Operator: Thank you. [Operator Instructions] Next question comes from the line of Scott Louis with Semple [Ph] Capital. Please go ahead.
Unidentified Analyst: Thanks for taking the call. Great quarter.
Nathan Mazurek: Sure Scott. Thank you Scott.
Unidentified Analyst: I have a question on the gross margins. 29% was terrific. And I think it’s the best you’ve ever done. Is that number sustainable going forward?
Nathan Mazurek: That’s a great question, Scott. It’s definitely something, once we’ve, it’s like tasting forbidden waters. Once we’ve tasted it, we don’t want to move backwards. We shoot for 25. That’s, that’s how we base a lot of the analysis and guidance going forward for 2025. But we definitely see that we have the ability to stretch in certain cases. It’s really going to depend on the continued spend, on the e-Boost and when e-Boost stops being a drag on earnings and break even and then hopefully, be a contributor. So that’s the long winded answer to your question.
Unidentified Analyst: Okay. Well, that’s a good Segway into my next question. At what point do you expect e-Boost to stop being a drag and start to contribute? Can you give us some color on the timeline?
Nathan Mazurek: Yes. So I think it should stop being a drag is what’s a drag. But I think it should mitigate a lot of the loss and the spend somewhere in the second quarter of 2024 and start contributing in the second half of the year. I think the first quarter will be some advance in that area, not enough to say that it’s close to breakeven until a little bit later.
Unidentified Analyst: And then my last question is, after the Q2 call, you called out water utilities and data center as highlights of your end markets. And can you comment on your end market growth that you saw in the Q3 and how those two end markets specifically did, and then any surprises to the upside or the negative side?
Nathan Mazurek: Yes, I mean, it’s only to the positive side. They continue to, I probably didn’t do a good job in the comments I made earlier, but at this point, we’re across so many verticals. When we call them out, then everybody’s thinking, okay, what about this one, that one, and so forth. It’s everywhere. Data continues to be strong. EV charging stations are super strong. Water utility that is the heart. The water utility and the large automotive project that we did were the heart of the third quarter. And we fully expect it, especially on the water side, we expect that to continue. That’s a large, large untapped market with a customer that is ready to spend and is not sort of bound by, they have different spend considerations than a more commercial customer.
Unidentified Analyst: Great. Thank you very much.
Nathan Mazurek: You’re very welcome, Scott. Can’t wait to see you again soon.
Operator: Thank you. Next question comes from the line of Albert Jones with Jones Capital Management. Please go ahead.
Albert Jones: Thanks. Very nice quarter. Quickly on the gross profit of 29.8% of revenue, I imagine that was a lot of it was going by sales mix. Can you tell me if the sales mix for the fourth quarter is trending different than the third quarter?
Nathan Mazurek: It’s trending sort of the same. Part of it, as far as the type of product, every day we live in a dynamic human world. So how well did we execute? Did we hit the hours? Did we make a mistake on some components from a material point of view? So I don’t have all that data. The product mix is still a beneficial, is a good product mix, something I would hope overall continues through 2024 as far as product mix. But I don’t have a more drilled down view on the profitability of the jobs yet. And the fourth quarter is not over.
Albert Jones: Yes. Okay. Thanks. One more quick one as far as the revenues were quite good. Did all orders get shipped out or did any possibly move into a slight delay to being shipped fourth quarter or first quarter that you could talk about?
Nathan Mazurek: Yes. I mean, that’s every quarter for us. So if you ask me every quarter, did things get shipped out? Did things get pushed out? Some things get accepted and pulled in. Happens all the time. So I’m not sure where you want to go with it. That’s the nature of the business. The quarter customers, especially the larger one, not interested, that September 30th is the end of our quarter or whatever that means. So I’m not sure what you’re trying to uncover.
Albert Jones: Just, well, the talk on the macro side of some of the U.S. car companies are making delays to their orders on the EV side because of the slow uptake supposedly. You hear this every day on the business news. So my question was kind of related to that, as far as a macro thing, on that side.
Nathan Mazurek: Yes. So I understand your question better now. Sorry. Yes. We’re not seeing in our space and the markets that we’re after, for the most part, we’re not seeing any slowdown whatsoever. Doesn’t mean it won’t happen and doesn’t mean that we’re immune from anything that’s happening. But even, I mean, even orders that we took from the autonomous vehicle division of a certain automaker and so forth, and despite, what we read that some of those businesses are incurring bumps in the road, the opposite. They all call to make sure that we’re full steam ahead and that they have — they’ve invested a lot of money into these businesses and they have every intention of giving it — giving it their all for the next several years.
Albert Jones: Hey thanks for clearing that up for me, I appreciate it. One quick one in prepared remarks you mentioned some larger solutions I know you had a huge install in Las Vegas that you’ve talked about in the past as far as that goes. Are we talking even larger or something on that size scale? What are the newer customers talking about as far as larger solutions from you?
