Quanta Services Sees Significant Backlog Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 31 2026
0mins
Source: NASDAQ.COM
- Backlog Growth: Quanta Services' total backlog surged nearly 38% year-over-year to a record $48.5 billion, driven by strong demand for AI data centers and grid modernization, laying a solid foundation for future revenue growth.
- Margin Expansion: The company's focus on more complex, fixed-price infrastructure projects has led to an increase in gross margins to 8.7% in the first quarter, up 60 basis points from a year ago, indicating a successful shift towards higher-margin work.
- Increased Capital Expenditure: To support its record backlog, management has guided for capital expenditures of approximately $775 million for 2026, nearly 30% higher than the past two years, which will pressure short-term free cash flow but ensures long-term growth potential.
- Valuation Challenges: Despite strong fundamentals, the stock now trades at a price-to-earnings ratio of 52, roughly double its average over the past five years, prompting investors to carefully assess the risks associated with its high valuation against potential returns.
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Analyst Views on PWR
Wall Street analysts forecast PWR stock price to fall
17 Analyst Rating
12 Buy
5 Hold
0 Sell
Moderate Buy
Current: 714.850
Low
424.00
Averages
487.00
High
540.00
Current: 714.850
Low
424.00
Averages
487.00
High
540.00
About PWR
Quanta Services, Inc. is a provider of infrastructure solutions for the electric and gas utility, power generation, large load center, manufacturing, communications, pipeline and energy industries. It provides design, engineering, procurement, construction, upgrade, repair and maintenance services for industries, including electric power transmission and distribution networks; substation facilities; wind, solar, gas power generation, 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 networks; gas utility systems; pipeline transmission systems and facilities; and downstream industrial facilities. Its segments include Electric Infrastructure Solutions (Electric) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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