Quanta Services: Strong 2Q Beat and Raise; Four Acquisitions Extend Platform; Data Center Momentum Continues to Build

Research evidence excerpt

Quanta Services: Strong 2Q Beat and Raise; Four Acquisitions Extend Platform; Data Center Momentum Continues to Build

Quarterly Forecasts (FYE Dec)

Total backlog reached a record $53.4bn with a book-to-bill of ~1.5x, reflecting Adj. EBITDA ($ mn)

broad-based awards and increased volumes with existing customers. The 2025A 2026E 2027E

company expects a significant portion of the NiSource program to enter Q1 504 686A 871

backlog in 3Q26 as air permits are obtained. Full-year guidance was raised Q2 669 1,067A 1,202

Q3 858 1,227 1,423

substantially across all metrics. The revenue midpoint increased ~$4.55bn vs. Q4 845 1,172 1,362

last quarter's guide, with $1.2-1.4bn attributable to acquisitions closed FY 2,876 4,152 4,858

subsequent to 1Q and the balance reflecting organic outperformance and

Style Exposure improved second-half visibility. Technology and load center revenue growth

outlook stepped up to 220-240% y/y from 100-120% at the prior 1Q update

(~half of the step up is inorganic). FCF was also ahead of expectations; the CFO

cited favorable contracting terms and a growing mix of MEP, EPC, and

renewables work as structural tailwinds, and reiterated a 55-60% adj.

EBITDA-to-FCF conversion target with potential to be at the high end or

better. See more details on the results in the charts below.

• Four acquisitions at compelling implied multiples extend the platform.

PWR completed the acquisitions of Phalcon, Enerfab, Percheron, and PSD

during 2Q and in July, adding ~7,400 employees and deepening craft-skilled

capabilities across electrical, mechanical, fabrication, and front-end services

disciplines. Aggregate upfront consideration was ~$1.24bn net of cash, with up

to ~$242mm of contingent consideration tied to post-closing performance