Quanta Services (PWR) Q4 2024 earnings summary

Executive summary

• Achieved double-digit growth in revenues and earnings for Q4 and FY 2024, with several record financial metrics including backlog, adjusted EPS, profits, and cash flow.

• Ended 2024 with a total backlog of $34.54 billion and record remaining performance obligations, positioning for continued strategic growth in 2025.

• Completed eight acquisitions in 2024 and two more in early 2025 for $562 million, expanding capabilities and market reach, primarily impacting the Underground & Infrastructure segment.

• Seven consecutive years of record adjusted EBITDA and eight consecutive years of record adjusted diluted EPS.

• Strategic initiatives are expanding service lines, customer base, and total addressable market, positioning the company at the center of the energy and infrastructure transformation.

Financial highlights

• Q4 2024 revenues were $6.6 billion; net income attributable to common stock was $305.1 million ($2.03 per diluted share); adjusted diluted EPS was $2.94.

• Full-year 2024 revenues reached $23.67 billion; net income attributable to common stock was $904.8 million; GAAP diluted EPS was $6.03; adjusted diluted EPS was $8.97.

• Q4 2024 adjusted EBITDA was $737.8 million (11.3% of revenues); full-year adjusted EBITDA was $2.33 billion.

• Free cash flow for Q4 and FY 2024 was $575.4 million and $1.55 billion, respectively, with full-year free cash flow at a record level.

• Ended Q4 with ample liquidity, $742 million in cash and cash equivalents, and a strong balance sheet.

Outlook and guidance

• 2025 guidance: revenue $26.60B–$27.10B; net income $1.04B–$1.13B; diluted EPS $6.85–$7.45; adjusted diluted EPS $9.90–$10.50; adjusted EBITDA $2.66B–$2.80B; free cash flow $1.20B–$1.70B.

• Management expects double-digit growth in revenue, net income, adjusted EBITDA, and EPS, with record backlog anticipated.

• Free cash flow is expected to be back-half weighted, following historical patterns.

• New segment reporting in 2025: Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions.

• Backlog expected to remain at record levels, with larger projects and synergies from recent acquisitions anticipated.