QUANTA SERVICES REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
Rhea-AI Summary
Quanta Services (NYSE: PWR) reported record fourth-quarter and full‑year 2025 results, with consolidated Q4 revenue of $7.84B and full‑year revenue of $28.48B. GAAP diluted EPS was $2.08 in Q4 and $6.80 for the year; adjusted diluted EPS were $3.16 (Q4) and $10.75 (FY).
The company ended 2025 with record backlog of $43.98B, announced three Q4 acquisitions for ~$1.73B consideration, and issued full‑year 2026 guidance targeting revenue of $33.25–33.75B and adjusted EPS of $12.65–13.35.
Positive
- Revenue +20% YoY — Full‑year revenue $28.48B versus $23.67B in 2024
- Adjusted EPS +20% — Adjusted diluted EPS $10.75 for 2025 versus $8.97 in 2024
- Record backlog of $43.98B at year‑end 2025
- Adjusted EBITDA of $2.88B for full‑year 2025
- Strong cash generation — Free cash flow $1.67B for 2025
- 2026 growth guidance targeting revenues $33.25–33.75B and adjusted EPS $12.65–13.35
Negative
- Paid approximately $1.54B cash for Q4 acquisitions funded with commercial paper
- Potential contingent consideration of up to $100M on one acquisition
- Short‑term financing increases leverage risk due to commercial paper drawings
Market Reaction
Following this news, PWR has gained 4.56%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $543.00. This price movement has added approximately $3.38B to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
PWR was down 1.11% while peers showed mixed moves: FER +0.26%, J +3.83%, but EME, FIX, and MTZ declined between about 1.7–1.8%, pointing to stock-specific factors rather than a uniform sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 28 | Earnings schedule | Neutral | +0.4% | Announced timing for Q4 and full-year 2025 results and webcast. |
| Nov 21 | Conference participation | Neutral | +0.1% | UBS conference meetings and webcasted fireside chat with management. |
| Nov 18 | Dividend increase | Positive | +2.9% | Raised quarterly dividend to $0.11 per share, about 10% higher. |
| Nov 05 | Strategic partnership | Positive | +3.4% | Long-term transmission partnership with AEP tied to $72B capital plan. |
| Oct 30 | Project award | Positive | +1.1% | Large NiSource power generation and grid project around 3 GW capacity. |
Recent company news, including partnerships and capital markets events, generally coincided with modest positive price reactions, suggesting the stock has recently responded constructively to corporate updates.
Over the last few months, PWR’s news flow featured investor outreach, capital returns, and strategic growth. A Jan 28, 2026 earnings release scheduling notice and a Nov 21, 2025 UBS conference appearance had small positive moves. A Nov 18, 2025 dividend increase and a Nov 5, 2025 strategic partnership with AEP both saw stronger gains, as did the Oct 30, 2025 NiSource power generation project award. Today’s detailed 2025 results and 2026 guidance build directly on this growth and backlog narrative.
Market Pulse Summary
This announcement details record 2025 results, including revenue of $28.48B, adjusted EPS of $10.75, and total backlog of $43.98B, alongside 2026 guidance calling for further revenue and earnings growth. Management also outlines sizable acquisitions with upfront consideration of $1.73B and expectations for strong free cash flow. Investors may focus on execution against the elevated 2026 targets, integration of the new businesses, and how backlog converts into margins and cash generation.
Key Terms
adjusted EBITDA financial
free cash flow financial
remaining performance obligations financial
backlog financial
non-GAAP financial measures financial
EBITDA financial
contingent consideration financial
commercial paper program financial
AI-generated analysis. Not financial advice.
Full-Year 2026 Guidance Reflects Double-Digit Growth in Revenues, Net Income and Adjusted EBITDA
Full-Year 2026 Guidance Range Reflects Opportunity to Deliver Over
Expect to Achieve Record Backlog in 2026
Fourth Quarter 2025 Results Include:
- Consolidated Revenues of
$7.84 Billion - GAAP Diluted EPS of
$2.08 $3.16 - Net Income Attributable to Common Stock of
$315.5 Million - Adjusted EBITDA of
$845.3 Million - Cash Flow From Operations of
$1.13 Billion $946.4 Million - Year-End Remaining Performance Obligations (RPO) of
$23.76 Billion $43.98 Billion - Year-End Electric Infrastructure Solutions Segment RPO and Total Backlog Reach All-Time Highs*
Full-Year 2025 Results Include:
- Consolidated Revenues of
$28.48 Billion - GAAP Diluted EPS of
$6.80 $10.75 - Net Income Attributable to Common Stock of
$1.03 Billion - Adjusted EBITDA of
$2.88 Billion - Cash Flow From Operations of
$2.23 Billion $1.67 Billion
* = Record quarterly or record fourth quarter or full-year result
"Quanta closed 2025 with another strong quarter, delivering double-digit year-over-year growth in revenue and adjusted EBITDA, while achieving record fourth-quarter and full-year results across multiple key financial metrics. Backlog was exceptionally strong at a record
"During the quarter, we welcomed
"As we noted last quarter, we are well positioned to achieve record backlog and another year of double-digit earnings per share growth in 2026, and our full-year guidance reflects that confidence. The convergence of utility, power generation, and large-load industries continues to create significant opportunities, and our collaborative infrastructure solutions and proven execution capabilities position Quanta as a trusted partner for our customers' most critical programs. Our strategy remains focused on delivering certainty for customers, investing in our people and technology, and expanding our addressable markets through disciplined growth. I want to recognize the dedication of our Quanta family, whose commitment to safety, quality, and performance continues to drive our success and supports the strength and sustainability of our long-term outlook."
Certain items that impacted Quanta's results for the three and twelve months ended December 31, 2025 and 2024 are reflected as adjustments in the calculation of Quanta's Adjusted net income attributable to common stock, Adjusted diluted earnings per share attributable to common stock and Adjusted EBITDA (non-GAAP financial measures). These items are described in the accompanying tables reconciling Adjusted net income attributable to common stock to net income attributable to common stock and Adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock. Quanta completed eight acquisitions during 2025 and eight acquisitions during 2024, and the results of the acquired businesses are included in Quanta's consolidated results from the respective acquisition dates. For further information on the items that impacted comparability of 2025 and 2024, see the footnotes in the accompanying tables presenting Supplemental Segment Data and reconciliations of EBITDA, Adjusted EBITDA, Adjusted net income attributable to common stock and Adjusted diluted earnings per share attributable to common stock (non-GAAP financial measures) to their comparable GAAP financial measures.
ACQUIRED THREE COMPANIES DURING THE FOURTH QUARTER OF 2025
During the fourth quarter of 2025, Quanta completed the acquisition of Tri-City Group, Inc. (
Wilson is a highly regarded electric utility infrastructure services company, which bolsters Quanta's high-voltage transmission capabilities. Founded in 1947 and headquartered in
Based in
The aggregate upfront consideration for these transactions was approximately
RESULTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
Revenues in the year ended December 31, 2025 were
FULL-YEAR 2026 OUTLOOK
Prior to the Company's conference call, management will post a summary of Quanta's 2026 guidance expectations with additional commentary in the "News and Events" and "Financial Info" areas of the Investor Relations section of Quanta's website at http://investors.quantaservices.com.
The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, supply chain challenges and other factors affecting project timing and execution have impacted, and may impact in the future, Quanta's financial results. Additionally, we continue to consider future uncertainty associated with overall challenges to the domestic and global economy, including inflation, interest rates and potential recessionary economic conditions. Quanta's financial outlook for revenues, margins and earnings reflects management's effort to align these uncertainties with the backlog the Company is executing on and the opportunities expected to materialize during 2026.
The following forward-looking statements are based on current expectations, and actual results may differ materially, as described below in Cautionary Statement About Forward-Looking Statements and Information. For the full year ending December 31, 2026, Quanta expects revenues to range between
SEGMENT PRESENTATION
Beginning with the three months ended March 31, 2025, Quanta reports its results under two reportable segments: (1) Electric Infrastructure Solutions (Electric) and (2) Underground Utility and Infrastructure Solutions (Underground and Infrastructure). In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure.
NON-GAAP FINANCIAL MEASURES
The financial measures not prepared in conformity with generally accepted accounting principles in
Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Quanta's current and historical results and full-year 2026 expectations (as applicable): adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock; adjusted net income attributable to common stock, EBITDA and adjusted EBITDA to net income attributable to common stock; free cash flow to net cash provided by operating activities; and backlog to remaining performance obligations.
EARNINGS WEBCAST AND SUPPLEMENTAL MATERIALS INFORMATION
Quanta Services has scheduled a webcast and conference call for 9:00 a.m. Eastern Time today, February 19, 2026. This event will be facilitated through web-based audio using a Zoom Webinar. To register for and access the event, please log in to the webinar through the Investor Relations section of Quanta's website (http://investors.quantaservices.com). Once registered, if you prefer to access the call by phone, dial-in details will be provided on the event access page upon registration and when prompted, please enter the unique Participant ID provided to join the call. Please allow at least 15 minutes to register and download and install any necessary audio software. For those who cannot participate live, shortly following the webcast a digital recording will be available on the Company's website.
Additionally, Quanta has posted its Fourth Quarter and Full-Year 2025 Operational and Financial Commentary, as well as all other supplemental earnings call materials, in the Investor Relations section of the Quanta Services website. While management intends to make brief introductory remarks during the earnings 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. For more information, please contact Kip Rupp, Vice President - Investor Relations or Sean Eastman, Director - Investor Relations at Quanta Services, at 713-629-7600 or investors@quantaservices.com.
FOLLOW QUANTA IR ON SOCIAL MEDIA
Investors and others should note that while Quanta announces material financial information and makes other public disclosures of information regarding Quanta through
ABOUT QUANTA SERVICES
Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout
Cautionary Statement About Forward-Looking Statements and Information
This press release (and oral statements regarding the subject matter of this press release, including those made on the conference call and webcast announced herein) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to projected revenues, net income, earnings per share, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, interest rates and tax rates, as well as other projections of operating results and GAAP and non-GAAP financial results, including EBITDA, Adjusted EBITDA and backlog; expectations regarding Quanta's business or financial outlook; expectations regarding opportunities, technological developments, competitive positioning, future economic and regulatory conditions and other trends in particular markets or industries; expectations regarding Quanta's plans and strategies, including with respect to supply chain solutions and expanded or new services offerings; the business plans or financial condition of Quanta's customers; the potential benefits from, and future financial and operational performance of, acquired businesses and investments; the expected value of contracts or intended contracts with customers, as well as the expected timing, scope, services, term or results of any awarded or expected projects; possible recovery of pending or contemplated insurance claims, change orders and claims asserted against customers or third parties, as well as the collectability of receivables; the development of and opportunities with respect to future projects, including projects involving renewable energy and other power generation, electrical grid modernization, upgrade and hardening projects, data centers and other technology infrastructure, advanced manufacturing facilities and larger transmission and pipeline infrastructure; expectations regarding the future availability and price of materials and equipment necessary for the performance of Quanta's business; the expected impact of global and domestic economic or political conditions on Quanta's business, financial condition, results of operations, cash flows, liquidity and demand for Quanta's services, including inflation, interest rates, tariffs and recessionary economic conditions and commodity prices and production volumes; the expected impact of changes or potential changes in climate and the physical and transition risks associated with changes in climate; future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future acquisitions, investments, cash dividends, repurchases of Quanta's equity or debt securities or repayments of other outstanding debt; the expected impact of existing or potential legislation or regulation; potential opportunities that may be indicated by bidding activity or similar discussions with customers; the future demand for, availability of and costs related to labor resources in the industries Quanta serves; the expected recognition and realization of Quanta's remaining performance obligations and backlog; expectations regarding the outcome of pending or threatened legal proceedings; and expectations regarding Quanta's ability to maintain its current credit ratings; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance; rather they involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties including, among others, market, industry, economic, financial or political conditions that are outside of the control of Quanta, including economic, energy, infrastructure and environmental policies and plans that are adopted or proposed by the
Contacts: | Jayshree Desai, CFO | Media – Noa Schwartz |
Kip Rupp, CFA, IRC - Investors | FGS Global | |
Quanta Services, Inc. | (310) 405-4312 | |
(713) 629-7600 |
Quanta Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three and Twelve Months Ended December 31, 2025 and 2024 (In thousands, except per share information) (Unaudited) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | $ 7,841,948 | $ 6,553,422 | $ 28,479,697 | $ 23,672,795 | |||
Cost of services | 6,624,912 | 5,490,056 | 24,204,616 | 20,162,034 | |||
Gross profit | 1,217,036 | 1,063,366 | 4,275,081 | 3,510,761 | |||
Equity in earnings of integral unconsolidated affiliates | 14,531 | 15,549 | 55,635 | 50,484 | |||
Selling, general and administrative expenses | (593,938) | (506,180) | (2,189,209) | (1,824,754) | |||
Amortization of intangible assets | (142,860) | (115,812) | (498,795) | (382,959) | |||
Increase in fair value of contingent consideration liabilities | (9,840) | (4,200) | (31,203) | (7,064) | |||
Operating income | 484,929 | 452,723 | 1,611,509 | 1,346,468 | |||
Interest and other financing expenses | (75,748) | (56,344) | (261,445) | (202,687) | |||
Interest income | 4,357 | 13,587 | 15,702 | 32,404 | |||
Other income, net | 6,051 | 6,352 | 23,739 | 35,845 | |||
Income before income taxes | 419,589 | 416,318 | 1,389,505 | 1,212,030 | |||
Provision for income taxes | 103,003 | 106,031 | 347,588 | 284,747 | |||
Net income | 316,586 | 310,287 | 1,041,917 | 927,283 | |||
Less: Net income attributable to non-controlling interests | 1,136 | 5,167 | 13,539 | 22,459 | |||
Net income attributable to common stock | $ 315,450 | $ 305,120 | $ 1,028,378 | $ 904,824 | |||
Earnings per share attributable to common stock: | |||||||
Basic | $ 2.11 | $ 2.06 | $ 6.91 | $ 6.16 | |||
Diluted | $ 2.08 | $ 2.03 | $ 6.80 | $ 6.03 | |||
Shares used in computing earnings per share: | |||||||
Weighted average basic shares outstanding | 149,384 | 147,791 | 148,790 | 146,929 | |||
Weighted average diluted shares outstanding | 151,736 | 150,618 | 151,291 | 150,056 | |||
Quanta Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) | |||
December 31, | |||
2025 | 2024 | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 439,508 | $ 741,960 | |
Accounts receivable, net | 6,847,091 | 5,170,935 | |
Contract assets | 1,522,186 | 1,208,619 | |
Inventories | 370,372 | 260,181 | |
Prepaid expenses and other current assets | 724,260 | 469,338 | |
Total current assets | 9,903,417 | 7,851,033 | |
PROPERTY AND EQUIPMENT, net | 3,455,204 | 2,700,277 | |
OPERATING LEASE RIGHT-OF-USE ASSETS | 400,814 | 299,895 | |
OTHER ASSETS, net | 944,050 | 655,709 | |
OTHER INTANGIBLE ASSETS, net | 2,906,188 | 1,860,537 | |
GOODWILL | 7,317,228 | 5,316,443 | |
Total assets | $ 24,926,901 | $ 18,683,894 | |
LIABILITIES AND EQUITY | |||
CURRENT LIABILITIES: | |||
Current maturities of long-term debt | $ 763,898 | $ 62,680 | |
Current portion of operating lease liabilities | 114,377 | 94,162 | |
Accounts payable and accrued expenses | 4,579,458 | 3,722,343 | |
Contract liabilities | 3,258,465 | 2,149,328 | |
Total current liabilities | 8,716,198 | 6,028,513 | |
LONG-TERM DEBT, net of current maturities | 5,231,008 | 4,099,756 | |
OPERATING LEASE LIABILITIES, net of current portion | 309,671 | 222,359 | |
DEFERRED INCOME TAXES | 502,626 | 353,268 | |
INSURANCE AND OTHER NON-CURRENT LIABILITIES | 1,139,524 | 650,281 | |
Total liabilities | 15,899,027 | 11,354,177 | |
TOTAL STOCKHOLDERS' EQUITY | 8,938,249 | 7,317,731 | |
NON-CONTROLLING INTERESTS | 89,625 | 11,986 | |
TOTAL EQUITY | 9,027,874 | 7,329,717 | |
Total liabilities and equity | $ 24,926,901 | $ 18,683,894 | |
Quanta Services, Inc. and Subsidiaries
Supplemental Segment Data
For the Three and Twelve Months Ended
December 31, 2025 and 2024
(In thousands, except percentages)
(Unaudited)
Segment Results
As described previously, during the three months ended March 31, 2025, Quanta began reporting its results under two reportable segments: (1) Electric and (2) Underground and Infrastructure. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure. The following table sets forth segment revenues, segment operating income and operating margins for the periods indicated. Operating margins are calculated by dividing operating income by revenues.
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Revenues: | |||||||||||||||
Electric (a) | 82.0 % | 82.1 % | $ 23,001,468 | 80.8 % | $ 19,012,379 | 80.3 % | |||||||||
Underground and Infrastructure | 1,414,964 | 18.0 | 1,172,934 | 17.9 | 5,478,229 | 19.2 | 4,660,416 | 19.7 | |||||||
Consolidated revenues | 100.0 % | 100.0 % | $ 28,479,697 | 100.0 % | $ 23,672,795 | 100.0 % | |||||||||
Operating income (loss): | |||||||||||||||
Electric (a) (b) | $ 695,639 | 10.8 % | $ 653,226 | 12.1 % | $ 2,360,262 | 10.3 % | $ 1,958,692 | 10.3 % | |||||||
Underground and Infrastructure (c) | 108,490 | 7.7 % | 42,593 | 3.6 % | 398,276 | 7.3 % | 265,030 | 5.7 % | |||||||
Corporate and Non-Allocated Costs (d) | (319,200) | (4.1) % | (243,096) | (3.7) % | (1,147,029) | (4.0) % | (877,254) | (3.7) % | |||||||
Consolidated operating income | $ 484,929 | 6.2 % | $ 452,723 | 6.9 % | $ 1,611,509 | 5.7 % | $ 1,346,468 | 5.7 % | |||||||
(a) During the three and twelve months ended December 31, 2024, revenue of |
(b) Included in operating income for the Electric segment was equity in earnings of integral unconsolidated affiliates of |
(c) Included in operating income for the Underground and Infrastructure segment was a loss of |
(d) Included in corporate and non-allocated costs was, among other things, amortization expense of |
Quanta Services, Inc. and Subsidiaries
Supplemental Data
(In thousands)
(Unaudited)
Remaining Performance Obligations and Backlog (a non-GAAP financial measure)
Quanta's remaining performance obligations represent management's estimate of consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work has not yet begun, which includes estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes they will be earned and are probable of collection.
Quanta has also historically disclosed its backlog, a measure commonly used in its industry but not recognized under GAAP. Quanta believes this measure enables management to more effectively forecast its future capital needs and results and better identify future operating trends that may not otherwise be apparent. Quanta believes this measure is also useful for investors in forecasting Quanta's future results and comparing Quanta to its competitors. Quanta's remaining performance obligations, as described above, are a component of its backlog calculation, which also includes estimated orders under master service agreements (MSAs), including estimated renewals, and certain non-fixed price contracts. Quanta's methodology for determining backlog may not be comparable to the methodologies used by other companies.
The following table reconciles Quanta's total remaining performance obligations to total backlog by reportable segment, along with estimates of amounts expected to be realized within 12 months. As described previously, during the three months ended March 31, 2025, Quanta began reporting its results under two reportable segments: (1) Electric and (2) Underground and Infrastructure. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure. The following table shows dollars in thousands.
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||||||||
12 Month | Total | 12 Month | Total | 12 Month | Total | |||||||
Electric | ||||||||||||
Remaining performance obligations | $ 14,188,737 | $ 21,638,080 | $ 12,124,623 | $ 19,088,111 | $ 10,297,410 | $ 15,654,028 | ||||||
Estimated orders under MSAs and short-term, non-fixed price contracts | 7,755,355 | 14,528,626 | 6,722,325 | 13,555,822 | 6,198,603 | 12,973,779 | ||||||
Backlog | $ 21,944,092 | $ 36,166,706 | $ 18,846,948 | $ 32,643,933 | $ 16,496,013 | $ 28,627,807 | ||||||
Underground and Infrastructure | ||||||||||||
Remaining performance obligations | $ 1,518,060 | $ 2,124,934 | $ 1,325,214 | $ 1,884,648 | $ 953,983 | $ 1,104,609 | ||||||
Estimated orders under MSAs and short-term, non-fixed price contracts | 2,404,135 | 5,684,768 | 2,137,865 | 4,645,458 | 2,321,941 | 4,806,408 | ||||||
Backlog | $ 3,922,195 | $ 7,809,702 | $ 3,463,079 | $ 6,530,106 | $ 3,275,924 | $ 5,911,017 | ||||||
Total | ||||||||||||
Remaining performance obligations | $ 15,706,797 | $ 23,763,014 | $ 13,449,837 | $ 20,972,759 | $ 11,251,393 | $ 16,758,637 | ||||||
Estimated orders under MSAs and short-term, non-fixed price contracts | 10,159,490 | 20,213,394 | 8,860,190 | 18,201,280 | 8,520,544 | 17,780,187 | ||||||
Backlog | $ 25,866,287 | $ 43,976,408 | $ 22,310,027 | $ 39,174,039 | $ 19,771,937 | $ 34,538,824 | ||||||
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income and Adjusted Diluted Earnings Per Share Attributable to Common Stock
For the Three and Twelve Months Ended
December 31, 2025 and 2024
(In thousands, except per share information)
(Unaudited)
The following table presents the reconciliations of the non-GAAP financial measures of Adjusted net income attributable to common stock to net income attributable to common stock and Adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock for the three and twelve months ended December 31, 2025 and 2024. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's performance. Management believes that the exclusion of certain items from net income attributable to common stock and diluted earnings per share attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and better identify operating trends that may not otherwise be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as our peers. However, these non-GAAP measures should not be considered as alternatives to net income attributable to common stock and diluted earnings per share attributable to common stock or other measures of performance that are derived in accordance with GAAP.
As to certain of the items in the table: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) amortization of intangible assets and amortization included in equity in earnings are impacted by Quanta's acquisition activities and investments in integral unconsolidated affiliates, and therefore can vary from period to period; (iii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (v) equity in earnings and losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; (vi) gains and losses on the sales of investments and businesses, and foreign currency translation losses recognized from substantial liquidation of certain foreign operations vary from period to period depending on activity; and (vii) income tax contingency releases vary period to period and depend on the level of reserves for uncertain tax positions and the expiration dates under various federal and state statute of limitations periods.
Because Adjusted net income attributable to common stock and Adjusted diluted earnings per share attributable to common stock, as defined, exclude some, but not all, items that affect net income attributable to common stock and diluted earnings per share attributable to common stock, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income attributable to common stock and diluted earnings per share attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.
Quanta Services, Inc. and Subsidiaries December 31, 2025 and 2024 (In thousands, except per share information) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Reconciliation of Adjusted net income attributable to common stock: | |||||||
Net income attributable to common stock (GAAP as reported) (a) | $ 315,450 | $ 305,120 | $ 1,028,378 | $ 904,824 | |||
Acquisition and integration costs | 23,832 | 4,533 | 94,109 | 29,994 | |||
Increase in fair value of contingent consideration liabilities | 9,840 | 4,200 | 31,203 | 7,064 | |||
Equity in losses (earnings) of non-integral unconsolidated affiliates | 8,675 | (1,236) | 9,172 | (2,649) | |||
(Gain) loss on sale of investments and business (b) | — | — | (205) | 4,370 | |||
Foreign currency translation losses (c) | — | 18,531 | — | 18,531 | |||
Income tax impact of adjustments (d) | (10,429) | (1,271) | (31,740) | (7,180) | |||
Impact of income tax contingency releases (e) | (13,791) | (3,278) | (13,998) | (6,343) | |||
Adjusted net income attributable to common stock before certain non-cash adjustments | 333,577 | 326,599 | 1,116,919 | 948,611 | |||
Non-cash stock-based compensation | 52,826 | 39,711 | 181,947 | 150,526 | |||
Amortization of intangible assets | 142,860 | 115,812 | 498,795 | 382,959 | |||
Amortization included in equity in earnings of integral unconsolidated affiliates | 1,949 | 668 | 7,940 | 4,270 | |||
Income tax impact of non-cash adjustments (d) | (51,411) | (40,634) | (179,165) | (139,924) | |||
Adjusted net income attributable to common stock | $ 479,801 | $ 442,156 | $ 1,626,436 | $ 1,346,442 | |||
Reconciliation of Adjusted diluted earnings per share: | |||||||
Diluted earnings per share attributable to common stock (GAAP as reported) (a) | $ 2.08 | $ 2.03 | $ 6.80 | $ 6.03 | |||
Acquisition and integration costs | 0.16 | 0.03 | 0.62 | 0.20 | |||
Increase in fair value of contingent consideration liabilities | 0.06 | 0.03 | 0.21 | 0.05 | |||
Equity in losses (earnings) of non-integral unconsolidated affiliates | 0.06 | (0.01) | 0.06 | (0.02) | |||
(Gain) loss on sale of investments and business (b) | — | — | — | 0.03 | |||
Foreign currency translation losses (c) | — | 0.12 | — | 0.12 | |||
Income tax impact of adjustments (d) | (0.07) | (0.01) | (0.22) | (0.05) | |||
Impact of income tax contingency releases (e) | (0.09) | (0.02) | (0.09) | (0.04) | |||
Adjusted diluted earnings per share before certain non-cash adjustments | 2.20 | 2.17 | 7.38 | 6.32 | |||
Non-cash stock-based compensation | 0.35 | 0.26 | 1.20 | 1.00 | |||
Amortization of intangible assets | 0.94 | 0.77 | 3.30 | 2.55 | |||
Amortization included in equity in earnings of integral unconsolidated affiliates | 0.01 | — | 0.05 | 0.03 | |||
Income tax impact of non-cash adjustments (d) | (0.34) | (0.26) | (1.18) | (0.93) | |||
Adjusted diluted earnings per share | $ 3.16 | $ 2.94 | $ 10.75 | $ 8.97 | |||
Weighted average shares outstanding for diluted and Adjusted diluted earnings per share | 151,736 | 150,618 | 151,291 | 150,056 | |||
See notes to follow. |
(a) The net income attributable to common stock for the three and twelve months ended December 31, 2024 includes a |
(b) The amount for the twelve months ended December 31, 2024 represents a loss of |
(c) The amounts for the three and twelve months ended December 31, 2024 include foreign currency translation losses in connection with Quanta's substantial liquidation from Latin American operations. |
(d) The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. |
(e) The amounts for the three and twelve months ended December 31, 2025 and 2024 are releases of tax contingencies upon expiration of certain statute of limitations periods. |
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
For the Three and Twelve Months Ended
December 31, 2025 and 2024
(In thousands)
(Unaudited)
The following table presents reconciliations of the non-GAAP financial measures of EBITDA and Adjusted EBITDA to net income attributable to common stock for the three and twelve months ended December 31, 2025 and 2024. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers.
As to certain of the items below: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iii) equity in earnings and losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; (iv) gains and losses on the sales of investments and businesses, and foreign currency translation losses recognized from substantial liquidation of certain foreign operations vary from period to period depending on activity; and (v) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations. Because EBITDA and Adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included below.
Quanta Services, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures EBITDA and Adjusted EBITDA For the Three and Twelve Months Ended December 31, 2025 and 2024 (In thousands) (Unaudited) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | December 31, | ||||||||
2025 | 2024 | 2025 | 2024 | ||||||
Net income attributable to common stock (GAAP as reported) (a) | $ 315,450 | $ 305,120 | $ 904,824 | ||||||
Interest and other financing expenses | 75,748 | 56,344 | 261,445 | 202,687 | |||||
Interest income | (4,357) | (13,587) | (15,702) | (32,404) | |||||
Provision for income taxes | 103,003 | 106,031 | 347,588 | 284,747 | |||||
Depreciation expense | 110,824 | 96,838 | 411,538 | 359,363 | |||||
Amortization of intangible assets | 142,860 | 115,812 | 498,795 | 382,959 | |||||
Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates | 6,606 | 5,506 | 28,014 | 21,114 | |||||
EBITDA | 750,134 | 672,064 | 2,560,056 | 2,123,290 | |||||
Non-cash stock-based compensation | 52,826 | 39,711 | 181,947 | 150,526 | |||||
Acquisition and integration costs (b) | 23,832 | 4,533 | 94,109 | 29,994 | |||||
Equity in losses (earnings) of non-integral unconsolidated affiliates | 8,675 | (1,236) | 9,172 | (2,649) | |||||
(Gain) loss on sale of investments and business (c) | — | — | (205) | 4,370 | |||||
Foreign currency translation losses (d) | — | 18,531 | — | 18,531 | |||||
Increase in fair value of contingent consideration liabilities | 9,840 | 4,200 | 31,203 | 7,064 | |||||
Adjusted EBITDA | $ 845,307 | $ 737,803 | |||||||
(a) The net income attributable to common stock for the three and twelve months ended December 31, 2024 includes a |
(b) The amounts for the three and twelve months ended December 31, 2025 include |
(c) The amount for the twelve months ended December 31, 2024 is a loss of |
(d) The amount for the three and twelve months ended December 31, 2024 includes foreign currency translation losses in connection with our substantial liquidation from Latin American operations. |
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Free Cash Flow
and Other Non-GAAP Definitions
For the Three and Twelve Months Ended
December 31, 2025 and 2024
(In thousands)
(Unaudited)
Reconciliation of Free Cash Flow:
The following table presents a reconciliation of the non-GAAP financial measure of free cash flow to net cash provided by operating activities for the three and twelve months ended December 31, 2025 and 2024. This reconciliation is intended to provide useful information to investors and analysts as they evaluate Quanta's ability to generate the cash required to maintain and potentially expand its business. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from the sale of property and equipment and from insurance settlements related to property and equipment. Management believes that free cash flow provides useful information to Quanta's investors because free cash flow is viewed by management as an important indicator of how much cash is provided or used by routine business operations, including the impact of net capital expenditures. Management uses this measure for capital allocation purposes as it is viewed as a measure of cash available to fund debt payments, acquire businesses, repurchase common stock and debt securities, declare and pay dividends and transact other investing and financing activities. However, this measure should not be considered as an alternative to net cash provided by operating activities or other measures of performance that are derived in accordance with GAAP. The most comparable GAAP financial measure, net cash provided by operating activities, and information reconciling the GAAP and non-GAAP financial measures, are included below. The following table shows dollars in thousands.
Three Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net cash provided by operating activities | $ 712,015 | |||||||
Less: Net capital expenditures: | ||||||||
Capital expenditures | (193,594) | (146,985) | (609,154) | (604,078) | ||||
Cash proceeds from sale of property and equipment and related insurance settlements | 12,477 | 10,413 | 51,916 | 77,643 | ||||
Net capital expenditures | (181,117) | (136,572) | (557,238) | (526,435) | ||||
Free Cash Flow | $ 946,448 | $ 575,443 | ||||||
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated Adjusted Net Income and Adjusted Diluted Earnings Per Share Attributable to Common Stock
For the Full Year 2026
(In thousands, except per share information)
(Unaudited)
The following table presents reconciliations of the non-GAAP financial measures of estimated Adjusted net income attributable to common stock to estimated net income attributable to common stock and estimated Adjusted diluted earnings per share attributable to common stock to estimated diluted earnings per share attributable to common stock for the full year ending December 31, 2026. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's expected future performance. Management believes that the exclusion of certain items from net income attributable to common stock and diluted earnings per share attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and better identify operating trends that may not otherwise be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers. However, these non-GAAP measures should not be considered as alternatives to net income attributable to common stock and diluted earnings per share attributable to common stock or other measures of performance that are derived in accordance with GAAP. As to certain of the items below, (i) non-cash stock-based compensation expense may vary from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) amortization of intangible assets and amortization included in equity in earnings are impacted by Quanta's acquisition activities and investments in integral unconsolidated affiliates, and therefore can vary from period to period; and (iii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity.
Because Adjusted net income attributable to common stock and Adjusted diluted earnings per share attributable to common stock, as defined, exclude some, but not all, items that affect net income attributable to common stock and diluted earnings per share attributable to common stock, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income attributable to common stock and diluted earnings per share attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.
Estimated Range | |||
Full-Year Ending | |||
December 31, 2026 | |||
Reconciliation of estimated Adjusted net income attributable to common stock: | |||
Net income attributable to common stock (as defined by GAAP) | $ 1,271,400 | $ 1,378,300 | |
Acquisition and integration costs (a) | 10,100 | 10,100 | |
Equity in losses of non-integral unconsolidated affiliates | 2,600 | 2,600 | |
Non-cash stock-based compensation | 234,600 | 234,600 | |
Amortization of intangible assets | 623,200 | 623,200 | |
Amortization included in equity in earnings of integral unconsolidated affiliates | 9,800 | 9,800 | |
Income tax impact of adjustments (b) | (228,200) | (228,200) | |
Adjusted net income attributable to common stock | $ 1,923,500 | $ 2,030,400 | |
Reconciliation of Adjusted diluted earnings per share: | |||
Diluted earnings per share attributable to common stock ( as defined by GAAP) | $ 8.36 | $ 9.06 | |
Acquisition and integration costs (a) | 0.07 | 0.07 | |
Equity in losses of non-integral unconsolidated affiliates | 0.02 | 0.02 | |
Non-cash stock-based compensation | 1.54 | 1.54 | |
Amortization of intangible assets | 4.10 | 4.10 | |
Amortization included in equity in earnings of integral unconsolidated affiliates | 0.06 | 0.06 | |
Income tax impact of adjustments (b) | (1.50) | (1.50) | |
Adjusted diluted earnings per share | $ 12.65 | $ 13.35 | |
Weighted average shares outstanding for diluted and Adjusted diluted earnings per share attributable to common stock | 152,100 | 152,100 | |
(a) This amount relates primarily to amounts that, pursuant to certain acquisition purchase agreements, were or will be withheld from the sellers' proceeds, to be paid to certain employees upon satisfaction of post-closing service obligations. |
(b) The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. |
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated EBITDA and Adjusted EBITDA
For the Full Year 2026
(In thousands)
(Unaudited)
The following table presents the reconciliations of the non-GAAP financial measures of estimated EBITDA and estimated Adjusted EBITDA to estimated net income attributable to common stock for the full year ending December 31, 2026. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's expected future performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers.
As to certain of the items below: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted and (ii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity.
Because EBITDA and Adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.
Estimated Range | |||
Full Year Ending | |||
December 31, 2026 | |||
Net income attributable to common stock (as defined by GAAP) | $ 1,271,400 | $ 1,378,300 | |
Interest and other financing expenses, net | 258,000 | 264,000 | |
Provision for income taxes | 433,800 | 483,700 | |
Depreciation expense | 471,400 | 471,400 | |
Amortization of intangible assets | 623,200 | 623,200 | |
Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates | 33,000 | 33,000 | |
EBITDA | 3,090,800 | 3,253,600 | |
Non-cash stock-based compensation | 234,600 | 234,600 | |
Acquisition and integration costs (a) | 10,100 | 10,100 | |
Equity in losses of non-integral unconsolidated affiliates | 2,600 | 2,600 | |
Adjusted EBITDA | $ 3,338,100 | $ 3,500,900 | |
(a) This amount relates primarily to amounts that, pursuant to certain acquisition purchase agreements, were or will be withheld from the sellers' proceeds, to be paid to certain employees upon satisfaction of post-closing service obligations. |
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated Free Cash Flow
For the Full Year 2026
(In thousands)
(Unaudited)
The following table presents a reconciliation of the non-GAAP financial measure of estimated free cash flow to estimated net cash provided by operating activities for the full year ending December 31, 2026. This reconciliation is intended to provide useful information to investors and analysts as they evaluate Quanta's expectations regarding its ability to generate the cash required to maintain and potentially expand its business. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from the sale of property and equipment and from insurance settlements related to property and equipment. Management believes that free cash flow provides useful information to Quanta's investors because free cash flow is viewed by management as an important indicator of how much cash is provided or used by routine business operations, including the impact of net capital expenditures. Management uses this measure for capital allocation purposes as it is viewed as a measure of cash available to fund debt payments, acquire businesses, repurchase common stock and debt securities, declare and pay dividends and transact other investing and financing activities. However, this measure should not be considered as an alternative to net cash provided by operating activities or other measures of performance that are derived in accordance with GAAP. The most comparable GAAP financial measure, net cash provided by operating activities, and information reconciling the GAAP and non-GAAP financial measures, are included below.
Estimated Range | |||
Full Year Ending | |||
December 31, 2026 | |||
Net cash provided by operating activities | $ 2,300,000 | $ 2,850,000 | |
Less: Net capital expenditures | (750,000) | (800,000) | |
Free Cash Flow | $ 1,550,000 | $ 2,050,000 | |
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SOURCE Quanta Services, Inc.
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