Quanta Services (PWR) AI Stock Analysis

• Market Cap: $85.02B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 83.6
• Beta (1Y): 1.43
• 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: 1,082,362
• 30 Day Avg. Volume: 1,082,238
• 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: 1.00
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 22.93
• Enterprise Value/Ebitda: 33.66
• 1Y Price Target: $594.53
• Price Target Upside: 5.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 12.95
• Revenue Forecast (FY): $33.38B

• Rating: 76 Outperform
• Price Target: $626.00 ▲(10.79% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong financial performance (scaled revenue, improved leverage, solid cash generation) and a bullish earnings outlook supported by record backlog and robust free-cash-flow guidance. These positives are tempered by expensive valuation (very high P/E and minimal yield) and technically overbought signals that can increase near-term pullback risk.

Positive Factors

Record backlog supports multi-year revenue visibility

A $44B year-end backlog provides durable revenue visibility and execution runway across utility, generation and large-load programs. That backlog underpins management’s double-digit growth guidance, smoothing near-term demand risk and supporting capacity planning and labor deployment over 2–4 quarters.

Strong cash generation and rising free cash flow

Consistent positive operating cash flow and a sizable FCF increase demonstrate high-quality earnings and internal funding capacity. Robust cash conversion supports reinvestment, M&A funding and balance-sheet repair, reducing refinancing risk and enabling strategic capital allocation over the medium term.

Material leverage reduction and stronger balance sheet

A markedly improved capital structure with leverage well below prior years increases financial flexibility for acquisitions, capex and bidding on large projects. Lower leverage reduces interest burden and tail risk, making the company more resilient to cyclical disruptions and supporting disciplined growth.

Negative Factors

Tight craft labor market strains execution

Persistent craft labor scarcity raises structural execution risk and increases labor costs as Quanta scales workforce. Over the medium term, tight labor markets can pressure margins, slow project delivery and force higher recruiting, training and retention spend necessary to maintain throughput on large infrastructure programs.

Large multi-year supply‑chain capex commitments

Significant investment in transformer and breaker manufacturing de-risks supply chains but ties up cash and requires execution discipline. Multiyear capex will temper near-term free cash flow and raises integration and utilization risk until new capacity is fully ramped and contracts capture the upside.

Limited near-term margin expansion due to mix and contracts

A business mix skewed to regulated work and risk‑adjusted contracting constrains upside to margins. Even with scale benefits, structural mix and deliberate avoidance of high fixed‑price generation contracts cap near‑term margin expansion, reducing potential earnings leverage from revenue growth.

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 revenue scaling and steady profitability, with improved EBIT margin into 2025. Balance sheet strengthened materially (debt-to-equity down sharply in 2025), supporting resilience. Cash flow is consistently positive with strong 2025 free-cash-flow growth, but working-capital variability and modest margin pressure remain watch items as growth decelerates.

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: 565.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 565.05 is above the 20-day moving average (MA) of 518.01, above the 50-day MA of 472.64, and above the 200-day MA of 417.33, indicating a bullish trend. The MACD of 26.21 indicates Negative momentum. The RSI at 71.82 is Negative, neither overbought nor oversold. The STOCH value of 88.40 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
DY	83 Outperform	$12.41B	41.90	21.90%	―	13.19%	33.58%
FIX	82 Outperform	$51.66B	50.86	49.24%	0.20%	27.71%	80.54%
EME	79 Outperform	$36.12B	32.45	37.10%	0.16%	14.11%	26.26%
PWR	76 Outperform	$85.02B	83.59	12.65%	0.09%	18.72%	23.97%
MTZ	74 Outperform	$22.70B	67.83	11.18%	―	12.99%	274.10%
APG	71 Outperform	$19.58B	-59.37	9.50%	―	10.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Quanta Services Corporate Events

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.