Group 1: High-Pressure Natural Gas Power Generation Project - The first high-pressure natural gas long-distance pipeline pressure recovery power generation project in China, the Haimen Station natural gas pressure recovery power generation project, has officially commenced operations in Nantong, Jiangsu [1] - The project efficiently utilizes excess pressure resources during high-pressure natural gas transportation, marking a breakthrough in the comprehensive utilization of energy in long-distance pipelines [1] - The project can generate approximately 3 million kilowatt-hours of electricity annually, equivalent to reducing carbon dioxide emissions by over 2,000 tons [1] Group 2: Technological Innovations and Equipment - The core equipment of the power generation project is independently designed and manufactured in China, featuring adjustable flow technology and 3D-printed impellers [1] - The new technology significantly reduces the energy consumption of the equipment while addressing multiple technical challenges such as high pressure and low flow [1] - The new equipment operates in parallel with the existing pressure regulation system, ensuring a reliable gas supply for residents and businesses even if the power generation equipment is offline [1] Group 3: Future Developments and Projects - The company plans to gradually promote megawatt-level domestically produced pressure recovery power generation equipment in typical distribution stations in the Yangtze River Delta region [2] - The total installed capacity of high-pressure natural gas long-distance pipeline pressure recovery power generation projects in China is estimated to reach 42,000 kilowatts [2] Group 4: "Shan Electric into Anhui" UHV Project - The Anhui section of the "Shan Electric into Anhui" ultra-high voltage direct current transmission project has been fully completed as of November 18 [2] - The project spans 323 kilometers in Anhui, with the entire "Shan Electric into Anhui" transmission line project over 80% complete [2] - The project is part of the national "14th Five-Year Plan" and is expected to be fully operational by the end of June 2026, with an annual electricity transmission capacity exceeding 36 billion kilowatt-hours, more than half of which will be renewable energy [2]

Financial Data and Key Metrics Changes - Revenue for the third quarter was just shy of $4 billion, representing a 22% year-over-year increase [4] - Adjusted EBITDA was $374 million, a 20% year-over-year increase, marking the highest level since Q1 2024 [4] - Adjusted earnings per share was $2.48, exceeding consensus by nearly $0.20 [4] - Backlog at quarter end was $16.8 billion, a sequential increase of approximately $325 million [4] Business Line Data and Key Metrics Changes - Communications segment revenue grew by 33% year-over-year, with EBITDA increasing by 38% [5] - Clean energy and infrastructure segment revenue increased by 20% year-over-year, with EBITDA improving by 36% [5] - Power delivery segment revenue grew by 17% year-over-year, with EBITDA increasing by 21% [5] Market Data and Key Metrics Changes - Total backlog increased by 21% year-over-year, with a book-to-bill ratio of 1.1 times [7] - Communications segment backlog totaled $5.1 billion, showing a slight sequential increase despite record quarterly revenue [18] - Power delivery backlog increased by 11% year-over-year, with expectations for continued growth [10] Company Strategy and Development Direction - The company is focused on diversifying its business to benefit from the changing landscape of power generation and delivery [6] - There is a strong outlook for continued growth driven by significant investments in infrastructure across communications, energy, and power sectors [27] - The company is actively pursuing a disciplined, return-focused capital allocation strategy, including investments in equipment and capacity expansion [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the business across all operating segments, citing strong infrastructure investment needs [27] - The company remains optimistic about the power delivery segment, expecting double-digit growth in revenues and EBITDA for the full year 2025 [10] - Management highlighted the importance of ongoing investments in operating productivity and cost management to achieve better margins [25] Other Important Information - The company generated cash flow from operations of $89 million in Q3 and free cash flow of $36 million [26] - Total liquidity at the end of the quarter was approximately $2 billion, with net leverage of 1.95 times [27] - The company has a share repurchase authorization and will deploy capital for buybacks opportunistically [27] Q&A Session Summary Question: Can you provide guidance on pipeline backlog revenue for 2026? - Management indicated optimism about achieving double-digit growth in 2026, with substantial growth expected in 2027 and beyond based on committed projects [30][31] Question: What is the expected CapEx level for 2026? - CapEx is expected to be around $350 million, slightly above depreciation levels, reflecting growth opportunities in the pipeline segment [32][33] Question: How are permitting issues with GreenLink impacting guidance? - The change in guidance is primarily due to GreenLink, with expected revenue for 2025 now around $250 million, significantly lower than previous expectations [38][39] Question: How many large projects can the company handle simultaneously? - Management expressed confidence in handling multiple projects, emphasizing that most of the power delivery business is maintenance-driven, providing a stable revenue base [41][42] Question: Is $8 EPS still achievable for next year? - Management is comfortable with consensus estimates of over $8 EPS, supported by expected revenue and EBITDA growth [44][45] Question: What is the outlook for margins in the communications segment? - Margins in the communications segment improved to 11.3%, with expectations for continued growth driven by investments in new geographies [50][51] Question: How does the delay in GreenLink affect overall project profitability? - Management does not expect any negative impact on profitability from the GreenLink project, only a shift in timing [54][55]

Group 1: Clean Energy Breakthroughs - The world's first pure ammonia fuel internal combustion engine demonstration ship, "Ammonia Hui," successfully completed its maiden voyage, marking a significant breakthrough in the industrial application of ammonia fuel in the shipping industry, paving a new path for energy conservation and green development in maritime transport [1][6] - The research team overcame challenges related to pure ammonia fuel plasma ignition technology and sustained combustion technology after two years of dedicated research [3] - The successful operation of the pure ammonia-powered demonstration ship validates the potential for ammonia-hydrogen fusion fuel to be applied in various fields, contributing to China's dual carbon goals [6] Group 2: Power Generation Innovations - China's first professional large model for the power generation industry, "Qingyuan," was released, achieving a parameter scale of one hundred billion, enhancing reasoning capabilities and providing a "super brain" for safe, efficient, green, and intelligent power generation [6] - The "Ningdian into Xiang" project, China's first power transmission channel primarily based on renewable energy, successfully completed a 168-hour trial run, demonstrating a transmission capacity of 4 million kilowatts [6][7] - The "Ningdian into Xiang" project, spanning approximately 1,616 kilometers, is the first approved ultra-high voltage transmission channel focused on delivering renewable energy from the "Shagohuang" wind and solar base, addressing the bottleneck of "can generate but cannot transmit" in western regions rich in renewable energy [9] Group 3: Robotics and AI Developments - The first domestic 3V3 AI robot football match concluded, with the Tsinghua Fire God team winning 5-3, marking a significant event in the field of humanoid robotics [11] - This match effectively validated the technical capabilities of robots and enhanced market confidence in robotic products and technologies [16]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.4 billion, with adjusted EBITDA of $271 million, representing a 20% year-over-year increase [10][11] - Full year 2024 revenue reached $12.3 billion, with adjusted EBITDA of $1.6 billion, also a nearly 20% year-over-year increase [11][38] - Fourth quarter adjusted EPS was $1.44, more than double last year's fourth quarter [10][38] - Cash flow from operations for the full year was $1.1 billion, with net debt reduced by over $700 million [11][39] Business Line Data and Key Metrics Changes - **Communications Segment**: Fourth quarter revenues increased by 28% year-over-year to $975 million, with EBITDA up 67% [18][42] - **Power Delivery Segment**: Fourth quarter revenues rose by 16% year-over-year, with expectations for double-digit growth in 2025 [21][52] - **Pipeline Segment**: Fourth quarter revenue was $430 million, with a forecasted decline in 2025 due to the completion of the Mountain Valley Pipeline [24][49] - **Clean Energy and Infrastructure Segment**: Fourth quarter revenue was the highest in the segment's history, up 18% year-over-year, with EBITDA more than doubling [26][45] Market Data and Key Metrics Changes - Backlog at year-end totaled $14.3 billion, an increase of over $400 million sequentially and nearly $2 billion year-over-year [40] - Non-pipeline revenue increased by 21% year-over-year in the fourth quarter, with non-pipeline EBITDA improving by 57% [12][11] - The company expects 2025 non-pipeline revenues to increase by 14% and EBITDA to grow over 25% [14][55] Company Strategy and Development Direction - The company is focused on organic growth, with potential tuck-in acquisitions to accelerate goals [63] - There is a strong emphasis on improving margins across all segments, with a goal of reaching $15 billion in revenue with double-digit margins [109] - The company is well-positioned to capitalize on significant opportunities in communication, power delivery, and clean energy sectors [29][124] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the unprecedented demand for services across all segments, driven by fundamental needs rather than short-term trends [16][15] - The company anticipates continued backlog growth in all segments throughout 2025, despite potential lumpiness in project awards [81][80] - There is optimism regarding the pipeline business, with expectations for revenue in 2026 to exceed 2024 levels [61][155] Other Important Information - The company has successfully reduced days sales outstanding (DSO) to 60 days, down from 68 days in the previous quarter [39] - The company is preparing for future workforce needs with over 30 dedicated trading facilities across the country [17] Q&A Session Summary Question: Pipeline business revenue expectations for 2026 - Management confirmed expectations for 2026 revenues in the Pipeline segment to exceed 2024 levels, citing increased optimism among customers [61][62] Question: Clean Energy margins and execution - Margins were driven by execution, with management indicating potential for exceeding guidance in 2025 [66][68] Question: Backlog growth in all segments - Management expressed confidence in backlog growth across all segments in 2025, despite historical lumpiness [81][80] Question: Communications segment growth profile - Management indicated that growth in the Communications segment is driven by new contracts and existing customer demand, with limited reliance on BEADs funding [82][84] Question: Margin improvement confidence - Management attributed margin improvement to a combination of factors, including increased revenue and operational efficiency [105][109] Question: Capacity for large transmission projects - Management stated readiness to take on additional large projects, with expectations for awards in 2025 [129][130] Question: Renewable business backlog and timing - Management confirmed strong backlog in renewables with no significant delays expected due to policy uncertainty [156]