Quanta Services (PWR)
Industrials · $89.1B market cap · SEC CIK 0001050915
ahead of 37% of the S&P 500 · #49 of 79 in Industrials
Next reports on Feb 17, 2027, after the close, with analysts expecting $5.22 in earnings per share.
52-week range $408.36 to $788.75. 26% below its 52-week high and 43% above its low.
The case for PWR
- Revenue up 37.1% on the year.
- Earnings per share up 63.8%.
- Has compounded revenue at 20.5% a year over five years.
- Return on equity of 18%.
The case against
- Net margin of 5% is thinner than 94% of Industrials companies.
- Long-term debt of $5.2B against $440M of cash.
- P/E of 53.0× is higher than 96% of Industrials companies.
- Free-cash-flow yield of 1.8% is lower than 91% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 46 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 90 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 32 |
| Momentumhow the price has behaved lately | 51 |
| Stabilityhow violently it moves, what it owes and what it pays you | 35 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +37.1% |
|---|---|
| Over 5 years | +20.5% a year |
| FY2025 revenue | $28.5B (+20%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.6B |
|---|---|
| Of revenue | 6% |
| Of profit | 158% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 16% |
|---|---|
| Operating margin | 7% |
| Net margin, FY24 → FY25 → now | 3.8% → 3.6% → 4.5% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $440M |
|---|---|
| Long-term debt | $5.2B |
| Net debt | $4.8B |
| Years to repay | 2.3 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 53.0× |
|---|---|
| Fair P/E for its growth | 46× |
| P/FCF | 55.0× |
| Forward P/E | 30.5× |
| EV / EBITDA | 29.4× |
At 53.0× earnings it trades close to the 46× that 25% a year of growth would justify. At 55.0× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Quanta Services's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $28.5B | $23.7B | $20.9B | $17.1B | $13.0B |
| Change on the year | +20% | +13% | +22% | +32% | — |
| Free cash flow | |||||
| Free cash flow | $1.6B | $1.5B | $1.1B | $703M | $197M |
| Of revenue | 6% | 6% | 5% | 4% | 2% |
| Profit margins | |||||
| Gross margin | 15.0% | 14.8% | 14.1% | 14.8% | 15.0% |
| Operating margin | 5.7% | 5.7% | 5.4% | 5.1% | 5.1% |
| Net margin | 3.6% | 3.8% | 3.6% | 2.9% | 3.7% |
| Debt vs. cash | |||||
| Cash | $440M | $742M | $1.3B | $429M | $229M |
| Long-term debt | $5.2B | $4.1B | $3.7B | $3.7B | $3.7B |
| Net cash (debt) | −$4.8B | −$3.4B | −$2.4B | −$3.3B | −$3.5B |
What Quanta Services says it does
OVERVIEW Quanta Services, Inc. (together with its subsidiaries, “Quanta,” “we,” “us” or “our”) is a leading provider of comprehensive infrastructure solutions for the electric and gas utility, power generation, large load center, manufacturing, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. We provide design, engineering, procurement, construction, upgrade and repair and maintenance services for infrastructure within each of these industries, including electric power transmission and distribution networks; substation facilities; wind, solar and gas power generation and transmission and battery storage facilities; low voltage electrical, mechanical, plumbing and process infrastructure for large load centers, such as data center, advanced manufacturing, healthcare, pharmaceutical and industrial facilities; communications and cable multi-system operator…
Risk factors PWR lists in its 10-K
- Cautionary Statement About Forward-Looking Statements and Information
- Our operating results may vary significantly from quarter to quarter
- A variety of issues could affect the timing or profitability of our projects, which may result in additional costs to us, reductions or delays in revenues, the payment of liquidated damages or project termination
- Our business is subject to operational hazards, including, among others, wildfires and explosions, that can result in significant liabilities, and we may not be insured against all potential liabilities
- Insurance and claims expenses, as well as the unavailability or cancellation of third-party insurance coverage, could have a material adverse effect on us
- Our business and operating results are subject to physical risks associated with changes in climate
- Our business is labor-intensive, and we may be unable to attract and retain qualified employees or we may incur significant costs in the
- we are unable to efficiently manage our workforce or the cost of labor increases
- The loss of, or reduction in business from, certain significant customers could have a material adverse effect on our business
- Changes in estimates related to revenues and costs associated with our contracts with customers could result in a reduction or elimination of revenues, a reduction of profits or the recognition of losses
- Financial Statements and Supplementary Data
- We may fail to adequately recover on contract change orders or claims brought by us against customers
- During the ordinary course of our business, we are subject to lawsuits, claims and other legal proceedings, as well as bonding claims and related reimbursement requirements
- We may be unsuccessful at generating internal growth, which could adversely affect our business
- Many of our contracts may be canceled or suspended on short notice or may not be renewed upon completion or expiration, and we may be unsuccessful in replacing our contracts, which could adversely affect our business
- The nature of our business exposes us to potential liability for warranty, engineering and other related claims
- We can incur liabilities or suffer negative financial or reputational impacts relating to health and safety matters
- Disruptions to our information technology systems or our failure to adequately protect critical data, sensitive information and technology systems could materially affect our business and reputation
- Any deterioration in the quality or reputation of our brands, which can be exacerbated by the effect of social media or significant media coverage, could have an adverse impact on our business
- Our financial results, financial condition and other financial and operational disclosures are based upon estimates and assumptions that may differ from actual results or future outcomes
- Management’s Discussion and Analysis of Financial Condition
- Our inability to successfully execute our acquisition strategy may have an adverse impact on our growth
- Our management structure could be inadequate to support our business as it expands and becomes more complex
- The loss of, or our inability to attract or keep, key personnel could disrupt our business
- Our investments, including our joint ventures, expose us to risks and may result in conflicts of interest that could adversely impact our business or result in reputational harm
- We extend credit to customers for purchases of our services and enter into other arrangements with certain of our customers, which subjects us to potential credit or investment risk
- Risks associated with operating in international markets and U.S. territories could harm our business and prospects
- Limitations on the availability of suppliers, subcontractors and equipment manufacturers that we depend on could adversely affect our business
- A lack of availability or an increase in the price of fuel, materials or equipment necessary for our business or our customers
- projects could adversely affect our business
- Scrutiny and expectations from various stakeholders with respect to corporate sustainability practices may impose additional costs on us or expose us to reputational or other risks
- Negative macroeconomic conditions and industry-specific economic and market conditions can adversely impact our business
- Our revenues and profitability can be negatively impacted if our customers encounter financial difficulties or file bankruptcy or disputes arise with our customers
- highly competitive, and competitive pressures could negatively affect our business
- Technological advancements and other market developments could negatively affect our business
- Regulatory requirements applicable to our industries and changes in current and potential legislative and regulatory initiatives may adversely affect demand for our services
- Our unionized workforce and related obligations may adversely affect our operations
- We could be adversely affected by our failure to comply with the laws applicable to our foreign activities
- Our failure to comply with environmental laws and regulations could result in significant liabilities and increased costs
- Certain regulatory requirements applicable to us and certain of our subsidiaries could materially impact our business
- Changes in tax laws or our tax estimates or positions could adversely affect our financial results
- Opportunities within the government arena could subject us to increased regulation and costs and may pose additional risks relating to future funding and compliance
- Immigration laws, including our inability to verify employment eligibility and restrictions on movement of our foreign employees, could adversely affect our business or reputation
- We may not have access in the future to sufficient funding to finance desired growth and operations
- We have a significant amount of debt, and our significant indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our other debt
- Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness
- Our variable rate indebtedness subjects us to interest rate risk
- We may be unable to compete for projects if we are not able to obtain surety bonds, letters of credit or bank guarantees
- A downgrade in our debt rating could restrict our ability to access the capital markets
- Our sale or issuance of additional common stock or other equity-related securities could dilute each stockholder’s ownership interest or adversely affect the market price of our common stock
- There can be no assurance that we will declare or pay future dividends on our common stock
- Certain provisions of our corporate governing documents could make an acquisition of our company more difficult