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PWR Q2 Earnings Beat on Electric Strength, 2026 View Raised, Stock Up
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Key Takeaways
PWR beat Q2 estimates as revenues rose 41.1% and adjusted EPS jumped 71% year over year.
Electric revenues climbed 43.6%, while strong execution helped expand the segment margin to 11.5%.
Record backlog of $53.4B and robust cash flow supported higher 2026 revenues and adjusted EPS forecasts.
Quanta Services, Inc. (PWR - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Quanta’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.
Shares of this leading provider of specialty contracting and infrastructure solutions gained more than 14% following its earnings release.
Quanta’s Earnings & Revenue Discussion
The company reported adjusted earnings of $4.24 per share for the second quarter of 2026, up 71% year over year. The figure beat the Zacks Consensus Estimate of $3.29 by 28.9%.
Revenues increased 41.1% year over year to $9.56 billion and surpassed the consensus mark of $8.53 billion by 12.1%. Strong Electric segment execution supported the results, while total backlog reached a record $53.4 billion.
Organic revenues grew 27.4% year over year as demand remained strong across Quanta’s infrastructure markets. Adjusted EBITDA advanced 59.5% year over year to $1.07 billion from $668.8 million in the prior-year quarter.
GAAP earnings were $2.96 per share, up 94.7% from $1.52. Net income attributable to common stock increased 96.9% year over year to $451.4 million, reflecting higher activity and stronger operating performance across the portfolio.
Quanta Services, Inc. Price, Consensus and EPS Surprise
Electric Infrastructure Solutions (which accounted for 82% of second-quarter revenues) revenues climbed 43.6% year over year to $7.84 billion. Organic revenues increased approximately 33%, while acquired businesses contributed about $575 million. Growth reflected continued demand for grid, generation, technology and load center solutions.
Electric operating income increased 62.5% year over year to $898.2 million. The segment’s margin expanded to 11.5% from 10.1%, supported by increased project scope, self-performed solutions, efficient resource utilization and solid execution.
Underground Utility and Infrastructure Solutions (18% of quarterly revenues) revenues rose 30.7% year over year to $1.72 billion. Organic revenues grew 4% year over year, and businesses acquired during the past 12 months contributed roughly $355 million.
The segment’s operating income advanced 71.7% year over year to $155.8 million. Operating margin improved to 9.1% from 6.9%, primarily reflecting strong performance from Quanta’s civil and mechanical operations.
PWR Delivers Meaningful Margin Expansion
Consolidated operating income increased 87.6% to $694.8 million from $370.3 million in the year-ago quarter. Operating margin widened to 7.3% from 5.5%, as the improvement in both operating segments more than offset higher corporate expenses.
Corporate and non-allocated costs increased to $359.2 million from $273.0 million. These costs included amortization expense of $157.0 million compared with $113.2 million a year earlier and non-cash stock-based compensation of $63.4 million compared with $44.1 million in the prior year.
Quanta's Record Backlog Supports Visibility
Electric backlog reached a record $43.8 billion at quarter-end, driven primarily by additional awards and higher volumes with existing customers. The total included approximately $2.4 billion related to acquisitions completed during the second quarter.
Underground and Infrastructure backlog rose to a record $9.7 billion, aided by strong bookings in mechanical and Canadian pipeline operations. Consolidated 12-month backlog was also a record at $32.3 billion. Remaining performance obligations totaled $33.6 billion.
PWR Generates Robust Cash Flow
Cash provided by operating activities totaled $1.10 billion compared with $295.7 million a year earlier. Free cash flow improved to $886.0 million from $170.4 million, supported by favorable working-capital performance across Quanta’s portfolio.
The debt-to-EBITDA ratio under the company’s senior credit agreement improved to 1.72X from 1.95X at 2025-end. Quanta ended the June quarter with approximately $2.8 billion of liquidity, even after deploying capital toward acquisitions offering high-return growth opportunities.
Quanta Raises Its 2026 Outlook
Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion.
Electric segment revenues are projected to be in the range of $31.7-$31.9 billion, with an operating margin of 10.5%-10.75%. Underground and Infrastructure revenues are expected to be between $7.60 billion and $7.80 billion, with an operating margin of 8.75%-9.0%. Free cash flow is forecasted to be in the $2.00-$2.50 billion range.
Orion Group Holdings, Inc. (ORN - Free Report) reported weaker-than-expected second-quarter 2026 results, with adjusted EPS and revenues missing the Zacks Consensus Estimate. Revenues increased 8% year over year, driven by strong growth in the Concrete segment, supported by higher project volumes, new contract awards, expansion of site civil services and solid project execution. However, these gains were more than offset by weakness in the Marine business, where lower project volumes, along with higher selling, general and administrative expenses to support growth initiatives, pressured margins and reduced adjusted EBITDA, weighing on overall earnings.
Despite the softer quarter, Orion reaffirmed its full-year revenue guidance of $900-$950 million, implying approximately 9% growth at the midpoint. However, the company lowered its adjusted EBITDA outlook to $50-$54 million from the prior $54-$58 million range and reduced its adjusted earnings guidance to 23-30 cents per share from the earlier forecast of 36-42 cents.
United Rentals, Inc. (URI - Free Report) reported solid second-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. Record rental revenues, higher fleet productivity and robust specialty demand supported the results. Fleet productivity improved 3.4% year over year.
United Rentals’ management raised its 2026 revenue outlook to $17.5-$17.8 billion from $16.9-$17.4 billion. The adjusted EBITDA forecast increased to $7.98-$8.13 billion from $7.63-$7.88 billion.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive second-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected continued strength across its end markets, robust execution by the operating teams and sustained demand that drove record backlog growth, reinforcing the company’s confidence in the business momentum.
Comfort Systems’ backlog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period.
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PWR Q2 Earnings Beat on Electric Strength, 2026 View Raised, Stock Up
Key Takeaways
Quanta Services, Inc. (PWR - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Quanta’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.
Shares of this leading provider of specialty contracting and infrastructure solutions gained more than 14% following its earnings release.
Quanta’s Earnings & Revenue Discussion
The company reported adjusted earnings of $4.24 per share for the second quarter of 2026, up 71% year over year. The figure beat the Zacks Consensus Estimate of $3.29 by 28.9%.
Revenues increased 41.1% year over year to $9.56 billion and surpassed the consensus mark of $8.53 billion by 12.1%. Strong Electric segment execution supported the results, while total backlog reached a record $53.4 billion.
Organic revenues grew 27.4% year over year as demand remained strong across Quanta’s infrastructure markets. Adjusted EBITDA advanced 59.5% year over year to $1.07 billion from $668.8 million in the prior-year quarter.
GAAP earnings were $2.96 per share, up 94.7% from $1.52. Net income attributable to common stock increased 96.9% year over year to $451.4 million, reflecting higher activity and stronger operating performance across the portfolio.
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta Services, Inc. price-consensus-eps-surprise-chart | Quanta Services, Inc. Quote
Quanta's Segmental Performance Shows Broad Strength
Electric Infrastructure Solutions (which accounted for 82% of second-quarter revenues) revenues climbed 43.6% year over year to $7.84 billion. Organic revenues increased approximately 33%, while acquired businesses contributed about $575 million. Growth reflected continued demand for grid, generation, technology and load center solutions.
Electric operating income increased 62.5% year over year to $898.2 million. The segment’s margin expanded to 11.5% from 10.1%, supported by increased project scope, self-performed solutions, efficient resource utilization and solid execution.
Underground Utility and Infrastructure Solutions (18% of quarterly revenues) revenues rose 30.7% year over year to $1.72 billion. Organic revenues grew 4% year over year, and businesses acquired during the past 12 months contributed roughly $355 million.
The segment’s operating income advanced 71.7% year over year to $155.8 million. Operating margin improved to 9.1% from 6.9%, primarily reflecting strong performance from Quanta’s civil and mechanical operations.
PWR Delivers Meaningful Margin Expansion
Consolidated operating income increased 87.6% to $694.8 million from $370.3 million in the year-ago quarter. Operating margin widened to 7.3% from 5.5%, as the improvement in both operating segments more than offset higher corporate expenses.
Corporate and non-allocated costs increased to $359.2 million from $273.0 million. These costs included amortization expense of $157.0 million compared with $113.2 million a year earlier and non-cash stock-based compensation of $63.4 million compared with $44.1 million in the prior year.
Quanta's Record Backlog Supports Visibility
Electric backlog reached a record $43.8 billion at quarter-end, driven primarily by additional awards and higher volumes with existing customers. The total included approximately $2.4 billion related to acquisitions completed during the second quarter.
Underground and Infrastructure backlog rose to a record $9.7 billion, aided by strong bookings in mechanical and Canadian pipeline operations. Consolidated 12-month backlog was also a record at $32.3 billion. Remaining performance obligations totaled $33.6 billion.
PWR Generates Robust Cash Flow
Cash provided by operating activities totaled $1.10 billion compared with $295.7 million a year earlier. Free cash flow improved to $886.0 million from $170.4 million, supported by favorable working-capital performance across Quanta’s portfolio.
The debt-to-EBITDA ratio under the company’s senior credit agreement improved to 1.72X from 1.95X at 2025-end. Quanta ended the June quarter with approximately $2.8 billion of liquidity, even after deploying capital toward acquisitions offering high-return growth opportunities.
Quanta Raises Its 2026 Outlook
Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion.
Electric segment revenues are projected to be in the range of $31.7-$31.9 billion, with an operating margin of 10.5%-10.75%. Underground and Infrastructure revenues are expected to be between $7.60 billion and $7.80 billion, with an operating margin of 8.75%-9.0%. Free cash flow is forecasted to be in the $2.00-$2.50 billion range.
PWR’s Zacks Rank
Quanta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Recent Construction Releases
Orion Group Holdings, Inc. (ORN - Free Report) reported weaker-than-expected second-quarter 2026 results, with adjusted EPS and revenues missing the Zacks Consensus Estimate. Revenues increased 8% year over year, driven by strong growth in the Concrete segment, supported by higher project volumes, new contract awards, expansion of site civil services and solid project execution. However, these gains were more than offset by weakness in the Marine business, where lower project volumes, along with higher selling, general and administrative expenses to support growth initiatives, pressured margins and reduced adjusted EBITDA, weighing on overall earnings.
Despite the softer quarter, Orion reaffirmed its full-year revenue guidance of $900-$950 million, implying approximately 9% growth at the midpoint. However, the company lowered its adjusted EBITDA outlook to $50-$54 million from the prior $54-$58 million range and reduced its adjusted earnings guidance to 23-30 cents per share from the earlier forecast of 36-42 cents.
United Rentals, Inc. (URI - Free Report) reported solid second-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. Record rental revenues, higher fleet productivity and robust specialty demand supported the results. Fleet productivity improved 3.4% year over year.
United Rentals’ management raised its 2026 revenue outlook to $17.5-$17.8 billion from $16.9-$17.4 billion. The adjusted EBITDA forecast increased to $7.98-$8.13 billion from $7.63-$7.88 billion.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive second-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected continued strength across its end markets, robust execution by the operating teams and sustained demand that drove record backlog growth, reinforcing the company’s confidence in the business momentum.
Comfort Systems’ backlog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period.