Quanta Services and American Electric Power (AEP) announced a long‑term strategic partnership on November 5, 2025 that includes a Cooperation and Commitment Agreement for the design, engineering, procurement and construction of 765 kV and other high‑voltage transmission facilities, and a Development Services Agreement to expand domestic manufacturing of extra‑high‑voltage transformers and circuit breakers.
Under the Cooperation and Commitment Agreement, Quanta will collaborate with AEP on high‑voltage transmission projects that support AEP’s $72 billion capital plan. Quanta is the most experienced 765 kV constructor in the United States, while AEP is the largest 765 kV operator. The Development Services Agreement is intended to strengthen the U.S. supply chain for critical grid components, providing AEP reliable access to transformers and breakers while giving Quanta a steady stream of manufacturing work.
Quanta’s Q3 2025 results—revenue of $7.63 billion and adjusted EPS of $3.33—beat analyst expectations, and its backlog stood at $39.2 billion. AEP’s Q3 2025 operating earnings were $1.80 per share, slightly below the consensus of $1.81, but revenue of $6.01 billion exceeded the forecast of $5.65 billion. These figures demonstrate that both companies are in strong financial positions to invest in and benefit from the partnership.
The partnership positions Quanta to capture a larger share of the high‑voltage transmission market, which is expected to grow as utilities upgrade grids for data centers, AI infrastructure and electrification. It also aligns with Quanta’s focus on supply‑chain resilience and domestic manufacturing, reducing lead times and cost volatility. For AEP, the collaboration supports its $72 billion capital plan, ensuring efficient execution of large‑scale projects and strengthening the domestic supply chain for critical components.
Quanta CEO Duke Austin said, “Together, AEP and Quanta bring unmatched expertise in power delivery and large‑scale infrastructure development, ensuring we can provide solutions to meet the growing demand for reliable, efficient and resilient power.” AEP CEO Bill Fehrman added, “These agreements represent a new level of collaboration between AEP and Quanta that positions the companies to deliver solutions to customers to meet their electric needs with greater speed, greater schedule certainty and at improved costs.”
The partnership is expected to enhance Quanta’s backlog and revenue prospects, opening new avenues for large‑scale transmission contracts and domestic equipment production. It also strengthens AEP’s ability to meet its long‑term operating earnings growth target of 7‑9% through 2030, supported by the capital plan and domestic manufacturing.
The collaboration underscores broader industry tailwinds of grid modernization, the energy transition and growing demand for power driven by data centers and AI. Both companies are positioned to capitalize on these trends, with the partnership providing a strategic advantage in a competitive market.
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