Quanta Services (QAA) AI Stock Analysis

Quanta Services

(XETRA:QAA)

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Positive Factors

Record Backlog and DemandA record, broadly distributed backlog provides multi-year revenue visibility and reduces reliance on any single project or customer. Continued demand for transmission, renewable and distribution work also supports durable utilization and gives Quanta a strong platform for sustained growth.

Negative Factors

Structurally Thin MarginsRelatively thin margins leave less room for execution errors, project mix changes or cost inflation than would exist in a higher-margin business. Even with recent improvement, small adverse movements in labor, materials or productivity can have a meaningful effect on earnings.

Quanta Services (QAA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 93.60B
Dividend Yield: 0.07%
Average Volume (3M): 32
Price to Earnings (P/E): 55.6
Beta (1Y): 0.42
Revenue Growth: 30.76%
EPS Growth: 56.70%
Country: Germany
Employees: 69,500
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

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, upgra...

Quanta Services Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:7.24%|Next Earnings Date:Feb 24, 2027

Earnings Call SentimentPositive

The call was strongly positive. Quanta reported record third-quarter results, raised full-year guidance across key metrics, achieved record backlog and cash flow, strengthened its balance sheet and described accelerating demand across utility, transmission, generation and technology markets. Management also highlighted continued investments in training, fabrication and supply chain capabilities. The main challenges were supply chain availability, OEM dependence, cost inflation, seasonal first-quarter softness, lower Underground Infrastructure margins and the timing uncertainty around converting large projects into backlog, but management characterized these issues as manageable and emphasized the company's ability to mitigate them.

Positive Updates

Record Third-Quarter Financial Results

Revenue was $12 billion, up 57% from $7.6 billion a year ago. Adjusted EBITDA was $1.4 billion, up 69%, with adjusted EBITDA margin expanding to 12.1%. Adjusted diluted EPS was $6.06, up 82% from $3.33, while GAAP diluted EPS was $4.55, more than double last year's $2.24.

Negative Updates

Underground Infrastructure Margin Remains Below Target

Management said the UI segment is still down in margin performance, although it believes the segment can reach double-digit margins as older work burns off, newer work enters the business and efficiencies improve.

Company Guidance

For 2026, Quanta now expects revenue to range between $41.3 billion and $41.6 billion, up approximately $1.9 billion at the midpoint from its prior outlook; adjusted EBITDA to range between $4.4 billion and $4.49 billion, with an implied margin profile of 10.7% at the midpoint; adjusted EPS to range between $17.90 and $18.30; and free cash flow to range between $2.5 billion to $3 billion, representing greater than 60% conversion of adjusted EBITDA at the midpoint. Management said 2027 should deliver strong double-digit adjusted EPS growth, described 55% to 60% as the right way to think about its cash flow profile, expects the utility business to operate at 10% to 12%, said the Underground Infrastructure segment could reach double digits in quarters and get on a run rate there in the next year, expects hiring to average 6,000 to 8,000 a year with organic growth around 12,000, and said Quanta will be on 765 in '27, with really good bookings, call it, first half of '27 and even some starts.

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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:QAA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIX	79Outperform	$43.13B	25.88	55.24%	0.25%	50.70%	95.97%
EME	75Outperform	$29.75B	19.74	38.78%	0.23%	22.13%	39.30%
APG	73Outperform	$19.03B	-71.90	10.56%	―	16.36%	-266.65%
MTZ	68Neutral	$14.94B	31.35	13.99%	―	25.66%	45.34%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DY	62Neutral	$6.87B	19.93	18.05%	―	37.79%	23.60%

* Industrials Sector Average

Performance Comparison

DE:QAA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:QAA	Quanta Services	577.80	180.71	45.51%
FIX	Comfort Systems USA	1285.13	299.37	30.37%
DY	Dycom Industries	228.21	-61.94	-21.35%
EME	EMCOR Group, Inc.	707.43	33.46	4.96%
MTZ	MasTec Inc	198.10	-0.98	-0.49%
APG	Api Group Corporation	46.37	9.99	27.46%

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.

Quanta Services AI Stock Analysis