Quanta Services, Inc. (PWR)

Quanta Services reported third-quarter 2026 revenue of $12.01 billion on 29 October, up from $7.63 billion a year earlier 1.

Net income attributable to common stock was $694.9 million, or $4.55 per diluted share, against $339.4 million, or $2.24 a share, a year before 1.

Backlog, the company's measure of signed and expected work, reached a record $63.7 billion on 30 September, and $41.8 billion of it is firm orders 1.

The 10-Q credits the growth to increased demand for services and to bought companies, about $1.22 billion of Electric revenue and about $335 million of Underground and Infrastructure revenue 2.

Quanta says its utility customers are asking for more because of rising electricity demand tied to, among other things, data centers 2.

Chief executive Duke Austin said the company is "again significantly increasing our full-year 2026 financial expectations across all metrics" 1.

The open question is how long data center demand lasts, and asked about reports of slipping projects, Austin said "If something was to slow, I'm not concerned at this point" 4.

Quanta was organized as a Delaware corporation in 1997, and grew by building its own crews and by buying companies that widened its map and its range of services 7.

On 30 August 2007 it bought InfraSource Services, which like Quanta designed and built work for electric utilities, gas utilities and telecommunication customers 7.

The biggest single bet of recent years began in October 2021, when Quanta bought Blattner and took on about $2.30 billion of debt to finish the deal 5.

Revenue climbed from $12.98 billion in 2021 to $17.07 billion in 2022, up 31.5 percent, and about $1.51 billion of the gain came from acquired businesses, mainly Blattner 5.

In 2023 revenue rose 22.3 percent to $20.88 billion, and in its electric power segment the gain came from more spending by utility customers plus about $270 million from acquired businesses 6.

Revenue grew 13.4 percent to $23.67 billion in 2024, and about $1.54 billion of the electric gain came from acquired businesses, plus rising demand for generation and transmission work 3.

The year's largest purchase closed on 17 July 2024: Cupertino Electric, a builder of electrical systems for technology customers, for about $2.04 billion 3.

The gas and pipeline side went the other way in 2024, with lower revenue from large pipeline projects 3.

In 2025 revenue reached $28.48 billion, up 20.3 percent, helped by about $1.87 billion from acquired businesses in Electric and about $925 million in Underground and Infrastructure, less lower large Canadian pipeline work 3.

On 25 July 2025 Quanta closed the Dynamic Systems purchase, paying about $1.27 billion in cash and 518,772 shares for a maker of mechanical and plumbing systems 2.

In early 2025 Quanta also folded its electric power and renewable energy segments into one, Electric, leaving two reportable segments 3.

Blattner was the main use of cash that year: in 2021 Quanta put $2.45 billion into acquisitions, most of it for Blattner 5.

Underground and Infrastructure operating income fell to $265.0 million in 2024 from $378.0 million the year before, on lower revenue and an $11.9 million loss on selling a non-core business 3.

Operating income was $1.61 billion in 2025, a 5.7 percent share of revenue, the same share as in 2024 3.

In the first nine months of 2026 revenue was $29.45 billion against $20.64 billion, and Quanta finished five acquisitions in that time after eight in 2025 1.

Electric: grids, power plants and data center wiring

Electric is the larger segment: it builds and maintains power lines and substations for utilities, builds wind, solar and battery plants, and wires large buildings such as data centers 3.

Its third-quarter 2026 revenue was $9.80 billion against $6.17 billion a year earlier, and its operating margin, operating income as a share of revenue, was 12.6 percent against 11.4 percent 1.

The 10-Q says the margin rose on higher revenue and improved execution across electric and power generation services 2.

On the call, Austin described the utility business as "$20 billion or so of the electric segment" earning margins of "10% to 12%" 4.

Underground and Infrastructure

This segment does gas utility work, pipeline protection and repair, refinery and plant turnaround service, site clearing, and mechanical and plumbing systems for large facilities such as chip plants 3.

Its third-quarter revenue was $2.22 billion against $1.46 billion, and its operating margin was 9.4 percent against 8.4 percent 1.

The 10-Q says revenue from large pipeline projects has fluctuated in recent years, and that about $335 million of the quarter's gain came from acquired businesses 2.

Backlog and customers

Backlog was $63.7 billion on 30 September 2026, against $44.0 billion on 31 December 2025 and $39.2 billion on 30 September 2025 1.

About $21.98 billion of the total is estimated orders under master service agreements, deals in which customers are not committed to specific volumes of services 13.

In 2025 the largest customer was 8 percent of revenue and the ten largest were 30 percent, and the customers named include American Electric Power, Duke Energy, NextEra Energy, National Grid and PG&E 3.

People, equipment and training

Quanta had about 69,500 employees at 31 December 2025, and 36 percent of them were covered by collective bargaining agreements 3.

On the October call Austin put the headcount at about 95,000 and said the company grew by 26,000 people this year 4.

Duke Austin is president and chief executive, and Jayshree Desai is chief financial officer 1.

The company owned and leased a fleet of about 80,000 units at the end of 2025, including a large fleet of aircraft, mostly helicopters 3.

Training happens at the Quanta Advanced Training Center in La Grange, Texas, and at Northwest Lineman College, which has campuses in California, Florida, Idaho and Texas 3.

Rivals

Management measures itself against a peer group that includes AECOM, Dycom, EMCOR, Fluor, Jacobs, KBR, MasTec, MYR Group and Primoris 3.

The 10-K says some competitors are large, barriers to entry are low in some of its industries, and utilities' own in-house crews do some of the same work 3.

Problems and risks

Austin said Quanta's growth depends on equipment makers: "our growth will be dependent on the OEMs", with poles, wire and transformers the short items 4.

The 10-K names the Puerto Rico joint venture LUMA among the high-profile projects whose failure or bad publicity could hurt the business 3.

It also says lawsuits and claims arise in the ordinary course of business, and none is singled out as material in Item 3 3.

The umbrella, in words

Quanta works through many operating companies that keep their own names, and Exhibit 21 to the 10-K lists subsidiaries including Blattner Energy, Cupertino Electric, Dynamic Systems (DSI) and Northwest Lineman College 9.

The list is not complete, because the exhibit says some small subsidiaries are omitted 9.

Cupertino Electric supplies electrical engineering, project management, construction and modularization services to technology, renewable energy and commercial customers, and Dynamic Systems does turnkey mechanical, plumbing and process work 32.

Quanta owns a 50 percent equity interest in LUMA Energy, a joint venture chosen to operate, maintain and modernize the roughly 18,000-mile electric transmission and distribution system in Puerto Rico 3.

Quanta owned 123 facilities at the end of 2025, including its Houston headquarters and transformer plants in Canonsburg, Pennsylvania, Raeford, North Carolina, and Erie County, New York 3.

The proxy statement lists three holders of more than 5 percent as of 26 March 2026: Vanguard at 12.1 percent, BlackRock at 7.4 percent and JPMorgan Chase at 5.1 percent 8.

For the year ending 31 December 2026, Quanta now expects revenue of $41.3 billion to $41.6 billion and net income attributable to common stock of $1.92 billion to $1.98 billion 1.

It expects adjusted earnings per share of $17.90 to $18.30 and adjusted EBITDA, earnings before interest, taxes, depreciation and amortization with some items set aside, of $4.40 billion to $4.49 billion 1.

It expects cash from operations of $3.45 billion to $4.00 billion and free cash flow, cash left after capital spending, of $2.50 billion to $3.00 billion 1.

Chief financial officer Jayshree Desai said revenue expectations are up about $1.9 billion at the midpoint from the prior outlook 4.

Austin said in the release, "We believe there is opportunity to deliver strong double-digit adjusted EPS growth in 2027, supported by continued backlog growth" 1.

The company also said it is pacing ahead of the multi-year growth targets it set at its 2026 Investor Day 1.

On very high voltage lines, Austin said Quanta would "be on 765 in '27 for sure" and expects "really good bookings" in the "first half of '27", with Texas and Ohio likely first 4.

The two acquisitions completed in September and October 2026, for about $245 million net of cash acquired, are not expected to add materially to 2026 results, the company said 1.

An analyst recalled that management had mentioned $500 million to $700 million of extra manufacturing spending over a few years, and Austin said manufacturing will not be huge 4.

The 10-K says Quanta has declared a quarterly dividend each quarter since the fourth quarter of 2018 and expects comparable cash dividends to continue 3.

Desai said Quanta ended the quarter with total liquidity of $5.2 billion and a bank-defined leverage ratio of about 1.3 times, after issuing $2.00 billion of senior notes in August 2026 41.