Financial Data and Key Metrics Changes - Quanta Services reported revenues of $7.6 billion for Q3 2025, with a net income of $339 million, translating to $2.24 per diluted share. Adjusted diluted earnings per share were $3.33, and adjusted EBITDA was $858 million [14][15] - The company raised its full-year revenue expectations to a range of $27.8 to $28.2 billion and free cash flow expectations to $1.5 billion at the midpoint, driven by a healthy free cash flow of $438 million during the quarter [14][15] Business Line Data and Key Metrics Changes - The electric segment showed accelerating demand, contributing to double-digit growth in revenue, adjusted EBITDA, and adjusted EPS compared to the prior year [8][14] - The Total Solutions power generation platform was expanded, leveraging capabilities in renewable energy and battery energy storage solutions [10][11] Market Data and Key Metrics Changes - Quanta Services has a record backlog of $39.2 billion, reflecting robust activity across end markets and positive momentum heading into 2026 [8][14] - The company is positioned to capitalize on a generational investment cycle in critical infrastructure, driven by increased demand for resilient grids and expanded generation and storage [10][11] Company Strategy and Development Direction - The company aims to deliver certainty to customers, invest in talent and technology, and expand addressable markets through disciplined strategic growth [11][16] - Quanta's integrated solution-based model differentiates its platform by combining craft labor with engineering, technology, and program management expertise [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record backlog and another year of double-digit earnings per share growth in 2026, supported by strong execution and market momentum [11][16] - The management highlighted the importance of collaboration with clients to mitigate risks associated with larger projects [30][31] Other Important Information - The company issued $1.5 billion of notes to enhance liquidity and recapitalize the balance sheet, benefiting from a recent ratings upgrade [15] - Quanta Services is focused on maintaining its investment-grade rating while strategically deploying capital [15] Q&A Session Summary Question: Potential partnership with AEP for high-voltage transmission opportunities - Management confirmed a long-standing relationship with AEP and indicated ongoing discussions, but noted that none of the high-voltage projects are currently in backlog [21][22] Question: Execution risks for larger Total Solutions jobs - Management emphasized a collaborative approach with clients to de-risk projects and ensure favorable terms [29][30] Question: Strategy between recurring services and discrete EPC project delivery - Management stated that the company maintains a balance between base business and larger projects, expecting to stack large projects on top of the base [35][36] Question: Expansion into data center construction - Management expressed confidence in their ability to build comprehensive data center solutions, leveraging existing capabilities [45][46] Question: Market opportunity for combined cycle gas plants - Management indicated a selective approach to pursuing combined cycle gas plants, focusing on total solutions rather than one-off projects [57][58] Question: Margin profile for the Total Solutions power generation platform - Management stated that the margin profile for the new platform is in line or accretive compared to current electric power margins [87][88] Question: M&A focus to complement craft labor pool - Management clarified that acquisitions are strategic and aimed at filling gaps rather than increasing capacity [96][97] Question: Scarcity of skilled trades impacting growth - Management acknowledged scarcity in certain trades, particularly inside wiremen, and emphasized ongoing investment in workforce development [102][103]

Financial Data and Key Metrics Changes - Quanta Services reported revenues of $7.6 billion for Q3 2025, with a net income of $339 million, translating to $2.24 per diluted share. Adjusted diluted earnings per share were $3.33, and adjusted EBITDA was $858 million [12][14] - The company raised its full-year revenue expectations to a range of $27.8 to $28.2 billion and free cash flow expectations to $1.5 billion at the midpoint, driven by a healthy free cash flow of $438 million during the quarter [12][14] - The record backlog reached $39.2 billion, reflecting strong demand and operational performance [7][12] Business Line Data and Key Metrics Changes - The electric segment showed accelerating demand, contributing significantly to the overall revenue growth [7][9] - The Total Solutions power generation platform was expanded, focusing on integrated solutions for power generation and infrastructure needs [9][10] Market Data and Key Metrics Changes - The company is positioned to capitalize on a generational investment cycle in critical infrastructure, driven by increased demand for resilient grids and expanded generation capabilities [9][10] - The renewable energy and battery storage sectors are experiencing significant growth, with a strong backlog in solar and storage projects [68] Company Strategy and Development Direction - Quanta Services aims to deliver certainty to customers, invest in talent and technology, and expand addressable markets through disciplined strategic growth [10][14] - The integrated solution-based model differentiates Quanta, combining craft labor with engineering and technology expertise [8][9] - The company is focused on building long-term partnerships rather than traditional contractor relationships, enhancing customer collaboration [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record backlog and double-digit earnings per share growth in 2026, supported by strong end-market momentum and consistent execution [10][14] - The management highlighted the importance of addressing customer needs and adapting to market changes, particularly in the energy and infrastructure sectors [9][10] Other Important Information - The company issued $1.5 billion in notes to enhance liquidity and recapitalize the balance sheet, benefiting from a recent ratings upgrade [12][13] - The acquisition of Dynamic Systems is expected to enhance mechanical construction capabilities and expand service offerings [117] Q&A Session Summary Question: Potential partnership with AEP for high-voltage transmission - Management confirmed ongoing collaboration with AEP but noted that none of the 765 capabilities are currently in backlog, with discussions ongoing [19][20] Question: Execution risks for larger Total Solutions jobs - Management emphasized a collaborative approach to mitigate risks and ensure cost certainty for clients, stating that they are not taking risks on large projects [25][26] Question: Strategy between recurring services and discrete EPC projects - Management reiterated that the core strategy remains focused on craft skills and solution-based approaches, with a balance between base business and larger projects [30][31] Question: Expansion into data center construction - Management expressed confidence in their ability to build comprehensive data center solutions, leveraging existing capabilities and partnerships [42][43] Question: Joint venture with Zachry for power generation - Management clarified that the joint venture is a strategic move to expand service offerings while managing risks collaboratively [48][51] Question: Market opportunity for combined cycle gas plants - Management indicated a selective approach to market opportunities, focusing on total solutions rather than pursuing all available projects [56][57] Question: Demand for natural gas infrastructure - Management acknowledged ongoing discussions about infrastructure needs but emphasized a cautious approach to new projects [60][62] Question: Solar and storage backlog increase - Management confirmed significant growth in the solar and storage backlog, driven by strong demand and the ability to deliver integrated solutions [68][69] Question: Dynamic Systems acquisition integration - Management reported positive integration outcomes from the Dynamic Systems acquisition, enhancing mechanical construction capabilities [117][118]

Core Insights - Quanta Services reported quarterly earnings of $3.33 per share, exceeding the Zacks Consensus Estimate of $3.25 per share, and up from $2.72 per share a year ago [1] - The company achieved a revenue of $7.63 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.45% and increasing from $6.49 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +2.46%, following a previous surprise of +2.06% in the last quarter [2] - Quanta Services has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Performance - Quanta Services shares have increased approximately 42% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.06 on revenues of $7.35 billion, and for the current fiscal year, it is $10.58 on revenues of $27.8 billion [8] - The Zacks Rank for Quanta Services is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - Quanta Services operates within the Zacks Engineering - R and D Services industry, which is currently ranked in the top 24% of over 250 Zacks industries [9] - The performance of Quanta Services may be influenced by the overall outlook for the industry [9]

Financial Performance - Third quarter consolidated revenues reached $7.6 billion, up from $6.49 billion in the same quarter of 2024, representing a year-over-year growth of approximately 17%[2] - Net income attributable to common stock for the third quarter was $339.4 million, or $2.24 per diluted share, compared to $293.2 million, or $1.95 per diluted share, in the prior year, reflecting a 15.7% increase in net income[2] - Adjusted EBITDA for the third quarter was $858.3 million, contributing to a record backlog of $39.2 billion, indicating strong demand in the Electric segment[2][3] - Revenues for Q3 2025 reached $7,631,408, a 17.5% increase from $6,493,167 in Q3 2024[26] - Gross profit for Q3 2025 was $1,216,434, up 20.2% from $1,012,570 in Q3 2024[26] - Net income attributable to common stock for Q3 2025 was $339,420, representing a 15.7% increase from $293,185 in Q3 2024[26] - Earnings per share (diluted) for Q3 2025 was $2.24, compared to $1.95 in Q3 2024, reflecting a 14.9% increase[26] - Operating income for Q3 2025 was $517,217, a 20% increase from $431,161 in Q3 2024[26] - Total revenues for the nine months ended September 30, 2025, were $20,637,749, a 20.5% increase from $17,119,373 in the same period of 2024[26] - The company reported a gross profit of $3,058,045 for the nine months ended September 30, 2025, up 24.9% from $2,447,395 in 2024[26] - Adjusted net income attributable to common stock for the nine months ended September 30, 2025, was $1.13 billion, compared to $0.89 billion for the same period in 2024[38] - Adjusted diluted earnings per share for the three months ended September 30, 2025, was $3.33, compared to $2.72 in 2024, reflecting a 22.5% increase[50] - EBITDA for the three months ended September 30, 2025, was $772,847, representing a 22% increase from $634,104 in 2024[50] Cash Flow and Expenditures - Year-to-date cash flow from operations totaled $1.1 billion, with free cash flow amounting to $726.3 million[2] - Free cash flow for the three months ended September 30, 2025, was $438,096, down from $539,470 in 2024, indicating a decrease of 18.7%[54] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,102,405, a decrease of 19.5% from $1,369,181 in 2024[54] - Capital expenditures for the nine months ended September 30, 2025, totaled $415,560, down from $457,093 in 2024, a reduction of 9.1%[54] - Free cash flow for the full year 2025 is estimated to be between $1,300,000,000 and $1,700,000,000[68] - Net cash provided by operating activities is projected to range from $1,850,000,000 to $2,250,000,000 for the full year 2025[68] Future Projections - For the full year 2025, the company expects revenues between $27.8 billion and $28.2 billion, with net income projected between $987.1 million and $1.06 billion[12] - Adjusted diluted earnings per share for the full year 2025 are anticipated to range between $10.33 and $10.83, reflecting significant growth compared to previous periods[12] - Estimated adjusted net income attributable to common stock for the full year 2025 is projected to be between $1,562,600,000 and $1,637,400,000[60] - Estimated EBITDA for the full year 2025 is projected to be between $2,493,000,000 and $2,599,900,000[65] - Adjusted EBITDA for the full year 2025 is expected to range from $2,768,400,000 to $2,875,300,000[65] - Net income attributable to common stock (GAAP) is estimated to be between $987,100,000 and $1,061,900,000 for the full year 2025[65] Acquisitions and Market Expansion - Quanta completed five acquisitions in the first nine months of 2025, enhancing its operational capabilities and market reach[6] - The company has been selected by NiSource to provide power generation and grid infrastructure solutions capable of producing approximately 3 gigawatts of power for a large load customer[7][6] - The company is focused on expanding its total solutions platform to meet the growing demand for electricity driven by various sectors, including data centers and industrialization[6] Stock and Shareholder Returns - Quanta repurchased 538,559 shares of its common stock for $134.6 million, with approximately $365.1 million remaining under its stock repurchase program[8] - The weighted average diluted shares outstanding increased to 151,496 in Q3 2025 from 150,556 in Q3 2024[26] Segment Performance - Electric segment revenues accounted for 80.9% of total revenues in Q3 2025, generating $6.17 billion, compared to $5.23 billion in Q3 2024[30] - Operating income for the Electric segment was $703.84 million, with an operating margin of 11.4%, compared to $576.01 million and 11.0% in the prior year[30] - Remaining performance obligations for the Electric segment totaled $19.09 billion as of September 30, 2025, an increase from $15.65 billion at the end of 2024[37] - Total backlog increased to $39.17 billion as of September 30, 2025, compared to $34.54 billion at the end of 2024, reflecting a growth of 13.5%[37] - The Underground and Infrastructure segment generated revenues of $1.46 billion in Q3 2025, up from $1.26 billion in Q3 2024, representing a growth of 15.9%[30] Expenses and Costs - The provision for income taxes for Q3 2025 was $119,605, compared to $82,421 in Q3 2024, indicating an increase in tax expenses[26] - The company experienced a rise in selling, general and administrative expenses to $572,950 in Q3 2025, up from $483,878 in Q3 2024[26] - Corporate and non-allocated costs increased to $308.84 million in Q3 2025, compared to $238.81 million in Q3 2024, impacting overall operating income[30] - Acquisition and integration costs for the three months ended September 30, 2025, were $31,903, significantly higher than $7,053 in 2024[50] - Non-cash stock-based compensation for the nine months ended September 30, 2025, was $129,121, compared to $110,815 in 2024, reflecting a 16.5% increase[50] - Non-cash stock-based compensation is expected to be $177,200,000 for the full year 2025[65] - Acquisition and integration costs are projected to be $76,500,000 for the full year 2025[65] - Amortization of intangible assets is estimated to be $490,000,000 for the full year 2025[65]

Core Insights - Quanta Services, Inc. has expanded its total solutions power generation platform to enhance its capabilities in delivering integrated power generation and grid infrastructure solutions, particularly for large load customers [1][3][5] Group 1: Expansion of Solutions Platform - The expansion builds on Quanta's extensive experience in constructing over 80,000 megawatts of power generation, focusing on renewable energy and battery energy storage solutions [5] - The platform aims to address the increasing demand for reliable power generation driven by factors such as data centers, manufacturing, and electrification [1][5] Group 2: Collaboration with NiSource - NiSource, Inc. has selected Quanta to design, procure, and construct resources capable of generating approximately 3 gigawatts of power for a large load customer [3][4] - The collaboration emphasizes customer affordability while advancing economic development and innovation in energy infrastructure [4] Group 3: Joint Venture with Zachry Group - Quanta has formed a joint venture with Zachry Group to provide combined cycle gas generation solutions, leveraging both companies' expertise [6][7] - The joint venture aims to maximize collaboration and efficiency, with Quanta holding a 50% ownership interest [6] Group 4: Project Timeline and Financial Expectations - The project scope and estimation phase has commenced, with execution expected to begin in 2026, and full power availability anticipated by 2032 [7] - Quanta expects to recognize financial contributions from the joint venture through proportionate consolidation, primarily reflected in the Electric Infrastructure Solutions segment [7]

Core Insights - Quanta Services, Inc. reported third-quarter consolidated revenues of $7.63 billion for 2025, a significant increase from $6.49 billion in the same quarter of 2024, reflecting strong demand and operational performance [1][2] - The company achieved a net income attributable to common stock of $339.4 million, or $2.24 per diluted share, compared to $293.2 million, or $1.95 per diluted share, in the prior year [1][6] - Adjusted diluted earnings per share rose to $3.33 from $2.72 year-over-year, indicating robust earnings growth [1][6] Financial Performance - Year-to-date cash flow from operations reached $1.1 billion, with free cash flow of $726.3 million [1] - For the nine months ended September 30, 2025, revenues totaled $20.64 billion, up from $17.12 billion in the same period of 2024, with net income attributable to common stock increasing to $712.9 million from $599.7 million [6][1] - The adjusted diluted earnings per share for the nine months was $7.59, compared to $6.03 in the previous year [6] Backlog and Future Outlook - Quanta Services reported a record backlog of $39.2 billion, driven by accelerating demand in the Electric segment and strong activity across various end markets [2][3] - The company anticipates continued double-digit earnings per share growth in 2026, supported by its strategic focus on delivering certainty to customers and expanding addressable markets [3][2] - Quanta's long-term outlook remains positive, with expectations for revenues in 2025 to range between $27.8 billion and $28.2 billion, and net income attributable to common stock projected between $987.1 million and $1.06 billion [8][7] Strategic Developments - Quanta has expanded its total solutions platform to address growing power generation and infrastructure needs, particularly in response to increasing electricity demand from sectors like data centers and manufacturing [4][11] - The company was selected by NiSource to provide power generation and grid infrastructure solutions capable of producing approximately 3 gigawatts of power for a large load customer [11][4] - Quanta completed five acquisitions in the first nine months of 2025, enhancing its capabilities and market reach [4][11]

Core Insights - The article discusses the current stock market performance and highlights five stocks as prime candidates for investment: Nvidia, Tesla, Broadcom, Quanta Services, and Alnylam Pharmaceuticals [1][18]. Market Overview - The stock market has performed well in 2023 and 2024, recovering from initial pressures due to Donald Trump's tariff agenda and benefiting from recent tariff easements [2]. - The S&P 500 and Nasdaq composite have surpassed their 50-day and 200-day moving averages, indicating a bullish trend [8]. Investment Strategy - The IBD Methodology suggests investing in stocks with quarterly and annual earnings growth of at least 25%, focusing on companies with innovative products and strong institutional support [4][5]. - Investors should monitor market trends and sell stocks that decline by 7% to 8% from their purchase price [9]. Stock Analysis Nvidia (NVDA) - Nvidia stock is currently above an ideal entry point of 184.48 and has shown strong performance with a 41% increase in 2025 [12][13]. - The stock has an IBD Composite Rating of 99, with earnings growth averaging 53% over the past three quarters [14]. - Analysts have a consensus strong buy rating with a price target of 211.26, citing Nvidia's leading position in AI technology [15][16]. Tesla (TSLA) - Tesla stock is forming a cup-with-handle base with an early buy point of 451.68 [20]. - The stock has an IBD Composite Rating of 77, with a 7% increase in 2025 and a significant rise from its April lows [21]. - Institutional ownership is at 34%, with notable funds holding shares [23]. Broadcom (AVGO) - Broadcom is forming a cup-with-handle base with an ideal entry point of 363.24 and has an IBD Composite Rating of 99 [25][27]. - Earnings are expected to grow by 39% this year, with a 53% increase in 2025 [28]. - The company has secured a deal to supply AI processors for OpenAI, enhancing its market position [30][31]. Quanta Services (PWR) - Quanta Services has rallied back into the buy zone above a cup base entry of 424.94, with an IBD Composite Rating of 96 [33][34]. - Earnings are projected to rise by 18% in 2025, with institutional ownership at 59% [35][36]. - The company has been expanding through acquisitions and is well-positioned in the energy infrastructure market [37]. Alnylam Pharmaceuticals (ALNY) - Alnylam is near a flat base ideal entry point of 484.21, with an IBD Composite Rating of 83 [38][39]. - The company is expected to swing from a loss to an EPS of $1.44 this year, with significant institutional backing at 74% [40][41]. - Alnylam has received FDA approval for its drug Amvuttra, expanding its market potential [42][43].

Core Insights - Quanta Services, Inc. (PWR) is set to report its Q3 2025 results on October 30, with previous quarter earnings and revenues exceeding estimates by 2.1% and 3.3% respectively, showing year-over-year growth of 30.5% and 21.1% [1][2] Revenue Performance - The Zacks Consensus Estimate for Q3 adjusted EPS has increased to $3.25, reflecting a 19.5% growth from the previous year's EPS of $2.72, while revenue expectations are set at $7.44 billion, indicating a 14.6% year-over-year increase [2] - Quanta's revenue growth is anticipated to be driven by strong public infrastructure demand, supported by federal and state funding initiatives, and increased project activity in high-voltage transmission, grid modernization, and renewable energy [3][4] - Revenue contributions are expected to rise from the Electric Infrastructure Solutions segment (projected to grow 12.7% to $5.9 billion) and the Underground Utility and Infrastructure Solutions segment (expected to increase 13.2% to $1.43 billion) [5] Margin Analysis - Despite challenges such as inflated labor costs and supply inefficiencies, Quanta's top-line growth and efficient project execution are likely to support margin expansion, with overall operating margin expected to increase by 10 basis points to 6.7% [6][8] - The Electric Infrastructure Solutions segment is projected to see an operating margin expansion of 40 basis points to 11.4%, while the Underground Utility and Infrastructure Solutions segment is expected to increase by 100 basis points to 8.5% [9] Earnings Prediction - The current model does not predict a definitive earnings beat for Quanta, as it has an Earnings ESP of -1.48%, despite holding a Zacks Rank of 2 (Buy) [10][11]

Core Insights - Quanta Services, Inc. (PWR) is set to report its Q3 2025 results on October 30, with adjusted earnings and revenues expected to show significant year-over-year growth [1][2] Financial Performance - In the last reported quarter, Quanta's adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 2.1% and 3.3%, respectively, with year-over-year growth of 30.5% in earnings and 21.1% in revenues [1] - The consensus estimate for Q3 adjusted EPS is $3.25, reflecting a 19.5% increase from the previous year's EPS of $2.72, while revenues are projected at $7.44 billion, indicating a 14.6% year-over-year growth [2][7] Revenue Drivers - Quanta's Q3 performance is anticipated to be driven by strong execution in core businesses, robust end-market demand, and ongoing strategic growth initiatives [3] - Favorable industry trends and increased infrastructure spending, particularly in electric grid modernization and renewable energy projects, are expected to support revenue growth [4] Segment Performance - The Electric Infrastructure Solutions segment, which contributed 80.6% of Q2 2025 revenues, is projected to be a key earnings driver, with expected revenue growth of 12.7% year-over-year to $5.9 billion and an operating margin expansion of 40 basis points to 11.4% [5][8] - The Underground Utility & Infrastructure Solutions segment, accounting for 19.4% of Q2 2025 revenues, is also expected to show strong performance, with anticipated revenue growth of 13.2% year-over-year to $1.4 billion and a margin increase of 100 basis points to 8.5% [6][8] Earnings Prediction - The current model indicates that Quanta may not conclusively predict an earnings beat this quarter, with an Earnings ESP of -1.48% [9] - The company holds a Zacks Rank of 2, indicating a "Buy" rating [10]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1][2]. Company Overview: Quanta Services (PWR) - Quanta Services currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2]. - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [3]. Price Performance - Over the past week, PWR shares have increased by 3.89%, while the Zacks Engineering - R and D Services industry remained flat [5]. - In the last month, PWR's price has risen by 8.75%, outperforming the industry's 3.23% [5]. - For longer-term performance, PWR shares have gained 11.58% over the past quarter and 43.08% over the last year, significantly surpassing the S&P 500's increases of 7.05% and 18.26%, respectively [6]. Trading Volume - The average 20-day trading volume for PWR is 996,870 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, three earnings estimates for PWR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $10.55 to $10.58 [9]. - For the next fiscal year, three estimates have also moved upwards without any downward revisions [9]. Conclusion - Considering the strong momentum indicators and positive earnings outlook, PWR is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11].