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Security report / PWR

PWR Operating Console

Quanta Services has strong Electric backlog, raised FY2026 guidance, and direct exposure to grid, power generation, data-center, and large-load infrastructure. The console tracks the next proof window: backlog conversion, segment margins, DSO, free cash flow, the October 2026 term-loan path, acquisition integration, and whether large-load projects show attractive economics.

Metadata Knowledge Lane Fallback Chart
Ticker PWR
Knowledge reviewed 2026-05-24
Links checked 2026-06-22
Chart source Local API
Module 01 / Price

Selected-Security Chart

API required

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Module 02 / Proof window

Current Company View

High bar
Next read Q2 needs backlog quality, Electric margins, DSO, FCF, and term-loan commentary to match the valuation already paid for growth.
Measured base

Q1 2026 revenue was $7.87B, up 26.3% year over year, and adjusted EBITDA was $686.4M.

Main proof issue

Total backlog was $48.47B, but backlog includes estimated MSA renewals and short-term non-fixed-price activity.

Valuation context

The lane's May 22 market snapshot showed a $723.44 close, roughly 71% YTD return, beta of 1.24, and a reported forward P/E near 53x.

Next evidence

Q2 earnings, Electric backlog additions, segment margin, DSO, FCF guidance, NiSource project economics, acquisition integration, and October 2026 debt handling.

Q1 revenue $7.87B Up 26.3% y/y
Electric revenue $6.47B 82.1% of Q1 revenue
Total backlog $48.47B March 31, 2026
Electric backlog $40.11B Main demand channel
FY26 adj. EBITDA guide $3.49B-$3.65B Raised after Q1
DSO 61 days Below five-year average
Exposure Map

Business Profile, Segments, And Exposure

Electric is the operating center. The large-load story needs project-level conversion evidence, not only headline backlog.

Business model

Project-based infrastructure contractor

Quanta designs, installs, repairs, and maintains utility, power generation, load center, communications, pipeline, and energy infrastructure. Revenue is labor-, fleet-, equipment-, and working-capital-intensive, with much of the work recognized over time.

Disclosure map

Two operating segments, mixed backlog quality

Electric and Underground & Infrastructure segment revenue and operating income are disclosed. Backlog is non-GAAP and includes estimated MSA renewals plus short-term non-fixed-price work, so backlog quality has to be tested through conversion, margin, collections, and project commentary.

Electric infrastructure

$6.47B Q1 revenue and $40.11B backlog.

Electric is the direct route to utility grid, transmission, generation, data-center, and manufacturing load demand.

More useful evidence

Q2 Electric backlog additions, segment margin, and MSA conversion commentary.

Underground and infrastructure

$1.41B Q1 revenue with acquisition contribution.

The segment adds gas utility, pipeline integrity, industrial, civil, mechanical, plumbing, and site infrastructure work.

More useful evidence

Organic growth separated from acquired revenue and project-level operating margin.

Backlog quality

$48.47B backlog and $26.24B RPO are not the same quality of commitment.

The lane records a 45% MSA share of backlog and warns that estimated work can change with customer timing.

More useful evidence

RPO conversion, cancellation language, contract mix, DSO, and unbilled receivable movement.

Large-load power

NiSource 3 GW project supports the data-center and manufacturing load case.

Public sources did not provide enough detail on economics, timing, and risk sharing to underwrite the project as a margin proof point.

More useful evidence

Contract terms, project timing, margin bridge, working-capital needs, and ROIC targets.

Value Driver Board

Relative Value And Value Drivers

The operating profile is strong. The valuation now depends on how cleanly backlog becomes margin, cash, and ROIC.

Electric conversion
$40.11B backlog

Electric backlog is the core support for the grid and large-load infrastructure setup.

Next: Q2 Electric revenue, backlog additions, RPO, and project commentary.
Margin quality
8.7% Electric margin

Scale helps only if fixed-price work, labor, fuel, freight, metals, and change orders stay controlled.

Next: segment margins, consolidated operating margin, and cost pass-through language.
Cash conversion
61-day DSO

Q1 DSO improved, but contract assets, unbilled receivables, claims, and capex keep FCF central.

Next: operating cash flow, FCF guidance, capex, contract assets, and collections.
Capital allocation
$5.89B debt / $1B buyback

Liquidity is adequate, but debt service, capex, M&A, dividends, and buybacks compete for cash.

Next: October 2026 term-loan path and use of the new repurchase authorization.
Guidance Tests

Guidance Path And What Changed

Q1 raised the revenue, adjusted EPS, and adjusted EBITDA outlook. FCF guidance remained the main cash-quality check.

Question
Can backlog convert at the expected pace?

Confirm Q2 revenue and Electric backlog conversion support FY2026 revenue guidance of $34.7B-$35.2B.

Warn if backlog growth comes with weaker RPO conversion, higher-risk terms, or customer delays.

Question
Do margins support the raised EBITDA guide?

Confirm Electric and Underground margins stay consistent with FY2026 adjusted EBITDA guidance of $3.49B-$3.65B.

Warn if segment margins fall while revenue continues to grow.

Question
Does free cash flow keep pace?

Confirm DSO and contract assets support FY2026 FCF guidance of $1.55B-$2.05B.

Warn if operating cash flow materially lags adjusted EBITDA or capex absorbs the benefit of growth.

Operating Evidence

Operating Evidence And KPIs

Use these as quarterly proof tiles; the full claim and evidence map stays in the knowledge lane.

Q1 revenue
$7.875B

Revenue rose 26.3% year over year; this supports demand, but not the full valuation case by itself.

Electric segment
$6.469B / 8.7%

Electric revenue and margin are the cleanest operating read on grid and large-load execution.

RPO and backlog
$26.24B / $48.47B

RPO plus backlog show visibility; MSA and non-fixed-price assumptions make quality checks necessary.

Cash conversion
$391.7M OCF

Q1 operating cash flow improved and DSO fell to 61 days; capex was $220.1M.

Debt stack
$5.89B debt

Liquidity was $2.82B, but a $656.3M term loan matures in October 2026.

Capital Ledger

Financial Quality And Capital Allocation

Cash quality is adequate today. The next test is whether growth still self-funds after capex, working capital, debt service, and M&A.

Financial quality

Working-capital proof

Q1 operating cash flow was $391.7M and DSO was 61 days, below the five-year average of 72 days. The quality watch remains contract assets, unbilled receivables, change orders, claims, and capex, because project revenue can move before cash collections.

Capital allocation

Growth-first with buyback support

Quanta had $364.8M of cash, $5.89B of long-term debt obligations, and $2.82B of available commitments plus cash at March 31, 2026. The May 22 dividend and $1B buyback authorization add shareholder-return capacity, but debt, capex, M&A, and working capital stay ahead of buybacks in the proof stack.

Position Board

Competitive Position

Scale, craft labor, customer relationships, and total-solutions breadth are visible. Project execution still decides the economics.

What PWR has

Scale and labor

Quanta's large craft-labor platform supports complex utility and power infrastructure programs.

Backlog visibility

Total backlog reached $48.47B, with Electric backlog at $40.11B.

Customer breadth

The company serves utility and power, energy and other, and technology, manufacturing, and communications customers.

What still needs proof

Project economics

NiSource and similar large-load projects need timing, margin, risk-sharing, and ROIC disclosure.

Organic quality

Q1 growth included acquired revenue; organic conversion should be separated from acquisition contribution.

Estimate discipline

Fixed-price and percentage-of-completion work make cost estimates, change orders, and claims important.

Street View

Ownership, Flows, Valuation, And Street Views

Street and market-data items are dated outside views. The canonical business read remains the filed knowledge lane.

Official coverage

Twenty-seven listed covering firms

Quanta's analyst-coverage page lists firms including Baird, BofA, Cantor, Citi, Evercore, Goldman, Jefferies, JPMorgan, Mizuho, Truist, UBS, Vertical, and Wolfe.

Dashboard use: coverage breadth, not a company-endorsed rating or target. Quanta IR analyst coverage
StockAnalysis forecast

$761.35 average target

Checked 2026-06-22: 30 analysts polled by S&P Global, Buy consensus, $420 low, $901 high, and a $740.14 June 22 close.

Dashboard use: target dispersion around a stock that has already moved sharply. StockAnalysis PWR forecast
Recent analyst actions

Targets clustered around high execution expectations

StockAnalysis listed Truist Buy maintained on 2026-06-17, Bernstein Hold at $725 on 2026-06-11, Bank of America Buy at $800 on 2026-06-02, Oppenheimer Buy at $800 on 2026-05-28, and Cantor Buy target raised to $901 on 2026-05-11.

Dashboard use: the post-Q1 debate is upside remaining after the rerating. Latest forecasts
Short interest

Lower than April lane snapshot

MarketBeat checked 2026-06-22 showed 3.45M shares short, 2.3% of float, and 3.3 days to cover for the May 29, 2026 settlement date.

Dashboard use: short interest is not the main explanation for the 2026 move. MarketBeat PWR short interest
Valuation frame

Premium infrastructure-growth multiple

The lane's May 22 snapshot showed a roughly 71% YTD return and a reported forward P/E near 53x, while market-data providers were inconsistent.

Dashboard use: treat exact multiples as provisional until peer and market-data work is rebuilt. Knowledge lane valuation frame
Scenario Board

Scenario Assessment And Sensitivities

The scenarios are about conversion quality: backlog, margins, DSO, FCF, debt, and acquisitions.

Base

Electric and large-load backlog continue converting into revenue and adjusted EBITDA while DSO and FCF stay consistent with FY2026 guidance.

Upside

Grid and large-load awards broaden, NiSource economics become clearer, margins hold under cost pressure, and FCF conversion keeps pace with EBITDA growth.

Downside

Revenue stays high but fixed-price pressure, project slippage, weaker collections, unfavorable refinancing, or M&A issues reduce margin, FCF, and valuation support.

Trigger Stack

Monitoring Triggers

These are business evidence checks. Chart overlays remain in the shared overlay rules, outside this page.

Q2 results

Backlog conversion and quality

Confirm Electric backlog grows or stays high with stable MSA and non-fixed-price disclosure.

Warn if new awards shift toward lower-margin or more working-capital-heavy terms.

Margin

Segment margin and cost pressure

Confirm segment margins support raised adjusted EBITDA guidance.

Warn if fuel, freight, labor, metals, equipment, tariffs, or estimate changes pressure margins.

Cash conversion

DSO, assets, and FCF

Confirm DSO stays controlled and FCF remains inside or above guidance.

Warn if DSO rises above the five-year average or contract assets grow faster than revenue without collection evidence.

Debt path

October 2026 term loan

Confirm repayment or refinancing terms preserve growth capex, acquisition capacity, and liquidity.

Warn if higher interest expense or tighter terms reduce capital-allocation flexibility.

M&A quality

Integration and controls

Confirm acquisitions add capability, revenue, margin, and ROIC without sustained corporate cost drag.

Warn on integration misses, impairments, contingent-consideration surprises, or unresolved controls gaps.

Risk Punch Cards

Risks, Invalidations, And Quality Flags

The active risks are execution quality, not simple demand absence: contract estimates, costs, cash, debt, valuation, and acquisition integration.

Contract execution
Basis

FY2025 fixed-price contract revenue share was 60.6%.

Warning

Project estimates, change orders, claims, or labor costs reduce margins.

Reduce concern

Segment margins hold while backlog converts and cost pass-through is visible.

Valuation sensitivity
Basis

May 22 lane snapshot showed a roughly 71% YTD return and forward P/E near 53x.

Warning

Ordinary backlog, margin, or FCF slippage can compress the multiple.

Reduce concern

Backlog conversion, FCF, and ROIC keep validating the grid and large-load setup.

Cash conversion
Basis

DSO improved to 61 days, but unbilled receivables were $1.26B.

Warning

Contract assets or unbilled receivables outgrow revenue without collection evidence.

Reduce concern

Operating cash flow and FCF track adjusted EBITDA and guidance.

Refinancing
Basis

$656.3M term loan matures in October 2026.

Warning

Refinancing terms raise interest expense or constrain growth investment.

Reduce concern

Repayment or refinancing preserves liquidity and capital-allocation flexibility.

M&A integration
Basis

Dynamic Systems consideration was $1.48B and eight 2025 acquisitions were excluded from the 2025 ICFR assessment.

Warning

Integration misses, impairments, control issues, or corporate cost deleverage appear.

Reduce concern

Acquisitions add capability and returns without sustained controls or ROIC drag.

Disclosure limits
Basis

NiSource project economics, timing, and risk sharing were incomplete in reviewed public sources.

Warning

Large-load headlines keep growing without margin, risk, or ROIC evidence.

Reduce concern

Project disclosures connect awards to timing, returns, risk transfer, and cash conversion.

Diagnostics

Diagnostics, Freshness, And Known Unknowns

Freshness is explicit because this page is a projection of a filed source lane, not a research refresh.

Freshness

No stale-source warning in the lane
Source run

Latest filed PWR source run generated 2026-05-24T23:40:44Z.

Market data

Lane market snapshot uses May 22, 2026 data; StockAnalysis and MarketBeat pages were checked June 22, 2026.

Web check

Official IR, 10-Q, 10-K, buyback release, analyst coverage, and outside-view pages were checked 2026-06-22.

Known unknowns

Evidence gaps
Backlog quality

Estimated MSA renewals and short-term non-fixed-price work make conversion partly opaque.

Peer valuation

Market-data providers were inconsistent and no full peer comp set was rebuilt.

Project economics

NiSource 3 GW timing, margin, risk sharing, and ROIC were not visible enough for a stronger conclusion.

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