Quanta Services, Inc. (NYSE:PWR) Q1 2018 Earnings Conference Call Transcript
May 03, 2018 • 09:00 am ET
This year is off to a good start, and we are pleased with our results. First quarter revenues were a record $2.4 billion in GAAP, and adjusted diluted earnings per share were $0.24 and $0.40, respectively. We ended the quarter with record 12-month and total backlog for each of our segments and had record consolidated backlog of approximately $11.7 billion, which we believe supports our expectations for this year and bodes well for opportunities for multi-year growth. As a result of our solid first quarter results, strengthening in markets and confidence in our ability to safely execute, we have raised our full year revenue and earnings per share expectations for 2018.
Our Electric Power operations executed well in the first quarter, from both a top line and margin perspective. The strong performance was driven by solid execution across our operations, and we are particularly pleased with our execution in Canada through the winter season.
Additionally, we performed emergency restoration services during the first quarter in response to several severe winter storms. This work helped offset adverse work conditions on projects for both Electric Power, and Oil and Gas operations, caused by these storms. This is a good example of how Quanta's diverse services and geographic presence can mitigate risk from severe weather events to our overall results.
We continue to have a positive near and long-term outlook for our Electric Power segment because of our customers' multiyear, capital budgets continue to increase, and should remain robust for some time. Demand for our base business work is strong. Small and medium transmission and substation projects as well as distribution work remain active, and large multiyear MSA proposal activity is at high levels.
The low prices for an abundance of natural gas, the impact of tax reform and other favorable policy initiatives, are spurring plans to increase manufacturing and industrial activity in the United States, which should yield increasing demand for power in certain parts of the country. The industrial market is a large user of power, and it's expansion is creating demand for base business work and larger transmission projects. The number of opportunities for larger transmission projects is increasing, with several larger projects, including the Wind Catcher Generation Tie Line making positive regulatory progress and getting closer to construction. Note that we do not have the Wind Catcher project in our backlog.
We believe our end markets are strengthening and continue to believe we are in earlier stages of an upper multiyear cycle. Long-term end market drivers such as the maintenance and replacement of aging infrastructure, generation mix shifting to more renewables and natural gas, grid modernization, and regulation aimed at improving greater liability, remain in place and are what we believe will continue to provide opportunities to grow our Electric business.
We are able to provide comprehensive turnkey solutions for these multiyear capital programs that we believe are unmatched in the industry. As we have said in the past, we believe we are uniquely positioned to provide solutions