2026 06 03 Quanta Services PWR Q1 2026 Earnings Call

Summary

Quanta Services Q1 2026 beat strongly: $7.9B revenue (+$900M vs consensus), record backlog $48.5B (+19% YoY). Raised FY 2026 guide to $34.7-35.2B, EPS $13.55-14.25. CEO Austin on the $1T+ technology/hyperscaler TAM; $500-700M transformer manufacturing investment to derisk supply chain. Bridge power/generators as interim grid gap solution. Austin: "opportunity to more than double the earnings power of this company by 2030."

Transcript

Earl Austin: "Quanta is off to a strong start of the year with our first quarter results reflecting robust double-digit growth in revenues, adjusted EBITDA and adjusted earnings per share, along with record backlog."

"What ran through everything we presented in our Investor Day was one word, certainty — execution certainty, labor certainty, supply chain certainty, schedule certainty. That is what our customers need right now, and that is what this company is built to deliver."

"We are in the rooms where customers are planning their entire multiyear capital spend. We are negotiating much of the work directly."

"We announced an investment of $500 million to $700 million over the next several years in our power transformer manufacturing facilities."

"We have outlined an opportunity to more than double the earnings power of this company by 2030."

Jayshree Desai: "This morning, we reported first quarter results with revenues of $7.9 billion, net income attributable to common stock of $221 million or $1.45 per diluted share, adjusted diluted earnings per share of $2.68 and adjusted EBITDA of $686 million."

"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. We now expect revenues to range between $34.7 billion to $35.2 billion, adjusted EBITDA to range between $3.49 billion to $3.65 billion, and adjusted EPS to range between $13.55 and $14.25."

Nicholas Amicucci (Evercore ISI): "Bridge power type approach — more rhetoric and commentary over the past 30 days."

Earl Austin: "I mean everyone has a different solution to the issues of lack of generation...There is bridge power solutions. They're out there. There's Bloom and others that we're involved with on jobs, and I do think that is a good bridge power in many ways, and it will end up being backup power for the most part at some point. So yes, it's complicated and the lack of generation is creating some opportunities for us on bridge power and many things."

Andrew Kaplowitz (Citigroup): "Large load facility project awards in backlog additions."

Earl Austin: "It's largely across all segments, all disciplines. The backlog went up, including some 765 that was probably less than 25% of the increase."

Steven Fisher (UBS): "Looking out beyond 2030."

Earl Austin: "We're looking at work beyond 2030 for sure. I do think you'll see an elongated cycle. I don't think you're looking at something that stops in 5 years. You're seeing orders out on combined cycle engines into 2030, if I'm not mistaken. So if you're just getting orders in 2030, it would tell you that the CCGTs take 3 years to build once they hit the ground and you're in 2033 at a minimum."

Brian Russo: "NiSource and Alphabet GenCo expansion on top of Amazon program."

Earl Austin: "We continue to expand that opportunity in the Midwest. I think you're seeing more demand, and we talked about that early on to be a program."

Steven Fleishman (Wolfe Research): "Utility interconnection issues; Three Mile Island restart not interconnected until 2031."

Earl Austin: "The transformer manufacturing investment matters a ton when you start talking about 36 months on transformers. We've really derisked the transformer piece of that. So it would help there. We can build large voltage, high voltage line faster than anyone in the world."

Ati Modak (Goldman Sachs): "Gas generation opportunity as a core focus."

Earl Austin: "It depends on the risk. I think we're comfortable on the single cycle. The single cycles don't bother us, the combined cycles do."

Philip Shen (ROTH Capital): "Technology and load center outlook taken up from 70% to 110% of revenue growth."

Earl Austin: "It is growing fast, and it is a fast-paced market. It's a great market. We've talked about the technology being $1 trillion-plus TAM."

Adam Thalhimer (Thompson Davis): "Iran war — how customers are responding to higher commodity prices."

Earl Austin: "I'm not hearing anything [material impact]. Our supply chain looks good. There's a little stuff running around, but we're able to execute around those things."

Michael Dudas (Vertical Research): "Even if a small percentage of this activity comes through."

Earl Austin: "You're seeing our utility customers firm up what they believe is real large load requests. I think we've got to watch the ratepayer. We've got to make sure that the load that's coming on is beneficial to the ratepayer."

Maheep Mandloi (Mizuho): "M&A in guidance."

Earl Austin: "Any acquisitions we do on a go-forward basis should be additive to the guidance that we give. And I expect us to do acquisitions over the next 9 months."

Charles Dillard (Bernstein): "Full turnkey data center builds at scale."

Earl Austin: "MVP, the type of things that we do in the high-voltage interconnections are the sweet spot for us at this point. We are doing some balance of plant data centers today. Yes, if we do it at scale, we need to add."