Summary
Quanta Services, Inc. reported strong third-quarter and year-to-date results for 2018, with significant revenue growth driven by both its Electric Power Infrastructure Services and Oil and Gas Infrastructure Services segments. The company saw a notable increase in gross profit and operating income, reflecting improved project execution and higher customer spending, particularly in large-scale pipeline and transmission projects. The adoption of new revenue recognition guidance did not materially impact the reported results. Financially, Quanta Services demonstrated a healthy balance sheet with increasing assets and equity. While debt levels increased due to financing activities, the company remained in compliance with its debt covenants. Cash flow from operations remained positive, though it decreased year-over-year for the quarter due to increased working capital needs associated with higher project activity. The company also continued its strategic acquisition activities, expanding its service offerings in key infrastructure areas. Overall, the report indicates a positive operational and financial trajectory for Quanta Services.
Financial Highlights
55 data points| Revenue | $2.99B |
| Cost of Revenue | $2.56B |
| Gross Profit | $425.83M |
| SG&A Expenses | $224.04M |
| Operating Income | $192.56M |
| Interest Expense | $9.22M |
| Net Income | $124.55M |
| EPS (Basic) | $0.82 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 152.56M |
| Shares Outstanding (Diluted) | 153.69M |
Key Highlights
- 1Revenue increased by 14.4% to $2.99 billion in Q3 2018 compared to Q3 2017, driven by both Electric Power and Oil and Gas segments.
- 2Gross profit increased by 21.4% to $425.8 million in Q3 2018, with gross margin improving to 14.3% from 13.4% year-over-year.
- 3Operating income rose significantly by 37.1% to $192.6 million in Q3 2018.
- 4Net income attributable to common stock increased by 39.4% to $124.6 million in Q3 2018.
- 5The company repurchased $23.8 million of its common stock during Q3 2018 under its authorized repurchase programs.
- 6Total backlog at September 30, 2018, stood at $12.21 billion, up from $11.18 billion at December 31, 2017.
- 7Capital expenditures for the nine months ended September 30, 2018, were $222.7 million, supporting ongoing operational needs and growth.