PWR: Model Update

Research evidence excerpt

PWR: Model Update

INDUSTRIAL TECHNOLOGY

QUANTA SERVICES, INC. May 21, 2026

PWR - Valuation

Big, profitable and well-managed, PWR looks to us like the best-positioned company in its sector, but also fairly valued. It is particularly impressive that

PWR is managing to grow as quickly as it is while still posting EBITDA and FCF margins that are at the high end of the range for comparable companies.

Size has its benefits, but we also think that the performance speaks to the quality of PWR’s management team.

As interest in infrastructure construction and services has grown, PWR has been the preferred stock to buy, which makes sense given its competitive

position, in our view. The result is valuation that is at a premium to the sector on both EBITDA and FCF multiples for both 2026E and 2027E, as the figure

below illustrates.

Even adjusting for PWR’s higher revenue growth, our analysis suggests that PWR is fairly valued at current levels, considering its ~30x EBITDA multiple

on our revised 2026 estimates. We expect stock price performance in the sector to continue to broaden out. Our rating for PWR stands at Neutral.

Figure 3. PWR: Valuation Analysis

Company Ticker 2026E 2027E 2028E 2025-28E

EV/EBITDA EV/EBITDA EV/EBITDA Revenue CAGR

Comfort Systems USA, Inc. FIX 35.1x 30.1x 28.3x 13.4%

Dycom Industries, Inc. DY 14.2x 12.4x 11.0x 16.3%

EMCOR Group, Inc. EME 19.7x 18.4x 16.9x 6.6%

MasTec, Inc. MTZ 21.8x 17.4x 13.9x 17.2%

MYR Group Inc. MYRG 24.9x 22.0x 18.7x 9.6%

Primoris Services Corporation PRIM 12.1x 9.8x 9.2x 2.4%

Average 21.3x 18.3x 16.3x 10.9%

Quanta Services, Inc. PWR 30.1x 26.8x 24.3x 14.5%

Price/FCF Price/FCF Price/FCF Revenue CAGR

Comfort Systems USA, Inc. FIX 47.0x 41.5x 65.5x 13.4%

Dycom Industries, Inc. DY 25.2x 21.4x 19.5x 16.3%

EMCOR Group, Inc.