Yesterday GE Vernova did the same before pulling back. To repeat our investing thesis:
"There might be something to this electricity stuff"
I really dislike the 140 page books written to justify taking a position in a name. As an extremely wealthy man once said to me: "Look, what I want to know is: What's the upside, what's the downside, what's the time frame?"
So today, no news, just a dawning realization by the market that whether or not the AI buildout will continue, the electrical grid must be updated.
From MarketBeat, April 1:
Quanta Services Investor Day: CEO Pegs $2.4T TAM, Targets $21.60-$26.75 EPS by 2030
Key Points
- Management said Quanta’s addressable market has expanded to about $2.4 trillion, positioning the company beyond utility infrastructure into large-load technology and generation work while emphasizing its ~85% self‑perform model and expanded supply‑chain investments (a stated $500M–$700M program and doubled transformer capacity) to drive execution certainty.
- Through 2030 Quanta targets an organic revenue CAGR of 7%–10% (to $44B–$49B), an adjusted EBITDA margin of 10%–11%, ROIC of 12%–15%, and adjusted EPS of $21.60–$26.75 (a 15%–20% CAGR from 2025), with expected FCF conversion of 55%–60% and $10B–$12B of free cash flow over the period.
- Executives highlighted workforce and safety as foundational, noting over $100M annual spend on workforce development, apprenticeship enrollments up >120%, deployment of AEDs (>$40M invested) credited with >50 lives saved, and veterans comprising over 20% of pre‑apprentice students....
....MUCH MORE
Here's the Investor Day slide deck (87 page PDF)
Possibly also of interest February 19, 2026: "Quanta Services Q4 2025 Earnings Call Transcript - February 19, 2026 (PWR)"
As noted over two years ago (January 2024): "There’s a Shortage of Electrical Wires, Transformers. That’s Good for These Stocks."
And March 25, 2026:Over the next twenty years the entire U.S. electrical grid will have to be replaced.
Fifteen years ago when President Obama and Vice President Biden were talking Recovery Summer and "shovel ready jobs" the go-to stock for transmission infrastructure was Quanta Services (PWR). Unfortunately the
Grid: "Wait times for Hitachi Energy transformers hit more than 30 months" - UPDATED
UPDATE - More On Electrical Transformer Shortages, This One's Big: "Micron's $24 billion Singapore fab could need 500 transformers...."
With this outro:
For what it's worth both GE Vernova and Quanta Services manufacture transformers.
If interested see also:
May 20 2025: "Elon Musk says AI could run into power capacity issues by middle of next year"
*****
.....Previously on electrical transformers:
March 2025 - "This Essential Element of the Power Grid Is in Critically Short Supply"
Elon Musk has been prophesying this for the last couple years. And here we are....March 2025 - "The Device Throttling the World’s Electrified Future"
Previously, in general:
How AI Is Sparking a Change in Power Generation
"There’s a Shortage of Electrical Wires, Transformers. That’s Good for These Stocks."
And on Elon
Elon Musk's Latest Mission: Rev Up the Electricity Industry
One Year On Fom His Prediction: "Elon Musk Wants More Power"
"Elon Musk: AI will run out of electricity and transformers in 2025"
There are more previous posts but astute reader gets the point: We watch transformers so you don't have to.
In between those two posts are dozens more, if interested the 'search blog' box is upper left.
PWR $588.37 up $12.13 (+2.11%)
Here's the 5-year chart from TradingView:
Up 528% over the sixty months. For shorter holding periods the stock is up 142% in the last twelve months and is up 39% year-to-date.
