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QUANTA SERVICES REPORTS THIRD QUARTER 2024 RESULTS

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Quanta Services (NYSE: PWR) reported strong Q3 2024 results with record quarterly revenues of $6.49 billion, up from $5.62 billion in Q3 2023. Net income reached $293.2 million, or $1.95 per diluted share, compared to $272.8 million in Q3 2023. Adjusted diluted EPS was $2.72, up from $2.24. The company achieved record total backlog of $34.0 billion and generated free cash flow of $539.5 million.

Notable developments include the acquisition of Cupertino Electric and a power transformer manufacturing company, plus a strategic investment in Hybar The company is raising its mid-point full-year 2024 adjusted earnings guidance, citing strong demand for services and expanding market opportunities.

Quanta Services (NYSE: PWR) ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi trimestrali record di 6,49 miliardi di dollari, in aumento rispetto ai 5,62 miliardi di dollari nel terzo trimestre del 2023. L'utile netto ha raggiunto 293,2 milioni di dollari, ovvero 1,95 dollari per azione diluita, rispetto ai 272,8 milioni di dollari del terzo trimestre del 2023. L'EPS diluito rettificato è stato di 2,72 dollari, in aumento rispetto ai 2,24 dollari. L'azienda ha registrato un backlog totale record di 34,0 miliardi di dollari e ha generato un flusso di cassa libero di 539,5 milioni di dollari.

Sviluppi notevoli includono l'acquisizione di Cupertino Electric e di una società di produzione di trasformatori elettrici, oltre a un investimento strategico in Hybar. L'azienda sta alzando la sua guida sugli utili rettificati per l'intero anno 2024, citando una forte domanda di servizi e opportunità di mercato in espansione.

Quanta Services (NYSE: PWR) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos trimestrales récord de 6,49 mil millones de dólares, frente a los 5,62 mil millones de dólares en el tercer trimestre de 2023. El ingreso neto alcanzó 293,2 millones de dólares, o 1,95 dólares por acción diluida, en comparación con los 272,8 millones de dólares en el tercer trimestre de 2023. El EPS diluido ajustado fue de 2,72 dólares, en aumento desde 2,24 dólares. La compañía logró un backlog total récord de 34,0 mil millones de dólares y generó un flujo de caja libre de 539,5 millones de dólares.

Los desarrollos notables incluyen la adquisición de Cupertino Electric y una empresa de fabricación de transformadores de energía, además de una inversión estratégica en Hybar. La compañía está elevando su guía de ganancias ajustadas para todo el año 2024, citando una fuerte demanda de servicios y oportunidades de mercado en expansión.

Quanta Services (NYSE: PWR)는 2024년 3분기 실적을 발표하며 분기 기준으로 기록적인 64억 9천만 달러의 매출을 기록했습니다. 이는 2023년 3분기의 56억 2천만 달러에서 증가한 수치입니다. 순이익은 2억 9천3백20만 달러로, 주당 희석 EPS는 1.95 달러로, 2023년 3분기의 2억 7천2백80만 달러와 비교됩니다. 조정 후 희석 EPS는 2.72달러로, 이는 2.24달러에서 증가한 수치입니다. 회사는 340억 달러의 기록적인 총 백로그를 달성하였고, 5억 3천9백50만 달러의 자유 현금 흐름을 생성하였습니다.

주목할 만한 개발 사항으로는 Cupertino Electric과 전력 변압기 제조업체의 인수, 그리고 Hybar에 대한 전략적 투자가 포함됩니다. 회사는 서비스에 대한 강한 수요와 확장되는 시장 기회를 언급하며, 2024년 전체 연도 조정 수익 전망의 중간점을 높이고 있습니다.

Quanta Services (NYSE: PWR) a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus trimestriels records de 6,49 milliards de dollars, en hausse par rapport à 5,62 milliards de dollars au troisième trimestre 2023. Le bénéfice net a atteint 293,2 millions de dollars, soit 1,95 dollar par action diluée, contre 272,8 millions de dollars au troisième trimestre 2023. Le BPA dilué ajusté s'élevait à 2,72 dollars, contre 2,24 dollars. L'entreprise a atteint un carnet de commandes total record de 34,0 milliards de dollars et a généré un flux de trésorerie libre de 539,5 millions de dollars.

Parmi les développements notables, on peut citer l'acquisition de Cupertino Electric et d'une entreprise de fabrication de transformateurs électriques, ainsi qu'un investissement stratégique dans Hybar. L'entreprise revoit à la hausse ses prévisions de bénéfices ajustés pour l'ensemble de l'année 2024, citant une forte demande pour ses services et de nouvelles opportunités de marché.

Quanta Services (NYSE: PWR) hat für das dritte Quartal 2024 starke Ergebnisse gemeldet, mit einem rekordverdächtigen Quartalsumsatz von 6,49 Milliarden Dollar, ein Anstieg von 5,62 Milliarden Dollar im dritten Quartal 2023. Der Nettogewinn belief sich auf 293,2 Millionen Dollar, oder 1,95 Dollar pro verwässerter Aktie, verglichen mit 272,8 Millionen Dollar im dritten Quartal 2023. Der bereinigte verwässerte EPS betrug 2,72 Dollar, ein Anstieg von 2,24 Dollar. Das Unternehmen verzeichnete einen rekordverdächtigen Gesamt-Backlog von 34,0 Milliarden Dollar und generierte einen freien Cashflow von 539,5 Millionen Dollar.

Bemerkenswerte Entwicklungen umfassen die Übernahme von Cupertino Electric und einem Hersteller von Leistungs-transformatoren sowie eine strategische Investition in Hybar. Das Unternehmen hebt seine mittlere Prognose für die angepassten Gewinne für das Gesamtjahr 2024 an und verweist dabei auf eine starke Nachfrage nach Dienstleistungen und expandierende Marktchancen.

Positive
  • Record quarterly revenues of $6.49 billion, up 15.5% YoY
  • Net income increased to $293.2 million from $272.8 million YoY
  • Adjusted diluted EPS grew 21.4% to $2.72
  • Record total backlog of $34.0 billion
  • Strong free cash flow generation of $539.5 million in Q3
  • Year-to-date cash flow from operations of $1.37 billion
Negative
  • None.

Insights

Quanta Services delivered an impressive Q3 2024 performance with several record-breaking metrics. Revenue grew 15.5% year-over-year to $6.49 billion, while net income reached $293.2 million. The adjusted EPS of $2.72 represents a substantial 21.4% increase from the previous year.

Key strengths include robust free cash flow of $539.5 million and a record total backlog of $34.0 billion. The acquisition of Cupertino Electric enhances their technology and data center capabilities, while strategic investments in power transformer manufacturing and sustainable steel production align well with infrastructure modernization trends.

The company's position at the intersection of utility, renewable energy and technology sectors, combined with increasing demand for power infrastructure upgrades, suggests strong growth potential. Management's confidence in achieving double-digit earnings growth in 2025 is supported by solid execution and strategic capital deployment.

The strategic positioning in critical infrastructure modernization is particularly noteworthy. The $34.0 billion backlog demonstrates strong market demand for Quanta's services, especially in power grid upgrades and renewable energy integration. The acquisition of Cupertino Electric significantly strengthens their position in the rapidly growing data center market.

The company's focus on sustainable infrastructure development, evidenced by investments in Hybar's environmentally sustainable steel production and their commitment to the energy transition, aligns perfectly with major infrastructure spending initiatives and ESG requirements. Their integrated service model, combining engineering, procurement and construction capabilities, provides a competitive advantage in securing large-scale projects.

Third Quarter Consolidated Revenues of $6.5 Billion*

Third Quarter GAAP Diluted EPS of $1.95* and Adjusted Diluted EPS of $2.72*

Net Income Attributable to Common Stock of $293.2 Million* and Adjusted EBITDA of $682.8 Million*

Year-to-Date Cash Flow From Operations of $1.37 Billion* and Free Cash Flow of $979.3 Million*

Remaining Performance Obligations of $15.6 Billion* and Total Backlog of $34.0 Billion*

Raising Mid-Point of Full-Year 2024 Adjusted Earnings Per Share Expectations

* = Record quarterly or record third quarter result

HOUSTON, Oct. 31, 2024 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) today announced results for the three and nine months ended September 30, 2024. Revenues in the third quarter of 2024 were $6.49 billion compared to revenues of $5.62 billion in the third quarter of 2023, and net income attributable to common stock was $293.2 million, or $1.95 per diluted share, in the third quarter of 2024 compared to net income attributable to common stock of $272.8 million, or $1.83 per diluted share, in the third quarter of 2023. Adjusted diluted earnings per share attributable to common stock (a non-GAAP financial measure) was $2.72 for the third quarter of 2024 compared to $2.24 for the third quarter of 2023.

"Quanta delivered another quarter of double-digit growth in many of our financial metrics, reached total backlog of $34.0 billion and generated free cash flow of $539.5 million. We believe our consistent, profitable growth reflects the power of our portfolio, sound execution, strong demand for our services and an expanding total addressable market as we continue to advance our collaborative, solutions-based relationships with our customers and enhance our capabilities and service lines," said Duke Austin, President and Chief Executive Officer of Quanta Services.

"The integration of Cupertino Electric is progressing well and while it is early, we have experienced positive customer response to our comprehensive, critical path electrical infrastructure solution for the technology and data center industry that provides opportunity to improve speed to market for projects. Quanta sits at the nexus of the utility, renewable energy and technology industries, and the convergence of these industries is gaining pace. With the increased demand for and tightening of power generation capacity and the significant power grid upgrades and enhancements required to facilitate load growth, our collaborative, solutions-based approach is valued by our clients more than ever. We believe we are well positioned to achieve another year of double-digit earnings per share growth in 2025 due to increasing demand for our services, strong execution of our strategic plan and capital deployment opportunities."

Certain items that impacted Quanta's results for the three and nine months ended September 30, 2024 and 2023 are reflected as adjustments in the calculation of Quanta's adjusted net income attributable to common stock, adjusted diluted earnings per share attributable to common stock and adjusted EBITDA (non-GAAP financial measures). These items are described in the accompanying tables reconciling adjusted net income attributable to common stock to net income attributable to common stock and adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock. Quanta completed eight acquisitions during the first nine months of 2024 and five acquisitions during the full year 2023, and the results of the acquired businesses are included in Quanta's consolidated results from the respective acquisition dates. For further information on the items that impacted comparability of 2024 and 2023, see the footnotes in the accompanying tables presenting Supplemental Segment Data and reconciliations of EBITDA, adjusted EBITDA, adjusted net income attributable to common stock and adjusted diluted earnings per share attributable to common stock (non-GAAP financial measures) to their comparable GAAP financial measures.

RECENT HIGHLIGHTS

  • Acquired Power Transformer Manufacturing Company - In September 2024, Quanta completed the acquisition of a company based in Buffalo, New York with a 100-year operating history that specializes in designing, manufacturing and distributing medium-voltage, liquid-filled power transformers for industrial and electrical companies and utilities.   
  • Made Strategic Investment in Hybar LLC - In August 2024, Quanta made a strategic minority investment in Hybar LLC. Headquartered in Osceola, Arkansas, Hybar is building a technologically advanced scrap metal recycling steel rebar mill in northeast Arkansas, which is designed to incorporate environmentally sustainable processes. Once completed, the mill will be powered by an adjacent 105 MW solar field and battery storage facility and is expected to produce a full complement of high-yielding steel rebar that can be used in large infrastructure projects.
  • Published 2023 Sustainability Report - In September 2024, Quanta published its 2023 Sustainability Report, which provides transparency around Quanta's sustainability strategy and how the company is measuring its continued progress in 2023. Titled "Forging the Future," the report discusses Quanta's critical role in enabling the energy transition and includes Quanta's goal to grow its positive impact on society through collaboration with its customers on the energy transition, while reducing the carbon intensity of its operations.
  • Completed the Acquisition of Cupertino Electric - In July 2024, Quanta completed the acquisition of CEI, a premier electrical infrastructure solutions provider to the technology, renewable energy and infrastructure and commercial industries. Founded in 1954 and headquartered in San Jose, California, CEI provides integrated turnkey solutions, including engineering, procurement, project management, construction and modularization services, to a high-quality and diverse customer base across the United States. Through its diverse geographic, customer, end market and service line portfolio, CEI has grown to become the sixth largest electrical solutions provider in the country.

RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

Revenues in the nine months ended September 30, 2024 were $17.12 billion compared to revenues of $15.10 billion in the nine months ended September 30, 2023, and net income attributable to common stock was $599.7 million, or $4.00 per diluted share, in the nine months ended September 30, 2024 compared to net income attributable to common stock of $533.8 million, or $3.59 per diluted share, in the nine months ended September 30, 2023. Adjusted diluted earnings per share attributable to common stock was $6.03 for the nine months ended September 30, 2024 compared to $5.12 for the nine months ended September 30, 2023.

FULL-YEAR 2024 OUTLOOK

The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, supply chain challenges and other factors affecting project timing and execution have impacted, and may impact in the future, Quanta's financial results. Additionally, we continue to consider future uncertainty associated with overall challenges to the domestic and global economy, including inflation, interest rates and potential recessionary economic conditions. Quanta's financial outlook for revenues, margins and earnings reflects management's effort to align these uncertainties with the backlog the Company is executing on and the opportunities expected to materialize during the remainder of 2024.

Prior to the Company's conference call, management will post a summary of Quanta's updated 2024 guidance expectations with additional commentary in the "News and Events" and "Financial Info" areas of the Investor Relations section of Quanta's website at http://investors.quantaservices.com.

The following forward-looking statements are based on current expectations, and actual results may differ materially, as described below in Cautionary Statement About Forward-Looking Statements and Information. For the full year ending December 31, 2024, Quanta now expects revenues to range between $23.5 billion and $23.9 billion and net income attributable to common stock to range between $853 million and $899 million. Quanta also now expects diluted earnings per share attributable to common stock to range between $5.68 and $5.99 and adjusted diluted earnings per share attributable to common stock to range between $8.50 and $8.80. Quanta now expects EBITDA to range between $2.06 billion and $2.13 billion and adjusted EBITDA to range between $2.25 billion and $2.32 billion. Additionally, for the full year ending December 31, 2024, Quanta now expects net cash attributable to operating activities to range between $1.78 billion and $2.00 billion and free cash flow (a non-GAAP financial measure) to range between $1.30 billion and $1.50 billion.

NON-GAAP FINANCIAL MEASURES

The financial measures not prepared in conformity with generally accepted accounting principles in the United States (GAAP) that are utilized in this press release are provided to enable investors, analysts and management to evaluate Quanta's performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing Quanta's operating results with those of its competitors. These measures should be used in addition to, and not in lieu of, financial measures prepared in conformity with GAAP.

Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Quanta's current and historical results and full-year 2024 expectations (as applicable): adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock; adjusted net income attributable to common stock, EBITDA and adjusted EBITDA to net income attributable to common stock; free cash flow to net cash provided by operating activities; and backlog to remaining performance obligations.

EARNINGS CONFERENCE CALL AND SUPPLEMENTAL MATERIALS INFORMATION

Quanta Services has scheduled a conference call for 9:00 a.m. Eastern Time on October 31, 2024, which will also be broadcast live over the Internet. To participate in the call, dial 1-201-689-8345 or 1-877-407-8291 at least 10 minutes before the conference call begins and ask for the Quanta Services Third Quarter Earnings Conference Call or visit the Investor Relations section of the Quanta Services website at http://investors.quantaservices.com to access the Internet broadcast. Please allow at least 15 minutes to register and download and install any necessary audio software. For those who cannot participate live, shortly following the call a digital recording will be available on the Company's website and a telephonic replay will be available through November 6, 2024 by dialing 1-877-660-6853 and referencing the conference ID 13743887.

Additionally, Quanta has posted its Third Quarter 2024 Operational and Financial Commentary, as well as all other supplemental earnings call materials, in the Investor Relations section of the Quanta Services website. While management intends to make brief introductory remarks during the earnings call, the Operational and Financial Commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community. For more information, please contact Kip Rupp, Vice President - Investor Relations at Quanta Services, at 713-341-7260 or investors@quantaservices.com.

FOLLOW QUANTA IR ON SOCIAL MEDIA

Investors and others should note that while Quanta announces material financial information and makes other public disclosures of information regarding Quanta through U.S. Securities and Exchange Commission (SEC) filings, press releases and public conference calls, it also utilizes social media to communicate this information. It is possible that the information Quanta posts on social media could be deemed material. Accordingly, Quanta encourages investors, the media and others interested in our company to follow Quanta, and review the information it posts, on the social media channels listed in the Investor Relations section of the Quanta Services website.

ABOUT QUANTA SERVICES

Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, renewable energy, technology, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, technology and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.

Cautionary Statement About Forward-Looking Statements and Information

This press release (and oral statements regarding the subject matter of this press release, including those made on the conference call and webcast announced herein) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to projected revenues, net income, earnings per share, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, interest rates and tax rates, as well as other projections of operating results and GAAP and non-GAAP financial results, including EBITDA, adjusted EBITDA and backlog; expectations regarding Quanta's business or financial outlook; expectations regarding opportunities, technological developments, competitive positioning, future economic and regulatory conditions and other trends in particular markets or industries; expectations regarding Quanta's plans and strategies, including with respect to supply chain solutions and expanded or new services offerings; the business plans or financial condition of Quanta's customers, including with respect to the transition to a reduced-carbon economy; the potential benefits from, and future financial and operational performance of, acquired businesses and investments, including CEI; the expected value of contracts or intended contracts with customers, as well as the expected timing, scope, services, term or results of any awarded or expected projects; possible recovery of pending or contemplated insurance claims, change orders and claims asserted against customers or third parties, as well as the collectability of receivables; the development of and opportunities with respect to future projects, including renewable energy projects and other projects designed to support the transition to a reduced-carbon economy, electrical grid modernization projects, upgrade and hardening projects, larger transmission and pipeline projects and data center projects; expectations regarding the future availability and price of materials and equipment necessary for the performance of Quanta's business; the expected impact of global and domestic economic or political conditions on Quanta's business, financial condition, results of operations, cash flows, liquidity and demand for our services, including inflation, interest rates and recessionary economic conditions and commodity prices and production volumes; the expected impact of changes or potential changes in climate and the physical and transition risks associated with climate change and the transition to a reduced-carbon economy; statements reflecting expectations, goals, targets, intentions, strategies, assumptions, plans, or beliefs regarding Quanta's sustainability strategy;  future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future acquisitions, investments, cash dividends, repurchases of Quanta's equity or debt securities or repayments of other outstanding debt; the impact of existing or potential legislation or regulation; potential opportunities that may be indicated by bidding activity or discussions with customers; the future demand for, availability of and costs related to labor resources in the industries Quanta serves; the expected recognition and realization of remaining performance obligations and backlog; expectations regarding the outcome of pending or threatened legal proceedings, as well as the collection of amounts awarded in legal proceedings; and expectations regarding Quanta's ability to reduce its debt and maintain its current credit ratings; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance; rather they involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties including, among others, market, industry, economic, financial or political conditions that are outside of the control of Quanta, including economic, energy, infrastructure and environmental policies and plans that are adopted or proposed by the U.S. federal and state governments or other governments in territories or countries in which Quanta operates, inflation, interest rates, recessionary economic conditions, deterioration of global or specific trade relationships and geopolitical conflicts and political unrest; quarterly variations in operating and financial results, liquidity, financial condition, cash flows, capital requirements and reinvestment opportunities; trends and growth opportunities in relevant markets, including Quanta's ability to obtain future project awards; delays, deferrals, reductions in scope or cancellations of anticipated, pending or existing projects as a result of, among other things, supply chain or production disruptions and other logistical challenges, weather, regulatory or permitting issues, right of way acquisition, environmental processes, project performance issues, claimed force majeure events, protests or other political activity, legal challenges, inflationary pressure, reductions or eliminations in governmental funding or customer capital constraints; the effect of commodity prices and production volumes, which have been and may continue to be affected by inflationary pressure, on Quanta's operations and growth opportunities and on customers' capital programs and demand for Quanta's services; the successful negotiation, execution, performance and completion of anticipated, pending and existing contracts; events arising from operational hazards, including, among others, wildfires and explosions, that can arise due to the nature of Quanta's services and certain of Quanta's product solutions, as well as the conditions in which Quanta operates and can be due to the failure of infrastructure on which Quanta has performed services and result in significant liabilities that may be exacerbated in certain geographies and locations; unexpected costs, liabilities, fines or penalties that may arise from legal proceedings, indemnity obligations, reimbursement obligations associated with letters of credit or bonds, multiemployer pension plans or other claims or actions asserted against Quanta, including amounts not covered by, or in excess of the coverage under, third-party insurance; potential unavailability or cancellation of third-party insurance coverage, as well as the exclusion of coverage for certain losses, potential increases in premiums and deductibles for coverage deemed beneficial to Quanta, or the unavailability of coverage deemed beneficial to Quanta at reasonable and competitive rates (e.g., coverage for wildfire events); damage to Quanta's brand or reputation, as well as potential costs, liabilities, fines and penalties, arising as a result of cybersecurity breaches, environmental and occupational health and safety matters, corporate scandal, failure to successfully perform or negative publicity regarding a high-profile or large-scale infrastructure project, involvement in a catastrophic event (e.g., fire, explosion) or other negative incidents; disruptions in, or failure to adequately protect, Quanta's information technology systems; Quanta's dependence on suppliers, subcontractors, equipment manufacturers and other third-parties, and the impact of, among other things, inflationary pressure, regulatory, supply chain and logistical challenges on these third parties; estimates and assumptions relating to financial results, remaining performance obligations and backlog; Quanta's inability to attract, the potential shortage of and increased costs with respect to skilled employees, as well as Quanta's inability to retain or attract key personnel and qualified employees; Quanta's dependence on fixed price contracts and the potential to incur losses with respect to these contracts; cancellation provisions within contracts and the risk that contracts expire and are not renewed or are replaced on less favorable terms; Quanta's inability or failure to comply with the terms of its contracts, which may result in additional costs, unexcused delays, warranty claims, failure to meet performance guarantees, damages or contract terminations; adverse weather conditions, natural disasters and other emergencies, including wildfires, pandemics, hurricanes, tropical storms, floods, debris flows, earthquakes and other geological- and weather-related hazards; the impact of climate change; Quanta's ability to generate internal growth; competition in Quanta's business, including the ability to effectively compete for new projects and market share, as well as technological advancements and market developments that could reduce demand for Quanta's services; the failure of existing or potential legislative actions and initiatives to result in increased demand for Quanta's services or budgetary or other constraints that may reduce or eliminate tax incentives or government funding for projects, including renewable energy projects, which may result in project delays or cancellations; unavailability of, or increased prices for, materials, equipment and consumables (such as fuel) used in Quanta's or its customers' businesses, including as a result of inflation, supply chain or production disruptions, governmental regulations on sourcing, the imposition of tariffs, duties, taxes or other assessments, and other changes in U.S. trade relationships with foreign countries; loss of or deterioration of relationships with customers that Quanta has long-standing or significant relationships with; the potential that participation in joint ventures or similar structures exposes Quanta to liability or harm to its reputation as a result of acts or omissions by partners; the inability or refusal of customers or third-party contractors to pay for services, which could result in the inability to collect our outstanding receivables, failure to recover amounts billed to, or avoidance of certain payments received from, customers in bankruptcy or failure to recover on change orders or contract claims; risks associated with operating in international markets and U.S. territories, including instability of governments, significant currency exchange fluctuations, and compliance with unfamiliar legal and labor systems and cultural practices, the U.S. Foreign Corrupt Practices Act and other applicable anti-bribery and anti-corruption laws, and complex U.S. and foreign tax regulations and international treaties; inability to successfully identify, complete, integrate and realize synergies from acquisitions, including the inability to retain key personnel from acquired businesses; the potential adverse impact of acquisitions and investments, including the potential increase in risks already existing in Quanta's operations, poor performance or decline in value of acquired businesses or investments and unexpected costs or liabilities that may arise from acquisitions or investments; the adverse impact of impairments of goodwill, other intangible assets, receivables, long-lived assets or investments; difficulties managing Quanta's business as it expands and becomes more complex; the impact of the unionized portion of Quanta's workforce on its operations; inability to access sufficient funding to finance desired growth and operations, including the ability to access capital markets on favorable terms, as well as fluctuations in the price and trading volume of Quanta's common stock, debt covenant compliance, interest rate fluctuations, a downgrade in our credit ratings and other factors affecting financing and investing activities; the ability to obtain bonds, letters of credit and other project security; risks related to the implementation of new information technology systems; new or changed tax laws, treaties or regulations or the inability to realize deferred tax assets; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2023, Quanta's Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 (when filed) and any other documents that Quanta files with the SEC. For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through Quanta's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.

Contacts:

Jayshree Desai, CFO

 Media – Liz James  


Kip Rupp, CFA, IRC - Investors

FGS Global


Quanta Services, Inc.

(281) 881-5170


(713) 629-7600

Quanta Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the Three and Nine Months Ended

September 30, 2024 and 2023

(In thousands, except per share information)

(Unaudited)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023

Revenues

$  6,493,167


$  5,620,822


$  17,119,373


$  15,098,258

Cost of services

5,480,597


4,773,498


14,671,978


12,953,640

Gross profit

1,012,570


847,324


2,447,395


2,144,618

Equity in earnings of integral unconsolidated affiliates

14,015


11,707


34,935


30,697

Selling, general and administrative expenses

(483,878)


(386,538)


(1,318,574)


(1,155,261)

Amortization of intangible assets

(110,422)


(71,361)


(267,147)


(213,789)

Change in fair value of contingent consideration liabilities

(1,124)


(803)


(2,864)


(803)

Operating income

431,161


400,329


893,745


805,462

Interest and other financing expenses

(59,950)


(47,531)


(146,343)


(137,413)

Interest income

7,237


1,993


18,817


4,957

Other income (expense), net

2,994


(3,744)


29,493


7,541

Income before income taxes

381,442


351,047


795,712


680,547

Provision for income taxes

82,421


77,522


178,716


143,468

Net income

299,021


273,525


616,996


537,079

Less: Net income attributable to non-controlling interests

5,836


689


17,292


3,298

Net income attributable to common stock

$     293,185


$     272,836


$     599,704


$     533,781









Earnings per share attributable to common stock:








Basic

$           1.99


$           1.88


$           4.09


$           3.68

Diluted

$           1.95


$           1.83


$           4.00


$           3.59









Shares used in computing earnings per share:








Weighted average basic shares outstanding

147,394


145,455


146,639


145,118

Weighted average diluted shares outstanding

150,556


148,792


149,911


148,749

 

Quanta Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



September 30,


December 31,


2024


2023

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$              764,067


$           1,290,248

Accounts receivable, net

5,149,915


4,410,829

Contract assets

1,328,833


1,413,057

Inventories

275,852


175,658

Prepaid expenses and other current assets

527,382


387,105

Total current assets

8,046,049


7,676,897

PROPERTY AND EQUIPMENT, net

2,649,467


2,336,943

OPERATING LEASE RIGHT-OF-USE ASSETS

302,786


249,443

OTHER ASSETS, net

619,139


565,625

OTHER INTANGIBLE ASSETS, net

1,966,689


1,362,412

GOODWILL

5,282,170


4,045,905

Total assets

$         18,866,300


$         16,237,225





LIABILITIES AND EQUITY




CURRENT LIABILITIES:




Current maturities of long-term debt

$              556,238


$              535,202

Current portion of operating lease liabilities

94,685


77,995

Accounts payable and accrued expenses

3,999,027


3,061,242

Contract liabilities

1,875,388


1,538,677

Total current liabilities

6,525,338


5,213,116

LONG-TERM DEBT, net of current maturities

4,131,843


3,663,504

OPERATING LEASE LIABILITIES, net of current portion

224,282


186,996

DEFERRED INCOME TAXES

337,025


254,004

INSURANCE AND OTHER NON-CURRENT LIABILITIES

558,787


636,250

Total liabilities

11,777,275


9,953,870

TOTAL STOCKHOLDERS' EQUITY

7,070,617


6,272,241

NON-CONTROLLING INTERESTS

18,408


11,114

TOTAL EQUITY

7,089,025


6,283,355

Total liabilities and equity

$         18,866,300


$         16,237,225

 

Quanta Services, Inc. and Subsidiaries
Supplemental Segment Data
For the Three and Nine Months Ended
September 30, 2024 and 2023
(In thousands, except percentages)
(Unaudited) 

Segment Results

Quanta reports its results under three reportable segments: (1) Electric Power Infrastructure Solutions, (2) Renewable Energy Infrastructure Solutions and (3) Underground Utility and Infrastructure Solutions. The following table sets forth segment revenues, segment operating income (loss) and operating margins for the periods indicated. Operating margins are calculated by dividing operating income by revenues. 


Three Months Ended September 30,


Nine Months Ended September 30,


2024


2023


2024


2023

Revenues:
















Electric Power Infrastructure Solutions

$ 2,982,032


45.9 %


$ 2,489,547


44.3 %


$ 7,761,480


45.3 %


$ 7,240,838


48.0 %

Renewable Energy Infrastructure Solutions

2,251,855


34.7


1,746,636


31.1


5,870,411


34.3


4,144,304


27.4

Underground Utility and Infrastructure Solutions

1,259,280


19.4


1,384,639


24.6


3,487,482


20.4


3,713,116


24.6

Consolidated revenues

$ 6,493,167


100.0 %


$ 5,620,822


100.0 %


$  17,119,373


100.0 %


$  15,098,258


100.0 %

















Operating income (loss):
















Electric Power Infrastructure Solutions (a)

354,505


11.9 %


296,176


11.9 %


846,390


10.9 %


755,342


10.4 %

Renewable Energy Infrastructure Solutions

221,509


9.8 %


151,389


8.7 %


459,076


7.8 %


297,532


7.2 %

Underground Utility and Infrastructure Solutions (b)

93,956


7.5 %


123,764


8.9 %


222,437


6.4 %


292,544


7.9 %

Corporate and Non-Allocated Costs (c)

(238,809)


(3.7) %


(171,000)


(3.0) %


(634,158)


(3.7) %


(539,956)


(3.6) %

Consolidated operating income

$    431,161


6.6 %


$    400,329


7.1 %


$    893,745


5.2 %


$    805,462


5.3 %


(a) Included in operating income for the Electric Power Infrastructure Solutions segment was equity in earnings of integral unconsolidated affiliates of $14.0 million and $11.7 million for the three months ended September 30, 2024 and 2023 and $34.9 million and $30.7 million for the nine months ended September 30, 2024 and 2023.


(b) Included in operating income for the Underground Utility and Infrastructure Solutions segment was a loss of $11.9 million on the disposition of a non-core business during the nine months ended September 30, 2024, which also impacted operating income as a percentage of segment revenue by approximately 35 basis points.


(c) Included in corporate and non-allocated costs was, among other things, amortization expense of $110.4 million and $71.4 million for the three months ended September 30, 2024 and 2023, and $267.1 million and $213.8 million for the nine months ended September 30, 2024 and 2023 and acquisition and integration costs of $7.1 million and $4.2 million for the three months ended September 30, 2024 and 2023, and $25.5 million and $26.3 million for the nine months ended September 30, 2024 and 2023. 

 

Quanta Services, Inc. and Subsidiaries
Supplemental Data
(In thousands)
(Unaudited)

Remaining Performance Obligations and Backlog (a non-GAAP financial measure)

Quanta's remaining performance obligations represent management's estimate of consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work has not yet begun, which includes estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes they will be earned and are probable of collection.

Quanta has also historically disclosed its backlog, a measure commonly used in its industry but not recognized under GAAP. Quanta believes this measure enables management to more effectively forecast its future capital needs and results and better identify future operating trends that may not otherwise be apparent. Quanta believes this measure is also useful for investors in forecasting Quanta's future results and comparing Quanta to its competitors. Quanta's remaining performance obligations, as described above, are a component of its backlog calculation, which also includes estimated orders under master service agreements (MSAs), including estimated renewals, and certain non-fixed price contracts. Quanta's methodology for determining backlog may not be comparable to the methodologies used by other companies.

The following table reconciles Quanta's total remaining performance obligations to total backlog by reportable segment, along with estimates of amounts expected to be realized within 12 months. The following table shows dollars in thousands.



September 30, 2024


December 31, 2023


September 30, 2023



12 Month


Total


12 Month


Total


12 Month


Total

Electric Power Infrastructure Solutions













Remaining performance obligations


$    4,276,630


$    7,081,450


$    2,762,608


$    4,505,830


$    2,693,352


$    4,383,055

Estimated orders under MSAs and short-term, non-fixed price contracts


5,935,083


12,868,759


5,597,732


10,995,198


5,302,341


11,036,307

Backlog


$  10,211,713


$  19,950,209


$    8,360,340


$  15,501,028


$    7,995,693


$  15,419,362














Renewable Energy Infrastructure Solutions













Remaining performance obligations


$    5,230,590


$    7,138,365


$    5,512,159


$    8,005,368


$    5,712,436


$    7,713,988

Estimated orders under MSAs and short-term, non-fixed price contracts


301,359


432,580


118,770


119,634


112,534


201,851

Backlog


$    5,531,949


$    7,570,945


$    5,630,929


$    8,125,002


$    5,824,970


$    7,915,839














Underground Utility and Infrastructure Solutions













Remaining performance obligations


$    1,161,919


$    1,389,715


$    1,017,227


$    1,383,057


$    1,143,729


$    1,464,623

Estimated orders under MSAs and short-term, non-fixed price contracts


2,220,595


5,053,421


2,222,451


5,099,332


2,054,024


5,295,722

Backlog


$    3,382,514


$    6,443,136


$    3,239,678


$    6,482,389


$    3,197,753


$    6,760,345














Total













Remaining performance obligations


$  10,669,139


$  15,609,530


$    9,291,994


$  13,894,255


$    9,549,517


$  13,561,666

Estimated orders under MSAs and short-term, non-fixed price contracts


8,457,037


18,354,760


7,938,953


16,214,164


7,468,899


16,533,880

Backlog


$  19,126,176


$  33,964,290


$  17,230,947


$  30,108,419


$  17,018,416


$  30,095,546

 

Quanta Services, Inc. and Subsidiaries 
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income and 
Adjusted Diluted Earnings Per Share
Attributable to Common Stock
For the Three and Nine Months Ended
September 30, 2024 and 2023
(In thousands, except per share information)

The following table presents the reconciliations of the non-GAAP financial measures of adjusted net income attributable to common stock to net income attributable to common stock and adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock for the three and nine months ended September 30, 2024 and 2023. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's performance. Management believes that the exclusion of certain items from net income attributable to common stock and diluted earnings per share attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and better identify operating trends that may not otherwise be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers. However, these non-GAAP measures should not be considered as alternatives to net income attributable to common stock and diluted earnings per share attributable to common stock or other measures of performance that are derived in accordance with GAAP.

As to certain of the items in the table: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) amortization of intangible assets and amortization included in equity in earnings are impacted by Quanta's acquisition activities and investments in integral unconsolidated affiliates, and therefore can vary from period to period; (iii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (v) equity in earnings and losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; and (vi) gains and losses on the sales of investments and businesses vary from period to period depending on activity.

Because adjusted net income attributable to common stock and adjusted diluted earnings per share attributable to common stock, as defined, exclude some, but not all, items that affect net income attributable to common stock and diluted earnings per share attributable to common stock, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income attributable to common stock and diluted earnings per share attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.

Quanta Services, Inc. and Subsidiaries  

Reconciliation of Non-GAAP Financial Measures

Adjusted Net Income and Adjusted Diluted Earnings

Per Share Attributable to Common Stock 

For the Three and Nine Months Ended

September 30, 2024 and 2023

(In thousands, except per share information)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023

Reconciliation of adjusted net income attributable to common stock:








Net income attributable to common stock (GAAP as reported)

$  293,185


$  272,836


$  599,704


$  533,781

Acquisition and integration costs

7,053


4,166


25,461


26,338

Change in fair value of contingent consideration liabilities

1,124


803


2,864


803

Equity in losses (earnings) of non-integral unconsolidated affiliates

1,662


966


(1,413)


(1,119)

Loss on disposition of business (gain on sale of investment), net (a)

662



4,370


(1,496)

Income tax impact of adjustments (b)

(1,782)


(24,206)


(5,909)


(28,426)

Impact of income tax contingency releases (c)

(3,065)



(3,065)


Adjusted net income attributable to common stock before certain non-cash adjustments

298,839


254,565


622,012


529,881

Non-cash stock-based compensation

38,234


32,600


110,815


94,658

Amortization of intangible assets

110,422


71,361


267,147


213,789

Amortization included in equity in earnings of integral unconsolidated affiliates

870


1,465


3,602


4,726

Income tax impact of non-cash adjustments (b)

(38,909)


(27,439)


(99,290)


(81,509)

Adjusted net income attributable to common stock

$  409,456


$  332,552


$  904,286


$  761,545









Reconciliation of adjusted diluted earnings per share:








Diluted earnings per share attributable to common stock (GAAP as reported)

$         1.95


$         1.83


$         4.00


$         3.59

Acquisition and integration costs

0.05


0.03


0.17


0.18

Change in fair value of contingent consideration liabilities

0.01


0.01


0.02


0.01

Equity in losses (earnings) of non-integral unconsolidated affiliates

0.01


0.01


(0.01)


(0.01)

Loss on disposition of business (gain on sale of investment), net (a)



0.03


(0.01)

Income tax impact of adjustments (b)

(0.02)


(0.17)


(0.04)


(0.20)

Impact of income tax contingency releases (c)

(0.02)



(0.02)


Adjusted diluted earnings per share before certain non-cash adjustments

1.98


1.71


4.15


3.56

Non-cash stock-based compensation

0.25


0.22


0.74


0.64

Amortization of intangible assets

0.73


0.48


1.78


1.44

Amortization included in equity in earnings of integral unconsolidated affiliates

0.01


0.01


0.02


0.03

Income tax impact of non-cash adjustments (b)

(0.25)


(0.18)


(0.66)


(0.55)

Adjusted diluted earnings per share

$         2.72


$         2.24


$         6.03


$         5.12









Weighted average shares outstanding for diluted and adjusted diluted earnings per share

150,556


148,792


149,911


148,749


See notes to follow.


(a) The amount for the nine months ended September 30, 2024 is a loss of $11.9 million on the disposition of a non-core business, partially offset by a gain of $7.5 million as a result of the sale of a non-integral equity method investment.


(b) The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods.


(c) The amount for the three and nine months ended September 30, 2024 is a release of tax contingencies upon expiration of certain statute of limitations periods.

 

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
For the Three and Nine Months Ended
September 30, 2024 and 2023
(In thousands)

The following table presents reconciliations of the non-GAAP financial measures of EBITDA and adjusted EBITDA to net income attributable to common stock for the three and nine months ended September 30, 2024 and 2023. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers.

As to certain of the items below: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iii) equity in earnings and losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; (iv) gains and losses on the sales of investments and businesses vary from period to period depending on activity; and (v) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations. Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included below.


Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023

Net income attributable to common stock (GAAP as reported)

$  293,185


$  272,836


$  599,704


$  533,781

Interest and other financing expenses

59,950


47,531


146,343


137,413

Interest income

(7,237)


(1,993)


(18,817)


(4,957)

Provision for income taxes

82,421


77,522


178,716


143,468

Depreciation expense

89,979


81,488


262,525


239,746

Amortization of intangible assets

110,422


71,361


267,147


213,789

Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates

5,384


5,256


15,608


14,538

EBITDA

634,104


554,001


1,451,226


1,277,778

Non-cash stock-based compensation

38,234


32,600


110,815


94,658

Acquisition and integration costs

7,053


4,166


25,461


26,338

Equity in losses (earnings) of non-integral unconsolidated affiliates

1,662


966


(1,413)


(1,119)

Loss on disposition of business (gain on sale of investment), net (a)

662



4,370


(1,496)

Change in fair value of contingent consideration liabilities

1,124


803


2,864


803

Adjusted EBITDA

$  682,839


$  592,536


$  1,593,323


$  1,396,962



(a)

The amount for the nine months ended September 30, 2024 is a loss of $11.9 million on the disposition of a non-core business, partially offset by a gain of $7.5 million as a result of the sale of a non-integral equity method investment.

 

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Free Cash Flow 
For the Three and Nine Months Ended 
September 30, 2024 and 2023
(In thousands)
(Unaudited)

Reconciliation of Free Cash Flow:

The following table presents a reconciliation of the non-GAAP financial measure of free cash flow to net cash provided by operating activities for the three and nine months ended September 30, 2024 and 2023. This reconciliation is intended to provide useful information to investors and analysts as they evaluate Quanta's ability to generate the cash required to maintain and potentially expand its business. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from the sale of property and equipment and from insurance settlements related to property and equipment. Management believes that free cash flow provides useful information to Quanta's investors because free cash flow is viewed by management as an important indicator of how much cash is provided or used by routine business operations, including the impact of net capital expenditures. Management uses this measure for capital allocation purposes as it is viewed as a measure of cash available to fund debt payments, acquire businesses, repurchase common stock and debt securities, declare and pay dividends and transact other investing and financing activities. However, this measure should not be considered as an alternative to net cash provided by operating activities or other measures of performance that are derived in accordance with GAAP. The most comparable GAAP financial measure, net cash provided by operating activities, and information reconciling the GAAP and non-GAAP financial measures, are included below. The following table shows dollar in thousands.


Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023

Net cash provided by operating activities

$       739,914


$        406,592


$    1,369,181


$       572,414

Less: Net capital expenditures:








Capital expenditures

(212,498)


(139,800)


(457,093)


(325,397)

Cash proceeds from sale of property and equipment and related insurance settlements

12,054


13,020


67,230


47,983

Net capital expenditures

(200,444)


(126,780)


(389,863)


(277,414)

Free Cash Flow

$       539,470


$        279,812


$       979,318


$       295,000

 

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated Adjusted Net Income and 
Adjusted Diluted Earnings Per Share
Attributable to Common Stock
For the Full Year 2024
(In thousands, except per share information)

The following table presents reconciliations of the non-GAAP financial measures of estimated adjusted net income attributable to common stock to estimated net income attributable to common stock and estimated adjusted diluted earnings per share attributable to common stock to estimated diluted earnings per share attributable to common stock for the full year ending December 31, 2024. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's expected future performance. Management believes that the exclusion of certain items from net income attributable to common stock and diluted earnings per share attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and better identify operating trends that may not otherwise be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers. However, these non-GAAP measures should not be considered as alternatives to net income attributable to common stock and diluted earnings per share attributable to common stock or other measures of performance that are derived in accordance with GAAP. As to certain of the items below: (i) non-cash stock-based compensation expense may vary from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) amortization of intangible assets and amortization included in equity in earnings are impacted by Quanta's acquisition activities and investments in integral unconsolidated affiliates, and therefore can vary from period to period; (iii) acquisition and integration costs vary period to period depending on the level and complexity of Quanta's acquisition activity; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (v) equity in earnings and losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; and (vi) gains and losses on the sales of investments and businesses vary from period to period depending on activity.

Because adjusted net income attributable to common stock and adjusted diluted earnings per share attributable to common stock, as defined, exclude some, but not all, items that affect net income attributable to common stock and diluted earnings per share attributable to common stock, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income attributable to common stock and diluted earnings per share attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.

Quanta Services, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Estimated Adjusted Net Income and

Adjusted Diluted Earnings Per Share

Attributable to Common Stock

For the Full Year 2024

(In thousands, except per share information)



Estimated Range


Full Year Ending


December 31, 2024

Reconciliation of estimated adjusted net income attributable to common stock:




Net income attributable to common stock (as defined by GAAP)

$              853,100


$              898,500

Acquisition and integration costs

27,100


27,100

Change in fair value of contingent consideration liabilities

2,900


2,900

Equity in earnings of non-integral unconsolidated affiliates

(1,400)


(1,400)

Loss on disposition of business (gain on sale of investment), net (a)

4,400


4,400

Non-cash stock-based compensation

152,600


152,600

Amortization of intangible assets

382,100


382,100

Amortization included in equity in earnings of integral unconsolidated affiliates

4,500


4,500

Income tax impact of adjustments (b)

(146,600)


(146,600)

Impact of income tax contingency releases (c)

(3,100)


(3,100)

Adjusted net income attributable to common stock

$           1,275,600


$           1,321,000





Reconciliation of adjusted diluted earnings per share:




Diluted earnings per share attributable to common stock ( as defined by GAAP)

$                    5.68


$                    5.99

Acquisition and integration costs

0.18


0.18

Change in fair value of contingent consideration liabilities

0.02


0.02

Equity in earnings of non-integral unconsolidated affiliates

(0.01)


(0.01)

Loss on disposition of business (gain on sale of investment), net (a)

0.03


0.03

Non-cash stock-based compensation

1.02


1.02

Amortization of intangible assets

2.55


2.55

Amortization included in equity in earnings of integral unconsolidated affiliates

0.03


0.03

Income tax impact of adjustments (b)

(0.98)


(0.99)

Impact of income tax contingency releases (c)

(0.02)


(0.02)

Adjusted net income attributable to common stock

$                    8.50


$                    8.80





Weighted average shares outstanding for diluted and adjusted diluted earnings per share attributable to common stock

150,100


150,100


(a) The amount is a loss of $11.9 million on the disposition of a non-core business, partially offset by a gain of $7.5 million as a result of the sale of a non-integral equity method investment.


(b) The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods.


(c) The amount is releases of tax contingencies upon expiration of certain statute of limitations periods.

 

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated EBITDA and Adjusted EBITDA
For the Full Year 2024
(In thousands)

The following table presents the reconciliations of the non-GAAP financial measures of estimated EBITDA and estimated adjusted EBITDA to estimated net income attributable to common stock for the full year ending December 31, 2024. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's expected future performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers.

As to certain of the items below: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iii) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (iv) gains and losses on the sales of investments and businesses vary from period to period depending on activity; and (v) equity in earnings and losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta.

Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.


Estimated Range


Full Year Ending


December 31, 2024

Net income attributable to common stock (as defined by GAAP)

$              853,100


$              898,500

Interest and other financing expenses, net

174,000


178,000

Provision for income taxes

276,700


295,300

Depreciation expense

356,200


356,200

Amortization of intangible assets

382,100


382,100

Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates

20,200


20,200

EBITDA

2,062,300


2,130,300

Non-cash stock-based compensation

152,600


152,600

Acquisition and integration costs

27,100


27,100

Change in fair value of contingent consideration liabilities

2,900


2,900

Loss on disposition of business (gain on sale of investment), net (a)

4,400


4,400

Equity in earnings of non-integral unconsolidated affiliates

(1,400)


(1,400)

Adjusted EBITDA

$           2,247,900


$           2,315,900


(a) The amount is a loss of $11.9 million on the disposition of a non-core business, partially offset by a gain of $7.5 million as a result of the sale of a non-integral equity method investment.

 

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated Free Cash Flow
For the Full Year 2024
(In thousands)
(Unaudited)

The following table presents a reconciliation of the non-GAAP financial measure of estimated free cash flow to estimated net cash provided by operating activities for the full year ending December 31, 2024. This reconciliation is intended to provide useful information to investors and analysts as they evaluate Quanta's expectations regarding its ability to generate the cash required to maintain and potentially expand its business. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from the sale of property and equipment and from insurance settlements related to property and equipment. Management believes that free cash flow provides useful information to Quanta's investors because free cash flow is viewed by management as an important indicator of how much cash is provided or used by routine business operations, including the impact of net capital expenditures. Management uses this measure for capital allocation purposes as it is viewed as a measure of cash available to fund debt payments, acquire businesses, repurchase common stock and debt securities, declare and pay dividends and transact other investing and financing activities. However, this measure should not be considered as an alternative to net cash provided by operating activities or other measures of performance that are derived in accordance with GAAP. The most comparable GAAP financial measure, net cash provided by operating activities, and information reconciling the GAAP and non-GAAP financial measures, are included below.


Estimated Range


Full Year Ending


December 31, 2024

Net cash provided by operating activities

$    1,775,000


$    2,000,000

Less: Net capital expenditures

(475,000)


(500,000)

Free Cash Flow

$    1,300,000


$    1,500,000

 

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SOURCE Quanta Services, Inc.

FAQ

What was Quanta Services (PWR) revenue in Q3 2024?

Quanta Services reported record quarterly revenues of $6.49 billion in Q3 2024, compared to $5.62 billion in Q3 2023.

What was Quanta Services (PWR) earnings per share in Q3 2024?

Quanta Services reported GAAP diluted EPS of $1.95 and adjusted diluted EPS of $2.72 in Q3 2024.

What is Quanta Services (PWR) current backlog as of Q3 2024?

Quanta Services reported a record total backlog of $34.0 billion and remaining performance obligations of $15.6 billion in Q3 2024.

What major acquisitions did Quanta Services (PWR) complete in 2024?

Quanta Services completed the acquisition of Cupertino Electric in July 2024 and a power transformer manufacturing company in September 2024, among eight total acquisitions in the first nine months.

Quanta Services, Inc.

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45.02B
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Engineering & Construction
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