> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Quanta CEO Caps Utility Margins At 10% To 12% 'By Design' Despite Record $12 Billion Quarter - URL: https://www.bullished.co/quanta-ceo-caps-utility-margins-at-10-to-12-by-design-despite-record-12-billion-quarter-047ca00d/ - Published: 2026-10-29T14:56:05.000Z - Updated: 2026-10-29T14:56:05.000Z - Description: Duke Austin pointed analysts to returns on capital, not margins, as Quanta raised its 2026 revenue outlook to $41.3 billion to $41.6 billion. - Author: Matteo Parrino - Tags: Earnings, PWR, Industry: Industrials [Quanta Services](https://www.bullished.co/tag/pwr/) CEO Duke Austin said on the company's third-quarter earnings call Thursday that its utility business will stay at 10% to 12% operating margins "by design," even as [revenue jumped 57% to $12 billion](https://wtop.com/national/2026/10/quanta-services-q3-earnings-snapshot/?ref=bullished.co) and data center demand builds. Quanta, which builds and maintains power lines, substations, pipelines and other infrastructure for utilities and large power users, is guiding investors toward returns on capital instead. ## No leap to peer-level margins A Truist analyst asked why Quanta's margins could not structurally rise above the 10% to 11% it targets, given data center growth and the margins of public peers. Austin answered: "we're not going above 10 to 12% in there by design." He added that "as far as pure operating income margin expanding to some astronomical level, I don't see it." He expects modest increases and room for improvement in the underground segment. To a BMO Capital Markets analyst, Austin said the utility business is about $20 billion of the electric segment, at roughly 11%. "It's not a margin story," he said, and he urged watching return on invested capital instead. He credited headcount for some of the leverage. Quanta grew 6,000 to 7,000 employees in each of the last two quarters and about 26,000 this year, some of it through acquisitions, and training costs are now spread over more people. ## Underground margins could reach double digits Responding to a B. Riley analyst, Austin said the underground segment's margins are improving because of work mix, as mechanical and civil businesses grow inside it. He said the segment could post double-digit margins in some quarters next year, with first-quarter seasonality still a factor. ## A record quarter and a higher outlook CFO Jayshree Desai said adjusted earnings per share rose 82% [to $6.06](https://seekingalpha.com/news/4660044-quanta-services-non-gaap-eps-of-6%5F06-beats-by-1%5F03-revenue-of-12%5F01b-beats-by-1%5F03b?ref=bullished.co), and adjusted EBITDA reached $1.4 billion, up 69%, with an adjusted EBITDA margin of 12.1%. Backlog hit a record of about $64 billion, up $10 billion from June 30. For 2026, Quanta now expects revenue of $41.3 billion to $41.6 billion, adjusted EBITDA of $4.4 billion to $4.49 billion, and adjusted EPS of $17.90 to $18.30\. The EBITDA range implies a margin of 10.7% at the midpoint. Free cash flow is expected at $2.5 billion to $3 billion. Quanta ended the quarter with $2.3 billion of cash and total liquidity of $5.2 billion. The company's market value was $91.2 billion in Thursday morning trading. Austin also said Texas and Ohio transmission programs should produce "really good bookings" in the first half of 2027. Learn - [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/) How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording. ### Sources - [Quanta Services (PWR) Q3 Earnings and Revenues Beat Estimates](https://finance.yahoo.com/markets/stocks/articles/quanta-services-pwr-q3-earnings-113509709.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [Quanta Services Non-GAAP EPS of $6.06 beats by $1.03, revenue of $12.01B beats by $1.03B (PWR:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4660044-quanta-services-non-gaap-eps-of-6%5F06-beats-by-1%5F03-revenue-of-12%5F01b-beats-by-1%5F03b?ref=bullished.co) — seekingalpha.com - [Quanta Services: Q3 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/quanta-services-q3-earnings-snapshot/?ref=bullished.co) — wtop.com - [Zacks Investment Ideas feature highlights: Quanta Services](https://finance.yahoo.com/markets/stocks/articles/zacks-investment-ideas-feature-highlights-112300421.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [Is Quanta Services (PWR) Stock Outpacing Its Construction Peers This Year?](https://finance.yahoo.com/markets/stocks/articles/quanta-services-pwr-stock-outpacing-124003759.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance ### More on Quanta Services - [Quanta CEO On Data Center Slowdown Fears: 'Growth On Growth Right Now'](https://www.bullished.co/quanta-ceo-on-data-center-slowdown-fears-growth-on-growth-right-now-8693af3b/) - [Quanta Services Backlog Hits $63.73 Billion As Quarterly Revenue Climbs To $12.01 Billion](https://www.bullished.co/quanta-services-backlog-hits-63-73-billion-as-quarterly-revenue-climbs-to-12-01-billion-d8449838/) [All Quanta Services (PWR) coverage →](https://www.bullished.co/tag/pwr/)