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PWR Q3 Earnings Beat on Electric Strength, 2026 View Raised, Stock Up
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Key Takeaways
Quanta's Q3 adjusted EPS surged 82% to $6.06, beating estimates by 20.5%, while revenues jumped 57.4%.
Electric segment revenues soared 58.8% to $9.80 billion, while total backlog hit a record $63.7 billion.
PWR raised its 2026 revenue outlook to $41.30-$41.60 billion and adjusted EPS guidance to $17.90-$18.30.
Quanta Services, Inc. (PWR - Free Report) reported impressive third-quarter 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Performance benefited from robust demand for grid, power generation and technology infrastructure, increased self-performed project scope, efficient resource utilization and strong execution across both segments.
Shares of this leading provider of specialty contracting and infrastructure solutions gained more than 5% following its earnings release.
PWR's Earnings and Revenue Discussion
Quanta reported adjusted earnings of $6.06 per share for the third quarter of 2026, representing an 82% increase from $3.33 in the year-ago period. The figure surpassed the Zacks Consensus Estimate of $5.03 by 20.5%.
Revenues surged 57.4% year over year to $12.01 billion from $7.63 billion, exceeding the consensus estimate of $10.99 billion by 9.4%. Strong demand across infrastructure markets and contributions from acquisitions supported the top-line growth.
Organic revenues increased 37.1% year over year, reflecting robust demand for grid, power generation, technology and load center solutions. Meanwhile, total backlog reached a record $63.7 billion, supported by broad-based customer demand and new project awards.
Adjusted EBITDA advanced 68.8% year over year to $1.45 billion from $858.3 million. GAAP earnings increased 103.1% to $4.55 per share from $2.24. Net income attributable to common stock climbed 104.7% to $694.9 million.
Quanta Services, Inc. Price, Consensus and EPS Surprise
Electric Infrastructure Solutions (81.6% of quarterly revenues) generated revenues of $9.80 billion, up 58.8% year over year. Organic revenues increased approximately 39%, while businesses acquired over the past 12 months contributed approximately $1.20 billion. Growth reflected sustained demand across grid, generation, technology and load center solutions.
Segment operating income increased 75.9% to $1.24 billion from $703.8 million. Operating margin expanded to 12.6% from 11.4%, driven by increased project scope, self-performed solutions, efficient resource utilization and solid execution.
Underground Utility and Infrastructure Solutions (18.4% of quarterly revenues) reported revenues of $2.22 billion, increasing 51.8% year over year. Organic revenue growth was 29%, while acquisitions over the past 12 months contributed approximately $335 million.
Segment operating income rose 70.2% to $208.0 million from $122.2 million. Operating margin improved to 9.4% from 8.4%, primarily reflecting strong performance in industrial and mechanical operations.
Quanta's Operating Margins Expand
Consolidated operating income increased 98.5% year over year to $1.03 billion from $517.2 million. Operating margin widened to 8.5% from 6.8%, benefiting from improved profitability across both operating segments.
Corporate and non-allocated costs increased to $419.5 million from $308.8 million. These included amortization expenses of $188.6 million compared with $133.2 million and non-cash stock-based compensation of $67.9 million compared with $46.9 million a year earlier.
PWR's Record Backlog Strengthens Visibility
Electric segment backlog reached a record $51.9 billion, supported by broad-based customer demand. The quarter included a major power generation and grid infrastructure program with NiSource, although this program did not account for most of the backlog increase.
Underground and Infrastructure backlog reached a record $11.8 billion, including approximately $1.30 billion associated with third-quarter acquisitions. Consolidated 12-month backlog climbed to $38.4 billion, while remaining performance obligations reached $41.8 billion, supporting multi-year revenue visibility.
Quanta Generates Strong Cash Flow and Liquidity
Cash provided by operating activities increased to $1.45 billion from $563.5 million a year earlier. Free cash flow improved to $1.20 billion from $438.1 million, supported by favorable working-capital dynamics, particularly across technology and load center and power generation projects.
Quanta ended September with $2.32 billion in cash and approximately $5.20 billion of liquidity. Its net debt-to-EBITDA ratio improved to 1.30X from 1.95X at 2025-end. During the quarter, PWR issued $2 billion in senior notes and prepaid its outstanding term loan balance of $618.8 million.
PWR Raises Its 2026 Financial Outlook
Quanta raised its full-year 2026 revenue expectations to $41.30-$41.60 billion, representing a $1.95 billion midpoint increase from its previous guidance. Adjusted earnings are now projected to be $17.90-$18.30 per share, while adjusted EBITDA is expected to be between $4.40 billion and $4.49 billion.
Electric segment revenues are projected to be $33.60-$33.80 billion, with operating margins of 10.8%-11.1%. Underground and Infrastructure revenues are expected to be between $7.70 billion and $7.80 billion, with margins of approximately 9%. Free cash flow guidance increased to $2.50-$3.00 billion.
Management also anticipates strong double-digit adjusted earnings growth in 2027, supported by continued backlog expansion and broadening demand across utility, power generation, industrial and technology markets.
Masco Corporation (MAS - Free Report) reported third-quarter 2026 adjusted earnings of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.01 by 17.8%. The bottom line increased 22.7% from 97 cents a year ago. Net sales rose 2.6% year over year to $1.97 billion, beating the consensus mark of $1.93 billion by 1.8%.
Masco raised its 2026 adjusted earnings guidance to $4.65-$4.75 per share from the previous range of $4.40-$4.60, citing strong operational performance year to date. Reported earnings are projected to be between $4.51 and $4.61 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems also paid dividends of 90 cents per share during the quarter compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70 per share. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected to be $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.
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PWR Q3 Earnings Beat on Electric Strength, 2026 View Raised, Stock Up
Key Takeaways
Quanta Services, Inc. (PWR - Free Report) reported impressive third-quarter 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Performance benefited from robust demand for grid, power generation and technology infrastructure, increased self-performed project scope, efficient resource utilization and strong execution across both segments.
Shares of this leading provider of specialty contracting and infrastructure solutions gained more than 5% following its earnings release.
PWR's Earnings and Revenue Discussion
Quanta reported adjusted earnings of $6.06 per share for the third quarter of 2026, representing an 82% increase from $3.33 in the year-ago period. The figure surpassed the Zacks Consensus Estimate of $5.03 by 20.5%.
Revenues surged 57.4% year over year to $12.01 billion from $7.63 billion, exceeding the consensus estimate of $10.99 billion by 9.4%. Strong demand across infrastructure markets and contributions from acquisitions supported the top-line growth.
Organic revenues increased 37.1% year over year, reflecting robust demand for grid, power generation, technology and load center solutions. Meanwhile, total backlog reached a record $63.7 billion, supported by broad-based customer demand and new project awards.
Adjusted EBITDA advanced 68.8% year over year to $1.45 billion from $858.3 million. GAAP earnings increased 103.1% to $4.55 per share from $2.24. Net income attributable to common stock climbed 104.7% to $694.9 million.
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta Services, Inc. price-consensus-eps-surprise-chart | Quanta Services, Inc. Quote
Quanta's Electric Segment Leads Growth
Electric Infrastructure Solutions (81.6% of quarterly revenues) generated revenues of $9.80 billion, up 58.8% year over year. Organic revenues increased approximately 39%, while businesses acquired over the past 12 months contributed approximately $1.20 billion. Growth reflected sustained demand across grid, generation, technology and load center solutions.
Segment operating income increased 75.9% to $1.24 billion from $703.8 million. Operating margin expanded to 12.6% from 11.4%, driven by increased project scope, self-performed solutions, efficient resource utilization and solid execution.
Underground Utility and Infrastructure Solutions (18.4% of quarterly revenues) reported revenues of $2.22 billion, increasing 51.8% year over year. Organic revenue growth was 29%, while acquisitions over the past 12 months contributed approximately $335 million.
Segment operating income rose 70.2% to $208.0 million from $122.2 million. Operating margin improved to 9.4% from 8.4%, primarily reflecting strong performance in industrial and mechanical operations.
Quanta's Operating Margins Expand
Consolidated operating income increased 98.5% year over year to $1.03 billion from $517.2 million. Operating margin widened to 8.5% from 6.8%, benefiting from improved profitability across both operating segments.
Corporate and non-allocated costs increased to $419.5 million from $308.8 million. These included amortization expenses of $188.6 million compared with $133.2 million and non-cash stock-based compensation of $67.9 million compared with $46.9 million a year earlier.
PWR's Record Backlog Strengthens Visibility
Electric segment backlog reached a record $51.9 billion, supported by broad-based customer demand. The quarter included a major power generation and grid infrastructure program with NiSource, although this program did not account for most of the backlog increase.
Underground and Infrastructure backlog reached a record $11.8 billion, including approximately $1.30 billion associated with third-quarter acquisitions. Consolidated 12-month backlog climbed to $38.4 billion, while remaining performance obligations reached $41.8 billion, supporting multi-year revenue visibility.
Quanta Generates Strong Cash Flow and Liquidity
Cash provided by operating activities increased to $1.45 billion from $563.5 million a year earlier. Free cash flow improved to $1.20 billion from $438.1 million, supported by favorable working-capital dynamics, particularly across technology and load center and power generation projects.
Quanta ended September with $2.32 billion in cash and approximately $5.20 billion of liquidity. Its net debt-to-EBITDA ratio improved to 1.30X from 1.95X at 2025-end. During the quarter, PWR issued $2 billion in senior notes and prepaid its outstanding term loan balance of $618.8 million.
PWR Raises Its 2026 Financial Outlook
Quanta raised its full-year 2026 revenue expectations to $41.30-$41.60 billion, representing a $1.95 billion midpoint increase from its previous guidance. Adjusted earnings are now projected to be $17.90-$18.30 per share, while adjusted EBITDA is expected to be between $4.40 billion and $4.49 billion.
Electric segment revenues are projected to be $33.60-$33.80 billion, with operating margins of 10.8%-11.1%. Underground and Infrastructure revenues are expected to be between $7.70 billion and $7.80 billion, with margins of approximately 9%. Free cash flow guidance increased to $2.50-$3.00 billion.
Management also anticipates strong double-digit adjusted earnings growth in 2027, supported by continued backlog expansion and broadening demand across utility, power generation, industrial and technology markets.
PWR’s Zacks Rank
Quanta currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some Recent Construction Releases
Masco Corporation (MAS - Free Report) reported third-quarter 2026 adjusted earnings of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.01 by 17.8%. The bottom line increased 22.7% from 97 cents a year ago. Net sales rose 2.6% year over year to $1.97 billion, beating the consensus mark of $1.93 billion by 1.8%.
Masco raised its 2026 adjusted earnings guidance to $4.65-$4.75 per share from the previous range of $4.40-$4.60, citing strong operational performance year to date. Reported earnings are projected to be between $4.51 and $4.61 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems also paid dividends of 90 cents per share during the quarter compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70 per share. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected to be $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.