Sector: Industrials | Focus: Construction & Engineering
HQ: Houston, Texas
Financial Risks
Quanta faces risks from market conditions (economic, political, interest rates, currency fluctuations), project delays/cancellations (supply chain issues, weather, regulatory changes, customer constraints), material cost fluctuations, customer payment issues (including bankruptcies), legal proceedings (lawsuits, arbitration, insurance coverage), and operational hazards (wildfires, accidents). Acquisitions pose integration risks and contingent liabilities. Seasonal fluctuations in revenue and project variability also present risks.
Financial Upside
Strong demand for infrastructure services, particularly in renewable energy and electric power, drives revenue growth. Recent acquisitions (including CEI) expand service offerings and potential synergies. Remaining performance obligations and backlog are increasing, indicating future revenue potential. Favorable debt financing (including senior notes) and cash flow from operations support growth and capital deployment.