Andy Kaplowitz: That’s helpful. And then David, can you give us an update on how you’re thinking about Nuscale? I know you said you would look to monetize it at some point maybe by the end of the year, but how are you thinking about the funding needs of Nuscale moving forward? Is there any possibility that Florida to inject more capital into the JV?
David Constable: Yes, we’re — as we said, we’re in discussions with a strategic investor for the monetization of Nuscale. Those discussions are proceeding well. And we do have a term sheet with our strategic investor. And if all things line up correctly, we’ll be able to talk more about that at the end of the year or early in the new year on that monetization. So that’s where we’re focused right now. Nuscale has a great offering in the industry. They’re well ahead of any other SMR technology, I’d say, by five years easily. And so we’re very excited about supporting the commercialization of Nuscale going forward. And I believe they have an earnings call next Wednesday where they can talk, obviously, more about your comments around cash and how they look at that.
Andy Kaplowitz: Appreciate the color.
David Constable: Thank you.
Operator: Your next question comes from the line of Michael Dudas from Vertical Research. Your line is live.
Michael Dudas: Good morning, gentlemen.
David Constable: Hey, Michael.
Joe Brennan: Hey, Michael. How are you?
Michael Dudas: Congrats on that World Series victory.
David Constable: Go Rangers. Go Rangers.
Michael Dudas: I’m glad you guys even know there’s a baseball team in Dallas. That’s good news. David, you talked — you’ve mentioned in the prepared remarks the extraordinary pipeline that you guys are working on relative to your current backlog. Can you maybe share how you guys are set up or how difficult it could be, because there is such demand for your services, how you’re going about allocating, either through sectors, industry clients, and certainly what metrics you’re thinking about? And how’s your labor and your capacity to execute not only what you have now, but what seems to be a pretty strong steep opportunity in the future.
David Constable: Good morning again Michael. And right that’s where we — that’s where we spend most of our time right now is staffing these great projects and getting the right talent, the right people in the right places at the right time so we can have execution success for all of our clients. We have a very structured pursuit process, bid-no-bid process, where we will only move forward if we have the right teams in place. That’s, I guess, the first question we ask before we get into all the other details. So the whole management team is just laser focused on resources and hiring — attraction and hiring of talent into the company. We done a great job over the last couple of years. Brought in over 6,500 people. Over 30% of those folks are rehires.
People want to come back to the Fluor family as we continue to grow again. So that really is where we spend a lot of our time and make sure that we’re not bringing in projects that we can’t execute. As far as allocation goes, it’s — we do — fortunately, it’s a business where we can cross-pollinate into different businesses as required. For example, with the HLS business ramping up dramatically from doing $400 million, $500 million projects to multi-billion dollar projects. We’ve successfully inserted project execution skills, project management skills, project control skills into HLS from our energy solutions business. So there’s always that going on and we’re fortunate that our processes and procedures which all of us follow allow us to move people around the company and give us more flexibility in that regard.
So it’s — yes, it’s non-stop. We’ve got a talent task force in place. We’ve had it in place since early 2022 and that’s really working well for us.
Michael Dudas: And given the — your capacity and even growing as you mentioned, but also the demand for your services, can we anticipate as we look over the next several quarters that as you indicated, booking margins were up 70 bits from your current backlog. Is that a trend that should continue in this environment for the foreseeable future? Not varying degrees but certainly see that show up and improve margins into your booked backlog?
