Key Highlights

  • Revenue of USD 12.01 billion rose 57.4% year over year and topped the consensus estimate of USD 11.03 billion.
  • Adjusted diluted EPS of USD 6.06 beat the consensus estimate of USD 5.02, while GAAP diluted EPS reached USD 4.55.
  • Backlog reached a record of roughly USD 64 billion, about USD 10 billion above the end of June level.
  • Guidance for 2026 rose to USD 41.3 to 41.6 billion in Revenue and USD 17.90 to 18.30 in adjusted EPS.

Quanta Services, Inc. (NYSE:PWR) reported third quarter 2026 revenue of USD 12.01 billion, up 57.4% from USD 7.63 billion a year earlier and above the consensus estimate of USD 11.03 billion. Adjusted diluted EPS was USD 6.06 against a consensus estimate of USD 5.02 and USD 3.33 in the prior year period, an increase of 82%. GAAP diluted EPS was USD 4.55 versus USD 2.24, and Net Income attributable to common stock was USD 694.9 million. Adjusted EBITDA rose 69% to USD 1.4 billion, lifting the adjusted EBITDA Margin to 12.1%.

Electric Segment Carries Profit Growth

Electric segment revenue climbed 58.8% to USD 9.80 billion, with about USD 1.22 billion coming from acquired businesses, and segment Operating Income rose 75.9% to USD 1.24 billion at a margin of 12.6% versus 11.4% a year ago. Underground and Infrastructure revenue rose 51.8% to USD 2.22 billion, and its margin improved to 9.4% from 8.4% as recently acquired mechanical businesses lifted Fixed Cost absorption. Consolidated operating income nearly doubled, up 98.5% to USD 1.03 billion.

Chief Executive Officer Earl Austin cited about 95,000 employees in total and said the company is getting some Leverage from its Training investments. He added that the Utility portion of the Electric segment, around USD 20 billion in size, operates at margins of 10% to 12%, and described the story as one of return on invested Capital more than margin.

Raised Guidance and Balance Sheet Actions

The company lifted its full year 2026 revenue guidance to USD 41.3 to 41.6 billion, about USD 1.9 billion higher at the midpoint. Adjusted EBITDA is guided to USD 4.40 to 4.49 billion, adjusted EPS to USD 17.90 to 18.30, and free Cash Flow to USD 2.5 to 3.0 billion, which would represent greater than 60% conversion of adjusted EBITDA at the midpoint. Third quarter Operating Cash Flow of USD 1.5 billion and free cash flow of USD 1.2 billion were both quarterly records.

During the quarter the company upsized its revolving Credit commitments to USD 2.98 billion with Maturity extended to July 2031, issued USD 2.0 billion of senior notes in August, and prepaid its remaining term Loan in September. It finished with USD 2.3 billion of cash, only USD 20 million drawn on the revolver, total Liquidity of USD 5.2 billion and a bank defined Leverage Ratio near 1.3 times. Two acquisitions closed after the second quarter report for about USD 245 million, net of cash acquired.

Backlog and Cash Conversion Markers

Several figures frame the next reports. The company reported Backlog of USD 63.73 billion at September 30 versus USD 43.98 billion at December 31, 2025, with remaining performance obligations of USD 41.75 billion. The CEO said backlog counts only signed work, so timing of large transmission and generation awards can be lumpy, and that major 765 kilovolt projects are not yet in the figure.

Cash flow is a second marker: the company described its long run cash conversion framework as 55% to 60% of adjusted EBITDA, while the 2026 guidance sits above that range. The full year adjusted EPS range of USD 17.90 to 18.30 can be set against the USD 6.06 posted in the quarter. The effective tax rate of 25.2%, down from 25.9%, and the USD 5.2 billion of liquidity round out the items to follow.