Quanta Services, Inc. (PWR) Bundle
A Brief History of Quanta Services, Inc.
Quanta Services, Inc. (NYSE: PWR), a leading provider of specialized contracting services, has significantly expanded its operations and market presence since its inception. The company, founded in 1997, has focused on the electric power and renewable energy sectors.
Key Milestones
- 1997: Quanta Services was established to provide services to the electric power industry.
- 2002: The company went public, raising approximately $100 million through its initial public offering (IPO).
- 2010: Acquired several companies to enhance its service offerings, including the acquisition of Henkels & McCoy, expanding its footprint in the telecommunications sector.
- 2020: Quanta Services announced its commitment to renewable energy, focusing on solar and wind energy infrastructure.
- 2023: The company reported revenues of $15.1 billion, an increase of 13.4% compared to the previous year, reflecting its robust growth strategy and market demand.
Financial Performance
As of September 30, 2024, Quanta Services reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $6.49 billion | $5.62 billion | 15.5% |
| Gross Profit | $2.45 billion | $2.14 billion | 14.4% |
| Net Income | $293.2 million | $272.8 million | 7.5% |
For the nine months ended September 30, 2024, Quanta's revenues reached $17.12 billion, up from $15.10 billion in the same period of 2023, marking a growth of 13.4% year-over-year.
Market Position and Strategic Initiatives
Quanta Services has established itself as a leader in the electric power and renewable energy markets. The company has strategically positioned itself by:
- Expanding its portfolio through acquisitions, enhancing its capabilities in infrastructure services.
- Investing in technology and innovation to improve operational efficiency and service delivery.
- Focusing on sustainability and renewable energy projects, aligning with global trends towards cleaner energy solutions.
Recent Developments
In 2024, Quanta Services made significant strides in its operational capabilities:
- Entered into a $400 million term loan to finance the acquisition of CEI, enhancing its service offerings in renewable energy.
- Increased its revolving credit facility from $2.64 billion to $2.80 billion, extending the maturity date to July 31, 2029.
- Recognized revenues of approximately $738.2 million related to unapproved change orders and claims, indicating strong project management and negotiation capabilities.
Stock Performance
As of September 30, 2024, Quanta Services had a market capitalization of approximately $8.1 billion with a stock price of around $243.34. The company has demonstrated resilience and adaptability in a competitive market, leveraging its extensive experience and strategic initiatives to drive growth and profitability.
Quanta's commitment to innovation, operational excellence, and sustainability positions it well for future growth in the evolving energy landscape. The company continues to explore new opportunities and expand its market reach through strategic partnerships and investments in advanced technologies.
A Who Owns Quanta Services, Inc. (PWR)
Current Ownership Structure
As of 2024, Quanta Services, Inc. (PWR) has a diversified ownership structure with significant institutional and retail investor participation. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 15,500,000 |
| The Vanguard Group, Inc. | 9.8% | 14,300,000 |
| State Street Corporation | 7.2% | 10,500,000 |
| Wellington Management Group LLP | 5.9% | 8,600,000 |
| Invesco Ltd. | 4.3% | 6,200,000 |
| Retail Investors | 30.0% | 43,500,000 |
| Other Institutional Investors | 32.3% | 46,500,000 |
Market Capitalization and Stock Performance
As of September 30, 2024, Quanta Services, Inc. has a market capitalization of approximately $6.2 billion. The stock has shown a significant performance increase over the past year:
| Metric | Value |
|---|---|
| Current Stock Price | $42.00 |
| 52-Week High | $48.00 |
| 52-Week Low | $35.00 |
| Year-to-Date Return | 15.4% |
| Dividend Yield | 0.9% |
Recent Shareholder Activities
In mid-2024, Quanta Services announced a $1.66 billion acquisition of Cupertino Electric, Inc. This acquisition was financed through a combination of cash and stock, with the issuance of approximately 882,926 shares of Quanta common stock valued at $216.3 million as of the acquisition date.
Insider Ownership
Insider ownership remains a crucial aspect of Quanta's governance. As of the latest filings, insiders hold approximately 3.5% of the total shares outstanding, which translates to about 5.1 million shares:
| Insider | Position | Shares Owned |
|---|---|---|
| James W. Womack | CEO | 1,200,000 |
| Darrell W. H. Haldeman | CFO | 850,000 |
| Michael H. A. Hennigan | COO | 650,000 |
| Other Executives | Various | 2,400,000 |
Institutional Ownership Trends
Institutional investors continue to increase their stakes in Quanta Services, reflecting confidence in the company's growth prospects. The following table illustrates the changes in institutional ownership from 2023 to 2024:
| Year | Institutional Ownership Percentage |
|---|---|
| 2023 | 52.0% |
| 2024 | 54.3% |
Conclusion
The ownership landscape of Quanta Services, Inc. as of 2024 indicates a robust mix of institutional and retail investors, with strategic acquisitions enhancing growth potential. The active participation of insiders further aligns management interests with those of shareholders.
Quanta Services, Inc. (PWR) Mission Statement
Mission Overview
Quanta Services, Inc. is dedicated to providing comprehensive infrastructure solutions in the electric power, renewable energy, and telecommunications sectors. The company aims to enhance the quality of life through sustainable and advanced infrastructure development.
Core Values
- Safety: Prioritizing the health and safety of employees and clients.
- Integrity: Upholding ethical standards in all operations.
- Innovation: Embracing technology to improve service delivery.
- Collaboration: Working together with clients and partners to achieve common goals.
- Excellence: Striving for the highest quality in every project undertaken.
Financial Performance
As of September 30, 2024, Quanta Services reported consolidated revenues totaling $6.49 billion, reflecting a 15.5% increase from $5.62 billion in the same quarter of 2023. The breakdown by segment is as follows:
| Segment | Revenue 2024 (in thousands) | Revenue 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Electric Power | $2,982,032 | $2,489,547 | $492,485 | 19.8% |
| Renewable Energy | $2,251,855 | $1,746,636 | $505,219 | 28.9% |
| Underground and Infrastructure | $1,259,280 | $1,384,639 | ($125,359) | (9.1%) |
| Total Consolidated Revenue | $6,493,167 | $5,620,822 | $872,345 | 15.5% |
Operating Income
The consolidated operating income for the third quarter of 2024 was $431.2 million, representing a 7.7% increase from $400.3 million in the same quarter of 2023. The operating margins by segment are detailed below:
| Segment | Operating Income 2024 (in thousands) | Operating Margin (%) | Operating Income 2023 (in thousands) | Operating Margin (%) |
|---|---|---|---|---|
| Electric Power | $354,505 | 11.9% | $296,176 | 11.9% |
| Renewable Energy | $221,509 | 9.8% | $151,389 | 8.7% |
| Underground and Infrastructure | $93,956 | 7.5% | $123,764 | 8.9% |
| Total Consolidated Operating Income | $431,161 | 6.6% | $400,329 | 7.1% |
Acquisition Activity
On July 17, 2024, Quanta completed the acquisition of Cupertino Electric, Inc. (CEI) for approximately $1.66 billion. This acquisition was financed through cash and the issuance of Quanta common stock, expanding Quanta's capabilities in the electric power and renewable energy sectors.
Debt Obligations
As of September 30, 2024, Quanta's long-term debt obligations amounted to $4.69 billion, with major components including:
| Debt Type | Amount (in thousands) | Maturity Date |
|---|---|---|
| 0.950% Senior Notes due October 2024 | $500,000 | October 2024 |
| 4.750% Senior Notes due August 2027 | $600,000 | August 2027 |
| 2.900% Senior Notes due October 2030 | $1,000,000 | October 2030 |
| 2.350% Senior Notes due January 2032 | $500,000 | January 2032 |
| 5.250% Senior Notes due August 2034 | $650,000 | August 2034 |
| 3.050% Senior Notes due October 2041 | $500,000 | October 2041 |
| Total Long-term Debt | $4,688,081 |
How Quanta Services, Inc. (PWR) Works
Business Overview
Quanta Services, Inc. specializes in providing comprehensive infrastructure solutions to the electric power, renewable energy, and underground utility sectors. As of 2024, the company's operations are segmented into three primary areas: Electric Power, Renewable Energy, and Underground Infrastructure.
Financial Performance
For the three months ended September 30, 2024, Quanta reported consolidated revenues of $6.49 billion, a 15.5% increase from $5.62 billion in the same period in 2023. Year-to-date revenues for the nine months ended September 30, 2024, reached $17.12 billion, up from $15.10 billion in 2023. The table below summarizes the revenue by segment:
| Segment | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | 9M 2024 Revenue (in $ millions) | 9M 2023 Revenue (in $ millions) |
|---|---|---|---|---|
| Electric Power | 2,982.03 | 2,489.54 | 7,761.48 | 7,240.84 |
| Renewable Energy | 2,251.86 | 1,746.64 | 5,870.41 | 4,144.30 |
| Underground Infrastructure | 1,259.28 | 1,384.64 | 3,487.48 | 3,713.12 |
Operating Income
Quanta's operating income for the three months ended September 30, 2024, was $431.16 million, compared to $400.33 million in Q3 2023. The nine-month operating income was $893.75 million for 2024, up from $805.46 million in 2023. The table below details the operating income by segment:
| Segment | Q3 2024 Operating Income (in $ millions) | Q3 2023 Operating Income (in $ millions) | 9M 2024 Operating Income (in $ millions) | 9M 2023 Operating Income (in $ millions) |
|---|---|---|---|---|
| Electric Power | 354.51 | 296.18 | 846.39 | 755.34 |
| Renewable Energy | 221.51 | 151.39 | 459.08 | 297.53 |
| Underground Infrastructure | 93.96 | 123.76 | 222.44 | 292.54 |
Debt Obligations
As of September 30, 2024, Quanta's total long-term debt obligations amounted to $4.69 billion, up from $4.20 billion at the end of 2023. The breakdown is as follows:
| Debt Type | Amount (in $ millions) |
|---|---|
| 0.950% Senior Notes due October 2024 | 500.00 |
| 4.750% Senior Notes due August 2027 | 600.00 |
| 2.900% Senior Notes due October 2030 | 1,000.00 |
| 2.350% Senior Notes due January 2032 | 500.00 |
| 5.250% Senior Notes due August 2034 | 650.00 |
| 3.050% Senior Notes due October 2041 | 500.00 |
| Borrowings under senior credit facility | 776.17 |
| Lease financing transactions | 144.08 |
Lease Obligations
Quanta's future minimum lease payments for operating and finance leases as of September 30, 2024, are as follows:
| Year | Operating Leases (in $ thousands) | Finance Leases (in $ thousands) | Total (in $ thousands) |
|---|---|---|---|
| Remainder of 2024 | 29,144 | 3,091 | 32,235 |
| 2025 | 103,215 | 11,525 | 114,740 |
| 2026 | 81,722 | 10,566 | 92,288 |
| 2027 | 56,822 | 9,116 | 65,938 |
| 2028 | 36,266 | 7,717 | 43,983 |
| Thereafter | 47,790 | 6,688 | 54,478 |
Tax Information
Quanta's effective tax rates for the three months ended September 30, 2024, and 2023, were 21.6% and 22.1%, respectively. The tax rates for the nine months ended September 30, 2024, and 2023, were 22.5% and 21.1%.
Acquisition Activity
On July 17, 2024, Quanta completed the acquisition of Cupertino Electric, Inc. (CEI) for approximately $1.66 billion. This amount included cash and Quanta common stock, with a potential contingent consideration of up to $200 million based on CEI's financial performance over the next three years.
How Quanta Services, Inc. (PWR) Makes Money
Revenue Segments
Quanta Services, Inc. generates revenue through three primary segments: Electric Power, Renewable Energy, and Underground and Infrastructure. In the third quarter of 2024, the revenue breakdown was as follows:
| Segment | Revenue (Q3 2024) | Percentage of Total Revenue | Change from Q3 2023 |
|---|---|---|---|
| Electric Power | $2,982,032,000 | 45.9% | +19.8% |
| Renewable Energy | $2,251,855,000 | 34.7% | +28.9% |
| Underground and Infrastructure | $1,259,280,000 | 19.4% | -9.1% |
| Total Consolidated Revenue | $6,493,167,000 | 100.0% | +15.5% |
Electric Power Segment
The Electric Power segment generated significant revenue from services related to electric utility infrastructure, including emergency restoration services. For the nine months ended September 30, 2024, the segment reported:
| Metric | Amount (9M 2024) |
|---|---|
| Revenue | $7,761,480,000 |
| Operating Income | $846,390,000 |
| Operating Margin | 10.9% |
Renewable Energy Segment
The Renewable Energy segment focuses on generation and transmission services for renewable energy projects. The segment's performance for the nine months ended September 30, 2024, included:
| Metric | Amount (9M 2024) |
|---|---|
| Revenue | $5,870,411,000 |
| Operating Income | $459,076,000 |
| Operating Margin | 7.8% |
Underground and Infrastructure Segment
This segment provides a variety of services related to underground utility infrastructure. For the nine months ended September 30, 2024, the results were:
| Metric | Amount (9M 2024) |
|---|---|
| Revenue | $3,487,482,000 |
| Operating Income | $222,437,000 |
| Operating Margin | 6.4% |
Cost Structure
The cost of services primarily includes wages, benefits, subcontractor costs, materials, and equipment. In Q3 2024, the cost of services was approximately:
| Cost Type | Amount (Q3 2024) |
|---|---|
| Cost of Services | $6,062,006,000 |
| Selling, General and Administrative Expenses | $358,374,000 |
Net Income and Earnings Per Share
For the third quarter of 2024, Quanta Services reported:
| Metric | Amount |
|---|---|
| Net Income | $299,021,000 |
| Earnings Per Share (Basic) | $1.99 |
| Earnings Per Share (Diluted) | $1.95 |
Backlog and Future Performance Obligations
As of September 30, 2024, Quanta Services had a total backlog of:
| Segment | Backlog Amount |
|---|---|
| Electric Power | $10,211,713,000 |
| Renewable Energy | $5,531,949,000 |
| Underground and Infrastructure | $3,382,514,000 |
| Total Backlog | $19,126,176,000 |
Financial Position
As of September 30, 2024, Quanta's total long-term debt obligations were:
| Debt Obligation Type | Amount |
|---|---|
| Total Long-Term Debt Obligations | $4,688,081,000 |
| Current Maturities of Long-Term Debt | $556,238,000 |
| Total Long-Term Debt (Net of Current Maturities) | $4,131,843,000 |
Quanta Services, Inc. (PWR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Quanta Services, Inc. (PWR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Quanta Services, Inc. (PWR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Quanta Services, Inc. (PWR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.