Quanta Services (NYSE:PWR) highlighted record financial and operating results for 2025 and issued an outlook for continued growth in 2026, citing strong demand across utilities, power generation, and large load-related infrastructure markets. Management emphasized what it described as multi-year structural drivers, including grid modernization and accelerating electricity consumption tied in part to data center growth.
2025 results: record revenue, profitability, cash flow and backlog
President and CEO Duke Austin said 2025 marked “another year of significant achievement,” with the company delivering record results and describing Quanta as a “compounder of profitable growth.” CFO Jayshree Desai reported full-year 2025 revenue of $28.5 billion, up 20% versus 2024. Adjusted EBITDA reached a record $2.9 billion, and adjusted diluted earnings per share increased 20% year over year to $10.75.
For the fourth quarter, Quanta reported revenue of $7.8 billion, adjusted EBITDA of $845 million, and adjusted diluted EPS of $3.16. Operating cash flow in the quarter was $1.1 billion, while free cash flow was $946 million, both described as fourth-quarter records for the company.
Management said year-end total backlog reached a record $44 billion, reflecting what Desai called broad-based strength driven by “ongoing investment in grid reliability and resilience,” expanding power generation needs, and long-term infrastructure required to meet rising electricity consumption.
Acquisitions expand capabilities and workforce
Quanta emphasized continued capital deployment through M&A. Austin said the company completed eight acquisitions in 2025, including three significant transactions in the second half. He highlighted the acquisition of Dynamic Systems, which he said strengthens Quanta’s presence in technology, semiconductor, healthcare, and life sciences end markets.
In the fourth quarter, Quanta closed acquisitions of Tri-City Group and Wilson Construction Company, which Austin said expanded the company’s craft skill platform to support load-centered facilities and electric utility programs. Desai added that Quanta also acquired Billings Flying Service in the quarter. Aggregate upfront consideration for the three fourth-quarter transactions was approximately $1.7 billion, funded with a mix of cash and Quanta common stock.
Including acquisitions and organic growth, Austin said Quanta added approximately 11,100 employees in 2025, ending the year with an estimated workforce of about 69,500. Desai noted that even after the acquisitions—following the third-quarter purchase of Dynamic Systems—the company maintained a leverage ratio below 2x.
2026 outlook: double-digit growth and higher capital spending for supply chain strategy
Desai said Quanta’s 2026 expectations call for continued double-digit growth in revenue, net income, and adjusted EBITDA, along with “the opportunity to deliver over 20% growth in adjusted EPS.” She also forecast free cash flow of $1.8 billion at the midpoint of the company’s range.
That free cash flow outlook includes expected capital expenditures of $250 million to $350 million related to the company’s vertical supply chain initiative, and it also assumes collection of the remaining balance tied to a large Canadian renewable transmission project discussed on prior calls.
Data centers and large loads: growing share and multi-year visibility
Responding to analyst questions, Austin said data centers are roughly 10% of the business on a go-forward basis and represent Quanta’s fastest-growing portion of backlog. He described the opportunity as “at least a decade” of growth and said the company expects to continue booking significant backlog in the area.
On technology infrastructure changes such as shifts in data center power architecture, Austin said he does not expect changes like 800-volt DC designs to alter Quanta’s total addressable market. He said the company is working with industry participants, including NVIDIA, to stay ahead of evolving requirements and ensure it has the needed craft capabilities.
Asked about potential financing partnerships in large hyperscale projects, Austin said Quanta does not want to compete with its customers by becoming an investor in assets such as data centers. He said the company has been offered outside capital for expansions, including transformers, but prefers to control its own destiny and deploy capital in its core business.
Generation, transmission, renewables, labor and margins
Quanta discussed power generation opportunities following its previously announced selection by NiSource to help design, procure, and construct generation and infrastructure resources capable of producing about 3 GW for a large data center campus in Indiana. Austin said customers are asking Quanta to build combined-cycle and other generation types, and he expects the company to book more generation backlog, both through joint ventures and directly.
However, he stressed the company’s focus on risk management, saying Quanta is not pursuing fixed-price generation work and will only participate on a risk-adjusted basis. He characterized the ramp for this work as more of a 2027–2029 timeframe.
On large transmission, Austin said there is no 765 kV work in backlog and he does not expect to start such work in 2026. He described current backlog as more programmatic spending rather than major project-driven, while adding that larger awards appear to be “stacking” over the next several years. He said he expects significant 765 kV and other transmission work to be booked for later periods, including the latter half of 2027.
Regarding electric infrastructure margins, Austin said the company took a “prudent approach” in guidance and acknowledged opportunities to improve performance. He also noted that organic growth of around 6,000 employees can pressure margins and said more than half the business is tied to regulated utility environments. He emphasized a long-term compounding approach rather than near-term margin expansion and reiterated the company’s focus on quality of earnings and risk profile.
Quanta also addressed supply chain constraints, with Austin framing the company’s planned investment of approximately $500 million to $700 million over the next several years in power transformer manufacturing and vertical supply chain strategy as a way to de-risk execution. He said delays in key equipment such as transformers and breakers can create “significant issues,” and described the effort as intended to improve certainty and support customer affordability.
On renewables, Austin said the company continues to expect double-digit growth and can see opportunities developing through 2030, while acknowledging the sector can be “noisy” due to policy and regulatory dynamics. Desai added that Quanta’s customers have been strategic in managing those dynamics through safe harboring and maintaining robust pipelines, leading management to describe renewables as “business as usual.”
Finally, Austin said craft labor markets are tight broadly, with data center-related work among the tightest areas currently. He said Quanta is working to build workforce pipelines, including through efforts such as engagement with Veterans in Energy and through a range of union and non-union channels. He also said the company is evaluating how artificial intelligence can improve productivity and costs, including potential impacts on engineering workflows, while emphasizing the need to manage workforce transitions in a growth-oriented way.
About Quanta Services (NYSE:PWR)
Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.
In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.
