Chad Dillard of Bernstein said in a recent program on CNBC that Quanta Services (NYSE:PWR) is an "800-pound gorilla" in high-voltage transmission lines. He was responding to a CNBC host who asked him to discuss "AI plays in disguise" beyond the major names everyone is aware of.
"I think we need to focus on what the bottlenecks are, right? It's power and labor," Dillard said. "On the power side, like you just said, you know, Caterpillar, it's an obvious one, power generation. But there's also another way to improve power, and that's by raising the voltage. And I'm talking about high voltage transmission lines. I'm talking about raising the voltage in data centers. ( Quanta Services) They're an 800-lb gorilla basically in the room."
Quanta Services (NYSE:PWR) can benefit from the coming wave of AI-related power demand because it's one of the few companies big enough to do the actual building when utilities spend money to expand and upgrade the grid. Quanta makes money by constructing the power lines, substations, and grid infrastructure the US needs, work that puts it right in the middle of the buildout.
In the recent quarter, revenue jumped about 40% year over year, and the company raised its full-year guidance for revenue, earnings per share, and cash flow.
Bulls also point to Quanta's recent acquisitions: Phalcon, Enerfab, Percheron, and PSD. Quanta expects these deals to add roughly 3 to 4% to its revenue in 2026. The bull case is that these purchases add skilled workers, fabrication capacity, and permitting support, giving Quanta more control over the bottlenecks that slow projects down.
#power #recent #revenue
"I think we need to focus on what the bottlenecks are, right? It's power and labor," Dillard said. "On the power side, like you just said, you know, Caterpillar, it's an obvious one, power generation. But there's also another way to improve power, and that's by raising the voltage. And I'm talking about high voltage transmission lines. I'm talking about raising the voltage in data centers. ( Quanta Services) They're an 800-lb gorilla basically in the room."
Quanta Services (NYSE:PWR) can benefit from the coming wave of AI-related power demand because it's one of the few companies big enough to do the actual building when utilities spend money to expand and upgrade the grid. Quanta makes money by constructing the power lines, substations, and grid infrastructure the US needs, work that puts it right in the middle of the buildout.
In the recent quarter, revenue jumped about 40% year over year, and the company raised its full-year guidance for revenue, earnings per share, and cash flow.
Bulls also point to Quanta's recent acquisitions: Phalcon, Enerfab, Percheron, and PSD. Quanta expects these deals to add roughly 3 to 4% to its revenue in 2026. The bull case is that these purchases add skilled workers, fabrication capacity, and permitting support, giving Quanta more control over the bottlenecks that slow projects down.
#power #recent #revenue
2 days ago
