📊 PWR Key Takeaways
Is Quanta Services, Inc.. (PWR) a Good Investment?
Quanta Services exhibits strong revenue growth of 20.3% YoY, but net income declined 1.3% despite top-line expansion, indicating margin compression and cost pressures. Thin profitability metrics (2.8% net margin, 2.4% ROE) combined with capital-intensive operations and significant debt ($5.2B) constrain returns, though positive free cash flow and manageable leverage provide stability.
Quanta Services shows strong fundamental momentum with 20.3% revenue growth, solid free cash flow generation, and very strong interest coverage, indicating that growth is being supported by healthy operating execution rather than financial strain. Profitability remains relatively thin for the scale of the business and net income was flat year over year, but the balance sheet, cash generation, and EPS growth support a favorable fundamental view.
Why Buy Quanta Services, Inc.. Stock? PWR Key Strengths
- Strong revenue growth of 20.3% YoY demonstrating robust market demand and business expansion
- Positive free cash flow of $171.7M providing operational flexibility and financial cushion
- Healthy interest coverage ratio of 8.2x indicating strong ability to service debt obligations
- Moderate debt-to-equity ratio of 0.58x allowing capacity for future financing if needed
- Revenue growth is strong at 20.3% year over year, showing sustained demand and execution
- Free cash flow of $1.62B and operating cash flow of $2.23B indicate good cash conversion and funding flexibility
- Leverage appears manageable with 0.59x debt-to-equity and 39.2x interest coverage
PWR Stock Risks: Quanta Services, Inc.. Investment Risks
- Net income declined 1.3% YoY despite strong revenue growth, signaling margin compression and rising cost pressures
- Extremely thin profit margins (2.8% net margin, 4.3% operating margin) provide minimal buffer for economic downturns
- Weak returns on equity (2.4%) and assets (0.9%) indicate inefficient capital utilization and deployment
- Significant long-term debt of $5.2B relative to modest cash position of $364.8M limits financial flexibility
- Capital-intensive operations with $220.1M annual CapEx constraining free cash flow generation (2.2% FCF margin)
- Net income was flat year over year, which may indicate margin pressure or higher non-operating costs
- Margins are relatively thin with a 5.7% operating margin and 3.6% net margin, leaving limited room for execution missteps
- Liquidity is adequate but not especially strong, with a 1.14x current ratio and modest cash balance relative to total liabilities
Key Metrics to Watch
- Operating margin trend - monitor whether revenue scale improves profitability or if cost structure remains problematic
- Free cash flow generation and conversion rate - critical for debt reduction and shareholder value creation
- Debt reduction trajectory - essential indicator of financial de-leveraging and improved flexibility
- Return on equity progression - key measure of whether growth translates to shareholder value
- Operating and net margin trend
- Free cash flow conversion versus net income
Quanta Services, Inc.. (PWR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.2% FCF margin may limit capital allocation flexibility.
PWR Profit Margin, ROE & Profitability Analysis
PWR vs Utilities Sector: How Quanta Services, Inc.. Compares
How Quanta Services, Inc.. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Quanta Services, Inc.. Stock Overvalued? PWR Valuation Analysis 2026
Based on fundamental analysis, Quanta Services, Inc.. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Quanta Services, Inc.. Balance Sheet: PWR Debt, Cash & Liquidity
PWR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Quanta Services, Inc..'s revenue has grown significantly by 119% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.00 reflects profitable operations.
PWR Revenue Growth, EPS Growth & YoY Performance
PWR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.2B | $144.3M | $0.96 |
| Q3 2025 | $6.5B | $293.2M | $1.95 |
| Q2 2025 | $5.6B | $188.2M | $1.26 |
| Q1 2025 | $5.0B | $118.4M | $0.79 |
| Q3 2024 | $5.6B | $272.8M | $1.83 |
| Q2 2024 | $5.0B | $165.9M | $1.12 |
| Q1 2024 | $4.4B | $95.0M | $0.64 |
| Q3 2023 | $4.5B | $156.0M | $1.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Quanta Services, Inc.. Dividends, Buybacks & Capital Allocation
PWR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Quanta Services, Inc.. (CIK: 0001050915)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PWR
What is the AI rating for PWR?
Quanta Services, Inc.. (PWR) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PWR's key strengths?
Claude: Strong revenue growth of 20.3% YoY demonstrating robust market demand and business expansion. Positive free cash flow of $171.7M providing operational flexibility and financial cushion. ChatGPT: Revenue growth is strong at 20.3% year over year, showing sustained demand and execution. Free cash flow of $1.62B and operating cash flow of $2.23B indicate good cash conversion and funding flexibility.
What are the risks of investing in PWR?
Claude: Net income declined 1.3% YoY despite strong revenue growth, signaling margin compression and rising cost pressures. Extremely thin profit margins (2.8% net margin, 4.3% operating margin) provide minimal buffer for economic downturns. ChatGPT: Net income was flat year over year, which may indicate margin pressure or higher non-operating costs. Margins are relatively thin with a 5.7% operating margin and 3.6% net margin, leaving limited room for execution missteps.
What is PWR's revenue and growth?
Quanta Services, Inc.. reported revenue of $7.9B.
Does PWR pay dividends?
Quanta Services, Inc.. pays dividends, with $17.2M distributed to shareholders in the trailing twelve months.
Where can I find PWR SEC filings?
Official SEC filings for Quanta Services, Inc.. (CIK: 0001050915) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PWR's EPS?
Quanta Services, Inc.. has a diluted EPS of $1.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PWR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Quanta Services, Inc.. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PWR stock overvalued or undervalued?
Valuation metrics for PWR: ROE of 2.4% (sector avg: 10%), net margin of 2.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy PWR stock in 2026?
Our dual AI analysis gives Quanta Services, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PWR's free cash flow?
Quanta Services, Inc..'s operating cash flow is $391.7M, with capital expenditures of $220.1M. FCF margin is 2.2%.
How does PWR compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 2.8% (avg: 12%), ROE 2.4% (avg: 10%), current ratio 1.14 (avg: 0.8).