QUANTA SERVICES REPORTS SECOND QUARTER 2026 RESULTS
Rhea-AI Summary
Quanta Services (NYSE: PWR) reported second quarter 2026 revenues of $9.56 billion, up from $6.77 billion a year earlier. GAAP diluted EPS was $2.96 versus $1.52, and adjusted diluted EPS was $4.24 versus $2.48. Net income attributable to common stock was $451.4 million.
According to Quanta Services, adjusted EBITDA reached $1.1 billion, operating cash flow was $1.1 billion and free cash flow was $0.9 billion, all record quarterly or record second-quarter results. Remaining performance obligations were $33.6 billion and total backlog was $53.4 billion. The company significantly increased full-year 2026 financial expectations across all metrics.
Quanta acquired Phalcon, Percheron and PSD in Q2 2026 and Enerfab in July, expecting combined 2026 contributions of $1.2–$1.4 billion of revenue and $120–$140 million of adjusted EBITDA. Upfront consideration was about $1.24 billion (including $1.07 billion in cash and $173.3 million in stock), plus up to $242.3 million of contingent payments.
Positive
- Q2 2026 revenue $9.56B vs. $6.77B in Q2 2025
- Q2 2026 GAAP diluted EPS $2.96 vs. $1.52 year over year
- Q2 2026 adjusted diluted EPS $4.24 vs. $2.48 in Q2 2025
- Adjusted EBITDA $1.1B in Q2 2026, noted as a record result
- Total backlog $53.4B and RPO $33.6B at June 30, 2026
- Four acquisitions expected to add $1.2–$1.4B revenue and $120–$140M adjusted EBITDA in 2026
- New share repurchase authorization of up to $1B plus a $0.11 quarterly dividend
- Moody's credit upgrade to Baa2 for senior unsecured notes and Prime-2 for commercial paper
Negative
- Acquisitions require approximately $1.24B upfront consideration, including $1.07B in cash funding
- Additional potential contingent consideration up to $242.3M tied to acquired businesses’ performance
- Cash portion of recent deals funded with drawings under existing debt arrangements, increasing financing needs
News Explained
Quanta's new
Market reaction after 2Q26 earnings report: PWR +14.46%
Following this news, PWR has gained 14.46%, reflecting a significant positive market reaction. Argus tracked a peak move of +4.1% during the session. Our momentum scanner has triggered 28 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $642.28.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 earnings report | Positive | +15.8% | Revenue, earnings, backlog and full-year guidance increased in the quarterly report. |
| Apr 15 | Earnings schedule | Neutral | -0.4% | Company scheduled its first-quarter results release and webcast for April 30. |
| Oct 30 | Q3 earnings report | Positive | +1.1% | Quarterly revenue, adjusted EPS, backlog and full-year guidance were reported. |
| Oct 14 | Earnings schedule | Neutral | +0.1% | Company announced its third-quarter results release and webcast schedule. |
| Jul 31 | Q2 earnings report | Positive | -1.2% | Record quarterly results, acquisition activity and higher full-year guidance were reported. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history was mixed, with an average move of 3.09% across five events.
Key Terms
adjusted ebitda financial
remaining performance obligations financial
non-gaap financial measures financial
contingent consideration financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Consolidated Revenues of
Second Quarter GAAP Diluted EPS of
Net Income Attributable to Common Stock of
Adjusted EBITDA of
Cash Flow From Operations of
Remaining Performance Obligations (RPO) of
Significantly Increasing 2026 Financial Expectations Across All Metrics
* = Record quarterly or record second quarter result
"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
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
Enerfab, founded in 1901 and headquartered in
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
Percheron, headquartered in
Based in
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
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, HyosungHICO Breaker, LLC, to manufacture high-voltage circuit breakers inthe United States . The joint venture will operate from a refurbished facility at Quanta's subsidiary's manufacturing site inCanonsburg, 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 $1 billion $135 million $0.11 $0.44 - 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
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
NON-GAAP FINANCIAL MEASURES
The financial measures not prepared in conformity with generally accepted accounting principles in
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 investors@quantaservices.com.
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
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
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
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 | $ 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 | 82.0 % | 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 | 100.0 % | 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 % | 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 % | 5.9 % | $ 609,363 | 4.7 % | ||||||||
(a) Included in operating income for the Electric segment was equity in earnings of integral unconsolidated affiliates of |
(b) Included in corporate and non-allocated costs was, among other things, amortization expense of |
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 | ||||||||||||
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 | ||||||||||||
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 | ||||||||||||
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 | ||||||||||||
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 June 30, 2026 and 2025 | |||||||
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) | |||||||
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 | $ 1,053,549 | ||||||
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 |
(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) | |||||||
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 | $ 1,752,964 | $ 1,172,648 | ||||
See note to follow. |
(a) The amounts include |
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 |
(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 |
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 |
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SOURCE Quanta Services, Inc.