Quanta Q4 Earnings & Revenues Beat Estimates on Electric Strength

Quanta Services, Inc. PWR reported record fourth-quarter 2025 results, driven by robust demand in its Electric Infrastructure Solutions segment and contributions from recent acquisitions. Strong execution and expanding backlog supported growth, sending shares up nearly 5% in pre-market trading following the announcement.

More on Quanta’s Q4 Earnings & Revenues

In the fourth quarter of 2025, Quanta’s adjusted diluted earnings per share (EPS) came in at $3.16, reflecting a 7.5% increase from $2.94 in the prior-year quarter and exceeding the Zacks Consensus Estimate of $3.00. Earnings growth was supported by higher revenues and improved operating leverage, partially offset by acquisition-related costs and higher amortization of intangibles.

Total revenues increased 19.7% year over year to $7.84 billion, surpassing the Zacks Consensus Estimate of $7.28 billion. Growth was primarily fueled by accelerating utility investments, power generation and load-center related projects within the Electric segment, along with incremental contributions from acquired businesses, including Tri-City, Wilson and Billings.

Quanta’s Q4 Margins Reflect Scale Benefits, Acquisition Costs

Gross profit increased to $1.22 billion in the fourth quarter from $1.06 billion in the prior-year quarter, supported by higher revenue volume and improved project execution. However, gross margin moderated to approximately 15.5% from roughly 16.2% a year ago, reflecting revenue mix, integration expenses and higher cost absorption from recently acquired businesses.

Operating income rose to $484.9 million from $452.7 million a year ago, though operating margin declined to 6.2% from 6.9% in the year-ago period. The margin compression was largely attributable to elevated amortization of intangible assets, stock-based compensation and acquisition and integration expenses tied to Quanta’s active M&A strategy.

Adjusted EBITDA increased to $845.3 million from $737.8 million, benefiting from higher revenues and project scale. However, adjusted EBITDA margin was approximately 10.8%, slightly below the prior-year level due to cost pressures and integration impacts.

Quanta Services, Inc. Price, Consensus and EPS Surprise

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

Quanta’s Segment Details

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

Electric (81% of fourth-quarter total revenues) reported $6.43 billion in revenues, up sharply from $5.38 billion last year, driven by strong demand for transmission, distribution and load-center infrastructure projects. Segment operating income rose to $695.6 million, though margin eased to 10.8% from 12.1%, reflecting integration costs and project mix.

Underground and Infrastructure (18% of total revenues) revenues climbed to $1.41 billion from $1.17 billion, supported by pipeline, communications and civil infrastructure activity. Segment operating income surged to $108.5 million from $42.6 million, with margin expanding to 7.7% from 3.6%, driven by improved execution and the absence of prior-year headwinds.

Total backlog reached a record $43.98 billion at 2025-end, up from $34.54 billion at year-end 2024, underscoring sustained infrastructure demand and providing visibility into 2026.

Quanta’s Balance Sheet

As of Dec. 31, 2025, Quanta held $439.5 million in cash and cash equivalents (down from $742 million at 2024-end). Long-term debt, net of current maturities, increased to $5.23 billion from $4.10 billion, reflecting borrowings under its commercial paper program to fund acquisitions.

In 2025, operating cash flow totaled $2.23 billion (up from $2.08 billion in 2024),, while free cash flow was $1.67 billion (up from $1.55 billion in 2024), supported by earnings growth and disciplined capital expenditures.

Quanta’s 2025 Highlights

Quanta closed 2025 with record financial performance, reflecting strong execution, sustained infrastructure demand and contributions from acquisitions completed during the year.

In 2025, revenues increased to $28.48 billion from $23.67 billion in 2024, representing solid double-digit growth. The expansion was primarily driven by heightened activity in Electric Infrastructure Solutions, including transmission, distribution, power generation and load-center projects, along with incremental revenue from acquired businesses.

Adjusted EPS rose to $10.75 from $8.97 in 2024, reflecting improved operating leverage, higher project volume and disciplined cost control. Growth in adjusted earnings was supported by scale benefits across core end markets, partially offset by higher amortization and acquisition-related expenses.

Adjusted EBITDA climbed to $2.88 billion from $2.33 billion a year ago. The improvement was driven by stronger project execution, revenue mix and increased demand across utility and infrastructure markets.

Quanta’s 2026 Outlook Signals Continued Momentum

For 2026, Quanta expects revenues between $33.25 billion and $33.75 billion, reflecting double-digit growth. GAAP EPS is projected to be in the range of $8.36–$9.06, while adjusted EPS is expected to be in the range of $12.65–$13.35, supported by record backlog, continued utility spending and anticipated contributions from recent acquisitions.

The company anticipates EBITDA of $3.09–$3.25 billion and adjusted EBITDA of $3.34–$3.50 billion. Operating cash flow is projected to be between $2.30 billion and $2.85 billion, with free cash flow (non-GAAP) expected to be in the range of $1.55–$2.05 billion for full-year 2026.

Management expects another year of double-digit earnings growth, positioning Quanta to capitalize on sustained grid modernization and large-load infrastructure investments.

PWR’s Zacks Rank

Quanta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some Recent Construction Releases

Jacobs Solutions Inc. J reported stellar first-quarter fiscal 2026 (ended Dec. 26, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and growing year over year.

Jacobs' quarterly results reflect stronger performance in the life sciences, data center, semiconductor, water and transportation sectors, alongside increased demand for digital consulting services, bolstering the quarter’s uptrend. With the announcement of acquiring the remaining stake in PA Consulting and favorable market fundamentals, Jacobs is optimistic about its performance in the remaining fiscal 2026. Adjusted net revenues are now expected to grow year over year between 6.5% and 10%, with adjusted EPS expected to be between $6.95 and $7.30.

United Rentals, Inc. URI reported lower-than-expected fourth-quarter 2025 results, with adjusted EPS and total revenues both missing the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.

United Rentals’ fourth-quarter revenues improved year over year due to increased fleet productivity and strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism and healthy backlogs contributed to the overall strength. United Rentals expects to see continued growth in large projects and strong performance in the specialty segment. URI’s board of directors hiked the quarterly dividend payment by 10% to $1.97 per share ($7.88 per share annually).

Fluor FLR reported tepid fourth-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate and declining on a year-over-year basis.

Fluor management expects 2026 book-to-burn to exceed 1, supported by improving client confidence and prospects across LNG, gas-fired power, nuclear, mining and advanced technologies. Additionally, Fluor outlined a 2026 adjusted EBITDA target of $525-$585 million, reflecting confidence in margin quality and execution discipline under its “Grow & Execute” strategy.

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