MYR Group Inc (MYRG) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome to the MYR Group second quarter 2024 earnings results conference call. (Operator Instructions) Today's conference is being recorded.

大家早安，歡迎參加 MYR 集團 2024 年第二季獲利電話會議。（操作員指示）今天的會議正在錄音。

At this time, for opening remarks and introductions, I would like to turn the call over to David Gutierrez of Dresner Corporate Services. Please go ahead, David.

現在，我想將電話轉給 Dresner Corporate Services 的 David Gutierrez 進行開場演講和介紹。請繼續，大衛。

Thank you, and good morning, everyone. I'd like to welcome you to the MYR Group conference call to discuss the company's second quarter results for 2024, which were reported yesterday. Joining us on today's call are Rick Swartz, President and Chief Executive Officer; Kelly Huntington, Senior Vice President and Chief Financial Officer; Brian Stern, Senior Vice President and Chief Operating Officer of MYR Group's Transmission and Distribution segment; and Don Egan, Senior Vice President and Chief Operating Officer of MYR Group's Commercial and Industrial segment.

謝謝大家，大家早安。歡迎您參加 MYR 集團電話會議，討論該公司昨天公佈的 2024 年第二季業績。加入我們今天電話會議的還有總裁兼執行長 Rick Swartz；凱莉‧亨廷頓，資深副總裁兼財務長； Brian Stern，MYR 集團輸電和配電部門資深副總裁兼營運長；以及 MYR 集團商業和工業部門高級副總裁兼營運長 Don Egan。

If you did not receive yesterday's press release, please contact Dresner Corporate Services at 312-780-7204, and we will send you a copy or go to the MYR Group website, where a copy is available under the Investor Relations tab. Also, a webcast replay of today's call will be available for seven days on the Investor page of the MYR Group website at myrgroup.com.

如果您沒有收到昨天的新聞稿，請致電 312-780-7204 聯絡 Dresner Corporate Services，我們將向您發送一份副本或訪問 MYR Group 網站，您可以在「投資者關係」標籤下取得副本。此外，今天電話會議的網路廣播重播將在 MYR 集團網站 myrgroup.com 的投資者頁面上提供，為期 7 天。

Before we begin, I want to remind you that this discussion may contain forward-looking statements. Any such statements are based upon information available to MYR Group's management as of this date, and MYR Group assumes no obligation to update any such forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.

在我們開始之前，我想提醒您，本次討論可能包含前瞻性陳述。任何此類聲明均基於 MYR 集團管理層截至目前所掌握的信息，MYR 集團不承擔更新任何此類前瞻性聲明的義務。這些前瞻性陳述涉及風險和不確定性，可能導致實際結果與前瞻性陳述有重大差異。

Accordingly, these statements are no guarantee of future performance. These risks and uncertainties are discussed in the company's annual report on Form 10-K for the year ended December 31, 2023, the company's quarterly report on Form 10-Q for the second quarter of 2024 and in yesterday's press release.

因此，這些陳述並不能保證未來的表現。這些風險和不確定性在公司截至2023年12月31日的10-K表格年度報告、公司2024年第二季度10-Q表格季度報告以及昨天的新聞稿中進行了討論。

Certain non-GAAP financial information will be discussed on the call today. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in yesterday's press release. With that said, let me turn the call over to Rick Swartz.

今天的電話會議將討論某些非公認會計準則財務資訊。昨天的新聞稿中列出了這些非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節表。話雖如此，讓我把電話轉給里克·斯沃茨。

Thanks, David. Good morning, everyone. Welcome to our second quarter 2024 conference call to discuss financial and operational results. I will begin by providing a summary of the second quarter results and then we'll turn the call over to Kelly Huntington, our Chief Financial Officer, for a more detailed financial review.

謝謝，大衛。大家早安。歡迎參加我們的 2024 年第二季電話會議，討論財務和營運績效。我將首先提供第二季業績摘要，然後我們將把電話轉給我們的財務長凱利亨廷頓，以進行更詳細的財務審查。

Following Kelly's overview, Brian Stern and Don Egan, Chief Operating Officers for our T&D and C&I segments, will provide a summary of our segment's performance and discuss some of MYR Group's opportunities going forward. I will then conclude today's call with some closing remarks and open the call up for your questions.

在 Kelly 的概述之後，我們 T&D 和 C&I 部門的首席營運長 Brian Stern 和 Don Egan 將總結我們部門的業績，並討論 MYR Group 的一些未來機會。然後，我將以一些結束語結束今天的電話會議，並開始提問。

Our results for the quarter were negatively impacted within our T&D segment by clean energy projects that are all scheduled to reach mechanical completion by the end of the year and by one project within our C&I segment that is scheduled to reach substantial completion during the fourth quarter of this year. However, across our business segments, other project execution remains strong.

我們本季的業績受到 T&D 部門內清潔能源項目的負面影響，這些項目均計劃在年底前實現機械完工，而我們的 C&I 部門內的一個項目計劃於第四季度基本完工。然而，在我們的業務部門中，其他專案執行仍然強勁。

Bidding activity remains healthy, and we continue to strategically expand on existing partnerships as well as capture new opportunities throughout the markets we serve for continued long-term growth. The ever-growing demand for data centers fueled in part by the increasing prominence of artificial intelligence continues to offer exciting growth opportunities for our business now and into the future.

投標活動保持健康，我們繼續策略性地擴大現有合作夥伴關係，並在我們所服務的市場中抓住新的機會，以實現持續的長期成長。人工智慧的日益突出在一定程度上推動了對資料中心不斷增長的需求，繼續為我們現在和未來的業務提供令人興奮的成長機會。

Our recent Goldman Sachs equity research report on AI data centers and the coming US power demand surge released in April forecast US power demand to experience growth, not seen in a generation. The report predicts the utilities need $50 billion of capital investments in new power generation capacity to meet the forecasted 47 gigawatts of additional load by 2030.

我們最近在 4 月發布的關於人工智慧資料中心和即將到來的美國電力需求激增的高盛股票研究報告預測，美國電力需求將出現一代人以來從未見過的增長。該報告預測，到 2030 年，公用事業公司需要對新發電能力進行 500 億美元的資本投資，以滿足預計的 47 吉瓦的額外負載。

Thanks to our breadth of capabilities and strong customer relationships MYR Group is well positioned to win contracts for new data center work and help build the electrical infrastructure required to power those facilities.

憑藉我們廣泛的能力和強大的客戶關係，MYR Group 處於有利地位，能夠贏得新數據中心工程的合同，並幫助建設為這些設施供電所需的電力基礎設施。

This quarter in our C&I segment, Western Pacific Enterprises was awarded a transportation project in Canada valued at approximately $170 million further solidifying the long-standing working relationships in the region. Additionally, our T&D segment won several master service agreements for substation, transmission and distribution work across the Midwest and in the Carolinas, Florida and Kentucky.

本季度，在我們的 C&I 部門，Western Pacific Enterprises 獲得了加拿大價值約 1.7 億美元的運輸項目，進一步鞏固了該地區的長期合作關係。此外，我們的輸配電部門也贏得了中西部以及卡羅萊納州、佛羅裡達州和肯塔基州變電站、輸電和配電工作的多項主服務協議。

Overall, the increased electrification and investments being made in the electrical infrastructure are encouraging and highlight why we believe our chosen markets are poised for ongoing success for years to come. Now Kelly will provide details on our second quarter 2024 financial results.

總體而言，電氣化程度的提高和對電力基礎設施的投資令人鼓舞，並凸顯了為什麼我們相信我們所選擇的市場將在未來幾年持續取得成功。現在，凱利將提供我們 2024 年第二季財務業績的詳細資訊。

Thank you, Rick, and good morning, everyone. Our second quarter 2024 revenues were $829 million, which represents a decrease of $60 million or 6.7% compared to the same period last year. Our second quarter T&D revenues were $458 million, a decrease of 9% compared to the same period last year.

謝謝你，瑞克，大家早安。我們 2024 年第二季的營收為 8.29 億美元，比去年同期減少 6,000 萬美元，成長 6.7%。我們第二季的輸配電收入為 4.58 億美元，比去年同期下降 9%。

The breakdown of T&D revenues was $282 million for transmission and $176 million for distribution. T&D segment revenues decreased due to a decrease of $40 million in revenue on transmission projects and a decrease of $6 million in revenue on distribution projects.

T&D 收入細分為輸電收入 2.82 億美元，配電收入 1.76 億美元。由於輸電項目收入減少 4,000 萬美元，配電項目收入減少 600 萬美元，輸電與輸電部門收入下降。

Work performed under master service agreements continue to represent approximately 50% of our T&D revenues. C&I revenues were $371 million, a decrease of 4% compared to the same period last year. The C&I segment revenues primarily decreased due to the delayed start of a few projects, which are now anticipated to start later this year, as discussed last quarter.

根據主服務協議執行的工作繼續占我們 T&D 收入的約 50%。C&I營收為3.71億美元，比去年同期下降4%。工商業部門的收入下降主要是由於一些項目的延遲啟動，正如上季度所討論的，這些項目目前預計將在今年稍後啟動。

Our gross margin was 4.9% for the second quarter of 2024 compared to 10.1% for the same period last year. The decrease in gross margin was primarily related to clean energy projects in our T&D segment, the unfavorable impact of a C&I project as well as an increase in costs associated with labor, project inefficiencies and schedule compression on certain projects.

2024 年第二季我們的毛利率為 4.9%，去年同期為 10.1%。毛利率下降主要與輸配電業務的清潔能源項目、工商業項目的不利影響以及與勞動力、項目效率低下和某些項目的進度壓縮相關的成本增加有關。

These margin decreases were partially offset by favorable change orders, better-than-anticipated productivity, a favorable job closeout, favorable joint venture results and favorable materials pricing on a project. T&D operating loss margin was 1.8% for the second quarter of 2024 compared to operating income margin of 7.5% for the same period last year.

這些利潤率下降被有利的變更訂單、好於預期的生產力、有利的工作結束、有利的合資企業業績以及有利的專案材料定價所部分抵消。2024 年第二季 T&D 營運虧損率為 1.8%，而去年同期營運利潤率為 7.5%。

The decrease was primarily related to clean energy projects and was due to contractual disputes, labor and project inefficiencies, higher labor and contract-related costs and unfavorable weather conditions. In addition, schedule extensions caused by owner-furnished panel delays led to increased costs on two clean energy projects for which we are pursuing change orders. Combined, the gross profit changes related to clean energy projects negatively impacted operating income as a percentage of revenues by 10.5%.

這一下降主要與清潔能源項目有關，原因包括合約糾紛、勞動力和項目效率低下、勞動力和合約相關成本上升以及不利的天氣條件。此外，由於業主提供的面板延誤而導致工期延長，導致我們正在尋求變更訂單的兩個清潔能源項目的成本增加。綜合而言，與清潔能源項目相關的毛利變化對營業收入佔收入的比例產生了 10.5% 的負面影響。

Many of these projects have reached mechanical completion and the remaining projects are anticipated to reach mechanical completion in the third and fourth quarters of 2024. Additionally, T&D operating income margin was negatively impacted by higher fleet depreciation and maintenance expenses and a decrease in work in progress. C&I operating income margin was 0.4% for the second quarter of 2024 compared to 3.3% for the same period last year.

其中許多項目已機械竣工，其餘項目預計將於 2024 年第三季和第四季機械竣工。此外，運輸與發展業務利潤率也受到機隊折舊和維護費用增加以及在製品減少的負面影響。2024 年第二季工商業營業利潤率為 0.4%，而去年同期為 3.3%。

A single project that is anticipated to reach substantial completion during the fourth quarter of 2024, had a negative impact of 3.6% on C&I operating income margin during the second quarter. The loss on this project was primarily due to scope additions, increased labor costs related to schedule compression and lower productivity due to access and workflow issues.

預計將在 2024 年第四季基本完成的單一項目對第二季工商業營業利潤率產生了 3.6% 的負面影響。該專案的損失主要是由於範圍增加、與進度壓縮相關的勞動力成本增加以及由於存取和工作流程問題導致的生產力降低。

C&I operating income margin was also negatively impacted by an increase in costs associated with labor, project inefficiencies and schedule compression on certain projects as well as higher contingent compensation expense related to a prior acquisition. These decreases were partially offset by favorable change orders, better-than-anticipated productivity, a favorable job closeout, favorable joint venture results and favorable materials pricing on a project.

C&I 營業利潤率也受到與勞動力相關的成本增加、專案效率低下和某些專案的進度壓縮以及與先前收購相關的或有補償費用較高的負面影響。這些下降被有利的變更訂單、好於預期的生產力、有利的工作結束、有利的合資企業業績以及有利的專案材料定價所部分抵消。

Second quarter 2024 SG&A expenses were $62 million, an increase of $4 million compared to the same period last year. The increase was primarily due to an increase in contingent compensation expense related to a prior acquisition and an increase in employee-related expenses to support future growth partially offset by a decrease in employee incentive compensation costs.

2024 年第二季 SG&A 費用為 6,200 萬美元，比去年同期增加 400 萬美元。這一增長主要是由於與先前收購相關的或有薪酬費用增加以及為支持未來增長而增加的與員工相關的費用，但部分被員工激勵薪酬成本的減少所抵消。

Second quarter 2024 net loss was $15 million compared to net income of $22 million for the same period last year. Net loss per diluted share of $0.91 compared to net income per diluted share of $1.33 for the same period last year.

2024 年第二季淨虧損為 1,500 萬美元，而去年同期淨收入為 2,200 萬美元。稀釋後每股淨虧損為 0.91 美元，去年同期稀釋後每股淨收益為 1.33 美元。

Second quarter 2024 EBITDA was negative $5 million compared to $47 million for the same period last year. Total backlog as of June 30, 2024, was $2.54 billion, 7% lower than a year ago and a 5% increase from the first quarter of this year.

2024 年第二季 EBITDA 為負 500 萬美元，而去年同期為 4,700 萬美元。截至 2024 年 6 月 30 日，未完成訂單總額為 25.4 億美元，比去年同期減少 7%，比今年第一季增加 5%。

Total backlog as of June 30, 2024, consisted of $831 million for our T&D segment and $1.71 billion for our C&I segment. Second quarter 2024 operating cash flow was $23 million compared to operating cash flow of negative $21 million for the same period last year.

截至 2024 年 6 月 30 日，積壓訂單總額包括 T&D 部門的 8.31 億美元和 C&I 部門的 17.1 億美元。2024 年第二季營運現金流為 2,300 萬美元，去年同期營運現金流為負 2,100 萬美元。

The increase in cash provided by operating activities was primarily due to the timing of billings and payments associated with project starts and completions. Second quarter 2024 free cash flow was $3 million compared to negative free cash flow of $43 million for the same period last year, reflecting the increase in operating cash flow and lower capital expenditures.

經營活動提供的現金增加主要是由於與專案啟動和完成相關的帳單和付款時間。2024 年第二季自由現金流為 300 萬美元，而去年同期自由現金流為負 4,300 萬美元，反映出營運現金流的增加和資本支出的減少。

Moving to liquidity. We had approximately $270 million of working capital, $45 million of funded debt and $427 million in borrowing availability under our credit facility as of June 30, 2024. We have continued to maintain a strong funded debt-to-EBITDA leverage ratio of 0.3 times as of June 30, 2024.

轉向流動性。截至 2024 年 6 月 30 日，我們的信貸安排下擁有約 2.7 億美元的營運資金、4,500 萬美元的融資債務和 4.27 億美元的可用借款。截至 2024 年 6 月 30 日，我們持續維持 0.3 倍的強勁融資債務與 EBITDA 槓桿率。

We believe that our credit facility, strong balance sheet and future cash flow from operations will enable us to meet our working capital needs, support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares.

我們相信，我們的信貸額度、強勁的資產負債表和未來的營運現金流將使我們能夠滿足營運資金需求，支持我們業務的有機成長，尋求收購併伺機回購股票。

During the second quarter, we repurchased 117,000 shares at a weighted average price of $138 per share for a total expenditure of $16 million. As of June 30, 2024, we had approximately $59 million of remaining availability to repurchase shares.

第二季度，我們以每股 138 美元的加權平均價格回購了 117,000 股股票，總支出為 1,600 萬美元。截至 2024 年 6 月 30 日，我們還有約 5,900 萬美元的剩餘資金可用於回購股票。

I'll now turn the call over to Brian Stern, who will provide an overview of our transmission and distribution segment.

我現在將把電話轉給布萊恩·斯特恩（Brian Stern），他將概述我們的輸電和配電部門。

Thanks, Kelly, and good morning, everyone. As Kelly stated, operating margins were negatively impacted by clean energy projects in our T&D segment. Operating margins within our transmission and distribution portfolio had solid performance in the second quarter and our focus remains on quality execution of projects, expanding long-standing customer relationships, strategically pursuing new opportunities to strengthen and grow our market presence while overcoming near-term challenges in our clean energy portfolio.

謝謝，凱利，大家早安。正如凱利所說，我們輸配電部門的清潔能源專案對營業利潤率產生了負面影響。我們的輸配電產品組合的營業利潤在第二季度表現穩健，我們的重點仍然是專案的品質執行、擴大長期的客戶關係、策略性地尋求新的機會來加強和擴大我們的市場份額，同時克服近期的挑戰我們的清潔能源產品組合。

Healthy bidding activity continued in the second quarter as we monitor and selectively pursue projects of various sizes. Our team successfully completed -- competed and were awarded multiple alliance agreements this quarter.

隨著我們監控並有選擇地尋求各種規模的項目，第二季度繼續健康的投標活動。我們的團隊在本季度成功完成了競爭並獲得了多項聯盟協議。

L.E. Myers won MSAs for transmission and substation work in Indiana, Kentucky, Ohio and Florida as well as overhead and underground distribution projects in Nebraska. Great Southwestern Construction was also awarded MSAs for substation, transmission and distribution work in the Midwest, Florida and the Carolinas, while High Country Line Construction won two transmission projects in California.

L.E.邁爾斯贏得了印第安納州、肯塔基州、俄亥俄州和佛羅裡達州輸電和變電站工程以及內布拉斯加州架空和地下配電項目的管理協議。Great Southwestern Construction 還獲得了中西部、佛羅裡達州和卡羅來納州變電站、輸電和配電工程的 MSA，而 High Country Line Construction 則贏得了加州的兩個輸電項目。

As Rick mentioned earlier, the demand for electricity is only growing as new technologies continue to increase in everyday life. At 2024 white paper report on AI and data center energy consumption from the Electric Power Research Institute found that AI queries are estimated to require 10 times the electricity as traditional search engine queries.

正如里克之前提到的，隨著新技術在日常生活中的不斷增加，對電力的需求只會不斷增長。電力研究院2024年人工智慧與資料中心能耗白皮書報告發現，人工智慧查詢預計需要比傳統搜尋引擎查詢多10倍的電力。

The report forecasts data centers alone will grow to consume as much as 9.1% of US electricity generation annually by 2030 versus an estimated 4% today. MYR Group continues to serve as a knowledgeable and agile partner for our utility customers as they strive to meet this increasing electrification demand, helping build an improved infrastructure for the future.

該報告預測，到 2030 年，光是資料中心每年就將消耗美國發電量的 9.1%，而目前估計為 4%。MYR 集團將繼續作為我們的公用事業客戶知識淵博、靈活的合作夥伴，幫助他們努力滿足日益增長的電氣化需求，幫助未來建立改進的基礎設施。

In summary, a firm dedication to our clients and a strict adherence to our operating principles positions us well for success. And I thank all of our talented employees for their commitment and effort in making the success possible.

總之，對客戶的堅定奉獻和嚴格遵守我們的經營原則使我們能夠取得成功。我感謝我們所有才華橫溢的員工為實現成功所做的承諾和努力。

I will now turn the call over to Don Egan, who will provide an overview of our Commercial and Industrial segment.

我現在將把電話轉給 Don Egan，他將概述我們的商業和工業部門。

Thanks, Brian, and good morning, everyone. The decrease in gross margin in our C&I segment was primarily due to an unfavorable impact on a C&I project as a result of scope additions, increased labor costs related to scheduled compression and lower productivity due to access and workflow issues.

謝謝布萊恩，大家早安。我們的工商業部門毛利率下降的主要原因是範圍增加、與計劃壓縮相關的勞動力成本增加以及由於訪問和工作流程問題導致的生產率降低，對工商業項目產生了不利影響。

As Rick mentioned earlier, we were awarded a large-scale transit project in Canada with Western Pacific Enterprises. WPE has a proven history of successful large transit project execution. This project reflects the tremendous infrastructure investments being made in both the United States and Canada demonstrating the strength of the markets we serve and why we believe our business is poised for continued success.

正如 Rick 之前提到的，我們與 Western Pacific Enterprises 獲得了加拿大的一個大型交通項目。WPE 擁有成功執行大型交通計畫的歷史。該項目反映了美國和加拿大正在進行的巨大基礎設施投資，展示了我們所服務的市場的實力，以及為什麼我們相信我們的業務將持續成功。

Our other core markets also remain active with subsidiaries across the organization, continuing to perform essential work for our valued customers. Pharmaceuticals and health care facilities are strong markets with CSI, electrical contractors, working projects in California and Sturgeon Electric in Colorado and Arizona.

我們的其他核心市場也與整個組織的子公司保持活躍，並繼續為我們尊貴的客戶進行重要工作。製藥和醫療保健設施是 CSI、電氣承包商、加州的工作項目以及科羅拉多州和亞利桑那州的 Sturgeon Electric 的強大市場。

In addition, we were recently awarded projects for a new Civic Center in California and Air Force Base in Wyoming and a new data center campus in Colorado. Data centers continue to be a growth market for our business and one that we have decades of experience working in. The electricity consumption of these facilities is unprecedented.

此外，我們最近還獲得了加州新市政中心、懷俄明州空軍基地以及科羅拉多州新資料中心園區的專案。資料中心仍然是我們業務的一個成長市場，也是我們擁有數十年工作經驗的市場。這些設施的用電量是前所未見的。

New data center campuses are being built with capabilities ranging from 100 to 1,000 megawatts, roughly equivalent to the load consumed by 80,000 to 800,000 homes. In addition, we continue to see our existing clients retrofitting their facilities to meet the increased power density and cooling requirements of artificial intelligence.

正在建造的新資料中心園區的容量為 100 至 1,000 兆瓦，大致相當於 80,000 至 800,000 個家庭消耗的負載。此外，我們繼續看到現有客戶對其設施進行改造，以滿足人工智慧不斷提高的功率密度和冷卻要求。

To conclude, our chosen core markets are healthy and the strength of our customer relationships continue to generate additional opportunities. This is thanks to our talented employees and their daily dedication to executing projects with a safety-first mindset. By living our core values every day, our employees help us stand as an industry leader in safety and project execution that our customers have come to rely on.

總而言之，我們選擇的核心市場是健康的，我們強大的客戶關係繼續創造更多的機會。這要歸功於我們才華橫溢的員工以及他們每天以安全第一的心態致力於執行專案。透過每天實踐我們的核心價值觀，我們的員工幫助我們成為安全和專案執行方面的行業領導者，贏得了客戶的信賴。

Thanks, everyone, for your time today. I will now turn the call back to Rick who will provide us with some closing comments.

謝謝大家今天抽出時間。我現在將把電話轉回給里克，他將為我們提供一些結束語。

Thank you for those updates, Kelly, Brian and Don. Although our second quarter performance was negatively impacted by a relatively small group of underperforming projects, we continue to successfully execute our portfolio of projects, reflecting the resiliency of our core markets and our ability to strengthen and expand our customer relationships.

感謝凱利、布萊恩和唐的最新消息。儘管我們第二季的業績受到一小部分錶現不佳的專案的負面影響，但我們繼續成功執行我們的專案組合，反映了我們核心市場的彈性以及我們加強和擴大客戶關係的能力。

We will continue to focus on bidding opportunities and projects that reflect our operating principles and breadth of capabilities. We continually emphasize meeting the needs of our customers as they navigate dynamic market conditions and the changing energy landscape, while investing in and developing our team members to maintain our position as a leader in the industry. This fortifies our foundation to grow our business and provides customers and prospects with a strong and agile partner.

我們將繼續關注反映我們經營原則和能力廣度的投標機會和項目。我們不斷強調滿足客戶在動態市場條件和不斷變化的能源格局中的需求，同時投資和培養我們的團隊成員以保持我們作為行業領導者的地位。這鞏固了我們發展業務的基礎，並為客戶和潛在客戶提供了強大而敏捷的合作夥伴。

I would like to thank our employees for their invaluable contributions and shareholders for your continued support of MYR Group. And I look forward to connecting with you in future quarters.

我要感謝我們的員工所做的寶貴貢獻，以及股東對 MYR 集團的持續支持。我期待在未來幾個季度與您聯繫。

Operator, we are now ready to open the call up for comments and questions.

接線員，我們現在準備好徵求意見和問題。

(Operator instructions) Sangita Jain, KeyBanc Capital Markets.

（操作員說明）Sangita Jain，KeyBanc 資本市場。

So Rick, on the solar project that you called out this quarter that had the delays and the cost overruns, are these in the same territories where you also said that the market was getting competitive and that you would step away from bidding projects there?

那麼，里克，關於您本季指出的出現延誤和成本超支的太陽能項目，這些項目是否位於您也說過市場競爭越來越激烈並且您將放棄那裡的項目競標的同一地區？

If they're in some of those same markets, yes.

如果他們位於其中一些相同的市場，是的。

So then can I follow up by asking that if -- does this give you an indication that you kind of want to stay away from utility-scale solar for now? Or do you still feel okay bidding in other markets?

那麼我可以接著問，這是否表明您現在想遠離公用事業規模的太陽能？或者您仍然覺得在其他市場出價還可以嗎？

For us, I think we're going to continue to be selective in the environment we're in right now. It's not like we have to change this work. We talked about the activity of our other core markets. But we've been doing it for a long time, and it's something at the right price and with the right customer, we'll take on additional work, but very selectively.

對我們來說，我認為我們將繼續在目前所處的環境中進行選擇。這並不是說我們必須改變這項工作。我們討論了其他核心市場的活動。但我們已經這樣做了很長一段時間，並且以合適的價格和合適的客戶，我們將承擔額外的工作，但非常有選擇性。

Okay. And if I can ask a follow-up on operating margins in light of 2Q, should we still expect that you can exit in T&D at the 7% and C&I at that 4%, which is the low end of your long-term outlook?

好的。如果我可以詢問第二季營業利潤率的後續情況，我們是否仍然可以預期您可以以 7% 的水平退出 T&D，以 4% 的水平退出 C&I，這是您長期前景的低端？

Can we exit that for the year? Is that your question?

我們可以在今年退出嗎？這是你的問題嗎？

Yes. Yes, exit at that rate, maybe.

是的。是的，也許以這個速度退出。

Well, I think our performance will be in that midrange on the T&D side. It will be on that lower range on the C&I, barring these projects. So you have to exclude these projects and that's where we see it going for the next couple of quarters as we get these projects behind us. There can always be some additional impacts or changes on the ongoing projects we have that are troubled projects. But I think they've all been identified, but that could affect us going forward a little bit.

嗯，我認為我們在 T&D 方面的表現將處於中等水平。除非這些項目，否則 C&I 的價格將處於較低範圍。因此，你必須排除這些項目，這就是我們在接下來的幾個季度中看到的情況，因為我們將這些項目拋在了身後。我們正在進行的問題項目總是可能會產生一些額外的影響或變化。但我認為他們都已經被識別出來，但這可能會對我們的前進產生一些影響。

Ati Modak, Goldman Sachs.

阿蒂·莫達克，高盛。

So I know you've spoken about the backlog tends to be lumpy, but can you talk about the outlook that you're seeing on the T&D side in particular given it sounds like there are some market expectations for softness in the back half of the year, so I would love to get your perspective.

所以我知道你已經談到積壓往往是不穩定的，但是你能談談你在 T&D 方面看到的前景嗎，特別是考慮到市場對下半年的疲軟有一些預期年，所以我很想听聽您的看法。

Yes. For us, we're seeing a lot of activity, I would say, when it comes to small and midsized projects. I think when you're looking at longer-term projects, lots of long-term opportunities, I think they've been a little slower to come to market. And any time you receive a large project, it's going to be fourour to six months before you start seeing any kind of revenue burn off of that. So I think there's more to come on that.

是的。我想說，對我們來說，當涉及中小型專案時，我們看到了很多活動。我認為，當你專注於長期專案、大量長期機會時，我認為它們進入市場的速度要慢一些。每當你收到一個大型專案時，你都需要四到六個月的時間才能看到任何收入的消耗。所以我認為還有更多的事情要做。

As I said, lots of activity in the marketplace. So long term, we see it as a great market. We need a few of these larger projects to roll out and happen. And I think they're scheduled to do that.

正如我所說，市場上有很多活動。從長遠來看，我們認為這是一個巨大的市場。我們需要一些較大的專案來推出和實施。我認為他們計劃這樣做。

So it's a good thing to see. We've got lots of bidding activity. So again, long term, good, but short term, it could be a little lumpy.

所以這是一件好事。我們有很多招標活動。所以，從長期來看，情況很好，但從短期來看，情況可能會有些不穩定。

Got it. And then for the clean energy projects where there were owner-related delays. I'm just wondering if there are provisions that allow you some level of protection, whether it's contractual or other ways to mitigate that? And then the change orders, how should we think about that offsetting through the remainder of the year?

知道了。然後是清潔能源項目，其中存在與業主相關的延誤。我只是想知道是否有規定可以為您提供一定程度的保護，無論是合約還是其他方式來減輕這種情況？然後是訂單變更，我們應該如何考慮在今年剩餘時間內抵消這種情況？

I think for us, these projects, any time there's delays on projects or acceleration or different things that can happen, I think there's always side for potential litigation. Though you have a contract that covers certain items, does it cover every item in there?

我認為對我們來說，這些項目，任何時候項目出現延誤或加速或可能發生不同的事情，我認為潛在的訴訟總是可能的。儘管您的合約涵蓋了某些項目，但它是否涵蓋了其中的所有項目？

And then how does it affect you on a project? So for us, it's weighing all that. Continuing to have discussions with the customer and then seeing where that settles up.

那麼它對你的專案有何影響？所以對我們來說，它正在權衡這一切。繼續與客戶討論，然後看看結果如何。

I would say, historically, we've been pretty good at being able to settle stuff without going to litigation. But on projects like this, you never know.

我想說，從歷史上看，我們一直很擅長在不訴諸訴訟的情況下解決問題。但對於這樣的項目，你永遠不知道。

So again, I think we've got a good position to go to litigation, if we need. Some of these items that we've talked about are well beyond anything that we could anticipate or would really solve on our own. So I think we'll continue to monitor it and see where it goes.

再說一次，我認為如果需要的話，我們有一個很好的位置可以提起訴訟。我們討論過的其中一些問題遠遠超出了我們可以預見或真正能夠自行解決的任何問題。所以我想我們會繼續監控它，看看它會走向何方。

Justin Hauke, Baird.

賈斯汀·豪克，貝爾德。

Yes. I guess I just wanted to -- I mean, the items you called out here for the charges, I mean, these are, in general, they're all the same issues you guys have been kind of fighting through the last several quarters and kind of in the same market and the same projects.

是的。我想我只是想——我的意思是，你們在這裡提出指控的項目，我的意思是，總的來說，這些都是你們在過去幾個季度一直在努力解決的問題，屬於同一市場和同一項目。

So I guess, was there some type of triggering event this quarter that just kind of took a broader review of the gross margin assumptions on that, that kind of triggered this broader write-down? I just am trying to understand the magnitude of the charges relative to the write-downs you've been having in the last several quarters.

所以我想，本季是否存在某種類型的觸發事件，只是對毛利率假設進行了更廣泛的審查，引發了更廣泛的減記？我只是想了解與過去幾季的減記相關的費用的大小。

Sure. If you look at -- as we said, the T&D results were really impacted by the clean energy projects. If you look at solar revenue within that, it's about 15% of our revenue in the first half was derived from solar. It's not like it's a huge percentage of our revenue. But when you look at that, that's where our impacts were.

當然。如果你看一下——正如我們所說，T&D 結果確實受到了清潔能源專案的影響。如果你看看其中的太陽能收入，我們上半年收入的大約 15% 來自太陽能。這並不是我們收入的很大一部分。但當你看到這一點時，你會發現這就是我們的影響所在。

And it was really due to a lot of different things we described them. I mean it was -- when you get into that side, it was really do with some solar panel delays which affected us. They were supposed to come in a lot sooner than they did, and that's affected us.

這實際上是由於我們對它們的描述有很多不同的原因。我的意思是——當你進入那一邊時，確實是因為一些太陽能電池板的延誤影響了我們。他們應該比他們來得早得多，這影響了我們。

And then you look at the other impacts that we had from weather and other things that affected us on those same projects. So a myriad of issues that affected us on those projects, but really hit us in one quarter.

然後你看看天氣和其他影響我們這些項目的其他因素對我們造成的其他影響。因此，有無數的問題影響了我們這些項目，但真正影響我們的是一個季度。

So it wasn't like we're seeing it across all of our business, just within that -- those projects we described. And then on the C&I side, I think the impact really had to do with one project that we're continuing to potentially go into litigation on that one. But again, we worked with this client quite a bit, and we've been able to solve issues in the past. So we'll see where it goes from here.

所以我們並沒有在我們所有的業務中看到它，只是在我們描述的那些項目中看到它。然後在 C&I 方面，我認為影響確實與一個項目有關，我們可能會繼續對該項目提起訴訟。但同樣，我們與該客戶進行了大量合作，並且我們過去已經能夠解決問題。所以我們將看看它從這裡走向何方。

Okay. I guess my second question is just on this -- the $170 million transportation project that you won in Canada, just maybe when is that expected to start kind of the duration of it? Any details on that just to kind of think about how that (inaudible) that is a larger project for you.

好的。我想我的第二個問題是關於這個——你們在加拿大贏得的 1.7 億美元的交通項目，也許預計什麼時候開始？有關於此的任何細節只是想一下（聽不清楚）這對您來說是一個更大的項目。

That's a larger project. We've done transportation projects of similar size. So it's not something -- and it's a longer-term project. So it's approximately a 3.5- to four-year project that will finish within that time frame. So it's not like you have a huge turn in every year.

那是一個更大的項目。我們已經完成了類似規模的交通項目。所以這不是什麼大事，而是一個長期計畫。因此，這大約是一個為期 3.5 至 4 年的項目，將在該時間範圍內完成。所以並不是每年都有巨大的轉變。

A couple of years ago, we finished going up that we did in Colorado, and it was over a $100 million project, and it was over the same time frame.

幾年前，我們完成了在科羅拉多州的項目，這是一個價值超過 1 億美元的項目，而且是在同一時間段內完成的。

And that starts next year?

那是從明年開始嗎？

Yes.

是的。

Brian Brophy, Stifel.

布萊恩·布羅菲，斯蒂菲爾。

Just curious how you're thinking about revenue guidance for the rest of the year. Last quarter, you talked about flat for both segments. Just curious how you're thinking about it today.

只是好奇您如何考慮今年剩餘時間的收入指導。上個季度，您談到了這兩個細分市場的持平。只是好奇你今天是怎麼想的。

Yes. I think when we look at that, solar, we're going to continue to be selective on that side of the business. It's been good additive in a couple of markets, but other ones were -- again, we talked about the competitiveness in that market where prices were right now. So we continue to see our backlog burn on the solar side with not that much addition on our T&D segment. So within our T&D segment, I should say.

是的。我認為，當我們考慮太陽能時，我們將繼續在這方面的業務上進行選擇性。它在幾個市場中是很好的添加劑，但在其他市場中，我們再次討論了當前價格所在市場的競爭力。因此，我們繼續看到太陽能方面的積壓訂單不斷增加，而輸配電領域的新增訂單卻沒有那麼多。所以我應該說，在我們的 T&D 部門。

So with that, we will see a decline in our revenue as we go forward as we're selective on that work. But I think on the other side to offset it a little bit, will be kind of the growth that we're seeing within the T&D segment. So hopefully, those projects continue to roll out, and we talked about small and midsize rolling out, and we're very successful on receiving those right now. It's just kind of that lull in large project side.

因此，隨著我們對這項工作的選擇性，我們將看到我們的收入下降。但我認為，另一方面，我們在輸配電領域看到的成長將稍微抵消這一影響。因此，希望這些專案能夠繼續推出，我們討論了中小型專案的推出，我們現在非常成功地接收了這些專案。這只是大型專案方面的一種平靜。

Okay. And just to be clear, that was offset by growth in C&I, correct?

好的。需要明確的是，這被工商業的成長所抵消，對嗎？

We do see growth in C&I, yes.

是的，我們確實看到了工商業的成長。

Okay. And then I guess just kind of at a high level, the goalpost, if you will, has been moved out a couple of times now when these challenged projects roll off I think we were previously expecting about midway through this year now towards the end of this year. I guess just what gives you guys confidence that we're not going to see another push out in terms of when these challenged projects roll.

好的。然後我想，在高水平上，當這些具有挑戰性的項目展開時，如果你願意的話，球門柱已經被移出幾次了，我想我們之前預計會在今年中期，現在接近年底今年。我想是什麼讓你們有信心，當這些充滿挑戰的項目推出時，我們不會看到另一次推出。

Yes. For us, it's the one additional C&I project. If you look at the other ones, they're rolling off as planned, there really was no change in that. And we highlighted that, without that, this one project impact on the C&I side, we would have been where we set our margin profile would be or a little above that low end of it. So I'd say that's going as planned.

是的。對我們來說，這是另一個工商業項目。如果你看看其他的，它們正在按計劃進行，實際上沒有任何變化。我們強調，如果沒有這個專案對工商業的影響，我們的利潤率就會達到或略高於其低端。所以我想說這一切都按計劃進行。

So we see those rolling off. On the T&D side, there was a couple of new projects that came in to kind of the solar impact side. But it was all solar related. And we've got good visibility on what we have out there to finish. So I don't see any changes coming as far as additional projects coming into that at this time.

所以我們看到這些正在減少。在輸配電方面，有幾個新項目涉及太陽影響方面。但這都與太陽能有關。我們對要完成的工作有很好的了解。因此，我認為目前不會有任何其他項目的變化。

But we do know -- we do have to get these projects behind us. So those are really the changes. Other than that, the core T&D market was right in our midrange of where we said it should be.

但我們確實知道——我們確實必須支持這些項目。這些才是真正的改變。除此之外，核心輸配電市場正好處於我們所說的中間位置。

(Operator Instructions) Jon Braatz, Kansas City Capital.

（操作員說明）Jon Braatz，堪薩斯市首府。

Rick, when you look at the projects that gave you problems in the quarter, was -- how much of that might was an onus on your part that maybe you didn't perform or execute as well as you would have thought. Can you parse that out between sort of the internal factors versus external?

里克，當你查看本季為你帶來問題的項目時，你會發現——其中有多少可能是你的責任，也許你沒有執行或執行得像你想像的那樣好。您能在內部因素與外在因素之間分析一下嗎？

I -- really, with a couple of these going into potential litigation, I think we're always willing to what I say, pay for our own sins. And I think a portion of it, whenever you do a hindsight analysis, you always see things you could do different. So we weren't perfect within this performance, but not all of our loss was caused by things we did. That's about as deep as I can go into it knowing that there's potential litigation out there, Jon.

我——真的，隨著其中一些進入潛在的訴訟，我認為我們總是願意按照我所說的，為我們自己的罪付出代價。我認為其中一部分原因是，每當你進行事後分析時，你總是會看到你可以做不同的事情。所以我們在這次表演中並不完美，但我們的損失並非都是由我們所做的事情造成的。喬恩，我知道這可能會引起訴訟，這就是我所能深入了解的了。

Okay. I appreciate that. And then on the clean energy projects, other than sort of the competitive landscape that might depress margins and so on and so forth, is there anything inherently different about the clean energy project versus a T&E project that makes it a little bit riskier for you?

好的。我很欣賞這一點。那麼在清潔能源專案上，除了可能會壓低利潤等的競爭格局之外，清潔能源專案與差旅及娛樂專案是否有任何本質上的不同，導致您的風險更大一些？

In general, no, I would say things can happen to you along the way that can make one project riskier or not. I would say, as we said on our C&I side, we've had very good performance. It's been accretive to our margins as we went through the year on our performance on that one. So I would say it's regionally based, and it had to do with the book of business and they were -- it wasn't with all the same customer, but the book of business on the T&D side. And as I said, we've got good visibility in what we have left to finish.

一般來說，不，我想說的是，在這個過程中，你可能會遇到一些事情，這些事情可能會讓一個專案變得更有風險，也可能不會。我想說，正如我們在 C&I 方面所說，我們的表現非常好。隨著我們這一年的表現，它增加了我們的利潤。所以我想說它是基於區域的，它與業務簿有關，而且它們不是與所有相同的客戶有關，而是與 T&D 方面的業務簿有關。正如我所說，我們對尚未完成的工作有很好的了解。

Okay. And I think and maybe you answered this previously, but when you look at the problem projects going forward in the second half, how comfortable are you that you have fully accounted for the costs? And is there potentially some additional risk in the second half from those projects?

好的。我想，也許你之前回答過這個問題，但是當你看看下半年即將進行的問題項目時，你對已經完全考慮到成本感到滿意嗎？這些項目下半年是否有潛在的額外風險？

Yes, there is potential risk there. There always is, as you finish up projects as you get through negotiations as you do that, any of that side when you finish up the projects, there's always additional risk. And that's why I said when I look at -- if we're giving any kind of insight into where our operating margins are going to be, I think minus those projects will be in the mid-range of our T&D margin profile that we give. With those projects, it's hard to say because there's moving parts. So it could affect us, and we'll disclose that as we go forward on a quarterly basis.

是的，那裡存在潛在的風險。當你透過談判完成專案時，總是存在這樣的情況：當你完成專案時，任何一方總是存在額外的風險。這就是為什麼我說，當我看時，如果我們對我們的營運利潤率有任何了解，我認為減去這些項目將處於我們給出的 T&D 利潤率概況的中間範圍。對於這些項目，很難說，因為有移動的部分。因此，這可能會影響我們，我們將在每季進行揭露。

(Operator Instructions) I'm showing no further questions in the queue. I would now like to turn the call back over to Rick for closing remarks.

（操作員說明）我在隊列中沒有顯示任何其他問題。我現在想將電話轉回給里克，讓他發表結束語。

To conclude, on behalf of Kelly, Brian, Don and myself, I sincerely thank you for joining us on the call today. I don't have anything further.

最後，我代表凱利、布萊恩、唐和我本人，衷心感謝您參加今天的電話會議。我沒有更多的事情了。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。