Summary
Quanta Services, Inc. (PWR) reported strong revenue growth in the second quarter of 2022, with a 41.1% increase year-over-year to $4.23 billion. This growth was driven by all three reportable segments: Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions. The Renewable Energy segment saw a significant surge of 178.4%, largely due to the acquisition of Blattner. Despite the robust revenue performance, net income attributable to common stock decreased by 24.8% to $88.0 million. This decline was primarily impacted by a substantial unrealized loss of $41.7 million on an investment in a publicly traded company (Starry Group Holdings, Inc.) and an $86.7 million increase in amortization expense related to recent acquisitions. The company's backlog and remaining performance obligations remain strong, indicating continued demand for its services. Remaining performance obligations increased to $6.92 billion, and total backlog stood at $19.85 billion as of June 30, 2022. Management expressed a positive long-term outlook, driven by ongoing investments in grid modernization, renewable energy infrastructure, and underground utility upgrades. However, the company faces challenges including supply chain disruptions, elevated consumables costs, and labor resource availability, which impacted operating margins in certain segments.
Financial Highlights
54 data points| Revenue | $4.23B |
| Cost of Revenue | $3.61B |
| Gross Profit | $624.59M |
| SG&A Expenses | $323.25M |
| Operating Income | $208.36M |
| Interest Expense | $28.64M |
| Net Income | $88.02M |
| EPS (Basic) | $0.61 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 143.85M |
| Shares Outstanding (Diluted) | 148.21M |
Key Highlights
- 1Revenue increased by 41.1% to $4.23 billion in Q2 2022 compared to Q2 2021, driven by growth across all segments.
- 2The Renewable Energy Infrastructure Solutions segment experienced a substantial 178.4% revenue increase, largely attributed to the acquisition of Blattner.
- 3Net income attributable to common stock decreased by 24.8% to $88.0 million, primarily due to an unrealized investment loss and higher amortization expenses from acquisitions.
- 4Diluted earnings per share declined to $0.59 from $0.81 in the prior year's quarter.
- 5Remaining performance obligations increased by 17.4% to $6.92 billion, and total backlog stood at $19.85 billion as of June 30, 2022.
- 6Operating income increased by 28.9% to $208.4 million, but operating margins saw pressure in certain segments due to supply chain issues and increased costs.
- 7Net cash provided by operating activities decreased by 37% to $118.7 million, impacted by increased working capital requirements.