Yahoo Finance Quanta Services, Inc. (NYSE:PWR) Q1 2024 Earnings Call Transcript
Quanta Services, Inc. (NYSE:PWR) Q1 2024 Earnings Call Transcript May 2, 2024
Quanta Services, Inc. beats earnings expectations. Reported EPS is $1.41, expectations were $1.29. Quanta Services, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings and welcome to the Quanta Services First Quarter 2024 Earnings Conference Call. At this time all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Kip Rupp, Vice President, Investor Relations. Thank you. You may begin.
Kip Rupp : Thank you, and welcome everyone to the Quanta Services first quarter 2024 earnings conference call. This morning we issued a press release announcing our first quarter of 2024 results, which can be found in the Investor Relations section of our website at quantaservices.com. As highlighted in our earnings release this morning, we've recently updated our earnings call format and supplemental materials shortly after the release of our financial results this morning, we posted our first quarter of 2024 operational and financial commentary and our 2024 outlook expectation summary on Quanta’s Investor Relations website. While management will make brief introductory remarks during this morning's call, the operational and financial commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community.
Additionally, we no longer have a slide presentation to accompany this call, as the information that has historically been included in the presentation can now be found in our operational and financial commentary. Please remember that information reported on this call speaks only as of today, May 2, 2024, and therefore, you are advised that any time-sensitive information may no longer be accurate as of any replay of this call. This call will include forward-looking statements intended to qualify under the safe harbor from liability, established by the Private Securities Litigation Reform Act of 1995, including all statements reflecting expectations, intentions, assumptions or beliefs about future events or performance that do not solely relate to historical or current facts.
You should not place undue reliance on these statements as they involve certain risks, uncertainties and assumptions that are difficult to predict or beyond Quanta's control and actual results may differ materially from those expressed or implied. We will also present certain historical and forecasted non-GAAP financial measures. Reconciliations of these financial measures to their most directly comparable GAAP financial measures are included in our earnings release and operational and financial commentary. Please refer to these documents for additional information regarding our forward-looking statements and non-GAAP financial measures. Lastly, if you would like to be notified when Quanta publishes news releases and other information, please sign up for e-mail alerts through the Investor Relations section of quantaservices.com.
We also encourage investors and others interested in our company to follow Quanta IR and Quanta Services on the social media channels, listed on our website. With that, I'd like to now turn the call over to Mr. Duke Austin, Quanta’s President and CEO. Duke?
Duke Austin : Thanks Kip. Good morning everyone, and welcome to Quanta Services first quarter 2024 earnings conference call. This morning, we reported our first quarter of 2024 results, which included double-digit growth in revenue, adjusted EBITDA and adjusted earnings for share and strong cash flow demonstrating an overall good start to the year. Total backlog at quarter end was $29.9 billion, which we believe reflects the value of our collaborative client relationships and evidences the momentum we see for 2024. Utilities across the United States are experiencing and forecasting meaningful increases in power demand for the first time in many years, driven by the adoption of new technologies and related infrastructure, including artificial intelligence and data centers as well as federal and state policies that designed to accelerate the energy transition and policies intended to strategically reinforce domestic manufacturing and supply chain resources.
With the complexities of the power grid and the significant upgrades and enhancements required to facilitate low growth, our collaborative solution based approach is valued by our clients more than ever. We continue to look forward to the realization of our multi-year strategic initiatives and the goals we expect to achieve in this and the coming years. With our positioning Quanta for decades of expected necessary infrastructure investment and believe our service line diversity creates platforms for growth that expand our total addressable market. Our portfolio approach and focus on craft skill labor is a strategic advantage that we believe provides us the ability to manage risk and ship resources across service lines and geographies, which is increasingly important as the energy transition accelerates.
We believe, our diversity and portfolio approach has also improved our cash flow profile and positions us well to allocate resources to the opportunities we find most economically attractive and to achieve operating efficiencies and consistent financial results. I will now turn the call over to Jayshree Desai, Quanta’s CFO to provide a few remarks about our results and 2024 guidance. And then we will take your questions. Thanks. Jayshree?
Jayshree Desai: Thanks Duke and good morning everyone. This morning we reported first quarter revenues of $5 billion. Net income attributable to common stock of $118.4 million or $0.79 per diluted share and adjusted diluted earnings per share of $1.41. Adjusted EBITDA with $387.3 million or 7.7% of revenues. Of note, we generated healthy cash flows in the first quarter with cash flow from operations of $238 million and free cash flow of $181.2 million. Both settings first quarter records. This earnings and cash flow performance allowed us to end the first quarter with ample liquidity and a balance sheet that supports both our organic growth expectations and the opportunistic deployment of capital to generate incremental returns for our stockholders.
To that end, year to date, we had acquired four companies for aggregate consideration of approximately $500 million. This morning, we also provided an update to our full year 2024 financial expectations, which calls for another year of profitable growth with record revenues and opportunity for double-digit growth in adjusted EBITDA, adjusted earnings per share and free cash flow. We believe our expectations demonstrate the strength of our portfolio approach to the business, our commitment to our long-term strategy, favorable end market trends and our competitive position in the marketplace. Additional details and commentary about our 2024 financial guidance can be found in our operational and financial commentary and outlook expectation summary, both of which are posted on our IR website.
With that, we are happy to answer your questions. Operator?
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