AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 31/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · 2/4 · Broad service capabilities and established customer relationships provide a credible commercial advantage. However, claimed differentiation is not supported by comparative costs, protected access or demonstrated switching friction. Customer self-performance alternatives prevent these capabilities alone from establishing a durable barrier.
durability · 1/4 · Successive annual disclosures describe long-standing relationships, supporting continuity. Their economic protection is fragile: customers can cancel on short notice and need not allocate minimum MSA work. The passages do not demonstrate that relationships sustain premiums or resist competitive replacement through multiple cycles.
customer dependency · 1/4 · Quanta supplies extensive infrastructure services, but customers retain meaningful alternatives and discretion. Disclosed internal service organizations can perform comparable work, contracts can be suspended without Quanta default and MSAs generally guarantee no work volume. Long relationships do not establish customer lock-in.
erosion resilience · — · Current growth and cash generation demonstrate operating strength, but do not show how a specific competitive advantage withstands imitation, customer insourcing or technological change. The manufacturing joint venture adds potential capability; the catalog supplies no sustained customer outcomes demonstrating resistance to erosion.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The catalog identifies contract types and revenue growth, but does not isolate achieved prices, negotiated increases, discounts or price recovery. Revenue and earnings growth cannot distinguish price from volume, acquisitions or mix. The earlier claim-recovery argument lacks a supporting passage in the current catalog.
retention · 2/4 · Long-standing relationships disclosed across annual reports provide indirect evidence of repeat demand. This supports a mixed assessment rather than unknown retention. No observed renewal rate or current additional-award evidence is supplied, and cancellation rights and discretionary MSA assignments limit contractual protection.
margin resilience · 2/4 · Second-quarter 2026 operating margin improved to 7.3% from 5.5%, demonstrating realized operating resilience over the comparison period. However, fixed-price contracts represented 62.3% of first-half 2026 revenue and expose Quanta to materials costs. The catalog does not isolate pricing, acquisition or mix contributions or demonstrate resilience through a full cycle.
contractual freedom · 1/4 · The predominance of fixed-price revenue and assumed materials exposure constrain repricing flexibility. Customers also retain cancellation and MSA allocation discretion. Unit-price and cost-plus work diversify the contract mix, but the passages do not establish broad unilateral authority to reset prices or pass through cost increases.
Predictability99
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 6.49
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.70
- observedAnnualPeriods
- 5.00
Financial strength43
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 61.45
- netDebtEbitGrade
- 31.05
- interestCoverageGrade
- 46.94
- currentRatioGrade
- 30.90
- Debt / FCF (x)
- 3.70
- Net debt / operating income (x)
- 3.45
- Interest coverage (x)
- 6.16
- Current ratio (x)
- 1.14
Capital allocation82
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 12.94
- 3-year average dilution (%)
- 1.22
- 3-year average SBC / revenue (%)
- 0.63
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half 2026 operating cash generation of $1.49 billion accompanied $1.36 billion of investing outflows. Three acquisitions involved $930.3 million of net acquisition-date cash payments, financed with cash and borrowings; no open-market repurchases occurred. Actual funding and deployment support assessment, but acquisition returns and a complete dilution analysis remain unestablished.
incentive alignment · 3/4 · Adopted incentives combine annual financial and safety metrics with three-year return, EPS and shareholder-return measures. Executives exceeded ownership guidelines at December 31, 2025, including unvested RSUs but excluding unearned PSUs. Adopted five-year awards extend alignment, although their maximum 600% payout and future vesting limit conclusions about outcomes.
execution · 3/4 · Second-quarter revenue increased from $6.77 billion to $9.56 billion, while net income attributable to common stock rose from $229.3 million to $451.4 million. Stronger first-half operating cash generation corroborates execution. Customer delivery is assessed indirectly; acquisitions contribute to the platform and organic performance is not isolated.
governance · 3/4 · Disclosed governance includes a separate independent chair, an independent Audit Committee with sole auditor appointment and compensation authority, and completed annual director elections. These are concrete oversight arrangements supporting a strong grade. The supplied passages do not establish exceptional long-term oversight effectiveness or actual clawback enforcement.
Evidence
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.
2025 Form 10-K, filed 2026-02-19, Business: infrastructure service capabilities · Filed 19/02/2026
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.
2025 Form 10-K, filed 2026-02-19, Business: geographic breadth and long-standing relationships · Filed 19/02/2026
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.
2025 Form 10-K, filed 2026-02-19, Business: management's claimed relationship differentiation · Filed 19/02/2026
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.
2023 Form 10-K, filed 2024-02-22, Business: historical relationship disclosure · Filed 22/02/2024
Furthermore, many of our customers may cancel or suspend our contracts on short notice even if we are not in default under the contract.
2025 Form 10-K, filed 2026-02-19, Risk factors: customer cancellation rights · Filed 19/02/2026
Under these agreements, our customers generally have no obligation to assign a specific amount of work to us.
2025 Form 10-K, filed 2026-02-19, Risk factors: no minimum work obligation under MSAs · Filed 19/02/2026
Additionally, the in-house service organizations of our existing or prospective customers are capable of performing, or acquiring businesses that perform, the same types of services we provide, and these customers may also face pressure or be compelled by regulatory or other requirements to self-perform an increasing amount of the services we currently perform for them, thereby reducing the services they outsource to us in the future.
2025 Form 10-K, filed 2026-02-19, Risk factors: customer self-performance alternatives · Filed 19/02/2026
Pursuant to certain contracts, including fixed price and EPC contracts where we have assumed responsibility for procuring materials for a project, we may be exposed to availability issues and price increases for materials that are utilized in connection with our operations, including, among other things, copper, steel, aluminum, specialized project components (e.g., transformers, solar panels, breakers, turbines, batteries) and raw materials utilized for certain of our product solutions.
2025 Form 10-K, filed 2026-02-19, Risk factors: materials exposure under fixed-price and EPC contracts · Filed 19/02/2026
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
By contract type:
Fixed price contracts
$
6,083,463
63.7
%
$
3,948,454
58.3
%
$
10,857,267
62.3
%
$
7,703,780
59.2
%
Unit-price contracts
1,770,593
18.5
1,734,144
25.6
3,492,799
20.0
3,189,630
24.5
Cost-plus contracts
1,702,941
17.8
1,090,409
16.1
3,081,718
17.7
2,112,931
16.3
Total revenues
$
9,556,997
100.0
%
$
6,773,007
100.0
%
$
17,431,784
100.0
%
$
13,006,341
100.0
%
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
By primary geographic location:
United States
$
9,103,463
95.2
%
$
6,279,010
92.8
%
$
16,465,073
94.5
%
$
12,067,063
92.9
%
Canada
215,750
2.3
238,406
3.5
491,774
2.8
448,652
3.4
Australia
206,610
2.2
198,104
2.9
407,854
2.3
369,191
2.8
Others
31,174
0.3
57,487
0.8
67,083
0.4
121,435
0.9
Total revenues
$
9,556,997
100.0
%
$
6,773,007
100.0
%
$
17,431,784
100.0
%
$
13,006,341
100.0
%
Under fixed-price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage of completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation.
June 2026 Form 10-Q, filed 2026-07-30, Revenue note: contract mix, units and recognition method · Filed 30/07/2026
During the six months ended June 30, 2026, we completed the acquisition of three businesses in which a portion of the consideration, net of cash acquired, consisted of $930.3 million in net cash paid on the respective acquisition dates, funded with a combination of cash and cash equivalents and borrowings from our existing debt financing arrangements.
June 2026 Form 10-Q, filed 2026-07-30, Capital allocation: completed acquisitions and funding · Filed 30/07/2026
In summary, our cash flows for each period were as follows (in thousands):
Six Months Ended
June 30,
2026
2025
Net cash provided by operating activities
$
1,487,188
$
538,909
Net cash used in investing activities
$
(1,358,812)
$
(980,546)
Net cash (used in) provided by financing activities
$
(64,951)
$
186,747
Operating Activities
Net cash provided by operating activities of $1.49 billion and $538.9 million in the six months ended June 30, 2026 and 2025 primarily reflected earnings adjusted for non-cash items and cash provided and used by the main components of working capital: “Accounts and notes receivable,” “Contract assets,”, “Inventories,” “Prepaid expenses and other current assets,” “Accounts payable and accrued expenses,” and “Contract liabilities.”
June 2026 Form 10-Q, filed 2026-07-30, Cash flows: six-month cash generation and uses · Filed 30/07/2026
During the six months ended June 30, 2026, Quanta did not repurchase any shares of its common stock in the open market under its stock repurchase programs.
June 2026 Form 10-Q, filed 2026-07-30, Equity: actual open-market repurchase activity · Filed 30/07/2026
2026. Revenues in the second quarter of 2026 were $9.56 billion compared to revenues of $6.77 billion in the second quarter of 2025, and net income attributable to common stock was $451.4 million, or $2.96 per diluted share, in the
Second-quarter results release, filed 2026-07-30: revenue and current-quarter net income · Filed 30/07/2026
second quarter of 2026 compared to net income attributable to common stock of $229.3 million, or $1.52 per diluted share, in the second quarter of 2025.
Second-quarter results release, filed 2026-07-30: comparative net income and diluted EPS · Filed 30/07/2026
Corporate and Non-Allocated Costs (b)
(359,163
)
(3.8
)%
(273,041
)
(4.0
)%
(687,083
)
(3.9
)%
(518,991
)
(4.0
)%
Consolidated operating income
$
694,834
7.3
%
$
370,282
5.5
%
$
1,033,613
5.9
%
$
609,363
4.7
%
(a)
Included in operating income for the Electric segment was equity in earnings of integral unconsolidated
Second-quarter results release, filed 2026-07-30, Segment results: consolidated operating income and margins · Filed 30/07/2026
Hyosung HICO and Quanta announced the formation of a joint venture, Hyosung HICO Breaker, LLC, to manufacture high-voltage circuit breakers in the United States.
Second-quarter results release, filed 2026-07-30, Recent highlights: circuit-breaker manufacturing joint venture · Filed 30/07/2026
Under the guidelines, shares held by a person or entity related to or controlled by the executive officer, as well as unvested RSUs and vested equity awards deposited into a deferred compensation arrangement, are included in the calculation of such individual’s ownership.
2026 proxy, filed 2026-04-10, Ownership guidelines: included ownership interests · Filed 10/04/2026
However, unvested and unearned PSUs are not included in the calculation of such individual’s ownership.
2026 proxy, filed 2026-04-10, Ownership guidelines: exclusion of unvested and unearned PSUs · Filed 10/04/2026
As of December 31, 2025 all of our executive officers were in compliance with the requirements of our stock ownership guidelines and exceeded the prescribed ownership level.
2026 proxy, filed 2026-04-10, Ownership guidelines: actual compliance at December 31, 2025 · Filed 10/04/2026
(“Quanta”) adopted the 2026 annual incentive plan for all corporate employees, the 2026 long-term incentive plan for senior leadership and the 2026 discretionary plan for all employees (collectively, the “Incentive Plan”).
Incentive-plan Form 8-K, filed 2026-03-04: adoption of 2026 plans · Filed 04/03/2026
The annual performance metrics for 2026 include EBITDA, EBITDA margin and safety.
Incentive-plan Form 8-K, filed 2026-03-04: annual performance metrics · Filed 04/03/2026
The long-term incentive performance metrics for the January 1, 2026 through December 31, 2028 performance period include return on invested capital, earnings per share and total stockholder return.
Incentive-plan Form 8-K, filed 2026-03-04: 2026–2028 performance metrics · Filed 04/03/2026
The number of PSUs that may be earned will be determined at the conclusion of a five-year performance period ending on December 31, 2030 based on pre-established performance goals.
Compensation Form 8-K, filed 2026-04-16: five-year PSU performance period · Filed 16/04/2026
Specifically, the amount of PSUs that may be earned can be up to 300% of the target amount based on achievement of a specified compound annual growth rate for adjusted earnings per share by the end of the performance period (i.e., fiscal year ending December 31, 2030), with a potential multiplier of up to 200% of such amount based on a specified compound annual growth rate for total shareholder return (“TSR”) as of the end of the performance period (for maximum earned PSUs of up to 600% of target).
Compensation Form 8-K, filed 2026-04-16: PSU performance measures and maximum award · Filed 16/04/2026
(d) Exhibits.
Exhibit
No.
Exhibit
10.1
Form of PSU Award Agreement for awards to employees/consultants pursuant to the 2019 Omnibus Equity Incentive Plan (five-year cliff vesting award adopted April 2026)
104
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Compensation Form 8-K, filed 2026-04-16, Exhibit description: April 2026 award adoption · Filed 16/04/2026
✓ Separate Independent Chairman of the Board and Chief Executive Officer
✓ Annual stockholder engagement
✓ Robust stock ownership requirements for directors and officers
iii
PROXY STATEMENT SUMMARY
✓ Meaningful annual limit on non-employee director compensation
2026 proxy, filed 2026-04-10, Governance highlights: independent chair and ownership requirements · Filed 10/04/2026
75
INDEPENDENT AUDITOR
Audit Committee Report
The Audit Committee is composed of three independent directors and operates under a formal written charter adopted by the Board of Directors.
2026 proxy, filed 2026-04-10, Audit Committee report: independent membership · Filed 10/04/2026
The Audit Committee is solely responsible for the appointment and compensation of Quanta’s independent registered public accounting firm.
2026 proxy, filed 2026-04-10, Audit Committee report: auditor appointment and compensation authority · Filed 10/04/2026
Election of Directors (Item 1)
The following ten director nominees were elected as directors of the Company to serve one-year terms expiring at the 2027 Annual Meeting of Stockholders.
Annual-meeting Form 8-K, filed 2026-05-27: completed one-year director elections · Filed 27/05/2026
