Quanta Services (PWR)
NYSE:PWR
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Quanta Services
(NYSE:PWR)
Select Model
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Rating:77Outperform
Price Target:
$642.00
▲(9.68% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Quanta Services (PWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.58B
Dividend Yield0.09%
Average Volume (3M)1.10M
Price to Earnings (P/E)62.2
Beta (1Y)1.34
Revenue Growth18.72%
EPS Growth23.97%
CountryUS
Employees58,400
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.16
Shares Outstanding149,619,430
10 Day Avg. Volume935,047
30 Day Avg. Volume1,102,619
Financial Highlights & Ratios
PEG Ratio5.40
Price to Book (P/B)7.16
Price to Sales (P/S)2.26
P/FCF Ratio39.50
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit23.91
Enterprise Value/Ebitda35.10
Forecast
1Y Price Target
$609.11Price Target Upside4.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)13.07
Revenue Forecast (FY)$33.41B
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 dist...
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, mai...
Quanta Services Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across different business segments, revealing which areas drive growth and how diversified the company's income streams are.
Breaks down sales across different business segments, revealing which areas drive growth and how diversified the company's income streams are.
Data provided by:
The Fly
The FlyQuanta Services Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operating and financial picture: record revenues, adjusted EBITDA, adjusted EPS, free cash flow, and backlog drive a confident outlook for continued double-digit growth and >20% adjusted EPS upside in 2026. Management emphasized disciplined capital deployment, balance sheet strength (leverage <2x) and strategic vertical investments to derisk supply chains. Key risks include persistent craft labor tightness (notably in data centers), limited near-term margin expansion (Electric Infrastructure margins ~10.3% midpoint), sizeable near-term capex for vertical supply chain buildout, and timing uncertainty for very large transmission awards (765 kV) that are expected to materialize in later years. Overall, the highlights (record performance, large backlog, strong cash generation, strategic investments and M&A) outweigh the documented challenges and risks.Positive Updates
Record Full-Year Financial Results
Fiscal 2025 revenues of $28,500,000,000 (up 20% year-over-year), record adjusted EBITDA of $2,900,000,000, and record adjusted diluted EPS of $10.75 (up 20% year-over-year).
Negative Updates
Margin Pressure and Modest Electric Infrastructure Margin Target
Electric Infrastructure margin midpoint referenced at approximately 10.3%; management indicated this has been steady in recent years and signaled limited near-term margin expansion due to mix, a large regulated portion of the business (>50%) and planned organic hiring.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Financial Results
Fiscal 2025 revenues of $28,500,000,000 (up 20% year-over-year), record adjusted EBITDA of $2,900,000,000, and record adjusted diluted EPS of $10.75 (up 20% year-over-year).
Read all positive updates
Company Guidance
Quanta’s 2026 guidance calls for double-digit growth in revenues, net income and adjusted EBITDA and the opportunity for over 20% growth in adjusted EPS, supported by a record year‑end backlog of $44.0 billion; management expects free cash flow of $1.8 billion at the midpoint (which assumes $250–$350 million of 2026 capex related to vertical supply‑chain initiatives) and is investing roughly $500–$700 million over the next several years in transformer manufacturing capacity for 345–765 kV equipment. For context, 2025 results included revenues of $28.5 billion (+20% YOY), adjusted EBITDA of $2.9 billion, adjusted diluted EPS of $10.75 (+20% YOY), cash flow from operations of $2.0 billion and free cash flow of $1.7 billion; Q4 2025 was $7.8 billion of revenue, $845 million adjusted EBITDA, $3.16 adjusted EPS, $1.1 billion cash from operations and $946 million free cash flow. Management also highlighted balance‑sheet strength after eight 2025 acquisitions (including three in Q4 for ~ $1.7 billion upfront consideration), ~11,100 employees added to reach ~69,500 total, and a leverage ratio below 2.0x as they pursue programmatic, craft‑based growth.Quanta Services Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| 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
Positive
585.36
Price Trends
545.28
Positive
495.25
Positive
449.30
Positive
Market Momentum
7.24
Negative
61.10
Neutral
88.30
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 585.36 is above the 20-day moving average (MA) of 564.03, above the 50-day MA of 545.28, and above the 200-day MA of 449.30, indicating a bullish trend. The MACD of 7.24 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 88.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PWR.
Quanta Services Risk Analysis
Quanta Services disclosed 47 risk factors in its most recent earnings report. Quanta Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quanta Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $56.03B | 32.26 | 48.52% | 0.20% | 27.71% | 80.54% | |
79 Outperform | $35.73B | 21.70 | 39.04% | 0.16% | 14.11% | 26.26% | |
77 Outperform | $87.58B | 62.25 | 12.60% | 0.09% | 18.72% | 23.97% | |
74 Outperform | $28.50B | 42.42 | 13.08% | ― | 12.99% | 274.10% | |
71 Outperform | $19.34B | 52.70 | 9.13% | ― | 10.69% | ― | |
66 Neutral | $11.78B | 37.65 | 18.81% | ― | 13.19% | 33.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PWR
Quanta Services
585.36
311.33
113.61%
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Quanta Services Corporate Events
Business Operations and Strategy
Quanta Services Adopts 2026 Performance-Based Incentive Framework
Positive
Mar 4, 2026
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 al...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Quanta Services Posts Record 2025 Results, Backlog Surges
Positive
Feb 19, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.