Quanta Services, Inc. · NYSE:PWR
Quanta Services — Q2 2024 Earnings Presentation
21 slides from Quanta Services's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Operational and Financial Commentary
August 1, 2024 Second Quarter 2024 Operational and Financial Commentary This document is a supplement to our press release reporting second quarter 2024 results for Quanta Services, Inc. (Quanta, we, us or our). Our press release was previously distributed by Cision and can also be found in the Inve
Slide 2: 2Q24 Financial Results and Commentary: Electric Power Segment
2Q24 Financial Results and Commentary Electric Power Infrastructure Solutions Segment (Electric Power) * Operating Income Margins are calculated by dividing operating income by revenues Our Electric Power segment operations performed well in the second quarter of 2024, with revenues of $2.5 billion
Slide 3: Electric Segment backlog and power demand drivers
*Refer to the Appendix for a definition and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure Electric Segment backlog was $17.2 billion at the end of the second quarter of 2024, a record, driven by the addition of multiple multi-year program awards. Thes
Slide 4: EV penetration and Renewable Energy Infrastructure Solutions segment
Source: Edison Electric Institute Additionally, electric vehicle (EV) penetration is beginning to pressure the electric distribution system in some areas, and we continue to believe EV adoption in North America is in the early stages of a long-term transition and that large capital investment in the
Slide 5: Renewable Energy segment results and backlog
Second quarter operating income margin of 8% was a sequential improvement from the first quarter due to better overall execution in the field, despite headwinds from challenging projects that were discussed in the first quarter 2024. *Refer to the Appendix for a definition and reconciliation of this
Slide 6: Underground Utility & Infrastructure Solutions Segment
Underground Utility & Infrastructure Solutions Segment (Underground and Infrastructure) * Operating Income Margins are calculated by dividing operating income by revenues. Included in operating income for the Underground and Infrastructure segment in the first quarter of 2024 was a loss on the sale
Slide 7: Underground and Infrastructure backlog and consolidated results
Total backlog for the Underground and Infrastructure segment was $6.3 billion at the end of the second quarter of 2024, an increase as compared to the first quarter of 2024. The market for our industrial solutions and gas utility and pipeline integrity services remains solid given the recurring crit
Slide 8: Free Cash Flow & Days Sales Outstanding
Free Cash Flow & Days Sales Outstanding *Refer to the Appendix for a definition and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure **Refer to the Appendix for the definition of Days Sales Outstanding Cash flow in the second quarter of 2024 was greater
Slide 9: Liquidity and Acquisition of Cupertino Electric, Inc. (CEI)
*Refer to the Appendix for the definition of Total Liquidity As of June 30, 2024, we had total liquidity of approximately $2.8 billion and a debt-to-EBITDA ratio of 1.8x (as calculated under our credit agreement). Subsequent to June 30, 2024, we utilized borrowings under our existing commercial pape
Slide 10: Full-Year 2024 Guidance
• For the remainder of 2024, expect revenue of $1.0 to $1.1 billion, adjusted EBITDA of $80 million to $90 million and adjusted diluted EPS of $0.17 to $0.22. • Backlog as of June 30, 2024 of $1.9 billion The upfront transaction consideration was approximately $1.5 billion, excluding cash acquired a
Slide 11: Full-Year 2024 Guidance Estimated Range
Estimated Range ($M except per share data) Low Mid High Revenues $23,500 $23,800 $24,100 Adj. EBITDA* $2,212 $2,272 $2,333 Free Cash Flow* $1,300 $1,500 $1,700 Net Income $838 $879 $921 Diluted EPS (GAAP) $5.59 $5.87 $6.14 Adjusted Diluted EPS* $8.32 $8.60 $8.87 *Refer to the Appendix for a definiti
Slide 12: Segment Guidance: Electric Power and Renewable Energy
Despite this near-term pressure, we believe there are meaningful opportunities for our Canadian electric operations and expect the same market forces driving growth in the United States to positively impact the Canadian market in the years ahead. Renewable Energy Segment Guidance 2024 Estimated Rang
Slide 13: Free Cash Flow, Interest Expense and Positive Multi-Year Outlook
Free Cash Flow and Interest Expense We expect free cash flow for the full year 2024 to be between $1.3 billion and $1.7 billion, which would represent another record and reflects the favorable cash flow characteristics of our renewable infrastructure solutions, as well as an anticipated favorable re
Slide 14: Cautionary Statement About Forward-Looking Statements
our forward-looking statements due to inaccurate assumptions and known and unknown risk and uncertainties. For additional information concerning some of the risks, uncertainties, assumptions and other factors that could affect our forward-looking statements, please refer to Quanta’s Annual Report on
Slide 15: Appendix: Non-GAAP definitions
Appendix Backlog is defined as remaining performance obligations, plus estimated orders under master service agreements, including estimated renewals, and non-fixed price contracts expected to be completed within one year. Quanta’s methodology for determining backlog may not be comparable to the met
Slide 16: Non-GAAP Definitions (Free cash flow, Net debt, Total liquidity)
Gains and losses on sales of investments and businesses vary from period to period depending on activity. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from sale of prope
Slide 17: Reconciliation of Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Adjusted Net Income Attributable to Common Stock and Adjusted Diluted Earnings Per Share Attributable to Common Stock ($000s, except per share amounts) 2023 2024 FY 2024 GUIDANCE RANGE 2Q 2Q YTD 2Q 2Q YTD Low Mid High Reconciliation of adjusted net income attributable to common sto
Slide 18: Reconciliation of Adjusted EBITDA and Free Cash Flow
Reconciliation of Adjusted EBITDA ($000s) 2023 2024 FY 2024 GUIDANCE RANGE 2Q 2Q YTD 2Q 2Q YTD Low Mid High Net income attributable to common stock (GAAP as reported) $ 165,899 $ 260,945 $ 188,159 $ 306,519 $ 838,000 $ 879,350 $ 920,700 Interest expense, net 46,741 86,918 41,764 74,813 172,500 174,7
Slide 19: Reconciliation of Backlog
Reconciliation of Backlog ($000s) June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 12 Month Total 12 Month Total 12 Month Total 12 Month Total 12 Month Total Electric Power Infrastructure Solutions Remaining performance $ 2,584,140 $ 4,128,988 $ 2,693,352 $ 4,383,055 $
Slide 20: Cautionary Statement About Forward-Looking Statements and Information
Cautionary Statement About Forward-Looking Statements and Information This commentary (and oral statements regarding the subject matter of this press release, including those made on the conference call and webcast announced herein) contains forward-looking statements intended to qualify for the “sa
Slide 21: Forward-Looking Statements (continued)
systems; new or changed tax laws, treaties or regulations or the inability to realize deferred tax assets; and other risks and uncertainties detailed in Quanta’s Annual Report on Form 10-K for the year ended December 31, 2023, Quanta's Quarterly Report on Form 10-Q for the quarters ended March 31, 2