Back to top

Image: Bigstock

Quanta's (PWR) Arm Joins Newpoint Gas to Redevelop PORTS

Read MoreHide Full Article

J.W. Didado Electric, a subsidiary of Quanta Services, Inc. (PWR - Free Report) , teamed up with Newpoint Gas to help it redevelop the former U.S. Department of Energy’s Portsmouth Gaseous Diffusion Plant (PORTS) into an advanced hydrogen generation, decarbonization and combustion clean energy manufacturing facility.

J.W. Didado will provide electrical and grid services for the facility near Piketon, OH, as a design-assist and installation partner.

This $1.5-billion project, highlighting the h2Trillium Energy and Manufacturing (h2TEAM) Complex, will be a closed-loop manufacturing facility powered by clean hydrogen with carbon sequestration. During the peak of the construction phase, it will provide nearly 2,900 jobs and will produce clean silicon, ammonia, and power when finished.

J.W. Didado’s president, Dan Sublett, said, "We look forward to working with Newpoint and the other partners on this innovative and groundbreaking endeavor. Our parent company, Quanta Services, is an industry leader in clean energy projects and we are excited to lend our collective expertise and abilities to such an important project, one that will also create well-paying jobs for our union partners."

With more than 60 years’ experience in Ohio, J.W. Didado is well positioned to provide a highly-skilled union workforce, materials and electrical and grid construction expertise for this clean energy project.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of the company grew 2.93% on Sep 8, after the news release.

Electric Power Business, a Boon for Quanta

Electric Power operations continued to execute well from a top-line perspective.
The North America electric transmission and distribution markets are expected to be a key growth driver for the company. The region continues to deploy more capital for transmission and distribution upgrades to improve system reliability and deliver renewable electricity from new generation sources to the demand centers.

Segment revenues, which comprise revenues from base business activities, including communications operations, grew 24.2% in first-half 2022, 17.9% in 2021 and 9.1% in 2020 from the comparable year-ago period. Solid performance was backed by base business activities, courtesy of robust spending by electric utilities on grid modernization and infrastructure hardening, particularly in the western United States, as well as by gas utilities on distribution system modernization and safety programs.

As of Jun 30, 2022, the segment’s 12-month backlog was $6.38 billion (up from $5.56 billion a year ago) and the total backlog was $11.72 billion (up from $11.29 billion reported in the prior-year quarter). Prospects of the Electric Power segment remain robust, given customers’ investment in grid modernization programs intended to address the aging infrastructure, strengthen systems for resiliency against extreme weather conditions and support long-term economic growth.

Shares of this Zacks Rank #3 (Hold) company have broadly outperformed the industry in the year-to-date period.

Quanta banks on solid project execution strategy and three-pronged growth plan, which emphasizes timely delivery of projects to exceed customer expectation, leveraging the core business to expand in complementary adjacent service lines and consistently explore new service lines.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Few Better Ranked Stocks

Better ranked stocked in the Construction sector are Gibraltar Industries, Inc. (ROCK - Free Report) , Installed Building Products, Inc. (IBP - Free Report) and Janus International Group, Inc. (JBI - Free Report) , each carrying a Zacks Rank #2 (Buy).

Buffalo, NY-based Gibraltar manufactures and distributes products to the industrial and buildings market. The company has been benefiting from the three-pillar value creation strategy and robust Residential Products business. Also, the U.S. administration’s endeavor to boost renewable energy and infrastructure of the country and operational excellence are added positives. Its second quarter order backlog was up 5% because of robust end-market demand and new order activity across the business.

Gibraltar’s earnings for 2022 are expected to rise 19.4%.

Installed Building also carries a Zacks Rank #2 (Buy). The company is a leading installer of insulation and complementary building products. It primarily banks on a robust pipeline of acquisition opportunities across multiple geographies, products and end markets.

Installed Building’s earnings for 2022 are expected to rise 50.4%.

Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog level, impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.

Janus’ earnings for 2022 are expected to rise 11.3%.

Published in