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HOUSTON - Quanta Services, Inc. (NYSE:PWR) announced Thursday the expansion of its total solutions power generation platform and a significant contract with NiSource, Inc. to deliver approximately 3 gigawatts of power generation capacity for a large load customer. The announcement comes as Quanta’s stock trades near its 52-week high of $459.36, having surged over 53% in the past six months according to InvestingPro data.
The expanded platform builds upon Quanta’s experience in constructing more than 80,000 megawatts of power generation, including renewable energy and battery storage solutions. The company has invested in personnel with engineering, procurement, and construction expertise in gas power generation and other industrial facilities.
NiSource has engaged Quanta to design, procure, and construct generation and infrastructure resources for a major customer. The project will be executed through a joint venture between Quanta and Zachry Group, with Quanta holding a 50% ownership stake. Zachry will lead engineering, project management, and commissioning for the combined cycle gas turbines, while Quanta will provide field leadership and workforce management.
"Many of Quanta’s existing customers are experiencing significant increases in power demand, are expanding their power generation portfolios and are coming to Quanta for solutions due to our longstanding, collaborative relationships with them," said Duke Austin, Quanta’s President and Chief Executive Officer.
Lloyd Yates, NiSource’s President and CEO, stated the collaboration would support economic development while protecting customers from infrastructure investment costs.
The project’s scope and estimation phase has begun, with execution expected to start in 2026 following regulatory approvals. Power generation capacity will be delivered in phases, with full completion anticipated by 2032.
The agreement represents a significant expansion of Quanta’s capabilities in addressing growing electricity demand driven by data centers, manufacturing, and power grid expansion, according to the company’s press release statement. With a market capitalization of $66.86 billion and revenue growth of 18.26% in the last twelve months, Quanta maintains a "GREAT" overall financial health score despite trading at a high P/E ratio of 70.19. InvestingPro offers a comprehensive research report on Quanta Services, one of 1,400+ US equities covered with in-depth analysis and valuation metrics.
In other recent news, Quanta Services has been the focus of several analyst updates. Mizuho has raised its price target for Quanta Services to $415, citing increased estimates in EBITDA and infrastructure momentum, while maintaining a Neutral rating. Stifel also raised its price target to $475, emphasizing Quanta’s strong position in transmission, distribution, and renewables installations, and maintained a Buy rating. Jefferies upgraded Quanta Services from Hold to Buy, increasing its price target to $469, based on anticipated growth in data centers, renewables, transmission, and pipelines. Additionally, Mizuho had previously initiated coverage with a Neutral rating and a $360 price target, highlighting Quanta’s superior margins and consistent performance in exceeding EBITDA and EPS estimates since 2019. Texas Capital Securities initiated coverage with a Buy rating and set a price target of $437, recognizing Quanta as a leading provider in the electric power market. These updates reflect a positive outlook from analysts on Quanta Services’ market position and growth potential across various sectors.
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