KeyBanc Capital Markets upgraded Quanta Services (NYSE: PWR) to Overweight from Sector Weight, citing the company's execution strength following a second quarter that meaningfully exceeded expectations. The upgrade arrives after Quanta reported second-quarter revenue of $9.56 billion, up 41% year over year, with adjusted diluted earnings per share of $4.24 versus a consensus estimate of $3.31.
Quanta's second-quarter results, released July 30, showed adjusted EBITDA of $1.1 billion and a record total backlog of $53.4 billion. CEO Duke Austin said the performance reflected broad-based organic strength across segments, service lines, and end markets, with minimal contribution from recently closed acquisitions during the quarter. The company generated $1.1 billion in cash flow from operations and $0.9 billion in free cash flow.
Following the beat, Quanta raised its full-year 2026 guidance across all metrics. Revenue is now expected at $39.3 billion to $39.7 billion, up from the prior $34.7 billion to $35.2 billion range. Adjusted EPS guidance moved to $16.45–$16.95 from $13.55–$14.25, and adjusted EBITDA is expected at $4.09 billion to $4.21 billion, up from $3.49 billion to $3.65 billion. Free cash flow is projected at $2 billion to $2.5 billion. The company said the raise reflects stronger-than-expected first-half performance, improved second-half visibility, and anticipated contributions from recent acquisitions including Phalcon, Enerfab, Percheron, and PSD, which are expected to add $1.2 billion to $1.4 billion in 2026 revenue.