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Quanta Services
(NYSE:PWR)
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Rating:78Outperform
Price Target:
$742.00
▲(23.28% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by strong financial quality (improved leverage and solid free cash flow) and favorable trend/momentum signals, reinforced by a positive earnings call with raised 2026 guidance and record backlog. The main offset is valuation risk from a very high P/E, plus ongoing cash-flow timing and execution risks typical of project-based work.
Positive Factors
Record backlog / demand visibility
A $48.5B backlog and ~1.6x book-to-bill provide multi‑year revenue visibility and support sustained utilization of crews and capital. This large pipeline underpins planning for workforce growth, prefabrication capacity and multi-year programmatic work, reducing near-term demand risk.
Negative Factors
Thin profitability margins
Relatively thin, stable margins limit cushioning against cost inflation or contract mix shifts. In a project-based business, small margin compression materially affects cash flow and returns, constraining the company's ability to absorb higher labor, materials or subcontractor costs without margin recovery initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog / demand visibility
A $48.5B backlog and ~1.6x book-to-bill provide multi‑year revenue visibility and support sustained utilization of crews and capital. This large pipeline underpins planning for workforce growth, prefabrication capacity and multi-year programmatic work, reducing near-term demand risk.
Read all positive factors
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 (PWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.29B
Dividend Yield0.09%
Average Volume (3M)1.21M
Price to Earnings (P/E)90.7
Beta (1Y)1.26
Revenue Growth21.09%
EPS Growth17.37%
CountryUS
Employees58,400
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)7.37
Shares Outstanding150,060,150
10 Day Avg. Volume1,225,198
30 Day Avg. Volume1,212,447
Financial Highlights & Ratios
PEG Ratio5.33
Price to Book (P/B)7.16
Price to Sales (P/S)2.26
P/FCF Ratio39.50
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue3.78
Enterprise Value/Gross Profit27.77
Enterprise Value/Ebitda47.09
Forecast
1Y Price Target
$795.76Price Target Upside32.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)14
Revenue Forecast (FY)$34.96B
Quanta Services Business Overview & Revenue Model
Company Description
Quanta Services, Inc. is a global provider of specialized contracting solutions. The company operates through three main business segments: The Electric Power Infrastructure Solutions division is dedicated to designing, procuring, constructing, up...
How the Company Makes Money
Quanta Services makes money primarily by delivering contracted infrastructure services and projects for customers that own or operate critical networks (especially electric utilities). Revenue is earned through customer contracts that generally fa...
Quanta Services Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: strong Q1 operating and financial performance, record backlog, raised 2026 guidance, and major strategic investments to derisk supply chains and expand capacity. Executives emphasized durable, programmatic demand across transmission, generation and data-center-related markets and reiterated aggressive long-term EPS growth targets. Manageable near-term concerns include unchanged free cash flow guidance, supply-chain and permitting/interconnection risks, a cautious stance on certain combined-cycle risks, and pockets of slower performance (notably Canada). Overall, the positive drivers — robust results, backlog, raised guidance and targeted capacity investments — materially outweigh the highlighted challenges.Positive Updates
Strong Quarterly Financial Results
Q1 2026 revenue of $7.9 billion; net income attributable to common stock of $221 million ($1.45 per diluted share); adjusted diluted EPS of $2.68; adjusted EBITDA of $686 million. Management characterized results as "robust double-digit growth" in revenues, adjusted EBITDA and adjusted EPS.
Negative Updates
Free Cash Flow Guidance Left Unchanged
Despite a strong Q1 and raised earnings guidance, management left 2026 free cash flow guidance unchanged from the prior range, citing early stage of year; CFO noted greater confidence in being at the higher end but did not formally update the range.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Financial Results
Q1 2026 revenue of $7.9 billion; net income attributable to common stock of $221 million ($1.45 per diluted share); adjusted diluted EPS of $2.68; adjusted EBITDA of $686 million. Management characterized results as "robust double-digit growth" in revenues, adjusted EBITDA and adjusted EPS.
Read all positive updates
Company Guidance
Quanta raised its 2026 outlook after a strong Q1 (revenues $7.9B; net income $221M or $1.45 per diluted share; adjusted diluted EPS $2.68; adjusted EBITDA $686M), with record backlog of $48.5B and book‑to‑bill ~1.6x; full‑year guidance was increased to revenues $34.7–$35.2B, adjusted EBITDA $3.49–$3.65B and adjusted EPS $13.55–$14.25. Management reiterated a medium‑term objective of 15–20% adjusted EPS growth and an ambition to more than double earnings power by 2030, will maintain an investment‑grade balance sheet with target leverage of 1.5–2.0x, plans $500–$700M of investment to double transformer capacity and expand off‑site manufacturing to roughly 6.7M sq ft, and left free cash‑flow guidance unchanged (previously given as a ~$500M range) while expressing greater confidence toward the high end.Quanta Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.99B | 28.35B | 23.67B | 20.88B | 17.07B | 12.98B |
| Gross Profit | 4.08B | 3.69B | 3.13B | 2.65B | 2.18B | 1.79B |
| EBITDA | 2.40B | 2.52B | 2.16B | 1.77B | 1.47B | 1.11B |
| Net Income | 1.12B | 1.03B | 904.82M | 744.69M | 491.19M | 485.96M |
Balance Sheet | ||||||
| Total Assets | 25.75B | 24.93B | 18.68B | 16.24B | 13.46B | 12.86B |
| Cash, Cash Equivalents and Short-Term Investments | 364.76M | 439.51M | 741.96M | 1.29B | 428.50M | 229.10M |
| Total Debt | 6.32B | 6.42B | 4.48B | 4.46B | 3.98B | 4.00B |
| Total Liabilities | 16.60B | 15.90B | 11.35B | 9.95B | 8.07B | 7.74B |
| Stockholders Equity | 9.04B | 8.94B | 7.32B | 6.27B | 5.38B | 5.11B |
Cash Flow | ||||||
| Free Cash Flow | 1.68B | 1.62B | 1.48B | 1.14B | 701.53M | 195.67M |
| Operating Cash Flow | 2.38B | 2.23B | 2.08B | 1.58B | 1.13B | 582.39M |
| Investing Cash Flow | -3.53B | -3.83B | -2.29B | -989.65M | -617.19M | -2.90B |
| Financing Cash Flow | 974.17M | 1.27B | -305.64M | 268.50M | -311.07M | 2.36B |
Quanta Services Technical Analysis
Neutral
601.88
Price Trends
711.53
Negative
636.44
Positive
537.93
Positive
Market Momentum
-2.64
Positive
42.74
Neutral
31.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWR, the sentiment is Neutral. The current price of 601.88 is below the 20-day moving average (MA) of 702.29, below the 50-day MA of 711.53, and above the 200-day MA of 537.93, indicating a neutral trend. The MACD of -2.64 indicates Positive momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 31.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $100.29B | 90.68 | 13.03% | 0.09% | 21.09% | 17.37% | |
78 Outperform | $61.30B | 50.18 | 51.69% | 0.20% | 38.43% | 107.64% | |
77 Outperform | $34.43B | 26.02 | 38.34% | 0.16% | 18.31% | 31.81% | |
73 Outperform | $13.15B | 41.22 | 18.85% | ― | 29.76% | 33.40% | |
72 Outperform | $29.51B | 64.61 | 14.53% | ― | 22.59% | 111.23% | |
69 Neutral | $18.35B | -59.97 | 9.71% | ― | 14.55% | -303.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PWR
Quanta Services
668.31
282.13
73.06%
FIX
Comfort Systems
1,741.30
1,201.53
222.60%
DY
Dycom
437.76
187.49
74.92%
EME
EMCOR Group
774.66
228.49
41.83%
MTZ
MasTec
373.43
201.54
117.25%
APG
APi Group
41.98
7.65
22.28%
Quanta Services Corporate Events
Executive/Board ChangesStock BuybackShareholder Meetings
Quanta Services Adds Director and Launches $1 Billion Buyback
Positive
May 27, 2026
Quanta Services, Inc. held its 2026 Annual Meeting of Stockholders on May 21, 2026, where shareholders elected ten directors to one-year terms and approved an advisory resolution on executive compensation by a wide margin. Investors also ratified ...
Business Operations and StrategyFinancial Disclosures
Quanta Services Reports Record Q1 Results, Raises 2026 Outlook
Positive
Apr 30, 2026
Quanta Services reported record first-quarter 2026 results on April 30, 2026, with revenue rising to $7.87 billion from $6.23 billion a year earlier and net income attributable to common stock increasing to $220.6 million, or $1.45 per diluted sha...
Business Operations and StrategyExecutive/Board Changes
Quanta Services Grants New Long-Term Performance Stock Awards
Positive
Apr 16, 2026
On April 10, 2026, Quanta Services’ compensation committee approved long-term performance stock unit awards for senior leaders, including key named executive officers, tied to a five-year performance period ending December 31, 2030. The awar...
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.