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

Quanta Services (NYSE:PWR) issued its earnings results on Thursday. The construction company reported $4.24 earnings per share for the quarter, topping the consensus estimate of $3.31 by $0.93, FiscalAI reports. The company had revenue of $9.56 billion during the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a net margin of 3.67% and a return on equity of 18.64%. Quanta Services’s quarterly revenue was up 41.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.48 EPS. 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 on Thursday, hitting $659.11. The company had a trading volume of 3,013,531 shares, compared to its average volume of 974,374. The business’s fifty day simple moving average is $681.24 and its 200 day simple moving average is $611.83. 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 12-month low of $363.01 and a 12-month high of $788.75. The company has a market cap of $98.91 billion, a PE ratio of 90.41, a PEG ratio of 2.21 and a beta of 1.21.

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 issued a $0.11 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. Quanta Services’s dividend payout ratio (DPR) is presently 6.04%.

Quanta Services declared that its board has approved a stock buyback program 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 stock through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other Quanta Services news, CEO Earl C. Jr. Austin sold 130,000 shares of Quanta Services stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $770.65, for a total transaction of $100,184,500.00. Following the completion of the transaction, the chief executive officer directly owned 556,911 shares of the company’s stock, valued at $429,183,462.15. The trade was a 18.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Paul Nobel sold 4,000 shares of the stock in a transaction on Monday, May 4th. The shares were 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 represents a 33.11% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 159,992 shares of company stock valued at $123,244,714. Company insiders own 0.60% of the company’s stock.

Institutional Trading of Quanta Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC purchased a new stake in shares of Quanta Services in the fourth quarter worth approximately $298,000. DRW Securities LLC bought a new position in Quanta Services in the 4th quarter valued at $218,000. Seven Mile Advisory purchased a new stake in Quanta Services in the third quarter worth $206,000. StoneX Group Inc. bought a new stake in shares of Quanta Services during the second quarter worth $204,000. Finally, Fayez Sarofim & Co purchased a new stake in shares of Quanta Services during the fourth quarter valued at $203,000. 90.49% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

PWR has been the subject of a number of recent analyst reports. Sanford C. Bernstein upped their price objective on Quanta Services from $538.00 to $725.00 and gave the stock a “market perform” rating in a research note on Tuesday, May 5th. BNP Paribas Exane assumed coverage on Quanta Services in a report on Tuesday, April 14th. They issued a “neutral” rating on the stock. Stifel Nicolaus set a $784.00 price target on Quanta Services in a research note on Friday, May 1st. Cantor Fitzgerald lifted their price objective on shares of Quanta Services from $630.00 to $901.00 and gave the company an “overweight” rating in a research report on Monday, May 11th. Finally, Roth Capital boosted their target price on shares of Quanta Services from $600.00 to $650.00 and gave the stock a “buy” rating in a report on Monday, April 6th. Seventeen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $745.55.

Key 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.

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.