01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported strong financial performance for the second quarter and first half of 2025, driven by robust demand across its Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions segments.
Consolidated revenues surged by 21.1% year-over-year for the quarter, reaching $6.77 billiona, and by 22.4% to $13.01 billion for the first half. This growth was fueled by increased investment in grid modernization, renewable energy infrastructure, and demand from data centers and industrial sectors. Profitability also saw significant improvement, with operating income up 20.5% to $370.3 million for the quarter and 31.7% to $609.4 million for the first half.
The company's strategic acquisitions, notably Cupertino Electric Inc. (CEI) and the recent acquisition of Dynamic Systems (DSI), are contributing positively to revenue and results. Quanta's backlog and remaining performance obligations remain strong, indicating continued revenue visibility for the foreseeable future. The company also announced an extension of its senior credit facility maturity date, reinforcing its liquidity position.
02—Key points
Key Highlights
- Consolidated revenues increased by 21.1% to $6.77 billion for the three months ended June 30, 2025, and by 22.4% to $13.01 billion for the six months ended June 30, 2025, compared to the prior year periods.
- Operating income rose by 20.5% to $370.3 million for the three months ended June 30, 2025, and by 31.7% to $609.4 million for the six months ended June 30, 2025, year-over-year.
- The Electric Infrastructure Solutions segment saw revenue growth of 21.6% for the quarter and 23.9% for the six months, driven by utility investments and renewable energy demand.
- The company completed the acquisition of Dynamic Systems (DSI) for approximately $1.35 billion in July 2025, expanding its offerings in mechanical, plumbing, and process infrastructure.
- Remaining performance obligations increased by 14.3% to $19.16 billion as of June 30, 2025, compared to December 31, 2024, indicating strong future revenue visibility.
- Total backlog also grew by 3.8% to $35.84 billion as of June 30, 2025, compared to December 31, 2024.
- The company's liquidity remains strong, with available commitments under its senior credit facility and cash totaling $2.64 billion as of June 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Quanta Services kept $0.03.
- Revenue$6.77B100.0%
- Cost of revenue−$5.77B85.1%
- Gross profit$1.01B14.9%
- Operating costs−$637.3M9.4%
- Operating income$370.3M5.5%
- Interest, other & tax−$141.0M2.1%
- Net income$229.3M3.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $6.77B$5.59B | +21.1% |
| Cost of Revenue | $5.77B$4.78B | +20.5% |
| Gross Profit | $1.01B$811.33M | +24.2% |
| SG&A Expenses | $528.36M$432.36M | +22.2% |
| Operating Income | $370.28M$307.23M | +20.5% |
| Net Income | $229.25M$188.16M | +21.8% |
| EPS (Basic) | $1.54$1.28 | +20.3% |
| EPS (Diluted) | $1.52$1.26 | +20.6% |
| Shares Outstanding (Basic) | 148.45M146.58M | +1.3% |
| Shares Outstanding (Diluted) | 150.92M149.79M | +0.8% |
05—Questions
Frequently Asked Questions
What drove the significant increase in Quanta's revenue in the second quarter of 2025?
Quanta's revenue increase was driven by strong demand in both its Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions segments. Key factors include increased utility investments in grid modernization, renewable energy infrastructure, and demand from data centers and industrial clients. Acquisitions made in the past year, such as Cupertino Electric Inc. (CEI) and the recent acquisition of Dynamic Systems (DSI), also contributed significantly to revenue growth.
How did Quanta's profitability change in the first half of 2025?
Profitability improved substantially in the first half of 2025. Operating income increased by 31.7% to $609.4 million compared to the same period in 2024. This improvement was attributed to revenue growth, better operating margins in some areas, and effective management of costs, though offset partially by increased corporate and non-allocated costs like amortization expense from recent acquisitions.
What is the outlook for Quanta's future business based on its backlog and remaining performance obligations?
The outlook appears positive, supported by a strong backlog and remaining performance obligations. As of June 30, 2025, remaining performance obligations stood at $19.16 billion, an increase from the prior year-end, and the total backlog reached $35.84 billion, also higher than at the end of 2024. This indicates a substantial amount of contracted work that is expected to be recognized as revenue in the coming periods.
What are the key financial implications of Quanta's recent acquisitions, particularly Dynamic Systems (DSI)?
The acquisition of Dynamic Systems (DSI) in July 2025 for approximately $1.35 billion is a significant strategic move, expanding Quanta's capabilities in the mechanical, plumbing, and process infrastructure sectors, primarily within the technology, semiconductor, and healthcare markets. Acquisitions in general are contributing to revenue growth and are reflected in increased amortization expenses. While these acquisitions bolster top-line growth and market reach, they also increase the company's intangible assets and associated amortization charges.
06—Continue