Pwr Q1 Earnings Top Estimates On Strong Execution, 2026 View Raised

Quanta Services, Inc. PWR reported a strong first-quarter 2026 performance, driven by solid execution across both of its operating segments. Management said revenue growth and margin performance exceeded its expectations across the business, supported by the company’s solutions-based model and “execution certainty” from its craft-skilled workforce, sending shares up nearly 9.5% in pre-market trading following the announcement.

More on Quanta’s Q1 Earnings & Revenues

Quanta reported adjusted earnings of $2.68 per share, up 50.6% from $1.78 in the year-ago quarter and ahead of the Zacks Consensus Estimate of $2.04 by 31.4%. Revenues increased 26.3% year over year to $7.87 billion and topped the consensus mark of $6.99 billion by 12.6%. Remaining performance obligations or RPOs were $26.2 billion, reinforcing visibility as Quanta entered the rest of 2026.

PWR Segment Results Point to Broad Execution

Electric Infrastructure Solutions (which accounted for 82.1% of consolidated sales) remained the primary growth driver in the quarter. Segment revenues rose 30.8% year over year to $6.47 billion from $4.94 billion. Profitability improved as volume scaled. Electric segment operating income climbed 37.5% to $561.1 million from $408.2 million, while operating margin expanded to 8.7% from 8.3%.

Underground Utility and Infrastructure Solutions (17.9% of total sales) also delivered solid year-over-year progress. Segment revenues increased 9.1% to $1.41 billion from $1.29 billion. Earnings growth was notable. Segment operating income rose 37.4% to $105.6 million from $76.9 million, driving operating margin to 7.5% compared with 6.0% a year earlier.

Quanta Margins Improve Alongside Revenue Growth

Scale benefits showed up clearly in consolidated profitability. Gross profit increased to $1.11 billion from $834.0 million in the year-ago quarter. Gross margin expanded to 14.1% from 13.4%, reflecting improved profitability on higher revenue volume.

Operating income rose to $338.8 million from $239.1 million, with operating margin improving to 4.3% from 3.8%. Corporate and non-allocated costs were $327.9 million compared with $246.0 million a year ago, and the quarter included higher amortization of intangible assets and non-cash stock-based compensation within those costs.

Adjusted EBITDA increased to $686.4 million in the first quarter of 2026 from $503.9 million in the prior-year period, reflecting stronger earnings power alongside higher revenue.

Adjusted net income attributable to common stock totaled $407.6 million compared with $268.6 million a year ago. The quarter’s adjustments included acquisition and integration costs, an increase in the fair value of contingent consideration liabilities, equity in losses (earnings) of non-integral unconsolidated affiliates and a change in fair value of non-marketable equity security investments, along with non-cash stock-based compensation and amortization of intangible assets.

PWR Backlog Levels Underscore Demand

Work visibility remained a key feature of the quarter. Total backlog was $48.5 billion at March 31, 2026, reflecting continued demand across Quanta’s end markets.

Timing also mattered. Total backlog expected to be realized within 12 months was $28.23 billion, with Electric representing $23.89 billion of that amount and Underground and Infrastructure contributing $4.34 billion. That near-term profile supports execution momentum through the remainder of 2026.

PWR Balance Sheet Shows Working Capital Intensity

Quarter-end cash and cash equivalents were $364.8 million compared with $439.5 million at 2025-end.

On the liability side, current maturities of long-term debt were $689.7 million and long-term debt, net of current maturities, was $5.20 billion. Contract liabilities increased to $3.84 billion, and total liabilities were $16.60 billion, illustrating the working-capital demands that can accompany Quanta’s higher activity level.

Quanta Cash Flow Expands Despite Higher Investment

Net cash provided by operating activities was $391.7 million in the first quarter, up from $243.2 million in the year-ago quarter. Capital expenditures were $220.1 million, partly offset by $12.8 million of proceeds from the sale of property and equipment and related insurance settlements.

Free cash flow was $184.4 million, up from $117.8 million a year earlier. The quarter showed improved cash conversion even as Quanta continued investing to support large-scale infrastructure activity.

Quanta Raises 2026 Outlook After Strong Start

Following the quarter’s outperformance and improved visibility, management raised full-year 2026 expectations. Quanta now forecasts consolidated revenues of $34.7-$35.2 billion (compared with the prior expectations of $33.25 billion-$33.75 billion and the Zacks Consensus Estimate of $33.37 billion) and adjusted EPS of $13.55-$14.25 (compared with the earlier projection of $12.65–$13.35 and the consensus mark of $13.11). 

Adjusted EBITDA is projected to be in the range of $3.49-$3.65 billion, up from the earlier expectation of $3.34–$3.50 billion.

On a segment basis, Electric Infrastructure Solutions is expected to generate $28.2-$28.5 billion of revenue with an operating income margin of 10.1%-10.5%, while Underground Utility and Infrastructure Solutions is projected to deliver $6.50-$6.70 billion of revenue with an operating margin of about 8.25%-8.5%. Quanta also reaffirmed free cash flow expectations of $1.55-$2.05 billion for 2026.

PWR’s Zacks Rank

Quanta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some Recent Construction Releases

Comfort Systems USA, Inc. FIX delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.
 
Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. Backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion at Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.
 
United Rentals, Inc. URI reported solid first-quarter 2026 results, with adjusted earnings per share (EPS) and total revenues beating the Zacks Consensus Estimate and growing year over year. Solid execution across its general rentals and specialty businesses helped drive record first-quarter results, while fleet productivity increased 2.3% from the year-ago period.
 
Management raised full-year fiscal 2026 targets, lifting expectations across several major line items compared with the prior outlook. United Rentals now expects revenues between $16.9 billion and $17.4 billion, with adjusted EBITDA expected between $7.625 billion and $7.875 billion.
 
Masco Corporation MAS reported exceptional first-quarter 2026 financial performance with earnings and net sales beating the Zacks Consensus Estimate and growing year over year. Masco’s performance benefited from pricing actions and cost-savings initiatives, which helped offset higher tariff and commodity costs.
 
Masco continues to expect EPS in the range of $3.91-$4.11 and adjusted EPS in the band of $4.10-$4.30. Management framed the decision as a prudent stance, given ongoing macroeconomic and geopolitical volatility.

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This article originally published on Zacks Investment Research (zacks.com).

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