Earnings call transcript: Quanta Services Q3 2025 sees earnings beat, stock dips

Quanta Services Inc. reported its third-quarter 2025 earnings, surpassing analyst expectations with an adjusted earnings per share (EPS) of $3.33, compared to the forecasted $3.25. The company also reported revenues of $7.63 billion, exceeding the anticipated $7.39 billion. Despite these positive results, the stock saw a pre-market decline of 2.45%, trading at $437.71, reflecting investor concerns or profit-taking after a strong performance.

Key Takeaways

• Quanta Services reported higher-than-expected EPS and revenue for Q3 2025.
• The company raised its full-year revenue guidance to $27.8-$28.2 billion.
• Pre-market trading saw a 2.45% decline in stock price despite strong earnings.
• The company is expanding its capabilities in renewable energy and data center infrastructure.
• Quanta Services anticipates a significant infrastructure investment cycle.

Company Performance

Quanta Services demonstrated robust performance in Q3 2025, with revenues reaching $7.6 billion, a testament to its strategic focus on integrated solutions and infrastructure expansion. The company continues to leverage its strong market position to capitalize on growing demand in electric infrastructure and renewable energy sectors. This quarter’s performance builds on previous successes, highlighting the company’s ability to adapt and grow in a competitive market.

Financial Highlights

• Revenue: $7.63 billion, exceeding forecasts of $7.39 billion.
• Adjusted EPS: $3.33, surpassing the expected $3.25.
• Net income: $339 million.
• Adjusted EBITDA: $858 million.
• Full-year revenue guidance raised to $27.8-$28.2 billion.
• Free cash flow expectations increased to $1.5 billion.

Earnings vs. Forecast

Quanta Services’ Q3 2025 EPS of $3.33 exceeded the forecast of $3.25 by 2.46%, reflecting strong operational performance and strategic initiatives. The revenue surprise of 3.25% further underscores the company’s effective execution of its growth strategy.

Market Reaction

Despite the earnings beat, Quanta Services’ stock experienced a pre-market decline of 2.45%, trading at $437.71. This movement may be attributed to profit-taking or cautious investor sentiment following the company’s strong performance. The stock remains within its 52-week range, with a high of $459.36 and a low of $227.08.

Outlook & Guidance

Looking ahead, Quanta Services has raised its full-year revenue guidance to between $27.8 billion and $28.2 billion, reflecting confidence in its strategic initiatives and market position. The company is targeting a 10-15% adjusted EPS growth, driven by anticipated infrastructure investments and a robust project pipeline.

Executive Commentary

CEO Duke Austin emphasized the company’s cautious approach to large projects, stating, "We’re not going to take risk in these larger projects with our labor and our labor force." CFO Jayshree Desai highlighted the strategic opportunities ahead, noting, "The opportunities ahead represent the next phase of a generational investment cycle in critical infrastructure."

Risks and Challenges

• Supply chain disruptions could impact project timelines and costs.
• Fluctuations in energy prices may affect demand for renewable energy projects.
• Economic downturns could limit infrastructure investment.
• Regulatory changes in energy policy could alter market dynamics.
• Competition from other infrastructure service providers remains intense.

Q&A

During the earnings call, analysts inquired about the company’s joint venture strategy with Zachry and potential involvement in nuclear power. Quanta Services addressed these questions by emphasizing its focus on market opportunities in transmission and generation, while also highlighting its risk mitigation strategies for large projects.

Full transcript - Quanta Services Inc (PWR) Q3 2025:

Conference Moderator: Good morning and welcome to Quanta Services third quarter 2025 earnings call.

Unidentified Speaker: At this time, all participants are in.

Conference Moderator: A listen-only mode. A question and answer session will follow Management’s prepared remarks, and we will ask that you please hold all questions until that time. I will then provide instructions for the question and answer session. As a reminder, this conference call is being recorded. If you have any objections, please disconnect at this time. I will now turn the call over to Kip Rupp, Vice President of Investor Relations, for introductory remarks.

Kip Rupp, Vice President of Investor Relations, Quanta Services: Great. Thank you and welcome everyone to the Quanta Services third quarter 2025 earnings conference call. This morning we issued a press release announcing our third quarter 2025 results, which can be found in the Investor Relations section of our website at quantaservices.com. This morning we also posted our third quarter 2025 operational and financial commentary and our 2025 outlook expectations summary on Quanta’s Investor Relations website. While management will make brief introductory remarks during this morning’s call, the operational and financial commentary is intended to largely replace management’s prepared remarks, allowing additional time for questions from the institutional investment community. Please remember that information reported on this call speaks only as of today, October 30, 2025. Therefore, you are advised that any time-sensitive information may no longer be accurate as of any replay of this call.

This call will include forward-looking statements and information intended to qualify under the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements reflecting expectations, intentions, assumptions, or beliefs about future events or financial performance, but that do not solely relate to historical or current facts. You should not place undue reliance on these statements as they involve certain risks, uncertainties, and assumptions that are difficult to predict or beyond Quanta’s control, and actual results may differ materially from those expressed or implied. We’ll also present certain historical and forecasted non-GAAP financial measures. Reconciliations of these financial measures to their most directly comparable GAAP financial measures are included in our earnings release and operational and financial commentary. Please refer to these documents for additional information regarding our forward-looking statements and non-GAAP financial measures.

Lastly, please sign up for email alerts through the Investor Relations section of quantaservices.com to receive notifications of news releases and other information, and follow Quanta IR and Quanta Services on the social media channels listed on our website. With that, I would like to now turn the call over to Mr. Duke Austin, Quanta’s President and CEO.

Duke Austin, President and CEO, Quanta Services: Duke, thanks Kip. Good morning everyone. Quanta delivered another quarter of strong results, achieving double-digit growth in revenue, adjusted EBITDA, and adjusted EPS compared to the prior year, along with record backlog of $39.2 billion and a number of other record financial metrics. These results reflect accelerating demand in our electric segment, robust activity across our end markets, and positive momentum headed into 2026. They demonstrate the strength of our portfolio, the capability of our craft skilled workforce, and our ability to provide certainty through world-class execution as customers modernize and expand critical infrastructure. Our performance continues to be powered by Quanta’s core drivers: craft skill, labor, execution, certainty, and disciplined investment, which are critical to how we operate and create long-term value. Our craft workforce remains the foundation of our business, executing with safety, quality, and reliability across diverse infrastructure solutions.

Execution certainty reinforces our reputation as a trusted partner capable of consistent, high-quality project delivery, and disciplined investment ensures capital is allocated toward opportunities that strengthen our platform, deepen customer relationships, and support sustainable growth. Quanta’s integrated solution-based model continues to differentiate our platform. By combining craft labor with engineering, technology, and program management expertise and critical supply chain capabilities, we deliver comprehensive self-perform solutions across the full infrastructure life cycle. This approach deepens customer partnerships and positions Quanta as a long-term collaborator, not a traditional contractor. Quanta operates at the center of a fundamental transformation in the energy and infrastructure sectors. The convergence of the utility, power generation technology, and large load industries is driving increased demand for resilient grids, expanded generation and storage, and new infrastructure to support electrification, data centers, and domestic manufacturing.

These structural drivers are fueling a generational investment cycle in critical infrastructure, and Quanta’s diversified, scalable platform is well positioned to capitalize on these opportunities. To that end, this morning we announced the expansion of our Total Solutions power generation platform that builds upon our world-class cross-skill labor capabilities and history of constructing more than 80,000 megawatts of power generation through our industry-leading renewable energy and battery energy storage solutions as well as other forms of generation. Our Total Solutions power generation platform leverages these capabilities to address growing generation and infrastructure needs due to the rapidly increasing demand for electricity from data centers, manufacturing and reshoring, industrialization, electrification, and power grid expansion. This platform is focused on providing a fully integrated solution to high-quality customers for their generation development strategies.

As a demonstration of this platform strength and scalability, NiSource has engaged Quanta Services for a design, procurement, and construction execution of generation and infrastructure resources capable of producing approximately 3 gigawatts of power for a large load customer. This project highlights the strength of our Total Solutions platform spanning power generation, battery energy storage, transmission, substation, and underground infrastructure and underscores the value of our collaborative approach and builds on our relationship with NiSource and strong presence in Indiana. We believe these announcements reinforce our strategy to lead in large converging markets where utilities, power consumers, and industrial operators require scalable integrated solutions. We expect to achieve record backlog and another year of double-digit earnings per share growth in 2026. Our strategy remains focused on delivering certainty to customers, investing in talent and technology, and expanding our addressable markets through disciplined strategic growth.

Quanta Services’ resilient solution-based model has performed well through varying market conditions. Our strong execution, disciplined investment, and commitment to safety and quality continue to differentiate our platform and support sustainable value creation for our shareholders. I will now turn it over to Jayshree Desai, Quanta Services CFO, to provide a few remarks about our results and 2025 guidance and then we will take your questions.

Unidentified Speaker: Thanks Duke and good morning everyone. This morning we reported third quarter results with revenues of $7.6 billion, net income attributable to common stock of $339 million or $2.24 per diluted share, adjusted diluted earnings per share of $3.33 and adjusted EBITDA of $858 million. Based on our continued backlog momentum and strong revenue growth during the quarter, we are raising our full year revenue expectations to a range of $27.8 to $28.2 billion. We are also raising our full year free cash flow expectations to $1.5 billion at the midpoint, driven by another quarter of healthy free cash flow which totaled $438 million during the quarter. We issued $1.5 billion of notes to recapitalize the balance sheet and enhance our liquidity position.

Following the acquisition of Dynamic Systems, the interest rate on these notes was approximately 40 basis points lower than our issuance in the third quarter of 2024, reflecting the benefit of our recent ratings upgrade and the stability of our earnings outlook. This transaction reinforces our ability to support operations, maintain financial flexibility and deploy capital strategically while preserving our investment grade rating. Our customers continue to value Quanta Services’ differentiated solid self-perform craft labor solutions and we are expanding our platforms for growth as evidenced by the power generation platform we announced today. These dynamics, coupled with another quarter of record backlog, give us confidence in our ability to drive sustained revenue and earnings growth over the coming years. As we look toward 2026, the end market momentum and our consistent execution position us to deliver another year of double digit adjusted EPS growth and attractive returns.

We believe the opportunities ahead represent the next phase of a generational investment cycle in critical infrastructure and Quanta Services is well positioned to lead through it, delivering consistent performance, disciplined capital deployment and long term value creation for our stakeholders. Additional detail and commentary on our 2025 financial guidance can be found in our Operational and Financial Commentary and Outlook Expectation Summary, both available on our Investor Relations website. With that, we’re happy to take your questions. Operator, thank you.

Conference Moderator: We will now move to our question and answer session. For today’s session, we’ll be utilizing the Raise Hand feature via the webinar. If you’d like to ask a question, simply click on the Raise Hand button at the bottom of your screen. If you have dialed in, please press Star nine to raise your hand and Star six to unmute. Once you have been called on, please unmute yourself and begin to ask your question. That’s Star nine to raise your hand and Star six to unmute. If you are dialed in, we ask that all participants limit themselves to one question. If you have additional questions, you may request, and those questions will be addressed, time permitting. Thank you. We will now pause a moment to assemble a queue. Our first question is from Steve Fleishman from Wolfe Research. Please unmute your line and ask your question.

Hi, can you hear me?

Please go ahead.

Unidentified Speaker: Hey Steve, yes we can.

Duke Austin, President and CEO, Quanta Services: Good morning.

Yeah, okay, great. Thank you. Appreciate it. Okay, I will follow the rule and try to stick to one question.

The.

You know, yesterday we heard from AEP talking about a potential partner for their high-voltage transmission opportunities. Maybe I’d be curious if you could comment on whether that would likely be you, and then also just how much of the kind of high-voltage transmission that’s being discussed in Texas PJM is kind of already in any backlog. Is that all mainly to come, and when might we see it?

Yeah, thanks Steve. With AEP, look, they’re a large customer of ours, have been for many, many years. We have great relationships there and I do think we’re collaborating on, you know, 765 capabilities and doing a lot of different things together. I do, you know, there’s more to come there with us. As we sit today, none of the 765 is in our backlog. We have lots of discussions, lots of verbals, we have LNTPs, all kinds of different things. None of that is in the backlog at this point. It’s something that we’re taking our time with to make sure we get it right. We’re setting the resources and making sure internally that we have the training done and working with the clients on this in a collaborative manner. I do think there’s opportunities for us.

We’ve made investments in our transform facility and done some things there collaboratively with our clients. Yes, we have a great relationship there. Probably more to come and I like our chances on the 765.

Great. Thank you.

Conference Moderator: Thank you. Our next question is from Andy Kaplowitz from Citi Research.

Good morning, everyone.

Kip Rupp, Vice President of Investor Relations, Quanta Services: Morning.

Duke Austin, President and CEO, Quanta Services: Morning.

Unidentified Speaker: Duke or Jayshree?

Obviously the Total Solutions power generation platform announced today, I think can provide a whole new driver of backlog growth. How do you think about execution risks for these larger total solution jobs that include power generation? I don’t think you ever really left power generation. Duke, as you know, when you’ve focused on bigger power generation, you’ve had a little more variable performance. Can you get favorable terms and conditions and get comfortable?

Duke Austin, President and CEO, Quanta Services: How do you protect Quanta as you.

Enter these larger jobs?

Yeah, I mean, great question. When we think about it, we’ve built, you know, eight gigs of generation and Zachry’s built six of 14 gigs put together. They built 100 CCGTs. When I think about it, we put a great partnership together. We collaborated significantly with the client, not only for us, but for the end users, the ratepayers as well as the large load customer. I think when we looked at it in a holistic manner in Total Solutions, we were able to put together what I consider, you know, de-risk both sides here on cost escalations and things of that nature. We’ve said publicly that we’re not taking risk on these kind of projects.

I think we’ve done a great job of working with a client here in a collaborative manner to, you know, what I consider give the ratepayer the right, you know, cost as well as the end user, which is a large load customer, the right cost. It’s really, I think when we plan, when we get in front of these things, we can give a total cost solution and de-risk everyone in the value chain here. I think we’ve done that.

Thanks to.

Conference Moderator: Thank you. Our next question is from Steven Fisher from UBS. Please unmute your line and ask your question.

Thanks.

Duke Austin, President and CEO, Quanta Services: Good morning.

Duke, you know, in 2019, you rolled out this utility services model which reduced the reliance on larger discrete projects and focused, I guess it was around 80% plus or so more on kind of utility services. I think that’s obviously been a very, very successful strategy. I’m just curious how we should think about your overall strategy. I know obviously it’s very heavily focused on being a solutions provider and this new platform I think you would say is clearly part of providing solutions. I’m just curious how we should think about, frame the strategy between being sort of this more base level recurring services type strategy versus more of a discrete EPC project delivery that may be a little bit lumpier.

Yeah, thanks, Steve. Look, I think when you look at the company, nothing’s changed. We certainly believe that craft skills at the core, it’s fungible. We’ll move across different platforms from MSAs to larger projects and solve the solution-based approach to the client. We’re not going to turn down because it’s work because it’s a large project. I mean, I think that’s part of this, and projects are getting bigger. We’re working for clients that we work for for decades, and that hasn’t changed. We continue to do that. We’re also discussing technology as a TAM, and I do believe we’re addressing that. Our clients there, we’ve worked for decades. As we look at both sides of this, I would tell you that we’re still around 80% of base business even with what you see today. We’ve talked about this before.

I do believe you’re going to get in a period where you start stacking large projects on top of that base, and I’ve been consistent in that. You’re just now starting to see it show up. I would expect the backlog to continue to increase. I would expect us to stack and continue to. Nor the power plant, nor Grain Belt is in our backlog, and it would continue to stack. I add the larger projects. LNTPS, no 765 in there. I really like our chances of stocking this for decades or more, and we’re giving long-term growth profiles. We’re doing the things that we need to do to be a consistent compounding earnings platform.

Good stuff. Thank you.

Conference Moderator: Thank you. Our next question is from Sangita Jain from KeyBanc.

Duke Austin, President and CEO, Quanta Services: Great. Thank you for taking my question. Can I ask a follow up?

Unidentified Speaker: On the JV that you announced this.

Duke Austin, President and CEO, Quanta Services: Morning for the large load center? I’m assuming that this is mostly all.

Unidentified Speaker: Your basic high-voltage transmission work that you.

Duke Austin, President and CEO, Quanta Services: I’m wondering if there is a potential to add further scope to.

Unidentified Speaker: This is with the customer itself for low.

Duke Austin, President and CEO, Quanta Services: Voltage, voltage, electrical or mechanical work. No, I’m saying this is a full, full CCGT. I mean it’s a full build that’s, it’s a 50/50 partnership. Certainly we have aspects of this that we’ll perform, you know, that internally and then Zachry has aspects of this. It’s open really well. It’s a full JV, a full turnkey project. You know, it’s electric scope too. I think you’ll see in the program itself with NiSource, you’ll continue to see some stacking there with other things and opportunities. In general, what you see is us building out that platform of, you know, what I consider from the CCGT’s three gigs and the batteries around it, and that’s what we’re building. I hope I answered your question. No, that’s good. Thank you.

Unidentified Speaker: Thank you, Duke.

Conference Moderator: Thank you. Our next question is from Julian Demond Smith. If you would please unmute your line and ask your question.

Hey, good morning, team. Thank you guys very much for the time. I appreciate it. If I could follow up a little bit on this question of scope of business. Obviously, you guys are expanding into the, you know, more the generation side, but how do you think about, you know, expanding more into the data center side specifically? You’re talking about pursuing generation here specifically for large loads. How about getting sort of inside the house? Obviously, you guys have done a couple acquisitions here. It would seem germane to your strategy to continue to ramp and expand the scope more directly here. How do you think about that and the rate of growth therein specifically?

Duke Austin, President and CEO, Quanta Services: Yeah, Julian, I mean, I think we’re down to a shell at this point. That’s, you know, from what I can, you can pour a slab and basically build a building. The customers and how we look at it in a solution based. If they ask us to build, you know, balance a plan or what I would. The total data center, we can build it. We’re the MEP piece of it. We can go, we can grade, we can do whatever’s necessary. I think we’ll have those opportunities. We’ll probably work with a general here or there on that. Look, we’re in a position to where we can, we can build basically the whole data center. We can build a generation behind it all the way to the rack. I feel real comfortable with how we positioned ourselves to take advantage of these opportunities.

They want to go fast, one, one person, and we can do that. It’s also working with the client, the utility as well, and how that converges, I think, is where the real opportunities for us is that convergence of generation labor certainty and you know where we sit in that sphere there. I like it. We’re in front of it and I do think we have a lot of opportunity to continue to build out scope with technology.

Excellent. What will we hear about a growth rate next year? Maybe.

Yep.

Conference Moderator: Thank you. Our next question is from Jamie Cook from Truist Securities. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Can you hear me? Oh, great.

Unidentified Speaker: I finally figured it out this time anyway. Duke, just want to build on your announcement this morning with the Total Solutions power generation platform and the joint venture with Zachry to build power plants. I guess just taking this a step further, this is sort of unlike you to joint venture with someone. I’m just thinking longer term, is this sort of you dipping your toe in power generation and getting more comfortable? To what degree do you think you need to do an acquisition and acquire someone to do full EPC power plants? Is this a step in, dipping your toe, and then over time you would do an acquisition so you could do everything by yourself?

Conference Moderator: Thanks.

Duke Austin, President and CEO, Quanta Services: Yeah Jamie, I look at it like we’re listening to our customer and they’re asking us to expand our services and I believe we have the capability to do so. We’re working with select customers on this and, you know, long standing customers on power generation. I do think it’s a great business for the foreseeable future. Zachry was a great company, very much valued the same as us. Know them well, know the family well. A great opportunity for us to work together on some things that they do better than us and we have the capabilities internally to do everything. So do they. We felt like this was a great venue for us in Indiana to work together to build this plan. Risk has always concerned me in these combined cycles and I believe we’ve done a nice job here of collaborating with the client.

I feel real comfortable with that. Yes, we can expand here. It can be a large opportunity for the company and we’ll take advantage of it, but in select cases. I’m not going to get pressured to go sign up 10 combined cycles. It’s just not who we are and we’ll make sure that we limit ourselves to strategic partners and people that will collaborate with us on a total solution. This is a large program. It’s very much a solution for us and I think we’ve done it the right way with the JV to mitigate some risk for the client and ourselves. I think it’s the smart way for us to go into Indiana and other places.

Other kind of machines, we would look at it differently, but for this one, this was a great opportunity for us and I think we’ve leveraged our capabilities along with Zachry’s to have a complete solution for the client.

Unidentified Speaker: Thank you.

Conference Moderator: Thank you. Our next question is from Ati Modak from Goldman Sachs. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Hey guys. Good morning. I was just wondering, as we think about the JV opportunities in general, is there a way to think about, say, the dollar value of the project maybe on a gigawatt basis or for whatever way you would like to guide us? What’s the view on the total market opportunity that you have for CCGTs as it stands today? What is a reasonable market share for you longer term? I think how to look at the JV is just kind of when we think about it, our portion of it. The whole thing is similar to a Sun Zia. I think that’s how you have to look at this and how we’re looking at it. We have half the CCGT, but on the other side of that, Quanta Services is doing direct with other opportunities that are with battery and other things.

I think I would look at it like a Sun Zia from that standpoint. From our revenue base, although the JV will be half, we’re 50/50 on that and we can walk through the accounting, but it’s 50/50. As far as the market, look, I wouldn’t get it all leathered up that we’re going to go after all these CCGTs that are out there. That’s not who we are. We are really focused on our customers and certain programs and where it can be more a total solution, much like what you’ve seen with NiSource in Indiana. We want that total solution. We’re not going to, you know, if it’s a one off. I do not believe you’ll see us in that arena unless it makes total sense, but I doubt it.

I think we are going to be extremely selective here on how we go to market with combined cycles. Thank you. Sure.

Conference Moderator: Our next question is from Nick Amakuchi from Evercore. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Hey guys, can you hear me?

Unidentified Speaker: Yep. Hey.

Duke Austin, President and CEO, Quanta Services: All right, perfect. I just wanted to kind of touch upon, so just given, you know, kind of the massively increased demand for, you know, natural gas as the feed fuel. I mean, have you guys been having some conversations? Obviously, you know, the pipeline business is kind of was targeted to be down this year. Just kind of thinking about the available infrastructure currently within the United States and then, you know, the need, the inevitable need for some more. Just wanted to get a sense of, you know, are people starting to talk about that or is it still very early innings? No, I mean, I think we have probably a conversation every day about a piece of pie, but when I think about it though, I wouldn’t. When I go into next year, it’s $500 million.

That’s what we’re going to guide and we’re not going to unless we have booked work against it. We’re not going to get ourselves in a position where that’s something that the company’s focused on. We’ll build it. We certainly see it. We have great customers there. We’ll be selective, the risk profiles and everything else. On a large diameter pipe, it’s lumpy. We’re trying to be a compounder of earnings and give good guidance for multi years and decades in fact. It’s hard to do when you’re with lumpy, the lumpiness of big pipe. It’s just not us. I think, yeah, we can build billions in pipe. It’s just a matter of the client needs us to do it and we’ll have to do it in a way that we can de-risk ourselves. I don’t like the weather risk, the mat risk, bunch of different things there.

If we can de-risk ourselves, we’ll build it all day. I do think the opportunity is there. It’s a good market and, you know, certainly you can see it. It’s still tough at the state level and permitting, we’re not past that yet.

Got it.

Kip Rupp, Vice President of Investor Relations, Quanta Services: Perfect. Thank you.

Conference Moderator: Thank you. Our next question is Ameet Thakkar from BMO Capital Markets. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Hey guys, can you hear me?

Unidentified Speaker: Hey. Hello.

Morning.

Hey, good morning. Thanks for the time. One of your earnings supplements, I think, kind of said that your solar and storage backlog increased pretty significantly versus last quarter. I was just wondering if you guys.

Duke Austin, President and CEO, Quanta Services: Could you provide a little bit more color?

On how much did it increase, and then what do you guys see as the kind of drivers of that? Is that more from the legislative and safe harbor certainty, or is this just more follow through from the power demand environment that’s out there? Thanks, guys.

Thank you. Our renewal business hasn’t let up. We said it last quarter, I’ll say it again, it’s just LNTPs are coming into FNTPs. Nothing, nothing new. I think we’re growing the business. Obviously power is in need and if you can build it faster with renewables and batteries, that’s what’s happening. The fastest thing to market right now is we’ll be all encompassing in power and generation. The fact that we put in this, what I consider a total solution now, it’ll continue and I think backlog in the renewable side has been great. The inbounds are great and I don’t think it’s pulling. I think it’s just the normal course. We’re seeing a nice market there. We continue to see it. Battery storage business is fantastic. We’re happy with where we sit in the market and now that we can provide a larger solution, I think it’s great.

You’ll continue to see us follow our customers. If you look at our bigger customers and look at what they’re saying, I think we’re right there in front of them or right there with them and it’s important to us to be able to say yes to a customer app when they ask us to do something and they ask us to go with them, that we can say yes and have the capabilities to do so. The 67,000, 68,000 employees we have out there, they’re fungible in many ways that we can move them around. We have to do a great job up here of making sure that we have what I consider the end markets to move to and we can be more selective and we have been. That renewable piece is part of it.

We’re building a lot of renewables in Indiana and that same workforce will move over and do some CCGT work. I just think we’re extremely fungible. We’re happy with where we sit and backlog was broad based and we had not put the big, bigger projects in it.

Thank you.

Conference Moderator: Thank you. Our next question is from Justin Hauke from Robert W. Baird. Please unmute your line.

Great. Thanks for taking my question here. I guess I just wanted to build on Jamie’s question that, you know, you guys have always, you know, self-performed so much of your work and that’s a way that you’ve mitigated risk. Just with the joint venture, maybe you can clarify kind of what’s in your wheelhouse that you’ll be doing and what’s in Zachry’s in terms of the combined cycle gas plants. Also, just on the margin profile, I know you’re not looking to do kind of discrete one-off plants, but I guess how we would think about it is historically the margins on those have been a little bit lower than the grid work just because the utilities, the ROEs are lower on that CapEx versus the spend on grid with some of the adders.

Anything different from the margin profile on the work that would be coming in on that? Those are the questions. Thank you.

Duke Austin, President and CEO, Quanta Services: Yeah. As far as who’s performing what, both of us can perform, you know, total solutions. I think, you know, they’re better at certain things than we are. We’ll make sure from an engineering standpoint there’s certainly the engineering staff and the capabilities there, so the front end side of it, the back end side of it make a lot of sense for Zachry. Of course, we’ll balance each other across the plan, whether it’s internal subcontract, however we decide to do it, but we’re capable of doing the whole thing. I think what the right answer is, how do we continue to use local content in Indiana? We have a great presence there. We’ll work with the client on that to make sure that we’re pulling in local content into the state as well as we have, you know, offices there.

We can self-perform all the mechanical, we can self-perform all the electric, you know, basically can do it all. It’s kind of a 2027, 2028 build with the ramp in 2028, 2027, 2028. We’ll just have to see where we’re at there. We have all those capabilities internally. We’ll just balance each other there. As far as margin profile, I would tell you it’s at parity or better in the segment.

Appreciate it. All right, thank you. Congratulations.

Conference Moderator: Thank you. Our next question is from Philip Shen from ROTH Capital. Please unmute your line and ask your question.

Hi guys, can you hear me okay?

Thanks guys.

Unidentified Speaker: Hello?

Hey guys, can you hear me okay?

Duke Austin, President and CEO, Quanta Services: Loud and clear.

Okay, great, thanks. Hey, I know you haven’t given guidance for 2026, but as we wind down 2025, can you share what the growth trajectory for organic growth might look like for 2026, perhaps comment on the different outlook for electric infrastructure and UI. If you can’t take that, perhaps you can comment on the margin profile, the expanded Total Solutions power generation platform compared to the current electric power margins. Is the deal with NiSource margin accretive or in line with current run rate? Thanks guys.

It’s in line or accretive on the 1st, on the last question, as far as guidance and where we’re at, I mean I look at it on 2025, we’re right in line, you know, see some save $10 million or one way or the other on $2.8 billion. I wouldn’t get worked up about it. We hit it down the middle, and I think we’ve taken into account a lot of things and given conservative guidance. More importantly, when we look at guidance, I mean I’m looking in 2028, 2029, and we’re saying we’ve floored it at 10% kind of 15% adjusted EPS at the midpoint given all levers of the balance sheet. 20% is what we’ve done. I don’t know, I think I’ve given you five year guidance as far as I’m concerned, outward.

I don’t, you know, that’s the guidance and it’ll be somewhere in there when we go to the street.

Great, thanks guys.

Conference Moderator: Thank you. Our next question is from Chad Dillard from Bernstein.

Hi guys. A big picture question for you guys. Over the medium and long term, how do you think the power industry evolves to serve large load customers like data centers? Is it the Genco model like we’re seeing with NiSource? Is it behind the meter? Is it traditional grid connection? I know it’s a combination of all the above, but would love to get a sense for how you think that mix evolves. I guess secondly, when it comes to the JV just announced, how do we think about the contract structure and how you guys are thinking about bidding? Is this competitive? Is it open book? Any color on that would be helpful.

Duke Austin, President and CEO, Quanta Services: I mean, I think it’s all of the above when you look at these things. Some of it we’re certain on, we don’t have any issues with that. We can, as long as we can scope it and feel good about it, we’re happy to have lump sum on things. It doesn’t, we can do that. If it’s stuff that we don’t understand, we’ll de-risk ourselves. You can expect that. I’ve said it publicly. We’re not going to take risk in these larger projects with our labor and our labor force and everything we have for certainty. It’s not the right answer for the client. I think us working together, pre-planning early and up front, is extremely important for us when we look at the future of how we build things, especially today.

Conference Moderator: Thank you. Our next question is from Sharif El Sabahi from Bank of America. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Hi, good morning. I just wanted to touch on M&A a bit. Just as your backlog builds on multi-year demand, would you ever consider shifting your M&A focus to complement your craft labor pool by acquiring smaller service providers? Or do you feel that the steps you’ve taken internally to grow the labor pool are able to match the workload that you want to take on in the coming years? Yeah, I mean we don’t buy for capacity. We never have. It’s strategy totally. When we think about it, we’re filling a strategic gap. You could expect us to do so. I think we’ve done a nice job with that. We’ve stayed in front of vertical supply chain. We don’t talk about that much, but I think we’ve done a really nice job of our vertical supply chain and what we can do with that. We continue to add there.

I think we have probably 10 projects ongoing that are enhancing our vertical supply chain that doesn’t get talked about. From our standpoint, we’re filling the needs of the solution-based approach for our clients and we’ll continue to do so. We’re adding fabrication, we’re adding just about everywhere. It’s all strategic around the client. I would say we’re ahead in that and we’ll continue to buy great family companies. It made a huge difference in how we think about it. The culture and the company mean so much more than anything else. We start there and then does it fit the strategies next and then the financials will be after. As far as I’m concerned, we pay a nice, what I consider, multiple for a great company. You’ve seen us go from civil to transformers to other things. They all have a purpose and they all have a strategy.

We’ll continue to leverage that strategy as we move forward in great markets that we have with technology and utilities.

Conference Moderator: Thank you. Our next question is from Brent Thillman from D.A. Davidson. Please unmute your line and ask your question.

Hey, great. Thanks so much. To do a bit of a follow on to that last question, when you look across this sort of massive craft workforce you’ve accumulated here, are there trades in particular where you see real set, real scarcity, such that it’s actually somewhat of a limiting factor to your growth? The growth’s been good, obviously, and maybe where you’re especially focused on recruiting talented folks out there.

Duke Austin, President and CEO, Quanta Services: Yeah, I think, you know, we’ve added about 6,000 with acquisitions, and so this year a little over. So, you know, quarter year over year. When you think about it, I mean, we’ve invested in that craft skill workforce and our colleges, our campuses and everything we’ve done, their curriculum, we can move that curriculum into all phases of craft now. I mean, we’re early in our technology piece. Cupertino acquisition was a great platform. That inside Wireman, like, as far as I’m concerned, is scarce, is probably where you see scarcity. We’ve been able to add fabrication. We continue to add pre-manufacturing, let’s call it, you know, pre-manufactured products there that are allowing us to scale it. I think that’s probably when I think through it, we’ll continue to beef that program up and add faster to our inside Wireman.

Now we’re in plumbing, mechanical, all kinds of trades there from our mechanical business. That’s next. We’ll continue to add curriculum. Some kids don’t want to get in the air, and some of these businesses are more local than others. On our high-voltage, we travel, we camp. They’re starting to do more of that on the inside, but it was predominantly local, so we have to build these locals much, much stronger. You’ll see us do that. You’ll see us add there. In general, I would tell you the inside piece of it and the mechanical piece. We’re early, so that’s where the gap is for us and try to enhance that as quick as possible. Okay, thank you.

Conference Moderator: Thank you. Our next question is from Mike Dudas from Vertical Research Partners. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Good morning. Jayshree, Duke.

Unidentified Speaker: Duke.

Given the extraordinary demand.

Duke Austin, President and CEO, Quanta Services: You’re seeing, and the tightness in capacity, are your customers starting to recognize they need to secure your time, your MSA, your resources at a quicker rate, and does that lead to maybe better scale and execution on margins as we move forward? Maybe an ancillary to that, any concern on how the industry is going to pay for all this, all this capacity is coming through. Certainly, living in New Jersey, we’ve been seeing a lot of issues on rate, rates going up, etc. Just want to get your thoughts on how that’s a place here as you’re talking to utilities and your developers. Yeah, I mean, I think affordability is always an issue. You know, fuel is a big piece of the bill. I mean, 60% interest, interest going down.

You know, you got to look at your fuel as well, and so those two are big pieces of a bill now. I do think you’re going to see large transmission get built and things of that nature. PJM is shares, shares, you know, sharing of infrastructure. There are different models out there. I go back to, I think if you look at technology and look at where the loads come in, you haven’t built a transmission line in the U.S. that’s not NPV positive, number one. Number two, generation, the more generation you can see it with the NiSource example where the ratepayer is actually benefiting from the load. Those models are out there, and I do think technology is willing to pay their way. You’re seeing utilities and technology come together for what I think is the benefit of the ratepayer here.

It’s taken a little bit of time, but as that goes forward, you know, look, we all have to be prudent and watch the affordability piece of this. The NPV on the other side of it is a downward trajectory. I like what I see. I think we’ll get there, and you’ll see positive effect to the ratepayer we all have to be cognizant of.

Conference Moderator: Our next question is from Alex Rigel from Texas Capital Securities. Please unmute your line and ask your question.

Duke Austin, President and CEO, Quanta Services: Morning, Alex. Good morning and thank you. Nuclear power is gaining momentum here. Can you talk about how Quanta might get involved in that? Yeah, I mean, as long as we don’t have to go behind that, what I would consider NERC fence and the nuke fence, we’re good. I think once you get behind there, we have to de-risk ourselves and think hard about it. It’s not something that the company’s jumping up and down to take a risk on. We’re always around the edges on things and I think as long as we can do the things that we know how to do and stay out of the nuclear fence, we feel comfortable. We’re not the reactor person and we’re not the person inside the fence.

There’s a lot of ancillary things we can do and will do, but once we cross the line of that fence, it’s not us. Thank you.

Conference Moderator: Thank you. Our next question is from Brian Brophy from Stifel Nicolaus.

Thanks. Good morning everybody. Just following up on the NiSource project. Curious if you can comment on whether that is structured as a cost plus or a fixed price project. I would assume it’s fixed price, but I think you’ve alluded to in the past potentially structuring those on a cost plus basis to de-risk it. Just curious if you can provide any color. Thanks.

Duke Austin, President and CEO, Quanta Services: Yeah, I mean we’re going to get involved in what kind of contract structure we have, but I would just say look, I’ll stand by my comments previously that the company on these type of projects are not, we’re not going to take certain kinds of risk on them. I feel comfortable with where we sit there, comfortable with the contract, and I can look everyone, all the investors in the eyes and say everything I’ve said about risk on a combined cycle, we have not taken that. I’m happy with where we sit, happy with the contract structure. It’s a collaborative structure with the client that allows both to come out in a way that we can de-risk both of ourselves and give the right answer to the ratepayer as well as a large load customer. I like where it sits.

I’m not going to get into exactly what the structure looks like. Abby did a great job there and I’m extremely pleased with where we sit, and we have a great offering with Zachry, built 100 plants, and ourselves that build a gigs of generation. I’m super happy with how we sit in Indiana and what we’re doing there for the local economy. It’s a great partnership with NiSource. I hope it continues and it should.

Appreciate it. I’ll pass it on.

Kip Rupp, Vice President of Investor Relations, Quanta Services: Thank you.

Conference Moderator: Our next question is for Ameet Thakkar from Mizuho Securities. If you’d like to unmute your line and ask your question, please.

Duke Austin, President and CEO, Quanta Services: Hey, morning and thanks for taking the question here.

Maybe just one question on JV.

Maybe just for Jayshree. We just talk about the accounting here. It seems like 50/50 JV and NiSource was talked about like a $6 billion, $7 billion CapEx. We assume that $3 billion coming to a backlog here. In terms of the rev reg, would you share that or how to think about that here? Thanks. I think that the backlog will be incremental on that. You can, I would tell you the larger piece of that is air permits. It’ll hit second half of next year. That’ll come into backlog and you should look at our piece of it similar to Sunsea, how it kind of stacked up and that’s how I would look at the thing. As far as the combined cycle, it’s 50/50.

Unidentified Speaker: Yeah, the accounting on that, as we said, would be proportional. We will just—the income statement will reflect our share of that work from the revenue all the way down to the profit and balance sheet as well.

Duke Austin, President and CEO, Quanta Services: are parts of it with the battery and things like that that are straight to Quanta, and parts of it that are part of the joint venture. Yeah.

Unidentified Speaker: Just to make sure that as Duke said earlier, the backlog will reflect as the work progresses. We’re in LNTP phase now. We’ll move forward in those things. As Duke mentioned, there’s an air permit that has to be obtained middle of next year. That’s when it really hits FNTP. You can expect most of the revenue pickup, and as Duke was saying, it starts in the back half of 2026 and really more into 2027 and 2028.

Duke Austin, President and CEO, Quanta Services: Yeah, there wouldn’t be anything meaningful in backlog. I mean as far as going to construction or revenues in 2026.

Unidentified Speaker: Correct.

Thank you.

Duke Austin, President and CEO, Quanta Services: Thank you.

Conference Moderator: Our next question is from Adam Thalhimer from Thompson Davis.

Hey, good morning guys. Nice quarter.

Unidentified Speaker: Thank you.

If you can comment on the Dynamic Systems acquisition, how the integration is going, what kind of demand you’re seeing generally in Texas, and what would be your appetite for more mechanical construction acquisitions?

Duke Austin, President and CEO, Quanta Services: I think we’re extremely pleased with the acquisition. We bought a great family business, long standing, everything that we thought, and we would do it 10 times over. I feel like as far as how it’s integrated with our offering now, the inbounds and what we can do certainly picked up on the mechanical side. We’re addressing them. We can do a lot from fabrication. They already had large facilities and a broad-based service offering. We’ll expand it very quickly, much like we’ve done with Cupertino and Platner. I think you can see that type of expansion with Dynamic Systems as far as mechanical. It’s trades. As long as it fits the profiles and the trades, we would look at it. It’s something we’re starting. We’ll work with Dynamic Systems to look at opportunities as they come in. Nothing imminent, but we’ll continue to look at that offering.

I like the business. It’s obviously, we have peers there and they’ve done a really nice job. They’re ahead of us, but we’re catching up pretty quick and I like where we’re going.

Thanks, Duke.

Conference Moderator: Thank you. Our next question is from Joe Osha from Guggenheim Partners. Please unmute your line and ask your question, please.

Duke Austin, President and CEO, Quanta Services: Hi. Can you hear me?

Unidentified Speaker: Yeah, please go.

Duke Austin, President and CEO, Quanta Services: Okay, great. Hey, good morning everybody. Lots of talk about combined cycle gas. I’m a little curious. We hear a lot about single cycle going inside defense alongside some of these big data centers to complement grid scale renewables. I’m wondering if that’s perhaps part of the work that you’re seeing or perhaps contemplating. Thank you. Yeah, I mean we said that before. When we started putting this group together it was really around the single cycles because we felt like that was something right down the middle for us. It’s led to where we’re at today having more of a total solution to it. We have a nice group that we’re looking at it all.

I think it’s important for us not only for the technology or the large load customer on the other side, but the utility as well and how we interface that and speed this process up. Everyone right now is around speed and I think we can provide a unique solution with the mode around the utility and helping both sides of this. Like I said, it comes together a generation and craft skill which we check both boxes and the certainty thereof and can we move faster with single cycles? It’s speed to market, whether it’s solar batteries, single cycle, the combined cycle lead times, if you have the engines, just all those things matter here. It’s a race and I think in general for our generation and we’re right in the middle of it. I’m pleased with what we said. Okay, thank you.

Conference Moderator: Thank you. Our last question is from Laura Maher from B. Riley. Please unmute your line and ask a question.

Duke Austin, President and CEO, Quanta Services: Hi, good morning.

Conference Moderator: Thanks for taking the question.

Duke Austin, President and CEO, Quanta Services: My question is, are there the utilities?

Conference Moderator: Seeing any regulatory pushback to fund TMD growth?

Duke Austin, President and CEO, Quanta Services: I mean I think you would see affordability issues that are in certain places. Most of the commissions are, you know, really as long as it’s a positive to the ratepayer. Like I said, I mean most transmissions are NPV positive. You know every commission is different and every state’s different. They approach it in different ways. For the most part, I mean, you know, everyone, the need for infrastructure is there and we want a modern, robust grid. I mean in order to have an economy that we see today, the grid has to be modern. I, you know, not only are we seeing these new projects but you still have an ongoing, I mean we perform very nicely for three decades in negative load growth and that business is still there.

I mean we still have to operate these systems and so you have that ongoing with the load in front of it and it’s broad based. I think the commissions, we’re there to serve and we’re going to make sure that the affordability of the ratepayers there is an industry and everyone is cognizant of that, and fuel, how you purchase fuel, your fuel source, you know, taking risk on larger projects. I mean I think everyone is looking at risk on the outer years and stranded assets. All kinds of different things that you can get into. That’s why you’ve seen the pace be a little slower with technology because they want to make sure that the stranded assets are not at the ratepayer. As you see, I believe the models are there.

It will move much faster now that the models are in place to, you know, solidify the fact that the ratepayer benefits in most cases.

Conference Moderator: Thank you. We have no further questions at this time. I will turn the call back over to management for closing remarks.

Duke Austin, President and CEO, Quanta Services: I want to thank the 68,176 men and women in the field who make these calls possible, our field leadership who continue to make us look good, and thank you for participating in our conference call. We appreciate your questions and your ongoing interest in Quanta Services. Thank you. This concludes our call.

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