Quanta Services (PWR) · Grid & power infrastructure EPC

Market snapshot

Price (~)

USD 639

Market cap (~)

USD 95.3B

Q2'26 revenue

USD 9.6B

Backlog

USD 53.4B

As-of 2026-09-25 (weekly refresh; equities aligned to §A. Missing series are N/A/null. Not investment advice.)

Thesis

Quanta Services (NYSE: PWR) is the leading North American grid and power infrastructure EPC contractor. Q2'26 revenue hit a record $9.56B (+41% YoY) with net income $451M and backlog $53.4B (+47%), driven by transmission hardening, renewables interconnection, and data-center power builds. FY26 revenue guidance was raised to $39.3–39.7B.

At ~$639 (~$95B market cap), the stock trades at a premium ~48x TTM P/E — the market pays for visible backlog conversion and AI-load EPC, but debates labor inflation and fixed-price risk. Equipment peer context: ETN.

Business

Model: Quanta designs, builds, and maintains electric power, renewables, and communications infrastructure under multi-year EPC/MSA contracts. Revenue is project-driven with backlog/RPO as the primary forward indicator.

Flagship lines:

1. Electric Infrastructure (~82% rev) — transmission, substations, grid modernization, data-center power, renewables interconnection.
2. Underground Utility (~18%) — pipeline and communications infrastructure.

Competitiveness:

• Scale & backlog: $53.4B backlog / $33.6B RPO — largest pure-play grid EPC platform in North America.
• End-market mix: Early positioning in hyperscale data-center power and IRA-linked grid capex.

Strategy (12–24m): Organic awards + bolt-on M&A; FY26 guide embeds $1.2–1.4B acquired revenue. Near-term earnings = backlog burn × margin − labor inflation.

Entity / boundary: Quanta Services, Inc. (PWR). No material restructuring — continuing ops across Electric Infrastructure and Underground Utility segments.

Strategy pillars

Strategy pillars

Pillar	Content
Grid modernization	Transmission/distribution hardening
Data-center power	Hyperscale EPC
M&A capability	Bolt-on engineering/craft

Value chain

Position: Downstream construction/EPC integrator — Quanta sits between utilities/hyperscalers/renewables developers (customers) and equipment suppliers (transformers, cable, steel — e.g. Eaton ETN).

Customer concentration: No single customer >10% typically disclosed; diversified utility and industrial base.

Supply-chain risks (see Risks): (1) craft labor scarcity; (2) transformer/equipment lead times delaying project revenue recognition.

Customers & contract mix

Customers & contract mix

Item	Value	Note
Customer mix	IOUs, renewables, data centers	No customer >10% typical
Geography	~93% North America	US/Canada/Australia
Contract type	~61% fixed-price	Balance cost-plus

Corporate events

2025–2026 saw backlog inflection on grid modernization and data-center power, plus active M&A in Q2'26.

Corporate events

Corporate events

Date	Phase	Event	Meaning
2025-H2	Operations	Grid/data-center award surge	Backlog inflection
2026-Q1	Earnings	Rev $7.87B; backlog $48.5B	Raised FY26 guide
2026-Q2	M&A	Multiple acquisitions	+$1.2–1.4B FY26 rev
2026-07-30	Earnings	Rev $9.56B; backlog record	Guide $39.3–39.7B

Valuation

Price ~$639 (Aug 2026); market cap ~$95B. The market prices backlog visibility + grid/AI power theme at a premium industrial multiple.

At ~48x TTM P/E and ~24x EV/adj. EBITDA (FY26E), valuation assumes mid-teens revenue growth and ~11% adj. EBITDA margins hold. Dividend yield minimal (~0.07%).

~3-year PE/PB/dividend yield/trailing return:

Valuation snapshot

Valuation snapshot

Metric	Value	Note
Price	~$639	52-wk $363–789
Market cap	~$95B	~147M shares
P/E (TTM ~)	~48x	FY26 EPS guide $11.41–11.92
EV/adj. EBITDA	~24x	FY26E ~$4.15B
Div yield	~0.07%	$0.44/yr

Valuation & returns · ~3y

Interactive chart available in the reader.

Share price · ~3y

Interactive chart available in the reader.

Financial trend (~24 months)

Eight-quarter revenue and net income margin with YoY/QoQ. Q2'26 revenue $9.56B disclosed; earlier quarters ~estimated from growth trajectory.

Total revenue · last 8 quarters

Interactive chart available in the reader.

Net / EBITDA margin · last 8 quarters

Interactive chart available in the reader.

Financial health (§A.7)

Financial health

Financial health

Item	Value	Note
OCF (H1'26)	~$1.49B	+176% YoY
Net debt	~$2–3B	Investment-grade
Liquidity	Strong	FCF guide $2.0–2.5B FY26
Auditor	Unqualified	No going-concern

A.7 read: H1'26 OCF ~$1.49B (+176% YoY) — strong conversion on milestone billing. Net debt ~$2–3B — investment-grade profile. FY26 FCF guide $2.0–2.5B. Auditor unqualified; no going-concern emphasis.

Net income · last 8Q

Interactive chart available in the reader.

Operations

Q2'26 drivers:

• Volume: Record revenue on Electric Infrastructure (+45% est.).
• Price/mix: Data-center and transmission awards carry favorable mix but fixed-price exposure (~61%).
• Cost: Craft labor and equipment inflation — Q2 net margin 4.7% (NI $451M / rev $9.56B).

Operating snapshot

Operating snapshot

Item	Value	YoY	Note
Q2'26 revenue	$9.56B	+41%	Record
Q2'26 net income	$451M	+97%	EPS $2.96
Electric Infrastructure	~82%	+45% est.	Grid/data-center
Underground Utility	~18%	+25% est.	Pipeline/comms
Backlog	$53.4B	+47%	RPO $33.6B

Competition

Grid EPC peers differ by scale, contract mix, and equipment vs construction exposure. See MYRG (pure T&D) and ETN (equipment).

Market share trend · last 8Q

Interactive chart available in the reader.

Peer market share comparison (latest est.)

Interactive chart available in the reader.

Peer comparison

Peer comparison

Company	Position	Margin lens	Strength	Weakness
Quanta PWR (self)	US grid/EPC leader	Adj. EBITDA ~11%	Record $53B backlog; data-center EPC	Premium valuation; labor risk
MYRG	T&D EPC	Smaller scale	Pure-play T&D	Less backlog vs PWR
Eaton ETN	Electrical equipment	Higher product GM	Equipment moat	Less construction exposure

PWR vs peers: MYRG is smaller T&D pure-play with less data-center exposure. ETN captures equipment/software margin but lacks PWR's construction backlog lever.

Management

CEO Earl C. "Duke" Austin Jr. (since 2016) and CFO Jayshree Desai (since 2022) led the Q2 record quarter and FY26 guide raise. No C-suite turnover in 24m — stability high.

Key management (24m)

Key management (24m)

Role	Name	Since	24m change
President & CEO	Earl C. "Duke" Austin Jr.	2016	No change
CFO	Jayshree Desai	2022	No change
Independent Chair	John R. Wilson	2021	No change

Outlook

Near-term (H2'26): Confirm backlog >$53B and FY26 rev $39.3–39.7B. Watch Q3 seasonality and M&A integration margins.

Medium-term: Grid hardening + data-center power capex; margin depends on labor availability and fixed-price discipline.

Scenarios

Risks

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Tracking list

1. Backlog & RPO — confirm grid/data-center awards (confirm: backlog >$55B; falsify: backlog growth <15% YoY).
2. FY26 revenue guide $39.3–39.7B — Q3/Q4 run-rate vs +41% Q2 (falsify: rev miss two consecutive quarters).
3. Adj. EBITDA margin — labor inflation pass-through (confirm: margin ≥10% FY26).
4. M&A integration — acquired rev contribution $1.2–1.4B (falsify: margin dilution >100bps).
5. Data-center EPC awards — hyperscale contract wins vs ETN equipment cycle.

References

1. Quanta Services Q2 2026 earnings release — https://investors.quantaservices.com/
2. Quanta FY2026 outlook (Jul 30, 2026) — https://investors.quantaservices.com/
3. SEC EDGAR — Quanta Services (PWR) — https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001050915
4. Peer context: Eaton (ETN)
5. NYSE PWR quote — https://www.nyse.com/quote/XNYS:PWR

Figures marked (~) are approximate where quarterly detail was not fully disclosed. Not investment advice.