2026 07 30 Earnings PWR Q2 Fy2026

Summary

Quanta Services posted a large Q2 FY2026 beat — adjusted EPS $4.24 (vs $3.29 consensus, +28.9%) on revenue $9.56B (vs $8.61B, +11.0%), adjusted EBITDA ~$1.1B — and raised full-year guidance across the board (revenue $39.3–39.7B, adj EBITDA $4.1–4.2B, adj EPS $16.45–16.95, FCF $2.0–2.5B), with the stock +15.9% to ~$650. The load-bearing causal claim for the pwr-transformer-moat-to-eps-doubling chain: management reports a record $53B backlog but says the largest programs (utility, generation, and technology/data-center load-center markets — the 765/500/345kV corridors) are still in engineering and ~95% not yet in backlog — i.e. the demand visible today understates what is coming. Quanta is deepening its hold on the supply-constrained critical path (high-voltage breakers via the HICO deal), and frames higher-voltage/complex infrastructure as its structural margin advantage, with electric-segment margins targeted at 10–12% and "room for improvement" on the underground/backside.

Transcript

Verbatim quotes extracted from the Q2 FY2026 earnings call transcript (Investing.com). Speaker-labeled prepared remarks and Q&A excerpts. Full transcript at the source URL.

Duke Austin (President & CEO): "We're involved in lots of data centers. I haven't seen much in New York."

Duke Austin (President & CEO): "Our self-perform capabilities, we show up, we're on time, we're certain, and that's leading to balance of plant-type builds in multiple areas. Call it 80% of what a data center would build, less chips."

Duke Austin (President & CEO): "We have the abilities to do that, and then as people see that we're certain and our projects are on time, on budget, self-perform, more and more adjustable market comes our way."

Duke Austin (President & CEO): "We did the breaker deal with HICO. I thought that was a critical path for us, the high voltage breakers are very difficult to get."

Duke Austin (President & CEO): "Anything complicated, anything with a higher voltage, the higher the voltage, the better for Quanta. I'll just say it like that. We love complicated high voltage infrastructure."

Duke Austin (President & CEO): "The record backlog we reported reflects the demand in front of us, but we're still in the early stages. The larger programs across the utility generation and technology load center markets are ahead of us."

Duke Austin (President & CEO): "Most of it is, I would say 95% of it's not in backlog either. Those big projects, the 765 corridors, 345, 500, all that bigger work is just starting. A lot of it's in engineering."

Duke Austin (President & CEO): "We've always said that the electric segment has the ability to operate 10 to 12 on the utility side."

Duke Austin (President & CEO): "I do believe there is some room in the margins in the backside...there's room for margin improvement in the backside."

Jayshree Desai (CFO): "We are raising our full year financial expectations. We now expect revenues to range between $39.3 billion-$39.7 billion, adjusted EBITDA to range between $4.1 billion-$4.2 billion, adjusted EPS to range between $16.45-$16.95, and free cash flow to range between $2 billion-$2.5 billion."

Q&A (selected)

Steven Fisher (UBS): "Any reason why that wouldn't add to some margin upside over the longer term?"

Julien Dumoulin-Smith (Jefferies): "What do you think about your willingness to participate in the gas generation side of the business?"

Chad Dillard (Bernstein): "Have you started to see RFPs for 800 VDC work yet?"