Quanta Services

This article is about the American infrastructure services corporation. For the Taiwanese hardware company, see Quanta Computer. For the airline, see Qantas.

Quanta Services is a U.S. corporation that provides infrastructure services for the electric power, pipeline, industrial and communications industries. Its capabilities include planning, design, installation, program management, maintenance and repair of most types of network infrastructure. In June 2009, Quanta Services was added to the S&P 500 index, replacing Ingersoll-Rand.^[5]

Quanta Services, Inc.

Company type	Public
Traded as	NYSE: PWR S&P 500 Component
Founded	1997
Headquarters	Williams Tower Houston, Texas
Key people	Earl C. Austin Jr. (CEO)
Revenue	$29.94 billion USD (Feb 2024)[1][2] $9.466 billion USD (2017)[3]
Number of employees	40,000
Website	quantaservices.com
Footnotes / references [4]

Quanta Services employs about 40,000. Its operating companies achieved combined revenues of about $20.9 billion (US)in 2023.^[6] It is headquartered in Houston, Texas. In 1998, Quanta went public on the New York Stock Exchange under the ticker symbol PWR.

History

Formation and early leadership

John R. Colson, founder and former executive chairman of Quanta Services, influenced the consolidation of the U.S. electrical contracting industry in the late 20th century. After earning a degree in geology from the University of Missouri–Kansas City, Colson served in the U.S. Army. Upon his discharge in 1971, he began his civilian career at PAR Electrical Contractors in Kansas City, Missouri, a firm specializing in high-voltage transmission lines, distribution lines, substations, and other electric utility infrastructure services. Colson advanced within PAR. In three years, he was promoted to manager of engineering services; then became vice president of operations. By the early 1980s, Colson was executive vice president and general manager. In the 1980s, he acquired ownership of PAR, becoming its president in 1991.^[7]

During this period, the U.S. electrical contracting sector was highly fragmented, comprising approximately 50,000 predominantly small, owner-operated enterprises. Recognizing the potential for greater efficiency and competitiveness through consolidation, Colson initiated a strategic merger. In 1997, he successfully combined PAR with three other regional contractors—Union Power Construction Co., Trans Tech Electric Inc., and Potelco Inc.—to form Quanta Services, headquartered in Houston, Texas.^[8][9][10]

Initial public offering

In February 1998, with BT Alex Brown Incorporated as underwriters, Quanta completed its initial public offering (IPO), raising $45 million.^[11] In July 2000, using Morgan Stanley Dean Witter, the company offered an additional 2.72 million shares for sale.^[12] Acquired telecom companies included Manuel Brothers, Smith Contracting, Telecom Network Specialists, North Pacific Construction Company, NorAm Telecommunications, Spalj Construction Company and Golden State Utility Company. Acquired electric contractors included Harker & Harker, Sumter Builders and Environmental Professional Associates. Hybrid acquisitions included Wilson Roadbores and Underground Construction Company.

UtiliCorp takeover bid

In 2001, UtiliCorp United Inc. (now Aquila, Inc.), an energy company with whom PAR had been doing business since the 1950s, attempted a takeover of Quanta.^[13] UtiliCorp owned about 36% of Quanta, an investment that was originally part of a strategic alliance when UtiliCorp outsourced all of its maintenance needs to Quanta. Quanta resisted, and in October 2001, the two parties signed a standstill agreement. A month later Quanta adopted a "poison pill" plan to prevent a takeover, prompting UtiliCorp to sue. A proxy fight ensued in the spring of 2002. Quanta maintained that UtiliCorp, which was enduring difficult times, wanted to gain controlling interest in order to consolidate Quanta's earnings with its own balance sheet. The fight came to an end in May 2002, as Quanta fended off the takeover bid.^[14]

Sale of telecommunication and fiber-optic licensing divisions

On November 20, 2012, Quanta Services sold its telecommunications subsidiaries for $275 million in cash to Dycom. On August 4, 2015, Quanta Services sold its fiber optic licensing operations (Sunesys) to Crown Castle International Corp. (NYSE: CCI) for approximately $1 billion in cash.

Acquisitions

On August 30, 2007, Quanta Services acquired InfraSource Services through an all-stock deal. Before the merger, Engineering News-Record ranked Quanta Services as the second-largest specialty contractor in the United States and InfraSource Services as No. 8.^[15] This acquisition received popular attention after being given positive coverage on Jim Cramer's Mad Money show,^[16] in Smart Money^[17] and in TheStreet.^[18]

In September 2009, Quanta Services announced that a deal had been struck to acquire Price Gregory, the largest U.S. gas pipeline construction company, for $350 million.^[19] With this acquisition, Quanta Services was expected to have consolidated 2009 revenue of $4.4 billion.

On October 22, 2010, Quanta Services announced an agreement to acquire Canada's largest electric power line contractor, Valard Construction, for approximately $219 million.^[20]

On September 2, 2021, Quanta Services announced that it entered into a definitive agreement to acquire Blattner Holding Company (Blattner), one of the largest and leading utility-scale renewable energy infrastructure solutions^[buzzword] providers in North America, for $2.7 billion in stock and cash. Blattner generated full-year 2020 revenues and adjusted EBITDA (a non-GAAP measure) of approximately $2.4 billion and $291 million, respectively.^[21] In August 2022, Quanta purchased William E. Groves Construction Inc. of Madison, KY.^[22]

Leadership

On March 14, 2016, Earl C. “Duke” Austin succeeded former chief executive officer Jim O’Neil. Austin is currently president, chief executive officer and chief operating officer. He is a graduate of Sam Houston State University in Huntsville, Texas, and the former president of Quanta's Operating Unit: North Houston Pole Line.^[23]

On April 2, 2012, Derrick A. Jensen succeeded former chief financial officer James H. Haddox. Jensen is a graduate of Oklahoma State University. ^[24]

Lower Rio Grande Valley Energized Reconductor Project

On June 13, 2016, American Electric Power (AEP) received the 89th annual Edison Electric Institute's (EEI's) 2016 Edison Award, the electric power industry's most prestigious honor, for its Energized Reconductor Project in the Lower Rio Grande Valley (LRGV) of Texas. The 240 mile project was possible because of Quanta Energized Services (QES) live-line planning capabilities and North Houston Pole Line's construction expertise.^[25]