Core Insights - Quanta Services reported revenue of $6.77 billion for the quarter ended June 2025, marking a year-over-year increase of 21.1% and an EPS of $2.48 compared to $1.90 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance - The reported revenue of $6.77 billion surpassed the Zacks Consensus Estimate of $6.55 billion by 3.34%, while the EPS of $2.48 exceeded the consensus estimate of $2.43 by 2.06% [1] - Quanta Services' stock has returned +10.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change, and currently holds a Zacks Rank 3 (Hold) [3] Backlog and Revenue Breakdown - Total backlog stands at $35.84 billion, slightly below the two-analyst average estimate of $36.11 billion [4] - Backlog for Underground Utility and Infrastructure Solutions is $5.56 billion, exceeding the $5.42 billion average estimate [4] - Backlog for Electric Power Infrastructure Solutions is $30.28 billion, below the $30.69 billion estimated by two analysts [4] - Revenues from Underground Utility and Infrastructure Solutions reached $1.31 billion, slightly above the six-analyst average estimate of $1.3 billion, reflecting an 18.7% year-over-year change [4] - Revenues from Electric Power Infrastructure Solutions were $5.46 billion, surpassing the $5.25 billion estimate and showing a significant year-over-year increase of 122.6% [4] Operating Income Analysis - Operating income for Electric Power Infrastructure Solutions was reported at $552.62 million, exceeding the $528.34 million average estimate [4] - Operating income for Underground Utility and Infrastructure Solutions was $90.7 million, slightly below the $95.1 million average estimate [4] - Corporate and non-allocated costs reported an operating loss of $273.04 million, worse than the five-analyst average estimate of $-227.74 million [4]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Quanta Services' unaudited condensed consolidated financial statements and related notes for the period ended June 30, 2025 [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Total assets increased to **$19.89 billion** by June 30, 2025, with Q2 2025 revenues reaching **$6.77 billion** and net income **$229.3 million**, while operating cash flow decreased to **$538.9 million** for the first six months Financial Position (in billions) | Financial Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $8.18B | $7.85B | | Total Assets | $19.89B | $18.68B | | Total Current Liabilities | $5.98B | $6.03B | | Total Liabilities | $12.02B | $11.35B | | Total Equity | $7.87B | $7.33B | Consolidated Results of Operations (in millions/billions, except per share) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $6.77B | $5.59B | $13.01B | $10.63B | | Gross Profit | $1.01B | $811.33M | $1.84B | $1.43B | | Operating Income | $370.28M | $307.23M | $609.36M | $462.58M | | Net Income Attributable to Common Stock | $229.25M | $188.16M | $373.51M | $306.52M | | Diluted EPS | $1.52 | $1.26 | $2.47 | $2.05 | Consolidated Cash Flows (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $538.91M | $629.27M | | Net Cash Used in Investing Activities | ($980.55M) | ($589.26M) | | Net Cash Provided by (Used in) Financing Activities | $186.75M | ($806.30M) | | Net Decrease in Cash | ($233.26M) | ($773.29M) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail Quanta's accounting policies, including revenue recognition, segment reporting changes, significant acquisitions, debt obligations, equity transactions, and legal contingencies like the Silverado Wildfire matter - Beginning in Q1 2025, Quanta changed its reportable segments to **Electric Infrastructure Solutions** and **Underground Utility and Infrastructure Solutions**, with prior period amounts recast to conform to this new structure[54](index=54&type=chunk) - During the first six months of 2025, Quanta acquired four businesses for approximately **$599.3 million** in cash and **515,822 shares** of common stock valued at **$161.6 million**[65](index=65&type=chunk) - Quanta is involved in litigation related to the 2020 Silverado Fire, with subsidiaries asked for defense and indemnification by Southern California Edison, but no accrual has been recorded as insurance coverage is believed to be adequate[120](index=120&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, highlighting increased demand in Electric and Underground & Infrastructure segments, consolidated and segment results, non-GAAP measures, and liquidity, driven by grid modernization and acquisitions [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q2 2025 consolidated revenues increased **21.1%** to **$6.77 billion**, with gross profit up **24.2%** to **$1.01 billion** and operating income growing **20.5%** to **$370.3 million**, reflecting strong performance across segments Consolidated Results for Q2 (in millions/billions) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $6.77B | $5.59B | $1.18B | 21.1% | | Gross Profit | $1.01B | $811.33M | $196.24M | 24.2% | | Operating Income | $370.28M | $307.23M | $63.05M | 20.5% | | Net Income Attributable to Common Stock | $229.25M | $188.16M | $41.09M | 21.8% | Consolidated Results for H1 (in millions/billions) | Metric | H1 2025 | H1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $13.01B | $10.63B | $2.38B | 22.4% | | Gross Profit | $1.84B | $1.43B | $406.79M | 28.4% | | Operating Income | $609.36M | $462.58M | $146.78M | 31.7% | | Net Income Attributable to Common Stock | $373.51M | $306.52M | $66.99M | 21.9% | [Segment Results](index=39&type=section&id=Segment%20Results) Q2 2025 saw the Electric segment's revenue grow **21.6%** to **$5.46 billion** and operating income rise **29.5%** to **$552.6 million**, while the Underground and Infrastructure segment's revenue increased **18.7%** to **$1.31 billion** Segment Performance (Q2 2025 vs Q2 2024) | Segment | Revenue | Operating Income | | :--- | :--- | :--- | | **Electric** | $5.46B (+21.6%) | $552.6M (+29.5%) | | **Underground and Infrastructure** | $1.31B (+18.7%) | $90.7M (+11.2%) | - The Electric segment's revenue growth was primarily due to approximately **$750 million** from acquired businesses and increased service demand[173](index=173&type=chunk) - The Underground and Infrastructure segment's revenue growth was driven by about **$105 million** from acquisitions and higher service demand[175](index=175&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q2 2025 Adjusted EBITDA at **$668.8 million**, up from **$523.2 million** in Q2 2024, and total backlog increased to **$35.84 billion** by June 30, 2025, reflecting strong project awards and acquisitions Non-GAAP Performance Metrics (in millions/billions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Stock | $229.25M | $188.16M | $373.51M | $306.52M | | EBITDA | $589.39M | $475.21M | $1.04B | $817.12M | | Adjusted EBITDA | $668.76M | $523.23M | $1.17B | $910.48M | Backlog (in billions) | Backlog | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Remaining Performance Obligations | $19.16B | $16.76B | | Total Backlog | $35.84B | $34.54B | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Quanta's total liquidity was **$2.64 billion**, with key cash uses in H1 2025 including **$586.1 million** for acquisitions and **$273.1 million** for capital expenditures, while operating cash flow decreased to **$538.9 million** Total Liquidity (in millions/billions) | Liquidity Component | June 30, 2025 | | :--- | :--- | | Available commitments for revolving loans, etc. | $2.13B | | Cash and cash equivalents | $509.46M | | **Total Liquidity** | **$2.64B** | - Key uses of cash in H1 2025 included **$586.1 million** for acquisitions, **$273.1 million** for capital expenditures, and **$134.6 million** for common stock repurchases[206](index=206&type=chunk)[209](index=209&type=chunk) - Days Sales Outstanding (DSO) improved to **62 days** as of June 30, 2025, from 68 days a year prior, indicating faster conversion of revenues to cash[205](index=205&type=chunk) - Subsequent to quarter end, in July 2025, Quanta used **$700.0 million** from its commercial paper program and revolving credit facility to finance the cash portion of the Dynamic Systems acquisition[194](index=194&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes occurred in market risk disclosures during H1 2025, with primary exposures remaining in interest rates and foreign currency exchange rates - There were no material changes to the company's market risk profile, with primary exposures remaining in **interest rates** and **currency exchange rates**[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with ongoing integration of four acquired businesses into internal control over financial reporting - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[217](index=217&type=chunk) - The company is in the process of integrating **four businesses** acquired in H1 2025 into its overall internal control over financial reporting[218](index=218&type=chunk) [PART II. OTHER INFORMATION](index=48&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with detailed information available in Note 13 of the financial statements - The company is subject to various lawsuits and claims in the ordinary course of business; for specific details, refer to **Note 13** of the Notes to Condensed Consolidated Financial Statements[223](index=223&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K have occurred as of the filing date - As of the filing date, there have been **no material changes** to the risk factors described in the 2024 Annual Report[225](index=225&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, Quanta issued **257,357 unregistered shares** valued at **$86.0 million** for acquisitions and repurchased **67,172 shares** for **$16.0 million**, with **$365.1 million** remaining for future repurchases - In Q2 2025, the company issued **257,357 unregistered shares** of common stock valued at **$86.0 million** as part of acquisition and contingent consideration settlements[227](index=227&type=chunk) Stock Repurchase Program Activity | Period | Shares Repurchased | Average Price Paid | Program Availability (in millions) | | :--- | :--- | :--- | :--- | | April 1 - 30, 2025 | 67,172 | $238.00 | $365.10M | | May 1 - 31, 2025 | 0 | N/A | $365.10M | | June 1 - 30, 2025 | 0 | N/A | $365.10M | [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - During the three months ended June 30, 2025, no director or officer of Quanta adopted or terminated an insider trading arrangement under **Rule 10b5-1**[235](index=235&type=chunk)

Financial Data and Key Metrics Changes - The company reported strong double-digit growth in revenue, adjusted EBITDA, and adjusted earnings per share for Q2 2025, with revenues of $6.8 billion, net income of $229 million, adjusted diluted EPS of $2.48, and adjusted EBITDA of $669 million [7][12]. - The company generated cash flow from operations of $296 million and free cash flow of $170 million in the second quarter [12]. - The full-year 2025 financial expectations for revenue have been increased to a range of $27.4 billion to $27.9 billion, adjusted EBITDA to between $2.76 billion and $2.89 billion, and adjusted EPS to between $10.28 and $10.88 [13][14]. Business Line Data and Key Metrics Changes - The acquisition of Dynamic Systems is expected to enhance the company's craft skill capabilities and expand its addressable market across several strategic verticals [7][8]. - The company made a strategic investment in Bell Lumber and Pole Company, which is anticipated to enhance its utility infrastructure equipment portfolio [8]. Market Data and Key Metrics Changes - Utilities in the U.S. are experiencing significant increases in power demand driven by new technologies, including data centers and AI, which is expected to lead to historic investments in high voltage transmission infrastructure [11]. - The company noted that demand for its differentiated portfolio of self-performed craft labor solutions remains strong despite regulatory variability [13]. Company Strategy and Development Direction - The company's core strategy focuses on craft skilled labor, execution certainty, investment discipline, and strategic rationale, aiming to reinforce its differentiated platform and drive long-term sustainable value creation [9][10]. - The company differentiates itself through a solution-based approach that integrates craft labor with engineering, technology, and program management expertise [10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on expanding opportunities in the energy and infrastructure landscape, which is undergoing a fundamental transformation [10][11]. - The management team emphasized the importance of long-term relationships with customers and the ability to adapt to evolving industry dynamics [10][11]. Other Important Information - The company is evaluating refinancing alternatives to increase its post-transaction liquidity profile, ensuring continued support for operations and opportunistic capital investments [12]. - The company intends to maintain a leverage ratio profile of 1.5 to 2 times, aiming to remain investment grade [102][105]. Q&A Session Summary Question: Can you provide insights on backlog growth and the impact of recent legislation? - Management indicated confidence in sequential backlog growth driven by incremental transmission bookings, despite external noise from legislation [18][20]. Question: How has the bidding process changed with increased backlog? - Management noted that the ability to provide solutions and self-perform capabilities allows for more favorable bidding terms and increased selectivity on projects [29][30]. Question: What prompted the acquisition of Dynamic Systems? - The acquisition was driven by customer demand for more comprehensive solutions and the cultural fit of Dynamic Systems with the company [37][38]. Question: How is the company preparing for potential short-term slowdowns in renewables? - Management stated that the company has historically been able to move labor across segments and is not overly concerned about short-term fluctuations [62][64]. Question: What is the outlook for free cash flow given the higher adjusted EBITDA? - Management explained that while adjusted EBITDA is higher, the free cash flow outlook remains unchanged due to timing uncertainties related to large receivables [96][97].

Financial Data and Key Metrics Changes - The company reported strong double-digit growth in revenue, adjusted EBITDA, and adjusted earnings per share for Q2 2025, with revenues of $6.8 billion, net income of $229 million, adjusted diluted EPS of $2.48, and adjusted EBITDA of $669 million [5][11][12] - The record backlog reached $35.8 billion, indicating robust demand and operational capacity [5][12] Business Line Data and Key Metrics Changes - The acquisition of Dynamic Systems is expected to enhance Quanta's capabilities in mechanical, plumbing, and process infrastructure, expanding its addressable market across several strategic verticals [5][6] - A strategic investment in Bell Lumber and Pole Company was made to strengthen Quanta's core utility infrastructure equipment portfolio [6][7] Market Data and Key Metrics Changes - Utilities in the U.S. are forecasting significant increases in power demand driven by new technologies, including data centers and AI, which is expected to lead to historic investments in high voltage transmission infrastructure [9][10] - The company noted that 80-85% of its work is self-performed, providing execution certainty and a competitive edge in the bidding process [27][28] Company Strategy and Development Direction - Quanta's core strategy focuses on craft skilled labor, execution certainty, investment discipline, and a solution-based approach to deliver comprehensive infrastructure solutions [7][8] - The company aims to deepen customer relationships and establish new growth platforms, supported by a disciplined approach to acquisitions and capital deployment [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on expanding opportunities in the energy and infrastructure landscape, which is undergoing significant transformation [9][10] - The company anticipates continued growth in revenues and earnings, supported by a favorable regulatory environment and strong demand for its differentiated portfolio of solutions [12][13] Other Important Information - The company is evaluating refinancing alternatives to enhance liquidity post-acquisition, ensuring continued support for operations and capital investments [11] - Management emphasized the importance of maintaining a prudent leverage profile, targeting a leverage ratio between 1.5 to 2 times [102][103] Q&A Session Summary Question: Can you provide insights on backlog growth and its implications? - Management indicated confidence in sequential backlog growth driven by incremental transmission bookings and a strong demand environment [17][19] Question: What prompted the acquisition of Dynamic Systems? - The acquisition was driven by customer demand for more comprehensive solutions and the strategic fit of Dynamic Systems' capabilities with Quanta's existing operations [35][36] Question: How is the company preparing for potential short-term slowdowns in renewables? - Management stated that the company has historically been able to move labor across segments and is well-prepared to manage fluctuations in demand [61][62] Question: Can you discuss the cross-sell opportunities with Dynamic Systems? - There are significant customer synergies expected between Dynamic Systems and Quanta's existing operations, particularly in providing integrated solutions [78][81] Question: How does the company view the impact of the ITC winding down on renewables? - Management believes that the demand for renewables will remain strong despite regulatory changes, as customers are well-prepared and have safe harbored projects into 2028 and beyond [45][46] Question: What is the outlook for free cash flow given the higher adjusted EBITDA? - The free cash flow outlook remains unchanged due to the timing of cash collections and the need for a prudent approach to large receivables [97][98]

Core Insights - Quanta Services reported quarterly earnings of $2.48 per share, exceeding the Zacks Consensus Estimate of $2.43 per share, and showing an increase from $1.90 per share a year ago [1][2] - The company achieved revenues of $6.77 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.34%, and up from $5.59 billion year-over-year [3] - Quanta Services has consistently outperformed earnings estimates, surpassing consensus EPS estimates in all four of the last quarters [2][3] Earnings Performance - The earnings surprise for the latest quarter was +2.06%, while the previous quarter had a surprise of +7.23% [2] - The current consensus EPS estimate for the upcoming quarter is $3.16, with expected revenues of $7.21 billion, and for the current fiscal year, the EPS estimate is $10.32 on revenues of $27.04 billion [8] Stock Performance - Quanta Services shares have increased by approximately 30.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.2% [4] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Outlook - Quanta Services operates within the Zacks Engineering - R and D Services industry, which is currently ranked in the top 35% of over 250 Zacks industries [9] - The industry’s performance can significantly influence the stock's performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

[Q2 2025 Performance Overview](index=1&type=section&id=QUANTA%20SERVICES%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Quanta Services achieved record Q2 results with **$6.8 billion** revenues, strong EPS growth, and a **$35.8 billion** record backlog Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $6.77B | $5.59B | +21.1% | | Net Income Attributable to Common Stock | $229.3M | $188.2M | +21.8% | | GAAP Diluted EPS | $1.52 | $1.26 | +20.6% | | Adjusted Diluted EPS | $2.48 | $1.90 | +30.5% | | Adjusted EBITDA | $668.8M | $523.2M | +27.8% | Six Months Ended June 30, 2025 Key Financial Metrics | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $13.01B | $10.63B | +22.4% | | Net Income Attributable to Common Stock | $373.5M | $306.5M | +21.8% | | GAAP Diluted EPS | $2.47 | $2.05 | +20.5% | | Adjusted Diluted EPS | $4.25 | $3.31 | +28.4% | - The company achieved record Remaining Performance Obligations (RPO) of **$19.2 billion** and a record Total Backlog of **$35.8 billion**[2](index=2&type=chunk) - Year-to-date cash flow from operations was **$538.9 million**, with free cash flow of **$288.2 million**[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong H1 performance to resilient demand and the Dynamic Systems acquisition, raising full-year outlook - Management cites resilient demand fueled by customers' multi-year programs to build out infrastructure supporting load growth from technology adoption and manufacturing reshoring[3](index=3&type=chunk) - The recent acquisition of Dynamic Systems (DSI) is highlighted as a key strategic move to strengthen capabilities for technology, manufacturing, and other load center markets[5](index=5&type=chunk) - As a result of strong Q2 results and the DSI acquisition, the company is increasing its full-year 2025 financial expectations[5](index=5&type=chunk) [Business and Strategic Developments](index=2&type=section&id=Business%20and%20Strategic%20Developments) [Acquisitions and Investments](index=2&type=section&id=Acquisitions%20and%20Investments) Quanta expanded capabilities via strategic acquisitions, including Dynamic Systems for **$1.35 billion** and a Bell Lumber minority interest - Completed the acquisition of Dynamic Systems (DSI) in July 2025 for upfront consideration of approximately **$1.35 billion**, providing turnkey mechanical, plumbing, and process infrastructure solutions[6](index=6&type=chunk) - Acquired a minority interest in Bell Lumber and Pole Company in May 2025 to expand its portfolio of core utility infrastructure equipment and enhance supply chain solutions[8](index=8&type=chunk) [Major Project Awards and Recognition](index=3&type=section&id=Major%20Project%20Awards%20and%20Recognition) Quanta secured the **300-mile**, **500-kilovolt** Boardman to Hemingway project and was named **2025 Top Solar Contractor** - Selected by Idaho Power for the Boardman to Hemingway electric transmission line project, an approximately **300-mile**, **500-kilovolt** line, with full completion expected in late 2028[8](index=8&type=chunk) - Named the **2025 Top Solar Contractor** by Solar Power World, having installed over **10,000 MW** of solar generating capacity and over **1,200 MW** of energy storage capacity in 2024[8](index=8&type=chunk) [Capital Deployment](index=3&type=section&id=Capital%20Deployment) Quanta acquired two companies for **$226.8 million** and repurchased **$134.6 million** in shares, with **$365.1 million** remaining for buybacks - In Q2 2025, acquired two companies for an aggregate of **$226.8 million**, specializing in civil solutions and electric utility construction[8](index=8&type=chunk) - Year-to-date, repurchased **538,559 shares** of common stock for **$134.6 million**, with approximately **$365.1 million** remaining available under the stock repurchase program as of July 30, 2025[8](index=8&type=chunk) [Full-Year 2025 Outlook](index=4&type=section&id=FULL-YEAR%202025%20OUTLOOK) [Updated Financial Guidance](index=4&type=section&id=Updated%20Financial%20Guidance) Quanta raised its full-year 2025 financial guidance, reflecting strong Q2 performance and the Dynamic Systems acquisition Full-Year 2025 Guidance | Metric | Expected Range | | :--- | :--- | | Revenues | $27.4B - $27.9B | | Net Income Attributable to Common Stock | $978.5M - $1.07B | | Diluted EPS Attributable to Common Stock | $6.47 - $7.07 | | Adjusted Diluted EPS | $10.28 - $10.88 | | EBITDA | $2.50B - $2.63B | | Adjusted EBITDA | $2.76B - $2.89B | | Net Cash from Operating Activities | $1.70B - $2.25B | | Free Cash Flow | $1.20B - $1.70B | - The outlook considers uncertainties such as weather, regulatory issues, supply chain challenges, and macroeconomic conditions like inflation and interest rates[9](index=9&type=chunk) [Segment Performance](index=10&type=section&id=Segment%20Performance) [Electric Infrastructure Solutions](index=10&type=section&id=Electric%20Infrastructure%20Solutions) Electric Infrastructure Solutions segment revenues grew **21.6%** to **$5.46 billion**, operating income rose **29.5%** to **$552.6 million**, and operating margin improved to **10.1%** Electric Segment Performance (in thousands) | Period | Revenues ($K) | YoY Change | Operating Income ($K) | YoY Change | Operating Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | $5,458,074 | +21.6% | $552,620 | +29.5% | 10.1% | | **Q2 2024** | $4,486,880 | - | $426,581 | - | 9.5% | | **H1 2025** | $10,402,465 | +23.9% | $960,784 | +31.7% | 9.2% | | **H1 2024** | $8,398,004 | - | $729,452 | - | 8.7% | [Underground Utility and Infrastructure Solutions](index=10&type=section&id=Underground%20Utility%20and%20Infrastructure%20Solutions) Underground Utility and Infrastructure Solutions revenues rose **18.7%** to **$1.31 billion**, operating income increased **11.2%** to **$90.7 million**, but operating margin slightly compressed to **6.9%** Underground and Infrastructure Segment Performance (in thousands) | Period | Revenues ($K) | YoY Change | Operating Income ($K) | YoY Change | Operating Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | $1,314,933 | +18.7% | $90,703 | +11.2% | 6.9% | | **Q2 2024** | $1,107,507 | - | $81,593 | - | 7.4% | | **H1 2025** | $2,603,876 | +16.9% | $167,570 | +30.4% | 6.4% | | **H1 2024** | $2,228,202 | - | $128,481 | - | 5.8% | [Backlog and Remaining Performance Obligations (RPO)](index=11&type=section&id=Backlog%20and%20Remaining%20Performance%20Obligations%20%28RPO%29) Quanta's total backlog reached a record **$35.8 billion** as of June 30, 2025, with RPO at **$19.2 billion**, largely from the Electric segment's **$30.3 billion** Backlog and RPO as of June 30, 2025 (in thousands) | Metric | Electric Segment ($K) | Underground & Infra Segment ($K) | Total ($K) | | :--- | :--- | :--- | :--- | | RPO | $17,963,215 | $1,197,644 | $19,160,859 | | Total Backlog | $30,283,298 | $5,561,237 | $35,844,535 | - Total backlog increased to **$35.8 billion** at the end of Q2 2025, compared to **$34.5 billion** at the end of 2024 and **$31.3 billion** at the end of Q2 2024[36](index=36&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues grew **21.1%** to **$6.77 billion**, gross profit increased **24.2%** to **$1.01 billion**, and net income attributable to common stock rose **21.8%** to **$229.3 million** Q2 Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 ($K) | Q2 2024 ($K) | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | $6,773,007 | $5,594,387 | +21.1% | | Gross Profit | $1,007,574 | $811,331 | +24.2% | | Operating Income | $370,282 | $307,230 | +20.5% | | Net Income Attributable to Common Stock | $229,250 | $188,159 | +21.8% | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Quanta's total assets reached **$19.89 billion**, total liabilities **$12.02 billion**, and total equity **$7.87 billion**, reflecting acquisition-driven asset growth Balance Sheet Highlights (in thousands) | Line Item | June 30, 2025 ($K) | Dec 31, 2024 ($K) | | :--- | :--- | :--- | | Total Current Assets | $8,177,557 | $7,851,033 | | Total Assets | $19,891,264 | $18,683,894 | | Total Current Liabilities | $5,977,256 | $6,028,513 | | Total Liabilities | $12,022,490 | $11,354,177 | | Total Equity | $7,868,774 | $7,329,717 | [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Adjusted Net Income and EPS (Q2 & YTD)](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20EPS%20%28Q2%20%26%20YTD%29) Q2 2025 GAAP Net Income of **$229.3 million** was adjusted to **$373.6 million** non-GAAP, primarily due to amortization and stock-based compensation, yielding Adjusted Diluted EPS of **$2.48** Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Amount ($K) | | :--- | :--- | | **Net Income Attributable to Common Stock (GAAP)** | **$229,250** | | Amortization of intangible assets | $113,178 | | Non-cash stock-based compensation | $44,071 | | Acquisition and integration costs | $24,599 | | Other adjustments & tax impacts | ($37,484) | | **Adjusted Net Income Attributable to Common Stock** | **$373,614** | [Reconciliation of EBITDA and Adjusted EBITDA (Q2 & YTD)](index=15&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA%20%28Q2%20%26%20YTD%29) Q2 2025 GAAP Net Income of **$229.3 million** was reconciled to Adjusted EBITDA of **$668.8 million**, with EBITDA at **$589.4 million** after standard add-backs and non-cash adjustments Q2 2025 Reconciliation to Adjusted EBITDA (in thousands) | Description | Amount ($K) | | :--- | :--- | | **Net Income Attributable to Common Stock (GAAP)** | **$229,250** | | Interest, Taxes, Depreciation & Amortization | $360,840 | | **EBITDA** | **$589,390** | | Non-cash stock-based compensation | $44,071 | | Acquisition and integration costs | $24,599 | | Other adjustments | $10,702 | | **Adjusted EBITDA** | **$668,762** | [Reconciliation of Free Cash Flow (Q2 & YTD)](index=17&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow%20%28Q2%20%26%20YTD%29) For H1 2025, Quanta generated **$538.9 million** in net cash from operations, resulting in **$288.2 million** Free Cash Flow after **$250.7 million** net capital expenditures Free Cash Flow Reconciliation - Six Months Ended June 30 (in thousands) | Description | 2025 ($K) | 2024 ($K) | | :--- | :--- | :--- | | Net cash provided by operating activities | $538,909 | $629,267 | | Less: Net capital expenditures | ($250,721) | ($189,419) | | **Free Cash Flow** | **$288,188** | **$439,848** | [Reconciliation of Full-Year 2025 Guidance (Non-GAAP)](index=18&type=section&id=Reconciliation%20of%20Full-Year%202025%20Guidance%20%28Non-GAAP%29) Quanta reconciled full-year 2025 guidance, adjusting GAAP Net Income to Adjusted Net Income and EBITDA, and operating cash flow to Free Cash Flow - The guidance for FY2025 GAAP Diluted EPS of **$6.47 - $7.07** is reconciled to Adjusted Diluted EPS of **$10.28 - $10.88**, with key adjustments including amortization of intangible assets (**$3.39**) and non-cash stock-based compensation (**$1.16**)[59](index=59&type=chunk) - The FY2025 GAAP Net Income guidance of **$978.5 million - $1.07 billion** is reconciled to Adjusted EBITDA guidance of **$2.76 billion - $2.89 billion**[64](index=64&type=chunk) - The FY2025 Net Cash from Operating Activities guidance of **$1.7 billion - $2.25 billion** is reconciled to Free Cash Flow guidance of **$1.2 billion - $1.7 billion** by subtracting estimated net capital expenditures of **$500 million - $550 million**[67](index=67&type=chunk)

Core Viewpoint - Quanta Services, Inc. has successfully acquired Dynamic Systems, a leading provider of mechanical and process infrastructure solutions, enhancing its capabilities in the technology, semiconductor, and healthcare markets [1][2][5]. Company Overview - Dynamic Systems, founded in 1988 and based in Austin, Texas, specializes in integrated turnkey mechanical solutions, including design, construction, and after-market services [1][9]. - The company has a workforce of approximately 2,400 employees and has established itself as one of the largest mechanical solutions providers in the U.S. [1][9]. Financial Highlights - The acquisition was valued at approximately $1.35 billion, comprising about $1.15 billion in cash and $200 million in Quanta common stock, with a potential earnout of up to $216 million based on performance targets [6]. - Dynamic Systems is projected to generate revenues of $1.0 billion to $1.1 billion and adjusted EBITDA of approximately $150 million to $170 million for the full year 2025 [2][6]. - For the remainder of 2025, Dynamic Systems is expected to contribute revenues of $425 million to $475 million and adjusted EBITDA of $45 million to $55 million [10]. - For the full year 2026, estimated contributions include revenues of $1.25 billion to $1.45 billion and adjusted EBITDA of $125 million to $175 million [10]. Strategic Fit and Synergies - The acquisition aligns with Quanta's strategy for sustainable growth and enhances its total addressable market across various strategic verticals [5][10]. - Dynamic Systems' strong reputation for client-focused solutions and a high percentage of repeat business (~80%) complements Quanta's existing operations [2][10]. - The integration is expected to be immediately accretive to Quanta's growth, cash flow conversion, and earnings per share, excluding expected synergies [4][10]. Management and Cultural Integration - Dynamic Systems' existing management team will remain in place, ensuring continuity and leveraging their expertise within Quanta's operational framework [3][10]. - Both companies share a commitment to excellence, integrity, and delivering complex projects, indicating a strong cultural fit [3][10].

Financial Performance - Quanta Services reported second quarter consolidated revenues of $6.77 billion, a 21.2% increase from $5.59 billion in the same quarter of 2024 [1][6] - Net income attributable to common stock for the second quarter was $229.3 million, or $1.52 per diluted share, compared to $188.2 million, or $1.26 per diluted share, in the second quarter of 2024 [1][6] - Adjusted diluted earnings per share for the second quarter were $2.48, up from $1.90 in the same period last year [1][6] Operational Highlights - The company achieved record total backlog of $35.8 billion and remaining performance obligations of $19.2 billion [1][2] - Quanta completed the acquisition of Dynamic Systems for approximately $1.35 billion, enhancing its capabilities in mechanical, plumbing, and process infrastructure solutions [3][4] - The company was selected for the Boardman to Hemingway High-Voltage Electric Transmission Project, which is expected to deliver up to 1,000 megawatts of power [4] Year-to-Date Performance - For the six months ended June 30, 2025, revenues were $13.01 billion, compared to $10.63 billion for the same period in 2024 [6] - Net income attributable to common stock for the six months was $373.5 million, or $2.47 per diluted share, compared to $306.5 million, or $2.05 per diluted share, in the prior year [6] Future Outlook - The company raised its full-year 2025 financial expectations for revenue, adjusted EBITDA, and adjusted EPS due to strong second quarter results and the acquisition of Dynamic Systems [3][9] - Quanta expects full-year revenues to range between $27.4 billion and $27.9 billion, with net income attributable to common stock projected between $978.5 million and $1.07 billion [9]

Key Takeaways Quanta Services, Inc. (PWR) is scheduled to report its second-quarter 2025 results on July 31, before the opening bell. In the last reported quarter, the adjusted earnings and revenues topped the Zacks Consensus Estimate by 7.2% and 6.1%, respectively. Year over year, both metrics grew 26.2% and 23.9%, respectively. Quanta's earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 4.8%. PWR's Trend in Estimate R ...

Core Insights - Quanta Services, Inc. has been recognized as the top solar solutions provider in the U.S. for the second time in three years and the top energy storage solutions provider in Solar Power World's inaugural ranking [1][2] - In 2024, Quanta operating companies installed over 10,000 megawatts of domestic solar generating capacity and more than 1,200 megawatts of domestic energy storage capacity [1] Company Overview - Quanta Services is a leader in providing specialized infrastructure solutions across various sectors including utility, renewable energy, technology, communications, pipeline, and energy industries [3] - The company offers comprehensive services that encompass designing, installing, repairing, and maintaining energy and communications infrastructure [3] - Quanta operates in the U.S., Canada, Australia, and select international markets, possessing the manpower and resources to handle projects of varying scopes [3]