Joseph Cutillo: Yes. Let me — I’ll answer some of that and let Rod jump in. Brian, the — we will always have as long as the project scope mix remains like it is today. We always have about a 4-point margin — lower margin in the Northeast versus the Southeast. And what that has to do is our customers up there because it’s union want to deal with less contractors and deal with one. So on a site development, kind of apples-to-apples, the margins are very close. But we do a lot of concrete work curb and gutter will do actually paving a parking lot, sound walls. And in the Southeast, we’ve stayed away from that because the margins are significantly lower. In the Northeast, they require it. I think as we look at E-Infrastructure, I think what we need to think about is kind of the, I’ll call it, normalized blended average of the two businesses in that segment around 15.5% is what the number should be there.
So Plateau runs a little higher, Petillo a little a little lower and you kind of blend it out with revenue and mix, and that’s about where it falls.
Ronald Ballschmiede: Yes. During the quarter, it was a bit exacerbated by the slower volume revenues in the month. Give or take, about 1/3 of the revenues come from the Northeast and 2/3 from the Southeast. So the Southeast continue to have nice margin growth. And any time you drop almost 20% of revenues in the month, which was made up by the Southeast, we probably have $1 million to $3 million of unrecovered overhead basically. Now as we beat up, that will come back as we gear up for bigger projects and some of the timings and the issues that we talked about earlier, that will come back a little bit. So — but 4% is a little bit bigger in the third quarter just because of the swing in the margins. The good news is our highest margins grew. The bad news is our lowest margin declined a bit. So the math was okay.
Brian Russo: Okay. Very helpful. And then just to switch gears on transportation, if I recall, in the second quarter, you were able to pivot some of your crews and equipment to support an E-Infrastructure project in the Rocky Mountains. Just wondering, given all the activity that we’re seeing in that region. Are you positioned to continue to do that and just go where the margins are.
Joseph Cutillo: Yes. I think a couple of things. One, that project has gone extremely well. It’s gone so well that the general contractor that’s on that job in beta has pulled us into a manufacturing facility in Idaho, it’s around food products. And we’re actively looking at some other projects with them. They plan on doing a few more as well. So we will continue if the opportunities are available to reallocate those assets to what I’ll call the E-Infrastructure space, whether that’s data centers or manufacturing or any of those. And team has done a great job — and I think just as importantly, they are as excited about expanding into that market as they could be. and they’re working diligently to do that. So we hope as we go into ’24 to ’25, not only do we see the large footprint of projects in the Southeast and starting in the Northeast this opens up the geography for us to go even broader with those core customers.
Brian Russo: Okay. Great. And then just lastly, the Unsigned Awards mostly in the Transportation Solutions segment. Are those still mostly comprised of highway work? Or is that where we’re starting to see the aviation projects pick up in the unsigned bids?
Ronald Ballschmiede: Yes. I think it’s primarily road, highway and bridges. There are some early smaller projects in the aviation side that are waiting for final signatures. So the larger opportunities on the aviation side are going to fall into — maybe awards this year, but to work in fall into 2024, and we expect that to happen. Nice projects out there being developed.
Operator: At this time, I will now turn the call back over to Joe Cutillo for closing comments.
Joseph Cutillo: Thank you. Thanks again, everyone, for joining our call today. If you have any follow-up questions or wish to schedule a call, please feel free to contact Noelle Dilts. Her contact information can be found in our press release. I want to thank everybody for participating, and have a great day.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
