Summary
Quanta Services, Inc. (PWR) reported strong top-line growth for the second quarter and first half of 2021, with revenues increasing by 19.7% and 8.2%, respectively, compared to the prior year. This growth was primarily driven by the Electric Power Infrastructure Solutions segment, which benefited from increased demand for utility services and larger transmission projects, as well as contributions from acquisitions. The company also saw a significant increase in operating income and net income attributable to common stock, indicating improved profitability and operational efficiency. Despite the overall positive financial performance, the Underground Utility and Infrastructure Solutions segment experienced revenue declines due to reduced activity in larger pipeline projects and the ongoing challenging energy market, exacerbated by the COVID-19 pandemic. This segment was also impacted by a significant provision for credit loss related to receivables from a customer that filed for bankruptcy. However, the company maintained a strong liquidity position with substantial cash and available credit facilities, and its backlog of work remained robust, providing visibility into future revenue streams.
Financial Highlights
54 data points| Revenue | $3.00B |
| Cost of Revenue | $2.55B |
| Gross Profit | $447.71M |
| SG&A Expenses | $270.11M |
| Operating Income | $161.65M |
| Interest Expense | $13.11M |
| Net Income | $118.97M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 140.28M |
| Shares Outstanding (Diluted) | 144.61M |
Key Highlights
- 1Consolidated revenues increased by 19.7% year-over-year to $3.00 billion for the three months ended June 30, 2021.
- 2Net income attributable to common stock rose significantly by 58.3% to $117.0 million for the three months ended June 30, 2021, compared to the prior year.
- 3The Electric Power Infrastructure Solutions segment showed robust growth, with revenues up 19.8% and operating income up 28.8%, driven by strong demand in the utility market.
- 4The Underground Utility and Infrastructure Solutions segment saw revenue growth of 19.4%, but operating margins decreased due to a $23.6 million provision for credit loss and lower-margin project mix.
- 5Remaining performance obligations increased by 11.1% to $4.43 billion as of June 30, 2021, indicating strong future revenue visibility.
- 6Total backlog increased by 12.2% to $16.98 billion as of June 30, 2021, reflecting continued demand for services.
- 7The company maintained a strong liquidity position with $212.5 million in cash and cash equivalents and $1.89 billion of availability under its senior credit facility as of June 30, 2021.