Quanta Services Is Maintained at Market Perform by Bernstein

Quanta currently trades at $436.93 and has been a dream stock for shareholders. It’s returned 535% since December 2020, blowing past the S&P 500’s 82.9% gain. The company has also beaten the index over the past six months as its stock price is up 21.8% thanks to its solid quarterly results.

Is now still a good time to buy PWR? Or are investors being too optimistic? Find out in our full research report, it’s free for active Edge members.

Why Is PWR a Good Business?

A construction engineering services company, Quanta provides infrastructure solutions to a variety of sectors, including energy and communications.

1. Surging Backlog Locks In Future Sales

We can better understand Energy Products and Services companies by analyzing their backlog. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Quanta’s future revenue streams.

Quanta’s backlog punched in at $39.17 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 16.7%. This performance was fantastic and shows the company has a robust sales pipeline because it is accumulating more orders than it can fulfill. Its growth also suggests that customers are committing to Quanta for the long term, enhancing the business’s predictability.

2. Projected Revenue Growth Is Remarkable

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.

Over the next 12 months, sell-side analysts expect Quanta’s revenue to rise by 12.8%. While this projection is below its 18% annualized growth rate for the past two years, it is particularly noteworthy for a company of its scale and implies the market sees success for its products and services.

3. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Quanta’s EPS grew at an astounding 24.4% compounded annual growth rate over the last five years, higher than its 19% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Final Judgment

These are just a few reasons why we think Quanta is a high-quality business, and with its shares beating the market recently, the stock trades at 36.3× forward P/E (or $436.93 per share). Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the energy products and services stocks, including Quanta and its peers.

Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 4 energy products and services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.

Best Q3: Quanta

A construction engineering services company, Quanta provides infrastructure solutions to a variety of sectors, including energy and communications.

Quanta reported revenues of $7.63 billion, up 17.5% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ adjusted operating income estimates.

"Quanta delivered another quarter of strong results, achieving double-digit growth in revenue, adjusted EBITDA and adjusted EPS compared to the prior year, alongside record backlog of $39.2 billion, which reflects accelerating demand in our Electric segment, robust activity across our end markets and momentum for 2026. These results demonstrate the power of our portfolio, the strength of our craft-skilled workforce and our ability to provide certainty through world-class execution for our customers as they modernize and expand critical infrastructure," said Duke Austin, President and Chief Executive Officer of Quanta Services.

Quanta achieved the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $452.40.

Read why we think that Quanta is one of the best energy products and services stocks, our full report is free.

Ameresco

Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco provides energy and renewable energy solutions for various sectors.

Ameresco reported revenues of $526 million, up 5% year on year, outperforming analysts’ expectations by 1%. The business had a strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.9% since reporting. It currently trades at $35.26.

Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free for active Edge members.

FTAI Infrastructure

Spun off from FTAI Aviation in 2021, FTAI Infrastructure invests in and operates infrastructure and related assets across the transportation and energy sectors.

FTAI Infrastructure reported revenues of $140.6 million, up 68.7% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

FTAI Infrastructure delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 16.6% since the results and currently trades at $4.26.

Read our full analysis of FTAI Infrastructure’s results here.

MDU Resources

Founded to provide electricity to towns in Minnesota, MDU Resources provides products and services in the utilities and construction materials industries.

MDU Resources reported revenues of $315 million, up 8.7% year on year. This print beat analysts’ expectations by 3.3%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.

MDU Resources delivered the biggest analyst estimates beat among its peers. The stock is up 5% since reporting and currently trades at $20.68.

Read our full, actionable report on MDU Resources here, it’s free for active Edge members.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Ameresco and the best and worst performers in the energy products and services industry.

Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 4 energy products and services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.8% since the latest earnings results.

Ameresco

Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco provides energy and renewable energy solutions for various sectors.

Ameresco reported revenues of $526 million, up 5% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

CEO George Sakellaris commented, “Third quarter results were excellent and kept us on track to hit our full year 2025 guidance ranges, while also further strengthening our long- term revenue visibility. We achieved solid year-on-year growth across our key business segments, reflecting increased demand and improved execution. Adjusted EBITDA growth outpaced revenue growth by a considerable margin, demonstrating the operating leverage we believe is inherent in the Ameresco business model. Demand for our energy infrastructure solutions remained robust, and we see our unique ability to offer flexible financial options to our customers as a strong selling point.

Ameresco delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 16.8% since reporting and currently trades at $33.29.

Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Quanta

A construction engineering services company, Quanta provides infrastructure solutions to a variety of sectors, including energy and communications.

Quanta reported revenues of $7.63 billion, up 17.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with a solid beat of analysts’ backlog estimates and an impressive beat of analysts’ adjusted operating income estimates.

Quanta delivered the highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $450.66.

Is now the time to buy Quanta? Access our full analysis of the earnings results here, it’s free for active Edge members.

FTAI Infrastructure

Spun off from FTAI Aviation in 2021, FTAI Infrastructure invests in and operates infrastructure and related assets across the transportation and energy sectors.

FTAI Infrastructure reported revenues of $140.6 million, up 68.7% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

FTAI Infrastructure delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 18.8% since the results and currently trades at $4.15.

Read our full analysis of FTAI Infrastructure’s results here.

MDU Resources

Founded to provide electricity to towns in Minnesota, MDU Resources provides products and services in the utilities and construction materials industries.

MDU Resources reported revenues of $315 million, up 8.7% year on year. This print topped analysts’ expectations by 3.3%. However, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.

MDU Resources achieved the biggest analyst estimates beat among its peers. The stock is up 7.9% since reporting and currently trades at $21.25.

Read our full, actionable report on MDU Resources here, it’s free for active Edge members.