The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Quanta Services (PWR) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.Quanta Services is one of 90 individual stocks in the Construction sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank includ ...

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Quanta Services (PWR) is identified as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates as a specialty contractor for utility and energy companies, making it a strong growth pick [3] Group 2: Earnings Growth - Quanta Services has a historical EPS growth rate of 23.2%, with projected EPS growth of 14.8% this year, surpassing the industry average of 11% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Quanta Services is 24.6%, significantly higher than the industry average of 12.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 21.9%, compared to the industry average of 7.6% [6] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for Quanta Services have been revised upward, with the Zacks Consensus Estimate increasing by 1% over the past month [8] Group 5: Investment Positioning - Quanta Services holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the market [10]

Core Viewpoint - Quanta Services (PWR.US) experienced a significant stock price increase of 9.3% following the release of its first-quarter earnings report, which exceeded market expectations and led to an upward revision of its annual performance guidance [1][2] Group 1: Earnings Report Highlights - For the first quarter, Quanta reported revenues of $6.2 billion, surpassing analyst expectations of $5.9 billion [2] - Adjusted diluted earnings per share were $1.78, exceeding Wall Street's forecast of $1.67 [2] - The company's operations are divided into two main segments: the Power segment, which serves renewable energy, technology, and communications clients, and the Underground and Infrastructure segment, which focuses on the oil and gas industry [2] Group 2: Annual Guidance and Future Outlook - Despite macroeconomic challenges, Quanta's management remains cautiously optimistic and has raised its full-year performance expectations [3] - The company anticipates full-year net revenues for fiscal year 2025 to be between $26.7 billion and $27.2 billion, with adjusted earnings per share expected to range from $10.05 to $10.65, both higher than previous forecasts [3] - Quanta currently holds a record backlog of $35.3 billion in uncompleted orders, providing a solid foundation for future growth [3] - The company received upgrades in its long-term and short-term issuer credit ratings from S&P Global, which is expected to help reduce financing costs and enhance financial resilience [3]

Core Insights - Quanta Services reported a revenue of $6.23 billion for the quarter ended March 2025, marking a year-over-year increase of 23.9% and an EPS of $1.78, up from $1.41 a year ago, with revenue exceeding Zacks Consensus Estimate by 6.11% and EPS by 7.23% [1] Financial Performance - Total backlog reached $35.25 billion, surpassing the average estimate of $34.19 billion [4] - Backlog for Underground Utility and Infrastructure Solutions was $5.55 billion, slightly below the average estimate of $5.67 billion [4] - Backlog for Electric Power Infrastructure Solutions stood at $29.70 billion, exceeding the average estimate of $28.52 billion [4] - Revenues from Underground Utility and Infrastructure Solutions were $1.29 billion, above the six-analyst average estimate of $1.19 billion, reflecting a year-over-year change of +15% [4] - Revenues from Electric Power Infrastructure Solutions were $4.94 billion, exceeding the estimated $4.69 billion and representing a significant year-over-year increase of +112.5% [4] Operating Income - Operating income for Underground Utility and Infrastructure Solutions was $76.87 million, compared to the estimated $63.10 million [4] - Operating income for Electric Power Infrastructure Solutions was $408.16 million, above the average estimate of $391.20 million [4] - Corporate and non-allocated costs reported an operating loss of -$245.95 million, slightly worse than the average estimate of -$237.67 million [4] Stock Performance - Quanta Services shares returned +10.6% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Consolidated revenues for the first quarter of 2025 increased to $6.23 billion, a 23.9% increase compared to $5.03 billion in the first quarter of 2024[139] - Operating income rose to $239.1 million, reflecting a 53.9% increase from $155.4 million in the prior year[139] - Adjusted EBITDA for the three months ended March 31, 2025 was $503,886, up from $387,254 in the same period of 2024, reflecting a significant operational improvement[156] - Comprehensive income attributable to common stock increased by $56.9 million, driven by a $22.9 million increase in net income and a $30.3 million increase related to foreign currency translation adjustments[146] Cash Flow and Investments - Net cash provided by operating activities was $243.2 million, a 2% increase compared to the same period in 2024[128] - The company reported net cash used in investing activities of $520.6 million for the three months ended March 31, 2025, which included $394.3 million related to acquisitions[173] - The company utilized $394.3 million in cash for strategic acquisitions, alongside $118.6 million for stock repurchases and $15.5 million in dividends[128] - Net cash provided by financing activities for the three months ended March 31, 2025 was $52.4 million, primarily due to borrowings under the commercial paper program[178] Segment Performance - The Electric segment saw a revenue increase of $1.03 billion, while the Underground and Infrastructure segment experienced a $168.2 million revenue increase[139] - The Electric segment reported revenues of $4,944,391, a 26.4% increase from $3,911,124 in the prior year, primarily due to approximately $790 million in revenues from acquired businesses[149][150] - The Underground and Infrastructure segment reported revenues of $1,288,943, a 15.0% increase from $1,120,695 in the prior year, attributed to increased demand for industrial solutions[149][152] Backlog and Future Outlook - Remaining performance obligations and backlog were $17.65 billion and $35.25 billion as of March 31, 2025, representing increases of 5.3% and 2.1% respectively from December 31, 2024[129] - The company anticipates continued strong demand for its services, driven by trends in electrification and domestic manufacturing reshoring initiatives[126] - The backlog as of March 31, 2025 was $19,420,259, an increase from $19,771,937 as of December 31, 2024, indicating strong future revenue potential[161] Expenses and Amortization - Selling, general and administrative expenses increased by $91.6 million, primarily due to recent acquisitions and increased compensation expenses[141] - Amortization of intangible assets rose by 41.4% to $109.6 million, driven by recent acquisitions, particularly Cupertino Electric Inc.[142] - Corporate and non-allocated costs increased by $32.1 million due to higher intangible asset amortization expenses associated with recent acquisitions[154] Tax and Financial Ratios - The effective income tax rate for the three months ended March 31, 2025 was 21.1%, up from 14.3% in 2024, primarily due to a lower tax benefit from equity incentive awards[145] - Days sales outstanding (DSO) improved to 63 days as of March 31, 2025, down from 71 days as of March 31, 2024[174] Acquisitions - During the three months ended March 31, 2025, the company completed the acquisition of two businesses for a total cash consideration of $394.3 million[165] - For the year ended December 31, 2024, the company completed the acquisition of eight businesses for a total cash consideration of $1.75 billion[166] Capital Expenditures - The company expects substantial capital expenditures and commitments for equipment purchases to meet anticipated demand for its services[177] - The company plans to continue utilizing cash for financing activities, including debt repayments and stock repurchases[180] - The company maintains a conservative investment policy regarding cash and cash equivalents, with a diverse portfolio of high-quality investments[170]

Quanta Services (PWR) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.66 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.23%. A quarter ago, it was expected that this specialty contractor for utility and energy companies would post earnings of $2.64 per share when it actually produced earnings of $2.94, delivering a surprise of 11.3 ...

Financial Data and Key Metrics Changes - The company reported revenues of $6.2 billion, net income attributable to common stock of $144 million, or $0.96 per diluted share, and adjusted diluted earnings per share of $1.78 [10] - Adjusted EBITDA was $504 million, representing 8.1% of revenues [10] - The company generated cash flow from operations of $243 million and free cash flow of $118 million, which included a $109 million tax payment deferred from 2024 [10] - The company increased its full-year 2025 expectations for revenue by $100 million, adjusted EBITDA by $10 million, and adjusted earnings per share by $0.05 [12] Business Line Data and Key Metrics Changes - The company emphasized its core strategy built on craft skill labeling, execution certainty, and strategic investments in talent and technology [6][7] - The company highlighted robust demand for resilient electric grids, power generation, and energy infrastructure, indicating a strong growth trajectory across its business lines [8][9] Market Data and Key Metrics Changes - Utilities in the United States are experiencing significant increases in power demand driven by new technologies, including data centers and artificial intelligence [9] - The company believes this demand surge could lead to the largest investment in high voltage transmission infrastructure in a generation [9] Company Strategy and Development Direction - The company aims to reinforce its leadership position through a diversified solution-based strategy that integrates craft labor with engineering and technology [7] - The company is focused on delivering comprehensive infrastructure solutions and creating deeper strategic relationships with customers [8] - The management expressed confidence in navigating periods of uncertainty and emerging stronger due to its financial liquidity and strategic execution [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the energy and infrastructure landscape is undergoing a fundamental transformation, positioning the company at its center [8] - The company is proactively collaborating with customers to provide supply chain solutions focused on cost optimization and growth [13] - Management remains confident in the multiyear compound annual growth rate (CAGR) expectations for renewable energy generation and storage [14] Other Important Information - The company repurchased approximately $135 million of its common stock, with $365 million remaining under its existing repurchase authorization [14] - The company received credit upgrades from S&P Global Ratings, which are expected to lower borrowing costs and expand liquidity [12] Q&A Session Summary Question: Impact of Long Island Power Authority's decision on guidance - Management indicated that the decision was not anticipated in their guidance [25][26] Question: Expansion of high voltage transmission projects - Management confirmed ongoing firm demand for transmission projects and expects continued backlog growth despite macro uncertainties [30][34] Question: Impact of tariffs on customers - Management stated that they have not seen significant impacts from tariffs within their customer base and believe their portfolio can weather potential disruptions [39][40] Question: Status of interconnection work and backlog - Management noted steady growth in construction starts for renewables and expressed confidence in their backlog [49][50] Question: Strategic benefits from supply chain access - Management highlighted the importance of internal supply chain capabilities and their ability to provide better solutions to clients [90][91] Question: Growth in data centers and underground business - Management acknowledged opportunities in large diameter pipe and natural gas projects, indicating a positive outlook for these segments [132]

Financial Data and Key Metrics Changes - The company reported revenues of $6.2 billion, net income attributable to common stock of $144 million, or $0.96 per diluted share, and adjusted diluted earnings per share of $1.78 [10] - Adjusted EBITDA was $504 million, representing 8.1% of revenues [10] - The company generated cash flow from operations of $243 million and free cash flow of $118 million, which included a $109 million tax payment deferred from 2024 [10] - Full year 2025 expectations for revenue were increased by $100 million, adjusted EBITDA by $10 million, and adjusted earnings per share by $0.05 [11][12] Business Line Data and Key Metrics Changes - The company emphasized strong growth in its core markets, particularly in renewable energy generation and storage, with a focus on solar and battery projects [13][118] - The backlog reached a record of $35.3 billion, indicating robust demand across various sectors [5][10] - The company is actively engaged in providing solutions for power generation, including solar, wind, and storage, with a noted increase in solar bookings [118] Market Data and Key Metrics Changes - Utilities in the U.S. are forecasting significant increases in power demand driven by new technologies and infrastructure needs [9] - The company highlighted the potential for the largest investment in high voltage transmission infrastructure in a generation, driven by the need for resilient electric grids [9] - The company noted that demand for renewable energy generation and storage remains strong, with expectations for continued growth in these areas [13][118] Company Strategy and Development Direction - The company's core strategy focuses on execution certainty, investment discipline, and a differentiated platform that integrates craft labor with engineering and technology [6][8] - The company aims to strengthen customer partnerships and drive long-term sustainable value creation through strategic investments [6][8] - The management emphasized a collaborative model that positions the company as a trusted partner rather than just a contractor [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and emerge stronger due to its diversified solution-based strategy [8] - The company is proactively collaborating with customers to optimize costs and manage supply chain challenges [12] - Management indicated that the business is well-positioned for sustained leadership and long-term growth in the evolving energy and infrastructure landscape [9] Other Important Information - The company has repurchased approximately $135 million of its common stock, with $365 million remaining under its existing repurchase authorization [13] - The company received credit upgrades from S&P Global Ratings, which are expected to lower borrowing costs and expand liquidity [11] Q&A Session Summary Question: Impact of Long Island Power Authority's decision on guidance - Management clarified that the decision was not anticipated in their guidance for the year [18][23] Question: Expansion of high voltage transmission projects - Management confirmed ongoing demand for transmission infrastructure and expects continued backlog growth despite macro uncertainties [27][31] Question: Impact of tariffs on customers - Management stated that they have not seen significant impacts from tariffs on their customer base and believe their portfolio can weather potential disruptions [35][36] Question: Interconnection work related to coal plants - Management acknowledged the potential for interconnection work but emphasized that they see ample projects available regardless of coal plant status [45][49] Question: Margin expectations with larger projects - Management indicated that while margins may not see immediate upward momentum due to training costs, they expect returns to improve as the business scales [54][56] Question: Status of Cupertino acquisition and synergies - Management reported that the Cupertino business is ahead of schedule and is expected to generate significant synergies moving forward [58][60] Question: Visibility of larger projects in backlog - Management noted that larger projects are becoming increasingly visible and expects them to show up in the backlog soon [62][64] Question: Strategic benefits from supply chain access - Management highlighted the importance of internal supply chain capabilities and their role in providing better solutions to clients [86][90]

Exhibit 99.1 FOR IMMEDIATE RELEASE 25-05 Repurchased Approximately $135 Million of its Outstanding Common Stock | Contacts: | Jayshree Desai, CFO | Media – Noa Schwartz | | --- | --- | --- | | | Kip Rupp, CFA, IRC - Investors | FGS Global | | | Quanta Services, Inc. | (310) 405-4312 | | | (713) 629-7600 | | QUANTA SERVICES REPORTS FIRST QUARTER 2025 RESULTS First Quarter Consolidated Revenues of $6.2 Billion* First Quarter GAAP Diluted EPS of $0.96* and Adjusted Diluted EPS of $1.78* Net Income Attributable ...

Core Insights - Quanta Services reported strong first quarter results for 2025, with revenues of $6.23 billion, a significant increase from $5.03 billion in the same period of 2024, reflecting robust double-digit growth [1][2] - The company achieved a net income attributable to common stock of $144.3 million, or $0.96 per diluted share, compared to $118.4 million, or $0.79 per diluted share, in the first quarter of 2024 [1][2] - Adjusted diluted earnings per share rose to $1.78 from $1.41 year-over-year, indicating improved profitability across segments [1][2] Financial Performance - First quarter adjusted EBITDA was reported at $503.9 million, with cash flow from operations of $243.2 million and free cash flow of $117.8 million [1] - The remaining performance obligations (RPO) stood at $17.6 billion, while total backlog reached a record $35.3 billion, showcasing strong demand for Quanta's services [1][2] - The company repurchased approximately $135 million of its outstanding common stock during the quarter, reflecting confidence in its financial position [1][11] Segment Performance - Quanta operates under two reportable segments: Electric Infrastructure Solutions and Underground Utility and Infrastructure, with the Electric segment generating $4.94 billion in revenues, up from $3.91 billion in 2024 [25][26] - The Underground and Infrastructure segment reported revenues of $1.29 billion, an increase from $1.12 billion in the previous year [26] - Both segments demonstrated improved operating income margins, with Electric at 8.3% and Underground at 6.0% for the first quarter of 2025 [26] Strategic Outlook - The company raised its full-year 2025 revenue, adjusted EBITDA, and adjusted EPS expectations, indicating a positive outlook despite macroeconomic uncertainties [2][10] - Quanta's strategic focus on expanding service lines and maintaining a customer-centric approach is expected to drive future growth [3] - The company is actively managing supply chain risks and collaborating with customers to optimize costs amid trade tariff impacts [6][7] Recent Developments - Quanta was selected for a significant electric transmission upgrade project by the Los Angeles Department of Water and Power, further enhancing its project backlog [4][5] - The company received credit rating upgrades from S&P Global Ratings, which are anticipated to lower borrowing costs and expand liquidity options [11] - Quanta's proactive measures in supply chain management and strategic acquisitions are expected to bolster its competitive position in the market [3][11]