Quanta Services (PWR) AI Stock Analysis

• Market Cap: $85.58B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 62.2
• Beta (1Y): 1.39
• Revenue Growth: 18.72%
• EPS Growth: 23.97%
• Country: US
• Employees: 58,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.16
• Shares Outstanding: 149,619,430
• 10 Day Avg. Volume: 1,243,093
• 30 Day Avg. Volume: 1,166,226
• PEG Ratio: 5.40
• Price to Book (P/B): 7.16
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 39.50
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 23.37
• Enterprise Value/Ebitda: 34.30
• 1Y Price Target: $593.17
• Price Target Upside: 3.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 13
• Revenue Forecast (FY): $33.43B

• Rating: 77 Outperform
• Price Target: $642.00 ▲(12.24% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by strong financial execution (scaled revenue, steady profitability, and improved leverage) and a constructive outlook from the latest earnings call (record backlog and upbeat 2026 growth/FCF guidance). Technicals also support the case with strong trend and momentum. The main constraint is valuation, with a very high P/E and minimal dividend yield.

Positive Factors

Scaleable Revenue Base

Sustained multi-year revenue scaling to ~$28.4B demonstrates durable market demand and strong execution across utility, renewables and communications. Scale improves purchasing, bidding competitiveness and overhead absorption, supporting consistent profitability and programmatic growth over years.

Record Backlog and Visible Demand

A ~$44B backlog provides multi-quarter revenue visibility and underpins predictable near-term cash generation. Contracted work across transmission, distribution, interconnection and data-center projects de-risks revenue timing and supports sustained utilization of craft capacity and capital planning.

Materially Improved Leverage

A sharply reduced leverage profile increases financial flexibility to fund organic growth, M&A, and strategic capex while preserving liquidity. Strong balance-sheet positioning lowers refinancing and covenant risk and supports disciplined capital deployment over a multi-year horizon.

Negative Factors

Tight Craft Labor Market

Persistent craft labor tightness raises structural execution risk and elevates labor costs across projects. Recruiting, training and higher compensation needs can depress margins and slow project delivery for 2–6+ months, complicating scaling plans that depend on rapid workforce addition.

Large Supply-Chain CapEx Requirements

Significant multiyear investments to build transformer capacity consume free cash and increase execution complexity. Near-term capex ($250M–$350M in 2026) tempers free-cash-flow expansion and introduces operational integration risk while benefits accrue over a longer horizon.

Limited Near-Term Margin Expansion

A sizable regulated and lower-margin mix (>50% regulated) plus mix effects structurally cap margin upside. Even with scale, constrained electric infrastructure margins limit operating leverage and the company’s ability to materially boost profitability absent higher-margin project mix or efficiency gains.

Quanta Services Business Overview & Revenue Model

Company Description

Quanta Services, Inc. provides specialty contracting services worldwide. The Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; energized installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The Renewable Energy Infrastructure Solutions segment is the involved in engineering, procurement, construction, upgrade, repair, and maintenance services to renewable generation facilities, such as wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The Underground Utility and Infrastructure Solutions segment offers design, engineering, construction, upgrade repair, and maintenance services to customers involved in the transportation, distribution, storage and processing of natural gas, oil, and other products; fabrication of pipeline support systems and related structures and facilities; and engineering and construction of pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. Quanta Services, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.

How the Company Makes Money

Quanta Services generates revenue primarily through contracts with utility companies, energy producers, and telecommunications firms. The company's revenue model is built on providing a range of services that include construction, engineering, maintenance, and repair of infrastructure projects. Key revenue streams stem from long-term contracts for electric power transmission and distribution, oil and gas pipeline construction, and telecom network installations. Quanta also benefits from significant partnerships with major utility and energy companies, which provide a steady flow of projects and contribute to stable earnings. Additionally, the company's involvement in renewable energy projects and infrastructure modernization initiatives positions it well for future growth, particularly as demand for sustainable energy solutions increases.

Quanta Services Financial Statement Overview

Summary

Strong multi-year scale in revenue (to ~$28.4B in 2025) with steady profitability and improved EBIT margin into 2025, alongside a materially stronger leverage profile (debt-to-equity down to ~0.13). Cash flow is consistently positive with solid 2025 free-cash-flow growth, but working-capital-driven variability and modest margin pressure/slowing growth temper the score.

Income Statement

Revenue scaled materially from ~$11.2B (2020) to ~$28.4B (2025), with consistent profitability as net margins held in the ~2.9%–4.0% range. Operating profitability improved versus earlier years (EBIT margin rising from ~4.9% in 2022 to ~6.2% in 2025), supporting steady earnings growth. Offsetting this, gross margin has drifted modestly lower versus 2020–2021 levels, and revenue growth decelerated sharply in 2025 (4.8%) after a stronger multi-year run.

Balance Sheet

Leverage improved meaningfully: debt-to-equity declined from ~0.78 (2021) and ~0.61–0.71 (2023–2024) to ~0.13 in 2025, indicating a stronger capital structure. Equity expanded alongside asset growth (assets up to ~$24.9B in 2025), while returns on equity remained healthy and fairly steady (~9%–12% across the period). A key watch item is the sizable increase in total assets from 2024 to 2025, which raises the bar for maintaining returns and integration/execution discipline as the balance sheet expands.

Cash Flow

Cash generation is solid: operating cash flow rose to ~$2.23B in 2025 and free cash flow to ~$1.62B, with strong free-cash-flow growth in 2025 (+29.5%). Free cash flow consistently covered a large portion of net income (~0.62–0.77 most years), supporting earnings quality. However, cash conversion versus sales remains moderate (operating cash flow is ~18%–52% of revenue over time, and ~26% in 2025), indicating working-capital swings can meaningfully influence year-to-year cash results.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.35B	23.67B	20.88B	17.07B	12.98B
Gross Profit	3.69B	3.13B	2.65B	2.18B	1.79B
EBITDA	2.52B	2.16B	1.77B	1.47B	1.11B
Net Income	1.03B	904.82M	744.69M	491.19M	485.96M
Balance Sheet
Total Assets	24.93B	18.68B	16.24B	13.46B	12.86B
Cash, Cash Equivalents and Short-Term Investments	439.51M	741.96M	1.29B	428.50M	229.10M
Total Debt	1.19B	4.48B	4.46B	3.98B	4.00B
Total Liabilities	15.90B	11.35B	9.95B	8.07B	7.74B
Stockholders Equity	8.94B	7.32B	6.27B	5.38B	5.11B
Cash Flow
Free Cash Flow	1.62B	1.48B	1.14B	701.53M	195.67M
Operating Cash Flow	2.23B	2.08B	1.58B	1.13B	582.39M
Investing Cash Flow	-3.83B	-2.29B	-989.65M	-617.19M	-2.90B
Financing Cash Flow	1.27B	-305.64M	268.50M	-311.07M	2.36B

Quanta Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 572.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWR, the sentiment is Positive. The current price of 572 is above the 20-day moving average (MA) of 562.74, above the 50-day MA of 510.16, and above the 200-day MA of 433.03, indicating a bullish trend. The MACD of 16.13 indicates Positive momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PWR.

Quanta Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIX	82 Outperform	$50.05B	32.26	48.52%	0.20%	27.71%	80.54%
EME	79 Outperform	$32.85B	21.70	39.04%	0.16%	14.11%	26.26%
PWR	77 Outperform	$85.58B	62.25	12.60%	0.09%	18.72%	23.97%
MTZ	74 Outperform	$23.91B	42.42	13.08%	―	12.99%	274.10%
APG	71 Outperform	$17.88B	52.70	9.13%	―	10.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DY	62 Neutral	$10.56B	37.65	18.81%	―	13.19%	33.58%

Quanta Services Corporate Events

Quanta Services Adopts 2026 Performance-Based Incentive Framework

On February 26, 2026, Quanta Services’ board Compensation Committee approved a 2026 incentive framework comprising an annual incentive plan for corporate staff, a long-term incentive plan for senior leadership and a discretionary plan for all employees. Under this structure, executive officers and other employees can receive cash, restricted stock units and performance stock units, with equity grants issued under the existing 2019 Omnibus Equity Incentive Plan or future board-approved plans.

The committee set 2026 annual performance metrics based on EBITDA, EBITDA margin and safety, while long-term incentives for the 2026–2028 period will hinge on return on invested capital, earnings per share and total stockholder return. The move reinforces a pay-for-performance culture that more tightly links employee and executive compensation to profitability, capital efficiency, safety outcomes and shareholder value, aligning management incentives with key financial and operational priorities.

The most recent analyst rating on (PWR) stock is a Buy with a $570.00 price target. To see the full list of analyst forecasts on Quanta Services stock, see the PWR Stock Forecast page.

Quanta Services Posts Record 2025 Results, Backlog Surges

Quanta Services reported record fourth-quarter and full-year 2025 results on Feb. 19, 2026, with quarterly revenue rising to $7.84 billion and net income attributable to common stock reaching $315.5 million, alongside record adjusted EBITDA, cash flow and a year-end backlog of $43.98 billion that underscores strong demand, particularly in its Electric Infrastructure Solutions segment. For 2025, revenue climbed to $28.48 billion and net income surpassed $1.03 billion, while Quanta closed eight acquisitions over the year, including the fourth-quarter purchases of Tri-City Group, Wilson Construction and Billings Flying Service for approximately $1.73 billion, moves that expand its electric infrastructure and aviation capabilities and are expected to bolster 2026 adjusted EPS and support anticipated record backlog and double-digit earnings growth.

The acquisitions of Tri-City and Wilson significantly deepen Quanta’s presence in inside electrical services and high-voltage transmission work for utilities, adding thousands of craft-skilled employees across key U.S. regions and enhancing its ability to deliver critical-path solutions for load centers and grid projects. The purchase of Billings Flying Service further strengthens Quanta’s utility-focused helicopter and aviation services, and together the deals, funded largely via commercial paper, highlight a strategy of disciplined growth aimed at capitalizing on the convergence of utility, power generation and large-load industries while reinforcing the company’s positioning as a preferred partner for complex infrastructure programs.

The most recent analyst rating on (PWR) stock is a Buy with a $540.00 price target. To see the full list of analyst forecasts on Quanta Services stock, see the PWR Stock Forecast page.