Quanta Services(US:PWR)2025-10-30 10:58Financial Performance - Third quarter consolidated revenues reached $7.6 billion, up from $6.49 billion in the same quarter of 2024, representing a year-over-year growth of approximately 17%[2] - Net income attributable to common stock for the third quarter was $339.4 million, or $2.24 per diluted share, compared to $293.2 million, or $1.95 per diluted share, in the prior year, reflecting a 15.7% increase in net income[2] - Adjusted EBITDA for the third quarter was $858.3 million, contributing to a record backlog of $39.2 billion, indicating strong demand in the Electric segment[2][3] - Revenues for Q3 2025 reached $7,631,408, a 17.5% increase from $6,493,167 in Q3 2024[26] - Gross profit for Q3 2025 was $1,216,434, up 20.2% from $1,012,570 in Q3 2024[26] - Net income attributable to common stock for Q3 2025 was $339,420, representing a 15.7% increase from $293,185 in Q3 2024[26] - Earnings per share (diluted) for Q3 2025 was $2.24, compared to $1.95 in Q3 2024, reflecting a 14.9% increase[26] - Operating income for Q3 2025 was $517,217, a 20% increase from $431,161 in Q3 2024[26] - Total revenues for the nine months ended September 30, 2025, were $20,637,749, a 20.5% increase from $17,119,373 in the same period of 2024[26] - The company reported a gross profit of $3,058,045 for the nine months ended September 30, 2025, up 24.9% from $2,447,395 in 2024[26] - Adjusted net income attributable to common stock for the nine months ended September 30, 2025, was $1.13 billion, compared to $0.89 billion for the same period in 2024[38] - Adjusted diluted earnings per share for the three months ended September 30, 2025, was $3.33, compared to $2.72 in 2024, reflecting a 22.5% increase[50] - EBITDA for the three months ended September 30, 2025, was $772,847, representing a 22% increase from $634,104 in 2024[50] Cash Flow and Expenditures - Year-to-date cash flow from operations totaled $1.1 billion, with free cash flow amounting to $726.3 million[2] - Free cash flow for the three months ended September 30, 2025, was $438,096, down from $539,470 in 2024, indicating a decrease of 18.7%[54] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,102,405, a decrease of 19.5% from $1,369,181 in 2024[54] - Capital expenditures for the nine months ended September 30, 2025, totaled $415,560, down from $457,093 in 2024, a reduction of 9.1%[54] - Free cash flow for the full year 2025 is estimated to be between $1,300,000,000 and $1,700,000,000[68] - Net cash provided by operating activities is projected to range from $1,850,000,000 to $2,250,000,000 for the full year 2025[68] Future Projections - For the full year 2025, the company expects revenues between $27.8 billion and $28.2 billion, with net income projected between $987.1 million and $1.06 billion[12] - Adjusted diluted earnings per share for the full year 2025 are anticipated to range between $10.33 and $10.83, reflecting significant growth compared to previous periods[12] - Estimated adjusted net income attributable to common stock for the full year 2025 is projected to be between $1,562,600,000 and $1,637,400,000[60] - Estimated EBITDA for the full year 2025 is projected to be between $2,493,000,000 and $2,599,900,000[65] - Adjusted EBITDA for the full year 2025 is expected to range from $2,768,400,000 to $2,875,300,000[65] - Net income attributable to common stock (GAAP) is estimated to be between $987,100,000 and $1,061,900,000 for the full year 2025[65] Acquisitions and Market Expansion - Quanta completed five acquisitions in the first nine months of 2025, enhancing its operational capabilities and market reach[6] - The company has been selected by NiSource to provide power generation and grid infrastructure solutions capable of producing approximately 3 gigawatts of power for a large load customer[7][6] - The company is focused on expanding its total solutions platform to meet the growing demand for electricity driven by various sectors, including data centers and industrialization[6] Stock and Shareholder Returns - Quanta repurchased 538,559 shares of its common stock for $134.6 million, with approximately $365.1 million remaining under its stock repurchase program[8] - The weighted average diluted shares outstanding increased to 151,496 in Q3 2025 from 150,556 in Q3 2024[26] Segment Performance - Electric segment revenues accounted for 80.9% of total revenues in Q3 2025, generating $6.17 billion, compared to $5.23 billion in Q3 2024[30] - Operating income for the Electric segment was $703.84 million, with an operating margin of 11.4%, compared to $576.01 million and 11.0% in the prior year[30] - Remaining performance obligations for the Electric segment totaled $19.09 billion as of September 30, 2025, an increase from $15.65 billion at the end of 2024[37] - Total backlog increased to $39.17 billion as of September 30, 2025, compared to $34.54 billion at the end of 2024, reflecting a growth of 13.5%[37] - The Underground and Infrastructure segment generated revenues of $1.46 billion in Q3 2025, up from $1.26 billion in Q3 2024, representing a growth of 15.9%[30] Expenses and Costs - The provision for income taxes for Q3 2025 was $119,605, compared to $82,421 in Q3 2024, indicating an increase in tax expenses[26] - The company experienced a rise in selling, general and administrative expenses to $572,950 in Q3 2025, up from $483,878 in Q3 2024[26] - Corporate and non-allocated costs increased to $308.84 million in Q3 2025, compared to $238.81 million in Q3 2024, impacting overall operating income[30] - Acquisition and integration costs for the three months ended September 30, 2025, were $31,903, significantly higher than $7,053 in 2024[50] - Non-cash stock-based compensation for the nine months ended September 30, 2025, was $129,121, compared to $110,815 in 2024, reflecting a 16.5% increase[50] - Non-cash stock-based compensation is expected to be $177,200,000 for the full year 2025[65] - Acquisition and integration costs are projected to be $76,500,000 for the full year 2025[65] - Amortization of intangible assets is estimated to be $490,000,000 for the full year 2025[65]