Summary
Quanta Services, Inc. (PWR) reported strong revenue growth in its 2017 10-K filing, with total revenues reaching $9.47 billion, a 23.7% increase year-over-year. This growth was driven by a significant expansion in its Oil and Gas Infrastructure Services segment, largely due to increased capital spending by customers on midstream gas pipeline transmission projects, and a solid performance in the Electric Power Infrastructure Services segment, bolstered by electric transmission projects and emergency restoration services. The company highlighted increased operating income across both segments, with the Electric Power segment showing robust margin expansion. Despite a notable goodwill impairment charge impacting the Oil and Gas segment, Quanta demonstrated operational resilience and strategic execution. The company also reported healthy liquidity and access to credit facilities, positioning it to fund ongoing operations and future growth initiatives. Investors should note the company's strategic acquisitions, ongoing commitment to training and workforce development, and its positive long-term outlook for infrastructure spending across its key markets.
Financial Highlights
56 data points| Revenue | $9.47B |
| Cost of Revenue | $8.22B |
| Gross Profit | $1.24B |
| SG&A Expenses | $777.92M |
| Operating Income | $378.85M |
| Interest Expense | $20.95M |
| Net Income | $314.98M |
| EPS (Basic) | $2.02 |
| EPS (Diluted) | $2.00 |
| Shares Outstanding (Basic) | 156.12M |
| Shares Outstanding (Diluted) | 157.16M |
Key Highlights
- 1Total revenues increased by 23.7% to $9.47 billion in 2017, driven by strong performance in both Electric Power Infrastructure Services and Oil and Gas Infrastructure Services segments.
- 2Operating income increased by 18.1% to $378.8 million, reflecting improved project execution and higher volumes.
- 3The Electric Power Infrastructure Services segment saw revenues grow by 15.4% to $5.60 billion, with operating income increasing by 30.9% to $518.1 million and margins improving to 9.3%.
- 4The Oil and Gas Infrastructure Services segment experienced significant revenue growth of 38.1% to $3.87 billion, driven by midstream gas pipeline transmission projects, although operating margins slightly decreased to 4.8% due to various project-related costs.
- 5Quanta completed several strategic acquisitions in 2017, including Stronghold, Ltd., which significantly contributed to the Oil and Gas segment's growth.
- 6The company reported a goodwill impairment charge of $57.0 million in the fourth quarter of 2017, primarily impacting two reporting units within the Oil and Gas Infrastructure Services Division.
- 7As of December 31, 2017, Quanta had $138.3 million in cash and cash equivalents and $1.38 billion in working capital, with $728.3 million available under its senior secured revolving credit facility, indicating strong liquidity.