Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 7 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Quanta's record backlog and raised guidance underscore accelerating demand for AI infrastructure, particularly data center balance-of-plant and grid interconnection work. The company's expansion into fabrication and vertical supply chain positions it to capture more of the AI buildout, while its role in transmission and generation supports the broader electrification needed for AI growth.
Quanta delivered a record second quarter with revenue of $9.6B, adjusted EBITDA of $1.1B, and adjusted EPS of $4.24, all exceeding expectations. The company closed four acquisitions (Phalcon, Enerfab, Percheron, PSD) for ~$1.24B upfront plus contingent consideration, contributing minimal EBITDA in the quarter. Backlog reached a record $53B, and the company added over 15,000 employees year-to-date, with ~8,000 organic. Management highlighted broad-based strength across segments, with MEP and technology/load-center work growing faster, and noted improved free cash flow due to favorable contracting terms.
Management raised full-year 2026 guidance across all metrics: revenue to $39.3-39.7B, adjusted EBITDA to $4.1-4.2B, adjusted EPS to $16.45-16.95, and free cash flow to $2-2.5B. The raise reflects strong first-half performance, improved visibility, and contributions from four acquisitions closed in Q2/July. Duke Austin emphasized that the larger utility, generation, and technology/load-center programs are still in early stages, with most large transmission and generation work not yet in backlog, and expects record backlog to continue into Q3/Q4. He sees margin upside in the back half, with electric segment margins potentially reaching 10-12% and underground margins moving toward parity with electric. Management also highlighted favorable contracting terms and a strong free cash flow profile, targeting 55-60% conversion.
“The strength you're seeing today reflects broad-based organic strength across our segments, service lines and end markets and the successful execution of our strategy and the investments we have made against it.”
on Quarterly performance
“We're not in backlog on any of the bigger work yet. Even the generation work, most of it is, I would say, 95% of it is not in backlog either.”
on Backlog and large projects
“We are getting favorable contracting terms across the business. But the growth of the MEP business, our EPC business and our renewables business is contributing to that free cash flow growth.”
on Free cash flow
To what extent are you now thinking more positively longer term about the margin potential as you have more self-perform and more large load projects?
Duke Austin said the margin profile is moving up, especially in the electric segment, and there is room for improvement in the back half. He noted electric margins could reach 10-12% with full utilization, and that synergies from training and technology are helping.
Given a large utility self-performing gas generation, how do you think about participating in gas generation? And can you speak to scaling the technology business?
Duke Austin said Quanta is seeing opportunities in gas generation but is cautious on risk, preferring contracts that provide comfort. On technology, he said the business is scaling via direct hyperscaler relationships and balance-of-plant work, with synergies from labor fungibility and interconnection expertise.
Are you seeing changes like prepayments or other favorable working capital terms from large load customers that could improve free cash flow conversion over time?
Jayshree Desai said free cash flow was strong in the first half, driven by favorable contracting terms and growth in MEP, EPC, and renewables. She maintained a 55-60% conversion target but sees potential to be at the high end or better.