Thank you, and welcome everyone to the Quanta Services second quarter 2026 earnings conference call. This morning, we issued a press release announcing our second quarter 2026 results, which can be found in the Investor Relations section of our website at quantaservices.com.

This morning, we also posted our second quarter 2026 operational and financial commentary and our 2026 outlook expectations 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 that information reported on this call speaks only as of today, July 30, 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 and financial commentary. Please refer to these statements 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 would like to now turn the call over to Mr.

Duke Austin, Quanta's President and CEO. Duke?

Thanks, Kip. Good morning, everyone, and welcome to the Quanta Services second quarter 2026 earnings conference call.

I want to begin by recognizing our people in the field. Everything we're about to discuss starts with our more than 85,000 employees and the execution they deliver for our customers safely, on time, and on budget every day.

This morning, we reported second quarter results that meaningfully exceeded expectations, with strong double-digit growth in revenues, adjusted EBITDA, and adjusted earnings per share, robust cash flow, and record backlog of $53 billion. Given when these acquisitions closed, their contribution to the quarter was minimal.

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. During the second quarter and July, we completed the acquisitions of Falcon, Enerfab, Percheron, and PST.

We welcome each of these excellent companies and their employees to the Quanta family. These acquisitions enhance our geographic presence and continue our strategy to scale self-perform craft skill capabilities across electrical, mechanical, civil, and fabrication, and to lean in to the front end of our customers' programs, where the work takes shape and where getting involved early maximizes the value we can deliver.

These are companies that have executed successfully for decades, and whose owners and leadership came up through the craft, with customer relationships often built over generations. These acquisitions strengthen our position in technology and load centers, while adding meaningfully diversification across end markets we've served for decades.

Quanta runs on a culture of absolute performance, and is dedicated to the continuous improvement and the success of our customers. Every acquisition has to fit our strategy, and the culture has to fit.

That is the first thing we evaluate, and something we do not compromise. When a company that has built its name over 50 or 100 years decides to join Quanta, they are choosing a home that protects their legacy, keeps their management team, and gives their people more opportunity than they could create alone.

Our solutions-based model is performing well, creating markets and unlocking growth opportunities because it is a platform that brings our customers industry-leading capabilities, scope, and scale, with the largest craft workforce in North America at the center. The rigor we built over decades serving utilities, the planning, the safety, and programmatic execution, is exactly what we are bringing to technology and load center and generation markets.

Technology is trying to move as fast as possible. Utilities are working to protect the ratepayer.

Quanta sits in the middle of the nexus, providing solutions to both. Our customers realize how important speed and certainty is.

The trust and track record we have built over decades is what differentiates Quanta. Quanta's core strategy remains grounded in craft skill labor, execution certainty, and disciplined capital deployment.

Craft is built over time, and we prioritize that investment for well over a decade. We self-perform 80% to 85% of our work, which is what allows us to deliver on time and on budget at scale.

That certainty quarter after quarter and year after year is what our customers count on. It's what has produced record adjusted EPS for the last nine consecutive years, and why our customers keep asking us to do more.

As a result of our strong first half, improved visibility into the remainder of the year, and expected contributions from the acquisitions announced this morning, we are significantly increasing our full-year 2026 financial expectations across all metrics. The record backlog we reported reflects the demand in front of us, but we're still in the early stages.

These larger programs across utility, generation, and technology load center markets are ahead of us, and we expect them to stack in the years to come. In many ways, we are just getting started.

We remain focused on executing for our customers' success, deploying capital with discipline, and compounding earnings and shareholder value over the long 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.

Then we will take your questions. Jayshree?

Thanks, Duke, and good morning, everyone. This morning, we reported historically strong second quarter results, with revenues of $9.6 billion, net income attributable to common stock of $451 million, or $2.96 per diluted share, adjusted diluted earnings per share of $4.24, and adjusted EBITDA of $1.1 billion.

Those results included approximately $11 million of adjusted EBITDA from acquisitions made during the second quarter. The performance in the first half of 2026 exceeded our initial expectations, led by the strength of our end markets and our strategies in action.

The versatility of our workforce and our customer-centric delivery model are translating to greater scope, better resource utilization, elevated revenues, and improved margins. Our customers are increasingly recognizing how the breadth of our capabilities can contribute to their success, as evidenced by another quarter of record backlog.

Given the strength of our first-half performance, improved visibility into the second half, and expected contributions from recent acquisitions, we are raising our full-year financial expectations. We now expect revenues to range between $39.3 and $39.7 billion, adjusted EBITDA to range between $4.1 and $4.2 billion, adjusted EPS to range between $16.45 and $16.95, and free cash flow to range between $2 and $2.5 billion.

As Duke described, subsequent to our first quarter earnings release, we acquired four companies for approximately $1.24 billion of upfront consideration, net of cash acquired, plus approximately $242 million of contingent consideration that can be earned based on financial performance in the years following the closing. Included within our increased full-year financial expectations are $1.2 to $1.4 billion of revenues and $120 to $140 million of adjusted EBITDA from these acquisitions.

Importantly, as evidenced by the ratings upgrade by Moody's, our balance sheet and credit profile strengthened even as we deployed capital on the aforementioned acquisitions. As calculated under our senior credit agreement, at the end of the second quarter, our debt-to-EBITDA ratio improved to 1.7, down from 1.95 at the end of 2025, and we had total liquidity of approximately $2.8 billion.

The larger programs, broader service offerings, and multi-year commitments we are negotiating every day are a direct reflection of the trust our customers place in our ability to execute at scale. Combined with the disciplined way we're allocating capital across our strategic initiatives, we believe we're well positioned to keep converting that trust into durable, attractive returns for our shareholders.

Additional detail and commentary on our 2026 financial guidance can be found in our operational and financial commentary and outlook expectation summary, both available on our Investor Relations website. With that, we're happy to take your questions.

Can you hear me?

Yes, now we can.

Sorry about that.

No

worries. Just was saying, congrats on the strong beat across your business in the quarter.

Maybe focusing on the strong margin performance, I know you've been Duke a little bit reserved and Jayshree on the margin upside messaging. I guess, to what extent do you now think maybe a little bit more positively longer-term about the margin potential here as you have more self-perform and you've got more large load projects becoming more of the mix?

I guess, any reason why that wouldn't add to some margin upside over the longer term?

Thanks Steven. Thanks for the comments about the quarter.

I think when we're looking at the margin profile, we said the UI segment had some room, and we felt like it would move up. The businesses that we've acquired, how we'd look at that business today, the risk we're willing to take certainly is moving that profile up, and you're seeing that in the quarter.

I believe you'll see that on a go-forward basis. That moved up.

Electric as well, I think we move that up as well on the backside. Look, structurally, fundamentally, the business has changed.

We're seeing it change. We have two addressable TAMs, both of which are growing.

That mix, we're looking at it constantly to make sure that we're giving you good prudent guidance. I do think we posted a real nice quarter.

We were prudent in the guidance that we gave you in the back half. You're seeing synergy show up.

We're seeing a lot of book-to-burn. I do believe there is some room in the margins on the backside.

We took prudent approach to it. You got northern climes weather.

We take everything into risk. Projects slips, all that's already baked into our numbers.

I think there's upside in the back. As we see the mix in the electric segment, it's a big segment.

We have to really take into account everything in there. I think we've done a nice job of that.

I do think there's room for margin improvement on the backside. We've always said that the electric segment has the ability to operate 10% to 12% on the utility side.

12% would be the utmost margins that you would see, and that's when you stacked in large transmission and all aspects at once, you get full utilizations. You're also training a lot of people.

We've added 15,500 people over the year, seven of which or eight of which, seven or eight, I can't remember, is organic. It's I believe it's eight.

In saying that, significant amount of training going in. We're getting better at training.

If we can get better at training, we can get scale out of that as well. I do think we have the ability to improve margins.

It's still something, we're trying to compound it. We have rate payers on the utility side.

It's very much regulated. That said, we're doing a nice job on the technology TAM, and we're also getting some synergies out of our training and getting people to the field.

Super happy with where we're at.

Terrific. Thank you.

Sure.

Hey guys, good morning. Hopefully you can hear me okay.

Just wanted to ask, one, we've seen a large utility Midwest recently indicate at least for their gas generation RFP that they're electing to self-perform because of inadequate resources. Again, given this backdrop, how do you think about your willingness to participate in the gas generation side of the business?

Obviously, we saw a press release from you guys on Lightsource earlier. How do you think about leaning further into that?

What would that look like in as much as a JV structure's not obvious? I'm curious for your thoughts about this Ameren CPCN.

Yeah. No, look, Julien, we're seeing the same thing.

I do think a few of the utilities are trying to self-perform. It sounds easy, it's not.

I think, in general, we saw that in the past back in I don't know, it's probably 20 years ago, made myself. Look, we know the risk.

We know the risk of the people that we need to employ. Our craft skill labor is there.

We're doing a nice job of building that business. It's something meaningful in the future.

We talked about it. As far as the robust nature of EPC on generation, not only in front of the meter, behind the meter, someone was saying not too long ago that we're just behind the meter.

We're on both sides of that. We're seeing some small engines.

We're seeing big engines. We're seeing all types of generation.

We're installing it, EPC in it. I like the business.

We're just not willing to take the risk on the combined cycle side and some of the single-cycle engines. That's the issue.

If we can get the type of contracts that we need to feel comfortable with it, we'll do it. Certainly the inbounds and ask of our customers, we did mention the Lightsource.

I do believe a significant amount of that will go into backlog in the third quarter. That's moving nicely.

There's some other what I believe opportunities in that part of the world that will continue to compound. Not only them, but every customer we have, we're working with them on their capital plans to build both generation and T&D.

All right guys, appreciate it. Just a quick one on the technology side, can you speak a little bit to how you're scaling that business?

Is this just land and expand with existing customers? What exactly is going on within the details, if you can, just?

Obviously, it's a nascent business model for folks. You got a lot of new entrants.

Just curiously, you have a lot of entrenched relationships we're hearing about out there. How much of this is new customers and new platforms?

What are you going to do from a strategic M&A perspective to continue to build this business, too?

A lot to that. When we thought about it, when we acquired Cupertino, we acquired a platform.

We talked about the technology customers that we thought that we could take our collaborative approach and build another TAM that's every bit as big as our utility TAM. We're doing that.

It's showing up, direct to the hyperscaler, direct to the larger customers, showing them what we can do, our self-perform capabilities. We show up, we're on time, we're certain.

That's leading to balance-of-plant-type builds in multiple areas. Call it 80% of what a data center would build less chips, and I think 90% maybe.

We have the abilities to do that. As people see that we're certain and our projects are on time, on budget, self-perform, more and more addressable market comes our way.

I think we really like what we see, the collaborative nature. We talk about synergies a lot, and we don't put them in anything.

You can see from the quarter, they show up. We're crossing, we're fungible with labor.

We're crossing both T and D, as well as going into data centers with our people. You can see the queues on the utility side of substations, all the substations that are out there.

We're right in the middle of that. I think it's that nexus.

I'm not sure people understand that nexus and how difficult it is to interconnect to the grid, and how much we're right in the middle of that interconnection. That interconnection along their vertical supply chains, the very strategies that we've discussed are showing up, and the synergies are right there with them.

I do believe, Julien, as we look at technology, we're in a collaborative way helping them be certain on not only cost, but getting it done on time. We really like what we see.

Hey, good morning guys. My question is on the modular and prefab side of the business.

It's increasingly clear that you guys are investing in that organically and inorganically. I'd be curious to hear what share of your RFPs have that capability?

How do you think about that on the next five years? Maybe we can talk about just the labor cost savings that you see when you deliver that, and the extent to which you can value-based price with your customers on that?

Look, we talked about having 7 million square feet, and we just added, call it, half a million square feet with the acquisitions that we've made. Yes, we're adding to that.

We've always done some what I would consider fabrication, but I do think this integrated fabrication that we're doing, it's different. It's a solutions-based approach.

It has a lot of VDC engineering, BIM, a lot of technology in front of it. We can really design from a construction nature and work with the client on what they're trying to accomplish.

Less water, closed-loop systems, no water, all kinds of things that we're able to really, really work with the client upfront. I think we have some of the best engineers in the world because they've been in the field and they know how to construct.

That allows us to really lean into these projects, become much, much more efficient if we work in a collaborative manner with our client, much like we've done with AEP on 765. I think when we look at it, we work together.

If we can do that, the fabrication is exponential. It's going to cost less.

It's less people to some degree depending on where you're at and your logistics. Logistics cost a significant amount.

You really need to be close to where you're building. I think that Northeast environment and what we've done there with the acquisition of Falcon really gives us a lot of opportunity in the East and the fabrication in the East.

Look, you're certain as well. You're inside, and it allows us to really have a certain outcome.

The engineering in front of it allows the cost to come down. The more collaborative the client is with us, what I would consider the total cost goes down significantly for them.

Great, that's helpful. Then have you started to see RFPs for 800-volt work yet?

When is that starting? Just from a labor standpoint, is there any difference in complexity, the mix of labor force, or even the use of modular when you're shifting from 54 to 800-volt architecture?

I'll just say it this way. We haven't seen it show up.

We're in the middle of the engineering with it. We're all over it from the high-voltage side as well as equipment.

Anything complicated, anything with a higher voltage, the higher the voltage, the better for Quanta. I'll just say it like that.

We love complicated high-voltage infrastructure, the more the better.

Thanks.

Great. Thank you.

Obviously, there's a lot of positives in this quarter, but one that stand out as well was the free cash flow. I just wanted to, I guess, maybe ask, are you seeing changes in kind of the maybe prepayments or other things that are kind of favorable to working capital from some of these large load customers that maybe is a sustainable dynamic that maybe improves the free cash flow conversion over time, or is it kind of just a one-off here this quarter?

Thanks.

Hey Justin. No, we're very pleased with what's happening with free cash flow in our business.

The first half of the year was very strong. I think it's a real testament to the operators, how well they're performing.

We are getting favorable contracting terms across the business. The growth of the MEP business, our EPC business, and our renewables business is contributing to that free cash flow growth.

We believe that we're going to continue to see those types of factors coming into our free cash flow profile. It's improving our working capital, as you said.

Having said that, we do think the right way to think about our business continues to be that conversion rate of around 55%. I talked about it in the Investor Day that we have the opportunities to be higher than that, 55% to 60%.

Do I believe that we can be at the high end of that even this year and going forward? I do.

I think there's opportunities even to beat it. Growth, where the growth comes from, matters.

The strong utility business is continuing to grow on the back end as well. As that has a slightly different working capital profile, and it can pressure free cash flow.

We've taken all that into account in our guide. I think you can expect, Justin, that we have real abilities to be at the high end of those free cash flow ranges, and even better.

Great, that's all for me. Thank you.

Great, thank you for taking my question. Can I ask one on Percheron, if I'm pronouncing that right, the acquisition that you made?

How much of the revenue that they do is already revenue from Quanta and how much is third party? As you bring it in, are you going to focus it more on just working for Quanta?

Then does this allow you to do more front-end work with data centers, or is it purely just a T&D-type operation? Thank you.

Thank you, Sangita. Percheron, when we looked at that, really it's right-of-way acquisition, it's things of that nature, none of which is for Quanta.

Very little, if any, was Quanta revenue. It's all outside.

The customer base would be utilities, hyperscalers. Both sides of that, the way we think about it, anything that, from our standpoint, doesn't allow our field forces to move forward, or we can collaborate with the client in a constructability way, we want that to be a part of the solution.

They were very much a solution for us on the front end. We believe added to Quanta and in our constructability, we can work with the client on routes.

You hear about permitting quite a bit, land acquisition quite a bit. I'm getting tired of it.

As we see it, we felt like you can either gripe about it or you can fix it. Percheron will allow us to provide a unique solution to the client on the front end where we believe we can move right-of-way faster and a more economical way to get our people in the field, both on the technology pipeline and utility T&D.

Super proud, great company. I believe we can exponentially grow that, and then the synergies are endless.

Thank you.

Hey guys, good morning. I had a quick one too, just given obviously it seems like pretty strong organic performance within the quarter.

I just wanted to see if we can kind of break that out, was there any kind of pull-forward of timing or weather implications within there just given kind of more of a mild spring season?

No, I do think you bring up a good point on seasonality. We used to have a much more pronounced seasonality in the business.

With being inside and having kind of electricians in the places that we're at, fabrication facilities. You're going to see that level out in the fourth and in the second, and it'll start to level, it won't be as pronounced as it was in the past.

I do think that's part of it. As far as pull-in, it is different from a standpoint nothing pulled in at all that I'm aware of.

What is happening, we're getting on sites, and people are starting to see us perform, and they're asking for more services immediately. We may book and build $300 million on a site in a quarter.

You never see it show up in backlog. That's part of MEP, and that happens quite a bit.

We're working through that about how to look at those MSAs on the technology side, especially when we're building balance of plant in multiple areas. We need to look at that internally to decide is a PO against an MSA or is it an MSA?

We're following GAAP, but I would tell you the book-and-burn on that type of work is certainly prevalent in the quarter, and it will be prevalent as far as we can see because we continue to capture more balance of plant opportunities and kind of full scale data center opportunities. You'll see us on quite a few sites in the future.

Hey, good morning guys. Congrats on another great quarter, and a great year-to-date.

Hey Duke, I guess I wanted to dial in on your traditional T&D business. How would you say that's, other than the obvious that it's good, how would you parse that, how it's trending versus your initial expectations at the beginning of the year?

I wanted to get an update on your long-term expectations from electric utility customers.

I think we're right on target. You haven't seen the compounding effect.

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's not in backlog either.

Those big projects, the 765 corridors, 345, 500, all that bigger work is just starting. A lot of it's in engineering.

You'll start to see it hit backlog later half of the year and throughout what I would consider the decade. It's a long-term build well past 2030 on both sides of the business.

We're seeing those projects today. They'll show up in backlog, we'll go to the field, call it second half of '27.

You'll start to see incremental gain there, and the compounding stacking effect will start to hit the backlog. I continue to expect us to have record backlog, end of the third and probably even into the fourth.

Definitely, we see the work there and it has not started. Kind of what I would say upper single-digit growth in the business as it sits, doing nicely, working with clients.

I think double-digit-type growth is there today, and it's going to get much greater than that as we start compounding big work there. It's going to look much like it did, call it 15, 14, 15, was it 12 to 15, somewhere in there when we were on a bunch of big projects and started compounding.

We see that type of effect. Yes, it's big numbers, but the big numbers are going to compound as well.

We're super excited about where that's going, early stages. It'll start to show up, call it in backlog this year and in the field next year.

Perfect. Thanks, Duke.

Thanks.

Thank you, Duke. Just a quick follow-on on what we just discussed on your longer-term planning on the electric side.

Going back to the backlog, your backlog, similar to what you discussed last quarter, is more broader-based across the businesses rather than you bringing in these larger projects?

That's right. I do think you're going to get some lumpy quarters where you're 1 you're 1 to 1, 1 to 1.2.

You're going to start to see 1.5, 1.6 as you bring in the big chunks of projects, and it's going to happen. We saw some of it when we brought in 765 last quarter, you saw a big boost up.

It was broad-based, but it also had a big project in it. That's going to happen.

It's not going to be a straight line. You're going to see some lumpy kind of quarters, but all kind of lower lows, higher highs, all the way through, the way we see it, because I just think we can't predict timing and bookings on that big work.

It just takes time. We're in LNTPs all over the place and verbals all over the place with lots of clients in a collaborative way.

I just really like the collaboration the company's doing, really trying to help our clients. I think, giving them certainty, working with them, driving the cost down to the ratepayer.

The company is highly focused on driving the cost down to the ratepayer. I think that's the deal where we're really working hard with throughout on the T&D side.

I like where that's going. It's certainly given us a multi-year, even decade look outward.

You can see their capital budgets. It's something we can point our finger to.

We're working hard together. I like where the industry is going.

Great. Thank you, Duke.

Hey guys, congrats again on the strong results. Hey, wanted to check in with you on the recent New York state ban or pause on data centers.

We published recently that we could see as many as 10 more states pursue data center bans or pauses by the end of this year. What are your thoughts on this potential risk?

How could it impact your business? Then when you add data center work to your backlog, have these projects been cleared of all permitting, environmental approvals, community support?

I'm guessing the answer's yes, but just was wondering if you can talk through, is there any risk that some of these state bans or pauses could take some of the projects out of backlog? Thanks.

Oh

sure. Just a couple things.

It's a good question because it gives me an opportunity to freelance a little bit here. What I would say is 15% of the business is technology, call it 15% to 20% right in there.

That's a spectrum of chips to everything, not just data centers. It's not a huge piece of the business, number one.

We've grown that to that range over the last 2 years, which I think is phenomenal. We built a hell of a business already and got a long way to go.

Very early stages, and the quality of the companies that we've acquired is just phenomenal, super proud of the platforms. In saying that, look, we're involved in lots of data centers.

I haven't seen much in New York. Nothing really gets built there.

It's very difficult to build in New York, and having a moratorium in New York doesn't bother me at all. I just hope we can get enough power to continue to keep the lights on, PJM.

That's our highly focused there on that. What I would say is, in general, when we think about data centers, it's such a fallacy of the amount of water and what it does for an economy.

In rural areas, the school districts and the kids and the teachers, we employ people there. It's such a benefit to everyone that is building in those areas.

It's not a one-year build. These are 8-, 10-year areas that build, and you're providing jobs.

If you look in northern Louisiana where they're building there, yeah, they're using a little bit more water than some other areas. I would say there's better designs today, and you can use less water.

What that's done for teachers, teachers were the lowest paid in all Louisiana. They will be the highest paid in Louisiana in that area, all the teachers.

What it does for the rate base, the economies, I just don't think it gets the press. We're not doing a good enough job talking about the good things about data centers, national security, everything else that I see.

It reminds me a lot of the fracking rhetoric that was out there. It's just something that I think we have to do a great job to tell the benefits to the industry and how we see it, and what it's done to create jobs, and good jobs.

I think you can look at our median wage and see. It's very, very good for us and the economy.

Look, we're not seeing any shortage of places to go to work, and we're moving forward really working in local areas to provide jobs. As long as we do that, I believe we're on the right side of the rhetoric with data centers, and I like where it's going.

Phil, just on the backlog, I think it's important to add that we take all those into account. The way we treat our backlog, just like we do on the T&D side, just like we do on the generation side, we want to make sure that we have a constructive and prudent way of what goes into backlog.

On the data center side, we tend to put in things that have only LNTPs, and we don't put the rest of it until the project is a go. I think you can be confident in what we have in our backlog as a result.

We're seeing multi-year projects, too. We're out well beyond 2030.

Got it. Thanks again.

Thank you. Good morning.

Great quarter. Could you speak a bit more about underground and infrastructure, in particular pipelines?

Are you seeing any green shoots develop?

Look, I think we certainly have opportunities. I think we booked a little bit of Canada work in the quarter.

A real nice job there with ATCO. Proud about that one.

I think we'll book more in Canada. The opportunities, I would say later half of '26 into '27 for us are there, that the business is getting better.

It's something we're looking at and kind of how we'd look at it. We kind of put $500 million in our head, and that's where it's at.

We're well past that for the year, probably and beyond. We'll re-look at that as how we guide.

No, Alex, I think it's all risk. We'll be cognizant of how we look at the risk.

Our generation business is growing nicely, some things there. We're able to use some of those assets and people and project management teams on the generation side.

There's a lot of pipe feeding generation that we can bundle that in as well. That solutions-based approach on the technology side applies to the pipeline as well, and gives us a lot of opportunity there to do some unique things with the pipe.

Jayshree, earlier you mentioned contract terms have improved. Can you expand upon that a little bit and maybe, in particular, how they've changed across various end markets?

As we sit here, we're looking at our renewables business, our MEP business, our EPC business on the T&D side. It allows us to have really favorable cash flow terms.

The working capital profile on those things are very positive. We're seeing that across our business, not just in certain markets.

The MEP and renewables business and EPC work on our traditional business tends to have the more pronounced favorable working capital profile, and that is getting baked in. We've talked about this a lot, right?

As we sit here today in these markets and the strength of our portfolio and our ability to help our customers, we're very much focused on compounding and growing with them. Our contracting terms are reflection of that.

While we're not necessarily trying to take advantage of our customers in any way, it is allowing us to make sure that we're doing things in the way that allows us to be confident about our execution capabilities and delivering for them in the right manner. That's what's getting reflected across our business.

It's not just on working capital, but it's in terms across the company.

Excellent. Thank you.

Thanks. Good morning.

Congrats on a really great quarter. Obviously, there was a meaningful uplift in the technology and large load outlook.

Curious if there was any notable large bookings on the integrated fabrication part of the business in the quarter, and if that was a core driver of the upside, or is it more broad-based in MEP? Thanks.

I think it's broad-based, the way we see it. Certainly MEP business is going faster than the rest of the business, just percentage-wise.

What I would say is if you look at the whole outlook, I would tell you all of it's pushing upward, both segments are pushing upward. The electric segment is moving up.

Our renewable business is really good. It's moved up nicely.

I would tell you all things that we discuss are at least double digits, some are double-digit plus. Everything's moving upward at least double digits.

I'm sure it's CEO math, it's probably 9.9 in some area, but very close to double digits and some of it much greater, some of the parts, obviously.

Appreciate it. Then just one quick one, if you wouldn't mind.

Did you see any notable SunZia closeout benefits in the quarter, or anything that was more one-time? Thanks.

No. Look, closeouts happen all the time.

We're so large, you can have projects close out, you can have project start. There was nothing one-time in our quarterly results.

Yeah.

Appreciate it. Thank you.

I do like it when they go up, though. I'd rather them go up than down.

In general, they typically go up, and it's nothing out of the ordinary. It's normal course.

Understood.

hi. Thanks, everybody.

Duke, you've been adding manufacturing capabilities in a couple of areas, transformers, you bought a utility pole company. I'm wondering if there are other areas that you're thinking about in terms of where you might want to add capabilities?

Thank you.

Look, we we did the breaker deal with Hyosung. I thought that was a, critical path for us on the high-voltage breakers.

They're very difficult to get. You've seen us build them.

You've seen us partner. We certainly have great relationships with the suppliers.

Anywhere's a critical path that we think we can invest capital and move it forward, that's what you've seen us seen us do. As we we're looking outward, we're taking advantage of areas where there's underinvestment or we believe it's something that is critical path for us.

We're working with our clients to, really innovate as well with R&D and some things we can do there. That innovation, technology, how we look at it.

We've made those investments in that vertical supply chain. I think it's showing up in some of the synergies.

I think you'll continue to see it. We'll be selective in how we invest there.

That's something that we look at it all the time, but but we we do believe we can do some unique things with our vertical supply chain and have done. It'll be a broad-based investment in and things that are what you would consider critical path.

We see a lot of people buying e-house companies. Is that something that you think might be a good fit for Quanta?

Look, we're not looking at e-house companies. That's fine.

Look, I'm sure they're great companies and everyone's doing well with them. It's not something that we're looking at today.

We're looking at all kinds of things that it could be a component thereof, or whatever it may be. Traditionally, the core of the business is craft skill labor.

We're highly focused on craft skill labor and bringing that to the field in a way that's solutions-based. If e-house or anything else can help us with a solution, we're certainly leaning into those opportunities.

Thank you.

Hi, congrats on another fantastic quarter. Can you hear me?

Thank you. Oh,

good. You can hear me.

Oh, Duke, I just guess one question. I've been beating you up on your underground margins for years, and finally it sounds these margins are really starting to improve.

I guess with some of these acquisitions that you're doing, and some of the structural improvements you're making, I'm wondering overtime, although it's not in your sort of longer-term margin targets, is there a path, in particular with some of these higher margin acquisitions, for your underground margins to approach the electric business? Is that totally off-base?

Thanks.

There's always opportunity. It just depends on the work mix.

Some of those margins you can pull up, and it depends on the risk, it depends on some of the fabrication. Look, I do think you can pull them up.

Let me get to double digits first, and then I'll go from there. I do think we have opportunities to get at parity to electric.

You can do it. It just depends on what the mix looks like.

We're certainly, I think that's one thing the company is highly focused on is increasing our efficiencies. Some of the labor is fungible, it's moving across segments, it's moving over into the electric segment, they move back and forth.

We can have someone on what I would consider a data center, go to a industrial base, come back into compression on gas side. That we can move electricians and underground folks across multiple segments, which I really like a lot.

It's hard to say because they are making the margins in the electric side on one side of the business as that labor's fungible. Kind of the outlook on the customer base in the UI segment, yeah, we can move it up and you'll see that move up and we could get it to parity to electric.

It's possible.

Good morning, everyone.

Hey, Mike.

Hello.

Duke, just your sense of what your customers, maybe on the MSA side or even just across the board, how far out in the future are they asking to secure your specialized craft labor generally? I'm sure there's ranges of months to years.

How has that changed say in the last 12 to 18 months, and do you anticipate it to get even further tighter out into the future where you have to allocate these resources a little bit more judiciously?

Mike. We're nowhere near capacity.

I know that's been something that people are worried about. Look, you've seen us add 15,000 employees in the quarter, and oh, well let me back up.

15,000 in the year, significant amount of which is in the second quarter. Through that, some through acquisitions, some through organic growth, but well over 7,000 in organic growth.

We're very much in line with the customer building out programs. We're as far out as their capital plans, at least, and beyond.

When you're looking at their capital plans, they're out 5, 7 years. We're helping them with capital, we're helping them all the way through and in a collaborative manner, across the board, having great collaborative conversations on it.

I would say the inbounds are significant. The company's in a different place than it's ever been, how we sit, how we're viewed.

I think the number one thing is how do people feel about us. I feel real good about how we sit in the industries we serve and we've done a real nice job.

The men and women in the field are executing at a phenomenal level, and we see decade-plus-type arrangements out there.

Hey, thanks, and congrats on the quarter as well. Maybe just a high-level question, Duke.

Where are you seeing the bottlenecks as you go into data centers or for generation and transmission distribution? Is it still the craft labor, and is there a scenario where you foresee potential competition or oversupply on that aspect a few years down the line, maybe labor or craft moves from other industries to this, you have more training or more automation?

Thanks. Look, I we're not seeing any shortage of

we're not seeing any oversupply of craft skill labor for the near future. It takes about 4 years to to make a a craftsman or a journeyman.

We happen to have more journeymen and and in all crafts than than most, well probably in the electric side, MEP side, I I would say, we're gaining. We're very close.

Our training facilities, the things that we've invested in over a decade, we spend about $250 million a year in training. That's something we're highly focused on and and have been for a decade.

I know it I know we're making it look a little easy. It is not easy whatsoever.

I that that's just the fact is we we've done this for a long time. I don't think you're going to see an oversupply at any means in the near future.

We see a lot of money getting thrown at it. Takes a journeyman to make a journeyman.

I I'll say it again. It takes a and it takes multi-years.

The more years under their belt, the better they are and more productive. I I think when we look at it, no oversupply.

We're the bottlenecks would be generation to some degree, and I I know generation's going to say it's EPC. Look, some of it's technical, it is difficult to to have the capacity to build, combined cycles at the the levels that everyone wants to build them at, and as quick as they want to build them at.

We're working hard to, build those capabilities internally. We've done a real nice job.

We have, what I consider a a significant business in front of us in the generation side. That that's organic growth for us.

We we really like where it's going, and we're putting the resources in and the training and and getting great people here that want to work for Quanta. Real happy with both sides of that.

There is bottlenecks here and there. I I do think for the most part, most data centers want to go back to the grid at some point.

Not to say that last time I got in trouble for saying something about, meter, behind-the-meter generation or whatever it was, I can't remember what it was, but someone was mad. Look, the faster you can go right now with generation, people are going to buy it.

Over time, you're going to try to connect to the grid. It balances things out.

The utilities do it much better than anyone. They've been doing it for decades.

That bottleneck of that queue is extremely important. What What does it take to get to the queue?

It takes generation and substations. We're very much involved in both sides of that, and I do think that would be the bottleneck is getting to the to the, what I would consider utility-scale generation.

They're moving very fast. We're working with them all over the place, and I I do believe utilities are in a growth mode.

They've been underinvested in for a while on generation. You're starting to see that, significant investment in it and small If you started an engine today, if you ordered an engine today, you're 5 years out, probably 6, before you get them built.

It just shows you the longevity. I'm sure, I I didn't listen to GE's call, but I'm confident Vernova had a really nice book, and it's going to continue for a bit here.

We're super happy with where we sit.

good morning, everyone. Duke, you just added 10% more employees to the Quanta family again in one quarter through acquisitions.

I know how you're going to answer this question, but I'll ask it anyway. At some point, do you worry about the acquisition flywheel moving too fast, and maybe it could hurt underlying performance?

Or alternatively, can you keep the pace of the recent acquisition trajectory that you've had over the last few years up, as it obviously has been a significant acceleration?

That's a good question. We're buying great companies.

One of them was over 100 years old, maybe two. We're not passing on great family businesses with great management teams.

It'll depend on the management teams. Do they fit here?

We're super excited with the ones we've bought. A lot of that, too, is I would tell you a couple of them we had talked to for 36 months, maybe, maybe longer, maybe 5 years, about acquisitions.

We just can't tell you when exactly how that's going to work out. Last quarter we did zero, this quarter we did four.

We're not seeing shortages of people wanting to sell their businesses here. Culturally it matters.

We view that more so than anything else because if we continue down the path, the cultural path, we get the synergies. They want to work together.

People want to work here. We're creating great jobs.

We have a lot of journeymen here that are Executive Vice Presidents, Presidents, CEOs. They're all over.

We have a path for craft here that's remarkable. I do believe if you want to exit your business, Quanta makes tons of sense for you.

We're excited about that. I do think creating those opportunities, watching craft do very well, we push equity down to 10,000-plus people.

I pinch myself on how lucky we are to be in the space we're in, and be able to do the things we can do for craft. I'm super happy, and that's why people want to sell their business here.

Hey, good morning, guys. Nice quarter.

Just on the acquisitions, can you give us the annualized EBITDA run rate? Are the purchase multiples you underwrote?

Just the $120 to $140 contribution seems like it's just partial year, and I just want to make sure we're comparing it correctly with the purchase price. Thanks.

I think you can just do the math. It's about 6, 7 months worth of what we gave you, you could annualize it based on just that, and that can give you a good sense of the run rate.

Hey, good morning, team, and thanks for taking our question. The guidance revision this quarter was notable.

Can you just talk more about the drivers of that revision? What are you seeing in the market and in your backlog that gives you confidence in this new guide?

You can see the headcount's moving up. You can see both electric and gas moving up.

Obviously, if the contribution from electric, it's a bigger segment, it's going to be up. It was broad-based.

I think the synergies that we have and the things that we saw coming together. We're doing a lot of balance of plant work on the data side, technology side.

It's not just data centers. We're involved in all kinds of manufacturing, Lilly plants starting, all kinds of different things.

Tesla's got plenty going on. Kind of on-shoring manufacturing, medical, across the board, we're picking up.

On both sides of that. I would say our T&D business is growing nicely.

Our renewable business, I know everyone was worried about that for a while. We're setting records there.

Super happy with what they're doing. Broad-based growth.

We will stack both generation and large transmission on the business, and that'll be the outward growth for foreseeable future. You'll start to see that stacking effect as well.

We're not on a lot of large transmission. We're cleaning a few of them up and then we're starting a few of them ourselves.

In general, I do think that stacking hasn't started yet and it's going to. I think it's probably second half of '27 you'll start to see us go to the field in a meaningful way, and that'll stack on out through the decade.

We're happy with that.

Thank you. I want to again thank the 85,000-plus men and women in the field.

Their sacrifices to build the infrastructure of tomorrow is noted, and we thank them. I also want to thank you for participating in our conference call.

We appreciate your questions and ongoing interest in Quanta Services. Thank you.

This concludes our call.