Quanta Services (PWR) investor relations material

Strategic vision and market positioning

• Emphasizes a culture of absolute performance, self-performing over 80% of business, and a focus on craft labor and safety investments exceeding $100 million annually.

• Addressable markets have doubled since 2022, now estimated at $2.4 trillion, with significant growth in technology and utility sectors through 2030.

• Integrated solutions and vertical supply chain investments ($500-$700 million) provide certainty, competitive differentiation, and nearly double HV transformer capacity by 2028.

• Deep, long-term customer relationships enable programmatic, multi-year contracts and repeat business, exemplified by NiSource and SunZia projects.

• M&A strategy targets family businesses and strategic CORE acquisitions, with over $10 billion deployed in acquisitions over the past decade.

Financial guidance and growth targets

• Organic revenue CAGR targeted at 7%-10% through 2030, with Adjusted EBITDA margins expanding to 10%-11%.

• Adjusted EPS expected to grow at a 15%-20% CAGR, reaching $21.60-$26.75 by 2030, with potential upside if active market opportunities materialize.

• Return on invested capital projected to expand to 12%-15% by 2030, with double-digit ROIC achieved from 2022-2025.

• Free cash flow conversion ratio targeted at 55%-60%, generating $10-$12 billion in free cash flow by 2030.

• Maintains an investment-grade balance sheet, targeting leverage of 1.5x-2x, with flexibility for strategic acquisitions and double-digit annual dividend growth through 2030.

Operational excellence and workforce development

• Largest craft-skilled workforce in North America, with 28,000 journeymen and foremen, 69,000 employees, and apprenticeship enrollments up 120%.

• Training infrastructure includes 10 campuses, $250 million invested over 10 years, and innovative programs for cross-training and rapid scaling.

• Integrated fabrication, AI-driven solutions, and technology applications enhance efficiency, margin expansion, and labor deployment flexibility.

• Safety investments, such as $40 million in AEDs, have saved over 50 lives and contributed to a 62% reduction in serious incident rates.

• Strong union and non-union relationships, mental health initiatives, and hybrid apprenticeship programs enable flexible labor deployment and workforce well-being.