Quanta Tops Q2 Earnings & Revenue Estimates, Lifts 2025 View

Core Insights - Quanta Services, Inc. (PWR) demonstrated strong second-quarter 2025 performance with double-digit revenue growth, margin expansion, and strategic capital deployment, driven by demand for utility-scale infrastructure and energy transition projects [1][4] Financial Performance - Quanta's adjusted EPS reached $2.48, reflecting a 30.5% year-over-year increase and surpassing the Zacks Consensus Estimate of $2.43, attributed to revenue scale, operating leverage, and acquisitions [3][9] - The company reported revenues of $6.77 billion, a 21.1% increase year-over-year, exceeding the Zacks Consensus Estimate of $6.55 billion, marking a new second-quarter revenue record [4][9] - Gross margin improved to 14.9% from 14.5%, with adjusted EBITDA growing 27.8% year-over-year to $668.8 million, resulting in an adjusted EBITDA margin of 9.9% [5][6] Strategic Acquisitions - Quanta completed a $1.35 billion acquisition of Dynamic Systems in July, enhancing its mechanical and process infrastructure capabilities, along with two smaller acquisitions totaling $226.8 million [2] Backlog and Project Wins - The company ended the second quarter with a record backlog of $35.84 billion, up from $31.31 billion a year ago, indicating strong demand visibility [7] - Quanta was selected for a significant high-voltage transmission line project for Idaho Power, further solidifying its project pipeline [7] Segment Performance - Electric Infrastructure Solutions, accounting for 80.6% of total revenue, generated $5.46 billion, up 21.7% year-over-year, with an operating margin of 10.1% [8] - Underground and Infrastructure Solutions contributed $1.31 billion in revenues, an 18.7% increase year-over-year, with a segment margin of 6.9% [10] Balance Sheet and Liquidity - As of June 30, 2025, Quanta held $509 million in cash and cash equivalents, with total liquidity of approximately $1.3 billion, and long-term debt increased to $4.65 billion [11] Outlook - Quanta raised its full-year 2025 revenue guidance to between $27.4 billion and $27.9 billion, and adjusted EPS expectations to a range of $10.28 to $10.88, reflecting confidence in continued growth [12]