What drove the strong second-quarter results?

Management attributed the results to outperformance across the operating model, strong demand from utility, data center and power generation customers, and higher operating leverage. Operating income rose to $695 million from $370 million, and the Electric segment's operating margin expanded to 11.5% from 10.1%.

How much of the 2026 outlook raise is due to acquisitions?

Phalcon, Enerfab, Percheron and PSD are expected to contribute approximately $1.2 billion to $1.4 billion of 2026 revenue and $120 million to $140 million of adjusted EBITDA. Management also cited improved second-half visibility and strong first-half execution as reasons for the raise, so the acquisitions are only part of the increase.

How were the recent acquisitions funded, and what additional payments could follow?

The roughly $1.24 billion in aggregate upfront consideration, net of cash acquired, consisted of about $1.07 billion in cash and about $173.3 million in common stock. The cash portion was funded with borrowings under existing debt arrangements and cash on hand. Up to about $242.3 million of additional contingent consideration may be payable if the acquired businesses meet performance targets.

Is there any concern about working capital or cash conversion?

Accounts receivable rose to $8.53 billion from $6.85 billion at year-end 2025, and contract liabilities also increased. Despite this build, first-half operating cash flow was $1.49 billion and free cash flow was $1.07 billion, so the company is generating cash, though investors should watch receivable collections as activity scales.

What do the capital return and credit developments mean for shareholders?

The board authorized a new $1 billion share repurchase program, replacing a prior program that expired June 30, 2026, after which about $135 million had been spent. A $0.11 quarterly dividend was declared, and Moody's upgraded the senior unsecured rating to Baa2, which may support lower borrowing costs for future financing.

PWR 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.

Quanta Services (PWR) reported second-quarter 2026 results that substantially beat expectations, with revenue of $9.56 billion^a (up roughly 41% year over year from $6.77 billion), GAAP diluted EPS of $2.96 (versus $1.52), and adjusted diluted EPS of $4.24 (versus $2.48).

Adjusted EBITDA reached $1.07 billion^b, up about 60% from $668.8 million, and operating margin expanded to 7.3% from 5.5%. Free cash flow was $886 million for the quarter, versus $170 million a year earlier, and total backlog reached a record $53.4 billion at quarter end, with remaining performance obligations of $33.6 billion. Management described the quarter as a record for a second quarter on several metrics and significantly raised full-year 2026 expectations across all metrics.

The guidance raise is the central investor takeaway. Management cited outperformance, improved visibility into the second half, and contributions from recent acquisitions (Phalcon, Enerfab, Percheron and PSD). The company expects those acquisitions to add roughly $1.2 billion to $1.4 billion^c of 2026 revenue and $120 million to $140 million of adjusted EBITDA.

The filing's full-year reconciliation tables imply adjusted diluted EPS of $16.45 to $16.95^d and adjusted EBITDA of $4.09 billion to $4.21 billion, with free cash flow of $2.0 billion to $2.5 billion. Note that the specific revised guidance figures are summarized in a separate outlook post on the company website, not in the 8-K text itself, so the ranges above are derived from the reconciliation tables. Key risks and considerations include the scale of recent acquisition spending, with about $1.24 billion in upfront consideration (roughly $1.07 billion in cash, funded with debt and cash on hand) and up to $242.3 million in potential contingent payments.

Working capital also grew sharply, with accounts receivable rising to $8.53 billion from $6.85 billion at year-end and total debt-related obligations remaining substantial. Management continues to flag weather, permitting, supply chain, and macroeconomic uncertainty. Positively, Moody's upgraded the senior unsecured notes to Baa2 and the board authorized a new $1 billion share repurchase program alongside a $0.11 quarterly dividend.

02—Key points

Key Highlights

Second-quarter revenue rose about 41% year over year to $9.56 billion, with Electric segment revenue of $7.84 billion (82% of total) and Underground and Infrastructure revenue of $1.72 billion.
GAAP diluted EPS of $2.96 versus $1.52 a year earlier; adjusted diluted EPS of $4.24 versus $2.48, a roughly 71% increase.
Adjusted EBITDA of $1.07 billion, up from $668.8 million, with consolidated operating margin improving to 7.3% from 5.5%.
Free cash flow of $886 million for the quarter versus $170 million in Q2 2025, driven by operating cash flow of $1.10 billion.
Record total backlog of $53.4 billion and remaining performance obligations of $33.6 billion at June 30, 2026, supporting multi-year visibility.
Full-year 2026 expectations raised across all metrics, with implied adjusted diluted EPS of $16.45 to $16.95 and adjusted EBITDA of $4.09 billion to $4.21 billion per the reconciliation tables.
Moody's upgraded senior unsecured notes to Baa2, and the board authorized a new $1 billion buyback and declared a $0.11 quarterly dividend.

03—Questions

Frequently Asked Questions

What drove the strong second-quarter results?
Management attributed the results to outperformance across the operating model, strong demand from utility, data center and power generation customers, and higher operating leverage. Operating income rose to $695 million from $370 million, and the Electric segment's operating margin expanded to 11.5% from 10.1%.
How much of the 2026 outlook raise is due to acquisitions?
Phalcon, Enerfab, Percheron and PSD are expected to contribute approximately $1.2 billion to $1.4 billion of 2026 revenue and $120 million to $140 million of adjusted EBITDA. Management also cited improved second-half visibility and strong first-half execution as reasons for the raise, so the acquisitions are only part of the increase.
How were the recent acquisitions funded, and what additional payments could follow?
The roughly $1.24 billion in aggregate upfront consideration, net of cash acquired, consisted of about $1.07 billion in cash and about $173.3 million in common stock. The cash portion was funded with borrowings under existing debt arrangements and cash on hand. Up to about $242.3 million of additional contingent consideration may be payable if the acquired businesses meet performance targets.
Is there any concern about working capital or cash conversion?
Accounts receivable rose to $8.53 billion from $6.85 billion at year-end 2025, and contract liabilities also increased. Despite this build, first-half operating cash flow was $1.49 billion and free cash flow was $1.07 billion, so the company is generating cash, though investors should watch receivable collections as activity scales.
What do the capital return and credit developments mean for shareholders?
The board authorized a new $1 billion share repurchase program, replacing a prior program that expired June 30, 2026, after which about $135 million had been spent. A $0.11 quarterly dividend was declared, and Moody's upgraded the senior unsecured rating to Baa2, which may support lower borrowing costs for future financing.

04—Continue

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