Quanta Services, Inc. 2026 Q3 Earnings Call

Thank you, and welcome everyone to the Quanta Services third quarter 2026 earnings conference call. This morning we issued a press release announcing our third quarter 2026 results, which can be found in the Investor Relations section of our website at quantaservices.com. This morning we also posted our third quarter 2026 operational and financial commentary, and our 2026 outlook expectation summary on Quanta's Investor Relations website. While management will make brief introductory remarks during this morning's call, the operational and financial commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community. Please remember the information reported on this call speaks only as of today, October 29, 2026, and therefore, you're advised that any time-sensitive information may no longer be accurate as of any replay of this call.

This call will include forward-looking statements intended to qualify under the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements reflecting expectations, intentions, assumptions, or beliefs about future events or financial performance. You should not place undue reliance on these statements as they involve certain risks, uncertainties, and assumptions that are difficult to predict or beyond Quanta's control, and actual results may differ materially from those expressed or implied. We will also present certain historical and forecasted non-GAAP financial measures. Reconciliations of these financial measures to their most directly comparable GAAP financial measures are included in our earnings release and operational financial commentary. Please refer to these documents for additional information regarding our forward-looking statements and non-GAAP financial measures.

Lastly, please sign up for email alerts through the Investor Relations section of quantaservices.com to receive notifications of news releases and other information, and follow Quanta IR and Quanta Services on the social media channels listed on our website. With that, I will now turn the call over to Mr. Duke Austin, Quanta's President and CEO.

Duke? Thanks, Kip. Good morning, everyone, and welcome to Quanta Services third quarter 2026 earnings conference call.

I want to begin by thanking our approximately 95,000 employees. Their commitment to safety, to our culture of absolute performance, and to the certainty we deliver for our customers makes everything we will discuss this morning possible. This morning, we reported third quarter results that meaningfully exceeded expectations, with robust double-digit growth in revenues, adjusted EBITDA, and adjusted EPS, healthy cash flow, and record backlog of $64 billion. These results reflect broad-based strength across our segments, service lines, and end markets, and also the successful multiyear strategy we are executing and the investments we have made in it. Given this outperformance and the expected incremental strength in the fourth quarter, we are significantly increasing our full year 2026 financial expectations across all metrics.

This quarter, again, demonstrated the ability for our operating model to deliver with certainty at scale. The breadth of our portfolio, combined with the fungibility of our skilled workforce across multiple end markets, provides a significant competitive advantage. This flexibility allows us to strategically deploy resources where demand is strongest, mitigate exposure to individual market cycles, and deliver more consistent, predictable outcomes for our customers and stockholders. Quanta is embedded in the long-term planning of our industry-leading customers across the utility, power generation, and large load markets, and inbound demand is accelerating. We stay in front of our markets by remaining deeply customer-focused.

Our customers want a partner that can plan with them for years in advance, align craft labor and supply chain solutions to their capital programs, and bring certainty to their projects and programs at a reasonable cost and in a way that delivers lasting economic benefits to the communities where these projects are built. Our reputation for delivering and our ability to mobilize people and supply chain quickly is driving the demand for our solutions. That reputation was built in our utility business, which remains the foundation of Quanta. Utilities are being asked to double in size over time, and we believe the need to significantly expand and enhance the power grid for reliability, resiliency, and load growth is visible and necessary.

We expect additional opportunities, including high voltage transmission, power generation, large load and technology to stack on top of what we view as long duration compounding utility base, where we continue to extend our leadership position. These opportunities extend our visibility well beyond 2030. We see large transmission programs across the country making positive progress, from permitting and approvals to planning and engineering, and moving closer to contract execution and backlog. Power generation opportunities are also active and in various stages. We are encouraged by the stacking opportunity we see across our diverse markets building over the coming years. Technology is moving as fast as it can. Utilities are working to protect stakeholders, and Quanta sits at the nexus of facilitating both. The proven success of our operating model on the utility side of the business is also why technology and large load customers are embracing it.

The collaborative solution-based approach we have built over decades serving utilities is exactly what we bring to those customers. As evidenced by our results this year, the demand for our solution is significant and growing. In this market environment, our scope and scale, the fungibility of our resources, and the solutions they enable are valuable. Committing our resources to the best overall opportunities has never been more important. We prioritize high quality, well-capitalized, industry-leading customers that value our collaborative long-term approach and have multi-year infrastructure programs. We believe the power of our portfolio is that it does not overly rely on the pace of a single market. It builds on broad, diverse, and resilient base and is supported by increasingly flexible craft workforce. Our self-perform model is designed to deliver on time and on budget at scale. None of this is possible without our craft labor.

You cannot buy craft, you have to build it. We are investing in curriculum and innovative training programs across our operations and creating industry leading training environments, which allows us to attract and retain talent. We are growing our foreman and superintendent leadership, which we believe has a multiplier effect on our ability to enhance our craft and self-perform capabilities. Craft builds craft. We have invested heavily in our workforce for more than a decade. With a decade of strong double-digit compound earnings growth, the results speak for themselves. We are also investing in the expansion of our integrated fabrication solutions, which we believe is a workforce multiplier that increases speed and efficiency, quality, and schedule certainty. We apply the same absolute performance mindset to our capital deployment decisions. Each high-quality company that has joined Quanta is a relationship often cultivated over many years.

We are patient in buying great companies, and we are disciplined around our strategy, with culture and fit a primary criteria. Our recently completed acquisitions are great companies that strengthen our fabrication, engineering, and supply chain capabilities and extend our ability to deliver integrated solutions for customers, and we welcome them to the Quanta family. We are proud of the exceptional results our teams have delivered this year, and the larger programs across the utility, generation, and technology and load center markets are still in front of us. We are pacing ahead of the multi-year growth targets outlined at our 2026 Investor Day, and our conviction in Quanta's ability to compound profitable growth over the longer term continues to strengthen. We see the opportunity to deliver strong double-digit adjusted EPS growth again in 2027, supported by our record backlog and growing workforce.

We remain focused on executing our customer success, deploying capital with discipline, and compounding earnings and stockholder value over the longer term. I will now turn the call over to Jayshree Desai, Quanta's CFO, to provide a few remarks about our results and 2026 guidance, and then we will take your question.

Jayshree? Thanks, Duke, and good morning, everyone.