Quanta Services (PWR) AI Stock Analysis

• Market Cap: $54.88B
• Dividend Yield: 0.1%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 57.8
• Beta (1Y): 1.47
• Revenue Growth: 18.26%
• EPS Growth: 21.24%
• Country: US
• Employees: 58,400
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 2.48
• Shares Outstanding: 147,329,770
• 10 Day Avg. Volume: 824,411
• 30 Day Avg. Volume: 1,113,075
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 17.78
• Enterprise Value/Ebitda: 26.04
• 1Y Price Target: $426.63
• Price Target Upside: 14.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 73 Outperform
• Price Target: $421.00 ▲(13.02% Upside)

Quanta Services' strong financial performance and positive earnings call outlook are the primary drivers of its overall stock score. While technical analysis indicates some short-term weakness, the company's strategic acquisitions and record backlog support long-term growth potential. However, high valuation metrics and potential regulatory challenges present risks.

Positive Factors

Acquisitions

The acquisition of Dynamic Systems should translate to a positive EBITDA revision.

Market Position

Quanta has continued to reinforce the reach and breadth of their services, investing in adjacencies and insourcing supply chain, serving to cement their position as the premier solutions provider in the space.

Negative Factors

Energy Policy

The recent shift in energy policy will slow the renewable build-out and the impact is too big to ignore.

Stock Valuation

PWR is trading at a nearly 60% premium to its EPC peers, a premium that's at multiyear highs.

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 its contracts in the electric power, oil and gas, and telecommunications sectors. The company earns money by providing construction, maintenance, and engineering services for infrastructure projects, which typically involve long-term contracts with utilities and other entities. Key revenue streams include project work for the installation of transmission and distribution networks, pipeline construction, and communication network builds. Significant partnerships with major utility companies and government contracts further contribute to its earnings by ensuring a steady flow of projects. Additionally, Quanta Services benefits from its ability to adapt to changing market demands, such as the growing emphasis on renewable energy and infrastructure modernization, which opens new avenues for revenue generation.

Quanta Services Financial Statement Overview

Summary

Quanta Services displays strong financial performance with robust revenue growth and efficient operational margins. The balance sheet is stable with reduced leverage and strong equity returns. Cash flow generation remains solid, although recent declines in free cash flow growth warrant monitoring.

Income Statement

Quanta Services demonstrates strong revenue growth with a TTM revenue of $26.05 billion, a significant increase from $23.67 billion in 2024. The gross profit margin has been consistent around 14.6% for TTM, while the net profit margin improved to 3.73%. EBIT and EBITDA margins are also healthy at 5.73% and 6.59% respectively, indicating good operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with a debt-to-equity ratio of approximately 0.06 in the TTM period, down from 0.61 in 2024, indicating reduced leverage. The return on equity (ROE) is robust at 12.36% for TTM, showcasing effective equity utilization. The equity ratio is solid at 39.5%, reflecting a stable financial structure.

Cash Flow

Quanta Services has shown strong free cash flow generation with a TTM free cash flow of $1.09 billion, despite a slight decline from $1.48 billion in 2024. The operating cash flow to net income ratio is high at 1.49, indicating strong cash flow generation relative to net income. However, free cash flow growth has been negative, which is a potential concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.05B	23.67B	20.88B	17.07B	12.98B	11.20B
Gross Profit	3.47B	3.13B	2.65B	2.18B	1.79B	1.58B
EBITDA	2.37B	2.16B	1.77B	1.47B	1.11B	918.32M
Net Income	971.81M	904.82M	744.69M	491.19M	485.96M	445.60M
Balance Sheet
Total Assets	19.89B	18.68B	16.24B	13.46B	12.86B	8.40B
Cash, Cash Equivalents and Short-Term Investments	509.46M	741.96M	1.29B	428.50M	229.10M	184.62M
Total Debt	5.11B	4.48B	4.46B	3.98B	4.00B	1.45B
Total Liabilities	12.02B	11.35B	9.95B	8.07B	7.74B	4.05B
Stockholders Equity	7.86B	7.32B	6.27B	5.38B	5.11B	4.34B
Cash Flow
Free Cash Flow	1.36B	1.48B	1.14B	701.53M	195.67M	855.40M
Operating Cash Flow	1.99B	2.08B	1.58B	1.13B	582.39M	1.12B
Investing Cash Flow	-2.69B	-2.29B	-989.65M	-617.19M	-2.90B	-499.32M
Financing Cash Flow	687.41M	-305.64M	268.50M	-311.07M	2.36B	-601.37M

Quanta Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 372.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWR, the sentiment is Negative. The current price of 372.5 is below the 20-day moving average (MA) of 380.10, below the 50-day MA of 387.33, and above the 200-day MA of 328.74, indicating a neutral trend. The MACD of -3.32 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PWR.

Quanta Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIX	81 Outperform	$24.92B	36.30	40.09%	0.24%	26.33%	63.32%
ACM	79 Outperform	$16.77B	25.75	28.17%	0.79%	1.50%	164.17%
EME	76 Outperform	$28.00B	25.95	38.14%	0.16%	13.77%	37.96%
PWR	73 Outperform	$54.88B	57.77	13.47%	0.10%	18.26%	21.24%
J	73 Outperform	$17.38B	36.34	9.29%	0.86%	-30.12%	-21.04%
MTZ	72 Outperform	$14.05B	52.82	9.38%	―	7.08%	3273.27%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%

Quanta Services Corporate Events

Quanta Services Issues $1.5 Billion in Senior Notes

On August 7, 2025, Quanta Services, Inc. issued $1.5 billion in senior notes with varying maturity dates in 2028, 2031, and 2035. These notes were sold under an underwriting agreement with several financial institutions, and they represent senior unsecured obligations of the company. The issuance aims to strengthen Quanta Services’ financial positioning by providing additional capital for future operations, while the notes’ structure includes options for redemption and covenants that limit certain financial activities, potentially impacting stakeholders by influencing the company’s financial strategy and risk profile.

Quanta Services Announces $1.5 Billion Senior Notes Offering

On August 4, 2025, Quanta Services announced the pricing of its public offering of $1.5 billion in senior notes, with the proceeds intended to repay existing debt. The offering, managed by several major financial institutions, is expected to close on August 7, 2025, and reflects Quanta’s strategic financial management to strengthen its market position.

Quanta Services Acquires Dynamic Systems for $1.35 Billion

Quanta Services reported a strong second quarter in 2025, with revenues reaching $6.77 billion, a significant increase from the previous year. The company also announced the acquisition of Dynamic Systems, a leading mechanical and infrastructure solutions provider, for approximately $1.35 billion. This acquisition is expected to enhance Quanta’s capabilities and expand its market reach. Additionally, Quanta was selected for the Boardman to Hemingway High-Voltage Electric Transmission Project and made a strategic investment in Bell Lumber and Pole Company. These developments, along with record backlog and increased financial outlook, position Quanta for continued growth in the infrastructure solutions industry.