Quanta Beats Q3 Earnings & Revenue Estimates, Revises '25 View

Quanta Services, Inc. PWR posted a robust third-quarter 2025 performance, highlighted by double-digit revenue growth and margin expansion. The company benefited primarily from heightened demand in its Electric segment, which continues to gain traction as utilities and large-scale customers accelerate investments in power generation and grid modernization projects.

In the third quarter of 2025, Quanta completed the acquisition of Dynamic Systems, a leading provider of turnkey mechanical, plumbing and process infrastructure services. The company brings a broad customer base and strong presence in high-growth sectors such as technology, semiconductors and healthcare. Its results will primarily be reflected in Quanta’s Underground and Infrastructure segment.

More on Quanta’s Q3 Earnings & Revenues

Quanta’s adjusted EPS came in at $3.33, up 22.4% year over year and above the Zacks Consensus Estimate of $3.25. The outperformance was led by revenue scale and operating leverage, as well as contributions from acquisitions.

Quanta reported revenues of $7.63 billion, up 17.6% year over year and ahead of the Zacks Consensus Estimate of $7.45 billion. The metric was driven by sustained strength in both Electric Infrastructure and Underground Utility segments.

Quanta’s Q3 Margins: Broad-Based Expansion

Gross margin expanded to 15.9% from 15.6%, supported by favorable project execution and scale benefits. Adjusted EBITDA grew 25.7% year over year to $858.3 million, representing an adjusted EBITDA margin of 11.2%, up from 10.5%. Consolidated operating income rose to $517.2 million (up 20% year over year) with a 6.8% margin, up 20 basis points from the prior-year period.

Quanta’s Backlog and Project Wins: Momentum Continues

Quanta ended the third quarter with a record total backlog of $32.64 billion, up from $27.52 billion a year ago, underscoring robust demand visibility. Remaining performance obligations rose to $19.1 billion.

Quanta’s Segment Details

The company reports results under two segments — Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions.

Electric (80.9% of total revenues) delivered $6.17 billion in revenues, up 17.9% year over year. Our model predicted segment revenues to grow 12.7% year over year to $5.9 billion. Segment operating margin was 11.4% (in line with our expectation), improving from 11% in the year-ago quarter. 

Underground and Infrastructure (19.1% of total revenues) contributed $1.46 billion in revenues (above our projection of $1.43 billion), up 15.9% year over year. Segment margin stood at 8.4% (below our expectation of 8.5%), higher than the 7.5% reported a year ago. Growth was supported by recent acquisitions in utility construction and civil infrastructure.

Quanta’s Balance Sheet

As of Sept. 30, 2025, Quanta held $610.4 million in cash and cash equivalents (down from $742 million at 2024-end). Long-term debt increased to $5.53 billion from $4.10 billion at the end of 2024. Free cash flow stood at $726.3 million, down from $979.3 million a year ago. Quanta repurchased 538,559 shares for $134.6 million, with $365.1 million remaining under its buyback program.

Quanta’s Outlook for 2025 Revised

Encouraged by the strong third-quarter results and recent acquisitions, Quanta raised its full-year 2025 outlook. It now expects revenues between $27.8 billion and $28.2 billion (up from $27.4 billion and $27.9 billion), and adjusted EPS in the range of $10.33 to $10.83 (compared with the prior estimate of $10.28 to $10.88). Adjusted EBITDA is forecasted to range from $2.77 billion to $2.88 billion (compared with the prior estimate of $2.76 billion to $2.89 billion).

PWR’s Zacks Rank

Quanta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some Recent Construction Releases

Masco Corporation MAS posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year. The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment.

The ongoing uncertainties in the global economy and tariff-related risks are restricting Masco’s near-term prospects. Masco expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024). Adjusted EPS is now expected to be between $3.90 and $3.95 compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.

United Rentals, Inc.’s URI third-quarter 2025 EPS missed the Zacks Consensus Estimate and revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.

United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.

D.R. Horton, Inc. DHI reported mixed fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results, with earnings missing Zacks Consensus Estimate, while the total revenues beat the same.  On a year-over-year basis, both metrics declined.

The continued housing market softness due to declining consumer confidence and affordability concerns marred D.R. Horton’s quarterly performance, resulting in lower home closings. Although the company is actively engaging in offering necessary sales incentives to drive traffic and incremental sales, it is adversely impacting the bottom line. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility.

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

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