Quanta Services — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 consolidated revenues were $12.01 billion, compared to $7.63 billion in the third quarter of 2025.
• Net income attributable to common stock for the third quarter was $694.9 million, compared to $339.4 million in the prior year period.
• GAAP diluted earnings per share (EPS) for the third quarter was $4.55, compared to $2.24 in the third quarter of 2025.
• Adjusted diluted EPS for the third quarter was $6.06, compared to $3.33 in the third quarter of 2025.
• Adjusted EBITDA for the third quarter was $1.4 billion.
• Cash flow from operations for the third quarter was $1.5 billion, with free cash flow of $1.2 billion.
• For the nine months ended September 30, 2026, revenues were $29.45 billion compared to $20.64 billion in the same period in 2025.
• Net income attributable to common stock for the nine months ended September 30, 2026, was $1.37 billion, compared to $712.9 million in 2025.
• Adjusted diluted EPS for the nine months ended September 30, 2026, was $12.98, compared to $7.59 in 2025.
• Remaining performance obligations (RPO) were $41.8 billion, and total backlog was $63.7 billion as of September 30, 2026.
• Cash and cash equivalents increased to $2.32 billion as of September 30, 2026, from $440 million as of December 31, 2025.
• Total assets were $32.75 billion as of September 30, 2026, compared to $24.93 billion as of December 31, 2025.
• Long-term debt, net of current maturities, was $6.35 billion as of September 30, 2026, compared to $5.23 billion as of December 31, 2025.

Guidance and Future Outlook:

• For the full year 2026, Quanta now expects revenues to range between $41.3 billion and $41.6 billion.
• Full-year 2026 net income attributable to common stock is expected to range between $1.92 billion and $1.98 billion.
• Full-year 2026 diluted EPS is expected to range between $12.57 and $12.97.
• Full-year 2026 adjusted diluted EPS is expected to range between $17.90 and $18.30.
• Full-year 2026 EBITDA is expected to range between $3.99 billion and $4.09 billion.
• Full-year 2026 adjusted EBITDA is expected to range between $4.40 billion and $4.49 billion.
• Full-year 2026 net cash provided by operating activities is expected to range between $3.45 billion and $4.00 billion.
• Full-year 2026 free cash flow is expected to range between $2.50 billion and $3.00 billion.
• Management anticipates strong double-digit adjusted EPS growth in 2027, supported by continued backlog growth.
• The company is pacing ahead of multi-year growth targets outlined at its 2026 Investor Day.

Business Segments and Product Lines:

• Electric Segment: Generated $9.80 billion in revenue for the third quarter of 2026 (81.6% of total), compared to $6.17 billion in 2025. Operating margin was 12.6% in Q3 2026 versus 11.4% in Q3 2025.
• Underground and Infrastructure Segment: Generated $2.22 billion in revenue for the third quarter of 2026 (18.4% of total), compared to $1.46 billion in 2025. Operating margin was 9.4% in Q3 2026 versus 8.4% in Q3 2025.
• Corporate and Non-Allocated Costs: Recorded operating losses of $419.5 million in Q3 2026 (3.5% of revenue) compared to $308.8 million in Q3 2025 (4.0% of revenue).
• The Electric segment backlog totaled $51.9 billion as of September 30, 2026, with $31.1 billion expected to be realized within 12 months.
• The Underground and Infrastructure segment backlog totaled $11.8 billion as of September 30, 2026, with $7.3 billion expected to be realized within 12 months.

Market and Competitive Landscape:

• Demand for services is broadening across utility, power generation, industrial, and technology customers.
• The company's fungible skilled workforce across multiple end markets provides a competitive advantage, allowing strategic resource deployment to mitigate exposure to individual market cycles.
• The company operates in the utility, power generation, load center, communications, pipeline, and energy industries with operations in the United States, Canada, Australia, and select international markets.

Risks and Challenges:

• Weather, regulatory, permitting, and supply chain challenges can impact project timing and execution.
• Future uncertainty regarding the domestic and global economy, including inflation, interest rates, and potential recessionary conditions, may affect results.
• Risks include potential project cancellations, delays, or reductions in scope due to commercial issues, permitting, natural disasters, or adverse weather.
• The company faces risks related to the availability and cost of skilled labor, materials, and equipment.
• Operational hazards such as wildfires and explosions, as well as cybersecurity breaches and environmental matters, pose potential liabilities.
• Dependence on fixed-price contracts carries the risk of incurring losses if costs exceed estimates.

Management Commentary and Tone:

• Duke Austin, President and CEO, stated the company delivered an "exceptional quarter" with results exceeding expectations.
• Management highlighted that revenue, adjusted EBITDA, and adjusted diluted EPS achieved strong double-digit growth.
• Austin noted the "execution certainty" provided by self-perform capabilities and the power of the solutions-based operating model.
• Management expressed strengthening conviction in the ability to compound profitable growth over the long term.
• The tone indicates confidence in the backlog and the ability to deliver strong growth in 2027.

Other Key Points:

• Acquisitions: Quanta completed five acquisitions in the first nine months of 2026 and eight in the full year 2025. In September and October 2026, the company completed two additional acquisitions: a Houston-based energy services provider (approx. 320 employees) and a Fort Worth-based manufacturer of steel monopoles (approx. 270 employees), with aggregate consideration of approximately $245 million ($96 million cash, $149 million stock).
• Liquidity Enhancements: In August 2026, Quanta issued $2.00 billion in senior notes. In July 2026, the revolving credit facility commitments were increased to $2.98 billion with maturity extended to July 31, 2031. The commercial paper program limit was increased to $2.98 billion. On September 1, 2026, the company prepaid the full $618.8 million outstanding balance of its term loan.
• Board Appointment: Ellen Rubin joined the Board of Directors in September 2026, bringing expertise in AI, cloud computing, and cybersecurity.
• Sustainability: The company published its 2025 Sustainability Report in September 2026.
• Acquisition Costs: Acquisition and integration costs for the nine months ended September 30, 2026, were $74.5 million.