Quanta Services raised its annual revenue and profit forecasts on Thursday, encouraged by strong demand for its construction and engineering services from the renewable energy and electric power industries.
With companies increasingly tapping into new technologies and federal and state policies pushing for an accelerated shift to clean energy, demand for electric power infrastructure has grown in the United States.
Growing internet traffic and cloud computing, coupled with heavy investments in artificial intelligence technologies, have also powered the development of data centers which are power-intensive and require better grid capacity, boosting demand for Quanta’s services.
The growing adoption of EVs as well as increasing electrification in building sectors through the usage of heat pumps and boilers have also boosted the company’s revenues.
‘Momentum building’
The company’s total revenue rose 13.5% from the previous year to $5.03 billion in the quarter, beating analysts’ average estimates of $4.94 billion, according to LSEG data.
“Utilities across the United States are experiencing and forecasting meaningful increases in power demand for the first time in many years … There is momentum building across our portfolio of solutions,” said Quanta CEO Duke Austin.
Quanta, which counts companies including AT&T, Verizon, BP and Southwest Gas among its customers, said it now expects full-year 2024 revenues between $22.50 billion and $23 billion, compared with $22.25 billion to $22.75 billion estimated previously.
Analysts on average expect revenue of $22.59 billion.
The Houston, Texas-based company projected annual adjusted earnings per share to range between $8.15 and $8.65, up from its prior forecast of $8.00 to $8.50. Analysts on average expect $8.35.
