Summary
Quanta Services, Inc. (PWR) reported strong revenue growth in the third quarter and first nine months of fiscal year 2022, driven by increased demand across its key segments: Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions. Total revenues surged by 33.0% year-over-year for the quarter and 39.8% for the nine-month period, largely fueled by contributions from recent acquisitions, particularly Blattner in the Renewable Energy segment, and increased utility spending on grid modernization. Despite the top-line growth, net income attributable to common stock saw a decline of 10.6% for the quarter, primarily due to a significant unrealized loss on an investment in a publicly traded company (Starry) and increased amortization expenses from acquisitions. However, operating income showed resilience, increasing by 15.6% for the quarter, supported by robust performance in the Underground Utility and Infrastructure Solutions segment and steady contributions from Electric Power Infrastructure Solutions. The company maintained a strong backlog, ending the period with $20.87 billion, indicating continued demand for its services.
Financial Highlights
55 data points| Revenue | $4.46B |
| Cost of Revenue | $3.77B |
| Gross Profit | $688.83M |
| SG&A Expenses | $347.45M |
| Operating Income | $286.79M |
| Interest Expense | $33.57M |
| Net Income | $155.96M |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.06 |
| Shares Outstanding (Basic) | 143.35M |
| Shares Outstanding (Diluted) | 147.68M |
Key Highlights
- 1Revenues increased significantly, up 33.0% year-over-year for the quarter to $4.46 billion and 39.8% for the nine months to $12.66 billion.
- 2Operating income grew by 15.6% year-over-year to $286.8 million for the quarter, reflecting strong demand and operational execution.
- 3Net income attributable to common stock decreased by 10.6% to $156.0 million for the quarter, impacted by a $26.5 million unrealized loss on an investment.
- 4The Renewable Energy Infrastructure Solutions segment experienced substantial revenue growth of 195.1% for the quarter, largely due to the acquisition of Blattner.
- 5Backlog remained strong, increasing to $20.87 billion as of September 30, 2022, signaling robust future revenue potential.
- 6Cash provided by operating activities significantly improved, increasing by $325.5 million to $343.4 million for the quarter compared to the prior year period.
- 7Increased amortization expenses related to recent acquisitions, notably Blattner, impacted profitability, contributing to higher Corporate and Non-Allocated Costs.