel like you're booking out earlier and earlier?

So, you know, when our bookings for the quarter, right, we're broadly across all of our businesses. And, you know, there were some – the bookings that we had in modular, those are going to – those are pushed out farther. So those aren't going to be, you know, exactly relevant to what I'm about to say. But for the rest of our bookings, all of those bookings are going to start sometime within the next year. They might be longer-term projects because of the size of the projects, but they are all, you know, projects that are slated to begin in 2026. So, you know, when we talk about bookings out further out, that's more of the modular side of the business.

Great. Thank you. I appreciate the answers.

Thank you. Our next question comes from Julio Romero with Sidodian Company. Your line is open.

Thanks. Hey, good morning, guys. You know, just following up on the last question about the order acceleration, you know, historically you guys are very prudent at kind of not taking on additional backlog and not getting out over your skis. I know, Trent, you mentioned, you know, a piece of the backlog growth was modular orders that were further out. But just help us, you know, think about, you know, the step up in orders here for the last several quarters. You know, part of it is booking yourselves further out, but some of it is also, I guess, securing enough pricing in your bid margins to compensate for that additional risk of additional orders.

Yeah. So, you know, Julio, we still have the same philosophy we've always had. We'll take on work we know we can do that we can handle with the skilled workforce that we have. So we look at each opportunity, particularly on the largest side, make sure the timing is right, work for us, and that we can achieve a good product for our customers. So if you look at the timing of what we're winning, you know, when it's coming in, and can we handle it, we feel very comfortable with the workload that we have today.

And I want to add, too, the collaboration between our companies is really permitting a lot of this additional booking that yet you're seeing. It's the companies working together to share workforces so that they can tackle projects that would otherwise have been, you know, kind of out of their, outside of their ability scope previously.

And Julio, one thing that we do have going for us is that we have folks that will travel and you see some of this work, maybe get all the West Texas, Abilene, and Marillo that we can handle because we have people that will travel to these sites.

That's very helpful. Thank you for the color there. And then, you know, I know a big emphasis is being selective with regards to the specific partners you work with and I think you guys mentioned earlier your you know your partners are getting bigger they're taking on additional work but just throwing that question back at you guys you know has has the pool of partners that you work with increased or is this just more function of you doing more with your existing partners what Trent was referring to was our companies working together we do work sometimes with we worked with some companies we worked with a company we We bought Call to Ivy before we bought them.

We have selected situations like that. But I think overwhelmingly we're really talking about companies that are Comfort Systems USA companies that are, you know, 50 or 100 or 150 miles from each other.

And it's really a great point for people to come and join us. They have an opportunity to work with a lot of other companies in the same industry under the same overall structure that we have.

Yep. And I'm sorry to rephrase my question. I meant when I said has the pool of partners increased, I meant has the pool of kind of the customers that you typically have worked with increased, or are you doing more with existing customers?

I would say there aren't many people in the United States we haven't done work for in the past. If they've done work in the past, we've probably done it. So that's kind of a hard question to answer, but it's mostly there is a definite preference for people who we have a history of succeeding together with. We have rough projects. We don't want to do work with those people anymore. We want to do work with the people that we have great projects with over and over. Trent, did you? I mean, yeah. Very helpful.

Thank you. Our next question comes from Brent Thillman with DA Davidson & Company. Your line is open.

Hey, thanks. Congrats again. Another great quarter. I guess, Brian, Trent, or Bill, one of the questions that seems to come up often is just your ability to sustain the growth you're seeing outside of modular, just given sort of the industry labor constraints out there. You've grown same-store, call it 20% or more, for what looks to be a fourth year in a row here. And I know there's a lot of factors to the growth over the last few years, but maybe you could talk about just sort of how critical have your sort of internal recruiting, hiring efforts been in recent years in support of that growth versus job values getting bigger? And also, I guess, is there any sort of slowdown or change you've seen in terms of your ability to bring in people to support the growth, I guess, outside of acquisitions?

And, yeah, so, you know, I'll go first, Brent. You know, first and foremost, this is a good place to work, right? We treat people fair and with respect. We pay them well, and there's a good benefit package. So we're constantly recruiting, but as you can tell by our numbers, we're up over 21,000, access to another probably 35,000, 4,000 contract labors that we have. So all in all, we're constantly recruiting. but we do get people to come here and work we also have a lot of work which makes us a good place to work as well so how much can we grow we continue to train we're improving productivity constantly um we're trying to pick the right jobs that we're good at planning them using bim prefab and modular help us but the enhancement that we are achieving with the skilled workforce was, is, you know, the best I've ever seen in my career today.

Okay. And then the 3 million square footage of space in modular that, I guess, becomes available early 2026, I think you said, Trent, is that capacity or space already effectively sold out or do you expect it to be soon?

Yeah. The answer is yes.

Okay. Just one last technicality, if I could. The $15.5 million write-up that you called out, I think, in the filing, is that all reflected in the mechanical segment? I'm just trying to level set what kind of normalized margin looks like.

So that happens to be in the electrical segment. But one of the things we were basically saying is, you know, we always get these questions. Did you have anything special in the quarter? Did you have jobs that closed out especially well? We have a lot of jobs now. So we almost always do. But at this point, we did have some special closeouts this quarter that were particularly helpful. That was the biggest one. So in MD&A, you're required to give an example. We gave the biggest single example. But they happened in both electrical and mechanical. We're late in some jobs. The jobs are going well. The systems are being turned on, and they work well. We're able to relieve contingency. So we did. This would have been a great quarter without those. This would have been a record quarter. Even without some of those pickups, some of those pickups pushed our results a little further, and we wanted to just let people know that.

And the bill, theoretically, you have these every quarter. It just varies. So even if you compare it to your line here, you might have had them last year.

But the last three or four quarters, we were frequently asked, did you have any special closeout? And we said nothing out of the usual. Well, this time we're saying, yeah, we kind of had a little more than we might normally count on having. So I would say we do have, you know, we had some really good stuff happen this quarter.

Yeah, okay, understood.

Thank you. Our next question comes from Josh Chan with UBS. Your line is open.

Hey, good morning, guys. Congrats on that really great quarter. Thanks, Josh. Hi, morning. I wanted to ask about the backlog question, but especially within the last six months, because obviously you've had a strong demand environment, you have labor constraint, you have labor sharing for a while now, but really over the last two quarters, you had these two consecutive billion dollars step up in the backlog, and I was just wondering if anything is different in this last six months versus the longer period, I guess.

So, interesting way you asked that question. Every quarter is different from every other quarter, right? We had some big bookings. Sometimes they're in pharma. Sometimes they're in – it's never exactly the same because this is lumpy stuff, as we've said. We had a lot of really, really good opportunities get to the point where they were documented and could go into backlog this quarter. Year-to-date, it's, you know, the companies you guys know of and think about. There were some interesting ones this quarter. It's work we know, you know, really companies that are doing work they've done over and over, so we feel great about it. But there's just such a good market. There's such a good opportunity. Our customers, they want us to commit early, so they commit early. It's just a fantastic market, and we have just unbelievably good companies.

Yeah, that makes a lot of sense. I appreciate the color there. And then on modular capacity, if you were to expand kind of incrementally from here, would there be a preference to serving existing customer or I guess demand for that? Or would there be a preference to kind of grow with other types of customers within modular?

I would say we always have a preference towards meeting the needs of the people who have, you know, been great partners for us over years. And in the case of one of the ones you would be referring to, more than a decade. So we'll always have a preference towards great customers as opposed to new customers. Having said that, you know, we talk to new customers. We, you know, we have opportunities. As you know, we added a customer. But if you were asking me the question, would our guys rather do work with people who they have a great relationship with or find out how good somebody else is, they'll take the sure thing.

Sure. Sure, absolutely. Yeah, thank you for the color, and congrats again on the quarter.

Thank you. Our next question comes from Tim Mulrooney with William Blair. Your line is open.

Yeah, good morning. Thanks for taking my questions and including me on the conference call. I'm excited to be covering the company. Thank you. I hate to go back to this backlog question and beat it to death, but I'm newer to the company here, so I just want to make sure I understand how this works. How much of your backlog, excluding that modular piece, would you expect to start at some point over the next 12 months? I'm just trying to understand how much of this backlog is actually being pushed out versus just elongated due to the larger projects.

So, I'm really glad you asked. The majority of the backlog numerically is jobs that have already started. It's the work left to finish on jobs that have already started. When Trent says everything is going to start within a year, he means all the new bookings. We don't have new bookings. Really, even many of the new bookings have already started at some level in the sense that we're doing preliminary work, underground work. We have engineering we're billing for. But this is really a, because the definition of backlog in sort of what's called a remaining performance obligation under GAAP is so strict, you really don't put something into the reported backlog number until you have a price, a scope, and a legally binding obligation that can be audited. We are, almost any project that we put into our backlog, it was awarded to us a quarter, two quarters, three quarters ago. We received a phone call saying, this is your work long before it shows up in backlog. So I hope that helps because it's not like we're not like a manufacturing company that's selling stuff we're going to start producing far in the future. You can't really price a building until it's been designed. You can't really design a building, you know, until you're about to start it.

Yeah, no, that's really helpful, Bill. That paints, I guess, a more firm picture for a more firm backlog. That's helpful. So my other question, just really quick, is actually something I don't hear discussed a lot on these calls, but I'm curious to learn more, is that service revenue piece. I mean, it's up 11%. You said it's like 14% to 15% of your revenue. It's not insignificant. Don't hear it talked about a lot. You know, what's driving that strength in the revenue growth there and it sounds like and in the profitability? And is there some sort of conversion, like when your new construction is stronger that brings along some service, or are those pretty much not correlated? Just any color on that piece of the business.

So, you know, the service business continues to be strong. there's a lot of investment in you know Salesforce collaboration making sure that we're going after the right parts of that market across the board you know we're just seeing broad strength in that business and it's execution driven we have you know a lot of people the search business you know it's really it's a it's a it's a it's a day-to-day kind of bond single doubles business it's not like the construction business where you add a lot to your to your backlog at once it's you know small maintenance contracts pull through work that comes from that to your point it's converting new work to service contracts over time so it is the kind of business that you know just by its nature doesn't grow quite quite as episodically as the construction business but what you've got is you've got some you know real strength in that from the teams out you know out in the field that are that are making it happen thank you our next question comes from brian brophy with stiefel your line is open yeah thanks good morning everybody congrats uh on a nice quarter just wanted to follow up on some of this um head count discussion i think the over

21 000 employees implies a little bit over 15 percent head count growth since the end of 2024 and obviously seems to be an important enabler of some of the organic growth we've seen here this quarter. Just could you help us understand how sustainable that pace of hiring could be assuming demand remains healthy here?

That number does include some acquisitions. So, you know, but I would say the majority of that was 15 points were added by our companies. And, you know, we would never tell you, oh, we can regularly add 12% to our workforce of craft workers. We had a really good nine months. We're confident we can, you know, on any given day we have apprenticeship programs going on that we really are trying to get as many people as we can legally put into them, involved in. There are, like, state-mandated ratios where you can only have a certain number of apprentices per journey, journey persons. So, you know, we're trying to grow as fast as we can. I think high single digits is what we've accomplished over a long period of time. We're pretty proud of that, by the way, because that means you're creating or you're helping people create themselves as electricians and pipe fitters. And that's good for them. That's good for us. That's good for the U.S.

Okay. Yeah, that's helpful. And then I'm wondering if you could give an update on some of the automation investments you've made on the modular side and just to what extent you're seeing some productivity benefits. Any color you can provide there would be interesting.

Well, so more and more robots, right?

So as we get more and more buildings implemented, we see the bills go by for robots. We're buying. We've added turntables. You know, it's what Trent was saying. It's singles and doubles. But, yeah, no, there's a lot of automation going in. There's improvements in welding proficiency that's driven by better software, really AI-enabled software. There's just a million little things. I mean, Trent.

I'll also tell you, Brian, in terms of the history of construction, the amount of innovation and technology that's being developed and applied today, leaps and bounds over what it's ever been, and it's going to be a huge help into helping us build stuff as we go forward safer, more productively, and the quality is getting better every day.

Yeah, and one of the benefits Comfort Systems has is we have 48 different test beds where We can try new things and then move them throughout the enterprise if they work. And so it's a really excellent way to be able to test and innovate and then be able to do it in a controlled way and then move it out if it's effective in one operating unit, then it'll be effective across. And it's a way for us to be able to innovate, you know, inside of a construction environment without, you know, significant risk. So it's a real benefit to our structure.

Yeah, that's really helpful. Last one for me, Pharma was mentioned very briefly. Would you give us an update on kind of what you're seeing on the project pipeline side, particularly some of the onshoring opportunities that may be coming? Obviously, we've had a little bit more tariff discussion on Pharma products. I'm just curious if you've seen any movement in that market.

Our biggest single booking, I think, in the last couple quarters was in pharma, but the majority of our bookings today are in technology. It's not because there aren't pharma opportunities. It's because technology is competing for our resources, and they're making a compelling case for our resources. I will also say, if you talk to, we have a very, very strong pharma group of people that have done work in pharma for decades in the Mid-Atlantic. I've spent time with some of them recently. They say that there is a lot of planning going on, projects with code names for construction along the eastern seaboard. But in our case, that would be the mid-Atlantic area and especially the research triangle, the area around the research triangle. So there's a lot of work coming. Pharma has very, very long lead times. They think and plan for years. So unless something like, you know, there are exceptions to that. GLP-1, boom, they're just building it as fast as they can. The COVID vaccines and all sorts of things that were needed for the COVID vaccines, very, very fast. But normal, regular, day-to-day pharma stuff, it develops over a long period of time. And that pipeline, the smartest people in our company who know about it say it's very, very good. Now, the time may come when it's available to us, and that's not what we choose to do, right? But I think that the opportunity is out there.

Very helpful. I'll pass it on.

Thank you. Our next question is a follow-up from Sanjita Jain with KeyBank Capital Markets. Your line is open.

Thanks. I just had a follow-up on, as you see large data centers starting to get commissioned, I'm wondering if there's a change in the type of electrical or mechanical scope that you may be seeing, because we're hearing that developers are now looking at DC power instead of AC power, and I wonder if that impacts you, or if it just kind of stays outside the foam wall.

You know, for us, electrons going through a wire, you just can't even imagine how generic that is to an electrician. He couldn't care if those electrons are decent. You know, he doesn't care if it's going to make pills or it's going to make data. So you'd be, you know, you just need electricians. That's a great thing about our positioning. Whatever you, if you need to do something, you need us. And I haven't heard anybody saying that it's materially changing. The one thing you do here is scale, like the amount of copper, the amount of switch gear, the density of cooling, just the sheer scale, people, even very, very seasoned people are amazed by that in our organization, but as far as, like, those kind of tweaks, I'm not hearing anything, Trent.

Thank you.

Thanks.

Thank you. There are no further questions at this time. I'd like to turn the call back over to Brian Lane for closing remarks.

Okay, I just want to reiterate my gratitude for the amazing dedication and excellence of the teams we have across our nation, serving our customers every day. Demand is strong, and our people are rising to the challenge of addressing the unprecedented need for their unique skills. As Trent mentioned, we feel that conditions are good for us to continue to perform. and as as bill indicated we have the resources and the commitment to lean into delivering for our employees our customers and for you our shareholders you know as we embark upon the holidays that are coming up we won't have another call wish everyone the best for the rest of the year and enjoy your time with your families as the holidays come upon us thank you for your confidence have a great weekend thank you for your participation this does conclude the program you may not disconnect.

Good day.