PWRNEUTRAL

Gross Margin

14.1%

Higher than 27% of Industrials sector peers

Updated 272h ago

Sector Performance

27th percentile

PWR

14.1%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

Quanta Services’ current gross margin of 14.1% means that for every dollar of revenue, the company keeps 14.1 cents after paying direct costs like labor and materials.

This is well below the Industrials sector median of 28.9%, placing the company at the 30th percentile among its peers — indicating weaker cost efficiency relative to most competitors. The year-over-year change is not available, but the quarter-over-quarter change is a +11.9% improvement, from 12.6% to 14.1% over the last two reported periods. The combination of a low absolute margin combined with a rising quarter-over-quarter trend suggests that while Quanta’s profitability on sales is currently below average, the recent improvement may reduce near-term downside risk. This metric partially contradicts the overall NEUTRAL verdict, as the low margin level reinforces caution, but the positive QoQ shift provides a modest counterbalance. Overall, the gross margin aligns with a NEUTRAL stance — it is neither strong enough to signal a buy opportunity nor deteriorating enough to warrant a sell.

Frequently Asked Questions

What does the Gross Margin tell investors about PWR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PWR's Gross Margin compare to its sector?

PWR's Gross Margin of 14.1% compares to a Industrials sector median of 29.0%, placing it in the 27th percentile.

Who are PWR's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), AAL (26.0%), CARR (23.3%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.