Summary
Quanta Services, Inc. reported revenues of $7.65 billion for the fiscal year ended December 31, 2016. The company operates in two primary segments: Electric Power Infrastructure Services (63% of revenue) and Oil and Gas Infrastructure Services (37% of revenue). The Electric Power segment saw a slight revenue decrease year-over-year, impacted by regulatory and permitting delays on large transmission projects. Conversely, the Oil and Gas segment experienced revenue growth, driven by increased customer capital spending on larger projects and natural gas distribution services. Profitability improved, with gross profit increasing by 9.8% and gross margin expanding to 13.3% from 12.2% in the prior year. This improvement was attributed to better resource utilization, particularly in the second half of 2016, and improved project performance. However, both segments faced project losses, notably on an Alaska power plant construction project for the Electric Power segment. The company also managed an increase in selling, general, and administrative expenses, partly due to acquisition integration costs and employee-related expenses.
Financial Highlights
54 data points| Revenue | $7.65B |
| Cost of Revenue | $6.64B |
| Gross Profit | $1.01B |
| SG&A Expenses | $653.34M |
| Operating Income | $320.81M |
| Interest Expense | $14.89M |
| Net Income | $198.38M |
| EPS (Basic) | $1.26 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 157.29M |
| Shares Outstanding (Diluted) | 157.29M |
Key Highlights
- 1Total revenues for 2016 were $7.65 billion, a slight increase from $7.57 billion in 2015.
- 2The Electric Power Infrastructure Services segment accounted for 63% of total revenue, while the Oil and Gas Infrastructure Services segment accounted for 37%.
- 3Gross profit margin improved to 13.3% in 2016 from 12.2% in 2015, driven by better resource utilization and project performance.
- 4Operating income saw a significant increase of 35.1% to $320.8 million in 2016 from $237.5 million in 2015.
- 5The company completed five acquisitions in 2016 to enhance its service offerings in Australia, Canada, and the United States.
- 6Significant asset impairment charges of $58.5 million were recorded in 2015, primarily related to goodwill and intangible assets in the Oil and Gas segment due to the low commodity price environment.
- 7Backlog at the end of 2016 was $5.85 billion for Electric Power and $2.48 billion for Oil and Gas.