(Reuters) - Energy contractor Quanta Services (NYSE:PWR) beat fourth-quarter profit estimates on Thursday, on higher demand for its services related to power and infrastructure, sending shares up 7% before the bell.
Warming global temperatures have aggravated extreme weather conditions, raising the severity of hurricanes and floods in the U.S. and increasing the need for power grid restoration and related services.
Quanta also benefited from a robust U.S. power market on the back of companies taping into new technologies aimed at clean energy transition and a data center boom creating the need for grid capacity upgrades and enhancements.
The company posted quarterly adjusted profit of $2.94 per share, above analysts' estimates of $2.62 according to data compiled by LSEG.
Quarterly revenue rose 13.3% to $6.55 billion in the quarter ended December 31, missing analysts' average estimates of $6.61 billion.
However, Quanta noted that weather, regulatory and supply chain challenges have affected the company's project timing and execution, and may impact its financial results in the future.
Quanta expects 2025 full year revenue to be between $26.60 billion and $27.10 billion, compared with analysts' estimates of $26.77 billion.
It also sees adjusted profit for the year to be between $9.90 and $10.50 per share. Analysts estimate $10.22 per share as per LSEG compiled data.