David Constable: I’ll start, Joe. You can chime in as well. I’d say we’re getting much more confident with the remaining legacy work. There are only a few projects remaining that are well along. In fact, the large offshore projects that we’re looking to finish off is 100% complete and 75% complete commissioned. And hopefully by the end of January that it will be handed over to the client. So that’s well along. As I mentioned, Gordie Howe is 65% complete and we’re getting great progress there and having good discussions with the client on revenue recovery and well along on the LAX People Mover project out in Los Angeles. I think it’s 88% complete as we speak. So these projects are in a very good place now and with good discussions with the clients where there is revenue recovery required.
So that allows us to have good confidence going forward and as we continue to execute right now, well above our as-sold margins on the much healthier backlog that we brought in. As we said, we’ve hit and passed an inflection point at the company now that gives us a lot of confidence in our numbers and that cash that Joe talked about, the year of cash in 2024.
Joe Brennan: No, I think that’s — the only thing maybe I would add is, you’re starting to see some of the financial discipline relative to the recognition of cost and the hard work that’s gone in over the last 12 to 18 months to bring some of these claims to very positive conclusions with our clients. So I think all that is kind of contributing to the positive outlooks here.
Brent Thielman: Great. Thank you.
David Constable: Thank you.
Operator: Your next question comes from the line of Andy Kaplowitz from Citigroup. Your line is live.
Andy Kaplowitz: You got it right. Good morning, everyone.
David Constable: Close enough, Andy. [indiscernible].
Andy Kaplowitz: Close enough, close enough. David or Joe, I think you said that these positive cost recoveries are part of your guides, but they just moved earlier into Q3. But you still raised your EPS guide significantly for the year. So what else is going right to lead to that raise? And then without giving us an EPS guide for 2024, is it fair to say that with the significant backlog growth you have and expect an underlying margin improvement, you would still expect significant EPS growth off of 2023’s higher base?
Joe Brennan: Well, I don’t want to guide into 2024 yet. I think what David touched on, we’re having the resolution of the challenge projects and we’re coming to the conclusions that we expected through a lot of hard work. That’s one element of it. And I think David’s leaned into and we’re seeing it is just this higher quality, better than existing backlog margin intake. And we’re starting to burn that, to burn those higher quality awards through the P&L. So it’s just a combination of all that, and you’re going to start seeing that higher quality margin backlog kind of be the headline story next year as we get back to a lot more consistency around how we’re reporting out in the cash flow generation around contracts that have much better terms and conditions. So I think it’s a combination of a few things that are giving us that level of confidence.
David Constable: Yes, that $20 billion we booked in — Andy, the $20 billion we booked in 2022 is really strong margin in there, and we’re doing it again this year. We may not get quite to the $20 billion, but we’ll be getting close to that this year as well with that same type of margin profile. We expect to be at or near 75% reimbursable by the end of the year. And we’ve got execution excellence on, as I said earlier, we’re executing above as sold. So that all plays so well into the future and the trajectory — positive trajectory for the company here. Over several years, right? These jobs will run, right now we’ve got jobs running out to 2026, 2027 because they are — there’s a lot of volume, a lot of hours to burn over the next several years. And so that gives us pretty good line of sight going forward. We’ll be looking at the operating plan reviews for 2024 in mid-December and that will certainly lead to our guidance in 2024 around margins and growth.
