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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on PWR

Quanta Services' recent performance was driven by strong Q3 earnings, with double-digit growth and a record backlog. The electric segment momentum and progress in its expanded total solutions platform are key growth drivers. The company raised its 2025 outlook, citing solid demand in key markets. Institutional investors, such as Allworth Financial LP and Bailard Inc., have increased their stakes in the company. Quanta's Q3 earnings beat estimates, with revenue and EPS growth. Its growing backlog and expanding services platform position it for continued growth.

1.c. Company Highlights

2. Quanta Services: Delivering on Growth Ambitions

Quanta Services reported a robust third-quarter 2025, with revenue reaching $7.6 billion, net income attributable to common stock at $339 million or $2.24 per diluted share, and adjusted diluted earnings per share at $3.33, beating analyst estimates of $3.25. Adjusted EBITDA was $858 million, showcasing double-digit growth in key metrics. The company's financial performance was bolstered by strong demand in its Electric segment and robust activity across its end markets, driving a record backlog of $39.2 billion. The company raised its full-year revenue expectations to $27.8 billion to $28.2 billion and its full-year free cash flow expectations to $1.5 billion, underscoring its growth momentum.

Publication Date: Nov -01

📋 Highlights
  • Strong 2025 Q3 Performance:: Revenue hit $7.6B, adjusted EPS at $3.33, and adjusted EBITDA reached $858M, all with double-digit YoY growth.
  • Full-Year Guidance Raised:: Revenue expected to reach $27.8–$28.2B; free cash flow raised to $1.5B, driven by record $39.2B backlog.
  • Total Solutions Expansion:: Launched power generation platform; 50-50 NiSource JV to deliver ~3GW of power, aligning with robust demand in Electric and UUI segments.
  • Strategic Recapitalization:: Issued $1.5B in notes to strengthen liquidity, supporting growth in CCGT partnerships (e.g., Zachary JV) and mechanical construction.

Operational Highlights

The company announced an expansion of its Total Solutions platform, including a power generation platform, and a joint venture with NiSource to design, procure, and construct generation and infrastructure resources capable of producing approximately 3 gigawatts of power. This project highlights the strength of Quanta's Total Solutions platform, spanning power generation, battery energy storage, transmission, substation, and underground infrastructure. Quanta expects to achieve record backlog and another year of double-digit earnings per share growth in 2026.

Growth Prospects

Quanta is well-positioned for growth, driven by investments in technology and execution on margins. The company sees significant opportunities in the power generation business, particularly in combined cycle gas turbines (CCGTs), and is selective in its approach, focusing on total solutions and strategic partnerships. The renewable energy business is also growing, with a significant increase in backlog, driven by demand for power and generation.

Valuation

With a P/E Ratio of 65.75 and an EV/EBITDA of 29.65, the market appears to be pricing in significant growth expectations. Quanta's ROE of 13.12% and ROIC of 7.51% suggest a strong return on equity, justifying some premium. Analysts estimate next year's revenue growth at 12.2%, which, combined with the company's guidance, suggests that the current valuation is reasonable.

Strategic Initiatives

The company is focused on delivering certainty to customers, investing in talent and technology, and expanding its addressable markets through disciplined strategic growth. Quanta is also investing in its workforce and curriculum, adding around 6,000 craft-skilled workers through acquisitions, and is early in its technology piece, but sees opportunities for growth.

3. NewsRoom

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Quanta Services, Inc. (PWR) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -02

Source: seekingalpha.com

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Boston Partners Takes Position in Quanta Services, Inc. $PWR

Dec -01

Source: defenseworld.net

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AI Play Quanta Services Stock, Up 47% in 2025, Extends From Cup Buy Point

Nov -28

Source: investors.com

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Quanta Services, Inc. $PWR Shares Purchased by Choreo LLC

Nov -28

Source: defenseworld.net

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Will Quanta's Total Solutions Platform Power Its Long-Term Expansion?

Nov -25

Source: zacks.com

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Advisors Asset Management Inc. Sells 4,175 Shares of Quanta Services, Inc. $PWR

Nov -25

Source: defenseworld.net

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Quanta vs. Fluor: Which Infrastructure Stock Has More Upside?

Nov -24

Source: zacks.com

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QUANTA SERVICES TO PARTICIPATE IN THE UBS GLOBAL INDUSTRIALS AND TRANSPORTATION CONFERENCE

Nov -21

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.61%)

6. Segments

Electric Power Infrastructure Solutions (Excl. Renewable Energy Infrastructure Solution)

Expected Growth: 4.5%

Quanta Services' electric power infrastructure solutions are driven by increasing demand for reliable and efficient energy transmission and distribution systems, as well as aging infrastructure replacement and upgrade needs.

Renewable Energy Infrastructure Solutions

Expected Growth: 10.5%

Quanta Services' infrastructure offerings are poised for growth driven by increasing demand for electric power transmission and distribution, renewable energy integration, and communication infrastructure upgrades.

Underground and Infrastructure

Expected Growth: 10.2%

Quanta Services' growth is driven by increasing demand for underground utility installation, replacement and maintenance, as well as rising investments in grid modernization and renewable energy infrastructure.

7. Detailed Products

Electric Power Infrastructure Services

Quanta Services provides comprehensive services for the electric power infrastructure, including transmission and distribution line construction, substation construction, and electrical testing and commissioning.

Pipeline and Industrial Services

Quanta Services offers a range of services for the pipeline and industrial markets, including pipeline construction, maintenance, and repair, as well as facility construction and maintenance.

Telecommunications Infrastructure Services

Quanta Services provides services for the telecommunications industry, including fiber optic installation, cell tower construction, and network maintenance and repair.

Renewable Energy Infrastructure Services

Quanta Services offers services for the renewable energy industry, including wind farm construction, solar panel installation, and energy storage solutions.

Engineering and Design Services

Quanta Services provides engineering and design services for the energy and telecommunications industries, including project planning, design, and permitting.

8. Quanta Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Quanta Services, Inc. operates in a niche industry with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Quanta Services, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's services are often critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Quanta Services, Inc. relies on a network of suppliers for materials and equipment. While the company has some bargaining power due to its size, suppliers still have some leverage due to the specialized nature of the industry.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The industry in which Quanta Services, Inc. operates is highly competitive, with several established players competing for market share. This competition leads to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.36%
Debt Cost 5.41%
Equity Weight 59.64%
Equity Cost 9.43%
WACC 7.81%
Leverage 67.68%

11. Quality Control: Quanta Services, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cummins

A-Score: 5.9/10

Value: 3.5

Growth: 5.7

Quality: 5.6

Yield: 4.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Paychex

A-Score: 5.8/10

Value: 1.8

Growth: 5.8

Quality: 9.0

Yield: 6.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Caterpillar

A-Score: 5.6/10

Value: 2.0

Growth: 7.0

Quality: 7.0

Yield: 3.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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EMCOR

A-Score: 5.5/10

Value: 2.8

Growth: 9.1

Quality: 7.1

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Argan

A-Score: 5.3/10

Value: 1.2

Growth: 8.7

Quality: 7.2

Yield: 2.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Quanta Services

A-Score: 5.0/10

Value: 1.2

Growth: 8.8

Quality: 5.0

Yield: 0.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

460.64$

Current Price

460.64$

Potential

-0.00%

Expected Cash-Flows