Quanta Services (NYSE:PWR) Announces Earnings Results, Beats Estimates By $0.93 EPS

Quanta Services (NYSE:PWR) announced its quarterly earnings data on Thursday. The construction company reported $4.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.31 by $0.93, FiscalAI reports. The firm had revenue of $9.56 billion for the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a net margin of 4.03% and a return on equity of 20.55%. The business’s revenue for the quarter was up 41.1% on a year-over-year basis. During the same period in the prior year, the company posted $2.48 earnings per share. Quanta Services updated its FY 2026 guidance to 16.450-16.950 EPS.

Here are the key takeaways from Quanta Services’ conference call:

• Second-quarter results materially exceeded expectations, with $9.6 billion in revenue, $4.24 in adjusted EPS, $1.1 billion in adjusted EBITDA, and strong cash flow. Record backlog reached $53 billion, reflecting broad-based organic growth across segments and end markets.
• Quanta significantly raised its 2026 outlook to $39.3 billion–$39.7 billion in revenue, $4.1 billion–$4.2 billion in adjusted EBITDA, $16.45–$16.95 in adjusted EPS, and $2.0 billion–$2.5 billion in free cash flow. Management cited strong first-half execution, improved visibility, and contributions from recent acquisitions.
• The company completed four acquisitions—Phalcon, Enerfab, Percheron, and PSD—for approximately $1.24 billion upfront, adding capabilities in fabrication, engineering, generation, technology, and utility infrastructure. Management expects these deals to contribute $1.2 billion–$1.4 billion of 2026 revenue and $120 million–$140 million of adjusted EBITDA.
• Management sees additional margin opportunity from improved work mix, self-perform capabilities, training efficiencies, and acquisition synergies, while free-cash-flow conversion could reach the high end of its 55%–60% target range. However, larger transmission and generation projects are expected to produce lumpier bookings and may not meaningfully enter the field until the second half of 2027.
• Quanta said technology and data-center work represents roughly 15%–20% of the business and that its backlog includes projects with the necessary early notices to proceed, limiting—but not eliminating—exposure to permitting or state-level data-center pauses. Management also identified generation capacity and utility interconnection queues as potential industry bottlenecks, rather than craft labor oversupply.

Quanta Services Trading Up 1.5%

Shares of PWR traded up $9.85 during mid-day trading on Friday, reaching $667.83. 1,958,675 shares of the company were exchanged, compared to its average volume of 1,061,414. The business has a 50 day simple moving average of $680.15 and a two-hundred day simple moving average of $612.22. Quanta Services has a 52 week low of $363.01 and a 52 week high of $788.75. The stock has a market capitalization of $100.21 billion, a PE ratio of 76.50, a PEG ratio of 2.59 and a beta of 1.21. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.09 and a current ratio of 1.10.

Quanta Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st were given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Wednesday, July 1st. Quanta Services’s payout ratio is 5.04%.

Insider Buying and Selling

In other Quanta Services news, CAO Paul Nobel sold 4,000 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $756.98, for a total transaction of $3,027,920.00. Following the completion of the sale, the chief accounting officer directly owned 8,080 shares in the company, valued at approximately $6,116,398.40. This trade represents a 33.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Earl C. Jr. Austin sold 130,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $770.65, for a total value of $100,184,500.00. Following the sale, the chief executive officer directly owned 556,911 shares of the company’s stock, valued at $429,183,462.15. This represents a 18.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 159,992 shares of company stock worth $123,244,714 in the last 90 days. Corporate insiders own 0.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Darwin Wealth Management LLC acquired a new position in shares of Quanta Services during the second quarter valued at about $26,000. Meeder Asset Management Inc. raised its stake in Quanta Services by 221.7% during the 4th quarter. Meeder Asset Management Inc. now owns 74 shares of the construction company’s stock worth $31,000 after buying an additional 51 shares during the period. Quarry LP acquired a new stake in Quanta Services in the fourth quarter valued at approximately $40,000. Kemnay Advisory Services Inc. bought a new stake in shares of Quanta Services during the fourth quarter valued at approximately $44,000. Finally, JPL Wealth Management LLC acquired a new stake in Quanta Services in the 3rd quarter valued at $49,000. Institutional investors and hedge funds own 90.49% of the company’s stock.

Quanta Services News Summary

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

• Positive Sentiment: Q2 earnings and revenue beat estimates. Quanta reported adjusted diluted EPS of $4.24, versus consensus estimates near $3.30, while revenue reached $9.56 billion compared with expectations of approximately $8.6 billion. Revenue increased 41.1% from the prior year, and adjusted EBITDA rose to $1.1 billion. Quanta Services Reports Second Quarter 2026 Results
• Positive Sentiment: Record backlog supports future growth. Total backlog reached $53.4 billion, including $33.6 billion in remaining performance obligations. Management cited broad infrastructure demand, electric-sector strength and acquisitions as key growth drivers. Operating cash flow was a record $1.1 billion, with free cash flow of $0.9 billion. Quanta Services Q2 Earnings Call Highlights Growth and Backlog Strength
• Positive Sentiment: Quanta raised its 2026 financial expectations across metrics. The company now projects revenue of $39.3 billion to $39.7 billion and adjusted EPS of $16.45 to $16.95, both well above prior consensus expectations. The higher outlook signals management’s confidence that strong demand and execution will continue. Quanta Projects 2026 Revenue as Record Backlog Supports Raised Outlook
• Positive Sentiment: Guggenheim upgraded PWR to “buy” from “neutral” and assigned an $800 price target. The upgrade adds further positive momentum following the earnings report and reflects greater confidence in Quanta’s growth outlook. The Fly Analyst Update
• Negative Sentiment: Valuation remains elevated. With a reported price-to-earnings ratio above 90, PWR’s stock price already reflects substantial growth expectations. Any slowdown in infrastructure demand, execution problems or disappointment with future guidance could increase volatility.

Quanta Services announced that its Board of Directors has authorized a stock repurchase plan on Friday, May 22nd that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the construction company to buy up to 0.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have commented on PWR. Deutsche Bank Aktiengesellschaft downgraded shares of Quanta Services to a “sell” rating in a research report on Friday. Weiss Ratings cut Quanta Services from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, July 20th. UBS Group began coverage on shares of Quanta Services in a report on Friday. They issued a “buy” rating for the company. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $714.00 price objective on shares of Quanta Services in a research report on Tuesday, July 21st. Finally, Cantor Fitzgerald initiated coverage on shares of Quanta Services in a research note on Friday. They set an “outperform” rating on the stock. Nineteen research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $752.78.

Quanta Services Company Profile

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

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