01—Abstract
Summary
Summary of the 10-K filed February 25, 2022. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) demonstrated robust revenue growth in 2021, reaching $12.98 billiona, an increase of 15.9% compared to 2020.
This growth was driven by strong performance across all segments, particularly Electric Power Infrastructure Solutions and the newly expanded Renewable Energy Infrastructure Solutions, bolstered by the significant acquisition of Blattner Holding Company. Operating income also saw a healthy increase of 8.5% to $663.5 millionb, reflecting improved operational efficiencies and higher revenue absorption.
The company's backlog and remaining performance obligations saw substantial increases, indicating a strong pipeline of future work, particularly in the utility and renewable energy sectors, which are benefiting from ongoing grid modernization, clean energy transition, and infrastructure investments. Despite facing some challenges like supply chain disruptions and labor availability, Quanta's diversified service offerings and strategic focus position it well for continued growth and capitalize on favorable long-term industry trends.
02—Key points
Key Highlights
- Revenue increased by 15.9% to $12.98 billion in 2021, driven by strong performance across all segments.
- Acquisition of Blattner Holding Company significantly expanded the Renewable Energy Infrastructure Solutions segment.
- Operating income grew by 8.5% to $663.5 million, indicating improved profitability and operational leverage.
- Backlog and remaining performance obligations increased significantly, signaling strong future revenue potential.
- Electric Power Infrastructure Solutions benefited from increased utility spending on grid modernization and hardening.
- Renewable Energy Infrastructure Solutions is poised for growth driven by the transition to a carbon-neutral economy.
- The company is navigating supply chain challenges and labor availability issues through strategic initiatives and workforce development.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Quanta Services kept $0.04.
- Revenue$12.98B100.0%
- Cost of revenue−$11.03B85.0%
- Gross profit$1.95B15.0%
- Operating costs−$1.29B9.9%
- Operating income$663.5M5.1%
- Interest, other & tax−$171.5M1.3%
- Net income$492.0M3.8%
Where FY2021 revenue went
$12.98B- Cost of revenue: $11.03B, 85% of revenue
- Net income: $492.0M, 3.8% of revenue
- SG&A: $1.16B, 8.9% of revenue
- Other operating costs: $133.8M, 1.0% of revenue
- Interest, other & tax: $171.5M, 1.3% of revenue
Kept 3.8% as net incomeNet income $492.0M · 3.8%Other operating costs $133.8M · 1.0%Interest, other & tax $171.5M · 1.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 25, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $12.98B$11.20B | +15.9% |
| Cost of Revenue | $11.03B$9.54B | +15.6% |
| Gross Profit | $1.95B$1.66B | +17.6% |
| SG&A Expenses | $1.16B$975.07M | +18.6% |
| Operating Income | $663.52M$611.37M | +8.5% |
| Interest Expense | $68.90M$45.01M | +53.1% |
| Net Income | $491.98M$451.96M | +8.9% |
| EPS (Basic) | $3.45$3.15 | +9.5% |
| EPS (Diluted) | $3.34$3.07 | +8.8% |
| Shares Outstanding (Basic) | 140.82M141.38M | −0.4% |
| Shares Outstanding (Diluted) | 145.37M145.25M | +0.1% |
05—Questions
Frequently Asked Questions
What were the key drivers of Quanta Services' revenue growth in 2021?
Quanta Services' revenue growth in 2021 was primarily driven by increased spending from utility customers on grid modernization and hardening projects within the Electric Power Infrastructure Solutions segment, along with the significant contribution from the acquisition of Blattner Holding Company, which substantially boosted the Renewable Energy Infrastructure Solutions segment. Growth was also noted in the Underground Utility and Infrastructure Solutions segment due to increased demand from gas utility and industrial customers.
How has the acquisition of Blattner Holding Company impacted Quanta Services?
The acquisition of Blattner Holding Company, completed in October 2021, significantly expanded Quanta Services' capabilities and market presence in the renewable energy infrastructure sector. This strategic move added substantial revenue and backlog, positioning the company to capitalize on the growing demand for wind, solar, and battery storage project development and construction.
What are the main challenges or risks highlighted in the report for Quanta Services?
Key challenges and risks identified include supply chain disruptions and material availability, labor shortages and rising labor costs, potential project delays and cost overruns, competition within the industry, and the ongoing impact of climate change, which can lead to both opportunities (emergency restoration) and increased risks (wildfires). The company also noted the potential for significant liabilities related to operational hazards and insurance coverage limitations.
How is Quanta Services positioned to benefit from the energy transition and renewable energy trends?
Quanta Services is well-positioned to benefit from the energy transition through its expanded Renewable Energy Infrastructure Solutions segment, which is equipped to handle utility-scale wind, solar, and battery storage projects. The company also sees opportunities in electric power infrastructure upgrades driven by electrification trends, such as electric vehicle adoption, and the need for grid modernization to support renewable energy integration.
06—Continue