Quanta’s first quarter results were met with a strong positive reaction from the market, underscored by double-digit revenue growth and robust order activity. Management attributed the performance to rising demand for grid modernization and essential infrastructure upgrades, particularly from utilities and data center operators. CEO Duke Austin emphasized the company’s ability to deliver “comprehensive self-perform infrastructure solutions,” noting that Quanta’s integrated approach and skilled labor force provided a competitive edge in tackling large, complex projects. The company also highlighted the benefits of its diversified portfolio, with continued momentum across renewable energy, transmission, and technology-driven projects.
Is now the time to buy PWR? Find out in our full research report (it’s free).
Quanta (PWR) Q1 CY2025 Highlights:
- Revenue: $6.23 billion vs analyst estimates of $5.87 billion (23.9% year-on-year growth, 6.2% beat)
- Adjusted EPS: $1.78 vs analyst estimates of $1.66 (6.9% beat)
- Adjusted EBITDA: $503.9 million vs analyst estimates of $478.7 million (8.1% margin, 5.3% beat)
- The company slightly lifted its revenue guidance for the full year to $26.95 billion at the midpoint from $26.85 billion
- Management raised its full-year Adjusted EPS guidance to $10.35 at the midpoint, a 1.5% increase
- EBITDA guidance for the full year is $2.75 billion at the midpoint, above analyst estimates of $2.72 billion
- Operating Margin: 3.8%, in line with the same quarter last year
- Backlog: $35.25 billion at quarter end, up 17.9% year on year
- Market Capitalization: $55.44 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Quanta’s Q1 Earnings Call
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Ameet Thakkar (BMO Capital Markets) asked about the Long Island grid operator opportunity and its impact on guidance. CEO Duke Austin clarified that this was not included in the company’s forecasts and described such arrangements as occasional but not core to the business.
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Andy Kaplowitz (Citi Research) inquired about the scale and timeline of high-voltage transmission projects. Austin compared the current environment to major expansions in the 1970s, emphasizing Quanta’s established role and expectation of continued backlog growth.
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Joe Osha (Guggenheim Partners) questioned the impact of new solar module tariffs. Austin stated Quanta has not seen significant customer disruption and that its diversified portfolio allows it to weather potential shifts.
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Jamie Cook (Truist Securities) pressed on whether a shift to larger projects would drive margin expansion. Austin responded that training costs for a growing workforce would keep margins steady, but returns on invested capital are expected to improve.
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Steven Fisher (UBS) asked about M&A strategy and expansion into new solution areas. Austin said M&A would remain opportunistic, with a focus on acquiring companies that add strategic capabilities or fill portfolio gaps.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will watch (1) the pace at which new high-voltage transmission projects are booked and executed, (2) evidence of continued growth in data center and technology infrastructure orders, and (3) the company’s ability to manage supply chain and tariff-related headwinds without major project delays. Progress on integrating recent acquisitions and capturing synergy benefits will also be key indicators of future performance.
Quanta currently trades at $374.50, up from $292.41 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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