Quanta Services Inc. PWR reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same. Yet both the top and bottom lines grew year over year. Shares of this leading national provider of specialty contracting services jumped more than 5% following the release on Feb. 20.
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Quanta is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution, and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenue, adjusted EBITDA, and EPS growth, along with a record backlog.
In early 2025, Quanta acquired two businesses—one specializing in civil solutions in the United States and another offering electrical engineering and industrial technology solutions in Australia. These acquisitions enhance the company’s ability to execute large-scale infrastructure projects while expanding its market presence.
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta Services, Inc. price-consensus-eps-surprise-chart | Quanta Services, Inc. Quote
More on PWR’s Q4 Results
Quanta’s adjusted earnings per share (EPS) of $2.94 topped the consensus estimate of $2.64 by 11.4% and increased 44.1% from the year-ago quarter’s $2.04.
Total revenues of $6.55 billion missed the consensus mark of $6.63 billion by 1.2% but increased 13.3% year over year. The surge in revenue and earnings was primarily fueled by increasing demand for infrastructure solutions, particularly in the power and renewable energy sectors. Quanta benefited from continued investments in electric grid modernization, renewable energy projects, and underground utility expansion.
The operating margin for the quarter expanded 130 basis points (bps) to 6.9% from a year ago. Adjusted EBITDA of $737.8 million improved 34.1% from the year-ago quarter.
The company reported a 12-month backlog of $19.77 billion and a total backlog of $34.54 billion at the end of 2024. This compares with the December 2023-end 12-month backlog of $17.23 billion and the total backlog of $30.11 billion.
PWR’s Segment Details
The company reports results under three segments — Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions.
Revenues from Electric Power Infrastructure Solutions totaled $3.41 billion, which grew 38.6% year over year. The reported figure came ahead of our expectation of $3.3 billion for the quarter. The operating margin jumped 260 bps to 13.1% (above our projection of 11.1%) in the quarter from a year ago. The segment’s 12-month backlog was $10.16 billion, up from $8.36 billion in 2023. The total backlog was $19.90 billion compared with $15.5 billion at 2023-end.
Revenues from Renewable Energy Infrastructure Solutions totaled $1.98 billion (below our expectation of $2.21 billion), down 2.5% year over year. Yet, operating margins expanded 160 bps from the year-ago level to 10.5% (below our projection of 11%). The segment’s 12-month backlog was $6.34 billion, up from $5.63 billion at 2023-end. The total backlog of $8.72 billion increased from $8.13 billion at 2023-end.
Within the Underground Utility and Infrastructure Solutions segment, revenues declined 9.9% from the prior-year quarter’s levels to $1.17 billion (above our expectation of $1.08 billion). The operating margin of 3.6% was down 300 bps from the prior-year quarter. We had projected the metric to be 5.7% for the quarter. The segment’s 12-month backlog totaled $3.28 billion, up from $3.24 billion at 2023-end. The total backlog decreased to $5.91 billion from $6.48 billion at 2023-end.
Quanta’s 2024 Highlights
Adjusted EPS came in at $8.97, up 25.3% from $7.16 a year ago. Total revenues were $23.67 billion, up from $20.88 billion in 2023. Operating margin expanded 30 bps to 5.7% in 2024.
Quanta’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, Quanta had cash and cash equivalents of $742 million, down from $1.29 billion at 2023-end. The company’s long-term debt (net of current maturities) amounted to $4.1 billion, up from $3.66 billion as of Dec. 31, 2023.
Net cash provided by operating activities was $712 million in the fourth quarter, down from $1 billion a year ago. Operating cash flow was $2.08 billion, up from $1.58 billion a year ago. Free cash flow in the quarter was $575.4 million (down from $915.5 million a year ago), and in 2024, it was $1.55 billion (up from $1.21 billion in 2023).
Furthermore, Quanta is optimizing its capital deployment strategy, with $500 million remaining under its stock repurchase program and an 11% increase in its quarterly dividend, reinforcing its commitment to returning value to shareholders.
What PWR Expects for 2025
Quanta expects revenues between $26.6 billion and $27.1 billion. The company reported revenues of $23.67 billion in 2024.
The company expects adjusted EPS in the range of $9.90-$10.50, resenting an increase from $8.97 in 2024. Adjusted EBITDA is projected to be between $2.66 and $2.80 billion compared with $2.33 billion in 2024.
Quanta expects 2025 operating cash flow between $1.70 billion and $2.25 billion and free cash flow between $1.20 billion and $1.70 billion.
PWR’s Zacks Rank & Recent Construction Releases
Quanta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fluor Corporation FLR reported lower-than-expected results for the fourth quarter of 2024. Earnings missed the Zacks Consensus Estimate and declined from the prior year due to a sharp drop in Urban Solutions' margin despite higher revenues. Revenues also missed the consensus mark but increased from the previous year. The company's top line grew year over year on the back of solid contributions from the Urban Solutions and Energy Solutions business segments.
For 2025, Fluor expects adjusted EPS in the range of $2.25-$2.75. The full-year revenues are expected to grow approximately 15% year over year.
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UFP Industries, Inc. UFPI reported mixed fourth-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same. Both metrics declined year over year.
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