Quanta Services, Inc. (PWR) is seeing renewable and storage projects emerge as an important support for backlog growth as utilities accelerate investment in flexible and reliable power infrastructure. As the U.S. power market evolves, utilities are increasingly relying on renewables and battery storage to meet load growth, manage intermittency and strengthen grid stability. This shift is translating into steady infrastructure demand for the company.
Renewable and storage activity remained strong in the third quarter of 2025, supported by continued utility spending. The company indicated that renewable projects are progressing steadily from early-stage notices into executable work. Battery storage demand also stayed firm, reflecting the need to balance generation and manage peak loads. These trends helped reinforce backlog quality and visibility rather than relying on short-duration or speculative projects.
As of the third quarter of 2025, PWR’s backlog reached a record $39.2 billion, up from $33.96 billion a year earlier, highlighting solid demand visibility across end markets. Renewable and storage projects formed a meaningful part of this backlog expansion, adding scale while maintaining balance in the overall project mix. Remaining performance obligations rose to $21 billion, providing additional insight into committed future work scheduled for execution.
Renewable and storage projects also benefit from repeat utility relationships, which support consistency and reduce execution risk. The company continues to emphasize disciplined bidding and execution, helping protect margins as volumes increase.
Overall, renewable and storage projects appear to be supporting backlog strength. Stable utility demand, steady project conversion and committed work suggest these areas should remain a supportive driver of backlog in the near term.
How Quanta’s Strategy Compares With Key Infrastructure Competitors
Among companies positioned in adjacent markets, MasTec, Inc. (MTZ) and Fluor Corporation (FLR) stand out as relevant competitors to Quanta’s expanding Total Solutions framework. MasTec has been strengthening presence in power delivery, renewable generation and communications infrastructure, giving it exposure to similar demand drivers such as grid modernization and data-center load growth. However, MasTec remains more diversified across oil and gas and communications, which can dilute the focus and integration advantages PWR is building through its unified platform.
Fluor, on the other hand, competes more directly on large-scale EPC projects, including power generation and industrial infrastructure. While Fluor brings deep engineering capabilities, its project mix historically carries higher execution risk and less self-performed craft labor, which may limit the ability to offer the kind of end-to-end certainty that PWR highlights across the Total Solutions Platform. As project scopes continue consolidating, Quanta’s integrated model could present a stronger value proposition than peers operating through more traditional EPC structures.
PWR’s Price Performance, Valuation & Estimates
Shares of Quanta have gained 8.7% in the past six months compared with the Zacks Engineering - R and D Services industry’s growth of 2.1%.
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From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 33.25X, up from the industry’s 23.77X.
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Quanta’s earnings estimate for 2026 has increased in the past 60 days. This indicates expected earnings growth of 16.9% year over year on projected revenue growth of 11%.
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PWR’s Zacks Rank
Quanta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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