Quanta to Report Q3 Earnings: What Investors Should Know?

Quanta Services, Inc. PWR is scheduled to report its third-quarter 2025 results on Oct. 30, before the opening bell.

In the last reported quarter, the adjusted earnings and revenues topped the Zacks Consensus Estimate by 2.1% and 3.3%, respectively. Year over year, both metrics grew 30.5% and 21.1%, respectively.

Quanta’s earnings topped the consensus mark in all the trailing four quarters, with an average surprise of 5.7%.

Quanta Services, Inc. Price and EPS Surprise

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

PWR’s Trend in Estimate Revision

The Zacks Consensus Estimate for Quanta’s third-quarter adjusted earnings per share (EPS) has trended upward to $3.25 from $3.24 over the past 30 days. However, the estimated figure indicates 19.5% growth from the year-ago EPS of $2.72.

The consensus mark for revenues is pegged at $7.44 billion, implying 14.6% year-over-year growth.

Factors Likely to Have Shaped Quanta’s Q3 Performance

Revenues

Quanta Services’ third-quarter results are likely driven by solid execution across its core businesses, sustained strength in end-market demand and ongoing strategic growth initiatives that continued to propel momentum through the period.

Revenues are expected to have risen year over year, supported by favorable industry trends and elevated infrastructure spending, particularly in electric grid modernization, power generation upgrades, AI-driven solutions and data-center expansion. Additionally, Quanta’s broad service portfolio and long-term programs focused on upgrading utility infrastructure and advancing renewable energy generation and transmission projects are likely to have further bolstered its performance during the third quarter.

The Electric Infrastructure Solutions segment (which accounted for 80.6% of second-quarter 2025 revenues) remained the key earnings catalyst, supported by management’s prior guidance that the third quarter would represent its strongest revenue and margin quarter of 2025, benefiting from double-digit year-over-year revenue growth and the peak seasonal margin profile driven by higher volumes of transmission, grid modernization and storm-hardening work. This strength was further amplified by the ongoing surge in power-infrastructure investment, as utilities advance multiyear capital programs to meet rising electricity demand from data centers, AI-driven load growth, domestic manufacturing expansion and renewable interconnections — a trend management emphasized as a foundational growth engine heading into the back half of 2025. Our model expects revenues from the Electric Infrastructure Solutions segment to increase 12.7% year over year to $5.9 billion. We expect the operating margin in the Electric segment to expand 40 bps to 11.4%.

The Underground Utility & Infrastructure Solutions segment (which accounted for 19.4% of second-quarter 2025 revenues) also provided meaningful support, with the third quarter expected to deliver its strongest margins of the year and sequential revenue growth, aided by improved execution and incremental contributions from recently acquired businesses. Strategic acquisitions — notably Dynamic Systems and a stake in Bell Lumber & Pole — are likely to have added to third-quarter results by expanding Quanta’s mechanical, fabrication and supply-chain capabilities, enhancing cross-selling opportunities across electrical, civil and technology-infrastructure end markets and strengthening its ability to deliver fully integrated, self-perform solutions.

Our model expects revenues from this segment to increase 13.2% year over year to $1.4 billion. We expect the operating margin in the segment to expand 100 bps to 8.5%.

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 -1.48%. 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 2.

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.

Vulcan Materials Company VMC currently has an Earnings ESP of +2.87% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vulcan’s earnings have topped in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 10.2%. Vulcan’s earnings for the third quarter of 2025 are expected to grow 20.7%.

EMCOR Group, Inc. EME has an Earnings ESP of +0.20% and a Zacks Rank of 2.

EMCOR’s earnings topped estimates in each of the last four quarters, with an average surprise of 16.8%. EMCOR’s earnings for the third quarter of 2025 are expected to increase 14.7%.

Martin Marietta Materials, Inc. MLM currently has an Earnings ESP of +0.26% and a Zacks Rank of 2.

Martin Marietta’s earnings beat estimates in two of the last four quarters and missed on the remaining two occasions, the negative average surprise being 0.9%. Martin Marietta’s earnings for the third quarter of 2025 are expected to grow 12.5%.

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

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