Quanta Services, Inc.
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ITEM 1.Business
OVERVIEW
Quanta Services, Inc. (together with its subsidiaries, “Quanta,” “we,” “us” or “our”) is a leading provider of comprehensive infrastructure solutions for the electric and gas utility, power generation, large load center, manufacturing, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. We provide design, engineering, procurement, construction, upgrade and repair and maintenance services for infrastructure within each of these industries, including electric power transmission and distribution networks; substation facilities; wind, solar and gas power generation and transmission and battery storage facilities; low voltage electrical, mechanical, plumbing and process infrastructure for large load centers, such as data center, advanced manufacturing, healthcare, pharmaceutical and industrial facilities; communications and cable multi-system operator networks; gas utility systems; pipeline transmission systems and facilities; and downstream industrial facilities. Our operations are decentralized and labor-intensive, and we rely on craft skilled labor personnel and experienced operators to successfully manage our day-to-day business. We also have an experienced management team, both at the executive and regional levels and within our subsidiaries, which we refer to as operating companies. We operate a fleet of owned and leased trucks and trailers, support vehicles and specialty construction equipment, as well as various proprietary technologies that enhance our service offerings. We have a large and diverse customer base, including many of the leading companies in the utility, renewable energy, hyperscaler, technology, communications, industrial and energy delivery markets.
The performance of our business generally depends on our ability to obtain contracts with customers and to effectively deliver the services provided under those contracts. Our services are typically provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction and engineering contracts. We offer comprehensive and diverse solutions on a broad geographic scale and have a solid base of long-standing customer relationships in each of the industries we serve. We believe our reputation for safety leadership, responsiveness and performance, geographic reach, comprehensive service offerings and financial strength have resulted in strong relationships with numerous customers, and we endeavor to develop and maintain strategic alliances and preferred service provider status with our customers.
We believe that our business strategies, along with our safety culture and financial resources, differentiate us from our competition and position us to benefit from future programmatic and capital spending by our customers. Our strategies include delivering and continuing to expand our portfolio of infrastructure solutions to existing and potential customers, developing our technological and training capabilities, remaining committed to the safety of our employees, and maintaining an entrepreneurial culture throughout our organization. We believe executing on these strategies places us in the position to be a solutions provider to our customers and capitalize on opportunities and trends in the industries we serve and expand our operations to select new markets.
SEGMENTS
During the three months ended March 31, 2025, Quanta’s Chief Executive Officer reevaluated how performance of the business is assessed and how resources are allocated, which resulted in a change in the reporting of management’s internal financial information. As a result, beginning with the three months ended March 31, 2025, Quanta began reporting the results of its two operating segments, which are also its two reportable segments: (1) Electric Infrastructure Solutions (Electric) and (2) Underground Utility and Infrastructure Solutions (Underground and Infrastructure). The Electric segment consists of the historical Electric Power Infrastructure Solutions and the Renewable Energy Infrastructure Solutions segments. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure.
Our entrepreneurial business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end user markets. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management.
We operate primarily in the United States; however, we derived approximately 7.0%, 8.7% and 14.2% of our revenues from foreign operations, primarily in Canada and Australia, during the years ended December 31, 2025, 2024 and 2023.
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Electric
Services
Our Electric segment provides comprehensive services primarily for the electric power grid, power generation and large load center markets. We believe our collaborative, customer-focused, and solutions-based approach, combined with our significant capabilities and scale, differentiate us in the marketplace. Services performed generally include:
•design, procurement, new construction, upgrade and repair and maintenance services for electric power transmission and distribution infrastructure, both overhead and underground, and substation facilities, along with other engineering and technical services, including services that support the implementation of upgrades by utilities to modernize and harden the electric power grid in order to ensure its safety and enhance reliability, to interconnect and transmit electricity from power generation and battery storage facilities and to accommodate increased residential and commercial use of electric vehicles;
•engineering, procurement, new construction (EPC), repowering and repair and maintenance services for renewable generation facilities, such as utility-scale wind, solar and hydropower generation facilities and battery storage facilities;
•emergency restoration services, including the repair of infrastructure damaged by fires and inclement weather;
•energized installation, maintenance and upgrade of electric power infrastructure utilizing our bare hand and hot stick methods and our robotic arm techniques;
•installation of “smart grid” technologies on electric power networks;
•design and installation of electrical systems for large load centers, such as data center, advanced manufacturing and industrial facilities;
•design and construction services to wireline and wireless communications companies, cable multi-system operators, technology companies and other customers within the communications industry;
•design, installation, maintenance and repair services related to commercial and industrial wiring; and
•aviation services primarily for the utility industry, including transportation of line workers, pole and tower setting, and wire stringing, as well as certain emergency aerial firefighting services.
This segment also includes (i) the majority of the financial results of our advanced training facility and our postsecondary educational institution, which specializes in pre-apprenticeship training, apprenticeship training and specialized utility task training for electric workers, as well as training for the gas distribution and communications industries; (ii) our portion of earnings of our unconsolidated integral affiliates, which includes, among others, our 50% equity interest in LUMA Energy, LLC (LUMA), a joint venture that was selected to operate, maintain, and modernize the approximately 18,000-mile electric transmission and distribution system in Puerto Rico; as well as our investment in a company that specializes in harvesting, treating and manufacturing wood utility poles and laminated wood products for utility and telecommunication companies; and (iii) financial results associated with our power transformer, circuit breaker and other manufacturing operations.
Business Environment
With respect to our electric infrastructure service offerings, utility and other customers are continuing to invest significant capital in their infrastructure systems and programs. Our utility customers continue to face increased demand for electricity, including as a result of electrification trends and increased demand for data center and other technology infrastructure and advanced manufacturing facilities. To accommodate this growth, we expect continued demand for new or expanded transmission, substation and distribution infrastructure to reliably transport power to meet demand driven by electrification, data centers and manufacturing reshoring, as well as the modification and reengineering of existing infrastructure with increasing penetration of renewable generation and battery storage and the increased investment in new gas-powered generation. Furthermore, in order to reliably and efficiently deliver power and in preparation for emerging technologies, utility customers are also integrating smart grid technologies into distribution systems to improve grid management and create efficiencies, and a number of utility customers continue to implement system upgrades and hardening programs in response to recurring severe weather events, including, among other things, initiatives to underground critical infrastructure. For example, utilities throughout the United States are executing storm hardening programs to make their systems more resilient to hurricanes and other severe weather events, and there are significant system resiliency initiatives underway in California and other regions in the United States that are designed to prevent and manage the impact of wildfires.
In addition, utility and other customers are increasing their investment in various forms of power generation in response to load growth expectations, which have accelerated based on demand for electricity driven by data centers, manufacturing and reshoring, industrialization, electrification and power grid expansion. Due to increased adoption and technological
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advancements and efficiencies, renewable generation has some of the lowest levelized costs of energy in the marketplace. When coupled with consumer and corporate preferences for clean energy and emissions-reduction initiatives, demand for renewable generation, energy storage, and related infrastructure has increased and is expected to result in sizable, long-term investments. Utility and other customers are also increasing their investments in other forms of base load power generation, such as combined cycle gas generation and gas peaker generation plants.
The development of power generation infrastructure can often necessitate the development and construction of related infrastructure, including high-voltage electric transmission and substation infrastructure, that is necessary to enhance grid resiliency and interconnect and transmit electricity from new generation facilities into the existing electric power grid. In addition, the investment of capital into the build out of data centers by technology customers in order to, among other things, expand cloud-based services and develop artificial intelligence (AI) training and inference, increases demand for our solutions offerings. In particular, we believe Quanta is well positioned to provide turnkey infrastructure solutions for these facilities, such as critical-path low-voltage electrical infrastructure solutions inside data centers (e.g., advanced manufactured and modular solutions); high-voltage substation, transformer and transmission interconnection infrastructure to connect the facilities to the power grid; and generation infrastructure necessary to power the facilities. These overall market dynamics support demand for our capabilities and our solutions-based approach for our high-quality customers.
With respect to our communications service offerings, which are focused on the North American market, consumer and commercial demand for communication and data-intensive, high-bandwidth wireline and wireless services and applications are driving significant investment in infrastructure and the deployment of new technologies. In particular, we believe there are opportunities to provide fiber and other services in and around data centers, and to interconnect data centers. Communications providers are utilizing fifth generation wireless (5G) infrastructure to support fixed wireless access, which is driving additional fiber capacity requirements for consumer and commercial applications. Additionally, legislative and regulatory initiatives, including the Broadband Equity Access and Deployment (BEAD) Program, have dedicated billions of dollars of funding to support broadband service to underserved markets.
Underground and Infrastructure
Services
Our Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products, as well as customers that own and operate large load centers. Services performed generally include:
•design, engineering, procurement, new construction, upgrade and repair and maintenance services for natural gas systems for gas utility customers;
•pipeline protection, integrity testing, rehabilitation and replacement services;
•catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services for the midstream and downstream industrial energy markets, as well as specialty cleaning and environmental solutions for the industrial energy and petrochemical markets;
•engineering and construction services for pipeline systems, storage systems and compressor and pump stations and the fabrication of pipeline support systems and related structures and facilities;
•trenching, directional boring and mechanized welding services related to the services described above;
•civil solutions, including site clearing, earthwork, soil stabilization and infrastructure development;
•turnkey mechanical, plumbing and process infrastructure solutions for large load centers in the technology, semiconductor, healthcare and other industries; and
•engineering, construction and maintenance services for energy transition and carbon-reduction related projects, such as alternative fuel facilities, carbon capture systems and hydrogen facilities.
Business Environment
With respect to gas utility services, pipeline integrity and transmission services and downstream industrial services, we believe these are specialty services and industries that are driven by regulated utility spending; regulation, replacement and rehabilitation of aging infrastructure; and safety and environmental initiatives. We believe this provides a greater level of business sustainability and predictability and helps to offset the cyclicality of larger pipeline projects described below. Natural gas utilities have implemented multi-decade modernization programs to replace aging cast iron, bare steel and plastic system infrastructure with modern materials for safety, reliability and environmental purposes, and regulatory measures have increased the frequency and stringency of pipeline integrity testing requirements that require our customers to test, inspect, repair, maintain and replace pipeline infrastructure to ensure that it operates in a safe, reliable and environmentally conscious manner.
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Further, permitting challenges associated with construction of new pipelines can make existing pipeline infrastructure more valuable, motivating owners to extend the useful life of existing pipeline assets through integrity initiatives. Additionally, with respect to our downstream industrial services, including our high-pressure and critical-path turnaround services, as well as our capabilities with respect to instrumentation and electrical services, piping, fabrication and storage tanks services, and other industrial services, we are focused on processing facilities located along the U.S. Gulf Coast region, which we believe should have certain long-term strategic advantages due to their proximity to competitively priced and abundant hydrocarbon resources.
Our revenues related to larger pipeline services have fluctuated in recent years. For example, revenues associated with larger U.S. pipeline projects have declined significantly as the pipeline and related infrastructure development necessary to support U.S. shale formations has largely been completed in the near term and as a result of a more challenging permitting and regulatory environment. Revenues associated with large pipeline projects have decreased in recent years, as compared to prior years, and we anticipate that revenues associated with these projects will continue to fluctuate. Despite these fluctuations and cyclicality, we continue to selectively pursue larger pipeline project opportunities to the extent they satisfy our margin and risk profiles. Additionally, the significant increase in demand for electric power is resulting in an increase in planning for new natural gas generation facilities, as well as delays in the retirement of existing facilities, which could in turn increase the demand for additional pipeline, related infrastructure and integrity services.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
General
The following discussion and analysis of the financial condition and results of operations of Quanta Services, Inc. (together with its subsidiaries, Quanta, we, us or our) should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report and with our 2025 Annual Report, which was filed with the SEC on February 19, 2026 and is available on the SEC’s website at www.sec.gov and on our website at www.quantaservices.com. The discussion below contains forward-looking statements that are based upon our current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties, including those identified in Cautionary Statement About Forward-Looking Statements and Information above, in Item 1A. Risk Factors of Part II of this Quarterly Report and in Item 1A. Risk Factors in Part I of our 2025 Annual Report.
Overview
Our second quarter 2026 results reflect increased demand for our services, as consolidated revenues and operating income increased as compared to the second quarter of 2025, with increased revenues and operating income in both our Electric Infrastructure Solutions (Electric) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure) segments.
With respect to our Electric segment, utilities are continuing to invest significant capital in their electric power delivery systems through multi-year grid modernization and reliability programs, as well as system upgrades and hardening programs in response to recurring severe weather events. We have also experienced high demand for new and expanded transmission, substation and distribution infrastructure needed to reliably transport power. In particular, we continue to experience strong demand from our utility customers, which we believe is driven by increasing demand for electricity associated with, among other things, data centers and other technology-related dynamics, domestic manufacturing reshoring initiatives and overall electrification trends. Recent acquisitions also resulted in increased demand for our critical path electrical design and installation solutions from the technology and data center industry, as well as our utility scale solar and battery storage solutions. The cost-effectiveness of solar, wind energy and battery storage, combined with a meaningful increase in current and forecasted electricity demand is continuing to drive demand for renewable generation and related infrastructure (e.g., high-voltage electric transmission and substation infrastructure and battery storage), as well as interconnection services necessary to connect and transmit renewable-generated electricity to existing electric power delivery systems. Despite these positive longer-term trends, in the past, supply chain challenges, policy and regulatory uncertainty and other factors have resulted in project delays and increased project costs and could negatively impact future periods.
With respect to our Underground and Infrastructure segment, we continue to believe the market for our industrial solutions and gas utility and pipeline integrity services remains solid given the recurring critical-path maintenance requirements and regulated spend dedicated to modernizing systems, reducing methane emissions, ensuring environmental compliance and improving safety and reliability. However, revenues associated with large pipeline projects have fluctuated in recent years, and we anticipate that revenues associated with these projects will continue to fluctuate. Our acquisition of Dynamic Systems (DSI), LLC (Dynamic Systems) during 2025 expanded our capabilities and solutions related to turnkey mechanical, plumbing and process infrastructure solutions. Additionally, acquisitions in 2025 enhanced our ability to provide heavy civil and site preparation construction services for the industrial, energy and technology and load center markets. We see strong demand for these services by data center, manufacturing, semiconductor and other large load facilities and believe there are also opportunities to provide these services to other core end markets.
During the six months ended June 30, 2026, increased revenues and operating income contributed to $1.49 billion of net cash provided by operating activities, which was a 176% increase compared to the six months ended June 30, 2025. This cash provided by operating activities, along with borrowings under our credit facility and commercial paper program, allowed us to execute our business plan, including the strategic acquisitions of certain businesses and investments in unconsolidated affiliates, for which we utilized $956.9 million of cash, and payments of $33.7 million in dividends associated with our common stock. Additionally, as of June 30, 2026, available commitments under our senior credit facility, combined with our cash and cash equivalents, totaled $2.77 billion.
We expect the strong demand for our services will continue. Our remaining performance obligations and backlog were $33.55 billion and $53.44 billion as of June 30, 2026, representing increases of 41.2% and 21.5% relative to December 31, 2025. For a reconciliation of backlog to remaining performance obligations, the most comparable financial measure prepared in conformity with generally accepted accounting principles in the United States (GAAP), see Non-GAAP Financial Measures below.
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Significant Factors Impacting Results
Our revenues, profit, margins and other results of operations can be influenced by a variety of factors in any given period, including those described in Item 1. Business and Item 1A. Risk Factors of Part I in our 2025 Annual Report, and those factors have caused fluctuations in our results in the past and are expected to cause fluctuations in our results in the future. Additional information with respect to certain of those factors is provided below.
Seasonality. Typically, our revenues are lowest in the first quarter of the year because cold, snowy or wet conditions can create challenging working environments that are more costly for our customers or cause delays on projects. In addition, infrastructure projects often do not begin in a meaningful way until our customers finalize their capital budgets, which typically occurs during the first quarter. Second quarter revenues are typically higher than those in the first quarter, as some projects begin, but continued cold and wet weather can often impact productivity. Third and fourth quarter revenues are typically the highest of the year, as a greater number of projects are underway and operating conditions, including weather, are normally more accommodating. During the fourth quarter projects are often completed and customers often seek to spend their capital budgets before year end. However, the holiday season and inclement weather can sometimes cause delays during the fourth quarter, reducing revenues and increasing costs. These seasonal impacts are typical for our U.S. operations, but seasonality for our international operations may differ. For example, revenues for certain projects in Canada are typically higher in the first quarter because projects are often accelerated in order to complete work while the ground is frozen and prior to the break up, or seasonal thaw, as productivity is adversely affected by wet ground conditions during warmer months.
Weather, natural disasters and emergencies. The results of our business in a given period can be impacted by adverse weather conditions, severe weather events, natural disasters or other emergencies, which include, among other things, heavy or prolonged snowfall or rainfall, hurricanes, tropical storms, tornadoes, floods, blizzards, extreme temperatures, wildfires, post-wildfire floods and debris flows, pandemics and earthquakes. Climate change has the potential to increase the frequency and extremity of severe weather events. These conditions and events can negatively impact our financial results due to, among other things, the termination, deferral or delay of projects, reduced productivity and exposure to significant liabilities due to failure of electrical power or other infrastructure on which we have performed services. However, severe weather events can also increase our emergency restoration services, which typically yield higher margins due in part to higher equipment utilization and absorption of fixed costs.
Demand for services. Some of our services are provided under contracts, including MSAs and similar agreements pursuant to which our customers are not committed to specific volumes of our services. Therefore our volume of business can be positively or negatively affected by fluctuations in the amount of work our customers assign us in a given period, which may vary by geographic region. Examples of items that may cause demand for our services to fluctuate materially from quarter to quarter include: the financial condition of our customers, their capital spending and their access to and cost of capital; acceleration of any projects or programs by customers (e.g., modernization or hardening programs); economic and political conditions on a regional, national or global scale, including availability of renewable energy tax credits; interest rates; governmental regulations affecting the sourcing and costs of materials and equipment; other changes in U.S. and global trade relationships (e.g., tariffs, taxes); and project deferrals and cancellations.
Revenue mix and impact on margins. The mix of revenues based on the types of services we provide in a given period will impact margins, as certain industries and services provide higher-margin opportunities. Our larger or more complex projects typically include, among others, transmission projects with higher voltage capacities; pipeline projects with larger-diameter throughput capacities; large-scale power generation projects; complex data center projects; and projects with increased engineering, design or construction complexities, more difficult terrain or geographical requirements, or longer distance requirements. These projects typically yield opportunities for higher margins than our recurring services under MSAs described above, as we assume a greater degree of performance risk and there is greater utilization of our resources for longer construction timeframes. However, larger projects are subject to additional risk of regulatory delay and cyclicality. Project schedules also fluctuate, particularly in connection with larger, more complex or longer-term projects, which can affect the amount of work performed in a given period. Furthermore, smaller or less complex projects typically have a greater number of companies competing for them, and competitors at times may more aggressively pursue available work. A greater percentage of smaller scale or less complex work also could negatively impact margins due to the inefficiency of transitioning between a greater number of smaller projects versus continuous production on fewer larger projects. As a result, at times we may choose to maintain a portion of our workforce and equipment in an underutilized capacity to ensure we are strategically positioned to deliver on larger projects when they move forward.
Project variability and performance. Margins for a single project may fluctuate period to period due to changes in the volume or type of work performed, the pricing structure under the project contract or job productivity. Additionally, our productivity and performance on a project can vary period to period based on a number of factors, including unexpected project
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difficulties or site conditions (including in connection with difficult geographic characteristics); project location, including locations with challenging operating conditions; whether the work is on an open or encumbered right of way; inclement weather or severe weather events; environmental restrictions or regulatory delays; protests, public activism, other political activity or legal challenges related to a project; and the performance of third parties. Moreover, we currently generate a significant portion of our revenues under fixed price contracts, and fixed price contracts are more common in connection with our larger and more complex projects that typically involve greater performance risk. Under these contracts, we assume risks related to project estimates and execution, and project revenues can vary, sometimes substantially, from our original projections due to a variety of factors, including the additional complexity, timing uncertainty or extended bidding, regulatory and permitting processes associated with these projects. These variations can result in a reduction in expected profit, the incurrence of losses on a project or the issuance of change orders and/or assertion of contract claims against customers. See Contract Estimates and Changes in Estimates in Note 2 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.
Subcontract work and provision of materials. Work that is subcontracted to other service providers generally yields lower margins, and therefore an increase in subcontract work in a given period can decrease operating margins. In recent years, we have subcontracted approximately 15% to 20% of our work to other service providers. Additionally, under certain contracts, including contracts for engineering, procurement and construction services, we agree to procure all or part of the required materials. While we attempt to structure our agreements with customers and suppliers to account for the impact of increased materials procurement requirements or fluctuations in the cost of materials we procure, our margins may be lower on projects where we furnish a significant amount of materials, as our markup on materials is generally lower than our markup on labor costs, and in a given period an increase in the percentage of work with greater materials procurement requirements may decrease our overall margins, including in some cases our assuming price risk. Furthermore, fluctuations in the price or availability of materials, equipment and consumables that we or our customers utilize could impact costs to complete projects.
Results of Operations
Consolidated Results
Three months ended June 30, 2026 compared to the three months ended June 30, 2025
The following table sets forth selected statements of operations data, such data as a percentage of revenues for the periods indicated, as well as the dollar and percentage change from the prior period (dollars in thousands).
| Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 9,556,997 | 100.0 | % | $ | 6,773,007 | 100.0 | % | $ | 2,783,990 | 41.1 | % | ||||||||||||||||||||||||||||||||||||||
| Cost of services | 8,011,819 | 83.8 | 5,765,433 | 85.1 | 2,246,386 | 39.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 1,545,178 | 16.2 | 1,007,574 | 14.9 | 537,604 | 53.4 | % | |||||||||||||||||||||||||||||||||||||||||||
| Equity in earnings of integral unconsolidated affiliates | 11,590 | 0.1 | 14,444 | 0.2 | (2,854) | (19.8) | % | |||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | (698,490) | (7.3) | (528,355) | (7.8) | (170,135) | 32.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | (156,957) | (1.6) | (113,178) | (1.6) | (43,779) | 38.7 | % | |||||||||||||||||||||||||||||||||||||||||||
| Increase in fair value of contingent consideration liabilities | (6,487) | (0.1) | (10,203) | (0.2) | 3,716 | (36.4) | % | |||||||||||||||||||||||||||||||||||||||||||
| Operating income | 694,834 | 7.3 | 370,282 | 5.5 | 324,552 | 87.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Interest and other financing expenses | (73,548) | (0.8) | (59,579) | (0.9) | (13,969) | 23.4 | % | |||||||||||||||||||||||||||||||||||||||||||
| Interest income | 3,307 | — | 3,782 | 0.1 | (475) | (12.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (7,430) | — | 4,138 | — | (11,568) | (279.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 617,163 | 6.5 | 318,623 | 4.7 | 298,540 | 93.7 | % | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 157,584 | 1.7 | 85,100 | 1.3 | 72,484 | 85.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Net income | 459,579 | 4.8 | 233,523 | 3.4 | 226,056 | 96.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 8,198 | 0.1 | 4,273 | — | 3,925 | 91.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stock | $ | 451,381 | 4.7 | % | $ | 229,250 | 3.4 | % | $ | 222,131 | 96.9 | % | ||||||||||||||||||||||||||||||||||||||
Revenues. Revenues increased due to a $2.38 billion increase in revenues from our Electric segment and a $404.3 million increase in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.
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Cost of services. Costs of services primarily includes wages, benefits, subcontractor costs, materials, equipment, and other direct and indirect costs, including related depreciation. The increase in cost of services correlates to the increase in revenues.
Selling, general and administrative expenses. The increase was primarily attributable to an $71.8 million increase in compensation expense largely due to increase in headcount to support business growth and increased levels of variable compensation due to increased profitability, as well as $60.8 million related to recently acquired businesses. Also contributing to the increase was a $29.4 million increase in travel, professional fees and information technology expenses.
Amortization of intangible assets. The increase was related to incremental amortization expense associated with acquisitions since June 30, 2025, including the acquisition of Dynamic Systems.
Operating income. Operating income was positively impacted by a $345.6 million increase in operating income for our Electric segment and a $65.1 million increase in operating income for our Underground and Infrastructure segment, partially offset by an $86.1 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.
Interest and other financing expenses. The majority of the increase resulted from higher levels of principal on fixed rate debt balances as compared to the three months ended June 30, 2025. This increase resulted primarily from the issuance of $1.50 billion of aggregate principal amount of senior notes in August 2025.
Provision for income taxes. The effective income tax rates for the three months ended June 30, 2026 and 2025 were 25.5% and 26.7%. The lower effective tax rate for the three months ended June 30, 2026 was primarily due to changes in the mix of earnings across the jurisdictions in which we operate.
Comprehensive income attributable to common stock. See Statements of Comprehensive Income in Item 1. Financial Statements of Part I of this Quarterly Report. Comprehensive income attributable to common stock increased by $126.3 million in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 primarily due to a $226.1 million increase in net income, partially offset by a $95.9 million decrease in foreign currency translation adjustments. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. The decrease in foreign currency translation adjustments primarily resulted from the strengthening of the U.S. dollar against the Canadian dollar.
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
The following table sets forth selected statements of operations data, such data as a percentage of revenues for the periods indicated, as well as the dollar and percentage change from the prior period (dollars in thousands):
| Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 17,431,784 | 100.0 | % | $ | 13,006,341 | 100.0 | % | $ | 4,425,443 | 34.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | 14,779,277 | 84.8 | 11,164,730 | 85.8 | 3,614,547 | 32.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 2,652,507 | 15.2 | 1,841,611 | 14.2 | 810,896 | 44.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in earnings of integral unconsolidated affiliates | 26,059 | 0.1 | 27,373 | 0.2 | (1,314) | (4.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | (1,319,216) | (7.6) | (1,022,321) | (7.9) | (296,895) | 29.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | (309,338) | (1.7) | (222,740) | (1.7) | (86,598) | 38.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration liabilities | (16,399) | (0.1) | (14,560) | (0.1) | (1,839) | 12.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income | 1,033,613 | 5.9 | 609,363 | 4.7 | 424,250 | 69.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and other financing expenses | (146,815) | (0.8) | (113,891) | (0.9) | (32,924) | 28.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 6,215 | — | 7,623 | 0.1 | (1,408) | (18.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (19,494) | (0.1) | 4,377 | — | (23,871) | (545.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 873,519 | 5.0 | 507,472 | 3.9 | 366,047 | 72.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 182,509 | 1.0 | 124,980 | 1.0 | 57,529 | 46.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 691,010 | 4.0 | 382,492 | 2.9 | 308,518 | 80.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 19,004 | 0.1 | 8,984 | — | 10,020 | 111.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stock | $ | 672,006 | 3.9 | % | $ | 373,508 | 2.9 | % | $ | 298,498 | 79.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
36
Revenues. Revenues increased due to a $3.90 billion increase in revenues from our Electric segment and a $521.4 million increase in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.
Cost of services. Costs of services primarily includes wages, benefits, subcontractor costs, materials, equipment, and other direct and indirect costs, including related depreciation. The increase in cost of services correlates to the increase in revenues.
Selling, general and administrative expenses. The increase was primarily attributable to a $133.8 million increase in compensation expense largely due to increase in headcount to support business growth and increased levels of variable compensation due to increased profitability, as well as $112.8 million related to recently acquired businesses. Also contributing to the increase was a $50.5 million increase in travel, professional fees and information technology expenses.
Amortization of intangible assets. The increase was related to incremental amortization expense associated with acquisitions since June 30, 2025, primarily the acquisitions of Dynamic Systems.
Operating income. Operating income was positively impacted by a $498.5 million increase in operating income for our Electric segment and a $93.8 million increase in operating income for our Underground and Infrastructure segment, partially offset by a $168.1 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.
Interest and other financing expenses. The majority of the increase resulted from higher levels of principal on fixed rate debt balances as compared to the six months ended June 30, 2025. This increase resulted primarily from the issuance of $1.50 billion of aggregate principal amount of senior notes in August 2025.
Provision for income taxes. The effective income tax rates for the six months ended June 30, 2026 and 2025 were 20.9% and 24.6%. The lower effective tax rate for the six months ended June 30, 2026 was primarily due to a $35.9 million higher U.S. federal and state tax benefit from vesting of equity incentive awards.
Comprehensive income attributable to common stock. See Statements of Comprehensive Income in Item 1. Financial Statements of Part I of this Quarterly Report. Comprehensive income attributable to common stock increased by $190.6 million in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to a $308.5 million increase in net income, partially offset by a $106.5 million decrease in foreign currency translation adjustments. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. The decrease in foreign currency translation adjustments primarily resulted from the strengthening of the U.S. dollar against the Canadian dollar.
Segment Results
Reportable segment information, including revenues and operating income by type of work, is gathered from each of our operating companies. Classification of our operating company revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Integrated operations and common administrative support for operating companies require that certain allocations be made to determine segment profitability, including allocations of corporate shared and indirect operating costs, as well as general and administrative costs. Certain corporate costs are not allocated, including corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairments related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.
37
The following tables set forth segment revenues, segment operating income, corporate and non-allocated costs and operating margins for the periods indicated, as well as the dollar and percentage changes from the prior periods (dollars in thousands):
Three months ended June 30, 2026 compared to the three months ended June 30, 2025
| Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
Electric | $ | 7,837,805 | 82.0 | % | $ | 5,458,074 | 80.6 | % | $ | 2,379,731 | 43.6 | % | ||||||||||||||||||||||||
| Underground and Infrastructure | 1,719,192 | 18.0 | 1,314,933 | 19.4 | 404,259 | 30.7 | % | |||||||||||||||||||||||||||||
| Consolidated revenues | $ | 9,556,997 | 100.0 | % | $ | 6,773,007 | 100.0 | % | $ | 2,783,990 | 41.1 | % | ||||||||||||||||||||||||
| Operating income (loss): | ||||||||||||||||||||||||||||||||||||
Electric | $ | 898,225 | 11.5 | % | $ | 552,620 | 10.1 | % | $ | 345,605 | 62.5 | % | ||||||||||||||||||||||||
| Underground and Infrastructure | 155,772 | 9.1 | % | 90,703 | 6.9 | % | 65,069 | 71.7 | % | |||||||||||||||||||||||||||
| Corporate and non-allocated costs | (359,163) | (3.8) | % | (273,041) | (4.0) | % | (86,122) | 31.5 | % | |||||||||||||||||||||||||||
| Consolidated operating income | $ | 694,834 | 7.3 | % | $ | 370,282 | 5.5 | % | $ | 324,552 | 87.6 | % | ||||||||||||||||||||||||
Next expected filings
- ~2026-10-29 10-Q expected by 2026-11-07 (in 46 days)
- ~2027-02-18 10-K expected by 2027-02-19 (in 158 days)
- ~2027-04-29 10-Q expected by 2027-05-08 (in 228 days)
- ~2027-07-29 10-Q expected by 2027-08-07 (in 319 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-08-05 424B5 Prospectus Supplement
- 2026-08-04 8-K Material Agreement Entered; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-07-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-07-30 10-Q Quarterly Report
- 2026-05-27 8-K Shareholder Vote Results; Other Events; Financial Statements and Exhibits
- 2026-04-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-30 10-Q Quarterly Report
- 2026-04-16 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-04-10 DEF 14A Proxy Statement
- 2026-03-04 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-02-19 10-K Annual Report
- 2026-02-19 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-10-30 10-Q Quarterly Report
- 2025-10-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-08-07 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits