QUANTA SERVICES INC (PWR)

Quanta Services Inc. is a company that helps build and maintain important infrastructure, like power lines, gas pipelines, communication networks, and renewable energy systems (such as wind and solar farms). They operate in the U.S., Canada, Australia, and other regions, providing services such as designing, constructing, repairing, and upgrading these essential systems.

The company relies on skilled workers and advanced technology to get the job done, using a fleet of specialized vehicles and equipment. Quanta works with many major utility, energy, and technology companies, building strong long-term relationships. They typically secure contracts to provide ongoing maintenance, emergency repairs, and large-scale construction projects.

What sets Quanta apart is its focus on safety, innovation, and a strong financial foundation. Their strategy is to continue expanding their services, adopting new technologies, and maintaining a flexible, entrepreneurial mindset to take advantage of growth opportunities in the industries they serve.

Quanta has a large and diverse customer base, including many of the leading companies in the industries they serve. Their largest customer accounted for only 6% of their consolidated revenues and their ten largest customers accounted for 31% of their consolidated revenues. Here’s a list of some of their customers that you may have heard of.

• American Electric Power Company, Inc.

• Avangrid, Inc.

• Berkshire Hathaway, Inc.

• CenterPoint Energy, Inc.

• Clearway Renew LLC

• Comcast Corporation

• Duke Energy Corporation

• EDF Renewables

• Engie IR Holdings LLC

• Entergy Corporation

• Enterprise Products Partners L.P.

• Exelon Corporation

• FirstEnergy Corp.

• Invenergy LLC

• Lower Colorado River Authority

• National Grid plc

• NextEra Energy, Inc.

• Pattern Energy

• PG&E Corporation

• Puget Sound Energy, Inc.

• RWE AG

• Santos Limited

• Sempra Energy

• The Southern Company

• TC Energy Corporation

• Vesper Energy Development LLC

• Xcel Energy Inc.

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Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Electric Power Services: Quanta designs and provides construction services to wireline and wireless communications companies, cable multi-system operators and other customers within the communications industry (including services in connection with 5G wireless deployment). Also, Quanta provides installation of “smart grid” technologies on electric power networks. In addition, Quanta plans and installs electrical systems for buildings like data centers, office buildings, factories, and other large facilities. This includes setting up the wiring, power supply, and electrical infrastructure needed to keep these buildings running efficiently and safely.

• Renewable Energy Services: Quanta helps design and build the electrical systems that connect renewable energy sources, like solar farms and wind turbines, to the power grid. This includes constructing substations (which help manage and distribute electricity) and power lines that transport energy from these facilities to homes and businesses. They also set up battery storage systems to store extra energy for later use.

• Underground and Infrastructure Services: Quanta provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products. Quanta helps gas utility companies by designing, building, upgrading, and maintaining natural gas pipelines and systems. This includes everything from planning and installing new gas lines to repairing and keeping existing ones in good condition to ensure safe and reliable gas delivery to homes and businesses.

Good Time to Buy?

At the time of writing, PWR is down 26% since it’s January 2025 52 Week all time high. Year after year Quanta Services has been executing financially. Taking a look at their Financial Snapshot above, both revenue and net income is consistently growing. That performance along with its strong customer base can’t be ignored. For those reasons, this company deserves a spot on your watchlist or better yet, an investment!

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