01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported a strong first quarter for fiscal year 2026, demonstrating significant growth driven by robust demand across both its Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions segments.
Revenues surged by 26.3% year-over-year to $7.87 billiona, bolstered by increased utility investments in grid modernization, renewable energy infrastructure, and the continued demand from data centers and manufacturing. The company's profitability saw a substantial improvement, with operating income rising 41.7% to $338.8 million. This growth was supported by higher revenues, improved operating margins in both segments, and effective management of costs despite an increase in SG&A and amortization expenses related to recent acquisitions.
The balance sheet remains strong, with total assets increasing to $25.75 billionb, while remaining performance obligations and backlog reached $26.24 billion and $48.47 billion, respectively, indicating a healthy pipeline of future work. Quanta generated significant operating cash flow, up 61% year-over-year, allowing for strategic investments and return of capital.
The company's strategic acquisitions, particularly Dynamic Systems, are integrating well and contributing to revenue growth and expanded service offerings. Looking ahead, Quanta remains optimistic about continued demand for its services, driven by ongoing electrification trends, infrastructure upgrades, and growth in technology-related sectors.
02—Key points
Key Highlights
- Consolidated revenues increased by 26.3% to $7.87 billion in Q1 2026 compared to Q1 2025.
- Operating income grew significantly by 41.7% to $338.8 million, with strong performance in both Electric and Underground & Infrastructure segments.
- Net income attributable to common stock increased by 52.9% to $220.6 million.
- Cash flow from operating activities surged by 61% to $391.7 million.
- Total backlog and remaining performance obligations show continued strength, reaching $48.47 billion and $26.24 billion, respectively.
- Acquisition of Dynamic Systems (DSI) is contributing positively to revenue and expanding service capabilities, particularly in mechanical, plumbing, and process infrastructure solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Quanta Services kept $0.03.
- Revenue$7.87B100.0%
- Cost of revenue−$6.77B85.9%
- Gross profit$1.11B14.1%
- Operating costs−$768.5M9.8%
- Operating income$338.8M4.3%
- Interest, other & tax−$118.2M1.5%
- Net income$220.6M2.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $7.87B$6.23B | +26.3% |
| Cost of Revenue | $6.77B$5.40B | +25.3% |
| Gross Profit | $1.11B$834.04M | +32.8% |
| SG&A Expenses | $620.73M$493.97M | +25.7% |
| Operating Income | $338.78M$239.08M | +41.7% |
| Net Income | $220.63M$144.26M | +52.9% |
| EPS (Basic) | $1.47$0.97 | +51.5% |
| EPS (Diluted) | $1.45$0.96 | +51.0% |
| Shares Outstanding (Basic) | 149.78M148.27M | +1.0% |
| Shares Outstanding (Diluted) | 152.09M150.96M | +0.7% |
05—Questions
Frequently Asked Questions
What drove the significant increase in revenues in the first quarter of 2026?
The substantial increase in revenues was driven by a combination of factors, including increased capital investments by utilities in grid modernization, system upgrades, and renewable energy infrastructure. Additionally, strong demand from data centers and reshoring initiatives in manufacturing boosted revenues. Recent acquisitions, such as Dynamic Systems, also contributed significantly to revenue growth and expanded the company's service offerings.
How did Quanta's profitability change in the first quarter?
Quanta experienced a significant improvement in profitability. Operating income rose by 41.7% to $338.8 million, driven by higher revenues and improved operating margins in both the Electric and Underground & Infrastructure segments. Net income attributable to common stock saw a strong increase of 52.9% to $220.6 million, reflecting the overall operational efficiency and revenue growth.
What is the outlook for Quanta's backlog and future demand?
The company's future outlook remains positive, supported by a strong backlog and remaining performance obligations. Total backlog stood at $48.47 billion, and remaining performance obligations were $26.24 billion as of March 31, 2026. These figures represent increases from the prior quarter, indicating sustained demand for Quanta's services, particularly in electric infrastructure, renewable energy, and industrial solutions for data centers and manufacturing.
How are recent acquisitions impacting Quanta's financial performance?
Recent acquisitions, notably Dynamic Systems, are positively impacting Quanta's financial performance by contributing to revenue growth and expanding service capabilities. These acquisitions are integrating well into the Underground and Infrastructure segment, enhancing the company's offerings in mechanical, plumbing, and process infrastructure, particularly for technology, semiconductor, and large load center markets.
06—Continue