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Can Record Backlog of $39.2B Improve Revenue Visibility for Quanta?
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Key Takeaways
PWR posted a record $39.2B backlog, up from $33.96B a year ago, signaling strong demand across end markets.
Backlog growth is diversified, reducing dependence on any single project and smoothing revenue timing.
Regulated utility and power projects follow defined phases, giving PWR clearer visibility into revenues.
Quanta Services, Inc. (PWR - Free Report) is seeing improved demand visibility as utility and power infrastructure spending remains steady. Recent project activity points to a more consistent flow of work, supported by long-term planning and regulated investment. This environment helps support steadier execution and a clearer view of future activity without relying on short-term market shifts.
The company continues to secure work tied to essential grid and power delivery needs. These projects typically follow defined planning and execution phases, which support more predictable schedules. As projects progress through these stages, the mix of committed work helps provide clearer insight into how revenues may develop over time.
PWR’s backlog reached a record $39.2 billion compared with $33.96 billion a year earlier, reflecting solid demand across end markets. The increase points to a steady pace of project awards and a broader base of committed work. Backlog growth has been spread across multiple areas rather than concentrated in one category, which helps reduce reliance on any single project type and supports smoother revenue timing.
Overall, the record backlog strengthens revenue visibility for Quanta. While execution timing remains an important factor, the scale and diversity of committed work suggest clearer revenue sightlines as infrastructure investment continues to move forward.
Peer Backlogs Reinforce Revenue Visibility
Rising infrastructure and non-residential construction investment is also strengthening revenue visibility for Quanta’s peers, particularly EMCOR Group, Inc. (EME - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .
EMCOR is benefiting from a strong project pipeline, rising remaining performance obligations and consistent execution. In the third quarter of 2025, the company reported record RPOs of $12.61 billion, up from $9.79 billion a year earlier, reflecting broad-based growth across Network & Communications, healthcare, manufacturing, and water and wastewater markets. Continued focus on prefabrication, digital construction tools and selective acquisitions is supporting margin strength and revenue visibility into 2026 and beyond.
Sterling is also enhancing forward visibility through exposure to large, multi-phase projects. In the third quarter of 2025, the company reported a signed backlog of roughly $2.6 billion, up 64% year over year, with total potential work exceeding $4 billion when including future phases. Its E-Infrastructure focus supports durable, long-term activity.
PWR’s Price Performance, Valuation & Estimates
Shares of Quanta have gained 17.3% in the past six months compared with the Zacks Engineering - R and D Services industry’s growth of 4.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 36.95X, up from the industry’s 25.08X.
Image Source: Zacks Investment Research
Quanta’s earnings estimate for 2026 has risen in the past 30 days. This indicates expected earnings increase of 17.2% year over year on projected revenue growth of 11.4%.
Image: Bigstock
Can Record Backlog of $39.2B Improve Revenue Visibility for Quanta?
Key Takeaways
Quanta Services, Inc. (PWR - Free Report) is seeing improved demand visibility as utility and power infrastructure spending remains steady. Recent project activity points to a more consistent flow of work, supported by long-term planning and regulated investment. This environment helps support steadier execution and a clearer view of future activity without relying on short-term market shifts.
The company continues to secure work tied to essential grid and power delivery needs. These projects typically follow defined planning and execution phases, which support more predictable schedules. As projects progress through these stages, the mix of committed work helps provide clearer insight into how revenues may develop over time.
PWR’s backlog reached a record $39.2 billion compared with $33.96 billion a year earlier, reflecting solid demand across end markets. The increase points to a steady pace of project awards and a broader base of committed work. Backlog growth has been spread across multiple areas rather than concentrated in one category, which helps reduce reliance on any single project type and supports smoother revenue timing.
Overall, the record backlog strengthens revenue visibility for Quanta. While execution timing remains an important factor, the scale and diversity of committed work suggest clearer revenue sightlines as infrastructure investment continues to move forward.
Peer Backlogs Reinforce Revenue Visibility
Rising infrastructure and non-residential construction investment is also strengthening revenue visibility for Quanta’s peers, particularly EMCOR Group, Inc. (EME - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .
EMCOR is benefiting from a strong project pipeline, rising remaining performance obligations and consistent execution. In the third quarter of 2025, the company reported record RPOs of $12.61 billion, up from $9.79 billion a year earlier, reflecting broad-based growth across Network & Communications, healthcare, manufacturing, and water and wastewater markets. Continued focus on prefabrication, digital construction tools and selective acquisitions is supporting margin strength and revenue visibility into 2026 and beyond.
Sterling is also enhancing forward visibility through exposure to large, multi-phase projects. In the third quarter of 2025, the company reported a signed backlog of roughly $2.6 billion, up 64% year over year, with total potential work exceeding $4 billion when including future phases. Its E-Infrastructure focus supports durable, long-term activity.
PWR’s Price Performance, Valuation & Estimates
Shares of Quanta have gained 17.3% in the past six months compared with the Zacks Engineering - R and D Services industry’s growth of 4.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 36.95X, up from the industry’s 25.08X.
Image Source: Zacks Investment Research
Quanta’s earnings estimate for 2026 has risen in the past 30 days. This indicates expected earnings increase of 17.2% year over year on projected revenue growth of 11.4%.
Image Source: Zacks Investment Research
PWR’s Zacks Rank
Quanta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.