Quanta Services acquires Dynamic Systems for $1.35 billion

HOUSTON - Quanta Services, Inc. (NYSE:PWR), a $61 billion market cap construction and engineering leader, completed the acquisition of Dynamic Systems (DSI), LLC for approximately $1.35 billion, the company announced Thursday. According to InvestingPro data, Quanta currently trades near its 52-week high of $424.94, reflecting strong investor confidence in the company’s expansion strategy.

The transaction consists of $1.15 billion in cash and $200 million in Quanta common stock, with a potential additional earnout payment of up to $216 million based on future performance targets. The company’s strong financial position, evidenced by its GREAT Financial Health score on InvestingPro, supports this strategic investment. InvestingPro subscribers have access to 16 additional key insights about Quanta’s financial health and growth prospects.

Dynamic Systems, headquartered in Austin, Texas, provides turnkey mechanical, plumbing and process infrastructure solutions to technology, semiconductor, healthcare and industrial customers across the United States. Founded in 1988, the company employs approximately 2,400 people. This acquisition aligns with Quanta’s impressive growth trajectory, which has delivered a 55% return to investors over the past year.

"Dynamic Systems will enhance Quanta’s comprehensive infrastructure solutions offering that can facilitate innovative speed-to-market solutions for the load center market," said Duke Austin, Quanta’s President and Chief Executive Officer, in a press release statement.

For the remainder of 2025, Quanta estimates Dynamic Systems will contribute revenues of $425 million to $475 million and adjusted EBITDA of $45 million to $55 million. For 2026, the company projects contributions of $1.25 billion to $1.45 billion in revenues and $125 million to $175 million in adjusted EBITDA.

Dynamic Systems’ existing management team will remain in place, with Russell Rehmann continuing as Chief Executive Officer and Jeff Vogt as President. The company’s financial results will be reflected in Quanta’s Underground Utility and Infrastructure Solutions segment.

Quanta funded the cash portion of the transaction through its commercial paper program and existing senior credit facility. The acquisition closed on July 25, 2025.

J.P. Morgan Securities LLC served as exclusive financial advisor to Dynamic Systems for the transaction.

In other recent news, Quanta Services has been the focus of several analyst updates. Moody’s has affirmed Quanta’s Baa3 senior unsecured ratings and Prime-3 commercial paper rating, while revising the company’s outlook to positive from stable. This change reflects Quanta’s strong credit metrics and strategic acquisitions that have diversified its portfolio. Meanwhile, Seaport Global Securities initiated coverage on Quanta with a Neutral rating, projecting revenue and earnings growth through 2027. BMO Capital downgraded Quanta Services from Outperform to Market Perform, raising its price target to $400, citing valuation concerns rather than business fundamentals. Bernstein also downgraded Quanta from Outperform to Market Perform due to concerns over a slowdown in renewable energy development, which impacts 30% of Quanta’s sales. On the other hand, BofA Securities raised its price target for Quanta to $440 and maintained a Buy rating, highlighting the company’s potential to benefit from increased demand for utility infrastructure solutions. These developments offer investors varied perspectives on Quanta’s future performance.

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