Joe Cutillo: So we came into the year, Adam, saying, we’d have about 100 basis points or a little more pickup in the E-Infrastructure. We still feel very good about that. Coming out of the first quarter with 17.5%, I think, is what our gross margins were. It’s just, that’s amazing for us. So we’re really happy with the progress. Is older jobs fell off, newer jobs started with new pricing, supply chain gets better, jobs get bigger. All of that is positive momentum for us on the margin front. Similarly, we’re seeing the same thing happen in our Transportation and then just the pure volume with Building Solutions helps us get a little leverage out of that as well.
Adam Thalhimer: Okay. And then the — so in Transportation and Building Solutions, can you comment on the, because you already did this for E-Infrastructure without me asking, but just the multiyear opportunity for Transportation and Building Solutions?
Joe Cutillo: Yeah. I think, Transportation, look, we’re sitting on the best backlog we’ve ever had. We’ve got line of sight to many very large multiyear jobs. We think the next three years to four years in Transportation Solutions will continue to have very strong growth and very strong margins. At the end of that, we’re into the next cycle of the Federal Bill. But right now with the funding levels of the states and the projects we’re seeing in our footprint, this is the best it’s ever been. On Building Solutions, I think, the great thing is, we’ve got our three core markets today are all population growth. I don’t see Dallas, Houston slowing down anytime soon. Phoenix has rebounded very nicely this year and continues to grow.
It’s around that population growth and there’s still a ton of pent-up demand of people trying to get into their first time houses. So if interest rates towards the end of the year or in the next year, who knows when they’re going to come down. I think that only accelerates some of this more. And one of the things people don’t realize is we work with the builders. The builders are very good at giving us future information as their partners. But it takes them a while to acquire land, develop land and put houses on it, and we haven’t seen any slowdown in that. That’s usually 18 months to 24 months out is what they’re planning, sometimes three years, depending on the area.
Adam Thalhimer: Did your growth in that business, is that more growth in the specific markets or is it more growth in your market share?
Joe Cutillo: Well, we got two different elements. If you take Dallas, Dallas is really more growth in market. We’ve got a very large market share there. We can always pick up a little more but that’s not our strategy. It’s to go with the market, continue to expand out. If you take into account Houston and Phoenix, those are market share growth opportunities for us. We’re still less than a couple percent of market share in those markets. So we have a long way to go.
Adam Thalhimer: Great. And then last one, so you mentioned acquisitions, electrical, mechanical, plumbing at E-Infrastructure and you’ve done that with PPG at Building Solutions. But are those opportunities out there? I mean, have you actually been booked for those kinds of opportunities?
Joe Cutillo: Yeah.
Adam Thalhimer: Yeah.
Joe Cutillo: Yeah. We are. We’ve seen several, we’re looking at several. One of the core things for us is we’re very picky. We want really good businesses with really good people that we think we can double over a five-year or six-year period. So it’s getting that right match and that right opportunity put together. But they’re out there, yes. And they’re of various sizes.
Adam Thalhimer: Great. Thanks guys.
Joe Cutillo: Thank you.
Operator: There are no further questions at this time. I will turn the call over back to Joe.
Joe Cutillo: Thank you, Jonah. If anyone has any follow-up questions or wishes to schedule a call, please feel free to contact Noelle Dilts. Her contact information can be found on our press release. I’d like to thank everyone again for joining us this morning and I hope you all have a great day. Thank you.
Operator: Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.
