Quanta Services NYSE: PWR opened 2026 with what management characterized as a strong first quarter, citing double-digit growth in revenue, adjusted EBITDA, and adjusted earnings per share, alongside record backlog and a higher full-year outlook.
First-quarter results and raised 2026 outlook
Chief Financial Officer Jayshree Desai reported first-quarter revenue of $7.9 billion, net income attributable to common stock of $221 million (or $1.45 per diluted share), adjusted EPS of $2.68, and adjusted EBITDA of $686 million. Desai said Quanta ended the quarter with record backlog of $48.5 billion.
“Based on the continued momentum evidenced by our record $48.5 billion of backlog, the strong performance during the quarter, and improved visibility into the remainder of the year, we are raising our full year financial expectations,” Desai said.
The company increased its full-year expectations to:
- Revenue: $34.7 billion to $35.2 billion
- Adjusted EBITDA: $3.49 billion to $3.65 billion
- Adjusted EPS: $13.55 to $14.25
Desai also reiterated Quanta’s capital structure approach over its multi-year plan, saying the company remains committed to maintaining an investment-grade balance sheet and an acquisition strategy “governed by our target leverage profile of 1.5-2 times, and the returns that we would otherwise generate by repurchasing our stock.”
“Certainty” and Quanta’s strategy
President and CEO Duke Austin framed the quarter within the company’s Investor Day messaging, emphasizing “certainty” as a key differentiator. Austin said that across utility and technology customers, the need is for “execution certainty, labor certainty, supply chain certainty, schedule certainty.”
Austin said Quanta’s integrated solutions model, craft workforce, and supply chain investments have positioned it to help customers plan and execute multi-year capital programs. “We are in the rooms where customers are planning their entire multi-year capital spend,” he said, adding that Quanta is negotiating more work directly and becoming more embedded in customer planning processes.
Supply chain and off-site investments
Austin reiterated a previously announced plan to invest $500 million to $700 million over the next several years in power transformer manufacturing facilities and a vertical supply chain strategy, which he said will double power transformer manufacturing capacity.
He also said the company is “nearly doubling” its off-site manufacturing, fabrication, and logistics footprint over the next several years to roughly 6.7 million square feet of facilities as part of its integrated fabrication and supply chain solutions, noting demand tied in particular to data centers.
In response to questions about off-site construction, Austin described the strategy as a “labor force multiplier,” aimed at helping address labor constraints and supporting “programmatic spend” rather than “large chunky projects.”
Margins, backlog, and project mix
On profitability, Austin told Evercore ISI’s Nick Amicucci that underground and infrastructure execution contributed to earnings improvement, and that the company has “the ability to operate in double digits” in that area. He added that incremental margin improvement is expected in the electric segment as well.
Multiple analysts asked about the drivers of backlog growth and whether it was tied to large load awards. Austin pushed back on the idea that one category dominated, describing backlog as “largely across all segments, all disciplines,” including transmission, power and distribution, and load-related work. “There was no, like, something that stood out to say, ‘Oh, this is a large project,’” he said, while adding he expects backlog to continue rising.
On transmission, Austin highlighted work related to 765 kV projects, saying a first meaningful 765 award in the quarter represented “less than 25%” of the backlog increase and was structured as an MSA. He pointed to Quanta’s vertical supply chain investments and equipment spending as support for this buildout and said the company is “very early” in what it expects to be an expanding opportunity with American Electric Power.
Large load, generation, and data center opportunities
Austin addressed growing interest in “bridge power” solutions for data centers and other large loads, saying most customers ultimately intend to connect to the grid. While bridge power is an opportunity and Quanta is involved with solutions such as Bloom, he said operating large-scale microgrids is difficult and that “utilities are very good at it.”
On longer-duration demand, Austin said Quanta is looking at work beyond 2030 and expects an “elongated cycle.” He cited timelines for combined-cycle gas turbines (CCGTs), noting that if orders are being placed into 2030 and it takes several years to build, that implies activity extending into the early-to-mid 2030s. “I just see more demand, more demand and generation and the electrification of the world,” he said.
Asked about Quanta’s participation in gas generation, Austin said the company is focused on the market but will be “prudent” about risk, particularly on combined-cycle work, while expressing comfort with “single cycles.” He described inbound interest as “daily” but emphasized the need for contract structures that work for Quanta, customers, and ratepayers.
On NiSource-related opportunities in the Midwest, Austin said the company continues to expand its opportunity set and remains “right in the middle” of the programmatic spend being announced. However, he noted that “none of the CGT or even any of the generation for the most part that’s been announced is not in our backlog,” citing permitting steps such as air permits as a gating item. He said those awards could begin to flow into backlog “probably the later half of the year and beyond.”
Regarding technology and load center growth, Austin said a slide referenced by an analyst was “directional,” but he acknowledged fast growth and said Quanta is “leaning into it.” He noted the company has made acquisitions tied to the market and said the business has scaled quickly, adding, “We’ve only been doing this, like, a year and a half.”
On the prospect of doing full turnkey data center builds, Austin said Quanta’s current “sweet spot” is MEP work and high-voltage interconnections, though it is already doing some balance-of-plant work. If customers push for broader scope, he said Quanta can execute organically, but scaling would require additional resources.
On capital deployment, Austin said Quanta expects to pursue acquisitions and clarified that no M&A was included in the company’s current guidance. “We made no acquisitions in the first quarter, and that’s what the guidance is,” he said, adding that any acquisitions completed in the coming quarters would be added to guidance.
Desai addressed free cash flow guidance, which remained unchanged from the company’s prior range. She said there was “nothing to read into that,” citing the early point in the year, while adding she has “greater confidence about being at the higher end” of the prior range and that the company will update investors as the year progresses.
In closing remarks, Austin thanked field employees, saying, “They’re the very best in the world. They make these numbers, and they are the ones that deserve the credit.”
About Quanta Services NYSE: PWR
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.
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