Quanta is Set to Report Q3 Earnings: Here's What Investors Must 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 each of the trailing four quarters, with the average surprise of 5.7%.

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. The revised 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.

Quanta Services, Inc. Price and EPS Surprise

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

Factors Likely to Have Defined Quanta’s Q3 Performance

Revenues

During the third quarter, Quanta’s top-line performance is expected to have trended upward on the back of favorable public infrastructure demand, fueled by several federal and state funding initiatives. Amid this booming market backdrop, the company is likely to have witnessed increased project activity in high-voltage transmission, grid modernization and renewable energy, supported by ongoing customer investments in electrification, technology-driven load centers and manufacturing reshoring.

The market fundamentals can be substantiated from the expected increased contributions from the Electric Infrastructure Solutions (contributed 80.6% to second-quarter 2025 revenues) and Underground Utility and Infrastructure Solutions (contributed 19.4% to second-quarter 2025 revenues) segments. For the quarter to be reported, Quanta expects revenues from the Electric Infrastructure Solutions segment to grow at a double-digit rate year over year, while the same for the Underground Utility and Infrastructure Solutions segment is expected to increase sequentially from $1.31 billion reported in the second quarter of 2025.

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 12.7% to $5.9 billion and 13.2% to $1.43 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

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

PWR expects the operating margin in the Electric Infrastructure Solutions and the Underground Utility and Infrastructure Solutions segments to be the highest in the third quarter compared with 11% and 7.5% reported in the year-ago period, respectively.

Per our model, the company’s overall operating margin is expected to expand 10 basis points (bps) from a year ago to 6.7% in the quarter to be reported. We also expect the adjusted EBITDA margin to grow 70 bps year over year to 11.2%.

Segment-wise, our model predicts the operating margin in the Electric Infrastructure Solutions segment to expand 40 bps to 11.4%, while that for the Underground Utility & Infrastructure Solutions segment is expected to increase 100 bps to 8.5%.

What Our Model Predicts for Quanta

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 stock currently carries a Zacks Rank of 2. 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.

Vulcan Materials Company VMC currently has an Earnings ESP of +2.87% and a Zacks Rank of 2.

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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