Quanta Services Reports 15.5% Revenue Growth in Q3 2024, Driven by Strong Performance in Electric Power and Renewable Energy Segments

Quanta Services, Inc. reported significant financial growth in its third quarter and the first nine months of 2024, driven by strong performance in its Electric Power and Renewable Energy segments. For the three months ended September 30, 2024, the company achieved revenues of $6,493.2 million, a 15.5% increase from $5,620.8 million in the same period of 2023. For the nine months ended September 30, 2024, revenues rose to $17,119.4 million, up from $15,098.3 million year-over-year.

Gross profit for the third quarter was $1,012.6 million, reflecting a 19.5% increase from $847.3 million in Q3 2023. Operating income also saw a rise, reaching $431.2 million, compared to $400.3 million in the prior year. Net income attributable to common stock for the third quarter was $293.2 million, up from $272.8 million in Q3 2023, while for the nine-month period, it increased to $599.7 million from $533.8 million.

The growth in revenue was primarily attributed to a $505.2 million increase from the Renewable Energy segment and a $492.5 million increase from the Electric Power segment, although the Underground Utility and Infrastructure segment experienced a $125.4 million decline. The company noted that the Electric Power segment benefited from significant capital investments by utilities for grid modernization, while the Renewable Energy segment capitalized on rising demand for renewable generation and infrastructure.

Quanta's strategic acquisitions played a crucial role in its performance. In July 2024, the company acquired Cupertino Electric, Inc. for approximately $1.66 billion, enhancing its capabilities in electrical design and installation. Additionally, Quanta acquired seven other businesses for a total of $537.8 million during the nine months ended September 30, 2024. These acquisitions contributed to increased revenues and operating income, particularly in the Renewable Energy and Electric Power segments.

Financially, Quanta reported total assets of $18.87 billion as of September 30, 2024, up from $16.24 billion at the end of 2023. Total liabilities also increased to $11.78 billion from $9.95 billion, largely due to the financing of acquisitions. Cash and cash equivalents decreased to $764.1 million from $1.29 billion at the end of 2023, reflecting significant cash outflows for acquisitions.

The company’s effective tax rate for the third quarter was 21.6%, slightly lower than 22.1% in the previous year, benefiting from a tax benefit related to equity incentive awards. Quanta's backlog as of September 30, 2024, was $33.96 billion, a 12.8% increase from December 31, 2023, indicating strong future revenue potential.