Infrastructure solutions provider Quanta (NYSE: PWR) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 19.7% year on year to $7.84 billion. The company’s full-year revenue guidance of $33.5 billion at the midpoint came in 6.4% above analysts’ estimates. Its non-GAAP profit of $3.16 per share was 4.7% above analysts’ consensus estimates.

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Company Overview

A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Quanta’s 20.5% annualized revenue growth over the last five years was incredible. 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 16.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

Quanta also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Quanta’s backlog reached $43.98 billion in the latest quarter and averaged 18% year-on-year growth over the last two years. Because this number is in line with its revenue growth, we can see the company effectively balanced its new order intake and fulfillment processes.

This quarter, Quanta reported year-on-year revenue growth of 19.7%, and its $7.84 billion of revenue exceeded Wall Street’s estimates by 6.4%.

Looking ahead, sell-side analysts expect revenue to grow 10.7% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is attractive given its scale and implies the market is forecasting success for its products and services.

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Operating Margin

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’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 5.5% over the last five years. This profitability was paltry for an industrials business and caused by its suboptimal cost structureand low gross margin.

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.

In Q4, Quanta generated an operating margin profit margin of 6.2%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

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 22.9% compounded annual growth rate over the last five years, higher than its 20.5% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn’t improve 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 shorter period to see if we are missing a change in the business.

For Quanta, its two-year annual EPS growth of 22.4% is similar to its five-year trend, implying strong and stable earnings power.

In Q4, Quanta reported adjusted EPS of $3.16, up from $2.94 in the same quarter last year. This print beat analysts’ estimates by 4.7%. Over the next 12 months, Wall Street expects Quanta’s full-year EPS of $10.75 to grow 15.2%.

Key Takeaways from Quanta’s Q4 Results

We were impressed by how significantly Quanta blew past analysts’ revenue expectations this quarter. We were also glad its full-year EBITDA guidance trumped Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 5.9% to $550.00 immediately after reporting.

Indeed, Quanta had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).