Quanta Services, Inc.

What they do

Quanta designs, engineers, procures, constructs, upgrades and maintains infrastructure including electric power transmission and distribution networks, substations, renewable and gas generation, battery storage, low voltage electrical and mechanical systems for data centers and industrial facilities, communications networks, gas utility systems and pipeline transmission systems. The company operates through two reportable segments: Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions. Services are typically provided under master service agreements, repair and maintenance contracts, and fixed-price and non-fixed-price construction and engineering contracts. Operations are decentralized and labor-intensive, relying on craft skilled labor and experienced operators.

Revenue drivers

• Electric Infrastructure Solutions (Electric) — Provides design, engineering, procurement, construction, upgrade and repair and maintenance services for electric power transmission and distribution networks, substations, and renewable and gas power generation and battery storage facilities. This segment consists of the historical Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions segments and serves utility, renewable energy and large load center customers.
• Underground Utility and Infrastructure Solutions (Underground and Infrastructure) — Provides services for gas utility systems, pipeline transmission systems and facilities, and downstream industrial facilities, as well as communications and cable multi-system operator networks. This segment serves utility, communications and energy delivery markets.
• Large Load Center and Manufacturing Services — Provides low voltage electrical, mechanical, plumbing and process infrastructure for large load centers such as data centers, advanced manufacturing, healthcare, pharmaceutical and industrial facilities. These services are delivered across both segments and support customers in the technology, industrial and manufacturing sectors.

Recent performance

Second quarter 2026 revenues were $9.56 billion, up from $6.77 billion in the second quarter of 2025, with net income attributable to common stock of $451.4 million, or $2.96 per diluted share, compared to $229.3 million, or $1.52 per diluted share, in the prior-year quarter. Adjusted diluted earnings per share was $4.24 for the second quarter of 2026 versus $2.48 for the second quarter of 2025. Adjusted EBITDA was $1.1 billion and cash flow from operations was $1.1 billion, with free cash flow of $0.9 billion. Remaining performance obligations were $33.6 billion and total backlog reached a record $53.4 billion.

Strategy

Quanta aims to expand its portfolio of infrastructure solutions for existing and potential customers, develop its technological and training capabilities, maintain a safety-focused culture, and preserve an entrepreneurial culture across its operating companies. The company recently completed the acquisitions of Phalcon, Enerfab, Percheron and PSD to deepen self-perform, craft-skilled capabilities across electrical, mechanical, fabrication and front-end disciplines, bolster geographic density and diversify end-market exposure. Management believes these actions strengthen its position to benefit from customer spending on electric grid, power generation and mission-critical infrastructure. The company also continues to pursue strategic alliances and preferred service provider status with customers.

Risks

• Dependence on labor resources — Quanta's operations are labor-intensive and rely on craft skilled labor personnel and experienced operators, and future demand for, availability of and costs related to labor resources in the industries it serves could adversely affect results.
• Customer capital spending cycles — The business depends on obtaining contracts with customers in the utility, renewable energy, hyperscaler, technology, communications, industrial and energy delivery markets, and a reduction in customer capital spending could reduce revenues.
• Economic and regulatory conditions — Changes in global and domestic economic or political conditions, inflation, interest rates, tariffs, recessionary conditions, commodity prices and legislation or regulation could impact demand for services and project timing.
• Project execution and contract risk — Quanta provides services under fixed-price and non-fixed-price construction and engineering contracts, and inaccurate assumptions or cost overruns on projects could negatively affect operating results.

Outlook

Management significantly increased full-year 2026 financial expectations across all metrics, citing strong first-half performance, improved visibility into the back half of the year, and expected contribution from recently completed acquisitions. The company believes its results and long-term track record demonstrate an ability to compound profitable growth as customers accelerate investment in electric grid, power generation and mission-critical infrastructure. Quanta also reaffirmed conviction in achieving multi-year growth targets outlined at its 2026 Investor Day.