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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

Breaking News: Quanta Services Inc reported Q4 earnings with revenue beating estimates, driven by strong electric demand and acquisitions. The company posted record Q4 results with a 20% revenue increase and a backlog of $43.98B. Earnings per share came in at $3.16, exceeding the Zacks Consensus Estimate of $3. The company also provided a positive 2026 growth outlook. Multiple analysts have reiterated their buy recommendations on the stock, citing the company's strong performance and growth prospects.

1.c. Company Highlights

2. Quanta Services' Record 2025 Results Driven by Infrastructure Transformation

Quanta Services reported record results for 2025, with revenues reaching $28.5 billion, a 20% increase from 2024. Adjusted EBITDA was a record $2.9 billion, and adjusted diluted earnings per share grew 20% year-over-year to $10.75. In the fourth quarter, revenues were $7.8 billion, with adjusted EBITDA of $845 million and adjusted diluted EPS of $3.16, all records for Quanta. The actual EPS of $3.16 beat estimates of $3.02, indicating a strong operational performance.

Publication Date: Feb -20

📋 Highlights
  • Record Financial Performance:: Quanta Services achieved $28.5B in 2025 revenue (20% YoY growth) with $2.9B adjusted EBITDA and $10.75 adjusted EPS (20% YoY increase).
  • Strong Free Cash Flow:: Generated $1.7B free cash flow in 2025 and guided $1.8B in 2026, including $250–350M in capex for vertical supply chain solutions.
  • Record Backlog:: $44B in backlog driven by grid reliability investments, power generation demand, and infrastructure modernization needs.
  • Strategic Acquisitions:: Completed 3 acquisitions in 2025 (Dynamic, Tri-City, Wilson) to expand capabilities in high-growth markets and prefabrication.

Growth Drivers and Backlog

The company's backlog reached a record $44 billion, driven by ongoing investment in grid reliability and resilience, growing demand for power generation, and the long-term infrastructure investment required to meet rising electricity consumption. Quanta's 2026 financial expectations reflect continued double-digit growth in revenues, net income, and adjusted EBITDA, as well as the opportunity to deliver over 20% growth in adjusted EPS. Analysts estimate next year's revenue growth at 11.7%, indicating a sustained growth trajectory.

Strategic Initiatives and M&A

Quanta completed several acquisitions in 2025, including Dynamic Systems, Tri-City Group, and Wilson Construction Company, which expanded its capabilities and presence in attractive markets. The company's CEO, Duke Austin, expressed confidence in Quanta's ability to deliver innovative solutions and generate attractive compounding returns, driven by its diversified solution-based business model and portfolio approach. Quanta sees opportunities for selective acquisitions through 2026, with a focus on cultural fit and client solutions.

Valuation and Return Metrics

Quanta's current valuation metrics indicate a premium, with a P/E Ratio of 81.71 and EV/EBITDA of 31.93. The company's Return on Invested Capital (ROIC) stands at 7.07%, while Return on Equity (ROE) is 12.6%. The Net Debt / EBITDA ratio is 0.29, indicating a manageable debt position. Quanta's Free Cash Flow Yield is 0.83%, which is relatively low, but the company is expected to generate $1.8 billion in free cash flow in 2026.

Operational Excellence and Future Prospects

Quanta's growth is driven by a multi-decade infrastructure transformation, with the company positioned at the center of converging utility, power generation, and large load industries. The company's strategy remains grounded in craft labor excellence, execution certainty, and disciplined investment. Quanta is leveraging AI to lower OpEx, particularly in engineering, and sees significant potential for cost savings. The company's data center business is growing rapidly, with a roughly 10% share of the business and a multi-decade growth opportunity.

3. NewsRoom

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Quanta Services, Inc. $PWR Stock Holdings Increased by AMJ Financial Wealth Management

Feb -22

Source: defenseworld.net

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Empirical Financial Services LLC d.b.a. Empirical Wealth Management Has $10.56 Million Position in Quanta Services, Inc. $PWR

Feb -21

Source: defenseworld.net

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CenterBook Partners LP Has $967,000 Stake in Quanta Services, Inc. $PWR

Feb -21

Source: defenseworld.net

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Quanta Services Q4: Continues To Benefit From AI Data Center Demand For Power

Feb -20

Source: seekingalpha.com

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Ameritas Advisory Services LLC Sells 3,475 Shares of Quanta Services, Inc. $PWR

Feb -20

Source: defenseworld.net

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Quanta Services (NYSE:PWR) Sets New 12-Month High After Better-Than-Expected Earnings

Feb -20

Source: defenseworld.net

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PWR Holdings Limited (PWRHF) Q2 2026 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

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Quanta Services Inc (PWR) Q4 2025 Earnings Call Highlights: Record Revenues and Strategic Investments Propel Growth

Feb -19

Source: gurufocus.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

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Paychex

A-Score: 6.0/10

Value: 2.1

Growth: 5.8

Quality: 9.0

Yield: 7.0

Momentum: 2.5

Volatility: 9.3

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Cummins

A-Score: 5.7/10

Value: 2.6

Growth: 5.6

Quality: 5.8

Yield: 4.0

Momentum: 8.5

Volatility: 8.0

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Caterpillar

A-Score: 5.7/10

Value: 2.0

Growth: 6.9

Quality: 6.2

Yield: 3.0

Momentum: 8.5

Volatility: 7.3

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EMCOR

A-Score: 5.4/10

Value: 3.3

Growth: 9.1

Quality: 6.8

Yield: 0.0

Momentum: 8.0

Volatility: 5.3

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Argan

A-Score: 5.2/10

Value: 2.1

Growth: 8.6

Quality: 6.4

Yield: 2.0

Momentum: 10.0

Volatility: 2.3

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Quanta Services

A-Score: 5.0/10

Value: 1.5

Growth: 8.8

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 6.3

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

552.66$

Current Price

552.66$

Potential

-0.00%

Expected Cash-Flows