PWR · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

QUANTA SERVICES, INC. · 2026-10-29 · Importance 63 · Surprise 64 · No source text

Consolidated gross profit increased 52.4% to $4.661 billion for the nine months ended September 30, 2026, and gross margin improved to 15.8% from 14.8%. Third-quarter gross margin rose to 16.7% from 15.9% as revenue increased 57.4% and cost of services increased 56.0%. Electric operating margin increased to 11.2% from 10.0% for the nine-month period, primarily because of higher revenue and improved execution across electric and power generation services. Underground and Infrastructure operating margin increased to 8.8% from 7.1%, primarily reflecting acquired mechanical-services revenue and higher fixed-cost absorption.

Key facts

• Quanta's third-quarter 2026 consolidated gross profit was $2,008.282 million, or 16.7% of revenue, compared with $1,216.434 million, or 15.9%, in the third quarter of 2025. source
• Quanta's third-quarter 2026 Electric operating income and margin increased primarily due to higher revenue and improved execution across electric and power-generation services. source
• Quanta's third-quarter 2026 Underground and Infrastructure operating income and margin increased primarily because acquired mechanical-services businesses generated higher fixed-cost absorption. source
• Quanta's larger or more complex projects—including higher-voltage transmission, larger-diameter pipeline, large-scale generation and complex data center projects—typically offer higher-margin opportunities than recurring MSA services, but carry greater performance risk. source
• Severe weather events can increase Quanta's emergency-restoration services, which typically yield higher margins partly through higher equipment utilization and fixed-cost absorption. source

Impact estimates