Quanta Raises Outlook as Electric Work Powers Earnings
The infrastructure contractor’s backlog reached a record $53.4 billion at quarter-end.
Quanta Services (PWR), an infrastructure-solutions provider, posted a 41.1% increase in second-quarter revenue as stronger Electric-segment activity drove faster growth and wider margins.
The quarter marked a sharp acceleration after revenue was roughly flat between the fourth quarter of 2024 and the first quarter of 2025. Adjusted earnings and cash generation also rebounded, while remaining performance obligations climbed 28.2% sequentially to $33.6 billion.
Revenue rose to $9.56 billion from $6.77 billion a year earlier and increased 21.4% from the first quarter. Net income nearly doubled to $451.4 million, and diluted earnings rose to $2.96 a share from $1.52. Adjusted earnings increased 71% to $4.24 a share, reversing the previous quarter’s decline to $2.68.
Electric-segment revenue grew 43.6% to $7.84 billion, lifting the business to 82% of Quanta’s revenue. Its operating margin widened to 11.5% from 10.1%. Underground and Infrastructure revenue increased 30.7% to $1.72 billion, while its margin rose to 9.1% from 6.9%.
Those gains helped expand Quanta’s consolidated operating margin to 7.3% from 5.5%, with operating income rising 87.6% to $694.8 million. Gross margin increased to 16.2% from 14.9%, and adjusted earnings before interest, taxes, depreciation and amortization reached about $1.1 billion.
Quanta raised its 2025 outlook for a second consecutive quarter. The company now expects revenue of $39.3 billion to $39.7 billion, adjusted earnings of $16.45 to $16.95 a share and adjusted EBITDA of $4.09 billion to $4.21 billion. It projects free cash flow of $2 billion to $2.5 billion after second-quarter free cash flow recovered to about $900 million.
Four newly disclosed acquisitions are expected to contribute $1.2 billion to $1.4 billion of 2025 revenue, mostly in the Electric segment. The three deals completed during the second quarter did not materially contribute to the period’s results, and Enerfab closed in July. Quanta also added a $1 billion share-repurchase authorization after spending about $135 million under the program that expired June 30.