Quanta Services (PWR) AI Stock Analysis

• Market Cap: $67.62B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 67.3
• Beta (1Y): 1.52
• Revenue Growth: 18.72%
• EPS Growth: 23.97%
• Country: US
• Employees: 58,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.33
• Shares Outstanding: 149,115,890
• 10 Day Avg. Volume: 1,161,469
• 30 Day Avg. Volume: 1,053,428
• PEG Ratio: 2.56
• Price to Book (P/B): 6.35
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 31.44
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 18.65
• Enterprise Value/Ebitda: 30.40
• 1Y Price Target: $479.33
• Price Target Upside: 8.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 10.59
• Revenue Forecast (FY): $27.82B

• Rating: 76 Outperform
• Price Target: $496.00 ▲(11.99% Upside)

Quanta Services' strong financial performance and positive earnings call are the most significant factors contributing to the score. The company has demonstrated robust revenue growth and profitability, with a record backlog supporting future growth prospects. However, the high P/E ratio and low dividend yield suggest overvaluation, which slightly offsets the positive outlook. Technical indicators show a strong upward trend, further supporting the stock's potential.

Positive Factors

Strategic Partnerships

The partnership with AEP enhances Quanta's market position in high-voltage transmission, strengthening its competitive edge and expanding growth opportunities.

Record Backlog

A record backlog indicates strong future revenue visibility and demand for Quanta's services, supporting long-term growth and stability.

Expansion of Total Solutions Platform

Expanding the Total Solutions platform positions Quanta to capture more market share in power generation and infrastructure, driving sustainable growth.

Negative Factors

High-Voltage Transmission Uncertainty

Uncertainty in securing high-voltage projects could limit future growth in this segment, impacting revenue and market leadership.

Pipeline Business Challenges

Challenges in the pipeline business, including risk profiles and permitting, may constrain growth and profitability in this segment.

Regulatory and Affordability Concerns

Regulatory and affordability issues could hinder infrastructure project approvals, affecting Quanta's ability to capitalize on growth opportunities.

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 shows strong financial performance with significant revenue growth, consistent profit margins, and a stable balance sheet with reduced leverage. Cash flow generation is robust, although recent declines in free cash flow growth need 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	27.06B	23.67B	20.88B	17.07B	12.98B	11.20B
Gross Profit	3.66B	3.13B	2.65B	2.18B	1.79B	1.58B
EBITDA	2.24B	2.16B	1.77B	1.47B	1.11B	918.32M
Net Income	1.02B	904.82M	744.69M	491.19M	485.96M	445.60M
Balance Sheet
Total Assets	22.74B	18.68B	16.24B	13.46B	12.86B	8.40B
Cash, Cash Equivalents and Short-Term Investments	610.39M	741.96M	1.29B	428.50M	229.10M	184.62M
Total Debt	6.02B	4.48B	4.46B	3.98B	4.00B	1.45B
Total Liabilities	14.34B	11.35B	9.95B	8.07B	7.74B	4.05B
Stockholders Equity	8.40B	7.32B	6.27B	5.38B	5.11B	4.34B
Cash Flow
Free Cash Flow	1.25B	1.48B	1.14B	701.53M	195.67M	855.40M
Operating Cash Flow	1.81B	2.08B	1.58B	1.13B	582.39M	1.12B
Investing Cash Flow	-2.45B	-2.29B	-989.65M	-617.19M	-2.90B	-499.32M
Financing Cash Flow	498.35M	-305.64M	268.50M	-311.07M	2.36B	-601.37M

Quanta Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 442.90
• 50DMA: Positive
• 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 Positive. The current price of 442.9 is above the 20-day moving average (MA) of 438.30, above the 50-day MA of 413.18, and above the 200-day MA of 347.86, indicating a bullish trend. The MACD of 9.22 indicates Positive momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 42.21 is Neutral, 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
ACM	80 Outperform	$17.33B	26.60	28.17%	0.80%	1.50%	164.17%
FIX	80 Outperform	$33.72B	40.48	43.84%	0.21%	27.71%	80.54%
J	77 Outperform	$18.48B	38.63	9.29%	0.81%	-30.12%	-21.04%
PWR	76 Outperform	$67.62B	67.27	13.16%	0.09%	18.72%	23.97%
EME	74 Outperform	$29.30B	26.32	37.10%	0.15%	14.11%	26.26%
MTZ	69 Neutral	$15.43B	47.33	11.18%	―	12.99%	274.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Quanta Services Corporate Events

Quanta Services’ Earnings Call: Strong Growth Amid Challenges

Quanta Services’ recent earnings call reflected a generally positive sentiment, highlighting strong financial performance and strategic growth initiatives. The company reported record backlogs and growth in key financial metrics, indicating a robust position for future expansion. However, challenges such as high-voltage transmission projects and pipeline business uncertainties, along with regulatory and affordability concerns, were also acknowledged.

Quanta Services Reports Record Q3 2025 Earnings

Quanta Services is a leading provider of specialized infrastructure solutions in the utility, renewable energy, technology, communications, pipeline, and energy industries, operating across the United States, Canada, Australia, and select international markets. The company offers comprehensive services such as designing, installing, repairing, and maintaining critical infrastructure.

Quanta Services Reports Strong Q3 2025 Financial Results

Quanta Services reported strong financial results for the third quarter of 2025, with revenues reaching $7.63 billion, a significant increase from the previous year. The company achieved record backlog levels and double-digit growth in adjusted EBITDA and earnings per share, driven by accelerating demand in its Electric segment. Quanta also announced its selection by NiSource Inc. for a major power generation and grid infrastructure project, highlighting its strategic focus on expanding its total solutions platform to meet growing electricity demands. The company’s outlook for 2025 remains positive, with expectations for continued revenue growth and strategic acquisitions enhancing its market position.

The most recent analyst rating on (PWR) stock is a Hold with a $415.00 price target. To see the full list of analyst forecasts on Quanta Services stock, see the PWR Stock Forecast page.

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.

The most recent analyst rating on (PWR) stock is a Buy with a $333.00 price target. To see the full list of analyst forecasts on Quanta Services stock, see the PWR Stock Forecast page.

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.

The most recent analyst rating on (PWR) stock is a Buy with a $333.00 price target. To see the full list of analyst forecasts on Quanta Services stock, see the PWR Stock Forecast page.