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, /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $524,000, or $0.14 per diluted common share ("diluted EPS"), for the second quarter of 2026, compared to net income of $558,000, or $0.15 diluted EPS, for the first quarter of 2026.

On July 14, 2026, the Company completed the acquisition of Lakeside Bancshares, Inc. and its subsidiary, Lakeside Bank (collectively referred to as "Lakeside"). The Company's reported net income for 2026 includes certain expenses related to Lakeside's merger with and into the Company and the Bank. These expenses are referred to as "merger-related expenses" and totaled $87,000 (pre-tax) for the second quarter of 2026, compared to $95,000 (pre-tax) for the first quarter of 2026.

"Although we've seen a decline in loans through the first half of the year, credit quality remains sound and we continue to gain new deposit customers," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "We're excited about Louisiana's economic future and are off to a running start in our new, Southwest Louisiana market."

Loans

Loans totaled $162.8 million at June 30, 2026, down $892,000, or 1%, from March 31, 2026. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

(Dollars in thousands)

6/30/2026

3/31/2026

Change

Real estate loans

One- to four-family residential

$

76,699

$

78,093

$

(1,394)

(2)

%

Commercial real estate

37,426

33,673

3,753

11

Construction and land

15,943

19,761

(3,818)

(19)

Multi-family residential

4,724

4,781

(57)

(1)

Total real estate loans

134,792

136,308

(1,516)

(1)

Other loans

Commercial and industrial

26,256

25,626

630

2

%

Consumer

1,737

1,743

(6)

-

Total other loans

27,993

27,369

624

2

Total loans

$

162,785

$

163,677

$

(892)

(1)

During the second quarter of 2026, a $5.0 million construction loan was converted to an amortizing commercial real estate loan. The loan is included in the health service facilities category presented in the following table.

The following table presents certain major segments of our commercial real estate, construction and land, and commercial and industrial loan balances as of the dates indicated.

(Dollars in thousands)

6/30/2026

3/31/2026

Change

Commercial real estate

Retail

$

8,878

$

9,273

$

(395)

(4)

%

Hospitality

5,440

5,519

(79)

(1)

Health service facilities

9,838

4,911

4,927

100

Restaurants

1,022

1,047

(25)

(2)

Oilfield services

345

355

(10)

(3)

Other non-owner occupied

2,002

2,322

(320)

(14)

Other owner occupied

9,901

10,246

(345)

(3)

Total commercial real estate

$

37,426

$

33,673

$

3,753

11

Construction and land

Multi-family residential

$

6,873

$

5,783

$

1,090

19

%

Health service facilities

4,797

9,698

(4,901)

(51)

Other commercial construction and land

3,088

2,436

652

27

Consumer residential construction and land

1,185

1,844

(659)

(36)

Total construction and land

$

15,943

$

19,761

$

(3,818)

(19)

Commercial and industrial

Oilfield services

$

17,824

$

17,959

$

(135)

(1)

%

Industrial equipment

910

986

(76)

(8)

Professional services

3,582

3,250

332

10

Other commercial and industrial

3,940

3,431

509

15

Total commercial and industrial loans

$

26,256

$

25,626

$

630

2

Multi-family residential construction loan growth was largely driven by new apartment homes in Lafayette Parish.

Credit Quality and Allowance for Credit Losses

At June 30, 2026, non-performing assets ("NPAs") totaled $2.3 million, down $385,000, or 14%, compared to NPAs of $2.7 million at March 31, 2026. The decline in NPAs was primarily due to the pay-off of a substandard commercial real estate loan that was individually evaluated for credit losses as of March 31, 2026. The ratio of NPAs to total assets was 0.80% and 0.94% at June 30 and March 31, 2026, respectively. Non-performing loans ("NPLs") were 1.43% and 1.64% of total loans at June 30 and March 31, 2026, respectively. At June 30, 2026, 96% of total NPLs were one- to four-family residential mortgage loans, compared to 82% at March 31, 2026.

At June 30, 2026, the allowance for credit losses on loans totaled $2.2 million, or 1.34% of total loans, compared to $2.3 million, or 1.40% of total loans, at March 31, 2026. The Company recorded a $104,000 reversal of provision for credit losses for the second quarter of 2026, compared to a $70,000 reversal for the first quarter of 2026. The reversal of expected credit losses in the second quarter of 2026 was largely driven by a decline in construction and land loan balances as a result of a $5.0 million construction loan converting to an amortizing commercial real estate loan and a decline in the amount of classified commercial real estate loans during the second quarter of 2026.  The reversal of expected credit losses in the first quarter of 2026 was primarily driven by declines in commercial and industrial and residential loan balances.

Net loan charge-offs totaled $1,000 during the second quarter of 2026, compared to net loan charge-offs of $37,000 during the first quarter of 2026. Net loan charge-offs during the first quarter of 2026 included a $28,000 charge-off of a commercial line of credit.

Investment Securities

Total investment securities were $67.1 million, or 23% of total assets, at June 30, 2026, up $3.9 million, or 6%, compared to March 31, 2026. During the second quarter of 2026, we purchased $6.0 million of subordinated debt issued by bank holding companies. The issuers are financially strong, publicly traded companies based in the southern United States. The weighted average yield of the securities purchased during the second quarter of 2026 was 6.3%. We did not purchase investment securities in the first quarter of 2026.

Deposits

Total deposits were $196.4 million at June 30, 2026, up $1.0 million, or 1%, from March 31, 2026. Total deposits averaged $198.8 million during the second quarter of 2026, compared to $198.2 million during the first quarter of 2026. The ratio of the Company's total loans to total deposits was 83% and 84% at June 30 and March 31, 2026, respectively.

The following table sets forth the composition of the Company's deposits as of the dates indicated.

(Dollars in thousands)

6/30/2026

3/31/2026

Change

Non-interest-bearing demand deposits

$

35,346

$

34,739

$

607

2

%

Interest-bearing demand deposits

32,667

33,249

(582)

(2)

Money market

9,248

9,296

(48)

(1)

Savings

64,386

60,525

3,861

6

Certificates of deposit

54,742

57,564

(2,822)

(5)

Total deposits

$

196,389

$

195,373

$

1,016

1

Growth in high-yield savings accounts has been a primary driver of deposit growth during both the first and second quarters of 2026.

Total public fund deposits were $27.4 million, or 14% of total deposits, at June 30, 2026, compared to $29.8 million, or 15% of total deposits, at March 31, 2026. During the second quarter of 2026, total public fund deposits averaged $30.1 million, compared to $35.6 million during the first quarter of 2026. The decline in public fund deposits was largely due to seasonal fluctuations.

Capital and Share Repurchases

At June 30 and March 31, 2026, consolidated shareholders' equity totaled $82.5 million and $82.2 million, or 28.5% of total assets, respectively. Following the merger of Lakeside with and into the Company and the Bank, consolidated shareholders' equity is estimated to be approximately $78.7 million, or 12.5% of total assets, based on data as of June 30, 2026.

The Company repurchased 24,206 shares of its common stock at an average cost per share of $16.20 during the second quarter of 2026, compared to 16,614 shares at an average cost per share of $15.71 during the first quarter of 2026. The Company paused share repurchases while conducting merger-related due diligence and negotiations.

During the fourth quarter of 2025, the Company announced our sixth share repurchase plan (the "November 2025 Repurchase Plan"). Under the November 2025 Repurchase Plan, the Company may purchase up to 205,000 shares, or approximately 5% of the Company's outstanding common stock. At June 30, 2026, 148,091 shares of the Company's common stock were available for repurchase under the November 2025 Repurchase Plan.

Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2026, the Company has repurchased a total of 1,255,909 shares of its common stock, or 24% of the common shares originally issued, at an average cost per share of $12.19. At June 30, 2026, the Company had common shares outstanding of 4,034,091.

Net Interest Income

The net interest margin for the second quarter of 2026 was 3.86%, up three basis points compared to the prior quarter. For the second quarter of 2026, the average yield on interest-earning assets was 5.34%, down two basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.31%, down four basis points from the first quarter of 2026. Net interest income for the second quarter of 2026 was $2.6 million, up $46,000, or 2%, compared to the first quarter of 2026.

Total interest income was up $14,000, or less than 1%, in the second quarter of 2026 compared to the prior quarter largely due to an increase in income on investment securities, cash and due from banks, and other interest earning assets, which was mostly offset by a decline in interest income on loans. During March 2026, a $5.9 million commercial and industrial loan relationship paid off after the sale of the borrower's business. In the same month, the Company purchased $817,000 of stock in the Federal Reserve Bank of Atlanta, which yields a statutory rate of 6.0%. During the second quarter of 2026, as previously mentioned, the Company purchased subordinated debt with an average yield of 6.3%.

Total interest expense decreased $32,000, or 3%, in the second quarter of 2026 compared to the prior quarter. The decline in interest expense was mainly due to a decline in the average volume of total interest-bearing liabilities. Total average interest-bearing deposits were down $2.4 million, or 1%, during the second quarter of 2026 compared to the prior quarter, largely due to fluctuations in public funds.

The following table sets forth, for the periods indicated, the Company's total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Taxable equivalent ("TE") yields have been calculated using a marginal tax rate of 21%. All average balances are based on daily balances.

Three Months Ended

6/30/2026

3/31/2026

(Dollars in thousands)

Average
Balance

Interest

Average
Yield/
Rate(TE)

Average
Balance

Interest

Average
Yield/
Rate(TE)

INTEREST-EARNING ASSETS

Loans receivable(1)

$

163,650

$

2,686

6.58

%

$

168,545

$

2,749

6.61

%

Investment securities(2)

69,732

567

3.28

67,529

522

3.13

Other interest earning assets

36,157

331

3.67

33,760

299

3.60

Total interest-earning assets

$

269,539

$

3,584

5.34

$

269,834

$

3,570

5.36

INTEREST-BEARING LIABILITIES

Demand deposits, money market, and savings accounts

$

106,757

$

512

1.92

%

$

107,158

$

494

1.87

%

Certificates of deposit

56,097

407

2.91

58,086

445

3.10

Total interest-bearing deposits

162,854

919

2.26

165,244

939

2.30

Borrowings

9,773

74

3.02

11,110

86

3.11

Total interest-bearing liabilities

$

172,627

$

993

2.31

$

176,354

$

1,025

2.35

Net interest-earning assets

$

96,912

$

93,480

Net interest income; average interest rate spread

$

2,591

3.03

%

$

2,545

3.01

%

Net interest margin(3)

3.86

3.83

(1)

Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process.

(2)

Average investment securities do not include unrealized holding gains/losses on available-for-sale securities.

(3)

Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.

Non-interest Expense

Non-interest expense for the second quarter of 2026 totaled $2.4 million, up $97,000, or 4%, compared to the first quarter of 2026. Non-interest expense included merger-related expenses of $87,000 for the second quarter of 2026, compared to $95,000 for the first quarter of 2026.

Professional fees for the second quarter of 2026 totaled $175,000 and included $64,000 of merger-related expenses. For the first quarter of 2026, professional fees totaled $185,000 and included $95,000 of merger-related expenses. Excluding merger-related expenses, professional fees increased during the second quarter of 2026 compared to the prior quarter primarily due to expenses associated with the Company's annual meeting and annual report.

Advertising and marketing expense for the second quarter of 2026 was $47,000, up $14,000, or 42%, compared to the prior quarter largely due to merger-related expenses.

Other non-interest expense totaled $289,000 for the second quarter of 2026, up $55,000, or 24%, from the prior quarter. The majority of the increase was due to training and education expenses and annual report distribution costs. Other non-interest expense for the second quarter of 2026 also included $8,000 of merger-related expenses.

Income Tax Expense

Income tax expense for the second quarter of 2026 totaled $152,000, up $26,000, or 21%, compared to the first quarter of 2026. The Company's effective tax rate was 22.5% for the second quarter of 2026, compared to 18.4% for the first quarter of 2026.  The increase in income tax expense and the effective tax rate for the second quarter of 2026 was mainly due to the tax impact of non-deductible merger-related expenses.

About Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana corporation and registered bank holding company for Catalyst Bank, its wholly-owned subsidiary, with $290.0 million in assets at June 30, 2026. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana since 1922. Catalyst Bank offers commercial and retail banking products with a focus on fueling business and improving lives in the communities we serve. To learn more about Catalyst Bancorp and Catalyst Bank, visit www.catalystbank.com, or the website of the Securities and Exchange Commission, www.sec.gov.

Forward-looking Statements

This news release reflects industry conditions, Company performance and financial results and contains "forward-looking statements,' which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company's actual results and experience to differ materially from the anticipated results and expectations expressed in such forward-looking statements.

Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Supervision and Regulation" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website and the Company's website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. 

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

CATALYST BANCORP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

(Unaudited)

(Unaudited)

(Dollars in thousands)

6/30/2026

3/31/2026

12/31/2025

6/30/2025

ASSETS

Non-interest-bearing cash

$

4,973

$

4,898

$

4,132

$

4,024

Interest-bearing cash and due from banks

32,009

33,635

21,073

36,032

Total cash and cash equivalents

36,982

38,533

25,205

40,056

Investment securities:

Securities available-for-sale, at fair value

46,218

48,216

50,467

29,294

Securities held-to-maturity

20,844

14,914

14,917

14,948

Loans receivable, net of unearned income

162,785

163,677

170,210

167,569

Allowance for credit losses

(2,185)

(2,295)

(2,367)

(2,431)

Loans receivable, net

160,600

161,382

167,843

165,138

Accrued interest receivable

876

849

907

883

Foreclosed assets

5

34

34

80

Premises and equipment, net

5,648

5,749

5,850

5,977

Stock in correspondent banks, at cost

1,976

1,963

1,139

825

Bank-owned life insurance

15,252

15,117

14,983

14,726

Other assets

1,612

1,751

1,582

1,858

TOTAL ASSETS

$

290,013

$

288,508

$

282,927

$

273,785

LIABILITIES

Deposits:

Non-interest-bearing

$

35,346

$

34,739

$

29,991

$

31,155

Interest-bearing

161,043

160,634

155,283

151,056

Total deposits

196,389

195,373

185,274

182,211

Borrowings

9,786

9,759

14,732

9,647

Other liabilities

1,308

1,167

1,196

1,128

TOTAL LIABILITIES

207,483

206,299

201,202

192,986

SHAREHOLDERS' EQUITY

Common stock

40

41

41

41

Additional paid-in capital

37,051

37,303

37,363

38,259

Unallocated common stock held by benefit plans

(5,008)

(5,129)

(5,182)

(5,596)

Retained earnings

52,994

52,470

51,912

50,967

Accumulated other comprehensive loss

(2,547)

(2,476)

(2,409)

(2,872)

TOTAL SHAREHOLDERS' EQUITY

82,530

82,209

81,725

80,799

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

290,013

$

288,508

$

282,927

$

273,785

CATALYST BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands)

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

INTEREST INCOME

Loans receivable, including fees

$

2,686

$

2,749

$

2,792

$

5,435

$

5,530

Investment securities

567

522

294

1,089

569

Cash and due from banks

309

290

353

599

694

Other earning assets

22

9

22

31

42

Total interest income

3,584

3,570

3,461

7,154

6,835

INTEREST EXPENSE

Deposits

919

939

925

1,858

1,866

Borrowings

74

86

68

160

136

Total interest expense

993

1,025

993

2,018

2,002

Net interest income

2,591

2,545

2,468

5,136

4,833

Reversal of credit losses

(104)

(70)

-

(174)

-

Net interest income after reversal of credit losses

2,695

2,615

2,468

5,310

4,833

NON-INTEREST INCOME

Service charges on deposit accounts

204

202

202

406

399

Bank-owned life insurance

135

134

119

269

237

Other

22

16

23

38

45

Total non-interest income

361

352

344

713

681

NON-INTEREST EXPENSE

Salaries and employee benefits

1,343

1,321

1,262

2,664

2,507

Occupancy and equipment

208

209

208

417

407

Data processing and communication

183

180

176

363

358

Professional fees

175

185

114

360

215

Directors' fees

124

121

117

245

231

Foreclosed assets, net

11

-

18

11

(109)

Advertising and marketing

47

33

20

80

59

Other

289

234

263

523

492

Total non-interest expense

2,380

2,283

2,178

4,663

4,160

Income before income tax expense

676

684

634

1,360

1,354

Income tax expense

152

126

113

278

247

NET INCOME

$

524

$

558

$

521

$

1,082

$

1,107

Earnings per share:

Basic

$

0.15

$

0.16

$

0.14

$

0.30

$

0.30

Diluted

0.14

0.15

0.14

0.30

0.30

CATALYST BANCORP, INC.

SELECTED FINANCIAL DATA

(Unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands)

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

EARNINGS DATA

Total interest income

$

3,584

$

3,570

$

3,461

$

7,154

$

6,835

Total interest expense

993

1,025

993

2,018

2,002

Net interest income

2,591

2,545

2,468

5,136

4,833

Reversal of credit losses

(104)

(70)

-

(174)

-

Total non-interest income

361

352

344

713

681

Total non-interest expense

2,380

2,283

2,178

4,663

4,160

Income tax expense

152

126

113

278

247

Net income

$

524

$

558

$

521

$

1,082

$

1,107

AVERAGE BALANCE SHEET DATA

Total loans

$

163,650

$

168,545

$

167,627

$

166,084

$

166,891

Total interest-earning assets

269,539

269,834

249,137

269,686

247,920

Total assets

292,262

292,752

270,788

292,506

269,517

Total interest-bearing deposits

162,854

165,244

149,106

164,042

149,540

Total interest-bearing liabilities

172,627

176,354

158,725

174,480

159,136

Total deposits

198,754

198,160

179,426

198,458

178,272

Total shareholders' equity

82,339

82,141

80,611

82,240

80,519

SELECTED RATIOS

Return on average assets

0.72

%

0.77

%

0.77

%

0.75

%

0.83

%

Return on average equity

2.55

2.76

2.59

2.65

2.77

Efficiency ratio

80.64

78.79

77.46

79.72

76.37

Net interest margin(TE)

3.86

3.83

3.98

3.84

3.93

Average equity to average assets

28.17

28.06

29.77

28.12

29.88

Common equity Tier 1 capital ratio(1)

43.37

44.29

43.72

Tier 1 leverage capital ratio(1)

26.55

26.22

27.56

Total risk-based capital ratio(1)

44.62

45.55

44.98

NON-FINANCIAL DATA

Total employees (full-time equivalent)

49

49

49

Common shares issued and outstanding, end of period

4,034,091

4,058,297

4,142,816

(1)  Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.

CATALYST BANCORP, INC.

SELECTED FINANCIAL DATA

(continued)

Three Months Ended

Six Months Ended

(Dollars in thousands)

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

ALLOWANCE FOR CREDIT LOSSES

Loans:

Beginning balance

$

2,295

$

2,367

$

2,500

$

2,367

$

2,522

Reversal of credit losses

(109)

(35)

(27)

(144)

(10)

Charge-offs

(18)

(49)

(63)

(67)

(116)

Recoveries

17

12

21

29

35

Net charge-offs

(1)

(37)

(42)

(38)

(81)

Ending balance

$

2,185

$

2,295

$

2,431

$

2,185

$

2,431

Unfunded commitments:

Beginning balance

$

176

$

211

$

104

$

211

$

121

Provision for (reversal of) credit losses on unfunded commitments

5

(35)

27

(30)

10

Ending balance

$

181

$

176

$

131

$

181

$

131

Total reversal of credit losses

$

(104)

$

(70)

$

-

$

(174)

$

-

CREDIT QUALITY(1)

Non-accruing loans

$

2,175

$

2,432

$

1,455

Accruing loans 90 days or more past due

147

246

215

Total non-performing loans

2,322

2,678

1,670

Foreclosed assets

5

34

80

Total non-performing assets

$

2,327

$

2,712

$

1,750

Total non-performing loans to total loans

1.43

%

1.64

%

1.00

%

Total non-performing assets to total assets

0.80

0.94

0.64

(1)  Credit quality data and ratios are as of the end of each period presented.

For more information:
Joe Zanco, President and CEO
(337) 948-3033

SOURCE Catalyst Bancorp, Inc.

Highlights reflecting key achievements supporting the Company’s strategy and digital goals:

Revenue from the digital accelerators introduced at the Company’s Investor Day(1) increased 31% year over year and represented 26% of second quarter revenues, demonstrating the strong momentum of these strategic initiatives.Signed CoreCard agreement with Unibanca, a leading bank processor in Peru.Entered a direct-to-publisher distribution agreement with Capcom, a Tier-1 game publisher in Japan.Signed six new Dandelion digital partners, including Mastercard Move.Repurchased $50 million of common stock, representing approximately 705,000 shares, during the quarter, reflecting our disciplined approach to capital allocation.Adjusted earnings per share increased 10% year-over-year to $2.82, highlighting the Company’s ability to deliver profitable growth while continuing to invest in long-term strategic initiatives.       (1) See the investor day presentation at http://ir.euronetworldwide.com.

LEAWOOD, Kan., July 30, 2026 (GLOBE NEWSWIRE) -- Euronet (“Euronet” or the “Company”) (Nasdaq: EEFT), a global leader in payments processing and cross-border transactions, announced today second quarter 2026 financial results.

Euronet reports the following consolidated results for the second quarter 2026 compared with the same period of 2025:

Revenues of $1,108.4 million, a 3% increase from $1,074.3 million (2% increase on a constant currency1 basis).Operating income of $137.1 million, a 14% decrease from $158.6 million (14% decrease on a constant currency basis).Adjusted EBITDA2 of $192.8 million, a 6% decrease from $206.2 million (7% decrease on a constant currency basis).Net income attributable to Euronet of $77.4 million, or $1.71 diluted earnings per share, compared with $97.6 million, or $2.27 diluted earnings per share.Adjusted earnings per share3 of $2.82 increased 10% from $2.56 in the prior year. See the reconciliation of non-GAAP items in the attached financial schedules.  

“Our second quarter results demonstrate the resilience of Euronet's diversified global payments platform and our ability to consistently deliver profitable growth while investing for the future," said Michael J. Brown, Euronet's Chairman and Chief Executive Officer. "We generated 10% growth in adjusted earnings per share, reflecting the steady contribution from our Payments Infrastructure and epay businesses, despite a challenging macro backdrop.

One of the most encouraging developments this quarter was the continued momentum of the digital accelerators we introduced at our Investor Day in May. Collectively, revenue from these initiatives increased 31% year-over-year and represented approximately 26% of our total revenue during the quarter, demonstrating that our investments in initiatives such as CoreCard, merchant acquiring, payment processing and digital money transfers are becoming meaningful growth drivers while further diversifying our business.

Payments Infrastructure delivered another solid quarter, driven by continued growth in merchant acquiring and payment processing despite seeing some softness in European travel. epay generated another quarter of profitable growth while continuing to expand higher-value digital content and payment products. Cross-Border Payments growth faced pressure from U.S. immigration policy and favorable prior-year dynamics that did not repeat. However, our digital money transfer business and Dandelion platform continued to perform well, reinforcing our confidence in the business’s long-term growth opportunity. Looking ahead, we remain confident in our ability to deliver our full-year adjusted earnings per share growth outlook of 10% to 15%.”

Segment and Other Results

As unveiled at its Investor Day, the Company has changed the name of its EFT Processing Segment to Payments Infrastructure and the name of its Money Transfer Segment to Cross-Border Payments. The Company thinks these name changes more accurately reflect the products and services provided by these segments.

The Payments Infrastructure Segment (formerly EFT Processing Segment) reports the following results for second quarter 2026 compared with the same period or date in 2025:

Revenues of $377.1 million, an 11% increase from $338.5 million (10% increase on a constant currency basis).Operating income of $86.1 million, a 2% increase from $84.6 million (2% increase on a constant currency basis).Adjusted EBITDA of $117.9 million, a 7% increase from $110.6 million (6% increase on a constant currency basis).Total of 57,814 installed ATMs as of June 30, 2026, a 1% increase from 57,326. Total of 57,071 active ATMs as of June 30, 2026, a 1% increase from 56,760 as of June 30, 2025. The Payments Infrastructure (PI) Segment delivered constant currency revenue growth of 10% in the second quarter of 2026. Revenue growth was driven by continued growth in acquiring, Ren infrastructure sales and contributions from the CoreCard acquisition completed in the fourth quarter of 2025, tempered somewhat by softer European travel spend. Constant currency Adjusted EBITDA increased 6%, reflecting the incremental earnings contribution from the revenue drivers, supported by a consistent to improving operating expense profile. constant currency operating income grew 2%, largely due to an increase of approximately $4.7 million in non-cash purchase price amortization related to the CoreCard acquisition; absent this increase, constant currency operating income for the segment would have grown by 7%.

Network expansion was modest, with installed ATMs increasing 1% to 57,814 and active ATMs up 1% to 57,071.

The epay Segment reports the following results for the second quarter 2026 compared with the same period or date in 2025:

Revenues of $294.0 million, a 5% increase from $280.1 million (4% increase on a constant currency basis).Operating income of $32.8 million, a 5% increase from $31.1 million (5% increase on a constant currency basis).Adjusted EBITDA of $34.4 million, a 5% increase from $32.8 million (5% increase on a constant currency basis).Transactions of 986 million, an 11% decrease from 1,107 million.POS terminals of approximately 739,000 as of June 30, 2026, a 2% increase from 721,000.Retailer locations of approximately 355,000 as of June 30, 2026, essentially unchanged from 354,000. The epay segment delivered another quarter of profitable growth, with constant currency revenue increasing 4%, operating income increasing 5% and adjusted EBITDA increasing 5%. The segment continued to deliver consistent underlying performance supported by higher-value digital content, prepaid and payment products, while continuing to expand its payment acceptance footprint with an increase in POS terminals and digital distribution. Transaction volumes declined primarily due to high volume low value transactions in India.

The Cross-Border Payments Segment (formerly known as Money Transfer Segment) reports the following results for the second quarter 2026 compared with the same period or date in 2025:

Revenues of $439.6 million, a 4% decrease from $457.9 million (5% decrease on a constant currency basis).Operating income of $43.3 million, a 34% decrease from $65.6 million (35% decrease on a constant currency basis).Adjusted EBITDA of $49.7 million, a 31% decrease from $71.6 million (32% decrease on a constant currency basis).Total transactions of 45.7 million, an 1% decrease from 46.1 million.Total digital transactions of 7.9 million, a 33% increase from 5.9 million.Network locations of approximately 651,000 as of June 30, 2026, a 3% increase from approximately 631,000. The Cross-Border Payments (CBP) segment reported a 5% decline in constant currency revenue, while operating income and Adjusted EBITDA declined 35% and 32%, respectively. Results were impacted by several factors, most notably a contraction in the overall U.S. outbound remittance market compared to the prior year. The market decline was driven by the changes in U.S. immigration policies that further pressured outbound remittance volumes. The second quarter results were also compared to a favorable second quarter 2025 where the Company benefitted from a non-recurring fee rebate in Pakistan and certain favorable foreign exchange related revenue opportunities that carried high margins and did not repeat this year. These headwinds were partially offset by continued strength in our digital business, with digital transactions increasing 33%, continued momentum in our Dandelion cross-border payments platform, and a 3% expansion of our global network.

Corporate and Other reports $25.1 million of expense for the second quarter 2026 compared with $22.7 million for the second quarter 2025. The increase in corporate expenses was primarily driven by a $1.9 million increase in long-term share-based compensation, which equally impacted consolidated operating income.

Balance Sheet and Financial Position
Total cash, including ATM cash, unrestricted cash and cash equivalents and restricted cash, was $2,220.7 million as of June 30, 2026, compared to $1,713.8 million at December 31, 2025. Total indebtedness was $2,654.0 million, up from $2,021.8 million at year-end. During the quarter, the Company repaid approximately $700 million in senior notes at maturity using borrowings under its revolving credit facilities. Availability under the Company's revolving credit facilities was approximately $1.0 billion. Net debt increased by $125.3 million during the quarter, primarily driven by higher ATM cash balances in preparation for the peak ATM season, $50 million of share repurchases, and partially offset by cash generated from operations, changes in working capital balances.

Outlook
The Company reiterates its 2026 adjusted EPS growth of 10% to 15% year-over-year, consistent with its 10- and 20-year compounded annualized growth rates. This outlook does not include any changes that may develop in foreign exchange rates, interest rates or other unforeseen factors.

Non-GAAP Measures
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency financial measures, adjusted EBITDA, and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues, operating income, net income and earnings per share computed in accordance with U.S. GAAP. We believe that these non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. These non-GAAP measures are also an integral part of the Company's internal reporting and performance assessment for executives and senior management. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedules provide a full reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure.

The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company's reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

(1) Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company's results when compared to the prior period.

(2) Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.

(3) Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding (1), to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) non-cash investment loss/gain, and (f) dilutive shares related to the Company's convertible notes. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure. 

Conference Call and Slide Presentation
Euronet Worldwide will host an analyst conference call on July 30, 2026, at 9:00 a.m. Eastern Time to discuss these results. The call may also include discussion of Company developments on the Company's operations, forward-looking information, and other material information about business and financial matters. To listen to the call via telephone please register at Euronet Worldwide Second Quarter 2026 Earnings Call. The conference call and accompanying slide show presentation will be accessible via webcast by following the link posted on http://ir.euronetworldwide.com. Participants should register at least five minutes prior to the scheduled start time of the event. A slideshow will be included in the webcast.

Investors may also access the Company's Investor Day presentation, which provides additional information regarding Euronet's long-term strategy, growth accelerators, and financial objectives, through the Investor Relations section of the Company's website at http://ir.euronetworldwide.com.

A webcast replay will be available beginning approximately one hour after the event at http://ir.euronet worldwide.com and will remain available for one year.

About Euronet Worldwide, Inc.
Euronet (Nasdaq: EEFT) is a global leader in payment processing and cross-border transactions, operating for more than 30 years and now serving clients in 200+ countries and territories. We support financial institutions, merchants and global brands with technology-driven solutions, while enabling businesses and consumers to send, receive and spend money seamlessly worldwide. By operating one of the world’s largest independent electronic payment networks spanning merchant acquiring, transaction processing and point-of-sale infrastructure, Euronet enables real-time, digital and cross-border movement of money at global scale. In 2025, Euronet processed more than 20 billion transactions across its network. Headquartered in Leawood, Kansas USA, Euronet operates from 74 offices worldwide. For more information, visit www.euronet.com.

Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: conditions in world financial markets and general economic conditions, including impacts from pandemics or other disease outbreaks; inflation; military conflicts in the Ukraine and the Middle East, and the related economic sanctions; our ability to successfully integrate any acquired operations; economic conditions in specific countries and regions; technological developments, including artificial intelligence affecting the market for our products and services; our ability to successfully introduce new products and services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs; our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy; changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions and digital assets; changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other loss contingencies affecting Euronet; the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants; and renewal of sources of funding as they expire and the availability of replacement funding. These risks and other risks are described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC's Edgar website or by contacting the Company. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. The Company regularly posts important information to the investor relations section of its website. 

  EURONET WORLDWIDE, INC.
Condensed Consolidated Balance Sheets
(in millions)
   As of    June 30, As of  2026 December 31,  (unaudited) 2025ASSETS      Current assets:      Cash and cash equivalents $1,196.7 $1,040.3ATM cash  987.2  650.3Restricted cash  36.8  23.2Settlement assets  1,425.3  1,910.4Trade accounts receivable, net  363.9  334.5Prepaid expenses and other current assets  321.7  311.5  Total current assets  4,331.6  4,270.2Property and equipment, net  371.8  375.3Right of use lease asset, net  149.9  153.9Goodwill and acquired intangible assets, net  1,266.7  1,303.5Other assets, net  373.1  385.8    Total assets $6,493.1 $6,488.7LIABILITIES AND EQUITY      Current liabilities:            Settlement obligations $1,425.3 $1,910.4      Accounts payable and other current liabilities  852.1  905.2      Current portion of operating lease obligations  55.8  54.9Short-term debt obligations  827.0  984.2      Total current liabilities  3,160.2  3,854.7Debt obligations, net of current portion  1,826.8  1,037.0Operating lease obligations, net of current portion  97.1  100.6Capital lease obligations, net of current portion  0.2  0.6Deferred income taxes  75.9  78.3Other long-term liabilities  87.6  95.0        Total liabilities  5,247.8  5,166.2        Total equity  1,245.3  1,322.5        Total liabilities and equity $6,493.1 $6,488.7  EURONET WORLDWIDE, INC.
Consolidated Statements of Operations
(unaudited - in millions, except share and per share data)
    Three Months Ended    June 30,   2026 2025 Revenues $1,108.4  $1,074.3        Operating expenses:      Direct operating costs, exclusive of depreciation  639.6   620.6 Salaries and benefits  193.3   173.5 Selling, general and administrative  98.4   87.8 Depreciation and amortization  40.0   33.8 Total operating expenses  971.3   915.7 Operating income  137.1   158.6        Other income (expense):      Interest income  4.8   6.2 Interest expense  (20.6)  (28.2)Foreign currency exchange loss, net  (0.2)  (5.7)Other income  3.2   0.4 Total other expense, net  (12.8)  (27.3)Income before income taxes  124.3   131.3        Income tax expense  (46.7)  (33.6)Net income  77.6   97.7 Net income attributable to noncontrolling interests  (0.2)  (0.1)Net income attributable to Euronet Worldwide, Inc. $77.4  $97.6 Add: Interest expense from assumed conversion of convertible notes, net of tax  1.7   0.1 Net income for diluted earnings per share calculation $79.1  $97.7 Earnings per share attributable to Euronet      Worldwide, Inc. stockholders - diluted $1.71  $2.27 Diluted weighted average shares outstanding  46,177,113   42,954,631    EURONET WORLDWIDE, INC.
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA
 (unaudited - in millions)
   Three months ended June 30, 2026  Payments
InfrastructureepayCross-
Border
PaymentsCorporate
ServicesConsolidatedNet income             $77.6Add: Income tax expense              46.7Add: Total other expense, net              12.8Operating income (expense) $86.1 $32.8 $43.3 $(25.1) $137.1Add: Depreciation and amortization  31.8  1.6  6.4  0.2   40.0Add: Share-based compensation  —  —  —  15.7   15.7Earnings before interest, taxes, depreciation, amortization, share-based compensation (Adjusted EBITDA) (1) $117.9 $34.4 $49.7 $(9.2) $192.8 .

  Three months ended June 30, 2025  Payments
InfrastructureepayCross-
Border
PaymentsCorporate
ServicesConsolidatedNet income             $97.7Add: Income tax expense              33.6Add: Total other expense, net              27.3Operating income (expense) $84.6 $31.1 $65.6 $(22.7) $158.6Add: Depreciation and amortization  26.0  1.7  6.0  0.1   33.8Add: Share-based compensation  —  —  —  13.8   13.8Earnings before interest, taxes, depreciation, amortization, share-based compensation (Adjusted EBITDA) (1) $110.6 $32.8 $71.6 $(8.8) $206.2  (1) Adjusted EBITDA is a non-GAAP measure that should be considered in addition to, and not a substitute for, net income computed in accordance with U.S. GAAP.

  EURONET WORLDWIDE, INC.
 Reconciliation of Adjusted Earnings per Share
 (unaudited - in millions, except share and per share data)
   Three Months Ended  June 30,  2026  2025 Net income attributable to Euronet Worldwide, Inc. $77.4  $97.6        Foreign currency exchange loss  0.2   5.7 Intangible asset amortization (1)  9.6   4.7 Share-based compensation (2)  15.7   13.8 Income tax effect of above adjustments (3)  7.2   (13.7)Non-cash investment gain (4)  (3.6)  (0.4)Non-cash GAAP tax expense (5)  3.5   3.0        Adjusted earnings (6) $110.0  $110.7        Adjusted earnings per share - diluted (6) $2.82  $2.56        Diluted weighted average shares outstanding (GAAP)  46,177,113   42,954,631 Effect of adjusted EPS dilution of convertible notes  (8,047,923)  (176,123)Effect of unrecognized share-based compensation on diluted shares outstanding  931,235   406,912 Adjusted diluted weighted average shares outstanding  39,060,425   43,185,420           (1) Intangible asset amortization of $9.6 million and $4.7 million are included in depreciation and amortization expense of $40.0 million and $33.8 million for the three months ended June 30, 2026 and June 30, 2025, respectively, in the consolidated statements of operations.

(2) Share-based compensation of $15.7 million and $13.8 million are included in salaries and benefits expense of $193.3 million and $173.5 million for the three months ended June 30, 2026 and June 30, 2025, respectively, in the consolidated statements of operations.

(3) Adjustment is the aggregate U.S. GAAP income tax effect on the preceding adjustments determined by applying the applicable statutory U.S. federal, state and/or foreign income tax rates. 

(4) Non-cash investment gain of $3.6 million is included in other income in the consolidated statement of operations for the three months ended June 30, 2026. Non-cash investment gain of $0.4 million is included in other income in the consolidated statement of operations for the three months ended June 30, 2025.

(5) Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.

(6) Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with U.S. GAAP. 

July 30, 2026 07:30 ET  | Source: Saia, Inc.

JOHNS CREEK, Ga., July 30, 2026 (GLOBE NEWSWIRE) -- Saia, Inc. (Nasdaq: SAIA) today reported second quarter 2026 financial results. Diluted earnings per share for the quarter were $3.51 compared to $2.67 in the second quarter of 2025.

Highlights from the second quarter operating results were as follows:

Second Quarter 2026 Compared to Second Quarter 2025 Results

Revenue was $956.5 million, a 17.1% increaseOperating income was $125.2 million, a 26.0% increaseOperating ratio of 86.9% compared to 87.8%LTL shipments per workday increased 4.4%LTL tonnage per workday increased 8.4%LTL revenue per hundredweight, excluding fuel surcharge revenue, decreased 2.2%LTL revenue per shipment, excluding fuel surcharge revenue, increased 1.5%
Saia President and CEO, Fritz Holzgrefe, commented on the quarter stating, “Our strong second quarter results highlight the continued enhancement of our expanded service offering, disciplined execution and the commitment of our team members. We achieved record revenue and tonnage, along with a second-quarter record in shipments, reflecting solid growth across our network. At the same time, we maintained our disciplined focus on execution, as demonstrated by a record-low claims ratio of 0.3%. The team's ability to generate strong operating results while continuing our focus on supporting our customers and integrating network growth initiatives continues to differentiate Saia in the marketplace.”

Executive Vice President and CFO, Matt Batteh, noted that, “The quarter's results were driven by continued focus on pricing and mix optimization, healthy volume trends and strong operational execution. Our expanded network enables us to provide more solutions to customers, which helped drive record top line revenue and improved operating income compared to last year. We remain focused on core execution, which will continue to create long-term value for our shareholders.”

Financial Position and Capital Expenditures

Saia ended the second quarter of 2026 with $84.0 million of cash on hand and total debt of $100.1 million, which compares to $18.8 million of cash on hand and total debt of $309.1 million at June 30, 2025.

Net capital expenditures were $158.0 million during the first six months 2026, compared to $375.6 million in net capital expenditures during the first six months of 2025. In 2026, we anticipate that net capital expenditures will be approximately $350 million to $400 million, subject to ongoing evaluation of market conditions.

Conference Call

Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 1-833-890-5317 and request to join the Saia, Inc. call. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company website at www.saia.com/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through August 30, 2026 at 11:59 P.M. Eastern Time. The replay will be available by dialing 1-855-669-9658 referencing conference ID #4952046.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, brokered truckload, expedited transportation and other logistics services. With headquarters in Georgia, Saia LTL Freight operates 218 terminals with national service. For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

Cautionary Note Regarding Forward-Looking Statements

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release may contain these types of statements, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “may,” “plan,” “predict,” “believe,” “should,” “potential” and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, uncertainties and assumptions include, but are not limited to, (1) general economic conditions including downturns or inflationary periods in the business cycle; (2) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers, dock workers, mechanics and other employees, purchased transportation and fuel; (5) inflationary increases in expenses and corresponding reductions of profitability; (6) cost and availability of diesel fuel and fuel surcharges; (7) cost and availability of insurance coverage and claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (8) failure to successfully execute the strategy to expand our service geography; (9) unexpected liabilities resulting from the acquisition of real estate assets; (10) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (11) risks arising from remote work, including increased risk of related cybersecurity incidents; (12) failure to keep pace with technological developments; (13) liabilities and costs arising from the use of artificial intelligence; (14) labor relations, including the adverse impact should a portion of our workforce become unionized; (15) cost, availability and resale value of real property and revenue equipment; (16) supply chain disruption and delays on new equipment delivery; (17) changes in U.S. trade policy and the impact of tariffs; (18) capacity and highway infrastructure constraints; (19) risks arising from international business operations and relationships; (20) seasonal factors, harsh weather and disasters caused by climate change; (21) the creditworthiness of our customers and their ability to pay for services; (22) our need for capital and uncertainty of the credit markets; (23) the possibility of defaults under our debt agreements, including violation of financial covenants; (24) inaccuracies and changes to estimates and assumptions used in preparing our financial statements; (25) dependence on key employees; (26) employee turnover from changes to compensation and benefits or market factors; (27) increased costs of healthcare benefits; (28) damage to our reputation from adverse publicity, including from the use of or impact from social media; (29) failure to achieve acquisition synergies or disruption to our business due to such acquisitions; (30) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (31) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (32) unforeseen costs from new and existing data privacy laws; (33) the effect of governmental regulations, including hours of service and licensing compliance for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (34) changes in accounting and financial standards or practices; (35) widespread outbreak of an illness or any other communicable disease; (36) international conflicts and geopolitical instability; (37) evolving stakeholder expectations regarding environmental and social issues; (38) government shutdown or failure to fund services; (39) provisions in our governing documents and Delaware law that may have anti-takeover effects; (40) issuances of equity that would dilute stock ownership; (41) weakness, disruption or loss of confidence in financial or credit markets; and (42) other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings.

As a result of these and other factors, no assurance can be given as to our future results and achievements. Accordingly, a forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this news release. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

CONTACT:Saia, Inc. Matthew Batteh Executive Vice President and Chief Financial Officer [email protected]  Saia, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Amounts in thousands)(Unaudited)       June 30, 2026 December 31, 2025Assets         Current Assets:    Cash and cash equivalents $84,014  $19,720 Accounts receivable, net  423,841   332,206 Prepaid expenses and other  79,791   82,630 Total current assets  587,646   434,556      Property and Equipment:    Cost  4,385,988   4,259,438 Less: accumulated depreciation  1,481,142   1,415,087 Net property and equipment  2,904,846   2,844,351 Operating Lease Right-of-Use Assets  177,513   150,301 Other Assets  54,955   53,473 Total assets $3,724,960  $3,482,681      Liabilities and Stockholders' Equity         Current Liabilities:    Accounts payable $164,842  $107,424 Wages, vacation and employees' benefits  92,162   50,723 Other current liabilities  83,463   78,362 Current portion of long-term debt  124   980 Current portion of operating lease liability  30,312   27,895 Total current liabilities  370,903   265,384      Other Liabilities:    Long-term debt, less current portion  100,000   163,000 Operating lease liability, less current portion  138,755   113,119 Deferred income taxes  299,531   284,370 Claims, insurance and other  89,043   79,109 Total other liabilities  627,329   639,598      Stockholders' Equity:    Common stock  27   27 Additional paid-in capital  313,245   307,605 Deferred compensation trust  (9,828)   (9,088) Retained earnings  2,423,284   2,279,155 Total stockholders' equity  2,726,728   2,577,699 Total liabilities and stockholders' equity $3,724,960  $3,482,681            Saia, Inc. and SubsidiariesCondensed Consolidated Statements of OperationsFor the Quarters and Six Months Ended June 30, 2026 and 2025(Amounts in thousands, except per share data)(Unaudited)       Second Quarter Six Months   2026   2025   2026   2025 Operating Revenue $956,494  $817,115  $1,762,720  $1,604,690          Operating Expenses:        Salaries, wages and employees' benefits  434,385   390,975   827,681   780,231 Purchased transportation  84,980   57,699   149,308   117,548 Fuel, operating expenses and supplies  198,743   161,634   372,232   328,305 Operating taxes and licenses  22,438   22,014   44,670   42,451 Claims and insurance  24,409   22,826   47,311   44,371 Depreciation and amortization  64,181   62,546   126,371   121,589 Other operating losses, net  2,146   22   3,129   628 Total operating expenses  831,282   717,716   1,570,702   1,435,123          Operating Income  125,212   99,399   192,018   169,567          Nonoperating (Income) Expenses:        Interest expense  2,048   4,742   4,622   9,027 Interest income  (317)   (34)   (380)   (73) Other, net  (1,994)   (873)   (2,734)   (516) Nonoperating expenses, net  (263)   3,835   1,508   8,438          Income Before Income Taxes  125,475   95,564   190,510   161,129 Income Tax Provision  31,215   24,173   46,381   39,928 Net Income $94,260  $71,391  $144,129  $121,201          Weighted average common shares outstanding - basic  26,779   26,739   26,771   26,730 Weighted average common shares outstanding - diluted  26,833   26,785   26,822   26,782          Basic earnings per share $3.52  $2.67  $5.38  $4.53 Diluted earnings per share $3.51  $2.67  $5.37  $4.53           Saia, Inc. and SubsidiariesCondensed Consolidated Statements of Cash FlowsFor the six months ended June 30, 2026 and 2025(Amounts in thousands)(Unaudited)  Six Months   2026   2025 Operating Activities:    Net cash provided by operating activities $291,231  $279,815 Net cash provided by operating activities  291,231   279,815 Investing Activities:    Acquisition of property and equipment  (161,063)   (377,540) Proceeds from disposal of property and equipment  3,041   1,967 Other  –   (8,394) Net cash used in investing activities  (158,022)   (383,967) Financing Activities:    Borrowing (repayment) of revolving credit facility, net  (63,000)   113,000 Proceeds from stock option exercises  427   2,463 Shares withheld for taxes  (5,486)   (7,744) Other financing activity  (856)   (4,203) Net cash (used in) provided by financing activities  (68,915)   103,516 Net Increase (Decrease) in Cash and Cash Equivalents  64,294   (636) Cash and Cash Equivalents, beginning of period  19,720   19,473 Cash and Cash Equivalents, end of period $84,014  $18,837       Saia, Inc. and SubsidiariesFinancial InformationFor the Quarters Ended June 30, 2026 and 2025(Unaudited)                     Second Quarter    Second Quarter % Amount/Workday %   2026   2025  Change 2026 2025 ChangeWorkdays      64 64  Operating ratio 86.9%  87.8%        LTL tonnage (1) 1,709   1,576  8.4  26.70 24.63 8.4LTL shipments (1) 2,361   2,261  4.4  36.89 35.33 4.4LTL revenue/cwt.$27.18  $25.20  7.9       LTL revenue/cwt., excluding fuel surcharge$20.94  $21.42  (2.2)       LTL revenue/shipment$393.56  $351.36  12.0       LTL revenue/shipment, excluding fuel surcharge$303.12  $298.71  1.5       LTL pounds/shipment 1,448   1,394  3.9       LTL average length of haul (2) 888   893  (0.6)                    (1)In thousands.                        (2)In miles.                        Note:LTL operating statistics exclude transportation and logistics services where pricing is generally not determined by weight. The LTL operating statistics also exclude the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy.

Virtu Financial (VIRT - Free Report) came out with quarterly earnings of $1.82 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.53 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this high-speed trading company would post earnings of $1.66 per share when it actually produced earnings of $2.24, delivering a surprise of +34.94%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Virtu Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $717.87 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.44%. This compares to year-ago revenues of $567.72 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Virtu Financial shares have added about 73.9% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Virtu Financial?While Virtu Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Virtu Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.45 on $603.5 million in revenues for the coming quarter and $6.95 on $2.59 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Jefferson Capital, Inc. (JCAP - Free Report) , is yet to report results for the quarter ended June 2026.

This company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of -22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Jefferson Capital, Inc.'s revenues are expected to be $173.6 million, up 13.7% from the year-ago quarter.

Valero Energy (VLO - Free Report) came out with quarterly earnings of $12.54 per share, beating the Zacks Consensus Estimate of $9.87 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +27.05%. A quarter ago, it was expected that this oil refiner would post earnings of $3.07 per share when it actually produced earnings of $4.22, delivering a surprise of +37.46%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Valero Energy, which belongs to the Zacks Oil and Gas - Refining and Marketing industry, posted revenues of $44.48 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 23.73%. This compares to year-ago revenues of $29.89 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Valero Energy shares have added about 85.1% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Valero Energy?While Valero Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Valero Energy was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $12.31 on $35.46 billion in revenues for the coming quarter and $36.64 on $135.27 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Refining and Marketing is currently in the top 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Phillips 66 (PSX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This oil refiner is expected to post quarterly earnings of $7.68 per share in its upcoming report, which represents a year-over-year change of +222.7%. The consensus EPS estimate for the quarter has been revised 25.5% higher over the last 30 days to the current level.

Phillips 66's revenues are expected to be $36.17 billion, up 7.9% from the year-ago quarter.

Wolfe Research Senior Analyst Chris Caso used a CNBC appearance on July 29 to defend the semiconductor sector after a sharp pullback, arguing that the physical infrastructure needed to trigger an oversupply cycle simply does not exist yet. The SOXX index has pulled back 25% from its recent high following SK Hynix’s earnings report, but he believes the classic chip-cycle bust remains years away because fabs and data centers cannot be conjured up on demand.

Caso argued: “You just don’t have the physical space to make the semiconductors right now. So it’s really hard to see a situation right now where we’re in oversupply.” He added that “the current up cycle requires the building of brand new buildings that take a long time to build, and even the potential of getting to that oversupply situation is really 2028 at the very earliest.“

NVIDIA and AMD Show AI Demand Is Still Accelerating Caso pointed to TSMC being completely sold out, with no physical space to make semiconductors. That constraint radiates through the entire supply chain, from advanced logic customers like NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) down through memory and storage.

NVIDIA’s Q1 FY2027 results underscore the demand backdrop. Revenue reached $81.61 billion, up 85.2% year over year, with Data Center at $75.25 billion and networking up 199%. Management guided Q2 revenue to $91.0 billion and disclosed total supply-related commitments of $119.0 billion. CEO Jensen Huang described the moment as “the largest infrastructure expansion in human history.”

AMD’s Q1 2026 earnings report reinforced the same theme. Revenue came in at $10.25 billion, up 37.9%, with Data Center revenue of $5.78 billion, up 57%. CEO Lisa Su said “leading customer forecasts exceeding our initial expectations” for the MI450 series.

Memory Supply Is Where the Shortage Looks Most Severe Caso was blunt on DRAM and HBM: “The memory suppliers are severely supply constrained. They can’t produce more, which is the very reason why we’re bullish on memory.” He noted Micron reported about a month before SK Hynix, with one of the best reports in company history.

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Micron Technology (NASDAQ:MU) posted Q3 FY2026 revenue of $41.46 billion, up 345.7% year over year, with GAAP gross margin of 84.6% and Q4 guidance of $50.0 billion in revenue at roughly 86% gross margin. CEO Sanjay Mehrotra highlighted that multi-year Strategic Customer Agreements now anchor the order book, with HBM4E volume production expected in calendar 2027.

Chip Equipment and Storage Stocks Confirm the Capacity Crunch KLA Corporation (NASDAQ:KLAC) sits at the front of any capacity buildout. Q4 FY2026 revenue was $3.66 billion, up 15.2%, with Q1 FY2027 guided to $4.0 billion. CEO Rick Wallace said momentum is “accelerating in the second half of calendar 2026 and continuing through 2027.” Shares still fell 6.18% on July 28 as investors focused on valuation.

Storage tells the same story. Western Digital (NASDAQ:WDC) reported Q3 FY2026 revenue of $3.34 billion, up 45.5%, with non-GAAP gross margin crossing 50.5%. CEO Irving Tan noted that “virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.”

NVIDIA Is Using Its Balance Sheet to Protect the AI Supply Chain Caso also defended NVIDIA’s supply-chain investments. He cited seven tranches of bonds issued in June at a weighted-average spread of less than 0.5% and noted that NVIDIA backstopped $500 billion to SK Hynix and $250 billion to OpenAI. His view: “I’m pretty comfortable with providing equity and such to shore up the supply chain because the capital is required for your customers to expand capacity.”

If Caso’s capacity math is right, the recent semiconductor selloff reflects a shift in sentiment rather than a fundamental change in the underlying cycle. Investors should watch fab construction timelines, HBM4E qualification progress and hyperscaler capex commentary for the first concrete signals that meaningful new supply could finally arrive in 2028. Until then, the physical constraints supporting the semiconductor cycle appear to remain firmly in place.

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Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS) (the "Company"), a leader in environmental and safety solutions, today reported financial results for the second quarter ended June 30, 2026.

Second Quarter Highlights

Net sales of $670 million, up $106 million, or 19%, from last year Operating income of $118.2 million, up $20.5 million, or 21%, from last year GAAP Diluted EPS of $1.40, up $0.24, or 21%, from last year Adjusted EPS of $1.42, up $0.25, or 21%, from last year Orders of $637 million, up $97 million, or 18%, from last year Operating cash flow of $113 million, up $53 million, or 89%, from last year Raises 2026 net sales outlook to a new range of $2.58 billion to $2.67 billion, from the prior range of $2.57 billion to $2.66 billion Raises 2026 adjusted EPS* outlook to a new range of $5.12 to $5.30, from the prior range of $4.80 to $5.05 Consolidated net sales for the second quarter were $670 million, an increase of $106 million, or 19%, compared to the prior-year quarter. Net income for the second quarter was $86.1 million, or $1.40 per diluted share, compared to $71.4 million, or $1.16 per diluted share, in the prior-year quarter.

The Company also reported adjusted net income for the second quarter of $87.5 million, or $1.42 per diluted share, compared to $71.9 million, or $1.17 per diluted share, in the prior-year quarter. The Company is reporting adjusted results to facilitate comparisons of underlying performance on a year-over-year basis. A reconciliation of these and other non-GAAP measures is provided at the conclusion of this news release.

Double-Digit Year-over-Year Net Sales and Operating Income Growth and 18% Increase in Orders in Record-Setting Second Quarter

"In what is typically a seasonally-strong period, our businesses were able to deliver 19% year-over-year net sales growth, 21% operating income improvement, an 18% increase in orders, gross margin expansion, and a 60-basis point increase in adjusted EBITDA margin during a record-setting second quarter," commented Jennifer L. Sherman, President and Chief Executive Officer. "These results underscore the resilience and durability of our business model, the momentum behind our growth initiatives, and the unwavering commitment of our teams. Within our Environmental Solutions Group, orders were up 24% year-over-year, including high-single-digit organic growth, while net sales and adjusted EBITDA increased by 20% and 25%, respectively, with contributions from recent acquisitions, higher sales of our aftermarket offerings, and proactive management of price/cost dynamics representing meaningful year-over-year growth drivers. Our Safety and Security Systems Group also delivered impressive results, with 10% top-line growth and an adjusted EBITDA margin of approximately 25%."

In the Environmental Solutions Group, net sales for the second quarter were $578 million, up $97 million, or 20%, compared to the prior-year quarter. In the Safety and Security Systems Group, net sales were $93 million, up $8 million, or 10%, compared to the prior-year quarter.

Consolidated operating income for the second quarter was $118.2 million, up $20.5 million, or 21%, compared to the prior-year quarter. Consolidated operating margin for the second quarter was 17.6%, up from 17.3% in the prior-year quarter.

Consolidated adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA") for the second quarter was $144.4 million, up $26.2 million, or 22%, compared to the prior-year quarter, and consolidated adjusted EBITDA margin was 21.5%, up from 20.9% in the prior-year quarter.

In the Environmental Solutions Group, adjusted EBITDA for the second quarter was $138.3 million, up $27.5 million, or 25%, compared to the prior-year quarter, and its adjusted EBITDA margin was 23.9%, up from 23.1% last year. In the Safety and Security Systems Group, adjusted EBITDA for the second quarter was $23.2 million, up $0.6 million, or 3%, compared to the prior-year quarter, and its adjusted EBITDA margin was 25.1%, compared to 26.9% last year.

Consolidated orders for the second quarter were $637 million, an increase of $97 million, or 18%, compared to the prior-year quarter. Consolidated backlog at June 30, 2026 was $1.00 billion, compared to $1.08 billion in the prior-year quarter.

Increased Operating Cash Flow Provides Flexibility to Fund M&A, Organic Growth Opportunities, and Cash Returns to Stockholders

Net cash provided by operating activities during the second quarter was $113 million, an increase of $53 million, or 89%, from the prior-year quarter.

At June 30, 2026, total outstanding debt was $454 million, total cash and cash equivalents were $63 million, and the Company had $1.04 billion of availability for borrowings under its credit facility.

"Our operating cash flow generation during the quarter was outstanding, enabling us to pay down approximately $97 million of debt during the quarter," said Sherman. "With the increased cash generation and available capacity under our credit facility, we have significant financial flexibility to invest in organic growth initiatives, pursue additional strategic acquisitions, pay down debt, and provide returns to stockholders through dividends and opportunistic stock repurchases."

The Company funded dividends of $9.1 million during the second quarter, reflecting a dividend of $0.15 per share, and recently announced a similar $0.15 per share dividend that will be payable in the third quarter of 2026.

Outlook

"Demand for our products and our aftermarket offerings remains strong overall, with our second quarter orders up 18% year-over-year," noted Sherman. "With our second quarter performance, our current backlog, and continued execution against our strategic initiatives, we are raising our full-year adjusted EPS* outlook to a new range of $5.12 to $5.30, from the prior range of $4.80 to $5.05. We are also increasing our full-year net sales outlook to a new range of between $2.58 billion and $2.67 billion, from the prior range of between $2.57 billion and $2.66 billion."

CONFERENCE CALL

Federal Signal will host its second quarter conference call on Thursday, July 30, 2026 at 10:00 a.m. Eastern Time. The call will last approximately one hour. The call may be accessed over the internet through Federal Signal's website at www.federalsignal.com or by dialing phone number 1-877-704-4453 and entering the pin number 13761759. A replay will be available on Federal Signal's website shortly after the call.

About Federal Signal

Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial, and commercial customers. Headquartered in Downers Grove, Ill., with manufacturing facilities worldwide, the Company operates two groups: Environmental Solutions and Safety and Security Systems. For more information on Federal Signal, visit: www.federalsignal.com. 

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Forward looking statements should not be relied upon as a predictor of actual results. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic and political uncertainty, risks and adverse economic effects associated with geopolitical conflicts including tariffs and other trade conflicts, legal and regulatory developments, foreign currency exchange rate changes, inflationary pressures, product and price competition, supply chain disruptions, availability and pricing of raw materials, interest rate changes, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, work stoppages, increases in pension funding requirements, cybersecurity risks, increased legal expenses and litigation results, and other risks and uncertainties described in filings with the Securities and Exchange Commission.

* Adjusted earnings per share ("EPS") is a non-GAAP measure, which includes certain adjustments to reported GAAP net income and diluted EPS. In the three and six months ended June 30, 2026 and 2025, we made adjustments to exclude the impact of acquisition and integration-related expenses, net, purchase accounting effects, and certain special income tax items, where applicable. In prior years, we have also made adjustments to exclude the impact of pension-related charges, debt settlement charges, and certain other unusual or non-recurring items. Should any similar items occur in the remainder of 2026, we would expect to exclude them from the determination of adjusted EPS. However, because of the underlying uncertainty in quantifying amounts which may not yet be known, a reconciliation of our Adjusted EPS outlook to the most applicable GAAP measure is excluded based on the unreasonable efforts exception in Item 10(e)(1)(i)(B).

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share data)

2026

2025

2026

2025

Net sales

$    670.2

$    564.6

$            1,295.8

$            1,028.4

Cost of sales

466.4

395.0

912.6

728.0

Gross profit

203.8

169.6

383.2

300.4

Selling, engineering, general and administrative expenses

78.3

66.9

150.3

127.1

Amortization expense

6.6

4.5

13.1

8.8

Acquisition and integration-related expenses, net

0.7

0.5

1.9

1.1

Operating income

118.2

97.7

217.9

163.4

Interest expense, net

6.0

3.5

12.9

6.5

Other expense, net

0.8

0.8

1.4

1.5

Income before income taxes

111.4

93.4

203.6

155.4

Income tax expense

25.3

22.0

47.1

37.7

Net income

$     86.1

$     71.4

$  156.5

$  117.7

Earnings per share:

Basic

$     1.41

$     1.18

$   2.57

$   1.93

Diluted

$     1.40

$     1.16

$   2.54

$   1.91

Weighted average common shares outstanding:

Basic

60.9

60.6

60.9

60.9

Diluted

61.5

61.3

61.5

61.6

Cash dividends declared per common share

$     0.15

$     0.14

$   0.30

$   0.28

Operating data:

Operating margin

17.6 %

17.3 %

16.8 %

15.9 %

Adjusted EBITDA

$    144.4

$    118.2

$  270.7

$  203.3

Adjusted EBITDA margin

21.5 %

20.9 %

20.9 %

19.8 %

Total orders

$    636.7

$    539.7

$            1,259.5

$            1,107.6

Backlog

1,002.1

1,083.5

1,002.1

1,083.5

Depreciation and amortization

24.6

19.9

48.4

38.6

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,
2026

December 31,
2025

(in millions, except per share data)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$       62.8

$       63.7

Accounts receivable, net of allowances for doubtful accounts of $2.8 and $2.8, respectively

288.8

292.2

Inventories

479.8

471.6

Prepaid expenses and other current assets

25.5

26.3

Total current assets

856.9

853.8

Properties and equipment, net of accumulated depreciation of $219.4 and $208.0, respectively

289.6

274.6

Rental equipment, net of accumulated depreciation of $73.5 and $69.2, respectively

210.0

202.7

Operating lease right-of-use assets

30.8

28.4

Goodwill

636.8

619.8

Intangible assets, net of accumulated amortization of $116.8 and $104.2, respectively

386.9

382.9

Deferred tax assets

9.8

10.1

Deferred charges and other long-term assets

19.2

20.3

Total assets

$   2,440.0

$   2,392.6

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term borrowings and finance lease obligations

$        5.4

$        0.5

Accounts payable

114.6

98.0

Customer deposits

57.7

47.7

Accrued liabilities:

Compensation and withholding taxes

47.0

52.3

Current operating lease liabilities

8.6

7.9

Contingent consideration

4.3

15.0

Other current liabilities

75.3

61.0

Total current liabilities

312.9

282.4

Long-term borrowings and finance lease obligations

448.2

564.6

Long-term operating lease liabilities

23.6

21.6

Long-term pension and other post-retirement benefit liabilities

44.4

43.1

Deferred tax liabilities

77.8

71.9

Other long-term liabilities

25.5

27.0

Total liabilities

932.4

1,010.6

Stockholders' equity:

Common stock, $1 par value per share, 90.0 shares authorized, 71.1 and 70.8 shares issued,
respectively

71.1

70.8

Capital in excess of par value

340.7

330.4

Retained earnings

1,453.5

1,315.3

Treasury stock, at cost, 10.0 and 9.9 shares, respectively

(279.1)

(263.5)

Accumulated other comprehensive loss

(78.6)

(71.0)

Total stockholders' equity

1,507.6

1,382.0

Total liabilities and stockholders' equity

$   2,440.0

$   2,392.6

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended

June 30,

(in millions)

2026

2025

Operating activities:

Net income

$    156.5

$    117.7

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

48.4

38.6

Stock-based compensation expense

8.1

8.1

Changes in fair value of contingent consideration

0.4

—

Payments for acquisition-related activity

(3.5)

(0.1)

Deferred income taxes

6.0

0.2

Changes in operating assets and liabilities

(1.7)

(68.1)

Net cash provided by operating activities

214.2

96.4

Investing activities:

Purchases of properties and equipment

(18.6)

(12.9)

Payments for acquisition-related activity, net of cash acquired

(44.9)

(82.1)

Other, net

1.4

0.7

Net cash used for investing activities

(62.1)

(94.3)

Financing activities:

(Decrease) increase in revolving lines of credit, net

(109.8)

55.0

Payments on long-term borrowings

—

(1.6)

Purchases of treasury stock

(0.1)

(39.7)

Redemptions of common stock to satisfy withholding taxes related to stock-based compensation

(13.5)

(11.4)

Payments for acquisition-related activity

(11.5)

(4.3)

Cash dividends paid to stockholders

(18.3)

(17.1)

Proceeds from stock-based compensation activity

0.5

1.1

Other, net

(0.2)

(11.8)

Net cash used for financing activities

(152.9)

(29.8)

Effects of foreign exchange rate changes on cash and cash equivalents

(0.1)

1.3

Decrease in cash and cash equivalents

(0.9)

(26.4)

Cash and cash equivalents at beginning of year

63.7

91.1

Cash and cash equivalents at end of period

$      62.8

$      64.7

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

GROUP RESULTS (Unaudited)

The following tables summarize group operating results as of and for the three and six months ended June 30, 2026 and 2025:

Environmental Solutions Group

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

Change

2026

2025

Change

Net sales

$   577.7

$   480.5

$     97.2

$            1,110.4

$  867.9

$  242.5

Operating income

113.9

91.9

22.0

203.0

151.6

51.4

Adjusted EBITDA

138.3

110.8

27.5

251.6

188.3

63.3

Operating data:

Operating margin

19.7 %

19.1 %

0.6 %

18.3 %

17.5 %

0.8 %

Adjusted EBITDA margin

23.9 %

23.1 %

0.8 %

22.7 %

21.7 %

1.0 %

Total orders

$   547.8

$   441.1

$   106.7

$            1,082.1

$  921.2

$  160.9

Backlog

934.8

1,000.3

(65.5)

934.8

1,000.3

(65.5)

Depreciation and amortization

23.3

18.7

4.6

45.9

36.3

9.6

Safety and Security Systems Group

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

Change

2026

2025

Change

Net sales

$     92.5

$     84.1

$      8.4

$  185.4

$  160.5

$   24.9

Operating income

22.1

21.5

0.6

45.7

37.3

8.4

Adjusted EBITDA

23.2

22.6

0.6

47.9

39.4

8.5

Operating data:

Operating margin

23.9 %

25.6 %

(1.7) %

24.6 %

23.2 %

1.4 %

Adjusted EBITDA margin

25.1 %

26.9 %

(1.8) %

25.8 %

24.5 %

1.3 %

Total orders

$     88.9

$     98.6

$     (9.7)

$  177.4

$  186.4

$   (9.0)

Backlog

67.3

83.2

(15.9)

67.3

83.2

(15.9)

Depreciation and amortization

1.1

1.1

—

2.2

2.1

0.1

Corporate Expenses

Corporate operating expenses were $17.8 million and $15.7 million for the three months ended June 30, 2026 and 2025, respectively. Corporate operating expenses were $30.8 million and $25.5 million for the six months ended June 30, 2026 and 2025, respectively.

SEC REGULATION G NON-GAAP RECONCILIATION

The financial measures presented below are unaudited and are not in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company has provided this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the reconciliations below, and to provide an additional measure of performance which management considers in operating the business.

Adjusted Net Income and Earnings Per Share ("EPS"):

The Company believes that modifying its 2026 and 2025 net income and diluted EPS provides additional measures to assist it in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes are not representative of its underlying performance and to improve the comparability of results across reporting periods. Adjusted net income and Adjusted EPS are both non-GAAP measures. During the three and six months ended June 30, 2026 and 2025 adjustments were made to reported GAAP net income and diluted EPS to exclude the impact of acquisition and integration-related expenses, net, purchase accounting effects, and certain special income tax items, where applicable.

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2026

2025

2026

2025

Net income, as reported

$        86.1

$        71.4

$    156.5

$    117.7

Add:

Income tax expense

25.3

22.0

47.1

37.7

Income before income taxes

111.4

93.4

203.6

155.4

Add:

Acquisition and integration-related expenses, net

0.7

0.5

1.9

1.1

Purchase accounting effects (a)

1.1

0.4

2.9

0.7

Adjusted income before income taxes

113.2

94.3

208.4

157.2

Adjusted income tax expense (b) (c)

(25.7)

(22.4)

(48.2)

(38.3)

Adjusted net income

$        87.5

$        71.9

$    160.2

$    118.9

Three Months Ended June 30,

Six Months Ended June 30,

(dollars per diluted share)

2026

2025

2026

2025

EPS, as reported

$        1.40

$        1.16

$      2.54

$      1.91

Add:

Income tax expense

0.41

0.36

0.76

0.61

Income before income taxes

1.81

1.52

3.30

2.52

Add:

Acquisition and integration-related expenses, net

0.01

0.01

0.03

0.02

Purchase accounting effects (a)

0.02

0.01

0.05

0.01

Adjusted income before income taxes

1.84

1.54

3.38

2.55

Adjusted income tax expense (b) (c)

(0.42)

(0.37)

(0.78)

(0.62)

Adjusted EPS

$        1.42

$        1.17

$      2.60

$      1.93

(a)

Purchase accounting effects in the three and six months ended June 30, 2026 and 2025 relate to adjustments to exclude the step-up in the valuation of inventory acquired in connection with acquisitions that was sold subsequent to the acquisition date and the depreciation of the step-up in the valuation of acquired rental equipment, where applicable. Such costs are included as a component of Cost of sales on the Condensed Consolidated Statements of Operations.

(b)

Adjusted income tax expense for the three and six months ended June 30, 2026 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net, and purchase accounting effects.

(c)

Adjusted income tax expense for the three and six months ended June 30, 2025 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net, and purchase accounting effects. Adjusted income tax expense for the three and six months ended June 30, 2025 also excludes a $0.2 million discrete tax benefit recognized in connection with the amendment of certain state tax returns to claim a worthless stock deduction.

Adjusted EBITDA and Adjusted EBITDA Margin:

The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales ("adjusted EBITDA margin"), at both the consolidated and segment level, as additional measures to assist in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes are not representative of its underlying performance and to improve the comparability of results across reporting periods. We believe that investors use versions of these metrics in a similar manner. For these reasons, the Company believes that adjusted EBITDA and adjusted EBITDA margin, at both the consolidated and segment level, are meaningful metrics to investors in evaluating the Company's underlying financial performance.

Consolidated adjusted EBITDA is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, purchase accounting effects, other expense, net, income tax expense, and depreciation and amortization expense, as applicable. Consolidated adjusted EBITDA margin is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, purchase accounting effects, other expense, net, income tax expense, and depreciation and amortization expense, as applicable, divided by net sales for the applicable period(s).

Segment adjusted EBITDA is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, purchase accounting effects, and depreciation and amortization expense, as applicable. Segment adjusted EBITDA margin is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, purchase accounting effects, and depreciation and amortization expense, as applicable, divided by segment net sales for the applicable period(s). Segment operating income includes all revenues, costs, and expenses directly related to the segment involved. In determining segment operating income, neither corporate nor interest expenses are included. Segment depreciation and amortization expense relates to those assets, both tangible and intangible, that are utilized by the respective segment.

Other companies may use different methods to calculate adjusted EBITDA and adjusted EBITDA margin.

Consolidated

The following table summarizes the Company's consolidated adjusted EBITDA and adjusted EBITDA margin and reconciles net income to consolidated adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

2026

2025

Net income

$     86.1

$     71.4

$  156.5

$  117.7

Add:

Interest expense, net

6.0

3.5

12.9

6.5

Acquisition and integration-related expenses, net

0.7

0.5

1.9

1.1

Purchase accounting effects *

0.9

0.1

2.5

0.2

Other expense, net

0.8

0.8

1.4

1.5

Income tax expense

25.3

22.0

47.1

37.7

Depreciation and amortization

24.6

19.9

48.4

38.6

Consolidated adjusted EBITDA

$    144.4

$    118.2

$  270.7

$  203.3

Net sales

$    670.2

$    564.6

$            1,295.8

$            1,028.4

Consolidated adjusted EBITDA margin

21.5 %

20.9 %

20.9 %

19.8 %

* Excludes purchase accounting expense effects included within depreciation and amortization of $0.2 million and $0.3 million for the three months ended June 30, 2026 and 2025, and $0.4 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively.

Environmental Solutions Group

The following table summarizes the Environmental Solutions Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

2026

2025

Operating income

$    113.9

$     91.9

$  203.0

$  151.6

Add:

Acquisition and integration-related expenses, net

0.2

0.1

0.2

0.2

Purchase accounting effects *

0.9

0.1

2.5

0.2

Depreciation and amortization

23.3

18.7

45.9

36.3

Adjusted EBITDA

$    138.3

$    110.8

$  251.6

$  188.3

Net sales

$    577.7

$    480.5

$            1,110.4

$  867.9

Adjusted EBITDA margin

23.9 %

23.1 %

22.7 %

21.7 %

* Excludes purchase accounting expense effects included within depreciation and amortization of $0.2 million and $0.3 million for the three months ended June 30, 2026 and 2025, and $0.4 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively.

Safety and Security Systems Group

The following table summarizes the Safety and Security Systems Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

2026

2025

Operating income

$     22.1

$     21.5

$   45.7

$   37.3

Add:

Depreciation and amortization

1.1

1.1

2.2

2.1

Adjusted EBITDA

$     23.2

$     22.6

$   47.9

$   39.4

Net sales

$     92.5

$     84.1

$  185.4

$  160.5

Adjusted EBITDA margin

25.1 %

26.9 %

25.8 %

24.5 %

SOURCE Federal Signal Corporation

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.