Slide 1: Third Quarter 2024 Operational and Financial Commentary
October 31, 2024 Third Quarter 2024 Operational and Financial Commentary This document is a supplement to our press release reporting third quarter 2024 results for Quanta Services, Inc. (Quanta, we, us or our). Our earnings release was previously distributed by Cision and can also be found in the I
Slide 2: 3Q24 Financial Highlights
of our portfolio is a strategic advantage that helps us manage risks, shift resources across service lines and geographies, allocate resources toward economically attractive opportunities and create operating efficiencies, improved returns and consistent financial results. 3Q24 Financial Highlights
Slide 3: Electric Power segment results and backlog
and system hardening initiatives, as well as sound execution and effective resource management across our electric power and communications operations. Contributing to the margin performance during the quarter were emergency restoration revenues of approximately $230 million. Additionally, businesse
Slide 4: Data Center Power Demand Forecasts and Utility Capex Plans
Data Center Power Demand Forecasts Continue to be Upwardly Revised Electric Utility Capital Expenditure Plans Show Continued Healthy Growth 4
Slide 5: Renewable Energy Infrastructure Solutions Segment
Renewable Energy Infrastructure Solutions Segment (Renewable Energy) * Operating Income Margins are calculated by dividing operating income by revenues Our Renewable Energy segment revenues were a record $2.3 billion in the third quarter of 2024, led by renewable generation project activity, includi
Slide 6: Renewable Energy segment backlog
Renewable Energy segment total backlog was $7.6 billion as of September 30, 2024, a decline compared to the second quarter of 2024, and includes approximately $400 million of backlog from companies acquired during the third quarter of 2024. Normal variability in the timing of awards and recognition
Slide 7: 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 8: Underground and Infrastructure backlog and consolidated backlog
Total backlog for the Underground and Infrastructure segment increased to $6.4 billion at the end of the third quarter of 2024. While we continue to expect segment backlog to fluctuate due to the timing of project awards, we believe there is opportunity for continued base business growth due to volu
Slide 9: Free Cash Flow & Days Sales Outstanding
Free Cash Flow & Days Sales Outstanding *Refer to the Appendix for a definition and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure **Refer to the Appendix for the definition of Days Sales Outstanding Cash flow provided by operating activities and free
Slide 10: Balance Sheet & Liquidity
Balance Sheet & Liquidity December 31, September 30, ($M) 2021 2022 2023 2024 Cash and Cash Equivalents $ 229 $ 429 $ 1,290 $ 764 Debt Credit Facility (Revolver) $ 450 $ 37 $ 136 $ 59 Commercial Paper — 373 706 — Term Loans 750 750 731 717 Senior Notes 2,500 2,500 2,500 3,750 Other 54 70 126 162 Tot
Slide 11: Full-Year 2024 Guidance
Full-Year 2024 Guidance *The investment community is encouraged to review Quanta’s Outlook Expectations Summary, which can be found on our Investor Relations website at http://investors.quantaservices.com in the News & Events and Financial Info sections. This document provides a detailed discussion
Slide 12: Electric Power Segment Guidance
Electric Power Segment Guidance 2024 Estimated Range Low Mid High Revenues ($M) $11,000 $11,075 $11,150 Revenue Growth 13.4% 14.2% 15.0% We expect Electric Power segment revenues to be between $11.0 and $11.2 billion for the full year of 2024, which includes approximately $550 million of emergency r
Slide 13: Underground and Infrastructure Segment Guidance
Underground and Infrastructure Segment Guidance 2024 Estimated Range Low Mid High Revenues ($M) $4,550 $4,575 $4,600 Revenue Growth (9.3)% (8.8)% (8.3)% We now expect Underground and Infrastructure segment revenues to be between $4.55 and $4.60 billion for the full year of 2024, representing a 9% de
Slide 14: Positive Multi-Year Outlook
Positive Multi-Year Outlook We believe the transition towards a reduced-carbon economy and increased load growth will require significant infrastructure investment, and we believe we are in the early stages of a multi-decade infrastructure build. The convergence of the utility, renewable energy and
Slide 15: Appendix
Additionally, any financial projections in this commentary are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Quanta's control. While such projections are necessarily speculative, Quanta be
Slide 16: Non-GAAP adjustment definitions
Non-cash stock-based compensation expense varies period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; Amortization of intangible assets and amortization included in equity in earnings
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 3Q 3Q YTD 3Q 3Q 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 3Q 3Q YTD 3Q 3Q YTD Low Mid High Net income attributable to common stock (GAAP as reported) $ 272,836 $ 533,781 $ 293,185 $ 599,704 $ 853,100 $ 875,800 $ 898,500 Interest expense, net 45,538 132,456 52,713 127,526 174,000 176
Slide 19: Reconciliation of Backlog
Reconciliation of Backlog ($000s) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 12 Month Total 12 Month Total 12 Month Total 12 Month Total 12 Month Total Electric Power Infrastructure Solutions Remaining performance $ 2,693,352 $ 4,383,055 $ 2,762,608 $ 4,505,
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