Quanta Services Raises 2026 Outlook Again After Record Revenue and $63.7 Billion Backlog

Quanta Services again raised its full-year 2026 outlook across all metrics on Thursday after record third-quarter revenue of $12.0 billion and a record total backlog of $63.7 billion, as demand broadened across utility, power generation, industrial and technology customers.

The Houston-based infrastructure contractor now expects 2026 revenue of $41.3 billion to $41.6 billion and adjusted diluted EPS of $17.90 to $18.30, according to the earnings release it filed with an 8-K on Thursday. It also expects adjusted EBITDA of $4.40 billion to $4.49 billion and free cash flow of $2.50 billion to $3.00 billion. The release described the update as a significant increase in its 2026 financial expectations.

A record quarter

Third-quarter revenue rose to $12.01 billion from $7.63 billion a year earlier. Net income attributable to common stock climbed to $694.9 million, or $4.55 a diluted share, from $339.4 million, or $2.24 a share. Adjusted diluted EPS rose to $6.06 from $3.33.

Adjusted EBITDA reached $1.4 billion. Cash flow from operations was $1.5 billion and free cash flow was $1.2 billion, both of which the company marked as records. Remaining performance obligations totaled $41.8 billion.

"Given this outperformance and the expected incremental strength in the fourth quarter, we are again significantly increasing our full-year 2026 financial expectations across all metrics," President and CEO Duke Austin said in the release.

Austin said demand is broadening across utility, power generation, industrial and technology customers, and that Quanta is pacing ahead of the multi-year growth targets it laid out at its 2026 Investor Day. He added that the company believes there is opportunity to deliver strong double-digit adjusted EPS growth in 2027, supported by continued backlog growth.

Electric segment leads

The Electric segment generated revenue of $9.80 billion, up from $6.17 billion, and operating income of $1.24 billion, with its operating margin widening to 12.6% from 11.4%. Underground and Infrastructure revenue rose to $2.22 billion from $1.46 billion, and its operating margin improved to 9.4% from 8.4%.

Consolidated operating income rose to $1.03 billion, an 8.5% margin, compared with $517.2 million, or 6.8%, a year earlier.

Deals and balance sheet

Quanta completed two acquisitions in September and October: a Houston-based energy services provider with about 320 employees and a Fort Worth, Texas-based maker of steel monopoles and lighting structures, mainly for utility transmission and distribution, with about 270 employees. Aggregate consideration, net of cash acquired, was about $245 million, including about $149 million in Quanta stock. The company said the deals are not expected to contribute materially to 2026 results.

In August, Quanta issued $2.00 billion of senior notes, and on Sept. 1 it prepaid the full $618.8 million balance of the term loan under its senior credit facility. In the same 8-K, the company said it posted a third-quarter operational and financial commentary to its investor relations website.

By the numbers

• $12.0 billion: record third-quarter revenue
• $6.06: adjusted diluted EPS, up from $3.33
• $63.7 billion: record total backlog
• $1.2 billion: third-quarter free cash flow
• $17.90 to $18.30: new 2026 adjusted EPS outlook

Sources

1. Quanta Services Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001193125-26-436949)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.