One-glance verdict
Overvalued
$281.31 our estimate vs market $626.41
Wall Street consensus: $768.70 (173.3% higher than our fair-value estimate)
123% above our estimate, beyond the bull case
Fundamentals snapshot
Quanta Services, Inc.
PWR · NYQ · Industrials · Engineering & Construction
Current price
$626.41
52-week range
$373.40 - $788.75
Market cap
$94.18B
Balance sheet
Watch
6.07x Adequate
Net debt $6.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 15.5% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 68.6% over 3 years.
- Risk Stock trades 43.4% above its 5-year average P/E.
What this company does
Quanta Services, Inc.
Quanta Services is a specialty construction company that builds and maintains the essential systems that deliver electricity, natural gas, and communications. It primarily makes money from long-term projects for utility and energy companies, such as upgrading aging power grids and building new renewable energy facilities. Because modernizing the country's infrastructure is an ongoing need, Quanta often has a steady demand for its services.
How the company got here
Quanta Services was formed in 1997 by bringing together four separate construction contractors. [3, 5, 6] The founders saw a big opportunity as electric utility companies, facing new rules, began to outsource (hiring outside companies) more of their construction and repair work. [3] Instead of growing slowly, Quanta expanded rapidly by acquiring over 200 other companies, a strategy that added new skills and service areas. [5] A major turning point was its 2021 purchase of Blattner Holding Company, which made Quanta a leader in building large-scale renewable energy projects. [1]
What it actually does
Quanta Services doesn't own power grids or pipelines; it's the specialized construction and maintenance company that utility and energy companies hire to build, repair, and upgrade that essential infrastructure. [1, 16] Think of them as the expert crews that work on high-voltage transmission lines, install wind turbines, or lay the pipelines that deliver natural gas. [14] Their customers pay them for the engineering know-how, skilled labor, and project management needed for these large, complex jobs. [1] Quanta handles everything from designing and planning to the physical construction and emergency repairs after a storm. [11]
Electric Power Infrastructure Solutions
This is Quanta's largest business, making up nearly half of its sales. [2] It focuses on the backbone of the electrical grid, building and maintaining the transmission lines and distribution networks that bring electricity from power plants to homes and businesses. [1, 14] Utility companies pay Quanta to construct and service everything from the giant steel towers you see crossing the countryside to the substations (the facilities that control power flow) in your town. [3, 14] This segment also provides emergency restoration services, sending crews to quickly repair damage and restore power after hurricanes or other major storms. [9]
Renewable Energy Infrastructure Solutions
This is a large and growing part of Quanta's business, responsible for about a third of its revenue. [2] This segment acts as a prime contractor for building massive clean energy projects, such as utility-scale solar farms, wind farms, and large battery storage facilities. [8, 18] Energy developers and utility companies hire Quanta to handle the complete construction process, from engineering and procuring materials to final installation. [16] This business grew significantly after Quanta acquired a major renewable energy construction company, positioning itself as a key builder for the transition to green energy. [1, 18]
Underground Utility and Infrastructure Solutions
This segment, the smallest of the three, specializes in infrastructure that is often located underground. [2, 14] A major part of its work involves building, repairing, and maintaining the pipeline networks that transport and distribute natural gas to communities. [4, 25] It also provides services for communications companies, such as installing the fiber optic cables needed for high-speed internet. [1, 10] Customers in this segment include gas utility companies and telecom providers who need specialized crews for pipeline and network construction. [16]
What management is betting on now
Management's strategy focuses on major long-term trends in the energy industry. [13] They are heavily invested in modernizing the aging U.S. power grid, which involves upgrading equipment and making the system more resilient to extreme weather. [1] The company also sees huge potential in the shift to clean energy, not just building solar and wind farms but also the new transmission lines required to connect them to customers. [1, 18] Finally, Quanta is positioning itself to meet rising electricity demand from new sources like data centers, which power AI and the cloud, and the growth of electric vehicles. [1, 5, 24]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$527.42M
FY2024 Q4
$565.03M
FY2025 Q1
$110.44M
FY2025 Q2
$155.36M
FY2025 Q3
$421.05M
FY2025 Q4
$933.97M
FY2026 Q1
$171.65M
FY2026 Q2
$864.49M
Revenue
$9.56B
Net income
$451.38M
Diluted EPS
2.96
Operating cash flow
$1.10B
Free cash flow
$864.49M
Fetching…
Sources
Revenue
$7.87B
Net income
$220.62M
Diluted EPS
1.45
Operating cash flow
$391.74M
Free cash flow
$171.65M
Fetching…
Sources
Revenue
$7.84B
Net income
$315.45M
Diluted EPS
2.08
Operating cash flow
$1.13B
Free cash flow
$933.97M
Fetching…
Sources
Revenue
$7.63B
Net income
$339.42M
Diluted EPS
2.24
Operating cash flow
$563.50M
Free cash flow
$421.05M
Fetching…
Sources
Revenue
$6.77B
Net income
$229.25M
Diluted EPS
1.52
Operating cash flow
$295.71M
Free cash flow
$155.36M
Fetching…
Sources
Revenue
$6.23B
Net income
$144.26M
Diluted EPS
0.96
Operating cash flow
$243.20M
Free cash flow
$110.44M
Fetching…
Sources
Revenue
$6.55B
Net income
$305.12M
Diluted EPS
2.03
Operating cash flow
$712.01M
Free cash flow
$565.03M
Fetching…
Sources
Revenue
$6.49B
Net income
$293.19M
Diluted EPS
1.95
Operating cash flow
$739.91M
Free cash flow
$527.42M
Fetching…
Sources
Is it cheap or expensive?
Fair value $281.31 vs current price $626.41
Wall Street consensus is the average analyst price target: $768.70 (173.3% higher than our fair-value estimate).
Our most-likely fair value is $281.31 a share — about 55.1% below today's price of $626.41, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $6.1B. Interest coverage 6.1x.
Net debt
$6.10B
Interest coverage
6.07x
Quanta Services, Inc.'s profit covers its interest bill about 6.1 times over.
Watch
Worse cushion
Baseline
Better cushion
PWR
BASELINE
Quanta Services, Inc.
Total debt $6.60B Interest coverage 6.07x This is the baseline the peer rows are being compared against.
Total debt $548.03M Interest coverage 130.49x +2,050% vs PWR Carries about 21.5x more debt cushion than PWR.
Total debt $3.24B Interest coverage 3.77x -38% vs PWR Carries about 1.6x less debt cushion than PWR.
Total debt $3.05B Interest coverage 6.39x +5% vs PWR Has roughly the same debt cushion as PWR.
Total debt $67.10M Interest coverage 28.79x +374% vs PWR Carries about 4.7x more debt cushion than PWR.
Total debt $369.91M Interest coverage 188.03x +2,997% vs PWR Carries about 31.0x more debt cushion than PWR.
What you should know
The case for and against PWR
3 Rewards
3 Risks
Rewards
-
Revenue grew 15.5% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 0.1% with 9-year payout history.
Risks
-
Net debt grew 68.6% over 3 years.
-
Stock trades 43.4% above its 5-year average P/E.
-
Insider ownership is only 0.7% (peer median: 1.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
71.92x
Forward P/E
31.77x
P/B
9.77x
P/S
2.86x
EV/EBITDA
32.32x
PEG ratio
1.41x
Profitability
How much profit each dollar creates
Gross margin
15.5%
Operating margin
7.2%
Net margin
4.0%
ROE
15.3%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.68x
Current ratio
1.10x
Quick ratio
0.98x
Total debt
$6.60B
Total cash
$506.43M
Growth
How the business has been compounding
Revenue TTM
$32.91B
Revenue 5Y CAGR
21.7%
EPS TTM
8.71
EPS 5Y CAGR
27.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.18B
Free CF TTM
$1.62B
FCF margin
4.9%
Dividend
Shareholder payout
Yield
0.1%
Payout ratio
4.9%
Last ex-div date
2026-10-01