PWR US S&P 500Russell 1000 Earnings call
Quanta Services (PWR) · Q2 2026 results and valuation
Share price: $607.94 · 2026-11-11
Quanta Services provides infrastructure solutions for the electric, gas, and communications industries. The company offers design, engineering, construction, and maintenance services for power grids, renewable energy facilities, and pipeline systems. It operates in the United States, Canada, Australia, and other international markets. Source: 10-K annual report (2026-02-19)
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 95.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+95.0%
Net income vs Q1 2026
Outlook given
Net income 451.4M vs 231.4M
Revenue +21.4%
Against the same quarter last year (Q2 2025) it is +96.9%, so it is not just seasonal.
Why Against the same quarter last year (+96.9%), net income rose because of broad-based organic strength across segments, service lines, and end markets, as well as the successful execution of the company's strategy and investments.
2 · How management spoke
Typical
More upbeat than 50% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Quanta Services increased its full year financial expectations to include $1.2 billion to $1.4 billion of revenues and $120 million to $140 million of adjusted EBITDA from these acquisitions.
Valuation
Is Quanta Services undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $155.67 a share — the stock trades 291% above it. Today's price assumes 28.2% growth a year.
Current price
$607.94
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+28.2% for 10 yrs
Fair value / share
$155.67
Buy below
$116.75
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Key theme
PWR reported double-digit growth in revenues, adjusted EBITDA, and adjusted earnings per share for the second quarter, alongside a record backlog of $53 billion.
Source quote
“This morning, we reported second quarter results that meaningfully exceeded expectations with strong double-digit growth in revenues, adjusted EBITDA and adjusted earnings per share, robust cash flow and record backlog of $53 billion.”
-
Guidance
The company increased full year financial expectations to include $1.2 billion to $1.4 billion of revenues and $120 million to $140 million of adjusted EBITDA from these acquisitions.
-
Figure
The electric segment has the ability to operate at 10 to 12 margins on the utility side, with 12 representing the utmost margins.
Source quote
“We've always said that the electric segment has the ability to operate 10 to 12 on the utility side, 12 would be the utmost margins that you would see.”
-
Key theme
The company expects to maintain a record backlog into the third and potentially the fourth quarters.
Source quote
“And I continue to expect us to have record backlog into the third and probably even into the fourth.”
-
Figure
The company reported broad-based organic strength across segments, service lines, and end markets due to successful strategy execution and investments.
Source quote
“The strength you're seeing today reflects broad-based organic strength across our segments, service lines and end markets and the successful execution of our strategy and the investments we have made against it.”
2 more
-
Figure
PWR made acquisitions to expand its geographic presence and scale craft-skilled capabilities in electrical, mechanical, civil, and fabrication to maximize value by engaging earlier in customer programs.
Source quote
“These acquisitions enhance our geographic presence and continue our strategy to scale self-perform, craft-skilled capabilities across electrical, mechanical, civil and fabrication and to lean into the front end of our customers' programs where the work takes shape and where getting involved early maximizes the value we can deliver.”
-
Figure
The company spends approximately $250 million a year on training facilities that were invested in over a decade.
Source quote
“And our training facilities, the things that we've invested in over a decade, we spend about $250 million a year in training.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“This morning, we reported second quarter results that meaningfully exceeded expectations with strong double-digit growth in revenues, adjusted EBITDA and adjusted earnings per share, robust cash flow and record backlog...”
“As a result of our strong first half, improved visibility into the remainder of the year and expected contributions from the acquisitions announced this morning, we are significantly increasing our...”
“Our solutions-based model is performing well, creating markets and unlocking growth opportunities because it is a platform that brings our customers industry-leading capabilities, scope and scale with the largest craft...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 9.56B | 7.87B | +21.4% | 6.77B | +41.1% |
| Gross profit | 1.55B | 1.11B | +39.5% | 1.01B | +53.4% |
| Operating income | 694.8M | 338.8M | +105.1% | 370.3M | +87.6% |
| Net income | 451.4M | 231.4M | +95.0% | 229.2M | +96.9% |
| EPS | 2.96 | 1.45 | +104.1% | 1.52 | +94.7% |
| P/E today 49.0 | 82.4 | 75.3 | +7.1 | 58.6 | +23.8 |
Topics
Most discussed now
- Given the strength of Quanta Services' first half performance, improved visibility into the second half and expected contributions from…
- As Duke described, subsequent to its first quarter earnings release, Quanta Services acquired 4 companies for approximately $1.24 billion…
Faded since Q1 2026
- Dropped It just continues to be MSA-type driven programmatic spend against the AI build, both cloud-based and learning-based type products.
- Fading There's great businesses, 100-year-old companies that have long-standing what I would consider execution across many, many markets.
- Fading That's what Quanta Services has to do as an industry is make...
- Fading The fungibility of Quanta Services' craft, both sides of it, both segments, its ability to mechanical as well as electric to...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
The company announced the appointment of Ellen Rubin to its Board of Directors on September 9, 2026.
- Material agreement; New financial obligation · SEC 8-K
Quanta Services, Inc. entered into supplemental indentures on August 6, 2026, for senior notes with interest rates of 4.850%, 5.300%, and 5.550% due in 2029, 2033, and 2036.
- Material agreement; Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
Quanta Services reported second-quarter 2026 revenues of $9.56 billion, up from $6.77 billion in the second quarter of 2025, with net income of $451.4 million.
- Shareholder vote results; Other events · SEC 8-K
The company elected ten directors for one-year terms and authorized a new stock repurchase program of up to $1.0 billion effective May 21, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
Quanta Services reported first-quarter 2026 revenues of $7.87 billion, up from $6.23 billion in the first quarter of 2025, with net income of $220.6 million compared to $144.3 million a year earlier.
- Director or officer change · SEC 8-K
On April 10, 2026, the Compensation Committee approved incentive performance stock units for senior leadership employees, including Earl C. Austin, Jr., Jayshree S. Desai, Karl W. Studer, and Gerald A. Ducey, Jr.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
-
full year
revenue, adjusted EBITDA, adjusted EPS, and free cash flow
Source quote
“We now expect revenues to range between $39.3 billion and $39.7 billion, adjusted EBITDA to range between $4.1 billion and $4.2 billion, adjusted EPS to range between $16.45 and $16.95, and free cash flow to range between $2 billion and $2.5 billion.”
-
full year
revenue and adjusted EBITDA from acquisitions
Source quote
“Included within our increased full year financial expectations are $1.2 billion to $1.4 billion of revenues and $120 million to $140 million of adjusted EBITDA from these acquisitions.”
-
third quarter
NiSource project moving into backlog
Source quote
“I do believe a significant amount of that will go into backlog in the third quarter.”
-
the later half of the year
larger projects (765 corridors, 345, 500) hitting backlog
Source quote
“You'll start to see it hit backlog in the later half of the year and throughout what I would consider the decade.”
-
well past 2030
long-term build on both sides of the business
Source quote
“So it's a long-term build well past 2030 on both sides of the business.”