Good morning and welcome to the Qantas services first quarter 2026 earnings call at this time all participants are in a listen only mode a question and answer session will follow management's prepared remarks and we ask that you please hold all questions until that time i will then provide instructions for the question and answer session as a reminder this conference is being recorded if you have any objections please disconnect at this time i will now turn the call over to Kip Rupp, Vice President, Investor Relations, for introductory remarks.

Thank you and welcome everyone to the Qantas Services first quarter 2026 earnings conference call. This morning we issued a press release announcing our first quarter 2026 results which can be found in the Investor Relations section of our website at QantasServices.com. This morning we also posted our first quarter 2026 operational and financial commentary and our 2026 Outlook Expectations Summary on Qantas 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, April 30, 2026, and therefore you are 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 Qantas control and actual results may differ materially from those expressed or implied. We 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 documents 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

Qwanta Services' first quarter 2026 earnings conference call. I want to begin by thanking our employees for their continued absolute performance mindset, dedication to safety, and commitment to delivering mission-critical infrastructure solutions for our customers. Your work and dedication is what makes everything possible. Qwanta is off to a strong start of the year, with their first quarter results reflecting robust double-digit growth in revenues, adjusted EBITDA, and adjusted earnings per share, along with record backlog. These results reflect the strength of our diversified solutions-based business model and our portfolio approach, enabling us to adapt to the evolving industry dynamics while consistently delivering execution certainty and profitable growth across varied market conditions. I want to spend a moment on what we shared at our investor day on March 31st, because I think it is the right context for everything we are doing. Quanta has transformed, and our strategy for the next five years is firmly in place. What ran through everything we presented in our investor day was one word, certainty. Execution certainty, labor certainty, supply chain certainty, schedule certainty. That is what our customers need right now, and that is what this company is built to deliver. Utilities are being asked to double in size. Technology customers are demanding speed at scale they haven't dealt with before. Everything we have built over the past decade, our craft workforce, the integrated solutions model, the vertical supply chain investments, it all comes back to delivering that certainty at scale. And that is the conversation we are having with the customers every single day. We listen to our customers, and we are becoming more deeply embedded in the way they plan and execute their capital programs. We are in the rooms where customers are planning their entire multi-year capital spoon.

We are negotiating much of the work directly.

Our success is aligned with their success and with positive outcomes for the ratepayer. That was not the case five years ago. We are there now. The trust we have built over decades, combined with the investments we have made in our craft workforce and integrated solutions model, is how we created a durable, compounding business that is well-positioned to capitalize on large, visible, and durable market opportunities. To that end, on the fourth quarter call, we announced an investment of $500 to $700 million over the next several years in our power transformer manufacturing facilities and vertical supply chain strategy, which will double our power transformer manufacturing capacity. Additionally, we are nearly doubling our off-site manufacturing, fabrication, and logistics facilities over the next several years for an aggregate of approximately 6.7 million square feet of facilities as part of our integrated fabrication and supply chain solutions. We are experiencing significant demand for these services, particularly for data centers, and these programs are just a couple of examples of Kiwana's ability to provide total solutions across converging markets that are designed to deliver speed and certainty. The versatility of our craft workforce and our solution-based approach is what de-risk all of us for our customers and for our investors. That fungibility, the ability to move our people across a 2.4 trillion total adjustable market converging around utility generation and large load is what allows us to flex across markets expand scope and keep delivering we have outlined an opportunity to more than double the earnings power of this company by 2030 when we look at our 15 to 20 adjusted eps growth target with the opportunity to stack above that i want to be clear this is not easy, and the strategy has to be in place to deliver those numbers. We believe it is. Our guidance is prudent. It has always been prudent. And the results we reported this morning reflect exactly the kind of execution this plan is built on. I will now turn it over to Jayshree Desai, Qantas CFO, to provide a few remarks about our results and 2026 guidance, and then we will take

your questions. Jayshree? Thanks, Duke, and good morning, everyone. This morning, we reported first quarter results with revenues of $7.9 billion, net income attributable to common stock of $221 million or $1.45 per diluted share, adjusted diluted earnings per share of $2.68 and adjusted EBITDA of $686 million. Based on the continued momentum evidenced by our record $48.5 billion of backlog, the strong performance during the quarter, and improved visibility into the remainder of the year, we are raising our full-year financial expectations. We now expect revenues to range between $34.7 to $35.2 billion, adjusted EBITDA to range between $3.49 to $3.65 billion, and adjusted EPS to range between $13.55 and $14.25. As Duke mentioned, we hosted an Investor Day on March 31st and outlined an opportunity to more than double the earnings power of this company by 2030. This quarter represents a great start to a 20 quarter stretch during which time we intend to deliver against that expectation along with continued improvement in our consolidated margins and returns. Over the course of our five-year plan we remain committed to maintaining an investment grade balance sheet and an acquisition strategy that's governed by our target leverage profile of one and a half to two times and the returns that we would otherwise generate by repurchasing our stock. One quarter in, the results reflect exactly the kind of disciplined, compounding performance we committed to at Investor Day, and we remain focused on delivering that consistency for our stakeholders over the course of this plan. 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 operator thank you we will now move to our question and answer session we ask that all participants limit themselves to one question if you have additional questions you may requeue and those questions will be addressed time permitting if you have joined via the webinar please use the raised hand icon which can be found at the bottom of your webinar application when you are called on please unmute your line and ask your question our first question is from nick amicucci from evercore isa please unmute your line and ask your question hi good morning guys how's everyone um just wanted to

uh just wanted to drill in a little bit obviously uh duke and jasher you guys had kind of mentioned the opportunity um to improve margins on the underground and infrastructure it seems like Obviously, it seems like that was one of the drivers here in the quarter. Just wanted to see if that kind of – should we kind of view that as more of a pull forward on that side of the house? Or was that somewhat contemplated as we think about just guidance going forward and kind of the 2030 timeline?

Yeah, thanks for the question. When we looked at the underground, the work mix coming in, you know, with DSI in that segment as well as just broad-based, you know, what I think is execution in the segment, we did a nice job. And I do believe that's where your earnings improvement are coming from, from EUI. So, you know, not to say we can't improve some of the electric segment, but the, you know, as we discussed, that's where you're going to see the incremental margin improvement. I do think it continues to get higher and we have the ability to operate in double digits.

Great. And then, as we kind of think about, too, we've heard, you know, just even over the past 30 days since the investor day, we've seen a lot more, I guess, rhetoric and just kind of commentary from a lot of, whether it's developers or utilities in general, or even the hyperscalers, just on the notion of kind of more of a bridge power type of approach. Is that something that is kind of an incremental opportunity, just thinking that, you know, we can go first somewhat off-grid, if you would, and then kind of provides the opportunity to then build out on the transmission side so you kind of get two bites at the apple? Is that a fair assessment, or is that kind of overstating?

I mean, everyone has a different solution to the issues of lack of generation. So I think when we look at it, you know, the easiest and I think the best way is connect to the grid. And most of our customers want to go to the grid at some point. There is bridge power solutions. They're out there. You know, there's Bloom and others that we're involved with on jobs. And I do think that is a good bridge power in many ways. And it will end up being backup power for the most part at some point. So to have a microgrid at that scale with that intermittency and the type of learning that the chips have, it's very difficult. And not many people can build those microgrids and run them. Utilities are very good at it. And, you know, it's much easier for them to do it than it is to try to run a microgrid from a technology company. So, yes, it's complicated, and the lack of generation is creating some opportunities for us on bridge power and many things. But we're involved in all of it. You know, I would tell you the large majority, vast majority are going to the grid at some point.

Thank you. Our next question is from Andy Kaplowitz from Citigroup. Please unmute your line and ask your question. Hey, everyone.

Hey, Andy.

I'll stick to one question maybe in a couple of parts. like you mentioned your prepare marks that much of the additions to backlog were new large load facility project awards and i i think it's fair to say that you're seeing much more of these types of words awards so do these awards tend to be duke over a billion relatively consistently and how much of that acceleration that you're seeing is simply that you've just been able to educate your customers that the quanta can essentially do it all as you've told us and would you expect large load orders to continue to ramp up from here yeah i'm not sure who said that about backlog it

wasn't me but i would tell you there was a large it was largely across all segments all all disciplines the backlog went up including uh some 765 that was probably less than 25 percent of the increase but it was broad-based it was some large load center but you know it was a T&D and you know across our segments so so I would tell you like that's it was normal course to me it was no there was no like something that stood out to say oh this is a large project that drove that beat I expect our backlog to continue to rise. Our next question is from Stephen Fisher

from UBS please unmute your line and ask your question. Thanks good morning I know you guys just only gave 2030 targets, but I wanted to look out maybe even a little bit longer term because it seems like a part of the narrative being reflected in the stock is this longer term good visibility that you have. So Duke, I mean, you've made some comments here and there about having some kind of programmatic discussion or opportunities beyond 2030. So I was hoping you could perhaps elaborate a little bit on those opportunities. To what extent is this mainly transmission projects? Does it include other data center opportunities directly? Is it renewables? And to what extent do you have any more formalized agreements that go out actually that far beyond

2030? I mean, we're looking at work beyond 2030 for sure. I do think you'll see an elongated cycle. you know I don't think you're looking at something that's you know stops in five years you're seeing decades type it took us I don't know 75 100 years to build a grid that's there today I don't think you can double the size of it overnight for sure not in five years so it's going to take a while to do that you're seeing orders out on combined cycle engines into 2030 if I'm not mistaken so if you're just getting orders in 2030, it would tell you that the CGTs take three years to build once they hit the ground. And you're in 2033 at a minimum on the orders you get today. So I think when you think through it, the transmission, the infrastructure, and what we see in front of us with robotics, the way the grid's used, the power, electrification, I just see more demand, more demand and generation and the electrification of the world so i just we see it for a decade plus

thank you our next question is from julian de moulins from jeffries please unmute your line and ask your question to unmute your line on telephone please press star six

good morning it's brian and so on for julian please go ahead uh yeah just um just to follow up on your relationship with nice source uh the utility recently announced um the alphabet genco expansion on top of the original amazon program just curious if that creates incremental scope for quanta and more broadly uh is the genco model um generating additional you know pipeline opportunities uh conversations beyond nice source particularly in that midwest region you had mentioned, an opportunity of $5.7 billion related to NYSource. Just wondering what your thoughts are on expanding that market opportunity. Yeah, we continue to expand, you know, that

opportunity in the Midwest. I think, you know, you're seeing more demand, and we talked about that early on to be a program, and I think we'll continue to evolve, and none of the CGT or even any of the generation for the most part that's been announced is not in our backlog you know we discussed air permits and things like that is is that as we get air permits and things you know as that progresses you'll start to see that come into backlog um probably the later half of the year and beyond but we continue to have a good relationship and and at looking at that programmatic spin that you're seeing and they're announcing so we're right in the middle of it we're right there with the client on both sides of that. And again, we talked about 5.7 that's growing every day. So we like the area, we like my source, and I think it'll continue to grow.

Okay, great. And just one follow-up on the backlog. You mentioned 7.65 was, I think, less than 20% of the increase. How should we think about the relationship with the AEP and the cadence of those transmission projects stacking up in the future backlog over the next

18-24 months. They keep announcing, you know, a bigger capital spin and we keep supporting it. So, I think you can look at our backlog and look at the way that the relationships are going with utilities and expect us to incrementally grow our backlog along with the utilities. We have a great relationship with AAP. As they announced 765, we're right in the middle of it with them, both on equipment as well. You can see the investment that we made in the equipment in the quarter we purposefully put it in the script to show you that we're moving forward on significant dollars against that 765 bill in the vertical supply chain. So we're right there together and we have a U.S.-based supply chain that I think de-risk us and AEP and that has led to work and great opportunities together across the board on their system. So we're excited about it, and we're just getting started. It's very early, and I think you'll continue to see a building of backlog. And this is just a, you know, what I would consider the 765 we put in was really an MSA that is normal course. So I'm excited about what we can do there, and we're just getting started.

Our next question is from Ati Modak from Goldman Sachs.

please unmute your line and ask your question. Yeah, hey, Duke. I guess on the orders, you mentioned orders duration for CCGTs. Can you help us understand if the gas generation opportunity is something you expect to actively lean into and grow as a core focus over the years? Or should we think of that as more of an opportunity has come through from the JV type solution? I guess we're trying to scale and understand what the scale of that opportunity could look like for you specifically.

It depends on the risk. I think we're comfortable on the single cycles. We're comfortable on many things. When it gets to a combined cycle, we'll be prudent about how we take risk on them. And I've been around a long time. I've seen failure. And we're not planning on that. So I believe as the market progresses, as we progress as a company in those type markets, you'll continue to see it grow. We're highly focused on it. It's something that we see as a great addressable market, that the inbound calls are daily. And I believe we can build them. But we're going to build them under contract structure that makes sense for us and the client and the rate payer. So it just takes a bit. They're long cycle type work, and it'll take us a while to get the contract on many of them. But it's something that you can't stick your toe in the water. You've got to jump in. And we're going to execute very, very well. And we're going to make sure that we've de-risked ourselves against the market. So it's something we're focused on. Thank you.

Thank you. Our next question is from Sangeeta Jain from KeyBank. Please unmute your line and ask your question.

Good morning. I have one for Jayshree. Jayshree, you left your free cash flow guidance unchanged. Just wondering why, I know your CapEx went up, but it only went up by like 50 million at the midpoint. So can you help us understand what you're thinking through?

Yeah, hi Sangeeta. Not really nothing to read into that. We gave a good range when we guided in the fourth quarter about our free cash flow. And yes, while we were pleased with the performance in the first quarter, it's just early. we don't really need we didn't feel the need given the the expectations where we are today to change that with the 500 million dollar range that we provided you guys in the fourth quarter having said that yes do i feel like we have greater confidence about being at the higher end of that cash flow range um yeah i do so um as the year progresses you can expect us to update you

accordingly thank you thank you our next question is from brian brophy from stifle please unmute

your line and ask your question yeah thanks good morning uh congrats on the nice quarter um you talked about meaningfully growing your off-site construction capacity in your opening comments you talk about what you're seeing there that is driving these investments did you guys see any meaningful awards in that business in particular this quarter. Remind us how significant of a business that is and just the margin profile there. Thanks. I mean, the announcement was

supporting both our manufacturing capabilities. I mean, in the prepared remarks, which would be our transformer manufacturing, which is majority of the capital. We have increased our size substantially on a prefab and pre-manufactured type product that Cupertino was the first mover for multi decades so we're supporting that we're growing that business um you know it's a labor force multiplier the way i see it and it allows us to really expand and work with clients of across the country as we see that market will continue to expand it but it's much more of a programmatic spend and it's not something you're going to see these large chunky projects it just continues to be MSA-type-driven programmatic spend against the AI build, both cloud-based and learning-based type products. So, I think when we look at it, we'll continue to expand that due to the fact that labor constraints and we can force multiply what we have, you know, the fungibility of our labor as well. So, we like the area, we're investing in it, and, you know, the inbounds are daily.

Good, thank you.

Our next question comes from Steve Fleischman from Wolf Research. Please unmute your line and ask your question.

Yeah, thank you. Can you hear me okay?

Yeah, hey, Steve.

Hi, good morning. So I guess two questions. First, just on the gas plant opportunities, I know you mentioned you're going to be careful on your risk controls on the combined cycle. Just how confident are you that you can get significant share with while also being careful? You know, are you losing business to competitors that are not necessarily as risk averse? Just any thoughts on that?

I mean, it's a big market, Steve. So when we look at it, I think capacity, it comes down to cross-skill labor, multi-trade labor that we have. And, you know, so we can either work for others or do it ourselves in many ways. We built a nice programmatic, you know, spins in areas that I think will continue. We have others that are, you know, coming in. It was not something that the company was focused on five years ago. And when the risk gets less and we're able to do it in a prudent way for the rate payer and we're de-risking certain aspects of those things, you know, the single cycles don't bother us. The combined cycles do. So as we get into that, we look at it from a risk profile and work with the client. And I think it's the right way to look at it. If you try to fix FEM, they get expensive. And the risk out five years from now is substantial when you start looking at it. So I think we're defining those risks, working contingencies, making sure that everyone is looking at it right. And for the most part, our sophisticated customers we work with realize it's the right way to look at total cost. And we're able to do that in a way that benefits everyone involved. So we'll continue down that model, and it's worked very well. You know, we're not going to win them all. It wasn't something that we expect to win them all. It's a great business for us. We have not acquired against that. We built this organically, and we'll size it to the market. It's not something that I think Quantum will grow with or without it.

And then just on utility interconnection issues, I'm curious if you're doing things that would help accelerate that. Is there things that you can, you know, this three-mile island restart not being interconnected until 2031 potentially was kind of shocking. Just what are things that can be done and maybe your involvement to kind of accelerate, you know, people getting interconnected?

Yeah, I think, you know, look at the transformer manufacturing investment matters a ton. when you start talking about 36 months on transformers things like that and then you have you know inbounds from europe that are held up in the overseas and things of that nature we've really de-risked the transformer piece of that so we've helped there we can build large voltage high voltage line faster than anyone in the world and i think we've set ourselves up nicely to bring jobs in faster. That said, I think it's more about the impacts to the ratepayer and getting past that we need every incremental piece of capital spent for transmission benefits the ratepayer. And that's what we have to do as an industry is make sure that we're telling the right story so we can move these faster. Permitting reform will certainly help speed that up. But the cues are complicated. We're in the middle of them all the time, and it's a moving target in many ways. So, we're constantly in the middle of trying to help expedite that through technology. We have a large planning group that works with utilities, but the target moves, and we continue to, you know, try to bring it in in the field. So, that said, the more we're involved up front, the faster it goes, as far as I'm concerned, and benefits the ratepayer all the way through. So, we're all looking at permanent reform and ways to mitigate and get these things in the queue quicker, no doubt about it, and we're doing it, I think, in many, many areas.

Our next question comes from Alex Rigel from Texas Capital. Please unmute your line and ask

your question. Thank you, and congratulations on a nice quarter. Government policies and regulations have a tendency to shifting market opportunities. Can you talk about the few that are most relevant to you today and how you're positioned to take advantage of or sort of

reposition yourself for change yeah like i think when we think through generation you know our renewable business we haven't talked much about this morning we had a nice quarter we really did and i think we built backlog on it um so like i why we don't say much about it it becomes a dirty word at times i really like the solar batteries and even the wind in areas it makes a lot of sense and so but you've seen us position ourselves nicely and then the cgt's and the gas generation so it's all forms of generation now for us and we're trying to be the solution that people are asking for with the fungibility of craft skill labor across those markets so we can move across markets we see markets that no one sees and we're able to take the labor build on the front side of it talk with technology talk to our customer we listen and we're listening to them over this decade of making sure that we can move in the areas that we see provide the most benefit to our people and to the to the ratepayer and our stakeholders so we've done it we continue to do it that's one example telecom you know it's growing a bit we see bead we see that you know connecting data centers as well so we'll grow that business i i like our verticals right now and our supply chain as well so there's not much that we can't solve here we just have to continue to execute underneath and the shiny objects are the shiny objects but our execution and the guys men and women that build are just you know as far as i'm concerned i'm the best in the world and then

secondly obviously plenty of opportunities domestically but international obviously is feeling the same kind of opportunities develop at what point does quanta get more aggressive in the

international market you know we've kept our australian assets and they've done a really nice job there and we can jump from australia need be to you know really europe and across the world i don't see that any time frame in the near future but it's certainly maybe for the next guy or lady it's very difficult to go international and we have plenty of growth that we see here for a period of time but we're certainly set up to do that if need be thank you sir thank you our

next question is from manish samaya from cantor pittsgerald please unmute your line and ask your

question uh thank you so much for taking my question uh duke uh two questions one uh the demand picture looks uh fairly robust across the board but have you seen any signs of potential weakness in any of the markets geographically or end markets by sector? And have any of the constraints changed? I know in the past we have talked about craft labor, supervision, all that stuff being a challenge. So that's question one. And then as part of that, if you can just touch on the M&A pipeline, what opportunities are you seeing geographically in my business and and where would you want to do something if uh if i like opportunity arrows

thank you i'll go backwards so mna we see plenty of opportunity there there's there's great businesses 100 year old companies that have long-standing you know what i would consider execution across many many markets and our ability to execute on mna is you've seen it over the last decade. You'll continue to see it going forward. The inbounds are strong. People believe in what we're doing. People believe in our strategies, and they want to sell their businesses here. We're happy to have them and happy that they want to be here. So, you'll continue to see that. I think you're starting to see the strategies come together here and the things that we invest in. There's not one market. We have some holes in the business in certain regions. We have the holes in the business in certain, from my standpoint, certain verticals. So we invest in them. But the great businesses are there. We're not doing this for a labor strategy. We're building labor nicely underneath. We added, you know, relatively five to six thousand organically last year and we'll do that again this year plus so i've said this before you know labor builds labor adjournment makes adjournment money doesn't do that the more adjournment you have the more you can scale and i we realize that and we invest in it constantly and have for over a decade well over a decade so you know it's not m&a is not a labor strategy for us so so that's out and the rest of it's just you know we've given i think good guidance on what we think for a strategy and we'll invest against it um and also when you think about we talked you talked about labor a bit as well and the the fabrication facilities the things that we're doing there pre-manufacturing on both on both sides of that whether it be dsi multi-trades we're using that investment with technology to really expedite what we can do in the field and take risk out of it i mean you're starting to see the seasonality of the business even change a bit I can't tell you that that's what that looks like yet because I haven't got my head around it. But the first quarter, you know, it doesn't fall off as much. And we had some northern climbs that were tough. And you've seen us operate through those markets this quarter. And I think you're going to build a business that is resilient across four quarters and predictable. So I like what we're doing there. And the end markets continue to, you know, I've not seen holes in them. There will be stops and starts when we get this big and we start adding this much backlog and the business grows. We're not going to add the same amount of backlog every quarter. Those things are, you know, it just moves around. But consistently on a CAGR basis, I expect our backlog to continue to rise for, you know, as far as I can see it over time. Now, it might not be quarter over quarter, but it'll certainly be year over year at this point. And we like what we see out there, and I'm not seeing holes in the markets that we serve.

Thank you.

Our next question comes from Philip Shen from Roth Capital Partners. Please unmute your line and ask your question.

Hey, guys. Thanks for taking my questions. You took your technology and load center outlook up substantially, increased from 70% to 110% of revenue growth. So we heard a lot of hyperscale has increased CapEx for the year last night. What do you see for the coming quarters for this end market? Can you give some additional color on your conversations with the hyperscalers? And is there a potential that the segment could grow even faster than what you've laid out?

Yeah, just to comment on the slide that you're discussing, that's directional. And if it was up to me, I wouldn't have that slide. But I'll defer to the team on it. But it is directional. So you're right. It is growing fast and it is a fast paced market. We've made acquisitions against it. So you can expect that to grow faster than things that we haven't made acquisitions. It's a great market. We've talked about the technology being a trillion plus TAM. And you can see what the capital being spent from all the larger hyperscalers out there. So, yes, I mean, it's going to grow faster, and we continue to lean into it. Opportunities are daily, and we'll take advantage of those opportunities when they come in. From balance of plant data centers to pieces thereof, I just think we're doing a nice job there. We talked about it. We had a strategy. We're executing against it. And, you know, we are looking at 100-plus percent growth in it due to acquisition, due to strategy, due to a lot of things. But organically as well, it's growing nicely, and we'll continue to see it grow. we're early i think we've only been doing this like a year and a half i mean you can see like how big the business is already uh if you do the math it's it's a huge business and it'll continue to grow i i think people come in here daily because we can execute we can execute and we're certain and we can do it fast and we have the craft on the back side um we're not building homes so we're certainly something that that we can do and do well we're excited about it great thanks

Thanks, Duke. Second one here, maybe this is more for Jayshree. Can you give some color on why the 26 EPS guide percentage increase was less than the Q1 EPS beat? How much of the Q1 earnings beat was a pull forward potentially? You guys beat by 30% on the adjusted EPS line on Q1 or in Q1, but the EPS guidance was only raised by 7% in 2026. Were there some one-timers? Thanks, guys.

Yeah, I'm not following that math, Phil. I'll admit, we raised our EPS. We took forward our beat in the first quarter, and we also raised our guide in the back half, and that's reflected in our adjusted EPS. We had a little bit of a – most of that was EBITDA strength for the year, as well as a little bit of a tax beat that we carried forward. But the beat should be reflective of both the first quarter, as well as our views of the back half of the year?

Yeah, look, I would also say we take a prudent approach to it, Phil. I mean, I think when we looked at it, we certainly were prudent about it. It's not normal for us to move the backside unless we're, you know, feel fairly confident about it. And the way I did the math, we raised it 50 million and passed a beat, but maybe my math's wrong, but anyways, I get a pass, CEO, Matt.

That's right. Anyway, I think we're good.

Thanks, guys.

thank you as a reminder if you could please ask one question at a time and then requeue for any extra questions our next question is from jamie cook from truest please unmute your

line and ask your question can you hear me um congrats on a nice quarter i guess duke a lot of the questions here are more sort of on the acquisition front which you guys have been very successful about um i guess you know my question is more on potential for portfolio optimization on the divestorship side, you and I have talked about businesses that perhaps, or I've asked you about businesses, perhaps that detract from growth margins or returns. And as we become more of this, you know, broader power play, I'm just wondering if there's parts of the portfolio that aren't meeting financial metrics, you know, where there's an opportunity there, I guess, to, you know, enhance the growth or margins or returns as these other businesses are just lower margin in return. And I guess just my second question, you know, a lot of the acquisitions you've done have been more small mom and pop companies that you've known for years. To what degree do you see something more perhaps transformational happening in the space or the need for that to happen, just given, you know, how fast the market is growing and the ability to just do something quicker to, you know, be able to meet customer demand that's out there?

Thanks, Jamie. I mean, we look at the portfolio against the strategy constantly. And I do think, you know, we always try to optimize it, whether it's not invest capital in it, stay in it for the long haul. So we're always looking to optimize our portfolio. And if we can get the right returns on things, if it's the right timing, we have no issues to investing. That said, we're able to use craft in many ways across segments, across business lines that I think we've done a nice job with where it may look like a pipeline business, but it's not. And so we can do other things there that we have and optimize it all for purpose. That said, we will continue to look at those things. I think as we look at, you know, the small mom and pops are now a billion dollars. So they went from 100 million to a billion. in many ways so there's no longer a small mom and pop per se um they're all large businesses now that have grown in markets that we like especially the good ones so we're able to really lean into those and it's the same relationships that we've had for decades that are now you know three 500 million dollar businesses and i don't see us i think we transformed this business five years ago per se when we started leaning into the front side of the business when we started leaning into technology, leaning into other markets. So, the transformation's been done. Now, it's all additive, and I think, you know, we talk about it a lot around here, that flywheel's moving fairly rapidly at a breakneck pace. So, as we see that, we're growing organically nicely, and we're growing double-digit plus there, as well as we're able to see acquisitions that are growing, you know, faster than that. So, our acquisitions are coming in and growing much faster than the whole, and they're not little. So I think there's no, you know, we don't see any reason why we can't either buy our stock back or pay a dividend. But more importantly, you'll continue to see us make acquisitions against the strategy is probably the primary use of capital going forward.

Thank you. Our next question is from Justin Hawke from Baird. Please unmute your line and ask your question.

Great. I've got kind of a two-part question in one, but really it's just about, you know, Duke, you made the point how, you know, the seasonality is almost changing in your business. And if you look at the revenue this quarter, it was up sequentially, which, you know, essentially almost never happens for you because, you know, weather-wise, there's just not as much productivity in the winter. So I guess the two parts of the question are, you know, one, what markets or what specifically came in, you know, so much stronger than kind of the way that you had expected the quarter to come out? And then the second part of the question would be the book to bill 1.6 times this quarter was also very strong. Usually, you know, you guys will call out something like a big award or anything else, but there wasn't anything in there. So was there anything lumpy in the bookings this quarter or just kind of broad based?

No, it was a broad-based backlog, but, you know, I discussed the 765. It was the first, like, meaningful 765 that came in. It was less than 25% of the beat, so, you know, call it less than a billion in there. But that was the biggest. It was an MSA type over a multi-year period that can grow and expand, not with the client that we've discussed. So, I think that said, that's the thing that was in there. But across the board, really. And I think there's opportunities to continue that over time on a CAGR basis, for sure. The CGT business is growing nicely. We're highly focused on it. And we have nothing in there on that, which I think you guys are seeing the opportunities out there. It's something that could be substantial and they are chunky.

We talked about things stacking. I think it's going to stack.

you're going to start to see it you know show up in the revenue show up in the profitability of the company over time and you know i we look back and we're at 30 bps growth with no acquisitions in the quarter i think we've done a nice job to set ourselves up and you'll see the company stack

in the back half and beyond thank you our next question is from adam thalema from thompson davis please unmute your line and ask your question hey good morning guys great quarter

congrats um two questions i guess first on the revenue beat at electrical was so substantial just curious what drove that and then i'm curious on the iran war how your customers are responding

to that and higher commodity prices yeah i mean i i'm not seeing you know obviously diesel's up a little bit but it you know i think when we look at that it's just such a little piece of our spin And our guidance contemplates anything like that. And we don't rain, diesel. Everything's contemplated in our guide. So not concerned with that. I look like any other American. I'm worried about the troops, worried about them getting home. And we appreciate what they do over there and keep us free. We're able to do the things that we're doing today. And God bless them and our country. But that said, that's all I'm hearing is how do we help the troops? How do we make sure they get home safe? And we have jobs for them when they get here. So that's what we're doing on our part. I'm not hearing anything, you know, obviously there's certain areas that you're hearing, but nothing that would affect us or what we're doing. our supply chain looks good um there's there's a little stuff running around but we're able to execute around most things and i'm not seeing anything that would impact our customer ourselves at this point as we see it i mean i look natural gas lng exports i think it's a form of national security you're going to continue to see lng you know that that energy is national security and we're going to build it we're going to drill here we're going to drill for gas we're going to do a lot of different things here while we have renewables and other things as well so I think the national security aspect of what we do for energy matters and it's showing up more so than ever which is good for our business on both sides the natural gas business pipeline business is great so we're excited about it all and I'm not seeing an impact the customer thank you our next

question is from Mahit Mandeloy from Mizuho please unmute your line and ask your question Mahid, please unmute your line and ask your question. We'll take our next question from Michael Dudas from Vertical Research Partners. Please unmute your line and ask your question. Michael Dudas from Vertical Research Partners, please unmute your line and ask your question.

Thank you. Can you hear me now?

Yes.

Please go ahead. Thank you. Yes. Hi, Kit, Katri, and Duke. Duke, you said in the past when asked about all the market activity and excitement and all the development and such that even if a small percentage of that came through, this would be great. Just want to get you a sense, given the visibility of what you guys are seeing across the board, are some of the orders and development and the discussions more real now than they would have been six or 12 months ago, and even in the light of just the extraordinary capital expenditure numbers that the hyperscales are putting out? Yeah, I mean, I think you're seeing our utility

customers firm up what they believe is real large load requests. As that firms up, I've seen it actually pretty steady. I'm not seeing the fall off that others may think that's out there. It's very real, the load that we see. I think we've got to watch the rate payer. We've got to make sure that the load that's coming on is beneficial to the rate payer. We're seeing that show up in rates. We're seeing decreases in rates due to load and infrastructure. And so, as we see that investment on the Northeast and all across the country, it should drive rates down. We've got to talk about it, those impacts. But I think the load's real. I mean, obviously, there's some outliers here or there, but there's growth underneath those. And it's not just data centers. I mean, you're seeing on-shoring of chips. You're seeing on-shoring of robotics. You know, you can see what Elon's doing with robotics. So, that's driving load and all the things that support that. And we just see a big market that is not just AI. You know, the fungibility of our craft, both sides of it, both segments, our ability, mechanical, as well as electric, to move that craft across vertical markets, I think is, from my standpoint, that's what we continue to drive home, that compounding of that portfolio over time. And that's what it's allowing us to do it as all those markets that we see. Thank you.

Our next question is from Mahit Mandeloy from Mizuho. Please unmute your line.

Hey, sorry about that earlier. Thanks for the question. Sorry if I missed this earlier, but could you talk about like the – if M&A is part of the 2026 guidance here? I know you didn't do any acquisitions in Q1, but any thoughts on how the acquisitions could shape up the guidance for the rest of the year? Thanks.

Any acquisitions we do on a go-forward base be added to guidance that we get, and I expect us to do acquisitions over the next nine months, so you can expect that to be in there. but we're not contemplating any of that in what you see today. It's exactly what the business looks like today. We made no acquisitions in the first quarter, and that's what the guidance is. The growth on it is 30%, and it's based upon all the things that we did last year as well as setting the company up for the future. So that's what's in there today. I do expect us to do some M&A over the next nine months, probably over the next two or three years. I mean, we continue to see the inbounds that are robust and a way to deploy free cash, so I'm not seeing a slowdown on that. There'll be orders and there could be years we don't do an acquisition. We're not. The company can grow nicely without them. When we do see them, it's extremely additive to our approach and the way we look at our portfolio and all the

opportunities that we see. Thank you. Our next question is from Liam Burke from B Riley Securities. Please unmute your line and ask your question. Yes, thank you. Duke,

you mentioned in your prepared comments that many projects now are being negotiated. Is this an increasing trend in the business and it would imply that it's pressing your competitive advantage even

further? Yeah, I mean, I think it's the right answer for the client. When we look at it, you're total cost and things that with a large supply i mean we're the top five buyer of hv equipment there's ways that we can help there it's just a smarter way to do business in these markets that you're really discussing total cost and so versus having a discussion on a widget so i think we've tried to put ourselves as a solution across these verticals and it's allowing us to negotiate a total cost basis versus a one-off project and be prudent about it we work with regulated customers and we know what that market looks like we have they have a tried and true record as well and we can work together on what's the right answer for each client and tailor it that way and for the most part we've always negotiated a lot of work and i think we're continue to do so. It's just larger. The programs are bigger. The certainty of labor is something that I think is really important for us to make sure that the client and our clients lean on us for that. And we're able to really deliver that certainty. They have capital spends they need to spend and we need to get, you know, the cues are getting backed up. Things are pressures and we're being asked to do a lot. And I think this company has stepped up and is providing those solutions are necessary to make this infrastructure of north america move and i'm excited about it and i'm excited where we sit and yes i mean we're looking at total cost all the time but it's a prudent approach to the rate payer to drive the rates down great thank you our final question

is from chad dillard from bernstein please unmute your line and ask your question hey good morning

guys um so what would it take for quanta to do full turnkey data center adults at scale um rather than just doing you know a few here and there um is this something you can achieve on an organic basis uh do you need to do more m a uh and i'd just be curious to understand you know where that

strategy would rank uh within your set of priorities i mean mvp the type the things that we do in the high voltage interconnections are, you know, the sweet spot for us at this point. We are doing some balance of plan data centers today. If our clients push us that way and ask us to do that, we can do it. We can do it with the people that we have. Yes, if we do it at scale, we need to add. And I think, you know, depending on what the client, how sophisticated the client is on the other side will depend on how much or less we need to add. But from a programmatic spin, project management qaqc all the things that you would expect we have all that internally engineering we probably have 2 000 plus engineers internally we're able to scale those things and uh you know i think the company will look at all all projects coming in and try and try to deliver on both sides of that where there's uh you know areas that we can be successful we'll lean into those with customers but i i think you'll continue we'll evolve it we're also you know cognizant of other bills that we need to be on and other customers. So as we look at it, yeah, I do think the company will do balance of plant data centers and other things. We continue to see the inbounds coming in and it's all due to the fact, the certainty of craft skill labor. If you're just someone that does not have it, it's very difficult to say you're going to show up. And I don't have to be there that day if i work for someone else i don't um i cannot i cannot show up um and that's the issue that you'll start to see in the markets as they get you know as you start to see constraints so i think for us we just got to continue to deliver on what we know how and we're very good at specialized craft and providing solutions we'll do it and if they want us to build the whole thing we'll do it we'll do that as well and provide generation and maintain it if they want it

I don't know if it's helpful. And then just shifting gears a bit, I'd love for you to talk about your Canada operation in electrical infrastructure, just what you're seeing on the pipeline there. How are you thinking about how that geography unfolds in 26 and then maybe even over the next couple of years?

Yeah, I think that, you know, we had some pipe work last year going on at this time. And we're not involved in anything right now. But I see over the next few quarters, we'll start to see projects come in on the pipe side. We have a nice team up there that certainly can execute. So, I think you'll start to see awards on that in Canada. Our data centers up there are moving around. Our renewable business up there is nice. It's just slower. It's slower to recover. We're optimistic. We're using engineering in the U.S. we're doing a lot of different things a way to leverage that workforce and the margins are picking up uh you know it's not where they were wanting to be at this point yet but the neither is the economy so we're doing a good job there mitigating risk and making sure that uh we're utilizing the labor and and what we've invested in in canada you know for the future and for what's going on in the states here so yeah we like the markets it's growing it's certainly not

parity of the U.S. yet but we continue to see improvement. Thank you. There are no more questions at this time. I'd now like to turn the call back over to management for closing remarks.

We want to thank the men and women in the field. They're the very best in the world. They make these numbers and they are the ones that deserve the credit. We'd also like to thank you all for participating in the conference call. We appreciate your questions and your ongoing interest in services. Thank you. This concludes our call.