QUANTA SERVICES REPORTS FIRST QUARTER 2025 RESULTS

Core Insights - Quanta Services reported strong first quarter results for 2025, with revenues of $6.23 billion, a significant increase from $5.03 billion in the same period of 2024, reflecting robust double-digit growth [1][2] - The company achieved a net income attributable to common stock of $144.3 million, or $0.96 per diluted share, compared to $118.4 million, or $0.79 per diluted share, in the first quarter of 2024 [1][2] - Adjusted diluted earnings per share rose to $1.78 from $1.41 year-over-year, indicating improved profitability across segments [1][2] Financial Performance - First quarter adjusted EBITDA was reported at $503.9 million, with cash flow from operations of $243.2 million and free cash flow of $117.8 million [1] - The remaining performance obligations (RPO) stood at $17.6 billion, while total backlog reached a record $35.3 billion, showcasing strong demand for Quanta's services [1][2] - The company repurchased approximately $135 million of its outstanding common stock during the quarter, reflecting confidence in its financial position [1][11] Segment Performance - Quanta operates under two reportable segments: Electric Infrastructure Solutions and Underground Utility and Infrastructure, with the Electric segment generating $4.94 billion in revenues, up from $3.91 billion in 2024 [25][26] - The Underground and Infrastructure segment reported revenues of $1.29 billion, an increase from $1.12 billion in the previous year [26] - Both segments demonstrated improved operating income margins, with Electric at 8.3% and Underground at 6.0% for the first quarter of 2025 [26] Strategic Outlook - The company raised its full-year 2025 revenue, adjusted EBITDA, and adjusted EPS expectations, indicating a positive outlook despite macroeconomic uncertainties [2][10] - Quanta's strategic focus on expanding service lines and maintaining a customer-centric approach is expected to drive future growth [3] - The company is actively managing supply chain risks and collaborating with customers to optimize costs amid trade tariff impacts [6][7] Recent Developments - Quanta was selected for a significant electric transmission upgrade project by the Los Angeles Department of Water and Power, further enhancing its project backlog [4][5] - The company received credit rating upgrades from S&P Global Ratings, which are anticipated to lower borrowing costs and expand liquidity options [11] - Quanta's proactive measures in supply chain management and strategic acquisitions are expected to bolster its competitive position in the market [3][11]