10-KPeriod: FY2023

QUANTA SERVICES, INC. Annual Report, Year Ended Dec 31, 2023

Filed February 22, 2024For Securities:PWR

Summary

Quanta Services, Inc. (PWR) demonstrated strong performance in its latest fiscal year, with significant revenue growth across all segments, driven by robust demand in the electric power, renewable energy, and underground infrastructure sectors. The company's strategic focus on grid modernization, renewable energy infrastructure, and essential utility services, coupled with a successful acquisition strategy, has propelled revenue and operating income increases. Significant backlog growth, reflecting strong customer demand and investments in infrastructure, positions Quanta favorably for continued expansion and execution of its growth initiatives. Financially, Quanta reported substantial increases in net income and operating cash flow, bolstered by operational efficiencies and strategic investments. The company maintained a strong liquidity position and actively managed its capital resources, including strategic acquisitions and returning capital to shareholders. Despite facing some supply chain challenges and inflationary pressures, Quanta's diversified business model and proactive management of operational risks provide a solid foundation for future growth and profitability.

Financial Highlights

54 data points
Beta

Revenue

$20.88B

14.1% Gross Margin

Net Income

$750.69M

3.6% Net Margin

EPS (Diluted)

$5.00

Total Assets

$16.24B

Cash & Equivalents

$1.29B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$20.88B
Cost of Revenue$17.95B
Gross Profit$2.94B
SG&A Expenses$1.56B
Operating Income$1.13B
Interest Expense$186.91M
Net Income$750.69M
EPS (Basic)$5.13
EPS (Diluted)$5.00
Shares Outstanding (Basic)145.22M
Shares Outstanding (Diluted)148.82M

Key Highlights

  • 1Revenue increased by 22.3% to $20.88 billion, driven by growth across all three segments.
  • 2Operating income rose by 29.3% to $1.13 billion, indicating improved profitability.
  • 3Net income attributable to common stock surged by 51.6% to $744.7 million, demonstrating strong bottom-line growth.
  • 4The company's backlog and remaining performance obligations saw substantial increases, reaching $30.11 billion and $13.89 billion, respectively, signaling robust future revenue potential.
  • 5Net cash provided by operating activities increased by 39.4% to $1.58 billion, showcasing strong cash generation.
  • 6Quanta completed several strategic acquisitions in 2023 and early 2024, integrating new capabilities and expanding its market reach.
  • 7The company maintained a strong liquidity position with $2.81 billion in available commitments and cash and cash equivalents as of December 31, 2023.

Frequently Asked Questions

Quanta Services experienced significant revenue growth, up 22.3% to $20.88 billion, driven by increased demand in its Electric Power segment due to utility grid modernization and reliability programs, strong activity in the Renewable Energy segment fueled by the transition to a reduced-carbon economy, and robust demand in its Underground and Infrastructure segment from gas utility modernization and downstream industrial services. Acquired businesses also contributed significantly to this growth.

The company reported a substantial increase in operating income (up 29.3% to $1.13 billion) and net income attributable to common stock (up 51.6% to $744.7 million). This improved performance was driven by increased revenues across all segments, operational efficiencies, and strategic acquisitions. The company also benefited from a lower effective income tax rate in 2023.

Quanta Services has a strong outlook, evidenced by a significant increase in its backlog to $30.11 billion and remaining performance obligations to $13.89 billion as of December 31, 2023. This growth reflects sustained high demand for infrastructure solutions in its core markets, positioning the company for continued revenue generation and execution of its strategic initiatives.

Quanta Services pursues growth through a combination of organic expansion and strategic acquisitions. The company actively deploys capital towards capital expenditures to meet anticipated demand, invests in strategic acquisitions to broaden its capabilities and market presence, and returns capital to shareholders through dividends and stock repurchases. A strong liquidity position and access to credit facilities support these capital allocation priorities.