Ron Keating^ Yes, just for...
Patrick Baumann^ Just looking for incremental color around kind of the scattered comments you made in the in your commentary around project
delays, lumpiness in kind of projects, that sort of thing.
Ron Keating^ Yes. So actually, as you think about our project outlays, and this is
one of the difficulties weve had through the entire supply chain difficulty is, were working, were aligned, were ready to deliver. It is customer sites being prepared for us to deliver to. So the larger and the more complex
the system that were selling, the more challenging that is for them to be on time because theyre having to coordinate multiple other subcontractors, multiple other supply chains to be ready for our system to go in.
Again, when our system goes in, its towards the end because theyre getting ready to turn on the water. The system goes in, it gets delivered. And
then until they turn it on and start the operation, it delays our billing around operating and maintenance or build own operate type contracts. So thats you kind of think about when you look at Page 5, the more complex, the larger
systems like the microelectronics that I highlighted, would be the ones that would be a little more lumpy on customer timing and customer delays against the remainder of the project.
Patrick Baumann^ And thats something that you had previously embedded in your outlook. I think youre saying. So thats not something
that is a surprise to you. Its just something that youre highlighting as yes, okay.
Ron Keating^ Weve been dealing with
this from the end of the, I would say, the supply chain challenge. We deal with it always, but certainly, the supply chain difficulty has exacerbated that issue, and weve been managing this for the past 2 years.
Patrick Baumann^ And can you comment on how Mar Cor performed in the quarter and how that business is kind of performing versus expectations?
Ron Keating^ Yes, I would say its right on track. We feel very good about Mar Cor, where it is. Its right on track. We still have an
expectation for our SAP rollout in the month of February, and things are lined up exactly as we anticipated.
Operator^ Our next question comes from
Mike Halloran with Baird.
Unidentified Participant^ This is Ted on for Mike. Quick question for you. Obviously, the margin performance was pretty
exceptional and a healthy amount of price helping there on the price/cost side of things. Could you maybe talk about the margins embedded in the expanding backlog, particularly given the current mix and just the sustainability of margin performance?
Ron Keating^ Yes. I mean we feel good about it. We look at the margins in the backlog with regularity. And again, one thing that we highlighted as
our pricing goes out. Its very sticky. It stays. Our backlog is already priced against price increases. And we feel good around the way that were managing the business and able to manage the supply chain.