PWR

QUANTA SERVICES, INC.

MaterialsCIK 0001050915

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Market Cap
$79.62B
P/E (TTM)
72.1x
Rev Growth (TTM)
+21.1%
Net Margin (TTM)
3.7%
FCF Yield (TTM)
2.1%
FCF Margin (TTM)
5.6%

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LATEST EARNINGS

Q1 2026
2 months ago
View source
Revenue
$7.87B
+26.3%
Net Income
$220.63M
+53.0%
EPS
$1.45
+51.0%
Gross
14.1% +0.7%
Operating
4.3% +0.5%
Net
2.8% +0.5%
  • Record first quarter revenues of $7.87 billion, a significant increase from $6.23 billion in Q1 2025.
  • GAAP Diluted EPS of $1.45, up from $0.96 in Q1 2025, and Adjusted Diluted EPS of $2.68, up from $1.78 in Q1 2025.
  • Record backlog of $48.5 billion and Remaining Performance Obligations (RPO) of $26.2 billion, indicating strong future revenue visibility.
  • Increased full-year 2026 financial expectations for revenue, net income, EPS, EBITDA, and free cash flow.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.7B
Q1 '26
$172M-82%
Q4 '25
$934M+122%
FCF Margin
TTM5.6%
Q1 '262.2%-82%
Sector: 0.3%Above Avg
OCF Margin7.9%
OCF/NI2.15x
CapEx Coverage3.4x
FCF Yield2.1%
FCF Growth (2Y)+35%
Cash Conversion Cycle
81 days
DSO: 76+DIO: 5DPO: 0

Capital Allocation & Returns

Accumulating Cash
Total Shareholder YieldTTM
TTM0.1%
Div Yield0.1%
+
Buyback (TTM)0.0%

Limited capital returns

Dividend & Payout Metrics
Dividend Yield (TTM)0.1%
FCF Payout Ratio3.7%
Free Cash Flow (TTM)$1.7B
Stock Repurchases (TTM)$16.0M
Capital Return / FCF4.7%
Est. Dividends Paid (TTM)$62.6M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
9.6%
Stable
-0.0% YoY-1.1%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
4.4%
8Q: 4.3%
Asset Turnover
1.34x
8Q: 1.39x
Leverage (1+D/E)
1.65x
D/E: 0.65x
DuPont: 9.7%9.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
153.51x
8Q:143.61x
+4122.6%
Invested Cap Turn
2.66x
8Q:2.71x
-32.6%
CapEx Intensity
6.2%
8Q:6.4%
CapEx/Depreciation
0.72x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
72.1x
Volatile
8Q: 199.2x+12264%
Multiple expansion without fundamental improvement
High PEG ratio (4.0x) suggests expensive for growth
Valuation Lenses
Earnings
72.1x
vs sector
Cash Flow
50.2x
EV/FCF vs
Growth-Adj
4.0xPEG
Expensive for growth
Quality-Adj
7.5P/E per %ROIC
ROIC: 9.6%
Shareholder Returns
Dividend
0.1%
Buyback
0.0%
Total Yield
0.1%
Market Cap$79.62B
EV$84.50B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
80/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
13.2%
8Q:
Return on Invested Capital (ROIC)Top 25%
9.6%
8Q:
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 4.4%
Asset Turnover: 1.34x

Earnings Quality

Cash Conversion

2.15x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin15.1%

Capital Efficiency

Invested Capital Turnover2.66x

Working Capital

Cash Conversion Cycle81 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
21.1%
OpInc Growth YoY
41.7%
EPS Growth YoY
17.8%
FCF 3Y CAGR
35.0%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 8.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
15.1%
Operating
5.7%
Below Avg in sector
Net
3.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.9 pts
FCF: 5.6% | Net: 3.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $5.53B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.65x
Balance sheet risk & solvency analysis