Here's What Investors Must Know Ahead of Quanta's Q2 Earnings

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 Revision

The Zacks Consensus Estimate for Quanta’s second-quarter adjusted earnings per share (EPS) has trended downward to $2.43 from $2.44 over the past 60 days. However, the estimated figure indicates 27.9% growth from the year-ago EPS of $1.90.

Quanta Services, Inc. Price and EPS Surprise

Quanta Services, Inc. price-eps-surprise | Quanta Services, Inc. Quote

The consensus mark for revenues is pegged at $6.55 billion, implying 17.2% year-over-year growth.

Factors Likely to Have Shaped Quanta’s Q2 Performance

Revenues

Quanta’s top line is expected to have increased year over year in the quarter to be reported because of the favorable market trends for infrastructure demand, especially across electric grids, power generation, Artificial Intelligence solutions and data centers. Moreover, the company’s diversified service offerings, alongside multi-year initiatives aimed at modernizing utility infrastructure and expanding renewable energy generation and transmission infrastructure, are expected to have contributed to the quarterly growth.

The positive impact of these tailwinds is likely to have been reflected in the increased contributions by the Electric Infrastructure Solutions (accounting for 79.3% of first-quarter 2025 revenues) and Underground Utility and Infrastructure Solutions (accounting for 20.7% of first-quarter 2025 revenues) segments. Quanta expects revenues in the Electric Infrastructure Solutions segment to increase year over year between mid to upper teens, while the same for the Underground Utility and Infrastructure Solutions segment is expected to remain at par.

Segment-wise, our model expects revenues from the Electric Infrastructure Solutions segment and the Underground Utility and Infrastructure Solutions segment to increase year over year by 16.9% to $5.24 billion and 16.4% to $1.29 billion, respectively.

Notably, Quanta’s inorganic initiatives, along with its focus on the growth strategy, are also likely to have aided its quarterly performance, positioning it well for the upcoming quarters.

Margins

Although Quanta has been facing headwinds in the form of inflated labor costs, project delays and supply inefficiencies, leverage from the increased top line, growing backlog and efficient project deliveries is likely to have aided its bottom line during the second quarter. Also, variability in project timing adds to the tailwinds favoring the margins during the quarter.

The company expects the operating margin in the Electric Infrastructure Solutions segment to be nearly 10% compared with 9.5% in the year-ago period.

Per our model, Quanta’s overall operating margin is expected to expand 70 basis points (bps) from a year ago to 6.2% in the quarter. We expect the adjusted EBITDA margin to grow 50 bps year over year to 9.9% in the quarter.

Segment-wise, we expect the operating margin in the Electric Infrastructure Solutions segment to expand 50 bps to 10%, while that for the Underground Utility & Infrastructure Solutions segment is expected to increase 30 bps to 7.7%.

What Our Model Predicts for PWR

Our proven model does not conclusively predict an earnings beat for Quanta this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

Earnings ESP: PWR has an Earnings ESP of -0.18%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Primoris Services Corporation PRIM has an Earnings ESP of +5.33% and a Zacks Rank of 1.

Primoris Services’ earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.

MasTec, Inc. MTZ currently has an Earnings ESP of +0.09% and a Zacks Rank of 1.

MasTec’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26%. MasTec’s earnings for the second quarter of 2025 are expected to grow 46.9%.

Masco Corporation MAS currently has an Earnings ESP of +2.61% and a Zacks Rank of 3.

Masco’s earnings beat estimates in two of the last four quarters, met on one occasion and missed on the remaining occasion, the negative average surprise being 0.2%. Masco’s earnings for the second quarter of 2025 are expected to tumble 10%.

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This article originally published on Zacks Investment Research (zacks.com).

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