Quanta Services(US:PWR)2025-10-30 14:04Financial Performance - Consolidated revenues for the three months ended September 30, 2025, increased by 17.5% to $7.63 billion compared to $6.49 billion in the same period of 2024[161] - Operating income for the same period rose by 20.0% to $517.2 million, up from $431.2 million in 2024[161] - Net income attributable to common stock for the three months ended September 30, 2025, was $339.4 million, reflecting a 15.8% increase from $293.2 million in 2024[161] - Revenues for the nine months ended September 30, 2025, increased by $3.52 billion, or 20.6%, to $20.64 billion compared to $17.12 billion in the same period of 2024[169] - Operating income for the nine months ended September 30, 2025, rose by $232.84 million, or 26.1%, to $1.13 billion, driven by a $359.16 million increase in the Electric segment[185] - Comprehensive income attributable to common stock increased by $182.1 million in the nine months ended September 30, 2025, primarily due to a $108.3 million increase in net income[177] - EBITDA for the nine months ended September 30, 2025, was $1,809,922 thousand, up from $1,451,226 thousand in the same period of 2024, reflecting a significant increase in operational performance[194] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $2,030,975 thousand, compared to $1,593,323 thousand in the prior year[194] Segment Performance - The Electric segment saw a revenue increase of $938.1 million, while the Underground and Infrastructure segment experienced a $200.1 million revenue increase[161] - The Electric segment generated revenues of $16.57 billion for the nine months ended September 30, 2025, reflecting a $2.94 billion increase, or 21.6%, compared to the prior year[185] - The Underground and Infrastructure segment reported a revenue increase of $575.78 million, or 16.5%, totaling $4.06 billion for the nine months ended September 30, 2025[185] - Revenues for the Underground and Infrastructure segment increased by approximately $520 million due to acquired businesses and increased service demand[188] Backlog and Performance Obligations - As of September 30, 2025, remaining performance obligations and backlog were $20.97 billion and $39.17 billion, representing increases of 25.1% and 13.4% compared to December 31, 2024[151] - Remaining performance obligations as of September 30, 2025, totaled $13,449,837 thousand, indicating a strong backlog for future revenue generation[198] - The total backlog as of September 30, 2025, was $22,310,027 thousand, reflecting an increase from $19,771,937 thousand at the end of 2024[198] - MSAs accounted for 38% of the estimated 12-month backlog as of September 30, 2025, indicating a stable revenue stream from existing contracts[197] Expenses and Costs - Selling, general and administrative expenses increased by 18.4% to $572.9 million compared to $483.9 million in 2024[161] - Selling, general and administrative expenses increased by $276.70 million, or 21.0%, to $1.60 billion for the nine months ended September 30, 2025, largely due to costs related to recently acquired businesses[169] - Interest and other financing expenses increased by $39.35 million, or 26.9%, to $185.70 million for the nine months ended September 30, 2025, primarily due to higher fixed-rate debt balances[174] - Corporate and non-allocated costs increased by $88.8 million due to higher intangible asset amortization and compensation expenses, impacting overall profitability[191] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1.10 billion, a 19% decrease from the same period in 2024[149] - Net cash provided by operating activities for the nine months ended September 30, 2025, is $1.10 billion, a decrease from $1.37 billion in the same period of 2024[208] - Net cash used in investing activities for the nine months ended September 30, 2025, is $2.29 billion, compared to $2.13 billion in 2024, with $1.78 billion related to acquisitions[210] - The company issued $1.50 billion in senior notes in August 2025, with net proceeds of $1.48 billion used to repay outstanding borrowings[150] - The company plans to continue utilizing cash for financing activities, including debt repayments and stock repurchases[214] Acquisitions and Market Position - The acquisition of Cupertino Electric Inc. in 2024 has driven increased demand for electrical design and installation solutions, particularly in the technology and data center sectors[147] - The company completed five acquisitions during the nine months ended September 30, 2025, with a total cash consideration of $1.78 billion[201] - The company anticipates sufficient cash flows from operations and existing liquidity to meet cash requirements for the next twelve months[203] Tax and Ratings - The effective income tax rate for the nine months ended September 30, 2025, was 25.2%, up from 22.5% in the prior year, mainly due to a lower tax benefit from equity incentive awards[176] - Moody's revised the company's Baa3 investment grade ratings outlook from stable to positive in July 2025[207] Risk and Liquidity - Days sales outstanding (DSO) as of September 30, 2025, is 66 days, slightly higher than 65 days in 2024 but lower than the five-year historical average of 75 days[209] - As of September 30, 2025, the total capacity available for revolving loans and credit support is $2.80 billion, with available commitments for revolving loans at $2.73 billion after accounting for outstanding letters of credit of $65.6 million[205] - Cash and cash equivalents amount to $610.4 million, including $287.4 million held outside the U.S., primarily in Australia[205] - There were no material changes to the company's market risk disclosures during the nine months ended September 30, 2025, with primary exposure related to interest rates and currency exchange rates[216]