Quanta Services, Inc. · NYSE:PWR
Quanta Services — Investor Presentation (May 2025)
55 slides from Quanta Services's investor presentation, May 12, 2025
Slide 1: Investor Presentation May 12, 2025
I N V E STO R P R E S E N TAT I O N May 12, 2025 OUR PEOPLE POWER MODERN LIFE
Slide 2: Notice to Investors
. . . NOTICE TO INVESTORS This presentation (and oral statements regarding the subject matter of this presentation) includes forward-looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-lookin
Slide 3: Key Takeaways
. . . KEY TAKEAWAYS Quanta is a leading specialty infrastructure solutions provider for the utility, 1 power generation, technology, communications and energy industries Our differentiated, self-perform infrastructure solutions position Quanta as a 2 trusted partner with an unmatched execution platf
Slide 4: Consistent Track Record of Compounding Profitable Growth
. . . CONSISTENT TRACK RECORD OF COMPOUNDING PROFITABLE GROWTH Adjusted EPS (1)(2) ~25% 2015-2025E CAGR Adjusted EBITDA (1)(2) ~18% 2015-2025E CAGR Revenue (1) ~14% 2015-2025E CAGR Adjusted EBITDA margin (1)(2) 330bps 2015-2025E expansion ROIC(2) 760bps 2015-2024 expansion (1) (2) Based on the midpo
Slide 5: Who Is Quanta Services?
. . . WHO IS QUANTA SERVICES? Leading Specialty Infrastructure Solutions Provider Largest and preferred employer of craft skilled Growing Total Addressable labor in the industry. We Industry leading Market (TAM) driven typically self-perform safety and Recognized market leader in by megatrends with
Slide 6: Focused on Long-Term Corporate Responsibility and Sustainability
. . . QUANTA IS FOCUSED ON LONG-TERM CORPORATE RESPONSIBILITY AND SUSTAINABILITY PEOPLE PLANET PRINCIPLES • Safety drives everything we • Facilitating efficient and • Board-level oversight of do – our employees are safe delivery of clean ESG-related matters our #1 asset energy and the migration towa
Slide 7: Key Strategies for Sustainable Success
. . . KEY STRATEGIES FOR SUSTAINABLE SUCCESS Improve Expand Solutions Disciplined & Value Grow Base Develop Craft Margins and Offerings Creating Capital Business Skilled Labor Deployment Returns +$17B Consolidated Acquired a national inside Acquired domestic +$150M strategic Working capital to suppo
Slide 8: How We Are Driving Long-Term, Sustainable Value Creation
. . . HOW WE ARE DRIVING LONG-TERM, SUSTAINABLE VALUE CREATION Key Strategies Improve Expand Solutions Disciplined & Value Grow Base Develop Craft Creating Capital Business Margins and Offerings Skilled Labor Returns Deployment Portfolio Approach ◄ Target Double Digit Adjusted EBITDA ◄ 5% to 8% Orga
Slide 9: High-Quality and Diverse Customer Base with Critical Assets
. . . HIGH-QUALITY AND DIVERSE CUSTOMER BASE WITH CRITICAL ASSETS We Provide Services Across Our Reporting Segments to Many of These Customers SELECT CUSTOMERS – Many of Our Customer Relationships Span Decades LOW CUSTOMER CONCENTRATION Electric Power Largest customer accounted for Renewable Generat
Slide 10: Collaborative and Comprehensive Solutions
. . . COLLABORATIVE AND COMPREHENSIVE SOLUTIONS RANGE OF OUTCOMES INTERMEDIARY/ • Higher total cost to • Greater risk for sub-optimal Customer EXTERNAL COMPANY customer (margin on a project outcome – change TRADITIONAL identifies need for Customer would often choose margin) order disputes and remedi
Slide 11: Consistent and Growing Spend from Top Customers
. . . CONSISTENT AND GROWING SPEND FROM TOP CUSTOMERS Driving Repeatable, Consistent Revenue Through Deep and Collaborative Customer Relationships BASE BUSINESS: Top 20 Customers Based on 2024 Top 20 Utility Customers Based on 2024 Base Business Revenues(1) Base Business Revenues • Repeatable, susta
Slide 12: Convergence of Key Growth Drivers and Megatrends
. . . Convergence of Key Growth Drivers and Megatrends Quanta Uniquely Positioned With Critical Path Capabilities at Scale From End-to-End, Providing Multiple Paths for Long Duration Profitable Growth Utility Inside Electric / Pipeline, Convergence Across Transmission & Power Generation Our Customer
Slide 13: Aging Utility Workforce Contributes to Outsourcing Trend
. . . AGING UTILITY WORKFORCE CONTRIBUTES TO OUTSOURCING TREND Additive Long-Term Tailwind Outsourcing is expected to increase across electric and gas utilities over the next five years • Tight labor market for lineman and other skilled employees • Quanta is focused on recruiting, training and devel
Slide 14: Industry-Leading Training Is a Competitive Differentiator
. . . INDUSTRY-LEADING TRAINING IS A COMPETITIVE DIFFERENTIATOR Dedicated Training Facilities Northwest Lineman College (NLC) – Postsecondary education institution that has provided world-class electric training curriculum for +25 years. Added communications and gas distribution curriculum Quanta Ad
Slide 15: Construction-Led Infrastructure Solutions Through Portfolio Approach
. . . CONSTRUCTION-LED INFRASTRUCTURE SOLUTIONS THROUGH PORTFOLIO APPROACH Revenues - 2025E(1) 81% Electric Infrastructure Solutions 19% Underground Utility & Infrastructure Solutions Gas Pipeline Downstream Energized Distribution Integrity Industrial Transmission Distribution Substation Services Se
Slide 16: Supplemental Revenue Disclosure
. . . Supplemental Revenue Disclosure % of 2024 Quanta 2025E Revenue Key Markets Outlook Commentary Revenue Growth • Load growth and infrastructure modernization driving base business growth; electric grid greater than gas utility. Larger high- Electric Grid & Gas Utility ~50% ~5%-10% voltage transm
Slide 17: Revenue Mix – Strategically Focused, Operationally Diverse
. . . REVENUE MIX – STRATEGICALLY FOCUSED, OPERATIONALLY DIVERSE ~83% of 2024 revenues from utility, power, technology, manufacturing and communications customers, which provide visible and growing multi-year capital programs 2024 Consolidated Revenues = $ 23.7 Billion 2024 Revenues By Segment 2024
Slide 18: Portfolio Approach and Diversity of Revenue Helps Mitigate Risk
. . . PORTFOLIO APPROACH AND DIVERSITY OF REVENUE HELPS MITIGATE RISK Superior Risk Profile Fiscal Year 2024(1) Estimated Revenue by Geography Estimated Revenue by Project Type Estimated Revenue by Contract Type Large Unit Price Cost Plus Project 27% & Other Repair, Replace New 17% United States & U
Slide 19: Electric Infrastructure Solutions Segment
. . . Electric Infrastructure Solutions Segment 19
Slide 20: Evolving Utility Model Is Driving Spending
. . . EVOLVING UTILITY MODEL IS DRIVING SPENDING Utility Industry is a Large, Growing and Visible Addressable Market U.S. Investor-Owned Electric Company CapEx $186.4 B $36 +$156 B 5% 5% $60 Quanta Core Quanta Addressable Core Annual Market 65% Solutions $28 +$156B +$117 B $2 $10 Quanta Focused $51
Slide 21: Electric Load Growth Is Accelerating
. . . ELECTRIC LOAD GROWTH IS ACCELERATING Load Growth Forecasts Have Increased Massively, Increasing the Need for Electric Grid Investment • Load growth forecasts from grid operators and utilities have been upwardly revised by nearly five-fold in the past two years, which reflects an end to a two-d
Slide 22: Technology Infrastructure Solutions
. . . TECHNOLOGY INFRASTRUCTURE SOLUTIONS The Combination of CEI and Quanta Provide Critical Path Data Center Electrical Solutions Representative Mission-Critical Facility Project Scope: ✓ CEI broadens Quanta’s core craft-skill led technical capabilities with its leading inside electrical and power
Slide 23: Significant Grid Modernization and Hardening
. . . SIGNIFICANT GRID MODERNIZATION AND HARDENING Widespread Need for Grid Modernization and Hardening – Maintenance, Upgrade, Repair and Replacement Representative Utility - Projected Transmission Circuit Miles Replaced/Upgraded and Total Projected Investment ($ in millions) (1) Age • From 2022 -
Slide 24: Electrification
. . . ELECTRIFICATION Movement Towards A Reduced-Carbon Economy Will Require Significant Power Grid Investment Electrification Adoption Rates(1) • Over the coming decades, developed economies are expected to increasingly utilize electricity to meet carbon reduction/neutrality goals • Vehicle electri
Slide 25: Renewable Energy Solutions
. . . RENEWABLE ENERGY SOLUTIONS Significant Upgrading of Transmission and Grid Infrastructure Required to Support Renewable Energy Growth U.S. Solar and Wind Electricity Generation The C Three Group Forecasted Utility Scale Renewables Est. Incremental Transmission Requirements Annual Energy Outlook
Slide 26: Differentiated Renewable Energy Solutions
. . . DIFFERENTIATED RENEWABLE ENERGY SOLUTIONS Market Leading Position and Extensive Track Record Across Renewable Technologies and Transmission • Strong alignment to energy transition trends within the wind, solar, energy storage and high-voltage transmission interconnect markets, which are expect
Slide 27: Puerto Rico Electric T&D System Operation & Maintenance
. . . PUERTO RICO ELECTRIC T&D SYSTEM OPERATION & MAINTENANCE LUMA Energy – A Transformative Opportunity • LUMA Energy, LLC (LUMA), 50% owned by Quanta and 50% owned by ATCO, was selected in June 2020 for this historic opportunity – the transformation and modernization of the Puerto Rico electric tr
Slide 28: Communications Infrastructure Services
. . . COMMUNICATIONS INFRASTRUCTURE SERVICES Compelling and Complementary Growth Opportunity Leading Communications Infrastructure Solutions Provider Multi-Year Drivers / Opportunities • Primarily organic growth and greenfield expansion, targeting double- digit margin profile • Select strategic acqu
Slide 29: Underground Utility & Infrastructure Solutions
. . . UNDERGROUND UTILITY & INFRASTRUCTURE SOLUTIONS 29
Slide 30: Underground Utility & Infrastructure Solutions: Carbon-Reduction Opportunities
. . . UNDERGROUND UTILITY & INFRASTRUCTURE SOLUTIONS Well Positioned and Actively Pursuing Energy Industry Carbon-Reduction Opportunities System Modernization Gas Utilities and the Traditional Energy Methane Emission Reduction GAS Industry are in the Early Stages of Hydrogen Blending UTILITIES Adopt
Slide 31: Underground Utility & Infrastructure Solutions: Strategic Focus on Base Business
. . . UNDERGROUND UTILITY & INFRASTRUCTURE SOLUTIONS Strategic Focus on Base Business Strategy Has Increased Focus Services Expectations Consistency 2025E Underground Utility & Pipeline Downstream Infrastructure Solutions Gas LDC(1) Integrity Industrial Services • Created a diverse portfolio of Segm
Slide 32: Underground Utility & Infrastructure Solutions: Strategic Focus on Base Business
. . . UNDERGROUND UTILITY & INFRASTRUCTURE SOLUTIONS Strategic Focus on Base Business Gas LDC Services Pipeline Integrity Services Industrial Services • As of 2022, the U.S. natural gas distribution • There are ~634,000 miles of hazardous liquids, • Plant spending and upgrades have similar system co
Slide 33: Balance Sheet, Cash Flow and Capital Deployment
. . . BALANCE SHEET, CASH FLOW AND CAPITAL DEPLOYMENT 33
Slide 34: Balance Sheet Strength Provides Flexibility
. . . BALANCE SHEET STRENGTH PROVIDES FLEXIBILITY Strong Financial Foundation ($ in millions) 12/31/2022 12/31/2023 12/31/2024 03/31/2024 Cash and Equivalents $429 $1,290 $742 $521 Other Debt 70 126 176 177 (March 31, 2025) 0.95% Sr. Notes due Oct. 2024 500 500 -- -- Net Debt / 4.75% Sr. Notes due A
Slide 35: Cash Flow Is Counter Cyclical
. . . CASH FLOW IS COUNTER CYCLICAL Change in Revenue vs Free Cash Flow(1)/Adjusted EBITDA(1) For the Years Ending December 31, 35% 90% • Quanta’s cash flow generation is typically counter to revenue 30% Guidance 80% growth, primarily due to working capital demands and to a lesser 25% Midpoint(3) ex
Slide 36: Debt Maturities and Capital Structure
. . . DEBT MATURITIES AND CAPITAL STRUCTURE Investment Grade With Attractive Capital Structure Debt Maturities(1) • Well positioned balance sheet with long-term capital Amounts shown in millions structure at attractive interest rates 2.90% Senior Notes • Cash flow should provide the means to efficie
Slide 37: Flexible and Strategic Capital Allocation
. . . FLEXIBLE AND STRATEGIC CAPITAL ALLOCATION Opportunistic and Disciplined Approach 2020 – 2024 Sources & Uses of Cash (Amounts in millions) Capital Deployment Preference $9,571 $8,995 2.1% $186 Investments • Working Capital 2.3% Organic Growth $206 Dividends • Capital Expenditures 4.9% $442 Stoc
Slide 38: Financial Goals for Growing Long-Term Stockholder Value
. . . FINANCIAL GOALS FOR GROWING LONG-TERM STOCKHOLDER VALUE Multi-Year Profitable Growth Return of Capital Strategic Acquisitions Double-Digit ROIC Sustainable Cash Flow Generation EPS Growth > Revenue Growth Improving Adjusted EBITDA Margins 5% to 10%+ Revenue CAGR Actual Performance Through the
Slide 39: Cupertino Electric, Inc. 2024 Acquisition
. . . CUPERTINO ELECTRIC, INC. 2024 Acquisition For additional information regarding Quanta’s acquisition of CEI, see Quanta’s Investor Relations website https://investors.quantaservices.com/company-information/presentations 39
Slide 40: Strategic Rationale
. . . STRATEGIC RATIONALE Premier Electrical Solutions Provider to Industries Driving Load Growth and the Energy Transition Combination creates comprehensive end-to-end electrical infrastructure solution from electron 1 generation to transmission to consumption • CEI provides a leading nationwide el
Slide 41: Cupertino Electric Overview
. . . CUPERTINO ELECTRIC OVERVIEW Focused On Attractive Growth Markets Levered to Technology, Energy Transition and Infrastructure Technology Renewable Energy Infrastructure & Commercial Segment ~45% of Revenues ~40% of Revenues ~15% of Revenues Data Center Modular Solar Battery Storage Infrastructu
Slide 42: Complementary Infrastructure Solutions
. . . COMPLEMENTARY INFRASTRUCTURE SOLUTIONS Comprehensive End-to-End Electrical Infrastructure Solution from Electron Generation to Transmission to Consumption Generation Transmission Consumption Utility Utility Utility Scale Front Scale Scale Battery End Transmission Energized Inside Testing & Sol
Slide 43: 2023 Sustainability Report
. . . 2023 Sustainability Report • • • 43
Slide 44: Our Sustainability Strategy
. . . Our Sustainability Strategy • 44
Slide 45: Our Climate Goals
. . . Our Climate Goals OUR FOOTPRINT OUR ENERGY TRANSITION IMPACT OUR FOOTPRINT 45
Slide 46: 2023 Sustainability Report Highlights
. . . 2023 Sustainability Report Highlights SAFETY TRAINING OUR FOOTPRINT 46
Slide 47: Connect With Quanta Services
. . . Connect With Quanta Services Social Media Channels @QuantaIR @Quanta_Services Quanta Services, Inc. Investor Contact Corporate Office Kip Rupp, CFA, IRC 2727 North Loop West Vice President – Investor Relations Houston, TX 77008 713-341-7260 713-629-7600 Sean Eastman www.quantaservices.com Dire
Slide 48: Appendix: Reconciliation Tables and Cautionary Statement
. . . APPENDIX RECONCILIATION TABLES AND CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION 48
Slide 49: Reconciliation of Non-GAAP Financial Measures
QUANTASERVICES.COM Reconciliation of Non-GAAP Financial Measures Adjusted Net Income and Adjusted Diluted Earnings Per Share Attributable to Common Stock crn ee et tren cr en conc sna cei ae a a at ee rr Pes ‘extn a (Sees a oreo Gee wenn ow Sonate oes 28 cant wr ae ge ein pn ti i Se ‘ce anarfespa he
Slide 50: Reconciliation of EBITDA and Adjusted EBITDA
QUANTASERVICES.COM RECONCILIATION OF EBITDA AND ADJUSTED EBITDA For the Years Ended December 31, {in thousands) (naudited) As of May 1, 2025, Estimated Guidance Range TIDE 2010 aout m5 2016 aor 201s 2019 2020 2021 202 2023 2008 Tow Mapoint Tah Net income rom continuing operations atibutable te commo
Slide 51: Reconciliation of Free Cash Flow
QUANTASERVICES.COM RECONCILIATION OF FREE CASH FLOW Free cath fow ic dfined ac not cath provided by oporating actvtos lass not capital xpandtures. Net capital exponditure¢ le defined as capital expenditures less proceeds ‘rom sale of property and equipment and from incurance eetlomantsrolated to Fro
Slide 52: Reconciliation of NOPAT, Average Invested Capital and ROIC
QUANTASERVICES.COM Reconciliation of Net operating profit after tax, Average invested capital and Return on Invested Capital 2014 2015 2023 2024 Net income fram continuing operations attributable to common stock (as defined by GAAP) $120,286 $904,824 Interest expense, net of interest income 6,531 17
Slide 53: Cautionary Statement About Forward-Looking Statements and Information
. . . CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS AND INFORMATION This presentation (and oral statements regarding the subject matter of this presentation) contains forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Lit
Slide 54: Cautionary Statement About Forward-Looking Statements and Information
. . . CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS AND INFORMATION • Trends and growth opportunities in relevant markets, including Quanta's ability to obtain future project awards; • Delays, deferrals, reductions in scope or cancellations of anticipated, pending or existing projects as a r
Slide 55: Cautionary Statement About Forward-Looking Statements and Information
. . . CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS AND INFORMATION • The potential that Quanta's participation in joint ventures or similar structures exposes Quanta to liability or harm to its reputation as a result of acts or omissions by partners; • The inability or refusal of customers