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Quanta Beats Q1 Earnings & Revenue Estimates, Boosts 2025 View

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Quanta Services Inc. (PWR - Free Report) reported solid results for the first quarter of 2025, wherein adjusted earnings and revenues beat the Zacks Consensus Estimate, respectively. Both the top and bottom lines grew year over year. Shares of this leading national provider of specialty contracting services gained 4.6% following the release on Thursday.

CEO Duke Austin highlighted robust double-digit growth in revenues, adjusted EBITDA, and adjusted EPS, supported by improved profitability across both the Electric Infrastructure Solutions and Underground and Infrastructure Solutions segments. The company also raised its full-year 2025 guidance for revenues, adjusted EBITDA, and adjusted earnings per share (EPS).

Quanta emphasized the resilience of its business model and its ability to deliver consistent, profitable growth in varying market conditions. The company cited strong execution, financial liquidity, and strategic expansion efforts as key drivers of performance.

Additionally, Quanta completed two acquisitions in early 2025, building on eight acquisitions made in 2024. These contributed to year-over-year growth, though specific adjustments for comparability were applied to isolate organic results and present non-GAAP performance metrics.

Quanta Services, Inc. Price, Consensus and EPS Surprise

Quanta Services, Inc. Price, Consensus and EPS Surprise

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

More on Quanta’s Q1 Results

Quanta’s adjusted EPS of $1.78 topped the consensus estimate of $1.66 by 7.2% and increased 26.2% from the year-ago quarter’s $1.41. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total revenues of $6.23 billion topped the consensus mark of $5.87 billion by 6.1% and increased 23.9% year over year.

The operating margin for the quarter expanded 70 basis points (bps) to 3.8% from a year ago. Adjusted EBITDA of $503.9 million improved 30.1% from the year-ago quarter.

The company reported a 12-month backlog of $19.42 billion and a total backlog of $35.25 billion at the end of the first quarter. This compares with the March 2024-end 12-month backlog of $16.64 billion and the total backlog of $29.9 billion.

Quanta’s Segment Details

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

Revenues from Electric totaled $4.94 billion, which grew 26.4% year over year. The reported figure came ahead of our expectation of $4.69 billion for the quarter. The operating margin jumped 60 bps to 8.3% (below our projection of 8.5%) in the quarter from a year ago. The segment’s 12-month backlog was $16.37 billion, up from $13.69 billion a year ago. The total backlog was $29.7 billion compared with $23.8 billion at March 2024-end.

Revenues from Underground and Infrastructure totaled $1.29 billion (below our expectation of $2.21 billion), up 15% year over year. Yet, operating margins expanded 180 bps from the year-ago level to 6% (above our projection of 5.6%). The total backlog of $5.55 billion decreased from $6.1 billion a year ago.

Quanta’s Balance Sheet & Cash Flow

As of March 31, 2025, Quanta had cash and cash equivalents of $520.6 million, down from $742 billion at 2024-end. The company’s long-term debt (net of current maturities) amounted to $4.36 billion, up from $4.1 billion as of Dec. 31, 2024.

Net cash provided by operating activities was $243.2 million in the first quarter, up from $238 million a year ago. Free cash flow in the quarter was $117.8 million, down from $181.2 million a year ago.

What Quanta Expects for 2025

Quanta expects revenues between $26.7 and $27.2 billion (versus $26.6 billion and $27.1 billion expected earlier). The company reported revenues of $23.67 billion in 2024.

The company expects adjusted EPS in the range of $10.05-$10.65 (versus earlier projection of $9.90-$10.50), representing an increase from $8.97 in 2024. Adjusted EBITDA is projected to be between $2.68 and $2.81 billion (versus earlier expectations of $2.66 and $2.80 billion) compared with $2.33 billion in 2024.

Quanta still expects 2025 operating cash flow between $1.70 billion and $2.25 billion and free cash flow between $1.20 billion and $1.70 billion.

PWR’s Zacks Rank & Recent Construction Releases

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

Masco Corporation (MAS - Free Report) posted weaker-than-expected results for the first quarter of 2025, with both earnings and revenues falling short of the Zacks Consensus Estimate. The company reported adjusted EPS of 87 cents, down from 93 cents a year ago. Net sales of $1.8 billion declined 6% from the prior-year period. Excluding divestitures, net sales of Masco declined 3% year over year in local currency.

Citing ongoing uncertainty around how these external developments will affect industry-wide demand, pricing dynamics and input costs, Masco’s management has refrained from providing full-year 2025 financial guidance.

UFP Industries, Inc. (UFPI - Free Report) reported tepid results for the first quarter of 2025. Both earnings and net sales missed the Zacks Consensus Estimate and declined year over year.

The quarterly results of UFP Industries were affected by softer demand and broad-based pricing pressures. While economic challenges are expected to persist in 2025, UFP Industries noted sequential improvement in business activity throughout the quarter, which continued into April.

Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results for first-quarter 2025, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased but the bottom line declined.

Martin Marietta expects total revenues of $6.830-$7.230 billion, up from $6.54 billion in 2024. Adjusted EBITDA is projected to be between $2.150 billion and $2.350 billion, up from $2.07 billion reported in 2024.

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