This was a clear earnings-and-revenue beat, not just a strong year-over-year comparison. Diluted EPS of $1.64 exceeded published pre-report estimates of roughly $1.13-$1.14, while $1.23 billion of revenue topped the roughly $1.08 billion expectation. The beat also came with higher profitability: gross margin rose 1.9 points and EBITDA margin rose 1.3 points, so the result was not simply bought through lower-margin volume (Income Statement; EBITDA reconciliation).
| Metric | Q2 2026 actual | Comparison | What changed |
|---|---|---|---|
| Diluted EPS | $1.64 | Published estimates: ~$1.13-$1.14 | Above expectations; $1.03 a year ago (Income Statement) |
| Operating revenue | $1.232B | Published estimate: ~$1.08B | 33.7% year-over-year growth (Income Statement) |
| Organic revenue growth | 30.0% | Total revenue growth: 33.7% | Most growth was organic, not acquired (Organic revenue reconciliation) |
| EBITDA / margin | $128.6M / 10.4% | $84.2M / 9.1% a year ago | EBITDA up 52.7%; margin expanded 1.3 points (EBITDA reconciliation) |
| Full-year revenue outlook | $4.5B-$4.7B | Prior outlook: $4.3B-$4.4B | Midpoint increased about 5.7% (2026 Forecast) |
| Full-year EBITDA outlook | $410M-$425M | Prior outlook: $345M-$360M | Midpoint increased about 18.4% (2026 Forecast) |
| Backlog | $4.55B | $2.98B a year ago | Up about 53% year over year (Backlog table) |
The guidance increase is the more consequential part of the release. Management lifted the revenue midpoint by about $250 million and the EBITDA midpoint by about $65 million versus the outlook issued after Q1. That EBITDA increase is much larger proportionally than the revenue increase, indicating that the company now expects the improved project mix and execution to carry into the second half rather than treating Q2 margin expansion as a one-off (2026 Forecast).
Demand evidence supports the higher outlook, although it is concentrated in the faster-growing business. Backlog reached $4.55 billion after more than $2 billion of quarterly bookings; E&M revenue grew 41.6%, including 36.9% organically, while T&D grew a much slower 7.1%. The data-center-led E&M business is therefore doing most of the work behind the upside, while T&D remains profitable but is not accelerating at the same pace (Segment results; Organic revenue reconciliation; Backlog table).
Cash generation and leverage add support, with one timing caveat. Six-month operating cash flow rose to $196.8 million and free cash flow to $167.0 million, while net leverage improved to 0.3x from 0.4x at year-end despite a $147.6 million acquisition outlay (Cash Flow statement; Net debt and net leverage reconciliation). But some of the cash-flow jump came from working-capital timing—especially a $98.9 million increase in contract liabilities and $43.8 million in accounts payable—while receivables absorbed $127.9 million. That does not erase the liquidity improvement, but it makes the six-month cash figure less directly repeatable than the earnings beat and guidance raise.
Read the original 8-K on SEC EDGAR ↗