[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]

Core Insights - Quanta Services, Inc. (PWR) is set to report its Q2 2025 results on July 31, with expectations of strong earnings and revenue growth compared to the previous year [1][2] Revenue Expectations - The Zacks Consensus Estimate for Q2 adjusted earnings per share (EPS) is $2.43, reflecting a 27.9% increase from the previous year's EPS of $1.90 [2] - Revenue is projected at $6.55 billion, indicating a year-over-year growth of 17.2% [2][7] - Growth is attributed to favorable market trends in infrastructure demand, particularly in electric grids, power generation, AI solutions, and data centers [3][7] Segment Performance - The Electric Infrastructure Solutions segment is expected to contribute significantly, with revenues anticipated to rise by 16.9% to $5.24 billion, accounting for 79.3% of total revenues [4][5] - The Underground Utility and Infrastructure Solutions segment is projected to see a revenue increase of 16.4% to $1.29 billion, maintaining its contribution at 20.7% [4][5] Margin Analysis - Operating margins for the Electric Infrastructure Solutions segment are forecasted to reach nearly 10%, up from 9.5% in the previous year [6][8] - Overall operating margin is expected to expand by 70 basis points to 6.2%, with adjusted EBITDA margin anticipated to grow by 50 basis points to 9.9% [7][8] Earnings Prediction - The model indicates that Quanta may not conclusively predict an earnings beat this quarter, with an Earnings ESP of -0.18% and a Zacks Rank of 3 [9][10]

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]

Core Insights - Quanta Services, Inc. (PWR) is strategically positioned to benefit from increased utility investment, grid modernization, and the U.S. energy and manufacturing capacity expansion driven by the Inflation Reduction Act (IRA) [1] - The company reported a record backlog of $35.3 billion as of March 31, 2025, supported by demand for high-voltage transmission, power generation, and advanced infrastructure related to clean energy and domestic industrial activity [1][8] Group 1: Financial Performance and Outlook - Quanta has provided a positive outlook for 2025, driven by rising utility spending, strong base business momentum, and growth in electric infrastructure and data center demand [3] - Earnings estimates for 2025 and 2026 have increased to $10.33 and $11.72 per share, indicating year-over-year growth of 15.2% and 13.5%, respectively [13] Group 2: Risk Management and Strategic Initiatives - The company is mitigating risks associated with policy changes and tariff-related issues through its contract structures, which limit exposure to input cost inflation [2] - Quanta is enhancing supply-chain resilience by investing in U.S.-based transformer manufacturing, which helps clients navigate regulatory changes and reduce reliance on foreign sourcing [4][8] Group 3: Market Position and Competitive Performance - Quanta's stock has outperformed its peers, with a 43.6% increase over the past three months, compared to 22.8% for AECOM and 60.4% for Fluor Corporation [6][8] - The company's current forward 12-month price-to-earnings (P/E) ratio is 34.94, which is higher than AECOM's 20.44 and Fluor's 20.25 [10][12] Group 4: Infrastructure Spending and Growth Opportunities - As infrastructure spending backed by policy gains momentum, Quanta is well-positioned to capture growth opportunities in transmission, renewable energy, and manufacturing-related projects [5] - The company is seeing increased visibility into larger transmission projects, supported by utility spending and accelerated data center expansion [4]

Core Viewpoint - Quanta Services, Inc. is set to release its second quarter 2025 financial results on July 31, 2025, before market opening, followed by a webcast and conference call at 9:00 a.m. Eastern time [1] Group 1: Earnings Release and Webcast Details - The second quarter 2025 earnings release will be accompanied by supplemental earnings materials available on the Investor Relations section of Quanta's website, which will include operational and financial commentary [2] - The earnings webcast will be conducted via web-based audio using a Zoom Webinar, with registration available on Quanta's Investor Relations website [3] - An archive of the webcast will be accessible shortly after the call for those unable to participate live [3] Group 2: Company Overview - Quanta Services is a leader in providing specialized infrastructure solutions across various industries, including utility, renewable energy, technology, communications, pipeline, and energy [4] - The company offers a comprehensive range of services, including the design, installation, repair, and maintenance of energy and communications infrastructure [4] - Quanta operates in the United States, Canada, Australia, and select international markets, equipped with the manpower, resources, and expertise to handle projects of varying scopes [4]

Core Viewpoint - Quanta Services (PWR) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in recent quarters [1][6]. Earnings Performance - Quanta Services has consistently exceeded earnings estimates, averaging a 9.30% beat over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $1.66 per share against an expectation of $1.78, resulting in a surprise of 7.23%. In the previous quarter, it reported $2.94 per share compared to an estimate of $2.64, achieving a surprise of 11.36% [3]. Earnings Estimates and Predictions - Recent estimates for Quanta Services have been revised upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6][9]. - The current Earnings ESP for Quanta Services is +0.24%, suggesting analysts are optimistic about the company's earnings prospects [9]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that Quanta Services has a high probability of beating consensus estimates, with historical data indicating a nearly 70% success rate for stocks with this combination [7][9].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves significant challenges and risks [1] Group 1: Company Overview - Quanta Services (PWR) is currently highlighted as a recommended growth stock, benefiting from a favorable Growth Score and a top Zacks Rank [2] - The company operates as a specialty contractor for utility and energy sectors, 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 15.2% for the current year, surpassing the industry average of 13.9% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Quanta Services stands at 24.6%, significantly higher than the industry average of 14.4% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 21.9%, compared to the industry average of 6.2% [6] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Quanta Services, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Investment Positioning - Quanta Services has achieved a Growth Score of B and a Zacks Rank 2, indicating strong potential for outperformance in the growth stock category [9]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...