Duke Austin: The company itself, the revenue size is over $100 million. We’re not going to disclose purchase price. I’m sure you can find it in the K. So – but in general, it’s really not about the manufacturing capacity. It’s what we can do with it, the synergies we can get with it with the client. We can add some production fairly quickly. It’s an underinvested facility. We will put some money in it. I don’t see our capital structure changing at all. And next year, we don’t need to do a lot to the facility. So I feel good about the capital deployment in there and the productivity lines and things like that, the things that we can do with the manufacturing facility. So I like that part of it. It is booked pretty good in 2024, 2025.
And so it will be about us getting more productivity out of it and really working with our clients on what capacity looks like in the future. So that’s what we’ll be working on and putting that into the way that we provide the solution to the client.
Justin Hauke: Okay. Great. We’ll look forward to the K then later. Appreciate it.
Operator: Thank you. Our next question comes from Neil Mehta with Goldman Sachs. Please proceed with your question.
Neil Mehta: Yes. Thanks so much. Duke, I wanted to start off on the customer base because I think there’s an important point, which is a lot of your renewable focused investment is with the large utilities as opposed to some of those private developers. So is there any way you can quantify that customer composition for you as you think about your backlog there? And as you have conversations with utility CEOs, are you seeing any change in their commitment to the business? We did, for example, note, accel, if anything, accelerated the renewables investments in Colorado? Thanks.
Duke Austin: Thanks, Neil. When we look at our customer base, we’ve said all along. We work for the top 10 developers as well as the utilities and the world for that matter. So I feel good about where they’re at. I feel good about where they’re going all of basically the trends and what we see from backlog as well as opportunities continue to grow, both with the utility business as well as developer business. I go back and say, we look at our portfolio that we put together, we’ve derisked it and then we’ve also said we could stack on to it. The company has grown in 2021. We’ve grown 16% in 2022. We grew 30%. This year, we’re expected to grow 18%. So I don’t think we have a problem with the customer base. I think we are doing really nicely.
We are working on margins, as Jayshree said. But that said, sequentially, when you look at quarter-over-quarter, we said there were some cadence issues in our renewables or some cadence issues in the jobs. It’s not a margin issue, it’s a cadence issue. And every single quarter, we’ll get better. We expect to operate in double digits next year.
Neil Mehta: Okay. Thank you. And then the follow-up for Jayshree. You made a comment that you’re on track for the plan are tracking ahead of the long-term plan. Any early thoughts on 2024? You mentioned you’re on track to be double-digit EPS growth, but considerations, we want to keep in mind as we build up the model for next year?
Duke Austin: I think when we look at it, we still feel comfortable with kind of the model that we put together. It’s way too early to give guidance on exactly what that will look like. It would be a disservice to you and us. But I do expect us over time, had the opportunity to operate above double digits on the EPS line at times, and I feel comfortable with the opportunity next year to operate in double digits.
Neil Mehta: Thanks, Duke.
Operator: Thank you. Our next question comes from the line of Andy Kaplowitz with Citigroup. Please proceed with your question.
Andy Kaplowitz: Good morning everyone.
Jayshree Desai: Good morning.
Andy Kaplowitz: Duke, I think I know the answer to this, but you mentioned you’re still pursuing many large new T&D projects. Do you still have good visibility toward backlog growth as you go into 2024? And how do you compare this T&D cycle to other cycles? You mentioned that just to Neil’s question, you mentioned you’re ahead of the long-term plan but part of the upside. I think when you did your Investor Day, it was going to come from megatrends. Have you seen the megatrends develop faster than you would have expected then?
Duke Austin: It’s – I see when we look at the market, it’s the best it’s been in our career, and it’s all about the macro market demands. People are underestimating data centers and the loads on data centers, they’re underestimating EV. You’re up to about 7% of new car sales into EV globally. That’s a big number for everyone. Your interconnections, you’re even on batteries just to make the batteries and the demand on the power cycle there. So I think all those things are underestimated when you start looking at where the business is going. And so for us, the long-term nature and the megatrends that we see continue to compound, you can delay some things. It’s really – for us, it’s really worrying about the ultimate customer and affordability at the ultimate customer level and how do we help our clients and help the ultimate customer get a cost price that makes sense.
And as you see, as you get leverage across what you’re building with more demand, what you’re seeing 3% demand almost every single place has at least some demand growth, load growth, that load growth itself is really, really enhancing what a utility can spend on capital. Obviously, the market’s a little constrained there on the capital markets, but the demand is outfitting supply. So it’s some timing in places. But like I’ve never seen where we see so many things at once coming at you from a macro market. So we’re real proud to be in this business. And look, I get up every day and happy about me in here and trying to execute on the work that we have. I think that’s the big thing is just execution at this point.
Andy Kaplowitz: And then, Duke, yesterday, there was quite a bit of angst that I thought you were caught up in a little bit with actually offshore wind, and I don’t think you have any exposure there or very little, but could you remind us of if you have any on that side?
Duke Austin: Yes. Thanks for the question. We’re very deliberate about no boats, no water. So we’ve been there, done that. We’re not involved in anything offshore other than onshore approaches and some we will help others onshore to fab or whatever it may be offshore, but we’re not in the water at all and have no exposure really to offshore wind other than transmission that may be built onshore.
Andy Kaplowitz: Appreciate that, Duke.
Operator: Thank you. Our next question comes from Marc Bianchi with TD Cowen. Please proceed with your question.
Marc Bianchi: Hey, thanks. I wanted to ask about the market structure and sort of go forward in electric power and infrastructure. And this relates to some of the concerns around utility ability to sort of spend in this higher interest rate environment. I appreciate that you guys are doing a good job in long-term discussions with the customers and so forth. But from a macro perspective, is there anything about the current rate environment that maybe limits the growth opportunity in that segment? Obviously, you can continue to grow, but maybe not quite at the rate. Just curious if you can talk to that dynamic at all.
