Company Participation in Conferences - Quanta Services, Inc. will participate in two institutional investor conferences in May 2024: the Bernstein Strategic Decisions Conference and the KeyBanc Capital Markets Industrials & Basic Materials Conference [1][3] - At the Bernstein conference on May 29, 2024, CEO Duke Austin and CFO Jayshree Desai will engage in a fireside chat hosted by Bernstein analyst Chad Dillard, which will be broadcast live [2] - The KeyBanc conference will take place on May 30, 2024, where the same executives will meet with institutional investors [3] Company Overview - Quanta Services is a leader in providing specialized infrastructure solutions across various sectors including utility, renewable energy, communications, pipeline, and energy industries [4] - The company offers a comprehensive range of services such as designing, installing, repairing, and maintaining energy and communications infrastructure [4] - Quanta operates in the United States, Canada, Australia, and select international markets, possessing the manpower, resources, and expertise to handle projects of varying scopes [4]

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Core Insights - The focus is on selecting high-growth dividend stocks that have rapidly increased their dividends in the recent past and are expected to continue growing their earnings at a fast pace [1][16] - There are two main categories of dividend stocks: High Growth Low Yield (HGLY) and Low Growth High Yield (LGHY), catering to different investor needs [2][3] - A structured portfolio approach is recommended, allowing for a maximum of 20 stocks, with periodic monitoring and adjustments based on performance [4] Stock Selection Criteria - Stocks must have a market cap greater than $10 billion, a dividend yield above 1%, and a daily average volume exceeding 100,000 [5] - Additional criteria include a history of positive dividend growth over the past five years and a preference for a minimum of five years of consistent dividend growth [5][6] - A modified Quality Score (HGQS) is calculated based on factors such as EPS growth, dividend growth history, and debt ratios to identify high-growth candidates [6][10] Portfolio Construction - The portfolio should be diversified across various sectors, with a maximum of 20 positions, and new stocks should be added based on monthly reports [4][12] - The final selection of stocks aims to represent a diverse range of sectors while maintaining a focus on high growth potential [12][17] - The methodology allows for some stocks to repeat in the selection process, indicating their sustained quality and growth potential [12] Performance Analysis - A model portfolio of selected high-growth stocks is compared against benchmarks like the Vanguard Dividend Appreciation Index Fund ETF and the S&P 500 to assess performance [13][14] - Monthly performance comparisons help in evaluating the effectiveness of the investment strategy over time [14] Concluding Remarks - The article emphasizes the importance of selecting high-growth dividend stocks, which typically have lower current yields but significant growth potential [16] - The current market conditions suggest that many selected stocks are trading near their 52-week highs, indicating a potential risk for conservative investors [16]

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Quanta Services, Inc. (NYSE:PWR) Q1 2024 Earnings Conference Call May 2, 2024 9:00 AM ET Company Participants Kip Rupp - VP, IR Duke Austin - President and CEO Jayshree Desai – CFO Conference Call Participants Jamie Cook - Credit Suisse Andy Kaplowitz - Citi Ati Modak - Goldman Sachs Brian Brophy - Stifel Marc Bianchi - TD Cowen Justin Hauke - Baird Gus Richard - Northland Capital Alex Rygiel - B. Riley Securities Sangita Jain - KeyBanc Capital Markets Michael Dudas - Vertical Research Partners Chad Dillard ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-13831 Quanta Services, Inc. (Exact name of registrant as specified in its charter) Delaware 74-2851603 (State or other jurisdiction of incorporation or organization) 2727 North Loop West (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Quanta Services achieved record Q1 2024 revenues of $5.03 billion, with strong growth in net income, adjusted EPS, and backlog, raising full-year guidance [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) Quanta Services achieved record Q1 2024 revenues, strong net income and adjusted EPS growth, record cash flow, and a $29.9 billion backlog Financial Performance Overview | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Consolidated Revenues ($ billions) | $5.03 | $4.43 | | Net Income Attributable to Common Stock ($ millions) | $118.4 | $95.0 | | GAAP Diluted EPS | $0.79 | $0.64 | | Adjusted Diluted EPS | $1.41 | $1.24 | | Adjusted EBITDA ($ millions) | $387.3 | $332.4 | | Cash Flow From Operations ($ millions) | $238.0 | $38.4 | Backlog Overview | Backlog Metric | Q1 2024 | | :--- | :--- | | Remaining Performance Obligations ($ billions) | $14.9 | | Total Backlog ($ billions) | $29.9 | - Management highlighted a strong start to the year, with double-digit growth in revenue, adjusted EBITDA, and adjusted EPS[2](index=2&type=chunk) - The Electric Power Infrastructure Solutions segment showed better-than-expected profitability due to solid and safe execution[2](index=2&type=chunk) [Business Outlook and Strategy](index=2&type=section&id=Business%20Outlook%20and%20Strategy) This section outlines management's perspective on market trends, strategic acquisitions, and the company's updated full-year 2024 financial guidance [Management Commentary and Market Trends](index=2&type=section&id=Management%20Commentary%20and%20Market%20Trends) Management identifies significant growth opportunities driven by increased power demand from AI and data centers, emphasizing the value of grid enhancement solutions - Utilities are forecasting meaningful increases in power demand, a trend not seen in many years[4](index=4&type=chunk) - Key drivers for this demand include the adoption of new technologies such as AI and data centers, as well as federal and state policies promoting energy transition and domestic manufacturing[4](index=4&type=chunk) [Strategic Acquisitions](index=2&type=section&id=Strategic%20Acquisitions) Quanta acquired a leading engineering and manufacturing company in April 2024 to improve access to critical equipment and lower operational costs - Quanta acquired a leading transmission and distribution equipment manufacturing company in April 2024[5](index=5&type=chunk) - The acquisition is anticipated to enhance Quanta's access to essential equipment for its services and help reduce operational expenses[5](index=5&type=chunk) [Full-Year 2024 Guidance](index=2&type=section&id=Full-Year%202024%20Guidance) Quanta raised its full-year 2024 financial outlook, projecting revenues between $22.5 billion and $23.0 billion and adjusted diluted EPS of $8.15 to $8.65 FY 2024 Financial Guidance | FY 2024 Guidance | Low Range | High Range | | :--- | :--- | :--- | | Revenues ($ billions) | $22.5 | $23.0 | | Net Income Attributable to Common Stock ($ millions) | $867 | $943 | | Diluted EPS | $5.79 | $6.30 | | Adjusted Diluted EPS | $8.15 | $8.65 | | EBITDA ($ billions) | $1.97 | $2.08 | | Adjusted EBITDA ($ billions) | $2.13 | $2.25 | | Net Cash from Operating Activities ($ billions) | $1.75 | $2.15 | | Free Cash Flow ($ billions) | $1.30 | $1.70 | - The outlook considers potential challenges such as weather, permitting, supply chain issues, inflation, and increased interest rates[6](index=6&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents Quanta Services' condensed consolidated statements of operations, balance sheets, supplemental segment data, and backlog information [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 revenues increased 13.6% to $5.03 billion, with gross profit and net income attributable to common stock showing strong growth Income Statement Summary | Income Statement ($ thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $5,031,819 | $4,428,826 | | Gross Profit | $623,494 | $573,195 | | Operating Income | $155,354 | $125,860 | | Net Income Attributable to Common Stock | $118,360 | $95,046 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets and liabilities decreased, while total equity slightly increased to $6.37 billion Balance Sheet Summary | Balance Sheet ($ thousands) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $6,583,469 | $7,676,897 | | Total Assets | $15,542,352 | $16,237,225 | | Total Current Liabilities | $4,831,182 | $5,213,116 | | Total Liabilities | $9,175,083 | $9,953,870 | | Total Equity | $6,367,269 | $6,283,355 | [Supplemental Segment Data](index=8&type=section&id=Supplemental%20Segment%20Data) Renewable Energy Infrastructure Solutions drove Q1 2024 revenue growth, while Electric Power remained the largest operating income contributor Segment Revenues | Segment Revenues ($ thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Electric Power Infrastructure Solutions | $2,326,960 | $2,336,037 | | Renewable Energy Infrastructure Solutions | $1,584,164 | $1,008,300 | | Underground Utility and Infrastructure Solutions | $1,120,695 | $1,084,489 | Segment Operating Income | Segment Operating Income ($ thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Electric Power Infrastructure Solutions | $228,025 | $215,149 | | Renewable Energy Infrastructure Solutions | $74,846 | $35,656 | | Underground Utility and Infrastructure Solutions | $46,888 | $61,573 | [Remaining Performance Obligations and Backlog](index=9&type=section&id=Remaining%20Performance%20Obligations%20and%20Backlog) Total backlog reached $29.9 billion as of March 31, 2024, with RPOs growing to $14.9 billion, driven by key segments Backlog Details | Backlog ($ thousands) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Backlog | $29,897,911 | $25,274,197 | | 12-Month Backlog | $16,636,100 | $14,628,173 | | Total Remaining Performance Obligations | $14,882,669 | $10,256,586 | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures for both Q1 2024 and full-year 2024 guidance [Q1 2024 Non-GAAP Reconciliations](index=10&type=section&id=Q1%202024%20Non-GAAP%20Reconciliations) Q1 2024 non-GAAP reconciliations show Adjusted Diluted EPS of $1.41, Adjusted EBITDA of $387.3 million, and Free Cash Flow of $181.2 million [Adjusted Net Income and Adjusted Diluted EPS (Q1 2024)](index=10&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS%20(Q1%202024)) GAAP Net Income of $118.4 million was adjusted to $210.8 million, resulting in an Adjusted Diluted EPS of $1.41 for Q1 2024 Adjusted Net Income Reconciliation | Reconciliation ($ thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income attributable to common stock (GAAP) | $118,360 | $95,046 | | Adjustments (Acquisition costs, etc.) | $4,426 | $17,449 | | Non-cash adjustments (Stock comp, Amortization) | $84,562 | $71,430 | | **Adjusted net income attributable to common stock** | **$210,848** | **$183,725** | Adjusted Diluted EPS Reconciliation | EPS Reconciliation | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $0.79 | $0.64 | | Adjustments | $0.62 | $0.60 | | **Adjusted Diluted EPS** | **$1.41** | **$1.24** | [EBITDA and Adjusted EBITDA (Q1 2024)](index=12&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20(Q1%202024)) Q1 2024 GAAP Net Income of $118.4 million reconciled to EBITDA of $341.9 million and Adjusted EBITDA of $387.3 million EBITDA Reconciliation | EBITDA Reconciliation ($ thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income attributable to common stock (GAAP) | $118,360 | $95,046 | | Interest, Taxes, D&A | $223,551 | $192,411 | | **EBITDA** | **$341,911** | **$287,457** | | Adjustments (Stock comp, acquisition costs, etc.) | $45,343 | $44,900 | | **Adjusted EBITDA** | **$387,254** | **$332,357** | [Free Cash Flow (Q1 2024)](index=13&type=section&id=Free%20Cash%20Flow%20(Q1%202024)) Q1 2024 net cash from operating activities was $238.0 million, leading to a positive Free Cash Flow of $181.2 million Free Cash Flow Reconciliation | Free Cash Flow ($ thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $237,955 | $38,409 | | Net capital expenditures | ($56,721) | ($69,568) | | **Free (Negative Free) Cash Flow** | **$181,234** | **($31,159)** | [Full-Year 2024 Guidance Non-GAAP Reconciliations](index=14&type=section&id=Full-Year%202024%20Guidance%20Non-GAAP%20Reconciliations) FY 2024 guidance projects Adjusted Diluted EPS of $8.15-$8.65, Adjusted EBITDA of $2.13-$2.25 billion, and Free Cash Flow of $1.30-$1.70 billion [Estimated Adjusted Net Income and Adjusted Diluted EPS (FY 2024)](index=14&type=section&id=Estimated%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS%20(FY%202024)) FY 2024 GAAP Net Income of $867.4-$942.8 million reconciles to Adjusted Net Income of $1.22-$1.30 billion, yielding Adjusted Diluted EPS of $8.15-$8.65 FY 2024 Adjusted Diluted EPS Guidance | FY 2024 Guidance Reconciliation | Low Range | High Range | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $5.79 | $6.30 | | Adjustments (Amortization, Stock Comp, etc.) | $2.36 | $2.35 | | **Adjusted Diluted EPS** | **$8.15** | **$8.65** | [Estimated EBITDA and Adjusted EBITDA (FY 2024)](index=16&type=section&id=Estimated%20EBITDA%20and%20Adjusted%20EBITDA%20(FY%202024)) FY 2024 GAAP Net Income guidance reconciles to projected EBITDA of $1.97-$2.08 billion and Adjusted EBITDA of $2.13-$2.25 billion FY 2024 EBITDA Guidance | FY 2024 EBITDA Guidance ($ thousands) | Low Range | High Range | | :--- | :--- | :--- | | Net income attributable to common stock (GAAP) | $867,400 | $942,800 | | **EBITDA** | **$1,966,800** | **$2,080,800** | | Adjustments | $165,200 | $165,200 | | **Adjusted EBITDA** | **$2,132,000** | **$2,246,000** | [Estimated Free Cash Flow (FY 2024)](index=17&type=section&id=Estimated%20Free%20Cash%20Flow%20(FY%202024)) FY 2024 net cash from operating activities is forecast at $1.75-$2.15 billion, resulting in projected Free Cash Flow of $1.30-$1.70 billion FY 2024 Free Cash Flow Guidance | FY 2024 Free Cash Flow Guidance ($ thousands) | Low Range | High Range | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,750,000 | $2,150,000 | | Less: Net capital expenditures | ($450,000) | ($450,000) | | **Free Cash Flow** | **$1,300,000** | **$1,700,000** | [Other Information](index=4&type=section&id=Other%20Information) This section provides an overview of Quanta Services and important cautionary statements regarding forward-looking information [About Quanta Services](index=4&type=section&id=About%20Quanta%20Services) Quanta Services is a leading provider of specialized infrastructure solutions for utility, renewable energy, communications, and energy industries across North America and Australia - Quanta provides comprehensive infrastructure solutions including design, installation, repair, and maintenance[14](index=14&type=chunk) - The company operates primarily in the United States, Canada, and Australia, serving the utility, renewable energy, communications, and energy sectors[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section cautions investors about numerous risks and uncertainties that could cause actual results to differ materially from forward-looking projections - The press release contains forward-looking statements regarding projected financial results, business outlook, and strategic plans[15](index=15&type=chunk) - Numerous risks could impact future performance, such as economic conditions, project timing, supply chain disruptions, regulatory issues, and competition[15](index=15&type=chunk)[16](index=16&type=chunk)

Quanta Services, Inc. (NYSE:PWR) Q4 2023 Earnings Conference Call February 22, 2024 9:00 AM ET Company Participants Kip Rupp - VP, IR Duke Austin - President and CEO Jayshree Desai - CFO Conference Call Participants Chad Dillard - Bernstein Ati Modak - Goldman Sachs Durgesh Chopra - Evercore Steven Fisher - UBS Michael Dudas - Vertical Research Partners Gus Richard - Northland Capital Brian Brophy - Stifel Martin Malloy - Johnson Rice Adam Thalhimer - Thompson Davis & Company Sangita Jain - KeyBanc Capital ...

Fleet and Workforce - As of December 31, 2023, the total fleet size was approximately 71,000 units, which includes owned and leased trucks, trailers, and specialty construction equipment[47] - The company had approximately 52,500 employees as of December 31, 2023, with 32% covered by collective bargaining agreements[56] - Approximately 47,200 employees are based in the U.S., while around 5,300 are located internationally, primarily in Canada[56] Financial Performance and Market Conditions - Revenues are typically lowest in the first quarter due to adverse weather conditions, with the third quarter generally being the highest due to more projects underway[50] - Variable rate indebtedness exposes the company to interest rate risk, with significant increases in interest rates during 2022 and 2023 impacting debt service obligations[191] - A downgrade in the company's debt rating could restrict access to capital markets and increase borrowing costs, adversely affecting financial performance[194] - The company has 145,508,549 shares outstanding as of December 31, 2023, with potential future equity issuances that could dilute existing stockholders' ownership[195] Strategic Initiatives and Services - The company is expanding its Engineering, Procurement, and Construction (EPC) services, with increasing customer requests for material procurement[49] - The company is strategically focused on expanding natural gas utility services in response to the long-term decline in demand for fossil fuels[72] - Increased demand for renewable energy infrastructure services is anticipated due to the transition to a reduced-carbon economy, with utility customers shifting towards sustainable power generation[70] Compliance and Risk Management - The company is focused on compliance with extensive regulations, which could impact operations and financial performance[51] - The company has implemented a comprehensive ethics and compliance training program to ensure adherence to laws and internal policies[66] - Climate change-related risks and opportunities are integrated into the company's long-term strategic planning and risk management processes[67] - New regulations related to climate change may increase operational costs, particularly concerning greenhouse gas emissions and fuel prices[73] Safety and Training - Significant investments are being made in safety programs and training facilities, including the Quanta Advanced Training Center in Texas[57] - The company is addressing labor shortages by developing strategic relationships with universities and expanding training facilities[60] External Factors - Regulatory changes, such as the IRA and IIJA, are expected to support long-term demand for renewable energy projects[54] - Severe weather events, such as hurricanes and wildfires, have impacted operational productivity and project timelines, leading to fluctuations in emergency restoration services[68] - The company may face challenges in securing surety bonds and financial assurances, which could limit its ability to compete for projects[192]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Quanta Services achieved record financial results in 2023, demonstrating strong growth and robust cash flow [Fourth Quarter & Full-Year 2023 Results](index=1&type=section&id=Fourth%20Quarter%20%26%20Full-Year%202023%20Results) Quanta Services achieved record Q4 and full-year 2023 results, marked by significant revenue and EPS growth, record cash flow, and robust backlog Q4 2023 Key Financial Results | Metric | Q4 2023 | Q4 2022 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $5.78 Billion | $4.42 Billion | +30.8% | | Net Income Attributable to Common Stock | $210.9 Million | $162.6 Million | +29.7% | | GAAP Diluted EPS | $1.42 | $1.10 | +29.1% | | Adjusted Diluted EPS | $2.04 | $1.68 | +21.4% | | Adjusted EBITDA | $550.2 Million | $449.9 Million | +22.3% | | Cash Flow From Operations | $1.00 Billion | $0.58 Billion | +72.4% | Full-Year 2023 Key Financial Results | Metric | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $20.88 Billion | $17.07 Billion | +22.3% | | Net Income Attributable to Common Stock | $744.7 Million | $491.2 Million | +51.6% | | GAAP Diluted EPS | $5.00 | $3.32 | +50.6% | | Adjusted Diluted EPS | $7.16 | $6.34 | +12.9% | | Adjusted EBITDA | $1.95 Billion | $1.68 Billion | +15.6% | | Cash Flow From Operations | $1.58 Billion | $1.13 Billion | +39.8% | - The company ended the year with record remaining performance obligations of **$13.89 billion** and a record total backlog of **$30.11 billion**[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management credits strong 2023 results to strategic execution, expecting continued growth from energy transition and infrastructure modernization demand - Management credits the strong 2023 performance, which delivered record revenues, profits, and cash flow, to the hard work of employees and the successful execution of strategic initiatives[4](index=4&type=chunk) - The company sees continued growth opportunities driven by strong demand for its solutions that support customers' energy-transition initiatives, reliability, safety, and modernization of infrastructure[5](index=5&type=chunk) - Quanta's portfolio approach is considered a strategic advantage, enabling risk management and resource allocation to the most economically attractive opportunities as the energy transition accelerates[5](index=5&type=chunk) [Recent Highlights & Capital Deployment](index=3&type=section&id=Recent%20Highlights%20%26%20Capital%20Deployment) Quanta continued capital deployment in early 2024 through strategic acquisitions, significant stock repurchases, and an increased quarterly cash dividend - In January 2024, Quanta acquired two U.S. businesses for aggregate consideration of approximately **$424.7 million**, one providing specialty environmental solutions and the other specializing in safety equipment[7](index=7&type=chunk) - The company has authorization to repurchase an additional **$499.7 million** of its common stock under its existing program[7](index=7&type=chunk) - In December 2023, the Board of Directors declared a quarterly cash dividend of **$0.09 per share**, a **13% increase** from the prior quarter[7](index=7&type=chunk) [Full-Year 2024 Outlook](index=3&type=section&id=Full-Year%202024%20Outlook) Quanta provides a positive outlook for 2024, projecting continued growth in revenues, earnings, and strong free cash flow generation [2024 Financial Guidance](index=3&type=section&id=2024%20Financial%20Guidance) Quanta projects continued solid growth for 2024, with guidance for revenues, adjusted diluted EPS, and strong free cash flow generation Full-Year 2024 Financial Guidance | Metric | Low Range | High Range | | :--- | :--- | :--- | | Revenues | $22.25 Billion | $22.75 Billion | | Net Income Attributable to Common Stock | $851 Million | $925 Million | | GAAP Diluted EPS | $5.71 | $6.21 | | Adjusted Diluted EPS | $8.00 | $8.50 | | Adjusted EBITDA | $2.14 Billion | $2.25 Billion | | Net Cash from Operating Activities | $1.75 Billion | $2.15 Billion | | Free Cash Flow | $1.30 Billion | $1.70 Billion | - Management acknowledges potential risks to its outlook, including weather, regulatory issues, supply chain challenges, inflation, and interest rates, but the guidance reflects an effort to align these uncertainties with its current backlog and expected opportunities[9](index=9&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including statements of operations and balance sheets, reflecting its financial position and performance [Statements of Operations](index=9&type=section&id=Statements%20of%20Operations) The consolidated statement of operations reflects significant year-over-year revenue growth for 2023, driving a substantial increase in net income Condensed Consolidated Statements of Operations (Year-End) | (In thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Revenues | $20,882,206 | $17,073,903 | | Gross profit | $2,937,086 | $2,529,155 | | Operating income | $1,127,976 | $872,058 | | Net income attributable to common stock | $744,689 | $491,189 | | Diluted EPS | $5.00 | $3.32 | [Balance Sheets](index=10&type=section&id=Balance%20Sheets) The company's balance sheet expanded significantly as of December 31, 2023, reflecting growth in total assets, equity, and liabilities Condensed Consolidated Balance Sheets (Year-End) | (In thousands) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $1,290,248 | $428,505 | | Total current assets | $7,676,897 | $5,536,070 | | Total assets | $16,237,225 | $13,464,337 | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $5,213,116 | $3,406,194 | | Total liabilities | $9,953,870 | $8,065,518 | | Total equity | $6,283,355 | $5,398,819 | [Segment Performance and Backlog](index=11&type=section&id=Segment%20Performance%20and%20Backlog) This section details the performance of Quanta's operating segments and the significant growth in its total backlog and remaining performance obligations [Segment Results](index=11&type=section&id=Segment%20Results) All segments reported revenue growth for full-year 2023, with Renewable Energy Infrastructure Solutions showing the most significant increase Full-Year 2023 Segment Revenues (In thousands) | Segment | FY 2023 Revenue | FY 2022 Revenue | % Change | | :--- | :--- | :--- | :--- | | Electric Power Infrastructure Solutions | $9,696,897 | $8,940,276 | +8.5% | | Renewable Energy Infrastructure Solutions | $6,170,301 | $3,778,560 | +63.3% | | Underground Utility and Infrastructure Solutions | $5,015,008 | $4,355,067 | +15.2% | Full-Year 2023 Segment Operating Income (In thousands) | Segment | FY 2023 Op. Income | FY 2022 Op. Income | % Change | | :--- | :--- | :--- | :--- | | Electric Power Infrastructure Solutions | $1,013,350 | $958,798 | +5.7% | | Renewable Energy Infrastructure Solutions | $477,208 | $304,308 | +56.8% | | Underground Utility and Infrastructure Solutions | $377,977 | $317,543 | +19.0% | [Remaining Performance Obligations and Backlog](index=12&type=section&id=Remaining%20Performance%20Obligations%20and%20Backlog) Quanta's total backlog and remaining performance obligations reached record levels at year-end 2023, driven by strong growth across key segments Total Backlog by Segment (In thousands) | Segment | Dec 31, 2023 | Dec 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Electric Power Infrastructure Solutions | $15,501,028 | $13,082,907 | +18.5% | | Renewable Energy Infrastructure Solutions | $8,125,002 | $4,722,209 | +72.1% | | Underground Utility and Infrastructure Solutions | $6,482,389 | $6,288,651 | +3.1% | | **Total** | **$30,108,419** | **$24,093,767** | **+25.0%** | - Total Remaining Performance Obligations (RPOs) increased significantly to **$13.89 billion** as of December 31, 2023, compared to **$8.80 billion** at the end of 2022[37](index=37&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures for both historical results and future guidance [Reconciliation for Q4 & Full-Year 2023 Results](index=13&type=section&id=Reconciliation%20for%20Q4%20%26%20Full-Year%202023%20Results) This section details reconciliations of GAAP to non-GAAP financial measures for Q4 and full-year 2023, adjusting for non-cash and non-recurring items to reflect core performance [Adjusted Net Income and EPS](index=13&type=section&id=Adjusted%20Net%20Income%20and%20EPS) Full-year 2023 GAAP net income of $744.7 million was adjusted to $1.06 billion, resulting in an adjusted diluted EPS of $7.16 Full-Year 2023 Reconciliation of Net Income and Diluted EPS | (In thousands, except per share) | Amount | Per Share | | :--- | :--- | :--- | | **Net income attributable to common stock (GAAP)** | **$744,689** | **$5.00** | | Non-cash stock-based compensation | $126,762 | $0.85 | | Amortization of intangible assets | $289,014 | $1.94 | | Acquisition and integration costs | $42,837 | $0.29 | | Other adjustments & tax impacts | ($138,379) | ($0.92) | | **Adjusted net income attributable to common stock** | **$1,064,923** | **$7.16** | [EBITDA and Adjusted EBITDA](index=15&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Full-year 2023 GAAP net income of $744.7 million was reconciled to an adjusted EBITDA of $1.95 billion through various adjustments Full-Year 2023 Reconciliation of EBITDA and Adjusted EBITDA | (In thousands) | Amount | | :--- | :--- | | **Net income attributable to common stock (GAAP)** | **$744,689** | | Interest, Taxes, Depreciation & Amortization | $1,029,086 | | **EBITDA** | **$1,773,775** | | Non-cash stock-based compensation | $126,762 | | Acquisition and integration costs | $42,837 | | Other adjustments | $3,809 | | **Adjusted EBITDA** | **$1,947,183** | [Free Cash Flow](index=17&type=section&id=Free%20Cash%20Flow) The company generated strong free cash flow of $1.21 billion for full-year 2023, derived from operating activities less capital expenditures Full-Year 2023 Reconciliation of Free Cash Flow | (In thousands) | Amount | | :--- | :--- | | **Net cash provided by operating activities** | **$1,575,952** | | Less: Net capital expenditures | ($365,456) | | **Free Cash Flow** | **$1,210,496** | [Reconciliation for Full-Year 2024 Guidance](index=18&type=section&id=Reconciliation%20for%20Full-Year%202024%20Guidance) This section provides forward-looking reconciliations for the company's 2024 guidance, bridging projected GAAP figures to non-GAAP metrics for the upcoming fiscal year [Estimated Adjusted Net Income and EPS](index=18&type=section&id=Estimated%20Adjusted%20Net%20Income%20and%20EPS) Quanta's 2024 guidance reconciles estimated GAAP net income to an adjusted range of $1.19 billion to $1.27 billion, resulting in an adjusted diluted EPS of $8.00 to $8.50 Full-Year 2024 Guidance Reconciliation of Diluted EPS | | Low Range | High Range | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$5.71** | **$6.21** | | Non-cash stock-based compensation | $0.93 | $0.93 | | Amortization of intangible assets | $2.10 | $2.10 | | Other adjustments & tax impacts | ($0.74) | ($0.74) | | **Adjusted Diluted EPS** | **$8.00** | **$8.50** | [Estimated EBITDA and Adjusted EBITDA](index=19&type=section&id=Estimated%20EBITDA%20and%20Adjusted%20EBITDA) The 2024 guidance reconciles GAAP net income to an estimated adjusted EBITDA range of $2.14 billion to $2.25 billion, incorporating various adjustments Full-Year 2024 Guidance Reconciliation of Adjusted EBITDA | (In thousands) | Low Range | High Range | | :--- | :--- | :--- | | **Net income attributable to common stock (GAAP)** | **$850,800** | **$925,300** | | Interest, Taxes, Depreciation & Amortization | $1,142,500 | $1,183,300 | | **EBITDA** | **$1,993,300** | **$2,108,600** | | Non-cash stock-based compensation | $138,600 | $138,600 | | Acquisition and integration costs | $6,400 | $6,400 | | **Adjusted EBITDA** | **$2,138,300** | **$2,253,600** | [Estimated Free Cash Flow](index=20&type=section&id=Estimated%20Free%20Cash%20Flow) Quanta projects strong cash generation for 2024, with estimated free cash flow in the range of $1.30 billion to $1.70 billion Full-Year 2024 Guidance Reconciliation of Free Cash Flow | (In thousands) | Low Range | High Range | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$1,750,000** | **$2,150,000** | | Less: Net capital expenditures | ($450,000) | ($450,000) | | **Free Cash Flow** | **$1,300,000** | **$1,700,000** |