Quanta Services (NYSE:PWR) Issues Earnings Results

Quanta Services (NYSE:PWR) issued its quarterly earnings data on Thursday. The construction company reported $4.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.31 by $0.93, FiscalAI reports. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The business had revenue of $9.56 billion for the quarter, compared to analysts’ expectations of $8.61 billion. During the same period in the prior year, the firm earned $2.48 EPS. The company’s revenue for the quarter was up 41.1% on a year-over-year basis. 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 17.5%

PWR traded up $97.97 during trading hours on Thursday, reaching $659.11. 3,013,531 shares of the company’s stock traded hands, compared to its average volume of 974,374. The firm has a 50-day moving average price of $681.24 and a 200 day moving average price of $611.83. The firm has a market capitalization of $98.91 billion, a PE ratio of 90.41, a PEG ratio of 2.21 and a beta of 1.21. The company has a quick ratio of 1.09, a current ratio of 1.14 and a debt-to-equity ratio of 0.57. Quanta Services has a 52-week low of $363.01 and a 52-week high of $788.75.

Quanta Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, July 13th. Investors of record on Wednesday, July 1st were paid a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend was Wednesday, July 1st. Quanta Services’s dividend payout ratio (DPR) is currently 6.04%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on PWR. The Goldman Sachs Group boosted their target price on shares of Quanta Services from $685.00 to $826.00 and gave the stock a “buy” rating in a report on Monday, May 4th. Stifel Nicolaus set a $784.00 price objective on Quanta Services in a research note on Friday, May 1st. Zacks Research cut Quanta Services from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Cantor Fitzgerald increased their price target on Quanta Services from $630.00 to $901.00 and gave the company an “overweight” rating in a report on Monday, May 11th. Finally, BNP Paribas Exane assumed coverage on Quanta Services in a research report on Tuesday, April 14th. They issued a “neutral” rating for the company. Seventeen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Quanta Services has an average rating of “Moderate Buy” and an average target price of $745.55.

More Quanta Services News

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

• Positive Sentiment: Q2 results significantly beat expectations. Quanta reported $9.56 billion in revenue, up 41.1% year over year, versus the $8.61 billion consensus estimate. Adjusted diluted EPS was $4.24, well above estimates near $3.30 and up from $2.48 a year earlier. Quanta Services Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 guidance across key metrics. The company now expects adjusted EPS of $16.45-$16.95 and revenue of $39.3-$39.7 billion, above consensus forecasts of approximately $13.78 EPS and $35.0 billion in revenue. Quanta Projects 2026 Revenue as Backlog Supports Raised Outlook
• Positive Sentiment: Record backlog improves revenue visibility. Total backlog reached $53.4 billion, including $33.6 billion of remaining performance obligations, supporting management’s more confident outlook and signaling sustained demand for power and infrastructure projects.
• Positive Sentiment: Cash generation was robust. Quanta produced $1.1 billion in operating cash flow and $0.9 billion in free cash flow during the quarter, while adjusted EBITDA reached $1.1 billion. These results provide additional financial flexibility to fund growth and capital returns. Quanta Services Posts Record Q2 Results and Boosts Outlook
• Neutral Sentiment: Valuation remains demanding. Following the rally, PWR trades at roughly 90 times earnings based on the provided data, leaving the stock sensitive to any slowdown in backlog conversion, project execution, or future guidance.

Quanta Services announced that its Board of Directors has initiated a share buyback program on Friday, May 22nd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the construction company to repurchase up to 0.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Quanta Services

In related news, CAO Paul Nobel sold 4,000 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $756.98, for a total value of $3,027,920.00. Following the transaction, the chief accounting officer owned 8,080 shares of the company’s stock, valued at $6,116,398.40. This trade represents a 33.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Earl C. Jr. Austin sold 25,992 shares of Quanta Services stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $770.71, for a total transaction of $20,032,294.32. Following the sale, the chief executive officer owned 16,508 shares of the company’s stock, valued at $12,722,880.68. The trade was a 61.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 159,992 shares of company stock valued at $123,244,714. Corporate insiders own 0.60% of the company’s stock.

Institutional Trading of Quanta Services

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

About Quanta Services

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.