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- **Record Growth**: Q3 2025 revenue up 15% YoY to $7.6 billion, with $39.2 billion record backlog.
- **Strategic Expansion**: 50-50 JV with Zachary to build 3 GW CCGT plant, part of $6-7 billion NiSource project.
- **Financial Strength**: Raised 2025 guidance to $27.8-28.2 billion revenue and $1.5 billion free cash flow.
- **Margin Confidence**: JV CCGT work expected to meet or exceed Electric segment margin targets.
- **2026 Vision**: Guided for double-digit EPS growth, with large projects starting to contribute in 2027.

**【CEO Summary Section】**
- Quanta reported Q3 2025 revenue of $7.6 billion, up 15% year-over-year, driven by double-digit growth across all segments.
- Record backlog of $39.2 billion reflects accelerating demand in the Electric segment and robust activity across end markets.
- Announced expansion of Total Solutions platform, including a 50-50 JV with Zachary to build a 3 GW combined cycle gas turbine (CCGT) plant for NiSource, with associated battery and transmission infrastructure.
- Emphasized strategic focus on large converging markets (utilities, power consumers, industrial operators) and disciplined capital allocation.
- Guided for another year of double-digit adjusted EPS growth in 2026, supported by $27.8-28.2 billion in full-year 2025 revenue and $1.5 billion free cash flow.

**【CFO Financial Commentary】**
- Q3 2025 financial highlights:
  - Net income: $339 million ($2.24 per diluted share)
  - Adjusted EPS: $3.33 (vs. $2.85 prior year)
  - Adjusted EBITDA: $858 million (11.3% margin)
  - Free cash flow: $438 million (year-to-date $1.2 billion)
- Raised 2025 full-year guidance:
  - Revenue: $27.8-28.2 billion (vs. prior $27.3-27.7 billion)
  - Free cash flow: $1.5 billion (vs. prior $1.3 billion)
- Completed $1.5 billion debt issuance at 40bps lower rate than prior year, reflecting improved credit profile.

**【Q&A Key Highlights】**
- **765kV Transmission Projects**: While no 765kV work in backlog, extensive discussions with AEP and others; expects projects to enter backlog in 2026+.
- **JV Execution Risk**: JV with Zachary designed to derisk through collaborative approach, shared risk/reward structure, and client-aligned cost escalation protections.
- **Margins on CCGT Work**: Guided that JV's margin will be at or above Electric segment average, supported by self-performance of ~80% of scope.
- **M&A Strategy**: No plans to acquire pure EPC firms; focused on strategic vertical integrations (e.g., DSI mechanical services acquisition).
- **Workforce Challenges**: Adding ~6,000 craft workers/year via acquisitions; focused on recruiting inside wiremen and mechanical trades with curriculum-based training programs.
- **Texas Pipeline Growth**: Dynamic Systems (recent acquisition) seeing strong demand for midstream infrastructure; no plans for large-diameter pipe unless risk-derisked.
- **2026 Outlook**: Expect continued backlog growth, with large projects (e.g., JV CCGT, 765kV) starting to flow into revenue in 2027+.

Quanta Services, Inc. (PWR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PWR

PWR fundamentals

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