Alex Dwyer: Thank you.
Operator: And thank you. [Operator Instructions] And our next question comes from Julio Romero from Sidoti & Company. Your line is now open.
Julio Romero: Hey, good morning, guys. Hey, good morning. Maybe staying on gross margins for a second. You mentioned the same-store revenue for the year, should be looking like first-half weighted. How about the gross margin cadence should that also be first-half weighted? Or how would you have us think about that?
Brian Lane: No. I mean if I’m excluding what Bill just went through, just in terms of purely operational, I think we’ll be pretty consistent at the gross margin level that we’ve been at. They’ll fluctuate up and down quarter-to-quarter, but I think we’ll be in that 18% to 20% range for sure.
Bill George: I mean the effects on gross margin from like backlog amortization will be immediate. And then there’s also a chance of purchase adjustments later in the year that could make — could be a little lumpy in a quarter here or there. But if you just — the business is going to earn a lot of — it’s going to do well. But there would just be a little more noise in those gross margin line.
Julio Romero: Okay. Got it. What does your capacity look like…
Bill George: The noise can go either direction, just for the record, that noise can go either direction. You shouldn’t just hear, it’s all bad. Now the amortization will always be an expense. But anyway, go ahead, I’m sorry.
Julio Romero: No, no. great point. I’m just thinking about there’s also a lot of cost pass-through in modular to and how that could — depending on whether you do it first-half weighted or second-half weighted, it would affect kind of the cadence of things?
Bill George: Yes.
Julio Romero: Maybe just turning to capacity. How does that look for you guys? Can you continue to take on orders — and how far out are you booked these days?
Brian Lane: Well, in terms of our capacity, we’re in good shape right now. The backlog, the probably a little bit bigger. So we’re in good shape for this year for sure. winning a fair amount of work about 30% of our backlogs into 2025. So in terms of the work we have, obviously, we’re spending a lot of time making sure we can execute properly, selecting the right work, et cetera. But in terms of capacity, the workload we have, the workload we see, we’re in good shape right now.
Julio Romero: Okay. That’s helpful. And then last one for me is a little bit of a broader question, but industrial and institutional are making up a bigger portion of new construction, as you said earlier, Brian. And I would imagine a good majority of those are owner-occupied buildings, not necessarily spec building. So what are you hearing from those customers in regards to costs? Are these kind of owner-occupied projects just having to swallow a higher cost of capital and tougher project economics just to get comfort to take on the project?
Bill George: So I don’t think they’re worried about the cost of capital. Our — we’re talking the big tech companies, right? The big pharma companies, they have capital. They — frankly, they want to deploy capital. As far as pricing, pricing is up, it is — and it’s not a — it’s a — we have to charge people more because we pay our guys, we need to pay our workers very, very well right now. They deserve it. They worked for us, many of them for generations in case some cases, but for decades, and that’s what it takes to get the work done. So I would say pricing is definitely up. We’re making sure that we get — we’re taking more — in a sense, we’re taking more risk, right, as we’re promising to do something at a time when we’re already full.
We have to make sure that we get pricing that compensates us for that risk and allows us to do a good job for our customers. But for sure, if you thought — if you started planning a building two years ago and you’re building it today, it is costing you a lot more than you were budgeting two years ago. And that’s — by the way, that’s true in a lot of parts of the economy, but I think it’s especially true in anything that’s using skilled labor.
Julio Romero: Helpful. Thanks very much.
Bill George: Thanks.
Operator: And thank you. [Operator Instructions] And our next question comes from Adam Thalhimer from Thomson Davis. Your line is now open.
Adam Thalhimer: Hey, good morning, guys. Great quarter.
Bill George: Thanks, Adam.
Adam Thalhimer: Just since there’s so much interest, do you mind just talking high level about data center demand?
Brian Lane: I’ll go first, and Bill can comment. But data center demand is still strong. Everything you read are here, Adam. It’s still have a lot of legs to it. So right now, we see no letup in the stuff we’re looking at are the opportunities presenting themselves. And I think it’s going to be good for a number of years.
