On August 1, 2024, Quanta Services Inc (PWR, Financial) released its 8-K filing for the second quarter of 2024. Quanta Services is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline, and energy industries in the United States, Canada, and Australia. Quanta reports its results under three reportable segments: electric power, renewables infrastructure, and underground utility and infrastructure.
Performance Overview
Quanta Services Inc (PWR, Financial) reported consolidated revenues of $5.59 billion for Q2 2024, surpassing the analyst estimate of $5.51 billion. However, the company’s GAAP diluted earnings per share (EPS) of $1.26 fell short of the estimated $1.34. Adjusted diluted EPS stood at $1.90, reflecting a significant improvement from $1.65 in the same quarter last year.
Financial Achievements and Challenges
Quanta Services Inc (PWR, Financial) achieved record quarterly revenues and adjusted EBITDA of $523.2 million. The company also reported a net income attributable to common stock of $188.2 million, up from $165.9 million in Q2 2023. Year-to-date cash flow from operations was $629.3 million, with free cash flow of $439.8 million.
Despite these achievements, the company faces challenges such as weather, regulatory, permitting, and supply chain issues, which could impact project timing and execution. Additionally, economic uncertainties like inflation and increased interest rates pose potential risks.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $5.59 billion | $5.05 billion |
| Net Income Attributable to Common Stock | $188.2 million | $165.9 million |
| GAAP Diluted EPS | $1.26 | $1.12 |
| Adjusted Diluted EPS | $1.90 | $1.65 |
Balance Sheet and Cash Flow
As of June 30, 2024, Quanta Services Inc (PWR, Financial) reported total assets of $15.93 billion, with cash and cash equivalents of $518.1 million. The company’s total liabilities stood at $9.35 billion, while total equity was $6.58 billion.
Year-to-date cash flow from operations was $629.3 million, and free cash flow was $439.8 million, reflecting strong operational efficiency and cash management.
Commentary and Outlook
“Quanta’s first half of the year is a good start, with our second quarter results reflecting another quarter of double-digit growth in revenue, adjusted EBITDA, and adjusted earnings per share, record total backlog of $31.3 billion and strong cash flow, which we believe reflects the power of our portfolio, sound execution and continued demand for our services,” said Duke Austin, President and Chief Executive Officer of Quanta Services.
Quanta Services Inc (PWR, Financial) recently completed the acquisition of Cupertino Electric, Inc. (CEI), which is expected to contribute positively to the company’s financial performance. The company has updated its full-year 2024 financial expectations, now projecting revenues between $23.5 billion and $24.1 billion and adjusted diluted EPS between $8.32 and $8.87.
For more detailed financial information and analysis, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Quanta Services Inc for further details.
