Quanta Services (PWR) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenues of $7.87 billion, with double-digit growth in revenues, adjusted EBITDA, and adjusted EPS, and net income attributable to common stock of $220.6 million.

• Strong demand and execution across diversified markets, driven by grid modernization, electrification, and acquisitions, especially in Electric and Underground segments.

• Strategic focus on execution certainty, labor, supply chain, and schedule certainty to meet evolving customer needs, with deepened integration into customers' multi-year capital planning.

• Cash from operations increased 61% year-over-year, supporting business execution, dividend payments, and robust liquidity.

• Management increased full-year 2026 expectations, targeting more than doubling adjusted EPS by 2030.

Financial highlights

• Q1 2026 revenues reached $7.87 billion, up 26.3% year-over-year, with net income of $220.6 million ($1.45 per diluted share), adjusted EPS of $2.68, and adjusted EBITDA of $686.4 million.

• Gross profit was $1.11 billion, up from $834 million, and operating income rose to $338.8 million.

• Cash provided by operating activities was $391.7 million, with free cash flow at $184.4 million.

• Record backlog of $48.5 billion and remaining performance obligations at $26.2 billion.

• Sequential revenue growth in Q1, an atypical seasonal pattern, driven by broad-based strength across segments.

Outlook and guidance

• Raised full-year 2026 guidance: revenues expected between $34.7–$35.2 billion, adjusted EBITDA between $3.49–$3.65 billion, and adjusted EPS between $13.55–$14.25.

• Net income guidance: $1.40–$1.50 billion; diluted EPS: $9.17–$9.87; free cash flow projected at $1.55–$2.05 billion.

• Management targets 15–20% adjusted EPS growth annually, aiming to more than double earnings power by 2030.

• Free cash flow guidance unchanged, with confidence in achieving the higher end of the range.

• M&A not included in current guidance; any future acquisitions will be additive.