Largest specialty infrastructure contractor in North America. Builds power grids, substations, data center electrical systems, and renewable energy facilities. AGI Score: 9/10. | Analysis date: 2026-03-13
Quanta scored 9/10 on AGI impact. Every data center needs power infrastructure -- transmission lines, substations, switchgear, transformers. Quanta builds all of this. The company is the largest electrical infrastructure contractor in the US and is seeing record backlogs driven by data center construction, grid modernization, and renewable energy buildout. At $84B market cap and 82x P/E, the market has already discovered this thesis.
Quanta Services provides infrastructure services for electric and gas utilities, power generation, data centers, communications, and pipeline industries. Two segments: Electric Power Infrastructure Solutions (transmission, distribution, substations, renewable energy, data center electrical) and Underground Utility & Infrastructure Solutions (gas distribution, pipeline, water/sewer). ~53,000 employees across North America.
Scale advantage -- largest workforce of specialized linemen and electricians in the US. Labor is the bottleneck in infrastructure construction, and training takes years. Deep relationships with utilities built over decades. Master service agreements (MSAs) provide recurring revenue. Specialized equipment fleet worth billions.
AGI buildout requires massive electrical infrastructure: new transmission lines to connect data centers to the grid, substations to step down voltage, switchgear installation, renewable energy connections, and data center electrical fit-out. Quanta does ALL of this. The Infrastructure Investment and Jobs Act (IIJA) provides additional tailwind. Backlog has grown from $16B (2020) to $33B+ (2025).
| Item | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Total Assets | $8.4B | $12.9B | $13.5B | $16.2B | $18.7B | $24.9B |
| PP&E (Net) | $1.6B | $1.9B | $2.0B | $2.3B | $2.7B | $3.5B |
| Cash | $185M | $229M | $429M | $1.3B | $742M | $440M |
| Goodwill | $2.1B | $3.5B | $3.6B | $4.0B | $5.3B | $7.3B |
| Intangible Assets | $436M | $1.8B | $1.5B | $1.4B | $1.9B | $2.9B |
| Total Liabilities | $8.4B | $12.9B | $13.5B | $16.2B | $18.7B | $24.9B |
| Long-Term Debt | $1.2B | $3.7B | $3.7B | $3.7B | $4.1B | $5.2B |
| Stockholders' Equity | $4.3B | $5.1B | $5.4B | $6.3B | $7.3B | $9.0B |
| Tangible Book Value | $1.8B | -$213M | $353M | $875M | $153M | -$1.2B |
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Revenue | $11.2B | $13.0B | $17.1B | $20.9B | $23.7B | $28.5B |
| Operating Income | $611M | $664M | $872M | $1.1B | $1.3B | $1.6B |
| Net Income | $452M | $492M | $512M | $751M | $927M | $1.0B |
| EPS (Diluted) | $3.07 | $3.34 | $3.32 | $5.00 | $6.03 | $6.80 |
| Operating Cash Flow | $1.1B | $582M | $1.1B | $1.6B | $2.1B | $2.2B |
| CapEx | $260M | $386M | $428M | $435M | $604M | $609M |
| Dividends Per Share | $0.21 | $0.25 | $0.29 | $0.33 | $0.10 | $0.11 |
| Free Cash Flow | $856M | $197M | $703M | $1.1B | $1.5B | $1.6B |
| Year | Shares Outstanding | Change |
|---|---|---|
| FY2020 | 141,380,000 | |
| FY2021 | 140,824,000 | -0.4% |
| FY2022 | 143,488,000 | +1.9% |
| FY2023 | 145,222,000 | +1.2% |
| FY2024 | 146,929,000 | +1.2% |
| FY2025 | 148,790,000 | +1.3% |
Current market cap: $83.6B. For 10x, need: $836.4B.
Current price: $559.02. 10x price: $5590.20.
At $84B, 10x = $840B. Unlikely for a construction company -- these are inherently low-margin businesses (operating margins ~8%). Revenue would need to grow from ~$23B to $100B+. More realistic: 2-3x as backlog converts to revenue. Entry for strong returns: $300-350 range (P/E ~30-35x on normalized earnings).
Construction is cyclical and labor-intensive. Margins are thin -- a bad project can wipe out months of profit. Worker safety incidents create liability. Interest rate sensitivity (infrastructure projects are debt-financed). If data center buildout slows, backlog could shrink. Integration risk from acquisitions.
Position in 52-week range: 95% from the bottom. -3.1% from 52-week high.
| Metric | Value | Notes |
|---|---|---|
| Market Cap | $83.6B | Infrastructure Construction |
| Trailing P/E | 82.2x | Earnings yield: 1.2% |
| Forward P/E | 36.3x | |
| Price / Book | 9.35x | |
| Price / Tangible Book | N/A | Tangible book/share: $-8.04 |
| EV/Revenue | 3.1x | |
| FCF Yield | 1.9% | FCF: $1.6B |
| Dividend Yield | 8.0% | Rate: $0.44/share |
| ROE | 12.7% |
Category: Infrastructure Construction | AGI Score: 9/10 | Confidence: high
AGI Reasoning: Quanta is a prime AGI beneficiary owning scarce physical infrastructure expertise and capacity that becomes MORE valuable as AGI scales. Data center electricity demand is exploding - AGI compute requires massive power infrastructure (transmission, substations, generation) that takes years to build. Quanta explicitly positions itself to provide turnkey solutions for data centers including critical-path electrical systems, high-voltage interconnections, and generation infrastructure. This is a pure bottleneck play: AI training and inference cannot scale without physical electricity delivery infrastructure, and Quanta has the scale, licenses, and skilled labor to build it. Low disruption risk - AGI cannot replace physical construction expertise in the near term.
What we need to go deeper on:
Data sources: SEC EDGAR XBRL (CIK 1050915), yfinance, 10-K filing. Analysis date: 2026-03-13.