Baron Fund Initiates Quanta Services Position as Shares Surge 80%
Quanta Services shares closed at $523.96 on February 11, delivering a 17.05% one-month gain and an 80.14% rise over the past year on its $78.1 billion market capitalization. Baron Durable Advantage Fund initiated a new position citing Quanta’s 14% revenue and 18% EPS CAGR over 15 years and 15% annual EPS growth through 2029.
1. Baron Fund Initiates New Position
In its fourth-quarter 2025 letter, Baron Durable Advantage Fund revealed a new stake in Quanta Services, highlighting its world-class infrastructure services and consistent shareholder returns. The fund’s $2.6% Q4 return matched the S&P 500’s 2.7%, and PWR’s inclusion reflects confidence in its long-term growth.
2. Recent Stock Performance
Quanta Services closed at $523.96 on February 11 and recorded a 17.05% gain over one month. Shares have climbed 80.14% in the past twelve months, underpinned by accelerating utility capex and expanding infrastructure demand across energy, renewables, and communications markets.
3. Proven Growth Track Record
Quanta delivered 14% revenue CAGR and 18% EPS CAGR over the last 15 years despite flat power demand. This performance stems from market share gains, scale advantages, and a 68,000-strong skilled labor force that ensures timely, on-budget project delivery.
4. Future Outlook and Secular Tailwinds
Management targets 15% annual EPS growth through at least 2029, supported by grid modernization, electrification, AI data-center load growth, industrial reshoring, and communications infrastructure investments. Accelerating utility capex cycles and energy transition projects underpin a multi-year growth runway.