Quanta is Set to Report Q4 Earnings: Here's What Investors Must Know

Quanta Services, Inc. PWR is scheduled to report its fourth-quarter 2025 results on Feb. 19, 2026, before the opening bell, against the backdrop of record backlog and raised 2025 guidance exiting the third quarter.

In the last reported quarter, the adjusted earnings and revenues topped the Zacks Consensus Estimate by 2.5% and 2.4%, respectively. Year over year, both metrics grew 22.4% and 17.6%, respectively. In the September quarter, the company reported revenues of $7.63 billion, alongside a record backlog of $39.2 billion, reflecting accelerating demand in the Electric segment.

Quanta’s earnings topped the consensus mark in each of the trailing four quarters, with the average surprise of 5.8%.

Quanta Services, Inc. Price and EPS Surprise

Quanta Services, Inc. price-eps-surprise | Quanta Services, Inc. Quote

PWR’s Trend in Estimate Revision

The Zacks Consensus Estimate for Quanta’s fourth-quarter adjusted earnings per share (EPS) has trended downward to $3.00 from $3.01 over the past 30 days. The revised estimated figure indicates 2% growth from the year-ago EPS of $2.94.

The consensus mark for revenues is pegged at $7.28 billion, implying 11% year-over-year growth.

Factors Likely to Have Defined Quanta’s Q4 Performance

Revenues - Electric Strength to Lead

The Electric Infrastructure Solutions segment (contributed 80.9% to third-quarter 2025 revenues) is expected to have been the primary growth driver, reflecting sustained demand for transmission, substation and distribution upgrades, as well as renewable energy and battery storage integration. Utilities continue to modernize and harden grids to accommodate electrification, data center load growth and industrial reshoring, which is likely to have supported strong project activity into year-end. Large load-driven infrastructure and generation-related solutions may also have contributed incrementally as utilities advanced capacity expansion programs. Quanta’s integrated, self-perform model and strong remaining performance obligations exiting the third quarter are likely to have provided revenue visibility and supported steady backlog conversion in the fourth quarter.

The Underground Utility and Infrastructure Solutions segment (contributed 19.1% to third-quarter 2025 revenues) may have benefited from ongoing mechanical, process and underground infrastructure projects, including contributions from recent acquisitions. Exposure to technology, semiconductor and healthcare-related load center markets is likely to have provided additional support.

Despite strong structural demand, several headwinds may have influenced fourth-quarter revenue realization. Management has highlighted weather, regulatory and permitting challenges, supply chain constraints, trade policy uncertainty and broader macroeconomic pressures, including inflation and interest rates, as factors that can affect project timing and execution. Such issues may have led to deferrals, scope adjustments, or slower-than-expected project ramp-ups.

Selective bidding on large-diameter pipeline projects within the Underground segment is also likely to have limited revenue upside, as the company prioritizes risk-adjusted returns over volume. In addition, project mix shifts or delays in customer capital programs may have tempered sequential growth.

Segment-wise, the Zacks Consensus Estimates for revenues from the Electric Infrastructure Solutions segment and the Underground Utility and Infrastructure Solutions segment are expected to increase year over year by 76% to $6 billion and 16.7% to $1.37 billion, respectively.

Margins

Quanta’s fourth-quarter 2025 margins are likely to have been supported by continued strength in the Electric Infrastructure Solutions segment. Favorable project mix in transmission, substation and grid modernization work, along with operating leverage from solid revenue conversion, may have aided profitability. Contributions from integral unconsolidated affiliates, expected to add about $50 million to 2025 operating income, are likely to have provided an additional boost. The Underground and Infrastructure segment may have benefited from steady execution in mechanical and process infrastructure projects.

However, margins may have faced pressure from inflation in labor and materials, supply chain constraints and weather-related disruptions. Regulatory and permitting delays, project timing variability and mix shifts toward lower-margin work are likely to have weighed on profitability. Overall, fourth-quarter margins are likely to have been shaped by strong Electric execution, partly offset by cost and timing headwinds.

Segment-wise, per the Zacks Consensus Estimate, the company’s operating profit in the Electric Infrastructure Solutions segment is expected to grow to $647 million in the fourth quarter from $445 million a year ago. The same for the Underground Utility and Infrastructure Solutions segment is expected to grow to $111 million from $42.6 million reported a year ago.

What Our Model Predicts for Quanta

Our proven model does not conclusively predict an earnings beat for Quanta this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

Earnings ESP: PWR has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The stock currently carries a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Sterling Infrastructure, Inc. STRL currently has an Earnings ESP of +2.01% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sterling’s earnings have topped in all the trailing four quarters, the average surprise being 14%. Sterling’s earnings for the fourth quarter of 2025 are expected to grow 82.2%.

AAON, Inc. AAON has an Earnings ESP of +11.73% and a Zacks Rank of 3.

AAON’s earnings topped estimates in two of the trailing four quarters and missed on the other two occasions, with the average negative surprise being 3.3%. AAON’s earnings for the fourth quarter of 2025 are expected to increase 50%.

Orion Group Holdings, Inc. ORN currently has an Earnings ESP of +16.67% and a Zacks Rank of 2.

Orion’s earnings topped estimates in all the trailing four quarters, with the average surprise being 241.4%. Orion’s earnings for the fourth quarter of 2025 are expected to decline 62.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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