[8-K] Quanta Services, Inc. Reports Material Event

Rhea-AI Filing Summary

Smith & Nephew (NYSE:SNN) posted another solid period in its 6-K.

• Q2 2025 revenue rose to $1.553 bn, +7.8% reported (+6.7% underlying); H1 revenue reached $2.961 bn, +4.7% reported (+5.0% underlying) despite two fewer trading days.
• H1 trading profit climbed 11.2% to $523 m; trading margin widened 100 bps to 17.7%, while operating profit jumped 30.6% to $429 m.
• Free cash flow surged to $244 m (H1 2024: $39 m) on 93% cash-conversion; net debt/adj. EBITDA stands at 1.8×.
• Interim dividend increased 4.2% to 15.0¢ per share and a $500 m share-buyback was announced for H2 2025.
• FY 2025 outlook unchanged: ~5% underlying revenue growth (5.5% reported) and 19-20% trading margin, absorbing a $15-20 m tariff hit.

Growth was broad-based: Orthopaedics +5.0% underlying, Sports Medicine & ENT +5.7%, Advanced Wound Management +10.2%. Recent product launches generated 75% of H1 growth, and the 12-Point Plan cut inventory by $69 m (-46 DSI days). Orthopaedics margin improved 230 bps; Advanced Wound margin +160 bps.

Key risks: China VBP pressure, Emerging-Markets H1 underlying −0.9%, potential 2026 Medicare changes to skin substitutes, higher trading-tax rate (19.8% vs. 17.8%) and $15-20 m tariff headwind. Nonetheless, operational gains and balance-sheet strength underpin continued cash returns.

Insights

Financial Analyst

TL;DR – Beats on growth, margin, cash; buyback signals confidence.

Revenue accelerated to 6.7% underlying in Q2, well ahead of the 5% full-year target, while H1 trading margin expanded 100 bps to 17.7% on manufacturing savings and portfolio rationalisation. Free cash flow quintupled to $244 m and leverage held at 1.8×, allowing a $500 m buyback atop a 4.2% dividend increase without straining covenants. Guidance of 19-20% margin implies a further 130-230 bps lift in H2, pointing to double-digit EPSA growth. For a £12 bn market-cap, the repurchase equates to ~3% of shares—an accretive deployment of excess cash. Overall, fundamentals trend positively and support multiple expansion.

Healthcare Policy & Risk Analyst

TL;DR – China, reimbursement and tariff issues temper the upside.

Underlying revenue in Emerging Markets fell 0.9% and China faces ongoing VBP pressure on arthroscopy consumables, limiting Sports Med growth. CMS proposals for single-payment skin substitutes could dent Advanced Wound margins from 2026; management flags it as a likely headwind. The company also bakes in a $15-20 m tariff drag and a higher 19.8% trading-tax rate. While inventory reductions improve working-capital optics, they may be non-repeatable. Investors should watch H2 progress toward the ambitious 19-20% margin band and any escalation of Chinese pricing reforms.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported):

August 4, 2025

Quanta Services, Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

001-13831		74-2851603
(Commission File No.)		(IRS Employer Identification No.)

2727 North Loop West

Houston, Texas 77008

(Address of principal executive offices, including ZIP code)

(713) 629-7600

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of exchange on which registered
Common Stock, $0.00001 par value		PWR		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

On August 4, 2025, Quanta Services, Inc. (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with BofA Securities, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Truist Securities, Inc., as representatives of the several underwriters named in Schedule A to the Underwriting Agreement (the “Underwriters”), with respect to the issuance and sale in an underwritten public offering (the “Offering”) by the Company of (i) $500,000,000 aggregate principal amount of the Company’s 4.300% Senior Notes due 2028 (the “2028 Notes”), (ii) $500,000,000 aggregate principal amount of the Company’s 4.500% Senior Notes due 2031 (the “2031 Notes”) and (iii) $500,000,000 aggregate principal amount of the Company’s 5.100% Senior Notes due 2035 (together with the 2028 Notes and the 2031 Notes, the “Notes”).

The material terms of the Offering are described in the prospectus supplement dated August 4, 2025, as filed by the Company with the Securities and Exchange Commission (the “Commission”). The offer and sale of the Notes is registered with the Commission pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-281209) that was filed with the Commission on August 2, 2024. Subject to the satisfaction of customary conditions to closing, the transactions contemplated by the Underwriting Agreement will be consummated on August 7, 2025.

The Underwriting Agreement contains customary indemnification and contribution provisions whereby the Company, on the one hand, and the Underwriters, on the other hand, have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act.

The foregoing description of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, a copy of which is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Some of the Underwriters and their affiliates have engaged in, and may in the future engage in, investment banking and other commercial dealings in the ordinary course of business with the Company and its affiliates. They have received, or may in the future receive, customary fees and commissions for these transactions. In particular, several of the Underwriters or their affiliates have a lending relationship with the Company or serve as a broker in executing stock repurchases, or both, and U.S. Bank Trust Company, National Association, the trustee, is also an affiliate of U.S. Bancorp Investments, Inc., one of the Underwriters.

Item 7.01 Regulation FD Disclosure.

On August 4, 2025, the Company issued a press release announcing the pricing of the Offering. A copy of the press release is being furnished as Exhibit 99.1 to this Report and is incorporated herein by reference.

The information furnished in Item 7.01 of this Report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description
1.1		Underwriting Agreement, dated August 4, 2025, by and among Quanta Services, Inc. and BofA Securities, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Truist Securities, Inc., as representatives of the several underwriters named therein.
99.1		Press Release dated August 4, 2025.
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated August 5, 2025				Quanta Services, Inc.
				By:		/s/ Jayshree Desai
						Name: Jayshree Desai
						Title: Chief Financial Officer