QUANTA SERVICES REPORTS THIRD QUARTER 2024 RESULTS
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.
- 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
- None.
Insights
Quanta Services delivered an impressive Q3 2024 performance with several record-breaking metrics. Revenue grew
Key strengths include robust free cash flow of
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
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
Third Quarter GAAP Diluted EPS of
Net Income Attributable to Common Stock of
Year-to-Date Cash Flow From Operations of
Remaining Performance Obligations of
Raising Mid-Point of Full-Year 2024 Adjusted Earnings Per Share Expectations
* = Record quarterly or record third quarter result
"Quanta delivered another quarter of double-digit growth in many of our financial metrics, reached total backlog of
"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 northeastArkansas , 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 acrossthe 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
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
NON-GAAP FINANCIAL MEASURES
The financial measures not prepared in conformity with generally accepted accounting principles in
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
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
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
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 | 45.9 % | 44.3 % | 45.3 % | 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 | 100.0 % | 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 |
(b) Included in operating income for the Underground Utility and Infrastructure Solutions segment was a loss of |
(c) Included in corporate and non-allocated costs was, among other things, amortization expense of |
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 |
(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 |
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 |
(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 |
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.
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