10-QPeriod: Q1 FY2024

QUANTA SERVICES, INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 2, 2024For Securities:PWR

Summary

Quanta Services, Inc. (PWR) reported strong revenue growth in the first quarter of 2024, with a 13.6% increase year-over-year to $5.03 billion, driven primarily by its Renewable Energy segment, which saw a substantial 57.1% revenue surge. The company's overall operating income also rose by 23.4% to $155.4 million, reflecting improved performance across most segments despite a slight decrease in revenue for the Electric Power segment. Net income attributable to common stock increased by 24.5% to $118.4 million, or $0.79 per diluted share, up from $0.64 in the prior year. The company's balance sheet remains solid, with total assets of $15.54 billion and total equity of $6.37 billion. Cash flow from operations saw a significant improvement, increasing by over 520% to $238.0 million, indicating enhanced operational efficiency and working capital management. The company also continues to execute its growth strategy through acquisitions, with three businesses acquired in the quarter, and maintains a strong backlog of $29.9 billion, positioning it well for future growth.

Financial Highlights

53 data points
Beta

Revenue

$5.03B

12.4% Gross Margin

Net Income

$118.36M

2.4% Net Margin

EPS (Diluted)

$0.79

Total Assets

$15.54B

Cash & Equivalents

$531.06M

Free Cash Flow

$154.82M

Financial Statements
Beta
Revenue$5.03B
Cost of Revenue$4.41B
Gross Profit$623.49M
SG&A Expenses$402.34M
Operating Income$155.35M
Interest Expense$41.07M
Net Income$118.36M
EPS (Basic)$0.81
EPS (Diluted)$0.79
Shares Outstanding (Basic)145.94M
Shares Outstanding (Diluted)149.35M

Key Highlights

  • 1Consolidated revenues increased by 13.6% to $5.03 billion for the three months ended March 31, 2024, compared to $4.43 billion in the prior year.
  • 2Operating income grew by 23.4% to $155.4 million, with a notable surge of 109.9% in the Renewable Energy segment's operating income.
  • 3Net income attributable to common stock rose by 24.5% to $118.4 million, and diluted EPS increased to $0.79 from $0.64.
  • 4Cash flow from operating activities significantly improved, reaching $238.0 million, a 520% increase from $38.4 million in the prior year's comparable period.
  • 5The Renewable Energy segment was the primary growth driver, with revenues increasing by 57.1% to $1.58 billion.
  • 6The company acquired three businesses during the quarter, further executing its inorganic growth strategy.
  • 7Total backlog remained strong at $29.9 billion as of March 31, 2024.

Frequently Asked Questions

Revenue growth was primarily driven by a substantial increase in demand for services in the Renewable Energy segment, which saw revenues rise by 57.1%. The Underground and Infrastructure segment also contributed positively with a 3.3% revenue increase, partially offset by a slight decline in the Electric Power segment.

Profitability improved significantly. Operating income increased by 23.4% to $155.4 million, and net income attributable to common stock grew by 24.5% to $118.4 million. This was supported by improved operating margins in key segments and better management of costs.

The company's total backlog remained strong at $29.9 billion as of March 31, 2024, indicating robust future demand for its services. Management expects strong demand to continue, supported by ongoing investments in energy infrastructure, grid modernization, and the transition to renewable energy sources.

Quanta Services demonstrated a significant improvement in its cash flow generation. Net cash provided by operating activities surged by over 520% to $238.0 million in Q1 2024, compared to $38.4 million in Q1 2023. This improvement reflects better working capital management and increased operational earnings.