Quanta Services (PWR) investor relations material

Strategic positioning and market approach

• Focus on providing integrated solutions by leveraging a skilled, flexible workforce and vertical supply chain investments, including transformer and pole facilities.

• Emphasis on labor fungibility enables rapid adaptation to market shifts and customer needs across sectors like utilities, technology, and renewables.

• Acquisitions target established companies with synergies in emerging markets such as AI, data centers, and semiconductors, supporting multi-year growth.

• Customer-driven strategy, with ongoing refinement based on global market trends, supply chain constraints, and regulatory factors.

• Significant "white space" remains for new solutions, with management focused on continuous reinvention and cultural motivation.

Growth, workforce, and acquisitions

• Organic workforce growth is 5-8% annually, with acquisitions accelerating growth, sometimes exceeding 50% in the first year.

• Training resources and trade schools enable rapid scaling and integration of acquired companies, expanding their market reach.

• Labor fungibility allows redeployment across projects, supporting resilience and multi-sector expansion.

• Recent acquisitions like Dynamic Systems enhance prefabrication capabilities and margin profiles, with plans to further expand these segments.

Contracting models and vertical integration

• Self-performs 80-85% of work, with vertical integration in supply chain (e.g., transformers) enhancing flexibility and returns.

• Ability to act as general contractor or subcontractor, adapting to client needs and project requirements.

• Supply chain arrangements are increasingly offered to external customers, broadening market opportunities.