About Quanta Services
Quanta Services, Inc., together with its subsidiaries, provides comprehensive infrastructure solutions for the electric and gas utility, renewable energy, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. The company provides engineering, procurement, construction, upgrade and repair and maintenance services for infrastructure within each of these industries, including electric power transmission and distribution networks; substation facilities; wind and solar generation and transmission and battery storage facilities; communications and cable multi-system operator networks; gas utility systems; pipeline transmission systems and facilities; and downstream industrial facilities. The company's operations are decentralized and labor-intensive, and it relies on craft skilled labor personnel and experienced operators to successfully manage its day-to-day business. The company also has an experienced management team, both at the executive and regional levels and within its subsidiaries, which it refers to as operating companies. The company operates a fleet of owned and leased trucks and trailers, support vehicles and specialty construction equipment, as well as various proprietary technologies that enhance its service offerings. The company has large and diverse customer base, including many of the leading companies in the utility, renewable energy, communications, industrial and energy delivery markets. The performance of the company's business generally depends on its ability to obtain contracts with customers and to effectively deliver the services provided under those contracts. The company's services are typically provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction and engineering contracts. The company offers comprehensive and diverse solutions on a broad geographic scale and have a solid base of long-standing customer relationships in each of the industries it serves. The company's strategies include delivering and continuing to expand its portfolio of infrastructure solutions to existing and potential customers, developing its technological and training capabilities, remaining committed to the safety of its employees, and maintaining an entrepreneurial culture throughout its organization. Segments The company operates through three segments: Electric Power Infrastructure Solutions (Electric Power), Renewable Energy Infrastructure Solutions (Renewable Energy) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure). The company's entrepreneurial business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end user markets and its reportable segments. The company's operating companies may perform joint projects for customers in multiple industries, deliver multiple types of services under a single customer contract or provide service offerings to various industries. The company operates primarily in the United States; however, it derived approximately 14.2% of its revenues from foreign operations, primarily in Canada and Australia, during the year ended December 31, 2023. Electric Power Electric Power segment provides comprehensive services primarily for the electric power and also for the communications markets. Services performed generally include: design, procurement, new construction, upgrade and repair and maintenance services for electric power transmission and distribution infrastructure, both overhead and underground, and substation facilities, along with other engineering and technical services, including services that support the implementation of upgrades by utilities to modernize and harden the electric power grid in order to ensure its safety and enhance reliability and to accommodate increased residential and commercial use of electric vehicles (EVs); emergency restoration services, including the repair of infrastructure damaged by fires and inclement weather; energized installation, maintenance and upgrade of electric power infrastructure utilizing the company's bare hand and hot stick methods and its robotic arm techniques; installation of smart grid technologies on electric power networks; design and construction services to wireline and wireless communications companies, cable multi-system operators and other customers within the communications industry (including services in connection with 5G wireless deployment); design, installation, maintenance and repair services related to commercial and industrial wiring; and aviation services primarily for the utility industry, including the transportation of line workers, the setting of poles and towers, and the stringing of wires. This segment also includes the majority of the financial results of its advanced training facility and its postsecondary educational institution, which specializes in pre-apprenticeship training, apprenticeship training and specialized utility task training for electric workers, as well as training for the gas distribution and communications industries and its portion of earnings of its unconsolidated integral affiliates, which includes, among others, its 50% equity interest in LUMA Energy, LLC (LUMA), a joint venture that was selected to operate, maintain, and modernize the approximately 18,000-mile electric transmission and distribution system in Puerto Rico. Renewable Energy Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry. Services performed generally include: engineering, procurement, new construction, repowering and repair and maintenance services for renewable generation facilities, such as utility-scale wind, solar and hydropower generation facilities and battery storage facilities; and engineering and construction services for substations and switchyards, transmission and other electrical infrastructure needed to interconnect and transmit electricity from renewable energy generation and battery storage facilities. Underground and Infrastructure Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products. Services performed generally include: design, engineering, procurement, new construction, upgrade and repair and maintenance services for natural gas systems for gas utility customers; pipeline protection, integrity testing, rehabilitation and replacement services; catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services for the midstream and downstream industrial energy markets, as well as specialty cleaning and environmental solutions for the industrial energy and petrochemical markets; engineering and construction services for pipeline systems, storage systems and compressor and pump stations and the fabrication of pipeline support systems and related structures and facilities; trenching, directional boring and mechanized welding services related to the services described above; and engineering, construction and maintenance services for energy transition and carbon-reduction related projects, such as alternative fuel facilities, carbon capture systems and hydrogen facilities. Acquisitions In January 2024, the company acquired two businesses located in the United States including: a business that provides specialty environmental solutions to industrial companies (which will be primarily included in the Underground and Infrastructure segment) and a business that specializes in testing, manufacturing and distributing safety equipment and supplies (which will be primarily included in the Electric Power and Renewable Energy segments). During the year ended December 31, 2023, the company acquired five businesses located in the United States including: a business that provides services related to high-voltage transmission lines, overhead and underground distribution, emergency restoration and industrial and commercial wiring and lighting (primarily included in the Electric Power segment); a business that procures parts, assembles kits for sale, manages logistics and installs solar tracking equipment for utility and development customers (primarily included in the Renewable Energy segment); a business that provides concrete construction services (primarily included in the Electric Power and Renewable Energy segments); a business specializing in power studies, maintenance testing and commissioning primarily for utility and commercial customers (included in the Electric Power segment) and a business that manufactures power transformers for the electric utility, renewable energy, municipal power and industrial markets (included in the Electric Power and Renewable Energy segments). Customer Relationships The company has a large and diverse customer base, including many of the leading companies in the industries it serves, and it has developed strong strategic alliances with numerous customers and strive to develop and maintain its status as a preferred solutions provider to its customers. For the year ended December 31, 2023, the company's largest customer accounted for 6% of its consolidated revenues and its ten largest customers accounted for 31% of its consolidated revenues. Representative customers include American Electric Power Company, Inc.; ATCO Electric; Berkshire Hathaway, Inc.; CenterPoint Energy, Inc.; Comcast Corporation; Con Edison Development, Inc.; Duke Energy Corporation; EDF Renewables; Engie IR Holdings LLC; Entergy Corporation; Enterprise Products Partners L.P.; Exelon Corporation; FirstEnergy Corp.; Fortis Inc.; Invenergy LLC; Lower Colorado River Authority; National Grid plc; NextEra Energy, Inc.; Orsted US; Pattern Energy; PG&E Corporation; Puget Sound Energy, Inc.; Sempra Energy; The Southern Company; TC Energy Corporation; Trans Mountain Corporation; Valero Energy Corporation; and Xcel Energy Inc. The company's customers include utilities, renewable energy developers, communications, industrial and energy delivery companies, as well as governmental entities. The company has estimated revenues by customer type as a percentage of total revenues below. Such estimates are based on management judgment and assumptions and are provided to show perceived trends in the company's customer types and should be considered directional in nature. The customer types are described in detail as follows: Utility - Customers that are electric and gas utility companies. Industrial - Customers that own and/or operate downstream refinery, chemical and industrial facilities, as well as other commercial or manufacturing facilities; Energy Delivery - Customers that own and/or operate pipelines for the delivery of hydrocarbons; Renewable Energy Developers - Customers that develop, own and/or operate renewable energy solutions other than electric and gas utility companies; Communications - Customers that own and/or operate assets supporting delivery of data, communications and digital services; and Other - Customers that are not accurately described by the categories set forth above. Material Resources Equipment The company depends on the availability of a wide range of equipment to perform its services and operate a fleet of owned and leased trucks and trailers, as well as support vehicles and specialty construction and support equipment, such as bucket trucks, digger derricks, sidebooms, dozers, backhoes, excavators, trenchers, generators, boring machines, cranes, robotic arms, wire pullers, tensioners and helicopters. As of December 31, 2023, the total size of the fleet was approximately 71,000 units. Additionally, the company's ability to efficiently allocate equipment, including its vehicle fleet, across its operating companies may impact its ability to perform services and the profitability of its operations. As such, the company has invested, and continue to invest, significant resources and management attention to the utilization of its equipment. Project Materials The company and its customers depend on the availability of certain materials for construction, upgrade and repair and maintenance of their infrastructure, including among other things, steel, copper, aluminum, and components for renewable energy projects (e.g., solar panels, wind turbine blades). While its customers are typically responsible for supplying most or all of the materials required for the services the company performs on their projects, pursuant to certain of its contracts, including contacts for its comprehensive engineering, procurement and construction (EPC) services, it is required to procure all or part of the materials needed for a project. As it continues to expand its EPC services, customers are increasingly requesting that the company is responsible for procuring materials, and this trend is expected to continue to increase. Seasonality Typically, the company's revenues and results of operations can be subject to seasonal and other variations. These variations are influenced by, among other things, weather, customer spending patterns, bidding seasons, receipt of required regulatory approvals, permits and rights of way, project timing and schedules, and holidays. The company's revenues are generally lowest in the first quarter of the year because cold, snowy or wet conditions can create challenging working environments that are more costly for its customers or cause delays on projects. In addition, infrastructure projects often do not begin in a meaningful way until the company's customers finalize their capital budgets, which typically occurs during the first quarter (year ended December 31, 2023). Regulation The company's operations are subject to various federal, state, local and international laws and regulations, including licensing, permitting and inspection requirements applicable to contractors and engineers; regulations relating to worker safety (e.g., Occupational Safety and Health Administration regulations) and environmental protection; and wage and hour regulations (e.g., Fair Labor Standards Act) and regulations associated with its collective bargaining agreements and unionized workforce. History Quanta Services, Inc. was founded in 1997 in the state of Delaware. The company was incorporated in 1997.
