Our strategic imperatives are geared to deliver profitable growth and strike the right balance between our recurring business and larger projects.
Our Workforce Is Our Foundation
Safety & Training
Safety excellence is our number-one imperative. We can only execute for our customers when our people are safe, both on the job and at home, every hour of every day. We have built the largest skilled craft workforce in our industry because our people are trained to do the job correctly and safely. Personnel across our business lines receive world-class training at the Quanta Training Center. Our partnership with Sam Houston State University provides curriculum and field experience to develop our field leadership and project managers. And in early 2018, Quanta added to these industry-leading training programs and facilities by acquiring Northwest Lineman College (NLC), the preeminent school for developing electric power infrastructure services skills. We are expanding NLC’s curricula to include natural gas distribution and communications infrastructure services training.
Quanta Training Center
Our state-of-the-art training facility is located at our Lazy Q Ranch in La Grange, Texas. On our 2,300-acre campus, employees receive hands-on instruction from master trainers in a controlled environment, focusing on safety, skill development and certifications.Play Video
Northwest Lineman College
NLC is the leading educational and training institution for the electric power industry and instructed approximately 5,600 people in 2017. It is the largest organization that trains across the full lifespan of a line worker’s career, from pre-apprenticeship through experienced lineman. The school was founded in 1993 in Boise, Idaho, and has additional campuses in California, Florida and Texas.Play Video
Line School Development
The Quanta Training Center hosted its first electric line school class in the fall of 2017. The pre-apprentice program, lasting 15 weeks, graduated 43 students from more than 10 Quanta operating units. During the program, employees learn the fundamentals of electric linework, including climbing, rigging, transformers and distribution.
Sam Houston State University Partnership
Quanta’s partnership with Sam Houston State University (SHSU) started in 2016, establishing a business relationship and workforce development program. In addition to classroom course work, the program provides SHSU students hands-on experiences at the Quanta Training Center and summer internship opportunities. This relationship should help students develop job-specific skills, improve industry awareness and provide Quanta access to potential project managers and future leaders.
at the Lazy Q Ranch
Quanta’s core competencies are well established. We are the market leader in executing linear construction projects in the industries we serve. On this foundation we have built, with our Infrastructure Solutions model, additional offerings that can be utilized through strategic partnerships with customers and capital partners. These solutions are designed to be a growth engine for each of our segments and geographies and are a core component of our strategy to deliver differentiated solutions to customers.
Infrastructure Solutions Model
Provide Solutions Across the Entire Spectrum
Infrastructure Solutions Drivers
First Infrastructure Capital Capital
In 2017, we established First Infrastructure Capital, a strategic capital partnership between Quanta and select infrastructure investors with up to $1 billion of available capital, including $80 million from Quanta, for investments in concessions, public private partnerships and private infrastructure projects. This partnership is part of Quanta’s broader strategy to provide fully integrated, differentiated solutions to our customers by leveraging our operational excellence, strong execution capabilities and project finance expertise.
Targeted infrastructure projects include:
• Long-term equity investments with appropriate risk-adjusted returns
• Long-term off-take agreements • Creditworthy counterparties
Quanta generated record revenues and record adjusted earnings per share in 2017. Coupled with our strong balance sheet and liquidity position, we have the financial stability that customers can rely on.
Quanta ended the year with record backlog in excess of $11 billion. We believe there is opportunity to achieve record backlog again in 2018.
(1) A reconciliation of adjusted diluted earnings per share from continuing operations (a non-GAAP measure) is set forth herein.
(2) Liquidity includes cash and cash equivalents and availability under our revolving credit facility as described in our Form 10K.
As our customers’ capital programs increase in size, scope and complexity, many are seeking a longer-term relationship with Quanta to deliver projects safely, on time and on budget. From design and engineering to construction and installation and maintenance and replacement, the services Quanta provides can address all aspects of the infrastructure life cycle.
Across our operations we are expanding and enhancing our capabilities and the services we offer. This allows us to move up the value chain with our customers by providing the resources needed to achieve their infrastructure goals, ensure quality and safety and provide price and timeline certainty.
Through customer relationships, MSAs and alliances that often span decades, Quanta installs, repairs and maintains all parts of overhead and underground electric distribution systems, ranging from traditional line maintenance to technologically advanced solutions and services around a smart grid. This type of work occurs every day and provides a stable and growing foundation for our business.
In 2017, Quanta completed construction on a historically significant and geographically daunting 350 kV high-voltage transmission line through some of the world’s most challenging terrain in Newfoundland and Labrador, Canada. Spanning 1,100 kilometers (km), Quanta installed more than 3,000 towers and nearly 3,000 km of conductor, completed more than 4,300 foundations and erected 34,100 metric tons of steel.
Like electric power distribution, our natural gas distribution operations have long-lasting and extensive customer relationships. Local gas distribution companies have embarked on a multi-decade initiative to modernize old gas distribution infrastructure for improved safety and reliability. Whether designing and building a new gas distribution system, or upgrading or replacing an existing system, Quanta handles our customers’ most complex gas distribution needs.
Quanta is working on a large electric transmission and distribution EPC project for a California-based utility that is located primarily in a national forest area in southern California. Quanta’s scope of work for the project includes rebuilding and replacing approximately 145 miles of 12 and 69 kilovolt underground and overhead electric power infrastructure.
Quanta has provided critical services to the Gulf Coast processing industry for decades. Quanta strengthened its capabilities in 2017 through the acquisition of Stronghold, a market-leading downstream industrial services company. Our combined industrial services offering provides multiple platforms for future growth, including critical path services, storage tank construction and maintenance as well as high-voltage electric.
Our work on a natural gas pipeline project for Sabal Trail Transmission, LLC was completed in 2017. Quanta’s two spreads of work included the installation of 255 miles of 24-inch and 36-inch diameter pipeline and several horizontal directional drilling procedures in Alabama and Florida. This interstate pipeline was designed to provide natural gas transportation services to utilities in the Southeast United States.
In 2017, communities along the Gulf Coast experienced a hurricane season of historic and devastating proportions. Quanta quickly mobilized a workforce of 5,000 linemen to restore power in storm-ravaged areas. Many of our employees were away from their own impacted homes, families and communities while restoring power for others.
The major hurricanes and California wildfires of 2017 impacted many Quanta employees. A large number of our people live along the Gulf Coast, some of whom experienced significant property damage. In response, we created the Quanta Cares employee relief fund.
Through contributions from Quanta, employees, vendors and other partners, we raised more than $1.4 million to assist Quanta employees with recovering from these and other natural disasters. Additionally, hundreds of our employees were active in their communities after the storms helping neighbors and other Quanta employees. We say that Quanta is a family, and the way our employees helped others in need exemplifies the Quanta culture.