Start here if you're new
what it is
Quanta builds and repairs the power, gas, telecom, and utility networks your life quietly depends on.
how it gets paid
Last year Quanta Services made $28.5B in revenue. Electric transmission was the main engine at $9.9B, or 35% of sales.
why it's growing
Revenue grew 20.3% last year. The $44.0B backlog matters more than the penny-level EPS miss because it shows demand is stacking up faster than Quanta can work through it.
what just happened
Quanta put up $7.84B of fourth-quarter revenue, but EPS of $3.16 missed the $3.21 consensus.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
95/100 earnings predictability — you can trust these numbers
51.1x trailing p/e — you're paying up for this one
0.1% dividend yield — cash in your pocket every quarter
18.5% return on capital — nothing to write home about
xvary composite: 70/100 — average
What they do
Quanta builds and repairs the power, gas, telecom, and utility networks your life quietly depends on.
This business wins because the job is messy, regulated, and labor-heavy. Quanta has 69,500 employees and works in all 50 states, which means your utility can call one contractor for storm repair, grid upgrades, and big transmission jobs. Backlog → signed work waiting to be done → so what: the company entered 2026 with $44.0 billion already lined up.
How they make money
$28.5B
annual revenue · their business grew +20.3% last year
Electric transmission
$9.9B
Electric distribution
$8.6B
Grid reliability and large-load connections
$4.6B
Underground utility infrastructure
$3.7B
Telecom and cable infrastructure
$1.7B
The products that matter
grid construction and maintenance
Electric Power Infrastructure
$28.5B revenue
it's the only clearly disclosed operating story in this snapshot: a $28.5B business that grew 38% last year as utilities and energy customers kept spending on the grid.
core exposure
Key numbers
$44.0B
total backlog
That is signed work waiting to be built, and it is larger than Quanta's entire $28.5B annual revenue base.
51.1x
trailing p/e
You are not buying a cheap contractor. You are paying up for years of continued execution.
13.0%
operating margin
Margin tells you how much of each sales dollar survives after running the job machine. Labor pressure matters here.
18.5%
return on capital
Return on capital → profit earned on money invested → so what: Quanta turns projects and acquisitions into decent returns.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $5.2B (6% of capital)
- net profit margin 7.2% — keeps 7 cents of every dollar in revenue
- return on equity 22% — $0.22 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in PWR 3 years ago → it's now worth $34,550.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Quanta put up $7.84B of fourth-quarter revenue, but EPS of $3.16 missed the $3.21 consensus.
Revenue rose 20% vs. prior year in the quarter as demand for grid reliability, transmission, distribution, and large-load power delivery stayed strong. The quiet part is margin pressure: management said workforce costs weighed on operating margins.
$7.84B
revenue
$3.16
eps
14.8%
gross margin
the number that mattered
The $44.0B backlog matters more than the penny-level EPS miss because it shows demand is stacking up faster than Quanta can work through it.
-
quanta services had another robust performance in the 2025 final stanza.
-
fourth-quarter revenues came in well ahead of expectations, at $7.84 billion (up 20% vs. prior year), driven by outperformance in the electric business.
-
demand for grid reliability, transmission/distribution upgrades, and power delivery to large-load customers is accelerating.
-
however, workforce costs weighed on operating margins.
-
nonetheless, share earnings improved 7.5% against the year-ago period.
source: company earnings report, 2026
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What could go wrong
the #1 risk is customer spending slowing after a 38% growth year.
med
utility and energy capex cools
after a 38% growth year, comparisons get harder. if utilities, pipeline customers, or large-load projects pause, revenue momentum can slow fast.
at 51.1x trailing earnings, the stock leaves very little room for a normal slowdown.
med
labor costs and project execution
this is manpower-heavy work. wage pressure, scheduling misses, and project overruns hit profitability before they hit the revenue line.
with a 6.2% net margin, even modest cost leakage matters.
med
permitting and customer timing delays
regulated infrastructure moves on other people's calendars. projects can be real and still arrive later than investors expect.
delays would make the $34B revenue expectation harder to hit on time.
at 6.2% net margin and 51.1x trailing earnings, PWR needs both project volume and clean execution. you do not get much room for disappointment.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
fy2026 revenue versus the $34B bar
that estimate implies roughly 19% growth from $28.5B. if quanta starts tracking below it, the multiple becomes the story.
risk
margin discipline
labor inflation already showed up in the news flow. on a 6.2% net margin, you want cost control to get better, not worse.
calendar
next earnings and contract cadence
watch whether big project wins keep showing up often enough to support a stock that has already tripled the market over three years.
trend
multiple compression risk
if EPS growth cools while the price stays near $549, valuation can do the downside work even if the business stays fine.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they still like the setup.
risk profile
average
stability score 3 — typical stock risk. not a bunker, not a rollercoaster.
chart momentum
below average
technical score 4 — the business can still be good while the chart cools off. welcome to expensive stocks.
earnings predictability
95 / 100
management tends to deliver what it signals. for you, that means fewer drama quarters than most industrial names.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 652 buyers vs. 486 sellers in 4q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$399
$859
$549
current price
$629
target midpoint · +15% from current · 3-5yr high: $985 (+80% · 16% ann'l return)
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