v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information
4. SEGMENT INFORMATION:
Quanta reports its results under three reportable segments described below:
•Electric Power Infrastructure Solutions (Electric Power). Quanta’s Electric Power segment provides comprehensive infrastructure solutions to customers in the electric power, technology and communications markets.
•Renewable Energy Infrastructure Solutions (Renewable Energy). Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry.
•Underground Utility and Infrastructure Solutions (Underground and Infrastructure). Quanta’s 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.
Corporate and Non-allocated Costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairment related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.
Quanta’s segment results are derived from the types of services provided across its operating companies in each of its end user markets. Quanta’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. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management.
In addition, integrated operations and common administrative support for Quanta’s operating companies require that allocations be made to determine segment profitability, including allocations of certain corporate shared and indirect operating costs as well as general and administrative costs.
The following table sets forth segment revenues and segment operating income (loss) for the three and nine months ended September 30, 2024 and 2023. Operating margin is calculated by dividing operating income (loss) by revenues. The following table shows dollars in thousands:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Revenues:  
Electric Power
$2,982,032 45.9 %$2,489,547 44.3 %$7,761,480 45.3 %$7,240,838 48.0 %
Renewable Energy
2,251,855 34.7 1,746,636 31.1 5,870,411 34.3 4,144,304 27.4 
Underground and Infrastructure
1,259,280 19.4 1,384,639 24.6 3,487,482 20.4 3,713,116 24.6 
Consolidated revenues$6,493,167 100.0 %$5,620,822 100.0 %$17,119,373 100.0 %$15,098,258 100.0 %
Operating income (loss):
  
Electric Power (1)
$354,505 11.9 %$296,176 11.9 %$846,390 10.9 %$755,342 10.4 %
Renewable Energy
221,509 9.8 %151,389 8.7 %459,076 7.8 %297,532 7.2 %
Underground and Infrastructure
93,956 7.5 %123,764 8.9 %222,437 6.4 %292,544 7.9 %
Corporate and Non-Allocated Costs (2)
(238,809)(3.7)%(171,000)(3.0)%(634,158)(3.7)%(539,956)(3.6)%
Consolidated operating income$431,161 6.6 %$400,329 7.1 %$893,745 5.2 %$805,462 5.3 %
(1)    Includes equity in earnings of integral unconsolidated affiliates of $14.0 million and $11.7 million for the three months ended September 30, 2024 and 2023 and $34.9 million and $30.7 million for the nine months ended September 30, 2024 and 2023, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA).
(2)    Includes amortization expense of $110.4 million and $71.4 million and non-cash stock-based compensation of $38.2 million and $32.5 million for the three months ended September 30, 2024 and 2023. Includes amortization expense of $267.1 million and $213.8 million and non-cash stock-based compensation of $110.8 million and $94.6 million for the nine months ended September 30, 2024 and 2023.
Depreciation Expense
Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Certain of Quanta’s fixed assets are used on an interchangeable basis across its reportable segments. The following table sets forth depreciation expense by segment for the three and nine months ended September 30, 2024 and 2023. The table shows dollars in thousands:
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Depreciation:
Electric Power
$42,120 $38,228 $122,775 $121,670 
Renewable Energy
20,619 15,812 58,298 37,351 
Underground and Infrastructure
21,414 23,940 64,144 63,575 
Corporate and Non-Allocated Costs5,826 3,508 17,308 17,150 
Consolidated depreciation$89,979 $81,488 $262,525 $239,746