Abstract

Quanta Services will release its fiscal fourth-quarter 2025 results on February 19, 2026 Pre-Market; this preview compiles market expectations and institutional commentary to frame revenue, margin, and EPS dynamics alongside segment performance.

Market Forecast

Consensus and company guidance point to Quanta Services’ current-quarter revenue estimate of $7.37 billion, with a projected adjusted EPS of 3.02 and EBIT of $501.61 million; year-over-year growth rates implied by tool data are 11.44% for revenue, 15.39% for EPS, and 12.21% for EBIT. No explicit company forecast was disclosed for gross profit margin or net profit margin, but last quarter’s margins provide a reference for near-term expectations. The main business highlight reflects continued scale in electric power infrastructure, with near-term growth drivers in high-voltage transmission, grid modernization, and utility hardening. The most promising segment is Electric Power, expected to remain the core growth engine; last quarter this business delivered $6.17 billion in revenue and held a dominant mix of total sales, with the remainder in pipeline and industrial infrastructure.

Last Quarter Review

Quanta Services’ previous quarter delivered revenue of $7.63 billion, a gross profit margin of 15.94%, GAAP net profit attributable to the parent company of $339.00 million, a net profit margin of 4.45%, and adjusted EPS of 3.33; the year-over-year growth embedded in the reported metrics was positive across revenue, EBIT, and EPS. A notable financial highlight was outperformance versus revenue consensus, with actual sales exceeding estimates by $242.43 million, and adjusted EPS beating by $0.07. Main business highlights centered on Electric Power at $6.17 billion and Pipeline and Industrial Infrastructure at $1.46 billion, reinforcing the company’s concentration in grid-related services; year-over-year mix shifts favored power, consistent with industry demand patterns.

Current Quarter Outlook (with major analytical insights)

Electric Power Infrastructure: Core Execution and Margin Path

Electric power remains the largest driver of Quanta Services’ performance, supported by multi-year programs in transmission capacity expansion, substation upgrades, and distribution reliability. The company’s backlog and master service agreements with large utilities typically underpin revenue visibility, and the prior quarter’s gross margin of 15.94% serves as a useful benchmark for near-term margin cadence. Factors shaping the margin trajectory this quarter include project mix (higher-complexity EPC projects can carry better spreads), labor productivity, and weather impacts on field resources. With the forecast revenue growth of 11.44% for the quarter, the electric segment’s share of the mix implies continued operational leverage if project execution remains on schedule. The net margin reference at 4.45% last quarter suggests earnings sensitivity to contingencies and pass-through costs, but the guided EPS growth of 15.39% indicates expected efficiency gains or favorable mix. Overall, investors will watch conversion of high-voltage and grid-hardening programs into earnings, with EBIT growth forecast at 12.21% signaling stable to slightly improving operating profitability.

Pipeline and Industrial Infrastructure: Stable Contributions and Mix Considerations

Pipeline and industrial infrastructure offers diversification for Quanta Services, contributing $1.46 billion last quarter and roughly one-fifth of total revenue. Performance this quarter will hinge on project timing in midstream rehabilitation, integrity management, and selective industrial upgrades, which often carry different margin profiles versus electric power. Mix effects can modestly dilute or enhance gross margin depending on the balance between maintenance service contracts and larger EPC scopes. With company-level revenue projected to grow 11.44% year-over-year, this segment’s steady backlog should support consistent contributions, though headline margin trends will likely be set by electric power. In assessing near-term earnings, investors should focus on risk management across multi-party contracts and commodity-linked schedule variance, which can affect cost recovery and margin recognition. The segment’s role is primarily to smooth revenue and cash flows while the electric business drives growth, so any unexpected outperformance in industrial EPC would be incremental upside.

Stock Price Drivers: EPS Quality, Project Mix, and Backlog-to-Revenue Conversion

The company’s stock performance this quarter will be most influenced by the quality of EPS relative to the 3.02 estimate and evidence that EBIT growth of 12.21% tracks backlog conversion without margin slippage. Investors will parse any commentary on labor availability, as productivity and staffing efficiency directly impact project schedules and field margins. Mix between lump-sum EPC and unit-rate maintenance contracts also matters: higher EPC exposure can enhance gross margin but raises execution risk, while maintenance portfolios offer predictability with lower spreads. Another key driver is cash conversion from large projects, which informs working capital needs and the sustainability of margin improvements. If revenue lands near the $7.37 billion forecast with margins consistent with last quarter’s 15.94% gross and a net margin close to mid-single digits, the market is likely to view the print as aligned with expectations, with upside if EPS and EBIT beat consensus.

Analyst Opinions

Across recent institutional commentaries, positive views outnumber neutral or cautious stances. Jefferies upgraded Quanta Services to Buy with a raised price target of $469, citing expanding addressable markets across data centers, renewables, transmission, and pipelines, alongside disciplined execution and strong customer relationships that support sustained high-teens EPS growth. Bank of America Securities reiterated a Buy rating with a target near $500, emphasizing the company’s leverage to grid modernization and skilled labor advantages that underpin earnings expansion. Meanwhile, several institutions—including KeyBanc, B. Riley Securities, and Guggenheim—maintained Hold ratings, reflecting a balanced outlook on valuation and execution risks; however, the ratio of bullish to neutral/hold views skews in favor of the bullish camp based on recent updates. The dominant perspective expects Quanta Services to deliver another quarter of year-over-year EPS and EBIT growth, supported by robust utility demand and disciplined project management. Analysts point to backlog quality and recurring service frameworks as catalysts for predictable revenue, while acknowledging that project timing and cost inflation remain factors to monitor. The majority view anticipates revenue around $7.37 billion with EPS tracking or exceeding the 3.02 forecast, and argues that execution on high-voltage transmission and grid hardening should sustain margin resilience through the quarter.