To quickly quantify Quanta's services: This specialty contractor designs, installs, repairs, and maintains network infrastructure in the US and Canada. The company serves the electric, natural gas, oil pipeline, renewable energy, and telecommunications industries. Quanta, which was founded in 1997, also owns fiber optic telecommunications infrastructure. Quanta's other services include outsource management and other specialty work such as installing traffic and light rail control systems, directional drilling, and constructing wind and solar power facilities. More than 65% of the company's revenues come from its electric power infrastructure segment. It is exiting telecommunications infrastructure services.
Quanta typically expands through acquisitions. Most recently the company has been focusing on expanding its capabilities and growing internationally. In 2011 Quanta acquired Coe Drilling, a horizontal directional drilling company in Australia. Canada also has been a target for growth for Quanta. In another 2011 deal Quanta bought McGregor Construction, an electric power infrastructure services company in Canada. Also that year Quanta acquired two other smaller businesses based in British Columbia. Both mainly provided electric power infrastructure services. The deals enhanced Quanta's previous electric power acquisition of Valard Construction in Canada. In a retreat from telecommunications infrastructure services business, Quanta sold substantially all of its domestic telecommunications infrastructure services operations to Dycom Industries for $275 million. The sale allows Quanta to better focus on energy infrastructure.
Also in 2011 Quanta expanded its electric power infrastructure services in the US when it acquired Utilimap, a provider of geographic information system utility asset management services.
Several trends in the market place present Quanta with opportunities to grow. Demand for electricity in North America continues to increase. However, the electric power grid system is aging. Quanta is positioned to make system upgrades and demand for its services should increase.
Renewable energy such as wind and solar also presents opportunities for Quanta. As demand for those energy sources increases, so will demand for services such as transmission line installation and project management.
Quanta also sees potential for growth in the natural gas segment. Development of gas shale formations in North America has provided in an increase in supply of natural gas. More natural gas-fired power plants are expected to be built during the next two decades.
Quanta made an effort to grow in the natural gas sector when it acquired a 39% stake in Howard Midstream Energy Partners in 2011. The company owns, operates and constructs midstream oil and gas plant and pipeline facilities. The acquisition was made in order to position Quanta for more opportunities in the development of the Texas Eagle Ford shale region.
Quanta has experienced a steady increase in demand for its services as the economy slowly recovers. As more clients began to increase spending on infrastructure projects the company's revenues also grew. In 2011 Quanta reported more than $4.6 billion in revenues (an increase of about 18%). Net income fell in 2011 due to a charge related to a pension plan withdrawal and other tax-related settlements. – less