10-QPeriod: Q3 FY2025

QUANTA SERVICES, INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:PWR

Summary

Quanta Services, Inc. (PWR) reported strong revenue growth in the third quarter and first nine months of 2025, driven by robust demand in its Electric Infrastructure Solutions segment and continued strength in Underground Utility and Infrastructure Solutions. The company's strategic acquisitions, particularly Dynamic Systems (DSI) and Cupertino Electric Inc. (CEI), are contributing significantly to revenue and expanding service capabilities in key growth areas like data centers and renewable energy infrastructure. Despite increased operating expenses due to these acquisitions and higher amortization costs, Quanta demonstrated solid operating income growth, reflecting improved operational execution and a favorable mix of work. Financially, Quanta maintained a strong liquidity position, supported by significant cash flow from operations and an extended senior credit facility. The company also saw substantial growth in its backlog and remaining performance obligations, indicating continued demand for its services in the near to medium term.

Financial Highlights

52 data points
Beta

Revenue

$7.63B

15.9% Gross Margin

Net Income

$339.42M

4.4% Net Margin

EPS (Diluted)

$2.24

Total Assets

$22.74B

Cash & Equivalents

$610.39M

Free Cash Flow

$421.05M

Financial Statements
Beta
Revenue$7.63B
Cost of Revenue$6.41B
Gross Profit$1.22B
SG&A Expenses$572.95M
Operating Income$517.22M
Net Income$339.42M
EPS (Basic)$2.28
EPS (Diluted)$2.24
Shares Outstanding (Basic)149.04M
Shares Outstanding (Diluted)151.50M

Key Highlights

  • 1Consolidated revenues increased by 17.5% to $7.63 billion for the three months ended September 30, 2025, and by 20.6% to $20.64 billion for the nine months ended September 30, 2025, year-over-year.
  • 2Operating income grew by 20.0% to $517.2 million for the three months ended September 30, 2025, and by 26.1% to $1.13 billion for the nine months ended September 30, 2025.
  • 3The Electric Infrastructure Solutions segment remains the largest revenue driver, with revenues up 17.9% and 11.4% operating margin for the quarter.
  • 4Strategic acquisitions, including Dynamic Systems and Cupertino Electric Inc., contributed significantly to revenue growth and expanded service offerings, particularly in technology and data center markets.
  • 5Remaining performance obligations and backlog saw substantial increases, reaching $20.97 billion and $39.17 billion, respectively, as of September 30, 2025.
  • 6Net cash provided by operating activities was $1.10 billion for the nine months ended September 30, 2025, though this represents a decrease from the prior year's period.
  • 7The company successfully issued $1.50 billion in senior notes in August 2025, bolstering its financial flexibility and liquidity.

Frequently Asked Questions

Revenue growth is primarily driven by strong demand in the Electric Infrastructure Solutions segment, fueled by utility investments in grid modernization, renewable energy infrastructure, and the electrification trend. Additionally, strategic acquisitions, particularly Dynamic Systems, are contributing to growth in the Underground and Infrastructure segment, expanding capabilities in high-demand areas like data centers and semiconductor facilities.

Recent acquisitions, such as Dynamic Systems and Cupertino Electric Inc., are significantly contributing to revenue growth and expanding the company's service offerings and market reach. While these acquisitions have led to increased operating expenses, including higher amortization, they are also driving profitable growth, as evidenced by improved operating income and margins in the reporting segments.

Quanta's backlog and remaining performance obligations have increased substantially, reaching $39.17 billion and $20.97 billion, respectively, as of September 30, 2025. This indicates strong future demand for the company's services, supported by ongoing investments in critical infrastructure, renewable energy, and technology-related projects.

Quanta maintains a strong liquidity position, supported by robust cash flow from operations and a significant amount of available commitments under its senior credit facility. The company recently issued $1.50 billion in senior notes, which helped repay borrowings and maintain financial flexibility. Management expects current liquidity and future cash flows to be sufficient for its operational and strategic needs.