Quanta Services, Inc. PWR delivered a sharp improvement in profitability in the second quarter of 2026, supported by robust demand, stronger execution and favorable operating leverage across its infrastructure businesses. Net income attributable to common stock increased to $451.4 million from $229.3 million a year earlier, representing growth of nearly 97%. Revenues climbed 41.1% year over year to $9.56 billion, while adjusted EBITDA advanced to about $1.07 billion from $668.8 million.
The improvement was broad-based. Electric segment revenues increased 43.6% year over year to $7.84 billion, while operating income surged 62.5% to $898.2 million. Its operating margin expanded to 11.5% from 10.1%, primarily reflecting higher demand and improved execution across electric and power-generation services. Underground and Infrastructure revenues rose 30.7% year over year to $1.72 billion, with operating income jumping 71.7% to $155.8 million and margin expanding to 9.1% from 6.9%. Higher revenues from acquired civil and mechanical businesses supported better fixed-cost absorption. Overall consolidated operating income increased 87.6% year over year to $694.8 million, with operating margin rising to 7.3% from 5.5%.
The outlook remains favorable. Quanta expects 2026 revenue growth of 20%-25% in Electric Grid & Gas Utility, 10%-15% in Power Generation & Energy Storage and 220%-240% in Technology & Load Centers. Large multi-year programs across utility, generation and technology markets should support further growth. Recent acquisitions should provide an additional boost, contributing an estimated $1.2-$1.4 billion of revenues and $120-$140 million of adjusted EBITDA in 2026. Quanta also raised its full-year outlook, projecting net income of $1.74-$1.82 billion and adjusted EBITDA of $4.09-$4.21 billion.
While weather, permitting, regulatory and supply-chain risks could affect execution, improving margins, strong end-market demand and acquisition contributions suggest Quanta’s profit momentum has room to continue, even if the second quarter’s near-doubling pace moderates.
Quanta vs. EMCOR & AECOM: Which Profit Engine Has More Momentum?
Quanta is benefiting from strong infrastructure demand, improving execution and margin expansion, a backdrop that is also supporting growth opportunities for peers EMCOR Group, Inc. EME and AECOM ACM.
PWR’s second-quarter profit growth was particularly strong, with net income nearly doubling year over year as both of its operating segments delivered higher revenues and margins. EMCOR is showing a similar combination of revenue growth and operating leverage. In the second quarter of 2026, revenues increased 19.8% year over year to $5.15 billion, while operating income rose nearly 32% to $547.3 million and operating margin expanded 100 basis points to 10.6%. Second-quarter earnings advanced nearly 35% year over year to $9.06 per share. EMCOR’s record $17.14 billion of remaining performance obligations, up 44% year over year, also provides substantial visibility, with data centers, institutional projects, water and wastewater supporting demand.
AECOM’s underlying business also remains supported by strong project wins, although its near-term profitability picture is more mixed because of a $337 million construction-management project charge. Excluding that impact, adjusted EBITDA and EPS increased 5% and 11%, respectively, in the fiscal third quarter. Backlog rose 13% to an all-time high, supported by a 1.6x quarterly book-to-burn ratio, while management raised its adjusted EBITDA margin expectation to 17.4% from 17%. AECOM is also targeting a 20%+ margin exit rate by fiscal 2028, supported by higher utilization, technology efficiencies and growth across infrastructure, water, defense and data-center markets.
PWR’s Price Performance, Valuation & Estimates
PWR stock has rallied 44.9% in the year-to-date (YTD) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
PWR YTD Share Price Performance
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From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 36.18X, well above the industry’s 25.07X, as shown below.
PWR Valuation
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PWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.37 per share and $18.96, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 38.4% and 52.3%, respectively.
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PWR’s Zacks Rank
Quanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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