Quanta Services, Inc.
PWR · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $4.56 EPS for Sep 2026 across 10 estimates, ranging $3.79 to $4.80.
PWR Jun 2026
- 29.70%
- +1.43%
- $3.03
- $3.93
- —
- $9.56B
Reported results
- $9.56B
- 16.17%
- $694.83M
- 7.27%
- $451.38M
- $2.96
Highlights
- Earnings beat: Provided reported EPS was $3.93 versus $3.03 consensus, a 29.7% surprise; the release separately reported GAAP diluted EPS of $2.96 and adjusted diluted EPS of $4.24.
- Revenue growth: Second-quarter revenue was $9.56 billion, up 41.1% year over year from $6.77 billion and up 21.4% sequentially from $7.87 billion.
- Profit expansion: Operating income rose 87.6% year over year to $694.8 million, with consolidated operating margin expanding to 7.3% from 5.5%; net income attributable to common stock increased 96.9% to $451.4 million.
- Electric momentum: Electric revenue increased 43.6% year over year to $7.84 billion, while segment operating income rose 62.5% to $898.2 million and margin expanded to 11.5% from 10.1%.
- Underground improvement: Underground and Infrastructure revenue grew 30.7% to $1.72 billion, while operating income rose 71.7% to $155.8 million and margin increased to 9.1% from 6.9%.
- Backlog visibility: Remaining performance obligations reached $33.55 billion, up 41.2% from December 2025, while total backlog rose 21.5% to a record $53.44 billion; approximately 70% of RPO is expected to convert within 12 months.
- Cash generation: Second-quarter operating cash flow was $1.10 billion and free cash flow was $886.0 million; six-month operating cash flow increased 176% year over year to $1.49 billion and free cash flow reached $1.07 billion.
- Raised outlook: Full-year 2026 guidance now calls for GAAP diluted EPS of $11.41-$11.92, adjusted diluted EPS of $16.45-$16.95, adjusted EBITDA of $4.09-$4.21 billion and free cash flow of $2.0-$2.5 billion.
- Acquisition platform: Quanta completed or announced four acquisitions around the quarter, investing approximately $1.24 billion of upfront consideration; the acquired businesses are expected to contribute $1.2-$1.4 billion of 2026 revenue and $120-$140 million of adjusted EBITDA.
Analysis
Quanta’s second quarter was a material acceleration in both growth and profitability, with results well ahead of the provided EPS expectation and stronger than both the year-ago and prior-quarter comparisons. Revenue rose 41.1% year over year to $9.56 billion, operating income increased 87.6% to $694.8 million, and net income attributable to common stock nearly doubled to $451.4 million. GAAP diluted EPS was $2.96 versus $1.52 a year ago and $1.45 in the first quarter; adjusted diluted EPS was $4.24 versus $2.48 a year ago. The supplied consensus was $3.03 for EPS, against a reported EPS figure of $3.93 and a 29.7% surprise.
The print was defined first by broad-based execution, led by Electric, where revenue increased 43.6% and operating margin expanded 140 basis points to 11.5%. Underground and Infrastructure also improved, with margin up 220 basis points to 9.1%. Second, demand visibility strengthened: RPO rose 41.2% from year-end to $33.55 billion and backlog reached $53.44 billion. Third, cash conversion was unusually strong, with $1.10 billion of quarterly operating cash flow and $886 million of free cash flow. Management responded by significantly raising full-year expectations, while adding acquisitions that broaden Quanta’s electrical, mechanical, fabrication and front-end capabilities.
Quarterly earnings acceleration
Quanta’s second-quarter performance built on the unusually strong first quarter and widened the year-over-year margin advantage. Revenue increased to $9.56 billion from $6.77 billion in the prior-year quarter and $7.87 billion in the first quarter. Operating income rose to $694.8 million from $370.3 million a year ago and $338.8 million sequentially, lifting operating margin to 7.3% from 5.5% and 4.3%, respectively. Net income attributable to common stock was $451.4 million, versus $229.3 million a year ago and $220.6 million in the prior quarter.
- Adjusted earnings: Adjusted diluted EPS was $4.24, up from $2.48 a year ago and $2.14 in the first quarter; GAAP diluted EPS was $2.96, versus $1.52 and $1.45, respectively.
- Operating leverage: Gross margin expanded to 16.2% from 14.9% a year ago as revenue growth outpaced cost of services, while corporate and non-allocated costs rose to $359.2 million from $273.0 million, largely due to higher amortization and compensation.
- Acquisition contribution: Acquired businesses contributed approximately $930 million of second-quarter revenue on a pro forma basis, but businesses acquired in 2026 contributed only $87.1 million of reported revenue because most were acquired late in the period.
Electric infrastructure demand
Electric remained the central growth and margin engine. Revenue increased $2.38 billion, or 43.6%, to $7.84 billion, representing 82.0% of consolidated revenue versus 80.6% a year ago. Management attributed the increase to utility grid modernization, transmission, substations, distribution, power generation, data centers, domestic manufacturing and electrification. Acquired businesses contributed approximately $575 million of quarterly Electric revenue.
- Profitability: Electric operating income increased 62.5% to $898.2 million, while segment margin rose to 11.5% from 10.1%, reflecting demand and improved execution across electric and power-generation services.
- Six-month scale: First-half Electric revenue reached $14.31 billion, up 37.5% year over year, while operating income rose 51.9% to $1.46 billion and margin expanded to 10.2% from 9.2%.
- Strategic expansion: Quanta formed a 49%-owned joint venture with Hyosung HICO to manufacture high-voltage and extra-high-voltage circuit breakers in Pennsylvania, targeting equipment shortages tied to data centers, electrification and grid modernization.
Underground margin recovery
Underground and Infrastructure delivered a smaller but important improvement, with revenue rising 30.7% to $1.72 billion and operating income increasing 71.7% to $155.8 million. The segment margin expanded to 9.1% from 6.9%, primarily because higher revenue from acquired civil and mechanical businesses improved fixed-cost absorption. The segment also benefited from demand in industrial, gas utility, pipeline integrity, data center, manufacturing and other large-load facilities.
- Acquisition mix: Approximately $355 million of quarterly segment revenue came from acquired businesses, including capabilities in civil construction, mechanical infrastructure and site preparation.
- Underlying variability: For the first half, segment revenue increased 20.0% to $3.13 billion despite lower revenue from large U.S. pipeline projects; operating income rose 56.0% to $261.4 million and margin increased to 8.4% from 6.4%.
- Portfolio broadening: The segment is being positioned beyond pipeline work through heavy civil, industrial, mechanical, plumbing and process-infrastructure solutions for technology, semiconductor and advanced-manufacturing customers.
Backlog and demand visibility
Quanta exited the quarter with a substantially larger future-work base. Remaining performance obligations increased to $33.55 billion from $23.76 billion at December 31, 2025, while total backlog rose to $53.44 billion from $43.98 billion. The increase reflected both acquisitions and additional awards and volume with existing customers, particularly in Electric.
- Near-term conversion: $23.51 billion of RPO, or approximately 70%, is expected to be recognized within the next 12 months; total 12-month backlog was $32.31 billion.
- Electric concentration: Electric accounted for $43.79 billion of total backlog, including $29.11 billion of RPO, compared with $36.17 billion and $21.64 billion, respectively, at year-end.
- Estimate caveat: Approximately 41% of total backlog consists of MSA and other estimated orders, and many MSAs do not commit customers to specific volumes and can generally be terminated on short notice.
Cash, acquisitions and outlook
Cash generation improved sharply and supported an acquisition-heavy capital-allocation strategy. Six-month operating cash flow was $1.49 billion versus $538.9 million a year ago, while free cash flow was $1.07 billion versus $288.2 million. Quanta used $930.3 million of cash for acquisitions and $451.0 million for capital expenditures during the first half.
- Liquidity: At June 30, Quanta had $506.4 million of cash and $2.26 billion of available commitments under its senior credit facility, for total liquidity of approximately $2.77 billion; total debt obligations were $6.10 billion.
- New acquisitions: Phalcon, Percheron and PSD were acquired during the second quarter, while Enerfab was acquired in July. Together, the four businesses are expected to add $1.2-$1.4 billion of 2026 revenue and $120-$140 million of adjusted EBITDA.
- Raised 2026 targets: Management now expects GAAP diluted EPS of $11.41-$11.92, adjusted diluted EPS of $16.45-$16.95, adjusted EBITDA of $4.09-$4.21 billion and free cash flow of $2.0-$2.5 billion.
- Capital returns and funding: Quanta authorized a new $1 billion repurchase program but made no open-market repurchases in the first half; it paid $33.7 million of dividends and expanded its revolving credit and commercial-paper capacity to $2.98 billion in July.
