Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $12 billion | up 57% from $7.6 billion |
| Adjusted EBITDA | $1.4 billion | up 69% |
| Adjusted diluted EPS | $6.06 | up 82% from $3.33 |
| GAAP diluted EPS | $4.55 | more than double $2.24 |
| Backlog | $64 billion | $10 billion sequential increase |
Guidance and outlook
- Revenue: $41.3 billion to $41.6 billion
- Adjusted EBITDA: $4.4 billion to $4.49 billion
- Adjusted EPS: $17.90 to $18.30
- Free cash flow: $2.5 billion to $3 billion
How management sounded
Confident (+8 on our -10 to +10 scale). Management delivered record results, raised full-year guidance across all metrics, and expressed strong conviction in long-term compounding growth driven by accelerating demand. Management sounded more upbeat than on 92% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Growth and Margins
Asked: Are there constraints to sustaining growth in 2027, and is margin expansion structural?
Answer: Management sees no major growth inhibitors and believes margin expansion is supported by training leverage and off-site manufacturing efficiencies.
Backlog Composition
Asked: Was the sequential backlog gain driven by specific large projects?
Answer: It was broad-based growth across renewables, T&D, and power plants, with nothing specific pulled in; large transmission projects are still in early stages.
Data Center Risk
Asked: Are there risks of data center projects slowing down or going dark?
Answer: Management is not concerned, noting they work with the best-capitalized customers and have the ability to shift labor to other verticals like pharmaceuticals or power plants if needed.
M&A Strategy
Asked: Will M&A move beyond power and utilities?
Answer: Acquisitions are focused on strengthening fabrication, engineering, and supply chain capabilities to support existing markets, not necessarily moving away from power.
What to watch before the next call
- Supply chain constraints, specifically regarding transformers and breakers, which management is actively mitigating.
- The timing and cadence of large transmission project bookings, particularly in Texas and Ohio.
- The impact of seasonality on headcount and growth in the first quarter of 2027.
