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, /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) announced today that its Board of Directors has declared a quarterly cash dividend to stockholders of $0.11 per share, or a rate of $0.44 per share on an annualized basis. The dividend is payable on October 9, 2026, to stockholders of record as of October 1, 2026.

About Quanta Services
Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.

Cautionary Statement About Forward-Looking Statements and Information
This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, but are not limited to, statements relating to expectations regarding the declaration, amount or timing of any future dividends; expectations regarding Quanta's business or financial outlook; Quanta's ability to deliver increased value or return capital to stockholders; and future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future cash dividends or repurchases of our equity securities; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance, involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties, including, among others, market, industry, economic, financial or political conditions outside of the control of Quanta, quarterly variations in operating results, liquidity, financial condition, cash flows, capital requirements, reinvestment opportunities or other financial results; requirements relating to dividends under Delaware law and the credit agreement for Quanta's senior credit facility; fluctuations in the price and trading volume of Quanta's common stock; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2025, Quanta's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 and any other documents that Quanta files with the Securities and Exchange Commission (SEC). For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through the company's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.

Investors:
Kip Rupp, CFA, IRC
Sean Eastman
Quanta Services, Inc.
(713) 341-7260

SOURCE Quanta Services, Inc.

Key Takeaways Quanta's backlog reached $53.4B, supported by utility generation, transmission and technology load centers.PWR's four acquisitions are expected to add $1.2-$1.4B in 2026 revenues and $120-$140M in EBITDA.Quanta self-performs 80-85% of its work, strengthening its position in the AI-driven infrastructure buildout. Quanta Services, Inc. (PWR - Free Report) is emerging as a key beneficiary of the massive infrastructure buildout required to support Artificial Intelligence (AI). While AI's impact is often associated with chips and data centers, the rapid expansion of technology load centers is creating an equally important need for power generation, transmission and grid infrastructure — areas where Quanta has significant expertise.

The company's second-quarter 2026 performance highlighted this opportunity. Management reported strong double-digit growth in revenues, adjusted EBITDA and adjusted EPS, alongside a record backlog of roughly $53 billion. Importantly, management said larger programs across utility generation and technology load centers remain ahead, suggesting that current demand could represent only the early stages of a much broader investment cycle.

PWR is also expanding its capabilities to capture more of this opportunity. The acquisitions of Phalcon, Enerfab, Percheron and PSD strengthen its electrical, mechanical, civil and fabrication capabilities while enhancing its position in technology and load centers. Collectively, the acquisitions are expected to contribute $1.2-$1.4 billion of 2026 revenues and $120-$140 million of adjusted EBITDA. Its new joint venture with Hyosung HICO adds another strategic layer by expanding domestic production of high-voltage circuit breakers for utility, industrial and technology load-center markets. The initiative addresses critical supply-chain requirements amid rising electricity demand from data centers, electrification and grid modernization.

Quanta's ability to self-perform 80-85% of its work, combined with its large craft workforce and execution capabilities, further strengthens its positioning. With AI accelerating electricity demand, Quanta could be positioned to capture a growing share of America's next infrastructure investment wave.

Quanta, EMCOR & AECOM: Which Stock Has More AI Fuel?Quanta is well-positioned to benefit from rising infrastructure spending and the growing power requirements of AI, alongside other market players, EMCOR Group, Inc. (EME - Free Report) and AECOM (ACM - Free Report) . PWR stands out with a record $53.4 billion backlog, supported by strong demand across utility generation, transmission and technology load centers. Management expects larger programs in these markets to build in the coming years, providing a strong foundation for revenue growth.

EMCOR benefits from robust backlog across electrical and mechanical construction, with data centers and other technology-related projects supporting demand for mission-critical infrastructure. AECOM, meanwhile, brings engineering, consulting and program-management expertise to large-scale infrastructure projects, positioning it to benefit from investments needed to expand power capacity and support AI-driven data center development.

Overall, Quanta offers the most direct exposure to the physical power infrastructure behind AI, while EMCOR and AECOM provide complementary construction and engineering capabilities. The three companies therefore have differentiated avenues to convert AI-related infrastructure spending and backlog strength into sustained revenue growth.

PWR Stock’s Price Performance & Valuation TrendPWR stock has gained 7.7% in the past six months, outperforming the Zacks Engineering - R and D Services industry and the Zacks Construction sector, but underperforming the S&P 500 index.

Image Source: Zacks Investment Research

PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 34.14, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.37 per share and $18.96 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 52.3% and 15.8%, respectively.

Image Source: Zacks Investment Research

Quanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Quanta completed four acquisitions for $1.24B, adding capabilities and $1.2-$1.4B of 2026 revenues.PWR's record backlog reached $53.4B, supporting growth across utilities, generation & technology projects.Quanta targets $2-$2.5B of 2026 free cash flow while maintaining dividends and a new $1B buyback. Quanta Services, Inc. (PWR - Free Report) appears to be using capital not merely to boost near-term earnings, but to build a broader infrastructure platform capable of compounding growth over the long term. Its second-quarter 2026 performance and recent investments highlight a strategy centered on acquisitions, self-perform capabilities, shareholder returns and balance-sheet discipline.

Quanta completed the acquisitions of Phalcon, Enerfab, Percheron and PSD during the second quarter and July 2026 for approximately $1.24 billion in upfront consideration, with the businesses expected to contribute $1.2-$1.4 billion in 2026 revenues and $120-$140 million in adjusted EBITDA. Beyond incremental sales, the deals expand Quanta's electrical, mechanical, fabrication and front-end capabilities while strengthening its exposure to utilities, technology load centers and critical infrastructure.

The company is also returning capital to shareholders. PWR authorized a new $1 billion stock repurchase program and maintained its quarterly dividend at 11 cents per share. At the same time, Moody's upgraded its senior unsecured notes rating to Baa2 from Baa3, underscoring improving credit quality despite acquisition spending. Importantly, capital deployment is being supported by stronger cash generation. Quanta reported robust first-half 2026 cash flow and expects 2026 free cash flow of $2-$2.5 billion. Management also sees potential for free cash flow conversion to reach the high end of its targeted range as favorable contracting terms and growth in MEP, EPC and renewables businesses improve working capital.

With a record backlog of $53.4 billion and larger utility, generation and technology projects still ahead, Quanta's capital strategy could be creating a platform for more than earnings growth. It may be strengthening its competitive moat and long-term shareholder value.

Quanta vs. EMCOR & Sterling: Which Growth Engine Wins?Quanta is indeed leveraging disciplined capital allocation and strong backlog trends to support long-term revenue growth, which is also the game plan of its close peers like EMCOR Group, Inc. (EME - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .

PWR combines strategic acquisitions, shareholder returns and liquidity management, with a record backlog providing significant visibility into future growth. Its new $1 billion share repurchase authorization, quarterly dividend and Moody’s credit-rating upgrade further highlight its financial flexibility. EMCOR similarly benefits from robust cash generation, disciplined acquisitions and shareholder-friendly capital deployment, while its sizable backlog supports continued demand across electrical and mechanical construction. Sterling remains focused on high-return organic opportunities and strategic acquisitions, with backlog strength in E-Infrastructure and Transportation supporting growth.

Overall, Quanta stands out for the scale of its backlog and acquisition strategy, while EMCOR and Sterling offer complementary capital-allocation approaches. Together, the companies appear well-positioned to convert infrastructure demand, liquidity and backlog momentum into sustained revenue and shareholder-value growth.

PWR Stock’s Price Performance & Valuation TrendPWR stock has gained 20.7% in the past six months, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 index.

Image Source: Zacks Investment Research

PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.35, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.37 per share and $18.96 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 52.3% and 15.8%, respectively.

Image Source: Zacks Investment Research

Quanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways PWR is benefiting from AI-driven infrastructure demand, lifting backlog to a record $53.4 billion.PWR raised 2026 revenue guidance to $39.3-$39.7 billion and adjusted EPS guidance to $16.45-$16.95.INOD forecasts 2026 revenue growth of 40% or more as AI adoption expands across customer programs. Engineering – R&D (research and development) Services industry is poised to benefit from the rapid usage of artificial intelligence (AI) technologies to deliver smart buildings and mega projects while identifying and addressing diminishing margins. These technologies have been helping firms achieve operational efficiencies, thereby reducing costs while improving margins.

At this stage, we have narrowed our search to two Engineering R&D services stocks with a favorable Zacks rank for investment. These stocks have provided more than 20% returns year to date. Massive adoption of AI will ensure further upside in the future. 

These stocks are: Quanta Services Inc. (PWR - Free Report) and Innodata Inc. (INOD - Free Report) . Each of our picks currently carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our two picks year to date.

Image Source: Zacks Investment Research

Quanta Services Inc.Zacks Rank #1 Quanta Services is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. The ongoing expansion of AI data centers, grid modernization, renewable generation and advanced manufacturing is driving customers to undertake larger, multiyear infrastructure programs.

Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy. The company is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. 

PWR expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity.

Long-Term ProspectsPWR is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. Management believes that the company is still in the early stages of the current demand cycle, with larger utility-generation and technology/load center programs expected to build over the coming years.

These favorable trends helped drive total backlog to a record $53.4 billion as of June 30, 2026, up 49% year over year from $35.8 billion in June 2025. The increase was broad-based, with Electric Infrastructure Solutions backlog rising year over year to $43.8 billion from $30.3 billion, while Underground and Infrastructure Solutions backlog climbed to $9.7 billion from $5.6 billion.

Strong GuidanceQuanta raised full-year 2026 expectations. Management forecasts consolidated revenues of $39.3-$39.7 billion (compared with the prior expectations of $34.7-$35.2 billion) and adjusted EPS of $16.45-$16.95 (compared with the earlier projection of $13.55-$14.25). Adjusted EBITDA is projected in the range of $4.09-$4.21 billion, up from the earlier expectation of $3.49-$3.65 billion.

Solid Estimate RevisionsQuanta has an expected revenue and earnings growth rate of 38.4% and 49.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.5% over the last seven days. 

PWR has an expected revenue and earnings growth rate of 14.9% and 15.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.7% over the last 30 days. 

Image Source: Zacks Investment Research

Impressive Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 19.6% from the last closing price of $670.58. The brokerage target price is currently in the range of $690-$976. This indicates a maximum upside of 45.5% and no downside. 

Innodata Inc.Zacks Rank #2 Innodata continued to benefit from strong demand for data engineering services used to develop, train, evaluate and deploy advanced AI systems. INOD supports training and post-training data creation, model alignment, safety evaluation and enterprise AI deployment. 

INOD appears to be entering a stronger phase of AI-driven expansion, supported by accelerating customer adoption, improving profitability and a widening set of growth opportunities. The growth story is shifting toward higher-value services. 

Product InnovationsInnodata specializes in finding, cleaning, prepping, and labeling messy data so that generative, agentic, and physical AI models can mine and model it. Sometimes this even involves creating new synthetic data. Beyond supplying training data, INOD provides reasoning datasets, trust and safety services, model evaluation, agent optimization and physical AI support. 

INOD continues to focus on building a stronger delivery framework that supports rising project volume and new customer engagements across major technology clients. By scaling its global operations and enhancing technical delivery, it intends to manage increasing demand for complex data and AI integration projects. It will enable the company to maintain a competitive edge in the fast-evolving AI services market. 

Innodata released two public benchmarks designed to identify model failure modes and support follow-on data-generation work. The company is also developing physical-AI capabilities through robotics data collection and a planned motion-capture lab, with successful pilots moving discussions toward enterprise-scale multimodal programs.

Innodata also released the first stage of its AI Cyber Training Suite, including 12 datasets and evaluation systems focused on secure coding and vulnerability repair by AI agents. The company said that enterprise adoption of agentic AI is creating demand for assurance capabilities tied to the research platform INOD uses with frontier-model customers.

Strong GuidanceManagement reiterated its full-year 2026 revenue growth forecast of 40% or more year over year. The outlook reflects continued momentum across existing customer programs and a broadening customer base.

Solid Estimate RevisionsInnodata has an expected revenue and earnings growth rate of 42% and 28.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 9.3% over the last seven days. 

INOD has an expected revenue and earnings growth rate of 28.3% and 42.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.2% over the last seven days. 

Image Source: Zacks Investment Research

Robust Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 95.7% from the last closing price of $62.71. The brokerage target price is currently in the range of $111-$140. This indicates a maximum upside of 115% and no downside. 

Key Takeaways PWR fell 11.7% in three months despite 41.1% revenue growth and 71% adjusted EPS growth.Quanta raised 2026 revenue and adjusted earnings guidance after strong execution and acquisitions.PWR trades at a premium valuation as backlog hit a record $53.4 billion amid execution risks. Quanta Services, Inc. (PWR - Free Report) shares have declined 11.7% in the past three months, even as the company delivered faster earnings growth, record backlog and a higher 2026 outlook.

The pullback sharpens the investment debate. Quanta’s operating momentum supports the bull case, but its premium valuation and execution demands leave little room for disappointment.

PWR’s Fundamentals Defy the Recent DeclineSecond-quarter 2026 revenues increased 41.1% year over year to $9.56 billion. Adjusted earnings rose 71% to $4.24 per share, exceeding the Zacks Consensus Estimate by 28.9%, while revenues topped the consensus mark by 12.1%.

Profitability improved across both operating segments. Electric Infrastructure Solutions revenues rose 43.6%, while Underground Utility and Infrastructure Solutions revenues increased 30.7%. Those results show that the recent stock weakness has occurred despite broad operating gains.

Quanta’s Backlog Supports Multiyear VisibilityTotal backlog reached a record $53.4 billion at June 30, 2026, up from $48.5 billion at March 31. Remaining performance obligations increased to $33.6 billion, giving Quanta substantial visibility into future work.

Several large transmission and generation programs remain outside backlog while engineering, permitting and pre-construction activities continue. Their eventual inclusion could extend the opportunity, although the timing of awards may make quarterly bookings uneven.

PWR’s Raised Outlook Strengthens the Bull CaseQuanta raised its 2026 revenue guidance to $39.3-$39.7 billion from $34.7-$35.2 billion. Adjusted earnings guidance increased to $16.45-$16.95 per share from $13.55-$14.25.

The revision reflects first-half execution, better second-half visibility and expected contributions from recent acquisitions. Phalcon, Enerfab, Percheron and PSD are expected to add $1.2-$1.4 billion of 2026 revenues and $120-$140 million of adjusted EBITDA.

Quanta’s Premium Valuation Raises the StakesPWR trades at 44.1X forward 12-month earnings, above the Zacks sub-industry’s 27.6X, the sector’s 20.6X and the S&P 500’s 20.8X. That premium implies investors are already paying for sustained growth and reliable execution.

MasTec, Inc. (MTZ - Free Report) offers exposure to communications, power delivery, clean-energy and pipeline infrastructure, while EMCOR Group, Inc. (EME - Free Report) provides electrical and mechanical construction services. Both are relevant comparisons because Quanta’s valuation also exceeds their forward multiples cited in the peer analysis.

PWR’s Risks Could Prolong the WeaknessPermitting, environmental reviews, right-of-way work and regulated utility approvals can delay project starts and shift revenue timing. Quanta must also recruit and train enough craft-skilled workers to support larger programs expected to enter the field in coming years.

Fixed-price contracts can pressure margins when labor, materials or schedules move against estimates. Working-capital swings may also affect cash conversion, while the integration of four recently acquired businesses adds execution and organizational complexity.

PWR’s Growth Signals Favor Selective OptimismThe pullback makes PWR more debatable as an entry point, but not automatically inexpensive. Record backlog, raised guidance and faster earnings growth support selective optimism, while the valuation premium argues for discipline.

PWR currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A, Momentum Score of B and VGM Score of B. Those readings support its near-term earnings and growth profile. Still, the Value Score of F confirms that valuation remains the central restraint, even after the recent decline. You can see the complete list of today’s Zacks #1 Rank stocks here.

, /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) ("Quanta") announced today the pricing of its offering (the "Offering") of (i) $500,000,000 aggregate principal amount of 4.850% senior notes due 2029 (the "2029 Notes") at a price to the public 99.950% of their face value, (ii) $750,000,000 aggregate principal amount of 5.300% senior notes due 2033 (the "2033 Notes") at a price to the public 99.757% of their face value, and (iii) $750,000,000 aggregate principal amount of 5.550% senior notes due 2036 (the "2036 Notes", and together with the 2029 Notes and the 2033 Notes, the "Notes") at a price to the public 99.696% of their face value. The Offering is expected to close on August 6, 2026, subject to the satisfaction of customary closing conditions. Quanta intends to use the net proceeds from the Offering for general corporate purposes, including the repayment of outstanding borrowings under its commercial paper program and its senior credit facility.

BofA Securities, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Truist Securities, Inc., BMO Capital Markets Corp., Citizens JMP Securities, LLC and U.S. Bancorp Investments, Inc. acted as joint book-running managers for the Offering with respect to the 2029 Notes, BofA Securities, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Truist Securities, Inc., Citizens JMP Securities, LLC, CIBC World Markets Corp. and RBC Capital Markets, LLC acted as joint book-running managers for the Offering with respect to the 2033 Notes and BofA Securities, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Truist Securities, Inc., BMO Capital Markets Corp., BBVA Securities Inc. and BNP Paribas Securities Corp. acted as joint book-running managers for the Offering with respect to the 2036 Notes.

The Offering is being made pursuant to an effective shelf registration statement on Form S-3 previously filed with the U.S. Securities and Exchange Commission (the "SEC") on August 2, 2024, and only by means of a prospectus supplement and accompanying base prospectus. Copies of the prospectus supplement and accompanying base prospectus relating to the Offering may be obtained from BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina  28255-0001, Attention: Prospectus Department, Email: [email protected]; Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, Email: [email protected] or toll-free at 1-800-645-3751; J.P. Morgan Securities LLC, telephone collect at 1-212-834-4533; PNC Capital Markets LLC, toll-free at 1-855-881-0697 or email: [email protected]; and Truist Securities, Inc., Telephone 1-800 685-4786 or email [email protected]. You may also obtain these documents free of charge by visiting the Electronic Data Gathering and Analysis Retrieval System (EDGAR) on the SEC's website at www.sec.gov.  

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any offer, solicitation or sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Quanta Services

Quanta is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope.

Cautionary Statement About Forward-Looking Statements and Information

This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, but are not limited to, statements relating to the anticipated timing of the closing of the Offering and Quanta's intended use of proceeds therefrom, as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. Although Quanta's management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements can be affected by inaccurate assumptions and by a variety of known and unknown risks and uncertainties that are difficult to predict or beyond Quanta's control, including, among others, those described in the prospectus supplement and accompanying base prospectus relating to the Offering and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2025, Quanta's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 and any other documents that Quanta files with the SEC. For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through Quanta's website at www.quantaservices.com or through EDGAR at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.

Investors:

Media:

Kip Rupp, CFA, IRC

Mili Gosar

Sean Eastman

FGS Global

Quanta Services, Inc.

(832) 640-7570

(713) 629-7600

SOURCE Quanta Services, Inc.

Bank of America Corp DE lifted its holdings in Quanta Services, Inc. (NYSE:PWR – Free Report) by 5.4% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 3,444,711 shares of the construction company’s stock after buying an additional 175,184 shares during the quarter. Bank of America Corp DE owned about 2.30% of Quanta Services worth $1,891,215,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in PWR. Cetera Investment Advisers grew its stake in Quanta Services by 5.8% in the first quarter. Cetera Investment Advisers now owns 74,134 shares of the construction company’s stock worth $40,701,000 after purchasing an additional 4,087 shares during the period. Evoke Wealth LLC purchased a new position in Quanta Services in the fourth quarter worth about $368,000. Sequoia Financial Advisors LLC raised its holdings in Quanta Services by 3.1% in the 4th quarter. Sequoia Financial Advisors LLC now owns 130,436 shares of the construction company’s stock worth $55,052,000 after acquiring an additional 3,966 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Quanta Services by 9.9% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 50,602 shares of the construction company’s stock valued at $21,357,000 after purchasing an additional 4,568 shares in the last quarter. Finally, Lebenthal Global Advisors LLC lifted its stake in Quanta Services by 9.8% during the 4th quarter. Lebenthal Global Advisors LLC now owns 9,277 shares of the construction company’s stock valued at $3,915,000 after acquiring an additional 830 shares during the period. Institutional investors own 90.49% of the company’s stock.

Insider Transactions at Quanta Services In related news, CAO Paul Nobel sold 4,000 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $756.98, for a total transaction of $3,027,920.00. Following the completion of the transaction, the chief accounting officer directly owned 8,080 shares of the company’s stock, valued at approximately $6,116,398.40. This represents a 33.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Earl C. Jr. Austin sold 25,992 shares of Quanta Services stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $770.71, for a total value of $20,032,294.32. Following the completion of the sale, the chief executive officer directly owned 16,508 shares in the company, valued at approximately $12,722,880.68. The trade was a 61.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 159,992 shares of company stock worth $123,244,714 over the last quarter. 0.60% of the stock is owned by company insiders.

Quanta Services Price Performance Shares of NYSE:PWR opened at $659.11 on Friday. The firm has a market cap of $98.91 billion, a price-to-earnings ratio of 90.41, a P/E/G ratio of 2.21 and a beta of 1.21. The firm has a fifty day moving average price of $681.24 and a 200 day moving average price of $611.83. Quanta Services, Inc. has a fifty-two week low of $363.01 and a fifty-two week high of $788.75. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.09 and a current ratio of 1.14.

Quanta Services (NYSE:PWR – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The construction company reported $4.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.31 by $0.93. The company had revenue of $9.56 billion for the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a net margin of 3.67% and a return on equity of 18.64%. Quanta Services’s revenue for the quarter was up 41.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.48 EPS. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. As a group, sell-side analysts expect that Quanta Services, Inc. will post 12.8 earnings per share for the current fiscal year.

Quanta Services declared that its board has approved a stock buyback plan on Friday, May 22nd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the construction company to reacquire up to 0.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its shares are undervalued.

Quanta Services Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Monday, July 13th. Investors of record on Wednesday, July 1st were given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Wednesday, July 1st. Quanta Services’s payout ratio is currently 6.04%.

Quanta Services News Summary Here are the key news stories impacting Quanta Services this week:

Positive Sentiment: Q2 results significantly beat expectations. Quanta reported $9.56 billion in revenue, up 41.1% year over year, versus the $8.61 billion consensus estimate. Adjusted diluted EPS was $4.24, well above estimates near $3.30 and up from $2.48 a year earlier. Quanta Services Reports Second Quarter 2026 Results Positive Sentiment: Management raised full-year 2026 guidance across key metrics. The company now expects adjusted EPS of $16.45-$16.95 and revenue of $39.3-$39.7 billion, above consensus forecasts of approximately $13.78 EPS and $35.0 billion in revenue. Quanta Projects 2026 Revenue as Backlog Supports Raised Outlook Positive Sentiment: Record backlog improves revenue visibility. Total backlog reached $53.4 billion, including $33.6 billion of remaining performance obligations, supporting management’s more confident outlook and signaling sustained demand for power and infrastructure projects. Positive Sentiment: Cash generation was robust. Quanta produced $1.1 billion in operating cash flow and $0.9 billion in free cash flow during the quarter, while adjusted EBITDA reached $1.1 billion. These results provide additional financial flexibility to fund growth and capital returns. Quanta Services Posts Record Q2 Results and Boosts Outlook Neutral Sentiment: Valuation remains demanding. Following the rally, PWR trades at roughly 90 times earnings based on the provided data, leaving the stock sensitive to any slowdown in backlog conversion, project execution, or future guidance. Wall Street Analysts Forecast Growth Several research firms have recently weighed in on PWR. Mizuho set a $645.00 price target on Quanta Services in a report on Monday, July 20th. Oppenheimer upgraded shares of Quanta Services from a “market perform” rating to an “outperform” rating and set a $800.00 price target on the stock in a research report on Thursday, May 28th. Evercore boosted their price objective on shares of Quanta Services from $635.00 to $800.00 and gave the company an “outperform” rating in a research report on Friday, May 1st. Sanford C. Bernstein raised their target price on Quanta Services from $538.00 to $725.00 and gave the stock a “market perform” rating in a report on Tuesday, May 5th. Finally, Citigroup upped their price target on Quanta Services from $640.00 to $733.00 and gave the stock a “buy” rating in a research report on Monday, April 27th. Seventeen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Quanta Services has a consensus rating of “Moderate Buy” and an average price target of $745.55.

Check Out Our Latest Research Report on PWR

Quanta Services Company Profile (Free Report)

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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Second Quarter Consolidated Revenues of $9.6 Billion*

Second Quarter GAAP Diluted EPS of $2.96* and Adjusted Diluted EPS of $4.24*

Net Income Attributable to Common Stock of $451.4 Million*

Adjusted EBITDA of $1.1 Billion*

Cash Flow From Operations of $1.1 Billion* and Free Cash Flow of $0.9 Billion

Remaining Performance Obligations (RPO) of $33.6 Billion* and Total Backlog of $53.4 Billion

Significantly Increasing 2026 Financial Expectations Across All Metrics

* = Record quarterly or record second quarter result

, /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) today announced results for the three months ended June 30, 2026. Revenues in the second quarter of 2026 were $9.56 billion compared to revenues of $6.77 billion in the second quarter of 2025, and net income attributable to common stock was $451.4 million, or $2.96 per diluted share, in the second quarter of 2026 compared to net income attributable to common stock of $229.3 million, or $1.52 per diluted share, in the second quarter of 2025. Adjusted diluted earnings per share attributable to common stock was $4.24 for the second quarter of 2026 compared to $2.48 for the second quarter of 2025.

"Quanta delivered an exceptional first half of the year, highlighted by second-quarter results that meaningfully exceeded expectations and reflect the compounding strength and momentum of our operating model. Revenue, adjusted EBITDA and adjusted diluted earnings per share all achieved strong double-digit growth, cash flow was robust and total backlog reached a record level at quarter end. These results demonstrate the power of our differentiated, solutions-based operating model, as well as the execution certainty our self-perform capabilities and craft-skilled workforce deliver for customers every day. Given this outperformance, our improved visibility into the back half of the year, and the expected contribution from recently completed acquisitions that strengthen our platform, we are significantly increasing our full-year 2026 financial expectations across all metrics. We believe these results, and our long-term track record, are a clear differentiator of Quanta's ability to compound profitable growth as our customers accelerate investment in the electric grid, power generation and mission-critical infrastructure that underpin the economy," said Duke Austin, President and Chief Executive Officer of Quanta Services.

"We recently completed the acquisitions of Phalcon, Enerfab, Percheron and PSD and are pleased to welcome them to the Quanta family. These businesses deepen our self-perform, craft-skilled capabilities across electrical, mechanical, fabrication and front-end disciplines, bolster our geographic density in key markets, and further diversify our end-market exposure across the utility, technology and load center, industrial and energy sectors in the United States and Australia. Together, they solidify Quanta's position as the partner of choice for customers building and modernizing critical infrastructure — and strengthen our conviction in achieving the multi-year growth targets we outlined at our 2026 Investor Day."

Certain items that impacted Quanta's results for the three and six months ended June 30, 2026 and 2025 are reflected as adjustments in the calculation of Quanta's adjusted net income attributable to common stock, adjusted diluted earnings per share attributable to common stock and adjusted EBITDA (non-GAAP financial measures). These items are described in the accompanying tables reconciling adjusted net income attributable to common stock, EBITDA and adjusted EBITDA to net income attributable to common stock and adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock. Quanta completed three acquisitions in the first six months of 2026 and eight acquisitions during the full year 2025, and the results of the acquired businesses are included in Quanta's consolidated results from the respective acquisition dates. For further information on the items that impacted comparability of 2026 and 2025, see the footnotes in the accompanying tables presenting Supplemental Segment Data and reconciliations of EBITDA, adjusted EBITDA, adjusted net income attributable to common stock and adjusted diluted earnings per share attributable to common stock (non-GAAP financial measures) to their comparable GAAP financial measures.

ACQUIRED FOUR COMPANIES DURING THE SECOND QUARTER AND IN JULY OF 2026
During the second quarter and in July of 2026, Quanta completed the acquisitions of Phalcon, Ltd. (Phalcon) and Enerfab Holdings, Inc. (Enerfab), two high-quality companies that align with our strategic plan and enhance the platform Quanta has been purposefully building for several years through the acquisitions of Cupertino Electric, Dynamic Systems and Tri-City Group. Quanta is executing on a multi-year strategy to assemble deep, self-perform craft-skilled capabilities across electrical, mechanical and fabrication disciplines serving diverse end markets, rather than concentrating around any single end market or customer type.

Phalcon, headquartered in Farmington, Connecticut, and with an operating history established in 1983, is a regional leader providing electrical services primarily to customers in the utility, technology and load center and commercial end markets. Phalcon has approximately 4,100 employees and fabrication and modular facilities spanning more than 400,000 square feet, and expands Quanta's craft-skilled electrical capabilities across the Northeast and Mid-Atlantic, in the growing data center and mission-critical facility markets.

Enerfab, founded in 1901 and headquartered in Cincinnati, Ohio, provides fabrication, electrical, mechanical, construction and maintenance services to the industrial, utility, power generation, energy and other markets. With approximately 2,100 employees and fabrication facilities spanning approximately 250,000 square feet, Enerfab strengthens Quanta's infrastructure solutions offerings, including specialty fabrication capabilities supporting power generation, data center and advanced manufacturing customers.

In addition, Quanta completed the acquisitions of Percheron Holdings (Percheron) and PSD Global Holdings Pty Ltd (PSD). These companies strengthen Quanta's craft-skilled, front-end services and fabrication and manufacturing platforms and expand Quanta's ability to serve customers' critical infrastructure needs across the utility, power, technology and load center, industrial and energy end markets in the United States and Australia.

Percheron, headquartered in Katy, Texas, and with an operating history established in 1985, provides a full suite of front-end services, including land services (title and right-of-way), surveying and geospatial services, and engineering design work. Percheron's team of approximately 1,050 professionals operates across the United States primarily serving the utility, renewable, energy and industrial industries.

Based in Adelaide, South Australia with 170 employees and founded in 2005, PSD provides turnkey engineering, fabrication and manufacturing, including transportable substation buildings and switchgear, and construction services, to the utility, renewable, energy, mining and other infrastructure industries in Australia. PSD's capabilities and customer base are complementary to and enhance Quanta's existing Australian infrastructure solutions operations.

Phalcon, Percheron and PSD were acquired in the second quarter of 2026 and did not materially contribute to Quanta's financial performance during the period, and Enerfab was acquired in July 2026. For the full year of 2026, in the aggregate, Quanta expects these acquisitions to contribute approximately $1.2 billion - $1.4 billion of revenues and approximately $120 million to $140 million of adjusted EBITDA. The majority of the financial contribution from these companies is expected to be included in the Electric segment. The aggregate upfront consideration, net of cash acquired, for these transactions was approximately $1.24 billion, consisting of approximately $1.07 billion in cash, subject to customary adjustments, and approximately $173.3 million in Quanta common stock. Additionally, certain contingent consideration amounts of up to approximately $242.3 million are payable to the extent the acquired business achieves certain financial and other operating performance targets during post-acquisition measurement periods. Quanta funded the cash portion of the transactions with drawings under its existing debt financing arrangements and cash on hand.

RECENT HIGHLIGHTS

Formed a Joint Venture to Expand Domestic High-Voltage Circuit Breaker Manufacturing - In June 2026, Hyosung HICO and Quanta announced the formation of a joint venture, Hyosung HICO Breaker, LLC, to manufacture high-voltage circuit breakers in the United States. The joint venture will operate from a refurbished facility at Quanta's subsidiary's manufacturing site in Canonsburg, Pennsylvania, and will produce high-voltage and extra-high-voltage gas circuit breakers rated up to 800 kV for the utility, industrial, technology and load center markets. Quanta's participation in the joint venture expands its domestic manufacturing capabilities and enhances its ability to offer critical-path supply chain solutions to customers amid rising electricity demand driven by data centers, electrification and grid modernization. Named 2026 Top Solar Contractor by Solar Power World - In July 2026, Quanta announced that it has been named the top solar solutions provider in the United States by Solar Power World for the third time in four years. Quanta operating companies, utilizing their combined expertise and collaborative efforts, installed more than 6,100 megawatts of domestic solar generating capacity in 2025. Authorized a New $1 Billion Stock Repurchase Program and Declared Quarterly Cash Dividend - In May 2026, Quanta's Board of Directors authorized a new stock repurchase program under which the company may repurchase, from time to time, up to $1 billion of its outstanding common stock through open-market or privately negotiated transactions. Under the company's prior repurchase program, which expired June 30, 2026, Quanta had acquired 540,788 shares of its outstanding common stock in the open market for a total cost of approximately $135 million. Additionally, in May 2026, Quanta's Board of Directors declared a quarterly cash dividend of $0.11 per share, or $0.44 per share on an annualized basis. Received Credit Rating Upgrade from Moody's - In June 2026, Moody's Ratings upgraded Quanta's senior unsecured notes rating to Baa2 from Baa3, and its commercial paper rating to Prime-2 from Prime-3. Joseph Kim Elected to the Board of Directors - At Quanta's 2026 Annual Meeting of Stockholders in May, Joseph Kim was elected to the company's Board of Directors. Mr. Kim currently serves as President, Chief Executive Officer and director of Sunoco GP LLC, the general partner of Sunoco LP. He brings extensive executive-level leadership and operational experience, including supply chain and logistics expertise, as well as deep expertise in the energy industry and a strong track record in strategic planning, capital allocation and risk management. RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2026
Revenues in the six months ended June 30, 2026 were $17.43 billion compared to revenues of $13.01 billion in the six months ended June 30, 2025, and net income attributable to common stock was $672.0 million, or $4.41 per diluted share, in the six months ended June 30, 2026 compared to net income attributable to common stock of $373.5 million, or $2.47 per diluted share, in the six months ended June 30, 2025. Adjusted diluted earnings per share attributable to common stock was $6.92 for the six months ended June 30, 2026 compared to $4.25 for the six months ended June 30, 2025.

FULL-YEAR 2026 OUTLOOK
Prior to the Company's conference call, management will post a summary of Quanta's updated 2026 guidance expectations with additional commentary in the "News and Events" and "Financial Info" areas of the Investor Relations section of Quanta's website at http://investors.quantaservices.com.

The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, supply chain challenges and other factors affecting project timing and execution have impacted, and may impact in the future, Quanta's financial results. Additionally, we continue to consider future uncertainty associated with overall challenges to the domestic and global economy, including inflation, interest rates and potential recessionary economic conditions. Quanta's financial outlook for revenues, margins and earnings reflects management's effort to align these uncertainties with the backlog the Company is executing on and the opportunities expected to materialize during the remainder of 2026.

The following forward-looking statements are based on current expectations, and actual results may differ materially, as described below in Cautionary Statement About Forward-Looking Statements and Information. For the full year ending December 31, 2026, Quanta now expects revenues to range between $39.3 billion and $39.7 billion and net income attributable to common stock to range between $1.74 billion and $1.82 billion. Quanta also now expects diluted earnings per share attributable to common stock to range between $11.41 and $11.92 and adjusted diluted earnings per share attributable to common stock to range between $16.45 and $16.95. Quanta now expects EBITDA to range between $3.74 billion and $3.86 billion and adjusted EBITDA to range between $4.09 billion and $4.21 billion. Additionally, for the full year ending December 31, 2026, Quanta now expects net cash provided by operating activities to range between $2.90 billion and $3.40 billion and free cash flow (a non-GAAP financial measure) to range between $2.00 billion and $2.50 billion.

NON-GAAP FINANCIAL MEASURES
The financial measures not prepared in conformity with generally accepted accounting principles in the United States (GAAP) that are utilized in this press release are provided to enable investors, analysts and management to evaluate Quanta's performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing Quanta's operating results with those of its competitors. These measures should be used in addition to, and not in lieu of, financial measures prepared in conformity with GAAP.

Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Quanta's current and historical results and full-year 2026 expectations (as applicable): adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock; adjusted net income attributable to common stock, EBITDA and adjusted EBITDA to net income attributable to common stock; free cash flow to net cash provided by operating activities; and backlog to remaining performance obligations.

EARNINGS WEBCAST AND SUPPLEMENTAL MATERIALS INFORMATION
Quanta Services has scheduled a webcast and conference call for 9:00 a.m. Eastern Time today, July 30, 2026. This event will be facilitated through web-based audio using a Zoom Webinar. To register for and access the event, please log in to the webinar through the Investor Relations section of Quanta's website (http://investors.quantaservices.com). Once registered, if you prefer to access the call by phone, dial-in details will be provided on the event access page upon registration and when prompted, please enter the unique Participant ID provided to join the call. Please allow at least 15 minutes to register and download and install any necessary audio software. For those who cannot participate live, shortly following the webcast a digital recording will be available on the Company's website.

Additionally, Quanta has posted its Second Quarter 2026 Operational and Financial Commentary, as well as all other supplemental earnings call materials, in the Investor Relations section of the Quanta Services website. While management intends to make brief introductory remarks during the earnings call, the Operational and Financial Commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community. For more information, please contact Kip Rupp, Vice President - Investor Relations or Sean Eastman, Director - Investor Relations at Quanta Services, at 713-629-7600 or [email protected]. 

FOLLOW QUANTA IR ON SOCIAL MEDIA
Investors and others should note that while Quanta announces material financial information and makes other public disclosures of information regarding Quanta through U.S. Securities and Exchange Commission (SEC) filings, press releases and public conference calls, it also utilizes social media to communicate this information. It is possible that the information Quanta posts on social media could be deemed material. Accordingly, Quanta encourages investors, the media and others interested in our company to follow Quanta, and review the information it posts, on the social media channels listed in the Investor Relations section of the Quanta Services website.

ABOUT QUANTA SERVICES
Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.

Cautionary Statement About Forward-Looking Statements and Information

This press release (and oral statements regarding the subject matter of this press release, including those made on the conference call and webcast announced herein) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to projected revenues, net income, earnings per share, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, interest rates and tax rates, as well as other projections of operating results and GAAP and non-GAAP financial results, including EBITDA, adjusted EBITDA and backlog; expectations regarding Quanta's business or financial outlook; expectations regarding opportunities, technological developments, competitive positioning, future economic and regulatory conditions and other trends in particular markets or industries; expectations regarding Quanta's plans and strategies, including with respect to supply chain solutions and expanded or new services offerings; the business plans or financial condition of Quanta's customers; the potential benefits from, and future financial and operational performance of, acquired businesses and investments; the expected value of contracts or intended contracts with customers, as well as the expected timing, scope, services, term or results of any awarded or expected projects; possible recovery of pending or contemplated insurance claims, change orders and claims asserted against customers or third parties, as well as the collectability of receivables; the development of and opportunities with respect to future projects, including projects involving renewable energy and other power generation, electrical grid modernization, upgrade and hardening projects, data centers and other technology infrastructure, advanced manufacturing facilities and larger transmission and pipeline infrastructure; expectations regarding the future availability and price of materials and equipment necessary for the performance of Quanta's business; the expected impact of global and domestic economic or political conditions on Quanta's business, financial condition, results of operations, cash flows, liquidity and demand for Quanta's services, including inflation, interest rates, tariffs and recessionary economic conditions and commodity prices and production volumes; the expected impact of changes or potential changes in climate and the physical and transition risks associated with changes in climate; future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future acquisitions, investments, cash dividends, repurchases of Quanta's equity or debt securities or repayments of other outstanding debt; the expected impact of existing or potential legislation or regulation; potential opportunities that may be indicated by bidding activity or similar discussions with customers; the future demand for, availability of and costs related to labor resources in the industries Quanta serves; the expected recognition and realization of Quanta's remaining performance obligations and backlog; expectations regarding the outcome of pending or threatened legal proceedings; and expectations regarding Quanta's ability to maintain its current credit ratings; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance; rather they involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties including, among others, market, industry, economic, financial or political conditions that are outside of the control of Quanta, including economic, energy, infrastructure and environmental policies and plans that are adopted or proposed by the U.S. federal and state governments or other governments in territories or countries in which Quanta operates, inflation, interest rates, recessionary economic conditions, deterioration of global or specific trade relationships and geopolitical conflicts and political unrest; quarterly variations in operating and financial results, liquidity, financial condition, cash flows, capital requirements and reinvestment opportunities; trends and growth opportunities in relevant markets, including Quanta's ability to obtain future project awards; delays, deferrals, reductions in scope or cancellations of anticipated, pending or existing projects as a result of, among other things, supply chain or production disruptions and other logistical challenges, weather, regulatory or permitting issues, right of way acquisition, environmental processes, project performance issues, claimed force majeure events, protests or other political activity, legal challenges, inflationary pressure, reductions or eliminations in governmental funding or customer capital constraints; the effect of commodity prices and production volumes, which have been and may continue to be affected by inflationary pressure and geopolitical conditions, on Quanta's operations and growth opportunities and on customers' capital programs and demand for Quanta's services; the successful negotiation, execution, performance and completion of anticipated, pending and existing contracts; events arising from operational hazards, including, among others, wildfires and explosions, that can arise due to the nature of Quanta's services and certain of Quanta's product solutions, as well as the conditions in which Quanta operates and can be due to the failure of infrastructure on which Quanta has performed services and result in significant liabilities that may be exacerbated in certain geographies and locations; unexpected costs, liabilities, fines or penalties that may arise from legal proceedings, indemnity obligations, reimbursement obligations associated with letters of credit or bonds, multiemployer pension plans or other claims or actions asserted against Quanta, including amounts not covered by, or in excess of the coverage under, third-party insurance; potential unavailability or cancellation of third-party insurance coverage, as well as the exclusion of coverage for certain losses, potential increases in premiums and deductibles for coverage deemed beneficial to Quanta, increases in amounts or retention amounts or the unavailability of coverage deemed beneficial to Quanta at reasonable and competitive rates (e.g., coverage for wildfire events); damage to Quanta's brand or reputation, as well as potential costs, liabilities, fines and penalties, arising as a result of cybersecurity breaches, environmental and occupational health and safety matters, corporate scandal, failure to successfully perform or negative publicity regarding a high-profile or large-scale infrastructure project, involvement in a catastrophic event (e.g., fire, explosion) or other negative incidents; disruptions in, or failure to adequately protect, Quanta's information technology systems; Quanta's dependence on suppliers, subcontractors, equipment manufacturers and other third-parties, and the impact of, among other things, inflationary pressure, regulatory, supply chain and logistical challenges on these third parties; estimates and assumptions relating to financial results, remaining performance obligations and backlog; Quanta's inability to attract, the potential shortage of and increased costs with respect to skilled employees, as well as Quanta's inability to retain or attract key personnel and qualified employees; Quanta's dependence on fixed price contracts and the potential to incur losses with respect to these contracts; cancellation provisions within contracts and the risk that contracts expire and are not renewed or are replaced on less favorable terms; Quanta's inability or failure to comply with the terms of its contracts, which may result in additional costs, unexcused delays, warranty claims, failure to meet performance guarantees, damages or contract terminations; adverse weather conditions, natural disasters and other emergencies, including wildfires, pandemics, hurricanes, tropical storms, floods, debris flows, earthquakes and other geological- and weather-related hazards; the impact of changes in climate; Quanta's ability to generate internal growth; competition in Quanta's business, including the ability to effectively compete for new projects and market share, as well as technological advancements and market developments that could reduce demand for Quanta's services; the failure of existing or potential legislative actions and initiatives to result in increased demand for Quanta's services or budgetary or other constraints that may reduce or eliminate tax incentives or government funding for projects, which may result in project delays or cancellations; unavailability of, or increased prices for, materials, equipment and consumables (such as fuel) used in Quanta's or its customers' businesses, including as a result of inflationary pressure, supply chain or production disruptions, governmental regulations on sourcing, the imposition of tariffs, duties, taxes or other assessments, and other changes in U.S. trade relationships with foreign countries; loss of or deterioration of relationships with customers with whom Quanta has long-standing or significant relationships; the potential that participation in joint ventures or similar structures exposes Quanta to liability or harm to its reputation as a result of acts or omissions by partners; the inability or refusal of customers or third-party contractors to pay for services, which could result in the inability to collect our outstanding receivables, failure to recover amounts billed to, or avoidance of certain payments received from, customers in bankruptcy or failure to recover on change orders or contract claims; risks associated with operating in international markets and U.S. territories, including instability of governments, significant currency exchange fluctuations, and compliance with unfamiliar legal and labor systems and cultural practices, the U.S. Foreign Corrupt Practices Act and other applicable anti-bribery and anti-corruption laws, and complex U.S. and foreign tax regulations and international treaties; inability to successfully identify, complete, integrate and realize synergies from acquisitions, including the inability to retain key personnel from acquired businesses; the potential adverse impact of acquisitions and investments, including the potential increase in risks already existing in Quanta's operations, poor performance or decline in value of acquired businesses or investments and unexpected costs or liabilities that may arise from acquisitions or investments; the adverse impact of impairments of goodwill, other intangible assets, receivables, long-lived assets or investments; the impact of the unionized portion of Quanta's workforce on its operations; inability to access sufficient funding to finance desired growth and operations, including the ability to access capital markets on favorable terms, as well as fluctuations in the price and trading volume of Quanta's common stock, debt covenant compliance, interest rate fluctuations, a downgrade in our credit ratings and other factors affecting financing and investing activities; the ability to obtain bonds, letters of credit and other project security; new or changed tax laws, treaties or regulations or the inability to realize deferred tax assets; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2025, Quanta's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 (when filed) and any other documents that Quanta files with the SEC. For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through Quanta's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.

Quanta Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the Three and Six Months Ended

June 30, 2026 and 2025

(In thousands, except per share information)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Revenues

$ 9,556,997

$ 6,773,007

$            17,431,784

$            13,006,341

Cost of services

8,011,819

5,765,433

14,779,277

11,164,730

Gross profit

1,545,178

1,007,574

2,652,507

1,841,611

Equity in earnings of integral unconsolidated affiliates

11,590

14,444

26,059

27,373

Selling, general and administrative expenses

(698,490)

(528,355)

(1,319,216)

(1,022,321)

Amortization of intangible assets

(156,957)

(113,178)

(309,338)

(222,740)

Increase in fair value of contingent consideration liabilities

(6,487)

(10,203)

(16,399)

(14,560)

Operating income

694,834

370,282

1,033,613

609,363

Interest and other financing expenses

(73,548)

(59,579)

(146,815)

(113,891)

Interest income

3,307

3,782

6,215

7,623

Other (expense) income, net

(7,430)

4,138

(19,494)

4,377

Income before income taxes

617,163

318,623

873,519

507,472

Provision for income taxes

157,584

85,100

182,509

124,980

Net income

459,579

233,523

691,010

382,492

Less: Net income attributable to non-controlling interests

8,198

4,273

19,004

8,984

Net income attributable to common stock

$   451,381

$   229,250

$   672,006

$   373,508

Earnings per share attributable to common stock:

Basic

$      3.01

$      1.54

$      4.48

$      2.52

Diluted

$      2.96

$      1.52

$      4.41

$      2.47

Shares used in computing earnings per share:

Weighted average basic shares outstanding

150,208

148,448

149,995

148,361

Weighted average diluted shares outstanding

152,439

150,923

152,289

150,937

Quanta Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

June 30,

December 31,

2026

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$         506,431

$         439,508

Accounts receivable, net

8,532,311

6,847,091

Contract assets

1,534,265

1,522,186

Inventories

469,865

370,372

Prepaid expenses and other current assets

816,882

724,260

Total current assets

11,859,754

9,903,417

PROPERTY AND EQUIPMENT, net

3,697,411

3,455,204

OPERATING LEASE RIGHT-OF-USE ASSETS

467,652

400,814

OTHER ASSETS, net

1,182,033

944,050

OTHER INTANGIBLE ASSETS, net

3,216,084

2,906,188

GOODWILL

7,868,886

7,317,228

Total assets

$     28,291,820

$     24,926,901

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current maturities of long-term debt and short-term debt

$         683,022

$         763,898

Current portion of operating lease liabilities

125,376

114,377

Accounts payable and accrued expenses

5,748,126

4,579,458

Contract liabilities

4,241,933

3,258,465

Total current liabilities

10,798,457

8,716,198

LONG-TERM DEBT, net of current maturities

5,421,862

5,231,008

OPERATING LEASE LIABILITIES, net of current portion

372,875

309,671

DEFERRED INCOME TAXES

513,921

502,626

INSURANCE AND OTHER NON-CURRENT LIABILITIES

1,442,762

1,139,524

Total liabilities

18,549,877

15,899,027

TOTAL STOCKHOLDERS' EQUITY

9,637,942

8,938,249

NON-CONTROLLING INTERESTS

104,001

89,625

TOTAL EQUITY

9,741,943

9,027,874

Total liabilities and equity

$     28,291,820

$     24,926,901

Quanta Services, Inc. and Subsidiaries
Supplemental Segment Data
For the Three and Six Months Ended
June 30, 2026 and 2025
(In thousands, except percentages)
(Unaudited)

Segment Results

The following table sets forth segment revenues, segment operating income and operating margins for the periods indicated. Operating margins are calculated by dividing operating income by revenues.

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenues:

Electric

$ 7,837,805

82.0 %

$ 5,458,074

80.6 %

$            14,306,462

82.1 %

$            10,402,465

80.0 %

Underground and Infrastructure

1,719,192

18.0

1,314,933

19.4

3,125,322

17.9

2,603,876

20.0

Consolidated revenues

$ 9,556,997

100.0 %

$ 6,773,007

100.0 %

$            17,431,784

100.0 %

$            13,006,341

100.0 %

Operating income (loss):

Electric (a)

$  898,225

11.5 %

$  552,620

10.1 %

$ 1,459,307

10.2 %

$  960,784

9.2 %

Underground and Infrastructure

155,772

9.1 %

90,703

6.9 %

261,389

8.4 %

167,570

6.4 %

Corporate and Non-Allocated Costs (b)

(359,163)

(3.8) %

(273,041)

(4.0) %

(687,083)

(3.9) %

(518,991)

(4.0) %

Consolidated operating income

$  694,834

7.3 %

$  370,282

5.5 %

$ 1,033,613

5.9 %

$  609,363

4.7 %

(a) Included in operating income for the Electric segment was equity in earnings of integral unconsolidated affiliates of $11.6 million and $14.4 million for the three months ended June 30, 2026 and 2025, and $26.1 million and $27.4 million for the six months ended June 30, 2026 and 2025.

(b) Included in corporate and non-allocated costs was, among other things, amortization expense of $157.0 million and $113.2 million or the three months ended June 30, 2026 and 2025, and $309.3 million and $222.7 million for the six months ended June 30, 2026 and 2025, as well as non-cash stock-based compensation of $63.4 million and $44.1 million for the three months ended June 30, 2026 and 2025 and $126.0 million and $82.2 million for the six months ended June 30, 2026 and 2025.

Quanta Services, Inc. and Subsidiaries
Supplemental Data
(In thousands)
(Unaudited)

Remaining Performance Obligations and Backlog (a non-GAAP financial measure)

Quanta's remaining performance obligations represent management's estimate of consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work has not yet begun as of such dates and, to a lesser extent, from certain unit-priced contracts with more than an insignificant amount of partially completed units. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection.

Quanta has also historically disclosed its backlog, a measure commonly used in its industry but not recognized under GAAP. Quanta believes this measure enables management to more effectively forecast its future capital needs and results and better identify future operating trends that may not otherwise be apparent. Quanta believes this measure is also useful for investors in forecasting Quanta's future results and comparing Quanta to its competitors. Quanta's remaining performance obligations, as described above, are a component of its backlog calculation, which also includes estimated orders under master service agreements (MSAs), including estimated renewals, and certain non-fixed price contracts. Quanta's methodology for determining backlog may not be comparable to the methodologies used by other companies.

Estimates of the timing of revenue recognition of remaining performance obligations are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

The following table reconciles total remaining performance obligations to Quanta's backlog (a non-GAAP financial measure) by reportable segment along with estimates of amounts expected to be realized within 12 months. The following table shows dollars in thousands.

June 30, 2026

December 31, 2025

June 30, 2025

12 Month

Total

12 Month

Total

12 Month

Total

Electric

Remaining performance obligations

$ 20,409,603

$ 29,114,647

$ 14,188,737

$ 21,638,080

$ 11,231,906

$ 17,963,215

Estimated orders under MSAs and short-term, non-fixed price contracts

6,270,741

14,675,391

7,755,355

14,528,626

5,946,397

12,320,083

Backlog

$ 26,680,344

$ 43,790,038

$ 21,944,092

$ 36,166,706

$ 17,178,303

$ 30,283,298

Underground and Infrastructure

Remaining performance obligations

$  3,105,330

$  4,439,508

$  1,518,060

$  2,124,934

$    909,409

$  1,197,644

Estimated orders under MSAs and short-term, non-fixed price contracts

2,528,514

5,210,950

2,404,135

5,684,768

1,960,403

4,363,593

Backlog

$  5,633,844

$  9,650,458

$  3,922,195

$  7,809,702

$  2,869,812

$  5,561,237

Total

Remaining performance obligations

$ 23,514,933

$ 33,554,155

$ 15,706,797

$ 23,763,014

$ 12,141,315

$ 19,160,859

Estimated orders under MSAs and short-term, non-fixed price contracts

8,799,255

19,886,341

10,159,490

20,213,394

7,906,800

16,683,676

Backlog

$ 32,314,188

$ 53,440,496

$ 25,866,287

$ 43,976,408

$ 20,048,115

$ 35,844,535

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income and Adjusted Diluted Earnings
Per Share Attributable to Common Stock
For the Three and Six Months Ended
June 30, 2026 and 2025
(In thousands, except per share information)
(Unaudited)

The following table presents the reconciliations of the non-GAAP financial measures of adjusted net income attributable to common stock to net income attributable to common stock and adjusted diluted earnings per share attributable to common stock to diluted earnings per share attributable to common stock for the three and six months ended June 30, 2026 and 2025. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's performance. Management believes that the exclusion of certain items from net income attributable to common stock and diluted earnings per share attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and better identify operating trends that may not otherwise be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as our peers. However, these non-GAAP measures should not be considered as alternatives to net income attributable to common stock and diluted earnings per share attributable to common stock or other measures of performance that are derived in accordance with GAAP.

As to certain of the items in the table: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) amortization of intangible assets and amortization included in equity in earnings are impacted by Quanta's acquisition activities and investments in integral unconsolidated affiliates, and therefore can vary from period to period; (iii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (v) equity in losses and earnings of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; (vi) change in fair value of non-marketable equity securities, net varies from period to period based on various factors, including changes in the financial performance of the investee, the investee's operating environment and general market conditions and (vii) income tax contingency releases vary period to period and depend on the level of reserves for uncertain tax positions and the expiration dates under various federal and state statute of limitations periods.

Because adjusted net income attributable to common stock and adjusted diluted earnings per share attributable to common stock, as defined, exclude some, but not all, items that affect net income attributable to common stock and diluted earnings per share attributable to common stock, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income attributable to common stock and diluted earnings per share attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income and Adjusted Diluted Earnings Per Share Attributable to Common Stock
For the Three and Six Months Ended

June 30, 2026 and 2025
(In thousands, except per share information)
(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Reconciliation of adjusted net income attributable to common stock:

Net income attributable to common stock (GAAP as reported)

$ 451,381

$ 229,250

$ 672,006

$ 373,508

Acquisition and integration costs (a)

28,523

24,599

39,752

38,374

Increase in fair value of contingent consideration liabilities

6,487

10,203

16,399

14,560

Equity in losses of non-integral unconsolidated affiliates

6,406

499

8,677

417

Change in fair value of non-marketable equity security investments, net

—

—

10,380

—

Income tax impact of adjustments (b)

(9,702)

(8,458)

(17,636)

(11,971)

Impact of income tax contingency releases

(2,068)

—

(2,068)

—

Adjusted net income attributable to common stock before certain non-cash adjustments

481,027

256,093

727,510

414,888

Non-cash stock-based compensation

63,379

44,071

126,013

82,222

Amortization of intangible assets

156,957

113,178

309,338

222,740

Amortization included in equity in earnings of integral unconsolidated affiliates

2,604

1,604

5,312

2,323

Income tax impact of non-cash adjustments (b)

(57,990)

(41,332)

(114,624)

(79,948)

Adjusted net income attributable to common stock

$ 645,977

$ 373,614

$           1,053,549

$ 642,225

Reconciliation of adjusted diluted earnings per share:

Diluted earnings per share attributable to common stock (GAAP as reported)

$     2.96

$     1.52

$     4.41

$     2.47

Acquisition and integration costs (a)

0.19

0.16

0.26

0.25

Increase in fair value of contingent consideration liabilities

0.04

0.07

0.11

0.10

Equity in losses of non-integral unconsolidated affiliates

0.04

—

0.06

—

Change in fair value of non-marketable equity security investments, net

—

—

0.07

—

Income tax impact of adjustments (b)

(0.06)

(0.05)

(0.12)

(0.07)

Impact of income tax contingency releases

(0.01)

—

(0.01)

—

Adjusted diluted earnings per share before certain non-cash adjustments

3.16

1.70

4.78

2.75

Non-cash stock-based compensation

0.42

0.29

0.83

0.54

Amortization of intangible assets

1.03

0.75

2.03

1.48

Amortization included in equity in earnings of integral unconsolidated affiliates

0.02

0.01

0.03

0.02

Income tax impact of non-cash adjustments (b)

(0.39)

(0.27)

(0.75)

(0.54)

Adjusted diluted earnings per share

$     4.24

$     2.48

$     6.92

$     4.25

Weighted average shares outstanding for diluted and adjusted diluted earnings per share

152,439

150,923

152,289

150,937

See notes to follow.

(a) The amounts include $1.9 million and $4.2 million for the three months ended June 30, 2026 and 2025 and $4.1 million and $8.5 million for the six months ended June 30, 2026 and 2025 that, pursuant to acquisition purchase agreements, were or will be withheld from the sellers' proceeds, and have or will be paid to certain employees upon satisfaction of post-closing service obligations.

(b) The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods.

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
For the Three and Six Months Ended
June 30, 2026 and 2025
(In thousands)
(Unaudited)

The following table presents reconciliations of the non-GAAP financial measures of EBITDA and adjusted EBITDA to net income attributable to common stock for the three and six months ended June 30, 2026 and 2025. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers.

As to certain of the items below: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iii) equity in losses and earnings of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; and (v) change in fair value of non-marketable equity securities, net varies from period to period based on various factors, including changes in the financial performance of the investee, the investee's operating environment and general market conditions. Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included below.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net income attributable to common stock (GAAP as reported)

$ 451,381

$ 229,250

$ 672,006

$ 373,508

Interest and other financing expenses

73,548

59,579

146,815

113,891

Interest income

(3,307)

(3,782)

(6,215)

(7,623)

Provision for income taxes

157,584

85,100

182,509

124,980

Depreciation expense

117,138

98,725

230,432

196,839

Amortization of intangible assets

156,957

113,178

309,338

222,740

Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates

8,426

7,340

16,858

12,740

EBITDA

961,727

589,390

1,551,743

1,037,075

Non-cash stock-based compensation

63,379

44,071

126,013

82,222

Acquisition and integration costs (a)

28,523

24,599

39,752

38,374

Equity in losses of non-integral unconsolidated affiliates

6,406

499

8,677

417

Increase in fair value of contingent consideration liabilities

6,487

10,203

16,399

14,560

Change in fair value of non-marketable equity security investments, net

—

—

10,380

—

Adjusted EBITDA

$           1,066,522

$ 668,762

$           1,752,964

$           1,172,648

See note to follow.

(a) The amounts include $1.9 million and $4.2 million for the three months ended June 30, 2026 and 2025 and $4.1 million and $8.5 million for the six months ended June 30, 2026 and 2025 that, pursuant to acquisition purchase agreements, were or will be withheld from the sellers' proceeds, and have or will be paid to certain employees upon satisfaction of post-closing service obligations.

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Free Cash Flow
For the Three and Six Months Ended
June 30, 2026 and 2025
(In thousands)
(Unaudited)

Reconciliation of Free Cash Flow:

The following table presents a reconciliation of the non-GAAP financial measure of free cash flow to net cash provided by operating activities for the three and six months ended June 30, 2026 and 2025. This reconciliation is intended to provide useful information to investors and analysts as they evaluate Quanta's ability to generate the cash required to maintain and potentially expand its business. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from the sale of property and equipment and from insurance settlements related to property and equipment. Management believes that free cash flow provides useful information to Quanta's investors because free cash flow is viewed by management as an important indicator of how much cash is provided or used by routine business operations, including the impact of net capital expenditures. Management uses this measure for capital allocation purposes as it is viewed as a measure of cash available to fund debt payments, acquire businesses, repurchase common stock and debt securities, declare and pay dividends and transact other investing and financing activities. However, this measure should not be considered as an alternative to net cash provided by operating activities or other measures of performance that are derived in accordance with GAAP. The most comparable GAAP financial measure, net cash provided by operating activities, and information reconciling the GAAP and non-GAAP financial measures, are included below. The following table shows dollars in thousands.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$  1,095,444

$     295,711

$  1,487,188

$    538,909

Less: Net capital expenditures:

Capital expenditures

(230,955)

(140,349)

(451,048)

(273,111)

Cash proceeds from sale of property and equipment and related insurance settlements

21,479

15,074

34,248

22,390

Net capital expenditures

(209,476)

(125,275)

(416,800)

(250,721)

Free Cash Flow

$    885,968

$     170,436

$  1,070,388

$    288,188

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated Adjusted Net Income and
Adjusted Diluted Earnings Per Share
Attributable to Common Stock
For the Full Year 2026
(In thousands, except per share information)
(Unaudited)

The following table presents reconciliations of the non-GAAP financial measures of estimated adjusted net income attributable to common stock to estimated net income attributable to common stock and estimated adjusted diluted earnings per share attributable to common stock to estimated diluted earnings per share attributable to common stock for the full year ending December 31, 2026. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's expected future performance. Management believes that the exclusion of certain items from net income attributable to common stock and diluted earnings per share attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and better identify operating trends that may not otherwise be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers. However, these non-GAAP measures should not be considered as alternatives to net income attributable to common stock and diluted earnings per share attributable to common stock or other measures of performance that are derived in accordance with GAAP.

As to certain of the items below: (i) non-cash stock-based compensation expense may vary from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) amortization of intangible assets and amortization included in equity in earnings are impacted by Quanta's acquisition activities and investments in integral unconsolidated affiliates, and therefore can vary from period to period; (iii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (v) equity in losses and earnings of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; (vi) change in fair value of non-marketable equity securities, net varies from period to period based on various factors, including changes in the financial performance of the investee, the investee's operating environment and general market conditions and (vii) income tax contingency releases vary period to period and depend on the level of reserves for uncertain tax positions and the expiration dates under various federal and state statute of limitations periods.

Because adjusted net income attributable to common stock and adjusted diluted earnings per share attributable to common stock, as defined, exclude some, but not all, items that affect net income attributable to common stock and diluted earnings per share attributable to common stock, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income attributable to common stock and diluted earnings per share attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.

Quanta Services, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Estimated Adjusted Net Income and

Adjusted Diluted Earnings Per Share

Attributable to Common Stock

For the Full Year 2026

(In thousands, except per share information)

(Unaudited)

Estimated Range

Full Year Ending

December 31, 2026

Reconciliation of estimated adjusted net income attributable to common stock:

Net income attributable to common stock (as defined by GAAP)

$      1,740,700

$      1,817,100

Acquisition and integration costs (a)

44,600

44,600

Increase in fair value of contingent consideration liabilities

16,400

16,400

Equity in losses of non-integral unconsolidated affiliates

10,600

10,600

Change in fair value of non-marketable equity security investments, net

10,400

10,400

Non-cash stock-based compensation

267,200

267,200

Amortization of intangible assets

679,500

679,500

Amortization included in equity in earnings of integral unconsolidated affiliates

9,900

9,900

Income tax impact of adjustments (b)

(268,200)

(268,200)

Impact of income tax contingency releases

(2,100)

(2,100)

Adjusted net income attributable to common stock

$      2,509,000

$      2,585,400

Reconciliation of adjusted diluted earnings per share:

Diluted earnings per share attributable to common stock (as defined by GAAP)

$             11.41

$             11.92

Acquisition and integration costs (a)

0.29

0.29

Increase in fair value of contingent consideration liabilities

0.11

0.11

Equity in losses of non-integral unconsolidated affiliates

0.07

0.07

Change in fair value of non-marketable equity security investments, net

0.07

0.07

Non-cash stock-based compensation

1.75

1.75

Amortization of intangible assets

4.46

4.46

Amortization included in equity in earnings of integral unconsolidated affiliates

0.06

0.06

Income tax impact of adjustments (b)

(1.76)

(1.77)

Impact of income tax contingency releases

(0.01)

(0.01)

Adjusted diluted earnings per share

$            16.45

$            16.95

Weighted average shares outstanding for diluted and adjusted diluted earnings per share attributable to common stock

152,500

152,500

(a) Includes $8.0 million that, pursuant to acquisition purchase agreements, was or will be withheld from the sellers' proceeds and will be paid to certain employees upon satisfaction of post-closing service obligations.

(b) The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods.

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated EBITDA and Adjusted EBITDA
For the Full Year 2026
(In thousands)
(Unaudited)

The following table presents the reconciliations of the non-GAAP financial measures of estimated EBITDA and estimated adjusted EBITDA to estimated net income attributable to common stock for the full year ending December 31, 2026. These reconciliations are intended to provide useful information to investors and analysts as they evaluate Quanta's expected future performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables Quanta and its investors to more effectively evaluate Quanta's operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items period over period. In addition, management believes these measures may be useful for investors in comparing Quanta's operating results with other companies that may be viewed as its peers.

As to certain of the items below: (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of Quanta's acquisition activity; (iii) change in fair value of contingent consideration liabilities varies from period to period depending on, among other things, the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; (iv) equity in losses and earnings of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to Quanta; and (v) change in fair value of non-marketable equity securities, net varies from period to period based on various factors, including changes in the financial performance of the investee, the investee's operating environment and general market conditions.

Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included in the table to follow.

Estimated Range

Full Year Ending

December 31, 2026

Net income attributable to common stock (as defined by GAAP)

$      1,740,700

$      1,817,100

Interest and other financing expenses, net

268,000

274,000

Provision for income taxes

540,000

579,700

Depreciation expense

478,000

478,000

Amortization of intangible assets

679,500

679,500

Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates

33,100

33,100

EBITDA

3,739,300

3,861,400

Non-cash stock-based compensation

267,200

267,200

Acquisition and integration costs (a)

44,600

44,600

Increase in fair value of contingent consideration liabilities

16,400

16,400

Equity in losses of non-integral unconsolidated affiliates

10,600

10,600

Change in fair value of non-marketable equity security investments, net

10,400

10,400

Adjusted EBITDA

$      4,088,500

$      4,210,600

(a) Includes $8.0 million that, pursuant to acquisition purchase agreements, was or will be withheld from the sellers' proceeds and will be paid to certain employees upon satisfaction of post-closing service obligations.

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Estimated Free Cash Flow
For the Full Year 2026
(In thousands)
(Unaudited)

The following table presents a reconciliation of the non-GAAP financial measure of estimated free cash flow to estimated net cash provided by operating activities for the full year ending December 31, 2026. This reconciliation is intended to provide useful information to investors and analysts as they evaluate Quanta's expectations regarding its ability to generate the cash required to maintain and potentially expand its business. Free cash flow is defined as net cash provided by operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from the sale of property and equipment and from insurance settlements related to property and equipment. Management believes that free cash flow provides useful information to Quanta's investors because free cash flow is viewed by management as an important indicator of how much cash is provided or used by routine business operations, including the impact of net capital expenditures. Management uses this measure for capital allocation purposes as it is viewed as a measure of cash available to fund debt payments, acquire businesses, repurchase common stock and debt securities, declare and pay dividends and transact other investing and financing activities. However, this measure should not be considered as an alternative to net cash provided by operating activities or other measures of performance that are derived in accordance with GAAP. The most comparable GAAP financial measure, net cash provided by operating activities, and information reconciling the GAAP and non-GAAP financial measures, are included below.

Estimated Range

Full Year Ending

December 31, 2026

Net cash provided by operating activities

$  2,900,000

$  3,400,000

Less: Net capital expenditures

(900,000)

(900,000)

Free Cash Flow

$  2,000,000

$  2,500,000

Contacts:

Jayshree Desai, CFO

Media – Mili Gosar

Kip Rupp, CFA, IRC - Investors

FGS Global

Sean Eastman - Investors

(832) 640-7570

Quanta Services, Inc.

(713) 629-7600

SOURCE Quanta Services, Inc.

ABN Amro Investment Solutions trimmed its position in shares of Quanta Services, Inc. (NYSE:PWR – Free Report) by 6.2% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 47,353 shares of the construction company’s stock after selling 3,106 shares during the quarter. ABN Amro Investment Solutions’ holdings in Quanta Services were worth $25,998,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Brighton Jones LLC bought a new stake in shares of Quanta Services in the 4th quarter worth about $298,000. Woodline Partners LP raised its position in Quanta Services by 40.7% in the 1st quarter. Woodline Partners LP now owns 12,471 shares of the construction company’s stock worth $3,170,000 after purchasing an additional 3,606 shares during the period. Arrowstreet Capital Limited Partnership bought a new stake in Quanta Services in the second quarter worth about $4,632,000. Marshall Wace LLP purchased a new position in shares of Quanta Services during the second quarter valued at approximately $996,000. Finally, StoneX Group Inc. bought a new position in shares of Quanta Services during the second quarter valued at approximately $204,000. Hedge funds and other institutional investors own 90.49% of the company’s stock.

Quanta Services Price Performance PWR opened at $638.74 on Wednesday. The company has a market capitalization of $95.85 billion, a price-to-earnings ratio of 87.62, a PEG ratio of 2.49 and a beta of 1.21. The company has a current ratio of 1.14, a quick ratio of 1.09 and a debt-to-equity ratio of 0.57. Quanta Services, Inc. has a 12-month low of $363.01 and a 12-month high of $788.75. The business’s fifty day simple moving average is $698.00 and its 200-day simple moving average is $602.38.

Quanta Services (NYSE:PWR – Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The construction company reported $2.68 earnings per share for the quarter, beating the consensus estimate of $2.04 by $0.64. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The firm had revenue of $7.87 billion during the quarter, compared to the consensus estimate of $7 billion. During the same period in the previous year, the company posted $1.78 earnings per share. The firm’s quarterly revenue was up 26.3% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 13.550-14.250 EPS. On average, equities research analysts anticipate that Quanta Services, Inc. will post 12.8 earnings per share for the current fiscal year.

Quanta Services Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Monday, July 13th. Stockholders of record on Wednesday, July 1st were given a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend was Wednesday, July 1st. Quanta Services’s dividend payout ratio is presently 6.04%.

Quanta Services announced that its board has authorized a share buyback program on Friday, May 22nd that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the construction company to buy up to 0.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In A number of equities research analysts recently issued reports on PWR shares. UBS Group raised their price target on Quanta Services from $646.00 to $900.00 and gave the stock a “buy” rating in a research note on Monday, May 4th. B. Riley Financial reiterated a “neutral” rating on shares of Quanta Services in a research note on Friday, May 1st. Zacks Research lowered shares of Quanta Services from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Truist Financial upped their price target on shares of Quanta Services from $851.00 to $940.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Finally, CICC Research began coverage on shares of Quanta Services in a research note on Thursday, May 21st. They issued an “outperform” rating and a $872.00 price target on the stock. Seventeen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, Quanta Services currently has a consensus rating of “Moderate Buy” and an average price target of $745.55.

Check Out Our Latest Research Report on PWR

Insider Activity at Quanta Services In other Quanta Services news, CAO Paul Nobel sold 4,000 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $756.98, for a total transaction of $3,027,920.00. Following the completion of the sale, the chief accounting officer owned 8,080 shares in the company, valued at $6,116,398.40. This represents a 33.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Earl C. Jr. Austin sold 25,992 shares of the company’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $770.71, for a total value of $20,032,294.32. Following the sale, the chief executive officer owned 16,508 shares of the company’s stock, valued at $12,722,880.68. This trade represents a 61.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 159,992 shares of company stock valued at $123,244,714 in the last ninety days. Corporate insiders own 0.60% of the company’s stock.

Key Stories Impacting Quanta Services Here are the key news stories impacting Quanta Services this week:

Positive Sentiment: Quanta was named the 2026 Top U.S. Solar Solutions Provider by Solar Power World for the third time in four years, highlighting its leadership in solar project execution and its ability to win large renewable-energy contracts. Quanta Services Named 2026 Top U.S. Solar Solutions Provider by Solar Power World Positive Sentiment: Analysts and investors are pointing to Quanta’s execution certainty as a competitive advantage, especially as utilities and technology customers ramp up spending on large, complex infrastructure projects. Can Quanta’s Execution Certainty Strengthen Its Competitive Position? Positive Sentiment: JPMorgan reaffirmed a Neutral rating but set a $714 price target, which is above the current share price and suggests upside if execution remains strong. JPMorgan rating update via Benzinga Neutral Sentiment: Market commentary noted that PWR has outpaced the broader market in the latest session, reflecting continued investor interest but not a new fundamental catalyst. Quanta Services (PWR) Outpaces Stock Market Gains: What You Should Know Neutral Sentiment: One article argued the stock may look pricey on cash flow and earnings, which could limit near-term upside if valuation concerns gain traction. Quanta Services (PWR) Stock Looks Pricey On Cash Flow And Earnings Neutral Sentiment: NZS Capital said it strengthened its position in Quanta in a quarterly letter, but the note was broader portfolio commentary rather than a company-specific catalyst. NZS Capital Quanta Services position update Quanta Services Profile (Free Report)

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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For a while now, Nvidia (NVDA +3.90%) CEO Jensen Huang has been making a point that runs counter to the usual AI hype. The bottleneck in building out artificial intelligence, he argues, isn't just chips, it's the electricians, pipefitters, and grid crews needed to raise the data centers, fabs, and power lines those chips depend on. He's gone so far as to suggest skilled tradespeople could become a new class of high earners. That thesis has a very real corporate beneficiary, and its backlog just told the story.

Today's Change

(

3.90

%) $

7.90

Current Price

$

210.68

Why Quanta Services sits at the center of the build-out Quanta Services (PWR 1.52%) is a specialty contractor that strings transmission lines, builds substations, and wires interconnections that enable a hyperscaler to power a new campus. When Quanta reported earlier this year, its total backlog, essentially the work already signed and waiting to be done, reached a record of $48.5 billion. Management frames the longer-term opportunity as a $2.4 trillion addressable market through 2030, driven by aging grids, new power generation, and the enormous electricity loads that AI facilities represent.

Today's Change

(

-1.52

%) $

-10.14

Current Price

$

658.03

The moat most investors overlook: Quanta trains its own workforce Here's the angle I find more interesting than the backlog figure itself. If labor is the true constraint on the AI build-out, then the company that controls its own labor supply holds a quiet advantage. Quanta does exactly that. It owns Northwest Lineman College, which trains thousands of pre-apprentices, apprentices, and journey-level line workers every year, and it runs its own advanced training centers to develop crews across its service lines.

Image source: Getty Images.

That matters because you cannot conjure a journeyman lineworker overnight; the training takes years. While competitors bid against each other for the same scarce workers, Quanta is busy manufacturing them, then deploying them on its own projects. In a market where nearly every contractor tells investors the limit is people rather than demand, owning the pipeline of skilled hands is a genuine, durable edge.

None of this makes Quanta a sure thing. The same labor shortage that helps it can also cap how fast it grows, since even Quanta can only train and retain so many workers at once. Large infrastructure projects can slip or be delayed, backlog is a signal of future work rather than guaranteed profit, and heavy reliance on utility and data-center customers ties Quanta's fortunes to their spending plans. The stock has also climbed sharply, which leaves less room for error if results ever disappoint.

The takeaway for investors Quanta Services is one of the clearest ways to invest in the physical side of the AI story -- the concrete, copper, and cooling behind Huang's vision -- without betting on which chipmaker wins. The record backlog confirms that demand is real, and the company's control over its skilled workforce is the kind of advantage that's hard for rivals to quickly replicate. For investors who believe the trades are about to have their moment, this is a name worth studying, provided you're comfortable buying after a strong run.

Key Takeaways Quanta has surged 78.6% in a year, outpacing its industry, sector and the S&P 500.PWR trades at 44.11X forward earnings, well above the industry average of 29.8X.Quanta raised 2026 guidance after record Q1 revenue and backlog reached $48.5 billion. Quanta Services (PWR - Free Report) has been one of the biggest winners in the infrastructure sector over the past year, with its stock soaring 78.6%. The rally has comfortably outpaced the Zacks Engineering - R&D Services industry's 36.8% gain, the Zacks Construction sector's 18.9% advance and the S&P 500's 23.9% rise. Investors have rewarded the company for consistently delivering strong earnings, expanding its backlog and positioning itself at the center of several long-term infrastructure trends.

PWR Price Performance (1 Year)

Image Source: Zacks Investment Research

PWR's Technical Trend

Image Source: Zacks Investment Research

The stock's impressive performance, however, has come with a higher price tag. Quanta now trades at a forward 12-month price-to-earnings (P/E) multiple of 44.11X, significantly above the industry average of 29.8X. While Wall Street remains optimistic about the company's long-term prospects, investors now face an important question: Does    Quanta's business outlook justify paying such a premium, or has much of its future growth already been priced into the stock?

PWR Valuation (P/E F12M) vs Industry

Image Source: Zacks Investment Research

The answer depends on whether Quanta can continue converting its industry-leading project pipeline into sustained earnings growth while maintaining strong execution. Let's take a closer look at what continues to support the investment case and the factors that could limit further upside.

Quanta's Growth Drivers Remain StrongQuanta continues to benefit from one of the most attractive infrastructure spending environments in decades. Rising electricity demand, AI-driven data center construction, renewable energy integration, transmission expansion and electric grid modernization are creating significant opportunities across its end markets.

The company has evolved beyond being a traditional contractor into a provider of integrated infrastructure solutions. Its engineering expertise, skilled workforce, fabrication capabilities and supply-chain investments allow it to execute increasingly complex projects for utilities, hyperscalers and industrial customers. This integrated approach has strengthened customer relationships and enabled Quanta to participate earlier in customers' multiyear capital planning cycles.

Management also continues investing to support future demand. The company is expanding transformer manufacturing capacity and nearly doubling its off-site fabrication and logistics footprint, positioning itself to capitalize on accelerating investments in power infrastructure and AI-related projects. These investments should strengthen Quanta's competitive advantage as customers increasingly prioritize execution certainty and supply-chain reliability.

Strong Execution Supports Higher Earnings Outlook for PWRQuanta's first-quarter 2026 results reinforced confidence in its long-term growth strategy. Revenues increased 26.3% year over year to a record $7.87 billion, while adjusted earnings per share (EPS) climbed to $2.68 from $1.78 in the prior-year quarter. Both the Electric Infrastructure Solutions and Underground & Infrastructure Solutions segments delivered margin expansion, highlighting disciplined project execution and favorable work mix. The company also ended the quarter with a record total backlog of $48.5 billion, providing excellent revenue visibility over the coming years.

Following the strong start to the year, management raised its full-year 2026 outlook. Quanta now expects revenues between $34.7 billion and $35.2 billion and adjusted EPS between $13.55 and $14.25, reflecting improved visibility across its utility, power generation and large-load infrastructure businesses.

Management remains equally optimistic about the longer term. At its recent Investor Day, Quanta outlined a strategy to more than double adjusted earnings power by 2030, supported by an estimated $2.4 trillion addressable market spanning utilities, power generation and large-load infrastructure.

Analysts also remain constructive. Over the past 60 days, the Zacks Consensus Estimate for 2026 EPS has increased from $13.87 to $14.03, representing expected growth of 30.5% from 2025. Revenue estimates point to 22.1% growth in 2026, followed by continued double-digit growth in 2027.

PWR EPS Estimate

Image Source: Zacks Investment Research

PWR Stock’s Premium Valuation Demands Continued ExecutionQuanta's biggest challenge today is not demand but valuation. Despite trading below its 50-day moving average, the stock still commands a forward P/E multiple of 44.11X, substantially above the industry average of 29.8X. Such a premium reflects investor confidence that Quanta can sustain above-average earnings growth for several years.

Wall Street's optimism remains evident. The stock carries an Average Brokerage Recommendation (ABR) of 1.37, with 22 of the 27 analysts rating it a Strong Buy. Analysts' average price target of $808.00 also implies roughly 20% upside from current levels.

Image Source: Zacks Investment Research

Nevertheless, premium valuations leave little room for disappointment. Any slowdown in backlog growth, project execution or margin expansion could pressure the stock more than lower-valued peers.

Macro Risks Could Create Near-Term VolatilityAlthough Quanta's long-term outlook remains favorable, several external factors could influence future performance.

Large infrastructure projects are often subject to permitting delays, regulatory approvals, adverse weather, supply-chain disruptions and changing customer schedules. Inflation, tariffs, labor shortages and higher interest rates may also increase project costs or delay customer capital spending.

Management acknowledged that weather, permitting, regulatory issues, trade policy, supply-chain conditions and broader macroeconomic uncertainty remain important variables affecting project timing and financial performance, even as underlying demand remains robust.

How Quanta Stacks Up Against CompetitorsQuanta competes with EMCOR Group (EME - Free Report) , Sterling Infrastructure (STRL - Free Report) and Comfort Systems USA (FIX - Free Report) across several infrastructure and mission-critical construction markets.

From a share price perspective, Comfort Systems has delivered the strongest performance, with shares rising roughly 240% over the past year. Sterling Infrastructure follows closely with a gain of 215.9%, while Quanta has advanced 78.6%. Although Quanta has significantly outperformed EMCOR, whose shares have gained 45.5%, it has lagged the exceptional rallies posted by Comfort Systems and Sterling Infrastructure.

Valuation paints a different picture. EMCOR trades at the lowest forward P/E multiple of 25.27X, suggesting a more modest growth premium. Sterling Infrastructure trades at 31.76X, while Comfort Systems commands 37.37X. Quanta's forward P/E of 44.11X is the highest among the four companies, indicating that investors assign the greatest premium to Quanta's earnings visibility, diversified business model and long-term infrastructure opportunities.

Should Investors Buy PWR Stock Now?Quanta continues to execute at a high level. Record backlog, improving financial guidance, rising earnings estimates and strong demand across electric infrastructure, AI data centers and power generation provide a solid foundation for long-term growth. Management's investments in manufacturing capacity, supply-chain capabilities and integrated solutions further strengthen its competitive position for the coming decade.

However, the stock's premium valuation cannot be ignored. After nearly an 80% gain over the past year, investors are paying a substantial premium for Quanta's quality and growth prospects. While the business fundamentals continue to justify optimism, the current valuation reduces the margin of safety and makes flawless execution increasingly important.

Considering the company's attractive long-term outlook alongside its elevated valuation, the current Zacks Rank #3 (Hold) appears appropriate. Existing investors can remain confident in Quanta's multiyear growth story, while new investors may benefit from waiting for either a more attractive entry point or further earnings growth to better support the premium multiple. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PWR is expanding beyond construction to support utilities across engineering, manufacturing and supply chains.PWR plans to invest $500-$700 million to expand transformer capacity and manufacturing footprint.Quanta ended Q1 with a record $48.5 billion backlog, strengthening multiyear revenue visibility. Quanta Services, Inc. (PWR - Free Report) is increasingly aligning its business with one of the largest infrastructure opportunities in North America as utilities modernize aging power grids to meet rising electricity demand. The expansion of artificial intelligence, data centers, advanced manufacturing and electrification is placing greater pressure on transmission networks, making grid upgrades a long-term investment priority. This creates a favorable backdrop for companies with the expertise and scale to deliver complex infrastructure projects.

Grid modernization is becoming a key growth driver for Quanta because it has expanded well beyond traditional construction services. PWR now supports customers across engineering, procurement, construction, manufacturing and supply-chain solutions, allowing utilities to execute larger and more complex capital programs with greater certainty. The company is also working alongside customers much earlier in the planning process, strengthening its role in multiyear infrastructure investments.

Quanta is reinforcing this position through targeted manufacturing investments. The company plans to invest $500-$700 million over the next several years to double the power transformer manufacturing capacity while nearly doubling its off-site manufacturing, fabrication and logistics footprint to approximately 6.7 million square feet. These investments are designed to reduce equipment constraints, improve project execution and accelerate grid expansion as transmission demand grows.

The strategy is already translating into greater project visibility. Quanta ended the first quarter with a record backlog of $48.5 billion, up from $35.3 billion a year ago, including a 12-month backlog of $28.2 billion, up 45.4%, reinforcing strong multiyear revenue visibility. With utilities expected to invest heavily in transmission infrastructure for years to come, grid modernization has the potential to become one of Quanta's most durable long-term growth drivers.

How Does Quanta Compare With Infrastructure Peers?Quanta has established a leading position in North America's power infrastructure market, benefiting from growing investments in grid modernization, transmission expansion and electrification. As investors assess whether the company can sustain the long-term growth, comparisons with EMCOR Group, Inc. (EME - Free Report) and MasTec, Inc. (MTZ - Free Report) highlight its differentiated exposure to the evolving utility infrastructure landscape.

EMCOR is also benefiting from robust demand across electrical and mechanical construction, supported by data centers, manufacturing, health care and institutional projects. The company ended the first quarter with remaining performance obligations of $15.62 billion, reflecting strong project visibility. However, its growth remains more closely tied to building construction and facility-related services than utility transmission infrastructure.

MasTec is a closer peer, with exposure to power delivery, telecom, clean energy, pipeline and data center infrastructure. The company reported a record backlog of $20.3 billion and continues to benefit from investments in grid reliability, transmission expansion and AI-driven electricity demand. However, Quanta's integrated solutions platform, manufacturing investments and larger $48.5 billion backlog position it to capture a broader share of North America's multiyear grid modernization opportunity.

PWR’s Price Performance, Valuation & EstimatesPWR stock has surged 70.2% in the year-to-date (“YTD”) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.

PWR YTD Share Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 47.53X, well above the industry’s 32.03X, as shown below.

PWR Valuation
Image Source: Zacks Investment Research

Quanta’s earnings estimates for 2026 and 2027 have decreased in the past 30 days. However, the revised estimates for 2026 and 2027 imply year-over-year growth of 30.5% and 17.3%, respectively.

Image Source: Zacks Investment Research

PWR’s Zacks RankQuanta currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.