Latest news with #DukeAustin
Yahoo
31-07-2025
- Business
- Yahoo
Quanta lifts annual forecast, buys Dynamic Systems in $1.35 billion deal
(Reuters) -Infrastructure solutions provider Quanta Services raised its annual results forecast on Thursday and said it has acquired peer Dynamic Systems in a deal valued at about $1.35 billion. The deal, which closed on July 25, was financed through $1.15 billion in cash and roughly $200 million in Quanta's common stock. "Dynamic Systems operates in growing end-markets, has a strong and visible opportunity pipeline and an accretive contribution to Quanta's growth, cash flow conversion, returns and earnings per share," Quanta CEO Duke Austin said. Quanta provides infrastructure services for the utility, renewable energy, technology, communications, pipeline, and energy industries. Separately, the company forecast annual revenue of between $27.4 billion and $27.9 billion, higher than its previous forecast of $26.7 billion to $27.2 billion. It now expects adjusted earnings for full-year 2025 to range between $10.28 and $10.88 per share, up from its prior view of $10.05 and $10.65 per share. The upbeat forecasts come as Quanta benefits from increasing power demand in the U.S. resulting from the data center boom, aging power grids and electrification. The company also reiterated risks to project timing and execution due to trade policy changes, macroeconomic challenges, extreme weather, regulatory issues and supply chain snags. However, the terms of Quanta's existing contracts limit the company's exposure to direct cost increases resulting from tariffs and could help it mitigate such risks. The Houston, Texas-based company posted second-quarter adjusted profit of $2.48 per share, compared with analysts' estimate of $2.44 per share, according to data compiled by LSEG. Revenue for the quarter ended June 30 rose 21% to $6.77 billion, compared with estimates of $6.57 billion.
Yahoo
15-05-2025
- Business
- Yahoo
PWR Q1 Earnings Call: Quanta Raises Outlook as Grid and Data Center Demand Accelerate
Infrastructure solutions provider Quanta (NYSE:PWR) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 23.9% year on year to $6.23 billion. The company expects the full year's revenue to be around $26.95 billion, close to analysts' estimates. Its non-GAAP profit of $1.78 per share was 6.9% above analysts' consensus estimates. Is now the time to buy PWR? Find out in our full research report (it's free). Revenue: $6.23 billion vs analyst estimates of $5.87 billion (23.9% year-on-year growth, 6.2% beat) Adjusted EPS: $1.78 vs analyst estimates of $1.66 (6.9% beat) Adjusted EBITDA: $503.9 million vs analyst estimates of $478.7 million (8.1% margin, 5.3% beat) The company slightly lifted its revenue guidance for the full year to $26.95 billion at the midpoint from $26.85 billion Management raised its full-year Adjusted EPS guidance to $10.35 at the midpoint, a 1.5% increase EBITDA guidance for the full year is $2.75 billion at the midpoint, above analyst estimates of $2.72 billion Operating Margin: 3.8%, in line with the same quarter last year Free Cash Flow Margin: 1.9%, down from 3.6% in the same quarter last year Backlog: $35.25 billion at quarter end, up 17.9% year on year Market Capitalization: $50.85 billion Quanta's first quarter performance was shaped by expanding demand for grid modernization and infrastructure solutions, particularly in electric transmission and large-scale data center projects. CEO Duke Austin attributed the quarter's results to Quanta's ability to deliver integrated, self-perform services across engineering, procurement, and construction, citing strength in both legacy businesses and newer segments like technology and load centers. Austin called out Quanta's 'unmatched craft workforce' and the company's solutions-based approach as differentiators in a market facing increased complexity and scale requirements. Looking ahead, management raised full-year guidance in response to continued momentum in core markets and a growing backlog. CFO Jayshree Desai emphasized that Quanta's contract structures and proactive supply chain management are expected to limit exposure to tariffs and policy changes. Desai also noted that the company is 'actively collaborating with customers to optimize costs' and that Quanta's diversified portfolio positions it to weather potential delays or disruptions in renewable energy and transmission projects. Quanta's management pointed to several underlying business factors driving the quarter's growth and updated outlook. The company's integrated approach and diversification helped absorb industry shifts, while utilities and technology customers ramped up investment in grid and energy infrastructure. Transmission project momentum: Quanta is seeing the early stages of what CEO Duke Austin described as the largest wave of high-voltage transmission expansion in decades, driven by rising power demand, data center growth, and grid reliability needs. He compared current U.S. grid expansion to major build-outs of the 1970s, emphasizing the scale and urgency of new transmission lines. Technology and data center growth: The technology and load center segment, which includes work for Cupertino Electric and data center infrastructure, reported particularly strong growth. Management highlighted the $300 billion North American addressable market for technology infrastructure, with Quanta capturing a growing share through specialized electrical and construction services. Resilient renewables pipeline: While acknowledging recent solar import tariffs, Austin said Quanta's renewable energy business remains steady, with robust activity in solar, battery storage, and onshore wind. He noted that 'solar is the cheapest form of energy in many ways,' and that Quanta's diverse project mix reduces the risk from project push-outs. Supply chain and manufacturing investments: Quanta has taken steps to secure U.S.-based transformer manufacturing, partly in response to concerns over reliance on foreign suppliers. This move is intended to strengthen the company's supply chain for critical grid equipment, particularly in light of trade policy uncertainty. Acquisition integration and synergy: Management reported that the integration of recent acquisitions, including Cupertino Electric, is ahead of schedule, driving incremental backlog and positioning Quanta for additional large project awards in technology and utility infrastructure. Management's outlook for the remainder of the year centers on sustained demand for transmission upgrades, data center builds, and utility grid solutions, balanced against ongoing policy, supply chain, and workforce factors. Transmission and load growth: The need for expanded transmission capacity to meet rising electricity demand, especially from data centers and industrial projects, is expected to drive multi-year growth opportunities. Renewable energy and storage: Continued investment in utility-scale solar, battery storage, and wind projects is anticipated as utilities and developers seek cost-effective solutions to meet demand and regulatory requirements. Quanta's diversified project portfolio is designed to mitigate potential delays from tariffs or policy changes. Labor and supply chain management: Scaling the workforce and managing key equipment supply remain priorities, with management emphasizing internal training programs and U.S.-based manufacturing to address labor shortages and mitigate supply risks. Ameet Thakkar (BMO Capital Markets): Asked if recent setbacks in grid operator contracts, such as with Long Island Power Authority, were included in guidance. Management clarified these were not factored into current guidance and expressed interest in similar opportunities if they arise. Andy Kaplowitz (Citi Research): Sought details on the scale and timing of transmission project backlogs, especially after recent Texas approvals. Management expects large transmission projects to enter the backlog in the third or fourth quarter, citing strong customer engagement. Joe Osha (Guggenheim Partners): Questioned the impact of new solar tariffs on Quanta's renewables pipeline. CEO Duke Austin stated there has been no material impact so far and the company's project mix can absorb potential push-outs. Jamie Cook (Truist Securities): Inquired about margin trajectory as project mix shifts toward larger, higher-capex transmission projects. Management expects margins to remain stable in the near term, with training costs offsetting potential gains from project scale. Brian Brophy (Stifel Nicolaus): Asked about technology and load center segment growth drivers. Management attributed strong results to data center and semiconductor projects, with Cupertino Electric playing a central role. Looking forward, our analysts will monitor (1) the pace at which large transmission projects are awarded and converted to backlog, (2) how Quanta manages supply chain risks and workforce expansion to maintain execution certainty, and (3) any tangible effects from tariffs or changes to energy policy on renewables and industrial project pipelines. Progress in integrating acquisitions and the ability to capture new data center and technology infrastructure contracts will also be important indicators of Quanta's strategic execution. Quanta currently trades at a forward P/E ratio of 32.2×. Should you load up, cash out, or stay put? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
01-05-2025
- Business
- Yahoo
Quanta's (NYSE:PWR) Q1: Beats On Revenue, Stock Soars
Infrastructure solutions provider Quanta (NYSE:PWR) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 23.9% year on year to $6.23 billion. The company expects the full year's revenue to be around $26.95 billion, close to analysts' estimates. Its non-GAAP profit of $1.78 per share was 6.9% above analysts' consensus estimates. Is now the time to buy Quanta? Find out in our full research report. Revenue: $6.23 billion vs analyst estimates of $5.87 billion (23.9% year-on-year growth, 6.2% beat) Adjusted EPS: $1.78 vs analyst estimates of $1.66 (6.9% beat) Adjusted EBITDA: $503.9 million vs analyst estimates of $478.7 million (8.1% margin, 5.3% beat) The company slightly lifted its revenue guidance for the full year to $26.95 billion at the midpoint from $26.85 billion Management raised its full-year Adjusted EPS guidance to $10.35 at the midpoint, a 1.5% increase EBITDA guidance for the full year is $2.75 billion at the midpoint, above analyst estimates of $2.72 billion Operating Margin: 3.8%, in line with the same quarter last year Free Cash Flow Margin: 1.8%, down from 3.6% in the same quarter last year Backlog: $35.3 billion at quarter end, up 18.1% year on year Market Capitalization: $43.4 billion "Quanta is pleased to report strong first quarter results, including robust double-digit growth in revenue, adjusted EBITDA and adjusted earnings per share, along with record backlog of $35.3 billion," said Duke Austin, President and Chief Executive Officer of Quanta Services. A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Quanta's sales grew at an incredible 15.6% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Quanta's annualized revenue growth of 19.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can dig further into the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Quanta's backlog reached $35.3 billion in the latest quarter and averaged 23.2% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Quanta's products and services but raises concerns about capacity constraints. This quarter, Quanta reported robust year-on-year revenue growth of 23.9%, and its $6.23 billion of revenue topped Wall Street estimates by 6.2%. Looking ahead, sell-side analysts expect revenue to grow 10.5% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is attractive given its scale and suggests the market is forecasting success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Quanta was profitable over the last five years but held back by its large cost base. Its average operating margin of 5.4% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Quanta's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Quanta generated an operating profit margin of 3.8%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Quanta's EPS grew at an astounding 26.8% compounded annual growth rate over the last five years, higher than its 15.6% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn't expand and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Quanta, its two-year annual EPS growth of 22.4% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q1, Quanta reported EPS at $1.78, up from $1.41 in the same quarter last year. This print beat analysts' estimates by 6.9%. Over the next 12 months, Wall Street expects Quanta's full-year EPS of $9.33 to grow 14%. We were impressed by how significantly Quanta blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also glad it raised its full-year guidance, outperforming Wall Street's estimates. Overall, we think this was a solid quarter with some key metrics above expectations. The stock traded up 6.3% to $310.73 immediately following the results. Quanta had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Q4 Earnings Recap: Quanta (NYSE:PWR) Tops Energy Products and Services Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Quanta (NYSE:PWR) and the best and worst performers in the energy products and services industry. Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. The 4 energy products and services stocks we track reported a softer Q4. As a group, revenues missed analysts' consensus estimates by 11.7%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 25.3% since the latest earnings results. A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications. Quanta reported revenues of $6.55 billion, up 13.3% year on year. This print fell short of analysts' expectations by 1%, but it was still a very strong quarter for the company with a solid beat of analysts' EBITDA estimates. "Quanta's fourth-quarter results reflect the strength of our business, delivering double-digit growth across key financial metrics, $575 million in free cash flow and record backlog. This caps another year of success, with record revenues, profits and cash flow, while maintaining a rock-solid balance sheet that positions us for continued strategic growth. I want to recognize the unwavering dedication of our Quanta family, whose expertise and commitment to excellence continues to drive our success," said Duke Austin, President and Chief Executive Officer of Quanta Services. Quanta achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street's published projections, leaving some wishing for even better results (analysts' consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.4% since reporting and currently trades at $252.75. We think Quanta is a good business, but is it a buy today? Read our full report here, it's free. Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors. Ameresco reported revenues of $532.7 million, up 20.7% year on year, outperforming analysts' expectations by 1.1%. The business performed better than its peers, but it was unfortunately a slower quarter with full-year EBITDA guidance missing analysts' expectations. Ameresco pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 43% since reporting. It currently trades at $10.42. Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it's free. Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors. FTAI Infrastructure reported revenues of $80.76 million, flat year on year, falling short of analysts' expectations by 14.8%. It was a disappointing quarter as it posted a significant miss of analysts' EPS estimates. As expected, the stock is down 35.1% since the results and currently trades at $3.69. Read our full analysis of FTAI Infrastructure's results here. Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries. MDU Resources reported revenues of $535.5 million, down 52.8% year on year. This number came in 32.3% below analysts' expectations. It was a disappointing quarter as it also logged full-year EPS guidance missing analysts' expectations and a significant miss of analysts' EBITDA estimates. MDU Resources had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 9.5% since reporting and currently trades at $16.25. Read our full, actionable report on MDU Resources here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. 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