good morning and welcome to the quanta services fourth quarter and full year 2025 earnings call at this time all participants are in a listen only mode a question and answer session will follow management's prepared remarks and we ask that you please hold all questions until that time i will then provide instructions for the question and answer session as a reminder this conference call is being recorded if you have any objections please disconnect at this time i will now turn the call over to kit brupp vice president investor relations

for introductory remarks thank you and welcome everyone to the quanta services fourth quarter and full year 2025 earnings conference call this morning we issued a press release announcing our fourth quarter and full year 2025 results which can be found in the investor relations section of our website quanta services.com this morning we also posted our fourth quarter and full year 2025 operational and financial commentary and our 2026 outlook expectations summary on Kwan's investor relations website. While management will make brief introductory remarks during this morning's call, the operational and financial commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community. Please remember that information reported on this call speaks only as of today, February 19, 2026, and therefore you are advised that any time-sensitive information may no longer be accurate as of any replay of this call. This call will include forward-looking statements and information intended to qualify under the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements reflecting expectations, intentions, assumptions, or beliefs about future events or financial performance for but that do not solely relate to historical or current facts. You should not place undue reliance on these statements, as they involve certain risks, uncertainties, and assumptions that are difficult to predict or beyond Qantas control, and actual results may differ materially from those expressed or implied. We will also present certain historical and forecasted non-GAAP financial measures. Reconciliations of these financial measures, so their most directly comparable GAAP financial measures, are included in our earnings release and operational and financial commentary. Please refer to these documents for additional information regarding our forward-looking statements and non-GAAP financial measures. Lastly, please sign up for email alerts through the Investor Relations section of Quantaservices.com to receive notifications of news releases and other information and follow Quanta IR and Quanta Services on the social media channels listed on our website. With that, I'll turn the call over to Mr. Duke Austin, Qantas President and CEO. Duke?

Thanks, Kip. Good morning, everyone, and welcome to Qantas Service's fourth quarter and full-year 2025 earnings conference call. I'd like to begin by thanking our exceptional employees for their continued absolute performance mindset, dedication to safety, operational excellence, and delivering mission-critical infrastructure solutions to our customers. Your commitment has once again driven outstanding results and positioned Qantas for sustained success. 2025 was another year of significant achievement and advancement for Qwanta. Again, we delivered record results as we generated double-digit growth in revenues, adjusted EBITDA, and adjusted earnings per share, along with record-free cash flow and backlog. Qwanta has produced record revenues eight of the last nine years, eight consecutive years of record adjusted EBITDA, and nine consecutive years of record adjusted diluted earnings per share quanta has clearly established itself as a compounder of profitable growth these results reflect the strength of our diversified solution-based business model and our portfolio approach enabling us to adapt to evolving industry dynamics while consistently delivering execution certainty and profitable growth across very market conditions throughout 2025 we continue to enhance our capabilities through strategic disciplined capital deployment we completed eight acquisitions during the year including three significant transactions in the second half of 2025. we acquired dynamic systems a premier turnkey mechanical and process infrastructure provider that strengthens our presence in the attractive and growing technology, semiconductor, healthcare, and load-centered markets. And in the fourth quarter, the acquisitions of Tri-City Group and Wilson Construction Company expanded our craft skill platform to deliver critical path solutions for load-centered facilities and electric utility programs. In the aggregate, the acquisitions we completed in 2025 along with our organic growth, added approximately 11,100 employees, bringing our total workforce to approximately 69,500 at year-end, reinforcing our self-performed capabilities that provides certainty and differentiates Kiwana as a solutions provider. Looking ahead, we see substantial momentum building across our end markets, as evidenced by our total backlog of $44 billion. the convergence of the utility utility power generation and large load industries combined with accelerating load growth demands is driving unprecedented infrastructure investment requirements for example in october we announced quantum selection by nysource to design procure and construct generation and infrastructure resources capable of producing approximately three gigawatts of power for a large data center campus in Indiana. A project that showcases the breadth of our total solutions platform as well as our support customer affordability objectives. Additionally, we continue to advance our vertical supply chain solutions through strategically investing approximately 500 to 700 million over the next several years in our power transformer manufacturing facilities and vertical supply chain strategy. The majority of this investment will build out production for the 345 kilovolt through 765 kilovolt power transformers and breakers, which we believe will create a significant differentiated solution for our Qwana and our customers in the high voltage transmission market. These programs are just a couple of examples of Qwana's ability to provide total solutions across converging markets that are designed to deliver speed and certainty. in many ways we believe we are just getting started we are confident in quanta's ability to deliver innovative craft-based and supply chain solutions that are designed to meet our customers need for certainty and for their success as we said last quarter we believed we were well positioned to achieve record backlog in another year of double digit earnings per share growth in 2026 and our full year guidance reflects that conviction our strategy remains grounded in craft labor excellence execution certainty and disciplined investment we believe quanta is uniquely positioned at the center of a multi-decade infrastructure transformation and we are confident in our ability to generate attractive compounding returns and deliver long-term stakeholder value. With that, I will now turn the call over to Jayshree Desai, QANA CFO, to provide a few remarks about our results and 2026 guidance, and then we will

take your questions. Jayshree. Thanks, Duke, and good morning, everyone. We are pleased to report another quarter of strong execution, capping a year in which QANA delivered record results across virtually every key financial metric. For the full year, revenues reached 28.5 billion dollars an increase of 20 compared to 2024. Adjusted EBITDA was a record 2.9 billion dollars and adjusted diluted earnings per share grew 20 percent year over year to 10.75 cents. We also generated record cash flow from operations of 2.2 billion dollars and record free cash flow of 1.7 billion dollars. In the fourth quarter specifically revenues were 7.8 billion dollars with adjusted EBITDA of $845 million and adjusted diluted EPS of $3.16, all records for Qwana. Cash flow from operations in the quarter was $1.1 billion, and free cash flow was $946 million, both fourth quarter records. During the fourth quarter, we completed three acquisitions, Tri-City Group, Wilson Construction Company, and Billings Flying Service for aggregate upfront consideration of approximately 1.7 billion dollars funded through a combination of cash and quanta common stock these businesses complement our strategies and expand our power delivery capabilities for large load center facilities and utility capital programs even after deploying this level of capital following the third quarter acquisition of dynamic systems we maintained a leverage ratio below two times a testament to the strength of our cash generation and our commitment to balance sheet discipline. Looking ahead, this morning we provided our full-year 2026 financial expectations, which reflects continued double-digit growth in revenues, net income, and adjusted EBITDA, as well as the opportunity to deliver over 20% growth in adjusted EPS. These financial expectations are supported by record backlog at year-end of $44 billion, dollars the strength of which is broad-based driven by ongoing investment in grid reliability and resilience growing demand for power generation and the long-term infrastructure investment required to meet rising electricity consumption across the economy these are multi-year structural demand drivers that provide us with meaningful visibility heading into 2026 and beyond additionally we expect free cash flow of 1.8 billion dollars at the midpoint of our range which includes $250 to $350 million of expected capital expenditures related to the vertical supply chain solutions that Duke described. A range of free cash flow also contemplates the collection of the remaining balance associated with the large Canadian renewable transmission project discussed in prior calls. Additional details and commentary about our 2026 financial guidance can be found in our operational and financial commentary and outlook expectation summary, both of which are posted on our IR website. In summary, 2025 was a year in which Qwanta continued to deliver on its commitments, providing certainty to our stakeholders and compounding earnings. We enter 2026 with record backlog and a strengthening outlook. The convergence of utility modernization, power generation expansion, and large load growth continues to accelerate, and Qwanta's workforce, breadth of solutions, and execution capabilities position us well to serve our customers' most critical infrastructure needs. We remain focused on disciplined growth, operational excellence, and creating long-term value for our shareholders. With that, we are happy to answer your questions. Operator?

Thank you. We will now move to our question and answer session. For today's session, we will be utilizing the raise hand feature via the webinar. If you'd like to ask a question, simply click on the raise hand button at the bottom of your screen. If you have dialled in, please press star 9 to raise your hand and star 6 to unmute your line. Once you've been called on, please unmute yourself and please begin to ask your question. Again, that is star 9 to raise your hand and star 6 to unmute if you have dialled in. We ask that all participants link themselves to one question. If you have an additional question, you may re-cue and those questions will be addressed, time permitting. Thank you. We will now pause a moment to assemble the queue. Our first question is from Julian DeMoulin-Smith from Jefferies, please unmute your line and ask your question.

Hey, good morning team, thank you guys very much, nicely done, truly, kudos. Maybe just coming back to the analyst day coming up here and a little bit of a preview if I can, how do you think about this setting the tone for a high team's earnings growth if you will through the back half of the decade and specifically within that, can you talk about what's embedded in 26 guidance as it pertains to data center contracts and also So obviously, Jayshree, you've just announced or you've closed on a number of acquisitions. Again, where are you positioned with respect to capturing the data set opportunity and the internal versus still needing further external acquisitions to really achieve the scope that you're desiring?

Yeah, good morning, Julian. So in the data center, kind of how we're thinking through it, it's roughly like 10% of the business at this point. and that would be a go-forward basis. Backlog has certainly grown. It's our fastest growing piece of backlog. There's a lot of opportunity there. I continue to see us booking significant backlog this year and beyond. It's a multi-decade, probably way I see it, at least a decade of growth in that area. So we're having success there, and I do believe the company is well-positioned to take that growth. And I forgot the other four questions. What was the other one?

How do you see the several years?

Oh, the several years. Yeah, look, I think when we see it, you know, the companies put up, management teams put up a decade of type results. Same management team, same philosophy, better markets, larger TAMs. I like our chances to continue what we've done in the past.

Thank you. Our next question is from Stephen Fisher from UBS. Please unmute your line and ask your question.

Thanks. Good morning. Congratulations on the deals. Just wanted to ask you a little bit about the electric margins kind of steady for the last few years. I wonder if you could just bridge some of the puts and takes between 2025 and 26. I imagine there's some things underlying there in terms of Sunzia and perhaps other things and maybe just more broadly about the margin initiatives that you have. I know you've got a number of them. could you just talk about uh how you see some of those things coming through in terms of vertical integration approved resource sharing mix etc thanks

yeah thanks steve i think when we look at the company you know a lot there are large projects that we're continuing to see but you know 26 i we don't anticipate starting any 765 type work we don't see any major large projects in it. It's really just solid growth across a broad spectrum of markets. There's nothing, there's no Sunzia. I got you with the company at 33 and a half billion. Sunzia is really not going to move the needle at this point. I think you're seeing broad-based type growth that you'll continue to see. You know, I think the difference is you're in two verticals. You have the technology TAM that's well over a trillion and the utility TAM over a trillion and growing. So as we look at both those markets and take those opportunities, the company has a significant portfolio of ways to grow well beyond what we should be talking about in Sunzia. I think that's passed and we've done a nice job there. I commend the team that put that together. But again, we're happy to build Sunzia's and we're happy to do the baseload work of everyday programmatic spin with both our technology and our utility customers. and that's what you see the company focused on the large project dynamic comes comes with that but you know the initiatives of 765 again like we talk about it a lot it's not in backlog yet and it's not something that we see in 26. thank you our next question is from jamie cook from tourist

securities please unmute your line and ask your question good morning uh nice print um i guess

just do uh question you know since the announcement with with nysource last quarter i'm just wondering what the path towards doing more ccgt you know projects i'm just wondering if additional customers are coming to you now that you sort of dipped your your your uh foot in this um and as you do this should we continue to see joint ventures a path and then i guess just my follow-up question margins in electric infrastructure 10.3 percent at the midpoint similar to the past couple years uh i'm just wondering if investors should think of this as sort of the the new margin target and why wouldn't there be opportunities for margin expansion with 765 coming online soon and and you know just bigger larger projects should be favorable to margins

thank you yeah thanks jamie i'll go backwards i think when we look at margins and margins improvement yes i mean we have opportunities to improve that you know i think we took a prudent approach to the midpoint of the guidance and you know there's certainly things within it that we can improve we do organically we'll grow around 6 000 employees that's pressure on those margins as we talked about in the past and we continue to kind of have the same ratios so that that temper some of the margins about you know still 50 plus of the business is under a regulated environment with their utility customers and we look more at compounding that over multi-decades versus trying to enhance margins of percentage point here or there um yeah i do think we can operate better we we certainly have a mindset to do so it's also about risk i mean i think the company is really working on the quality of earnings in the risk profile we're unwilling to take the risk um you may have seen in the past but that but the margins are there and so it's really a compounding story jamie i don't think you're going to see any of these outward margins and especially in our regulated business and even in our dressable market with technology we're working hard with with the technology customers to have more of a programmatic look to this and that's the company that's who we are we want to collaborate and and multi-decade look we're not trying to do anything other than enhance our customers ability in the stakeholder their customer from affordability to everything else we have to be a part of the solution of the industries that we serve thank you our next question i would say steve asked something on margins i want to go back to that sorry um i do think the company has initiatives internally that from vertical supply chains and all the things that we're doing sorry steve i didn't catch you um that will help us also but you also have health care and all kinds of things that are pressing including what i what i just discussed with jamie so sorry i missed that part thank you our next question

is from management samaya from cantor fitzgerald please unmute your line and ask your question

uh thank you so much and congrats on a strong quarter a strong year and obviously a strong outlook uh the question i have duke again uh pertains to what's happening in the marketplace Maybe if you can just give us a sense of, you know, the pricing discipline that's holding in in the marketplace combined with potential supply chain dynamics that might be also a potential headwind as we look at the growth opportunities that you have.

I mean, I think when you look at supply chain, you know, you see our announcement this morning, it's really around trying to de-risk the supply chain as well as take advantage of what we see in the marketplace. I mean, you know, the three to five hundred million, probably up in the seven hundred million over the next three years is de-risking us. If the transformer breakers, the things that we're building don't show up, we have issues, significant issues. So I think, you know, part of that was a collaboration with the industry and our client, AAP, on building transformers to their spec. And it's something that we take very seriously. And we know that our clients want certainty. This company is built on certainty and billings, transformers, all the things that you may not think, why are they doing that?

we're doing that to de-risk this company long term and allow us to be certain as we look at it

while while addressing affordability to our clients and i think that's a big thing is affordability and we're working on those things with our with our vertical supply chain which allows us a great sense of certainty and when we guide and when we tell our customers that we can do something on time on budget and as far as craft we've invested in craft for two decades that's who we are. Anytime you have a tight craft labor market, Kwana does very well. Thank you. Our next

question. The other question I had was on pricing dynamics in the marketplace. Yeah, I mean, look,

I think we look at it more in a collaboratory manner where, you know, we were bidding on a one-year type, two-year type things. Now we're not bidding at all. We're negotiating five, ten-year type programmatic spends. And that's the difference. It's more longevity, more risk-adjusted type look at the business solution providing, pull through. ROIC goes up in these environments, our return invested capital because of things that we can do and offer in a solution base. So I really see just a longer term. It's not a margin story. I'll say it again.

Thank you. Our next question is from Mark Strauss from JP Morgan. Please unmute your line and ask

your question. Yes, good morning. Thank you very much for taking our questions. Duke, I just wanted to follow up on Jamie's earlier question on gas power generation. Can you just talk about what you're seeing in the pipeline there, how you're expecting that backlog to trend in 2026? And then And are you planning to expand beyond the Zachary, JV, going forward?

Thanks for reminding me I missed that. So I do think when we look at our gas generation business, we're certainly looking at the market, listening to the market. They're asking us to build these types of combined cycles, single cycles, all types of generation. And we put together a great team, a great platform. I'm super excited about what we have in the book. The opportunities, yes, I do believe when you look at the opportunities, we will book more generation. We will book it both in a JV setting. We'll book it with just us. I mean, we're certainly capable internally of building generation and will. So it's really around the risk. That's something that we're not going to deviate on. It's part of it. and our customer base and anyone that calls asking for generation it's risk adjusted we're not we're not getting in a position where um of the past where we firm fixed price generation not doing it so if people want us to build it it will be risk adjusted and yes i i believe we'll book backlog throughout the year there's no shortage of inbound calls when i wanted to build generation so i'm confident you'll continue to see that backlog growth which is not in backlog yet so the first one's not in backlog i suspect we'll have multiple in backlog before the end of the year and you know i think it's more of a 27 28 29 type build where that's the ramp on it and it'll continue on out

we built a nice platform i'm excited about it our next question is from atti modak from goldman

sax please unmute your line and ask your question hey good morning team um duke in your prepared comments you talked about strategic initiatives to expand programmatic customer relationships can you talk about that a little bit more give us any color on what you're thinking of and what we

should expect there i mean i think when we look at the utilities and we look at the the technology customers it's our job to you know certainly help with with their builds and make them successful that's how this company views it and as that as we do that um you know look people want certainty they want to they have to have it and i think that's what we are known for is execution certainty and construction risk is not something that we're concerned with on primarily on the regulated utilities except gas fire um so we'll really i think we're just in a good spot there and the discussions we're having are solution-based discussions and they have issues with labor labor constraints uh vertical supply chain issues we've done a nice job seeing down you know seeing out five ten years and putting ourselves in great positions here to take advantage of those things it may have looked funny um to wall street five years ago they're showing up today as something that looks visionary and i i think that's what we're trying to accomplish thank you our next

question is from mike dudas from vertical research partners please unmute your line and ask your

question yes thanks good morning duke uh kip and jay retreat morning oh yeah good just checking to sure i'm like uh hey hey duke nice decade um so looking at the looking at the um you know the the news flow and demand expectations are appear to be off the charts and getting bigger any sense of how how excited how real the market is with your discussion with utilities on the on the on the load factor side um is are there a lot more fluff in the market is there reality and what what are some of the hurdles are there hurdles becoming less important or more important to execute what the plans of your customers are over the next several years um you know maybe regulatory or uh some of those issues there thank you i mean anytime you're really contemplating

doubling the size of you know the largest human infrastructure project in the in the world i would tell you like it's hard and there's stops and starts and all kinds of different things that you can find out in the marketplace and certainly on social media um yeah i think some of it is hype but even if you discount it 50 it's still doubling the size of the largest infrastructure project in the world and i i don't see any demand slow down at all um i don't and i can we can see out kind of five years it may be longer i mean we're probably in 2032 now kind of looking at things and booking things so i i think it's you know way out there we have to build generation in this country all forms and i think it's it's something that our customer base our utility customers are certainly um they're regulated in many ways but i'll speak for them they have a great business and it goes unnoticed of how the energy business is growing substantially it's a growth business and you know we're right in the middle of it with them you're going to get some political windfall you know kind of rhetoric here with what i would consider unfounded things that go on with data centers and things like that you know when you look at the indiana project it's $7 a month, you know, rebate basically to every ratepayer in my source, maybe more. So I just, I think we have to do a better job as an industry promoting how good this industry is. We're trying to do the right thing for the stakeholders while advancing the system and generation capabilities to double the size of what it is today. And I, you know, I'm super excited about it. The utilities are super excited about it. They're doing a great job managing through all this political rhetoric, But underneath, I can tell you legs are moving fast and people are doing things.

Thank you. Our next question is from Sangeeta Jain from KeyBank Capital Markets. Please unmute your line and ask your question.

Good morning. Thank you for taking my question. Duke, it looks like the hyperscalers and co-locators are increasingly looking for financing partnerships for large projects as the project sizes get bigger. would you ever consider becoming an investor in a large infrastructure project if the scope of the award measures up against your risk profile?

Yeah, I mean, Sangeeta, we've looked at those things in the past. I would say we never compete with our customer on those type of things. so you get in a situation where if you invest significantly with a co-locator hyperscaler and things that um like that you run the risk of of competing with who our client is and we don't do that so um can we help with supply chain can we do some things to help move things along sure we have not taken outside money for any of our expansions we just haven't i mean we've been offered you know on transformers all kinds of different things we don't need capital we need capital we don't need anyone else's we want to control our own destiny and i think it's extremely important that we have the balance sheet where we can do those things and enhance um what they're able to accomplish but as far as at this point us putting in capital into you know an asset such as data center i can't see it um we did we can do things in other ways and the company what we see going forward based on our ability to deploy capital in the core business um i like what i see there much more than trying to invest in something that that we don't you know that's not

core to us that's how i see it thank you our next question is from brian brophy from stifle nicholas

if you'd like to unbeat your line and ask your question buddy um nice quarter appreciate you taking the question uh duke you mentioned you mentioned previously you're seeing a tight craft labor market i guess can you talk about some of the areas of your business where you're seeing

more or less tightness currently thanks uh i mean i it's across the board you know um i think you know we've got to do a good job of getting pipelines of craft in here i was in dc yesterday with veterans and energy and i i can only say like we're working hard at building these pipelines into the company and we've got to get out and promote it and make sure that we stay in front of it and our colleges and campuses and all the things working with our unions and non-unions everything that we're doing I think will help us but it is tight you know I would say anything around the data center stuff is probably the tightest market at this point you know utility type transmission big transmission things like that hasn't really started yet You'll see that in the back half. Distribution is kind of modest growth in that. Telecom is moving the right direction. I think you'll start to see fiber splashes, things like that get tight. But in general, it's good. We know where it's going. We see it. We're investing in the right spots, and we'll take advantage of those markets.

Our next question is from Nick Amacucci from Evercore. Please unmute your line.

Good morning, guys. Just a quick one for me. As we kind of saw at the end of last week, just wanted to get a sense of kind of the ability to kind of push the button on executing on more of the more renewables projects, just given that we have now some guidance, albeit preliminary, but on the FEOC side. Have you guys seen kind of, have the conversations kind of picked up, you know, granted over the past week, just with regards to those and just kind of moving those things forward?

Yeah, I mean, I'll let Jisri come in as well. But from what I see, you know, we continue and have continued to stay, you know, kind of double digit type growth plus in our renewable business. And we can see out, you know, through 2030. I'm not concerned with that business. it's you know there's always going to be a fiac there's always going to be something in that business that it's noisy and we have to operate through it when you think about solar and batteries it's the very fastest thing we can put on on the grid right now in many areas so we can build it fast we don't we don't have to wait on turbines or anything like that so so i do think there's opportunity there and you'll continue to see that and it'll be a form of energy um for the foreseeable future you know wind's getting some bad press but i you'll still see wind get built and not under some sort of um political pressure and all kinds of different things but it's still getting built underneath and and it's needed to fill the generation gap and jay sure you let you comment

under us no the only thing i would add is the customers we've been working with as you know as we've been they've been very very strategic about getting ahead of a lot of these political dynamics with safe harboring and the projects in which they're working and having a robust enough pipeline to deal with some of these things that are just endemic to the renewables industry so we have continued to work with them on a multi-year basis and so it's allowed us to be comfortable with where we sit in our renewables expectations we'll of course continue to work with them over the next several years as the dynamics around the fiac and other things become more more clear but as of now it's it's as duke said it's just business as usual we continue to see good growth there there will be times of course where our customers will have to deal with certain political dynamics but there these are customers that are comfortable doing so and we've intentionally stayed with customers who can do so and who have a track record of over a long period of time of managing these things and the demand continues to be very very strong for those for those projects our customers are working on so uh it's it's it's just business as usual on the

renewable side our next question is from adam thalema from thompson davison co please unmute your line and ask your question hey good morning guys great quarter hey there was a

A comment in the prepared remarks about large transmission projects becoming increasingly visible. Can you just compare what's in backlog for large transmission to what you see out there in the bidding environment?

I'm not sure how to define it. What's large now these days. So I would just say we have no significant 765, no 765, which I consider those large projects. um in the backlog i don't there's not a lot of large dynamics in there it's more programmatic um spin more more so than any kind of main project that i'm aware of it's it's minimal it's i mean look we see it coming we see it stacking we've talked about it i think you'll see his book later half 2027 significant amount of 765 and other types of work it's not just 765 it's 345 500 data centers uh i don't know generation it's stacking um i feel confident that there'll be some chunky awards all the way through um the next three to five years we're just getting started i know the backlog's growing i see it too we're taking market share we're doing the right things we're focused on the base business we're not letting off of it and the management team's highly focused on not giving up on that base business in fact growing

it our next question is from justin hawk from bird please unmute your line and ask your question

great um good morning everybody um i i wanted to ask about the uh the custom fab capabilities that came from this acquisition um this morning i guess at tri-city is that um i guess is that all new to you or did you have some uh fabrication capabilities from cupertino or or elsewhere before this and Maybe just talk about the capacity you have there, and also, is that all being done for self-performed construction work, or is that something where you're selling those prefabs to others to use?

Yeah, we did have some fab capabilities come in with Tri-City, the great group there. We like what they were doing. That just adds to the 3 million square feet we already have. So we have significant amount of fabrication prefab. We call it pre-manufactured because it is manufactured. So I do think when we look at it, it's a little different. Everybody specs a little different. So we're fabricating really from a manufacturing capability, engineer type fabrication. So it's a little unique. I would go back and tell you Cupertino over a decade ago was the first mover in this. And we have a lot of experience with fabrication. and prefabrication what goes wrong and what goes right and we'll continue to work with our customers whoever the customer may be we're certainly willing to fab for others if that's if that's what the market is you know that we say it all the time it's fungible in many ways those facilities are fungible but there's no shortage of people wanting to shore up capacity for you know three five decade type arrangements so we're happy to do that as well our next question is

from chad dillard from bernstein please unmute your line and ask a question hey good morning

guys uh so my questions on the uh architecture shift from uh 54 volt to 800 volt uh dc for data centers uh just curious how that changes uh quantus tam um and you know maybe you can talk about whether you see any impacts on the front of meter but probably more so behind the meter and then secondly um you know as you re-engage in the the power generation side for natural gas uh can you talk about the opportunities you're seeing uh during the mix between you know front

versus behind the meter yeah so voltage going to dc some of the architecture that nvidia's put out you know that's a lot of the learning chips or you know you can see anyone using the video going to those type architectures i believe we're in front of that i don't see it changing our tam at all you make it you may get more medium voltage type arrangements in there still a lot of low voltage type things i you know we've done a lot of research on it we feel good we work with work with the the video and others to make sure that we see where they're going and make sure we have the craft necessary so i i feel comfortable with that but i do i don't think like when you think through it there's still a lot of the older architecture that will be used throughout i you know it's it's something that we'll have both when we think through it so both are growing significantly we're in front of that architecture i do see i do think that when you look through the intermittency of the chips much better to put it on the utility um let the utility take the that intermittency it's smarter it's better it's just the amount of you know you've got constraints in the queues and things like that people are trying to go behind the meter simply because you can't get to the meter so that that's it'll it'll be both sides of this there's some you know good things and bad things on both in regulatory environments um you know we got to get the regulations right and make sure that the rate payer is not the one that's got the bill that's you know got the tab that is not happening today um i think the utilities you can come in and they've done a fantastic job of regulatory making sure that um the technology is paying their way and technology wants to pay their way so all the nonsense around that is just you know what i consider verbiage is out there today on social media wherever it is and normally around some political aspect of it it's not reality. So, look, we see opportunities on both sides. We'll participate either side. But I do think most off-grid, a lot of off-grid will be used for your backup power as you move generation on. So, you'll start with 100, 200 megs and then back up for a bit and then come on with utility-type solutions. So, that's what I see. As far as natural gas, natural gas, you know, we're still in there um we've never left it'll be a part of the business that we see it and you know it's certainly backing up some of these uh we're getting involved in them where they're backing up some of the hyperscalers and data centers so yeah our next question is from

liam burke from b riley please unmute your line and ask your question thank you good morning um

In 2026, on the M&A pipeline, Duke, are you seeing sufficient opportunities to either add to your base business or large enough to actually make a difference as the business continues to get critical mass here?

Yeah, I would say every acquisition makes a difference. But when I think about it, yes, we see opportunities, you know, as far out as we can see, as far as good businesses. I can't tell you the cadence of businesses that I didn't, you know, we've known. I've known the Wilson family my whole career and super family, happy to have them here. They fit here culturally, very excited. they give us some underground capabilities out in the east which i think is fantastic as well as shore up some things in the west i you know some of these things you don't see coming we we have a good reputation where i believe culturally we want a certain type of company there's no shortage of people wanting to sell their businesses on any given day i promise like they're they're out there how we look at it we're very selective and we'll all of our strategies we'll lay it out in april um march i guess kip he won't let me talk about it much but i'm in general pretty excited about that as well talking about kind of what we see and i i see it the same type of cadence it may be lumpy um along the way we may not do a deal in a year i don't um so i i just think we'll continue to be selective and follow the paths that provide the solutions to our clients. When we're looking at this, someone's asking us to do something typically, and we need the platform to provide the solutions. You saw us invest organically in our vertical supply chain. We need to do it. We're going to do it. It's something that's, you know, what I feel like the demand is coming in, and we have to, you know, make sure that we can meet the demand. So that said, we're taking opportunities to both organically invest as well as look at acquisitions from platforms to both of them. They all add up.

Our next question is from Phil Shen from Roth Capital Partners. Please unmute your line and ask your question.

Morning, Duke. Jayshree, thanks for taking my questions. You're building so much of the infrastructure for AI. Can you talk through any initiatives you guys have to take advantage of AI to lower your OPEX? Can AI meaningfully change your outlook for OPEX in the coming year or two? And then as it relates to, you know, bidding and booking dynamics, you know, Duke, I think you were sharing that you guys are booked out through 2030 for renewables. Was wondering if you might be able to share kind of similar color for the other segments. And then ultimately, you know, how much work are you guys turning down?

Yeah, I want to clarify. I don't think I said we're booked out. I said we're booking through just to make sure that we get on the same page there. We're certainly taking advantage of. We can stack and we're not booked by any means. We'll take all comers on renewables. What was the other question? Sorry, you got me off. Oh, yeah. So, yeah, look, we would have our head in the sand if we weren't looking at ai what it could do for the company we're already seeing ways to you know i think when we look at mna we're not looking at engineering anymore because i think ai is going to be significant there and it's going to it's going to really affect the way we we have 2 000 plus engineers um and we'll definitely incorporate ai into it and so i i just i think there's a lot of things that will change and we're in front of that it's something i'm highly focused on both from um cost and and the way that we can get more productive in the field um you know there's a social aspect to this as well i i think you know when you really look at what the impacts are on these companies it it's uh there's hard decisions to make and you know we're trying to make sure we're a growth company i don't really fire people we grow people hire people. And so we've got to make sure as we displace that we have avenues for people to move into different skill sets. And that's what we're doing here. So I think every bit of savings you get, we're pouring back into AI initiatives. That was our final question. I will now hand back

to Kip Rupp, Vice President, Investor Relations, for closing remarks. I'll be Kip. I want to thank

men and women in the field they're they're the very best in the world they have an absolute performance mindset and they are quantum and i want to thank you for participating in our conference call we appreciate your questions and ongoing interest in quantum services thank you this concludes our call