Quanta Services (NYSE:PWR) Issues Quarterly Earnings Results

Key Points

• Quanta Services reported record third-quarter results, with adjusted EPS of $6.06 beating estimates by $1.04 and revenue of $12.01 billion rising 57.4% year over year.
• Management raised its 2026 outlook, projecting revenue of $41.3 billion–$41.6 billion, adjusted EPS of $17.90–$18.30, and free cash flow of $2.5 billion–$3 billion.
• Backlog reached approximately $64 billion, reflecting strong demand across electric infrastructure and related markets, though management identified equipment supply—particularly transformers and breakers—as a potential growth constraint.

Quanta Services (NYSE:PWR - Get Free Report) released its quarterly earnings data on Thursday. The construction company reported $6.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.02 by $1.04, FiscalAI reports. Quanta Services had a return on equity of 20.55% and a net margin of 4.03%. The business had revenue of $12.01 billion for the quarter, compared to the consensus estimate of $11.03 billion. During the same quarter in the previous year, the company posted $3.33 EPS. The company's revenue was up 57.4% compared to the same quarter last year.

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

• Record third-quarter results substantially exceeded expectations: revenue rose 57% to $12 billion, adjusted EBITDA increased 69% to $1.4 billion, adjusted EPS climbed 82% to $6.06, and free cash flow reached a quarterly record of $1.2 billion.
• Quanta significantly raised its 2026 outlook, now forecasting $41.3 billion–$41.6 billion of revenue, $4.4 billion–$4.49 billion of adjusted EBITDA, $17.90–$18.30 of adjusted EPS, and $2.5 billion–$3 billion of free cash flow.
• Record backlog reached approximately $64 billion, up $10 billion sequentially, with broad-based growth across utility, renewable, generation, transmission, technology, and large-load markets. Management said demand visibility extends beyond 2030 and expects strong double-digit adjusted EPS growth again in 2027.
• Quanta strengthened its balance sheet and operating capacity, ending the quarter with $2.3 billion of cash, $5.2 billion of total liquidity, and a 1.3x leverage ratio. The company is also investing in training, fabrication, manufacturing, and supply-chain capabilities to address labor and equipment constraints.
• Management views supply-chain availability—particularly transformers, breakers, poles, and other OEM equipment—as a greater potential constraint than labor or demand. Quanta is mitigating the risk through supplier partnerships, acquisitions, and selective manufacturing investments, while acknowledging that growth depends partly on OEM capacity.

Quanta Services Trading Up 4.3%

Shares of PWR traded up $25.90 during midday trading on Thursday, hitting $632.79. The stock had a trading volume of 2,010,114 shares, compared to its average volume of 1,194,125. The stock's 50 day moving average is $633.61 and its 200 day moving average is $622.23. The firm has a market cap of $95.13 billion, a PE ratio of 72.48, a price-to-earnings-growth ratio of 1.79 and a beta of 1.27. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.10 and a quick ratio of 1.05. Quanta Services has a 1 year low of $408.36 and a 1 year high of $788.75.

Quanta Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Thursday, October 1st were paid a $0.11 dividend. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $0.44 annualized dividend and a dividend yield of 0.1%. Quanta Services's dividend payout ratio is currently 5.04%.

Wall Street Analyst Weigh In

PWR has been the topic of a number of recent research reports. UBS Group reaffirmed a "buy" rating on shares of Quanta Services in a research note on Monday, August 17th. Raymond James Financial set a $830.00 price objective on shares of Quanta Services in a research note on Thursday. JPMorgan Chase & Co. downgraded shares of Quanta Services from an "overweight" rating to a "neutral" rating and set a $714.00 target price on the stock. in a report on Tuesday, July 21st. Weiss Ratings upgraded shares of Quanta Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. Finally, Sanford C. Bernstein upgraded shares of Quanta Services from a "market perform" rating to an "outperform" rating and upped their target price for the company from $748.00 to $775.00 in a research report on Thursday, September 24th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $764.46.

More Quanta Services News

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

• Positive Sentiment: Record earnings beat expectations. Third-quarter adjusted EPS was $6.06 versus the $5.02 consensus estimate, while revenue reached a record $12.01 billion, well above estimates of $11.03 billion and 57.4% higher than a year earlier. GAAP EPS was $4.55, compared with $2.24 in the prior-year quarter. Quanta Services Reports Third Quarter 2026 Results
• Positive Sentiment: Management raised its full-year outlook. Quanta now expects 2026 revenue of approximately $41.3 billion to $41.6 billion and diluted EPS of $12.57 to $12.97, reflecting stronger operating performance and demand. PWR Q3 Earnings Beat on Electric Strength, 2026 View Raised
• Positive Sentiment: Visibility remains strong. Total backlog increased to $63.7 billion and remaining performance obligations reached $41.8 billion. Operating cash flow was $1.5 billion and free cash flow was $1.2 billion, supporting confidence in execution and cash generation. Quanta Services Delivers Record Q3 Results, Raises Outlook
• Neutral Sentiment: The company completed two acquisitions for roughly $245 million, potentially expanding capabilities but also adding integration demands and capital commitments. Management’s earnings call emphasized sustained electric-infrastructure demand as a primary growth driver. Quanta Services Q3 2026 Earnings Call Summary
• Negative Sentiment: At roughly 72 times earnings, the stock carries a demanding valuation, leaving less room for execution shortfalls. Separately, reported insider activity showed substantial selling and no insider purchases over the past six months, a potential sentiment overhang, though it does not change the quarter’s strong fundamentals. Quanta Services Posts Third-Quarter Results

Quanta Services Company Profile

Quanta Services, Inc is an infrastructure solutions provider headquartered in Houston, Texas. The company designs, installs, repairs, maintains and upgrades essential infrastructure for the electric power, communications, pipeline, industrial and energy industries.

Its services include electric transmission and distribution construction, substation and renewable-energy infrastructure, storm restoration, fiber-optic and wireless communications networks, natural gas and pipeline construction, and related engineering and maintenance work.

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