Quanta Services(PWR)2025-05-01 13:58Financial Performance - Consolidated revenues for the first quarter of 2025 increased to $6.23 billion, a 23.9% increase compared to $5.03 billion in the first quarter of 2024[139] - Operating income rose to $239.1 million, reflecting a 53.9% increase from $155.4 million in the prior year[139] - Adjusted EBITDA for the three months ended March 31, 2025 was $503,886, up from $387,254 in the same period of 2024, reflecting a significant operational improvement[156] - Comprehensive income attributable to common stock increased by $56.9 million, driven by a $22.9 million increase in net income and a $30.3 million increase related to foreign currency translation adjustments[146] Cash Flow and Investments - Net cash provided by operating activities was $243.2 million, a 2% increase compared to the same period in 2024[128] - The company reported net cash used in investing activities of $520.6 million for the three months ended March 31, 2025, which included $394.3 million related to acquisitions[173] - The company utilized $394.3 million in cash for strategic acquisitions, alongside $118.6 million for stock repurchases and $15.5 million in dividends[128] - Net cash provided by financing activities for the three months ended March 31, 2025 was $52.4 million, primarily due to borrowings under the commercial paper program[178] Segment Performance - The Electric segment saw a revenue increase of $1.03 billion, while the Underground and Infrastructure segment experienced a $168.2 million revenue increase[139] - The Electric segment reported revenues of $4,944,391, a 26.4% increase from $3,911,124 in the prior year, primarily due to approximately $790 million in revenues from acquired businesses[149][150] - The Underground and Infrastructure segment reported revenues of $1,288,943, a 15.0% increase from $1,120,695 in the prior year, attributed to increased demand for industrial solutions[149][152] Backlog and Future Outlook - Remaining performance obligations and backlog were $17.65 billion and $35.25 billion as of March 31, 2025, representing increases of 5.3% and 2.1% respectively from December 31, 2024[129] - The company anticipates continued strong demand for its services, driven by trends in electrification and domestic manufacturing reshoring initiatives[126] - The backlog as of March 31, 2025 was $19,420,259, an increase from $19,771,937 as of December 31, 2024, indicating strong future revenue potential[161] Expenses and Amortization - Selling, general and administrative expenses increased by $91.6 million, primarily due to recent acquisitions and increased compensation expenses[141] - Amortization of intangible assets rose by 41.4% to $109.6 million, driven by recent acquisitions, particularly Cupertino Electric Inc.[142] - Corporate and non-allocated costs increased by $32.1 million due to higher intangible asset amortization expenses associated with recent acquisitions[154] Tax and Financial Ratios - The effective income tax rate for the three months ended March 31, 2025 was 21.1%, up from 14.3% in 2024, primarily due to a lower tax benefit from equity incentive awards[145] - Days sales outstanding (DSO) improved to 63 days as of March 31, 2025, down from 71 days as of March 31, 2024[174] Acquisitions - During the three months ended March 31, 2025, the company completed the acquisition of two businesses for a total cash consideration of $394.3 million[165] - For the year ended December 31, 2024, the company completed the acquisition of eight businesses for a total cash consideration of $1.75 billion[166] Capital Expenditures - The company expects substantial capital expenditures and commitments for equipment purchases to meet anticipated demand for its services[177] - The company plans to continue utilizing cash for financing activities, including debt repayments and stock repurchases[180] - The company maintains a conservative investment policy regarding cash and cash equivalents, with a diverse portfolio of high-quality investments[170]