- Company name
- Quanta Services
- Sector
- Utility & energy infrastructure contracting
- About
- Quanta Services (Quanta) designs, builds, repairs and maintains infrastructure for electric and gas utilities, power generation, large load centers such as data centers, manufacturing, communications, pipeline and energy customers. It works in the United States, Canada, Australia and other markets. It has two segments. Electric gave $24.11 billion of the $29.45 billion of revenues in the first nine months of 2026, and Underground and Infrastructure gave $5.34 billion. Revenues were $28.48 billion in 2025. At December 31, 2025, Quanta had about 69,500 employees, most of them hourly field workers, and its ten largest customers gave 30% of 2025 revenues. The head office is in Houston, Texas, and Duke Austin is its president and chief executive officer.
- Thesis
- Quanta trades at a premium because investors pay for fast growth from utility grid spending, power generation and data center construction, and for a record backlog. Total backlog was $63.7 billion at September 30, 2026, against $44.0 billion at the end of 2025, and adjusted diluted EPS rose to $6.06 in Q3 2026 from $3.33. The company expects 2026 adjusted diluted EPS of $17.90 to $18.30, against $10.75 in 2025, and it says that it sees an opportunity for strong double-digit adjusted EPS growth in 2027. Acquisitions add part of the growth: Quanta bought five businesses in the first nine months of 2026 for about $1.29 billion in cash and 481,909 shares. For the premium to be earned, three things must be true. The backlog must turn into revenues at the higher margins of 2026: the Electric segment operating margin was 12.6% in Q3 2026, against 11.4% a year earlier. Utilities and data center customers must keep their capital plans, and permits, supply chains and the supply of skilled workers must not delay projects. Earnings must keep growing at a high rate for several years after 2027. The Q4 2026 report with the 2027 guidance, expected in February 2027, is the next test. A slowdown in data center or utility spending can shrink the premium quickly.
- Risks
- The stock already prices fast growth. Slower orders, a lower backlog or a small miss against guidance can move the price a lot.
Demand depends on the capital spending of utilities, power producers and data center builders. Under master service agreements, customers do not commit to specific volumes, so a pause in spending can cut new work quickly.
Large projects and fixed-price contracts carry the risk of cost overruns. Weather, permits, supply chain problems and the supply of skilled workers can delay projects and lower margins.
Quanta grows partly through acquisitions. At September 30, 2026, goodwill was $8.08 billion and other intangible assets were $3.17 billion. If an acquired business does not perform, the company can record impairments.
A few customers give a large part of revenues: the largest customer gave 8% and the ten largest gave 30% of 2025 revenues.
- Balance sheet
- Cash: $2.3B
Debt: $7.0B
Net debt: $4.7B
Interest cover: 9.6×
Undrawn credit line: $2.9B, to July 2031
Debt due within 12 months: $639M
Quanta funds itself with senior notes, a revolving credit facility and commercial paper. At September 30, 2026, total long-term debt obligations were $6.99 billion, of which $639 million was due within one year, including $600 million of 4.75% notes due August 2027. Cash was $2.32 billion. In August 2026, Quanta issued $2.00 billion of senior notes due 2029, 2033 and 2036, and on September 1, 2026, it prepaid the full $618.8 million term loan. The revolving commitments of the senior credit facility are $2.98 billion and mature on July 31, 2031, and $2.90 billion remained available at September 30, 2026. No commercial paper was outstanding. Interest cover is operating income divided by interest and other financing expenses less interest income for the first nine months of 2026 ($2,060 million against $215 million). Total equity was $10.62 billion, and goodwill was $8.08 billion. In the first nine months of 2026, Quanta paid a quarterly dividend of $0.11 per share and bought back no shares; $1.00 billion remained under the repurchase program. There were 150,677,145 shares outstanding on October 26, 2026.
As of 2026-09-30.
- Checkpoints
- Oct 29, 2026: Q3 2026 results and 2026 guidance. Passed. Watch: Results above guidance and higher 2026 guidance pass; lower guidance fails. Outcome: Adjusted diluted EPS rose to $6.06 from $3.33, backlog reached $63.7 billion, and Quanta raised its 2026 adjusted EPS guidance to $17.90 to $18.30.
Feb 18, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2027 guidance with strong growth in adjusted EPS and a higher backlog pass; flat EPS guidance or a lower backlog fails.
Apr 2027 (estimate): Q1 2027 results: backlog and margins. Pending. Watch: Backlog above $63.7 billion and a stable Electric segment margin pass; a lower backlog or margin fails.
- Recent events
- 2026-10-29: Quanta reported Q3 2026 results. Revenues rose to $12.01 billion from $7.63 billion. Diluted EPS was $4.55, and adjusted diluted EPS was $6.06, against $3.33. Remaining performance obligations were $41.8 billion and total backlog was a record $63.7 billion. Quanta raised its 2026 guidance to revenues of $41.3 billion to $41.6 billion and adjusted diluted EPS of $17.90 to $18.30. In September and October 2026, it bought two more businesses for about $245 million in cash and shares.
2026-09-01: Quanta prepaid the full $618.8 million term loan under its senior credit facility. In August 2026, it issued $2.00 billion of senior notes: $500 million of 4.85% notes due 2029, $750 million of 5.30% notes due 2033 and $750 million of 5.55% notes due 2036. In July 2026, it raised the revolving commitments of the credit facility to $2.98 billion and extended them to July 31, 2031.
2026-07-30: Quanta reported Q2 2026 results. Revenues rose to $9.56 billion from $6.77 billion, diluted EPS was $2.96 and adjusted diluted EPS was $4.24. Total backlog was $53.4 billion. Quanta raised its 2026 adjusted diluted EPS guidance to $16.45 to $16.95. It had bought Phalcon, an electrical contractor with about 4,100 employees, Percheron and PSD in Q2 2026, and Enerfab, a fabrication and construction company with about 2,100 employees, in July 2026. It expected these four businesses to add about $1.2 billion to $1.4 billion of revenues in 2026.
2026-05-21: Quanta's board approved a new share repurchase program of up to $1.00 billion. The prior program expired on June 30, 2026. Quanta bought back no shares in the first nine months of 2026.
2026-04-30: Quanta reported Q1 2026 results. Revenues rose to $7.87 billion from $6.23 billion, diluted EPS was $1.45 and adjusted diluted EPS was $2.68. Total backlog was a record $48.5 billion. Quanta raised its 2026 adjusted diluted EPS guidance to $13.55 to $14.25.
2026-02-19: Quanta reported 2025 results. Revenues were $28.48 billion, diluted EPS was $6.80 and adjusted diluted EPS was $10.75. Total backlog was a record $43.98 billion at year end. Quanta first guided 2026 revenues of $33.25 billion to $33.75 billion and adjusted diluted EPS of $12.65 to $13.35.