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Can Quanta's Record Backlog Support Its 2027 Double-Digit EPS Growth?
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Key Takeaways
Quanta's record backlog surged 62.7% year over year to $63.73 billion, boosting project visibility.
Third-quarter adjusted EPS jumped to $6.06, prompting Quanta to raise its 2026 EPS guidance.
Workforce investments, fabrication capacity and rising power infrastructure demand support 2027 EPS growth.
Quanta Services, Inc. (PWR - Free Report) expects strong double-digit adjusted EPS growth in 2027, supported by a record backlog and rising demand for power and infrastructure projects. The key factor is whether Quanta can convert this growing project pipeline into revenues and earnings while maintaining execution efficiency.
Quanta’s total backlog reached $63.73 billion as of Sept. 30, 2026, up 62.7% year over year from $39.17 billion. The backlog also increased about $10 billion sequentially. Electric backlog rose to $51.89 billion from $32.64 billion a year earlier, while Underground and Infrastructure backlog increased to $11.85 billion from $6.53 billion. Growth across both segments provides greater visibility into future project activity. Demand for transmission infrastructure, power generation and technology-related projects further supports the pipeline.
Quanta’s third-quarter 2026 performance provides a stronger earnings base heading into 2027. Adjusted EPS increased to $6.06 from $3.33 a year earlier, while adjusted EBITDA rose 69% to $1.45 billion. The company also raised its 2026 adjusted EPS guidance to $17.90-$18.30 from $16.45-$16.95. These results and the higher guidance support the growth case, but sustaining a similar pace will depend on continued project execution and profitable conversion of backlog.
Quanta's 2027 growth expectation is further supported by investments in its workforce and operating capabilities. Training programs, fabrication capacity and a broader skilled workforce are expected to improve execution efficiency and support larger projects. With a record backlog and demand across several end markets, Quanta expects to deliver strong double-digit adjusted EPS growth in 2027.
Quanta vs. AECOM & Dycom: Competitive Landscape
Quanta is well positioned to benefit from rising investments in North American infrastructure, although it competes with established players like Dycom Industries, Inc. (DY - Free Report) and AECOM (ACM - Free Report) . All three companies have exposure to infrastructure development, but each serves a different part of the market.
AECOM provides engineering, design, consulting and program management services across transportation, water, environmental, energy and defense infrastructure. Growing investments in public infrastructure, data centers and defense projects support demand for its technical and project management expertise. Meanwhile, Dycom benefits from rising investments in digital connectivity. Fiber-to-the-home deployments, long-haul and middle-mile fiber networks, data center interconnects and structured cabling are creating opportunities for its communications and building systems businesses.
While AECOM supports infrastructure projects through engineering and program management, Dycom focuses on communications networks and related data center infrastructure. Quanta, in comparison, specializes in utility, high-voltage transmission and power generation projects. Its integrated execution capabilities, skilled workforce and ability to self-perform large-scale projects position the company to benefit from grid expansion and rising electricity demand. These distinct capabilities give all three companies exposure to long-term infrastructure investment, despite differences in project scope and end markets.
PWR Stock’s Price Performance & Valuation Trend
PWR stock has gained 47.2% over the year-to-date ("YTD") period, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 Index.
PWR Price Performance (YTD)
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 32.64, as evidenced by the chart below.
PWR Valuation (P/E F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWR
PWR’s earnings estimates for 2026 and 2027 are pinned at $17.00 and $19.73 per share, respectively, indicating an upward trend over the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 58.1% and 16.1%, respectively.
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Can Quanta's Record Backlog Support Its 2027 Double-Digit EPS Growth?
Key Takeaways
Quanta Services, Inc. (PWR - Free Report) expects strong double-digit adjusted EPS growth in 2027, supported by a record backlog and rising demand for power and infrastructure projects. The key factor is whether Quanta can convert this growing project pipeline into revenues and earnings while maintaining execution efficiency.
Quanta’s total backlog reached $63.73 billion as of Sept. 30, 2026, up 62.7% year over year from $39.17 billion. The backlog also increased about $10 billion sequentially. Electric backlog rose to $51.89 billion from $32.64 billion a year earlier, while Underground and Infrastructure backlog increased to $11.85 billion from $6.53 billion. Growth across both segments provides greater visibility into future project activity. Demand for transmission infrastructure, power generation and technology-related projects further supports the pipeline.
Quanta’s third-quarter 2026 performance provides a stronger earnings base heading into 2027. Adjusted EPS increased to $6.06 from $3.33 a year earlier, while adjusted EBITDA rose 69% to $1.45 billion. The company also raised its 2026 adjusted EPS guidance to $17.90-$18.30 from $16.45-$16.95. These results and the higher guidance support the growth case, but sustaining a similar pace will depend on continued project execution and profitable conversion of backlog.
Quanta's 2027 growth expectation is further supported by investments in its workforce and operating capabilities. Training programs, fabrication capacity and a broader skilled workforce are expected to improve execution efficiency and support larger projects. With a record backlog and demand across several end markets, Quanta expects to deliver strong double-digit adjusted EPS growth in 2027.
Quanta vs. AECOM & Dycom: Competitive Landscape
Quanta is well positioned to benefit from rising investments in North American infrastructure, although it competes with established players like Dycom Industries, Inc. (DY - Free Report) and AECOM (ACM - Free Report) . All three companies have exposure to infrastructure development, but each serves a different part of the market.
AECOM provides engineering, design, consulting and program management services across transportation, water, environmental, energy and defense infrastructure. Growing investments in public infrastructure, data centers and defense projects support demand for its technical and project management expertise. Meanwhile, Dycom benefits from rising investments in digital connectivity. Fiber-to-the-home deployments, long-haul and middle-mile fiber networks, data center interconnects and structured cabling are creating opportunities for its communications and building systems businesses.
While AECOM supports infrastructure projects through engineering and program management, Dycom focuses on communications networks and related data center infrastructure. Quanta, in comparison, specializes in utility, high-voltage transmission and power generation projects. Its integrated execution capabilities, skilled workforce and ability to self-perform large-scale projects position the company to benefit from grid expansion and rising electricity demand. These distinct capabilities give all three companies exposure to long-term infrastructure investment, despite differences in project scope and end markets.
PWR Stock’s Price Performance & Valuation Trend
PWR stock has gained 47.2% over the year-to-date ("YTD") period, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 Index.
PWR Price Performance (YTD)
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 32.64, as evidenced by the chart below.
PWR Valuation (P/E F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWR
PWR’s earnings estimates for 2026 and 2027 are pinned at $17.00 and $19.73 per share, respectively, indicating an upward trend over the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 58.1% and 16.1%, respectively.
Image Source: Zacks Investment Research
Quanta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.