Brent Thielman: Hey, great. Thanks. Good morning. Kyle, you mentioned several times through the commentary, just better bid margin within the book of business that you have today? And obviously, you’ve been more selective as well over the last couple of years in terms of what you’re pursuing any more sort of granularity on how the bid margins within the CAP look today relative to a year ago or 2 years ago as we think about you executing on that book over the next 12 months plus?
Kyle Larkin: Yes. I mean I think if you go back a couple of years, certainly, we saw the market tighten a little bit in early ‘21. We talked about that. And as we’ve seen the market kind of adjust and grow, and certainly with the IIJA funds coming in, I think over that 2-year period, we’ve seen our margins improve probably pretty close to 1.5%, maybe up to 2% on the day, I think might be a good proxy for what we’ve seen. So we will start to see that really transition in. I mean, some of that already has. So I don’t want to overpromise and suggest there’s another 2% in margin expansion just in our CAP. But we’ve seen some of that CAP already get burned through and some of the newer CAP coming in certainly better margins than we had a couple of years ago.
Brent Thielman: Okay. And then obviously, some of the concerns in the market right now, these days seem to be around the private sector. You’re obviously much more focused within the infrastructure side. Maybe can you talk about any slack in your markets that you may be seeing across your geographic regions, things you might be concerned about? Do you feel like you’re capturing that in these growth expectations for the business into 2024?
Kyle Larkin: Yes. I think I look at the public side is really strong. I think as we look at what’s coming for our teams, really across our entire footprint is growth in 2024, certainly from a public spending perspective. I mentioned in the last call, the American Road Transportation Builders Association website had a lot of good information around the opportunities that are out in front of us, specifically in our markets, and they all show really strong public funding for us in 2024. I know our teams see a lot of opportunities for growth in ‘24 and beyond as a result of that. On the private side, our focus has really been around mining, rail, industrials and Solar has been a little bit soft this year, I think as the Solar developers kind of worked through some of the funding that came their way, and we expect that to pick back up.
And I think the only softness we’ve seen is probably around residential. And I would look at that more on the material side, but as we talked before, we don’t really correlate high with the presidential, we correlate higher with transportation for a couple of reasons. One is our asphalt is about two-thirds of our materials business versus aggregates. But most of it has been kind of isolated up in the Northern California, Northwest, Washington, but that’s been in place for a few quarters now. So we think that, that softening is kind of hard into our numbers of what we have seen today.
Brent Thielman: Okay, really helpful. Thank you.
Kyle Larkin: Thank you.
Operator: The next question is from Brian Russo of Sidoti. Please go ahead.
Brian Russo: Hi, good morning. Just curious, when we look to 2024, and the targets you’ve given a 9% to 11% EBITDA margins in the top line and gross margins by Construction Materials segment. Are those kind of considered normalized? Or can you improve upon that as well, maybe as you referenced better bidding or maybe it’s incremental vertical integration or even a different public versus private mix, which I think is approximately 60-40. Just wanted to get your kind of strategic thoughts on that.
