PWR · 10-Q · 2026Q3 · Full report

Subcontracting and Materials Procurement

QUANTA SERVICES, INC. · 2026-10-29 · Importance 11 · Surprise 6

Quanta has subcontracted approximately 15% to 20% of its work to other service providers in recent years; subcontracted work generally yields lower margins. Under certain contracts, including engineering, procurement and construction work, Quanta also procures some or all required materials. Projects with greater materials procurement can have lower margins because material markups are generally below labor markups, and may expose the company to price risk. Changes in material, equipment and consumable prices or availability can affect project completion costs.

Key facts

• Quanta has subcontracted approximately 15% to 20% of its work to other service providers in recent years; subcontracted work generally yields lower margins. source
• Quanta's margins may be lower on projects requiring significant materials procurement because its markup on materials is generally lower than its markup on labor, and increased materials requirements can reduce overall margins and sometimes leave Quanta bearing price risk. source