Quanta Services, Inc. (PWR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Quanta Services, Inc.

Updated on October 30, 2026 · accounts published on October 29, 2026

Reading of October 29, 2026: A fast-growing industrial with thin margins and strong cash conversion

Quanta Services trades at a P/E of 72.8 over the last 12 months, 116 % above its ten-year median of 33.7. Revenue is up 20 % year on year.

• Is Quanta Services expensive or cheap? Its P/E of 72.8 is 116 % above its ten-year median and higher than in 94 % of the last decade.
• How is the business doing? Operating margin rose to 6.8 % over the last 12 months, above its 5.3 % average of 2014-2025, with revenue up 20 %.
• How strong is the balance sheet? Net debt was 2.4× EBITDA in fiscal 2025, under the 3× healthy line for industrials, and the Altman Z of 4.2 is in the safe zone.
• What to expect from the next earnings? Next results on February 25, 2027, with analysts expecting EPS of $4.79; it has beaten estimates eight quarters running.
• Does it turn margin into cash, and at what multiple of the cycle does it trade? Free cash flow reached 158 % of net profit in fiscal 2025 against an 85 % healthy mark, yet the P/E of 72.8 tops its 39.0 decade average.

Is Quanta Services expensive or cheap?

Over the last 12 months Quanta Services trades at a P/E of 72.8, against a ten-year median of 33.7 and a decade range of 9.1 to 91.4. The median for its sector is 25.8, so the stock carries a 182 % premium to peers. EV/EBITDA of 28.1× tells the same story next to its seven-year average of 17.9×. The free cash flow yield is 2.5 % and the earnings yield 1.5 %. Shares are up 42 % in 12 months and still 19 % below their 52-week high of $785.24: the price already assumes many years of strong growth.

How is the business doing?

Revenue grew 19.8 % over the last 12 months, and revenue per share compounded at 18.7 % a year over fiscal 2020-2025, three times the 6 % that counts as healthy for an industrial. Profitability is improving from a low base: the operating margin of 6.8 % over the last 12 months beats the 5.3 % average of 2014-2025, though net margin is just 4.5 %. EPS rose 12.8 %, slower than sales. ROIC of 9.6 % edges past the sector median of 9.1 %, but it has not topped 10 % in any of the last ten fiscal years. ROE stands at 17.7 %.

How strong is the balance sheet?

Leverage is moderate. Debt/equity is 0.11 over the last 12 months, and net debt in fiscal 2025 was $41.14 per share, about 6.5 % of the current share price. At 2.4× EBITDA it stays below the 3× ceiling considered healthy for industrials, and an Altman Z of 4.2 sits well inside the safe zone above 2.99. Liquidity is tighter, with a current ratio of 1.16. Shareholder returns are token: the dividend yields 0.1 %, takes only 6 % of fiscal 2025 profit and has risen for six consecutive years, leaving most of the cash in the business.

What to expect from the next earnings?

All 36 analysts covering Quanta Services rate it buy or hold: 27 buy, 9 hold and none sell. On October 29, 2026 it reported EPS of $6.06 against $5.02 expected, a 20.7 % beat, and it has topped estimates in each of the last eight quarters. Even so, the 2026 EPS consensus barely moved in 30 days, from $16.74 to $16.75 across 19 analysts, and revenue forecasts were also flat. For the quarter due on February 25, 2027, the bar is EPS of $4.79. With a P/E of 72.8, another beat matters more than usual.

Does it turn margin into cash, and at what multiple of the cycle does it trade?

Industrials are semi-cyclical, so this sector is judged on backlog, operating margin and the conversion of profit into free cash flow, because orders and margins swing with the cycle while cash is harder to dress up. Quanta Services converts well: free cash flow was 157.6 % of net profit in fiscal 2025, against an 85 % healthy mark. The weak spots are a 5.8 % operating margin in fiscal 2025, far from the 12 % benchmark, ROIC below 15 % and capex of 2.1 % of revenue, under the 4-8 % range. Through the cycle, both P/E and EV/EBITDA sit well above their own averages.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.