01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported a strong financial performance for the fiscal year ended December 31, 2024, with consolidated revenues increasing by 13.4% to $23.7 billiona.
This growth was primarily driven by significant increases in the Electric Power and Renewable Energy segments, reflecting robust demand for infrastructure solutions in grid modernization, renewable energy development, and the technology sector, particularly data centers. The company also demonstrated strong operational execution, leading to a 19.4%b increase in operating income. Quanta's strategic acquisition of Cupertino Electric, Inc. (CEI) and seven other businesses during the year contributed to revenue growth and expanded its service capabilities, particularly in electrical infrastructure solutions for the technology and data center industries.
Despite a decrease in revenues from the Underground and Infrastructure segment, primarily due to lower large pipeline project volumes, the company's overall backlog and remaining performance obligations saw substantial increases, indicating continued demand and a positive outlook for future revenue. The company's liquidity position remains strong, with significant available commitments under its senior credit facility.
02—Key points
Key Highlights
- Consolidated revenues increased by 13.4% year-over-year to $23.7 billion, driven by strong performance in the Electric Power and Renewable Energy segments.
- Operating income grew by 19.4% to $1.35 billion, reflecting improved operational efficiency and favorable revenue mix.
- The company completed eight strategic acquisitions during the year, enhancing its service offerings and market reach, particularly in the technology and data center sectors.
- Backlog and remaining performance obligations increased significantly, reaching $34.5 billion and $16.8 billion, respectively, signaling robust demand for future services.
- Electric Power and Renewable Energy segments showed substantial revenue growth (15.2% and 27.2%, respectively), benefiting from increased utility and developer spending.
- Despite a revenue decrease in the Underground and Infrastructure segment (-7.1%), driven by lower large pipeline project volumes, the company's specialty services within this segment remain solid.
- Net income attributable to common stock increased by 21.5% to $904.8 million, demonstrating improved profitability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Quanta Services kept $0.04.
- Revenue$23.67B100.0%
- Cost of revenue−$20.16B85.2%
- Gross profit$3.51B14.8%
- Operating costs−$2.16B9.1%
- Operating income$1.35B5.7%
- Interest, other & tax−$419.2M1.8%
- Net income$927.3M3.9%
Where FY2024 revenue went
$23.67B- Cost of revenue: $20.16B, 85% of revenue
- Net income: $927.3M, 3.9% of revenue
- SG&A: $1.82B, 7.7% of revenue
- Other operating costs: $339.5M, 1.4% of revenue
- Interest, other & tax: $419.2M, 1.8% of revenue
Kept 3.9% as net incomeNet income $927.3M · 3.9%Other operating costs $339.5M · 1.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $23.67B$20.88B | +13.4% |
| Cost of Revenue | $20.16B$17.95B | +12.4% |
| Gross Profit | $3.51B$2.94B | +19.5% |
| SG&A Expenses | $1.82B$1.56B | +17.3% |
| Operating Income | $1.35B$1.13B | +19.4% |
| Net Income | $927.28M$750.69M | +23.5% |
| EPS (Basic) | $6.16$5.13 | +20.1% |
| EPS (Diluted) | $6.03$5.00 | +20.6% |
| Shares Outstanding (Basic) | 146.93M145.22M | +1.2% |
| Shares Outstanding (Diluted) | 150.06M148.82M | +0.8% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Quanta Services' revenue growth in 2024?
Quanta Services' revenue growth in 2024 was primarily driven by strong demand in its Electric Power and Renewable Energy segments. Increased capital spending by utilities on grid modernization and reliability programs, coupled with significant investments in renewable generation and battery storage infrastructure, fueled this growth. The technology sector's demand for data center infrastructure also contributed significantly.
How did the company's acquisition strategy impact its financial results?
Quanta Services completed eight strategic acquisitions in 2024, including Cupertino Electric, Inc. (CEI). These acquisitions contributed approximately $1.6 billion in revenues and expanded the company's capabilities, particularly in electrical infrastructure solutions for the technology and data center industries. The acquisitions are expected to support future growth and operational synergies.
What is the outlook for Quanta Services based on its backlog and remaining performance obligations?
The company's backlog increased by 14.7% to $34.5 billion, and remaining performance obligations grew by 20.6% to $16.8 billion as of December 31, 2024. This significant increase indicates strong future revenue potential and continued demand for Quanta's infrastructure solutions across its key operating segments.
What are the key risks facing Quanta Services moving forward?
Key risks include labor availability and cost, the potential for project delays or cancellations due to unforeseen circumstances or customer-specific issues, fluctuations in material and equipment costs, cybersecurity threats, and regulatory changes. The company also faces risks related to its substantial debt obligations and the competitive nature of its industries.
06—Continue