Executive Summary

Strong Q3: revenue rose 17.5% YoY to $7.63B with GAAP EPS $2.24 and adjusted EPS $3.33; record backlog reached $39.2B and RPO $21.0B . EPS and revenue exceeded S&P Global consensus, while EBITDA came in below S&P’s EBITDA consensus; adjusted EBITDA was a quarterly record at $858.3M .*
Guidance: management raised FY25 revenue to $27.8–$28.2B and reiterated adjusted EPS of $10.33–$10.83; FY25 adjusted EBITDA is $2.77–$2.88B, with FCF expected at $1.3–$1.7B (CFO noted midpoint raised to ~$1.5B) .
Strategic update: launched “Total Solutions” power generation platform and announced selection by NiSource for an integrated program capable of ~3 GW (50/50 JV with Zachry); scope/estimation underway, execution expected to begin 2026, with phased delivery through 2032 (not meaningfully in Q3 backlog) .
Capital & cash: YTD CFO $1.10B and FCF $726.3M; Q3 FCF was $438.1M. Year-to-date repurchased ~539k shares for $134.6M; declared a 10% dividend increase to $0.11/share (payable Jan 12, 2026) .

What Went Well and What Went Wrong

What Went Well
- Record demand and execution: “double-digit growth in revenue, adjusted EBITDA and adjusted EPS… alongside record backlog of $39.2 billion,” driven by accelerating Electric segment and broad end-market strength .
- Electric segment strength and margin expansion: Electric revenue grew to $6.17B with operating margin of 11.4% vs. 11.0% YoY; Underground & Infrastructure also improved to 8.4% margin .
- Platform expansion wins: Announced expanded power generation solutions platform; selected by NiSource for ~3 GW of generation plus storage, transmission, substation and underground—expected to be recognized over multiple quarters as it moves to execution .
What Went Wrong
- EBITDA vs S&P consensus: S&P’s EBITDA consensus exceeded S&P “actual” EBITDA for Q3 (miss on S&P basis), though company-reported adjusted EBITDA was a record $858.3M .*
- Higher non-cash amortization and M&A costs: Amortization rose to $133.2M in Q3 (vs. $110.4M YoY); acquisition/integration costs were $25.2M vs. $7.1M YoY, increasing corporate/non-allocated expense .
- Affordability/regulatory timing still a watch item: Management highlighted weather, permitting, supply chain, inflation, interest rates and regulatory factors that can affect timing; affordability considerations shape pacing of large T&D and generation programs .

Financial Results

Q3 2025 Actual vs S&P Global Consensus

Metric	Q3 2025 Actual	S&P Consensus	Surprise
Revenue ($B)	$7.63	$7.42*	+$0.21
Primary EPS	$3.33 (adjusted diluted)	$3.26*	+$0.07
EBITDA ($B)	$0.78 (S&P “actual”)*	$0.83*	-$0.05

Note: Company-reported adjusted EBITDA was $0.86B (record) . Values marked with * are retrieved from S&P Global.

Quarterly trend – revenue, EPS, adj. EPS, adj. EBITDA

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($B)	$6.23*	$6.77*	$7.63
GAAP Diluted EPS	$0.96	$1.52	$2.24
Adjusted Diluted EPS	$1.78	$2.48	$3.33
Adjusted EBITDA ($B)	$0.50	$0.67	$0.86

Values without citations are from S&P Global (Revenue for Q1, Q2). Values retrieved from S&P Global.

Segment performance (Q3 2025 vs Q3 2024)

Segment	Revenue Q3’24 ($B)	Revenue Q3’25 ($B)	Op. Margin Q3’24	Op. Margin Q3’25
Electric	$5.23	$6.17	11.0%	11.4%
Underground & Infrastructure	$1.26	$1.46	7.5%	8.4%
Consolidated	$6.49	$7.63	6.6%	6.8%

KPIs and balance sheet (Q3 2025)

Backlog: $39.17B; RPO: $20.97B (Electric backlog $32.64B; Underground & Infrastructure backlog $6.53B) .
YTD cash from operations: $1.10B; YTD FCF: $726.3M; Q3 FCF: $438.1M .
Cash and cash equivalents: $610.4M; LT debt: $5.53B; current maturities: $97.4M .
Weighted avg diluted shares (Q3): 151.50M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	$27.4–$27.9B	$27.8–$28.2B	Raised
Adjusted EPS	FY2025	$10.28–$10.88	$10.33–$10.83	Maintained (slight midpoint tweak)
Adjusted EBITDA	FY2025	$2.76–$2.89B	$2.77–$2.88B	Maintained
GAAP Diluted EPS	FY2025	N/A (not specified in Q2)	$6.53–$7.02	New range provided
CFO	FY2025	N/A in Q2	$1.85–$2.25B	Provided
Free Cash Flow	FY2025	N/A in Q2	$1.30–$1.70B; CFO noted midpoint ~$1.5B	Provided / midpoint raised in commentary

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025, Q1 2025)	Current Period (Q3 2025)	Trend
AI/data center load growth & solutions	Emphasis on technology TAM (~$300B) and Cupertino/Dynamic Systems to expand MEP/inside electrical; platform approach to serve data centers and semis	“Total Solutions” generation platform; can “build basically the whole data center… generation behind it all the way to the rack”; pursuing integrated grid+generation+MEP solutions	Strengthening
High-voltage transmission (incl. 765 kV)	Early stages of large transmission build; LNTPs strong; expected to stack; 765 kV visibility across RTOs; bookings timing discussed	765 projects not yet in backlog; expect more to come; reinforced demand drivers (PJM/MISO/Texas)	Building pipeline
Power generation (CCGT JV risk)	Q1: would avoid taking undue risk in gas generation EPC	JV with Zachry for ~3 GW CCGTs; collaborative structure, “not taking risk” on large projects; proportional consolidation; execution starting 2026	Formalized strategy
Renewables & storage	Strong backlog; batteries robust; customers safe-harbored; IRA/tariff noise manageable	Renewable/storage inbounds “great”; fastest to market; backlog strong; storage growing	Sustained strength
Pipelines & gas infrastructure	2025 guided to ~$500M for large pipe; selective risk, permitting challenges; LNG takeaway opportunities	Conversations daily; selective approach; de-risk focus maintained	Stable/Selective
Affordability, regulation, macro	Managing tariffs, permitting, IRA timing; portfolio flexibility	Emphasis on affordability/NPV-positive transmission; collaborative utility/tech funding models	Heightened focus

Management Commentary

“Quanta delivered another quarter of strong results… record backlog of $39.2 billion… accelerating demand in our Electric segment” — Duke Austin, CEO .
“We are well positioned to achieve record backlog and another year of double-digit earnings per share growth in 2026.”
On NiSource: “Design, procurement and construction… capable of producing approximately 3 gigawatts of power… spanning power generation, battery energy storage, transmission, substation and underground infrastructure” .
CFO on cash and capital: “We are raising our full year free cash flow expectations to $1.5 billion at the midpoint… issued $1.5 billion of notes… approximately 40 bps lower… reflecting… ratings upgrade” .

Q&A Highlights

Transmission 765kV: Strong customer engagement with AEP and others; none of the 765kV yet in backlog; expects opportunities; focus on resource/training readiness .
JV risk structure: Company reiterated it will not take certain kinds of risk on large CCGT projects; collaborative, de-risked commercial terms with NiSource/Zachry .
Data centers/MEP scope: Capable to “build basically the whole data center… generation behind it all the way to the rack”; leveraging Cupertino and Dynamic Systems for inside electrical and mechanical work .
Pipelines: Large pipe kept selective; watch weather/permitting; 2026 could see opportunities but Quanta remains disciplined and de-risk focused .
Backlog timing for NiSource: LNTP now; air permit mid-2026; revenue more meaningful in 2H26–2027/2028; proportional consolidation .

Estimates Context

Q3 beat/miss vs S&P Global: Revenue beat by ~$0.21B; EPS beat by ~$0.07; EBITDA came in below S&P consensus on S&P’s EBITDA basis, though company-reported adjusted EBITDA was a record $858M.* S&P Global values used for consensus comparisons.
Outlook implications: Raised FY25 revenue range to $27.8–$28.2B, with adjusted EPS and adjusted EBITDA ranges maintained; consensus models should reflect the higher revenue range, strong Electric segment momentum, and the phased timing of NiSource contributions (execution begins 2026, not meaningful in current backlog) .

Key Takeaways for Investors

Core thesis intact: Multi-year grid and load growth (AI/data centers, manufacturing) underpin record backlog and rising Electric margins; disciplined risk posture on large EPC .
Momentum into 2026: Management signaling another year of double-digit EPS growth in 2026, supported by backlog and platform expansion .
Estimates: Use higher FY25 revenue range and sustained adj. EBITDA/EPS ranges; Q3 shows revenue/EPS resilience even as S&P EBITDA fell short; company adj. EBITDA execution remains strong.*
Strategic optionality: “Total Solutions” platform unlocks integrated opportunities (generation + grid + storage + MEP) across utilities and tech load—broadens TAM and deepens stickiness .
Cash generation and returns: Robust YTD CFO/FCF, improved financing rates, buybacks, and a 10% dividend increase support balanced capital deployment .
Watch items: Timing/affordability/regulatory pacing across T&D and generation; permitting milestones (e.g., NiSource air permits) and backlog conversion cadence .

Footnotes:
Values marked with * are retrieved from S&P Global.

QUANTA SERVICES, INC. (PWR)·Q3 2025 Earnings Summary