Quanta Services : Earnings Presentation Q2 2020

2 Q 2 0

E a r n i n g s C a l l P r e s e n t a t i o n

A u g u s t 6 , 2 0 2 0

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-looking statements include any statements reflecting Quanta's expectations, intentions, strategies, assumptions, plans or beliefs about future events or performance or that do not solely relate to historical or current facts. Forward-looking statements involve certain risks, uncertainties and assumptions that are difficult to predict or beyond Quanta's control, and actual results may differ materially from those expected, implied or forecasted by our forward-looking statements due to inaccurate assumptions and known and unknown risk and uncertainties. For additional information concerning some of the risks, uncertainties, assumptions and other factors that could affect our forward-looking statements, please refer to Quanta's Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Report on Form 10-Qs for the quarters ended March 31, 2020 and June 30, 2020 (when filed) and other documents filed with the Securities and Exchange Commission, which are available on our website (www.quantaservices.com), as well as the risks, uncertainties and assumptions identified in this presentation. Investors and analysts should not place undue reliance on Quanta's forward-looking statements, which are current only as of the date of this presentation. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this presentation or otherwise, and Quanta expressly disclaims any written or oral statements made by any third party regarding the subject matter of this presentation.

Certain information may be provided in this presentation that includes financial measurements that are not required by, or presented in accordance with, generally accepted accounting principles (GAAP). These non-GAAP measures should not be considered as alternatives to GAAP measures, such as net income and cash flow provided by operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. For a reconciliation to the most directly comparable GAAP financial measures, please refer to the accompanying reconciliation tables.

The information contained in this document has not been audited by any independent auditor. This presentation is prepared as a convenience for securities analysts and investors and may be useful as a reference tool. Quanta may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors.

2

Call Participants and Agenda

Duke Austin

President and Chief Executive Officer

Derrick Jensen

Chief Financial Officer

Kip Rupp

Vice President, Investor Relations

• Introduction and Forward Looking Statements Disclaimer
• Second Quarter Results, Operational and Strategic Commentary
• Financial Review and Discussion
• Outlook
• Q&A

3

2Q20 Highlights

• Solid 2Q20 results that exceeded expectations
• • Electric Power and Pipeline & Industrial segment margins
  • Adjusted EBITDA
  • Earnings Per Share
  • Cash flow
• Strong balance sheet and ample liquidity
• Results demonstrate the resiliency of our business and the operational excellence of our people
• Executing well during extraordinary health and economic conditions that are challenging everyone

	Adj.
	EBITDA(1)
Operating
Income	$214 MM

$113 MM

Revenue

$2.5 B

Solid

Results

Adj.

EPS(1)

$0.74

Cash from

Operations

$497 MM

S O L I D 2 Q 2 0 R E S U L T S D E M O N S T R AT E B U S I N E S S R E S I L I E N C Y A N D O P E R AT I O N A L E X C E L L E N C E

4	(1) Refer to appendix for a reconciliation of this non-GAAP measure to its most directly comparable GAAP measure.

Update to Quanta's COVID-19 Response and Impacts

Quanta Strengths

• Solid 1H20 results
• Successful execution of five key objectives
• Resilient business model
• Strong balance sheet & liquidity
• Operational diversity
• Est. ~80% to 90% of 2020E revenues from resilient utility, communications and certain P&I services
• Self perform ~85% of revenues
• World-classcraftsmen

Employees &

Customers

• Remain focused on health and safety of our employees
• Executing on pandemic and business continuity plans
• No meaningful impact on health or availability of workforce or key personnel as a result of COVID-19
• Continued communication and collaboration with customers
• Believe Quanta can emerge in even better competitive position with successful performance during the crisis

Proactive Expense & Capex Management

• Proactively implemented cost management initiatives, which benefitted 2Q20 results
• Proactively implemented capex management initiatives
• Operating leadership doing a commendable job managing businesses in uncertain and challenging environment

2Q20 Impacts

• As expected, April was most challenging month operationally
• Operating conditions generally improved through balance of quarter
• Certain operations in Pipeline & Industrial segment materially impacted
• Latin American (LATAM) operations have been hardest hit by the pandemic
• Continue to expedite and make progress on exit of LATAM operations

R E S I L I E N T B U S I N E S S M O D E L , S T R O N G F I N A N C I A L P R O F I L E , P R O A C T I V E M A N A G E M E N T

5

Electric Power Infrastructure Services

• Strong execution across operations and service lines coupled with successful cost management drove solid profitability
• Demand for our services remains strong
• Utilities continue to actively deploy capital into their systems
• • Grid modernization, storm and fire hardening, renewables integration, reliability, etc.
  • Most utilities have confirmed 2020 and multi-year transmission and distribution capital plans
• Incremental opportunities driven by renewable generation
• • Onshore and offshore wind and solar
  • Demand for substation, transmission interconnects, battery storage and larger transmission projects

Top 25 Quanta Utility

Customer Spend

CAGR: 2000-2018

($ in billions)

8%

CAPEX

5%

OPEX

2019E U.S. Utility Capex	Quanta Core Solutions
= $136 B (1)	= $61 B

$61 B

87%

			13%
Quanta Core	Quanta Est.		Opportunity
Addressable Market
		2019 Share

L A R G E , V I S I B L E , C O N S I S T E N T A N D G R O W I N G M A R K E T W I T H A M P L E O P P O R T U N I T Y

6	(1) Sources: Edison Electric Institute and Quanta estimates.

Puerto Rico Electric T&D System Operation & Maintenance Agreement

• LUMA Energy, LLC (LUMA), 50% owned by Quanta and 50% owned by ATCO, has been selected for this historic opportunity - the transformation and modernization of the Puerto Rico electric transmission and distribution (T&D) system, in order to provide significant benefits to the people of Puerto Rico through an Operation and Maintenance Agreement (O&M Agreement) with the Puerto Rico Electric Power Authority (PREPA) and the Puerto Rico Public-Private Partnership Authority (P3)
• LUMA is a purpose-built company that leverages the strengths of Quanta, ATCO and IEM, including world-class utility operations; craft-skilled labor training and management; and federal funds procurement, management and deployment
• LUMA's O&M Agreement is consistent with Quanta's long-term strategy
• • Long-term,contracted agreement that is expected to provide a visible, recurring and resilient cash flow and earnings stream. LUMA has begun a front-end transition period and expects to achieve full transition to the O&M Agreement in mid-2021
  • LUMA earns a fixed fee for service plus opportunity to earn annual incentive fees based on achievement of performance metrics. PREPA retains ownership of the electric T&D system and LUMA is not required to make capital investments in the electric T&D system
  • Electric T&D system operating costs and capital expenditures are pass-through and paid from pre-funded service accounts
• Quanta believes there is opportunity for it to compete for work associated with Puerto Rico's grid modernization efforts that are separate from its ownership interest in LUMA
• Successful collaboration with a customer to deliver unique infrastructure solutions that can serve as a blueprint for future opportunities

T R A N S F O R M AT I V E O P P O R T U N I T Y F O R T H E P E O P L E O F P U E R T O R I C O A N D Q U A N T A

7

Communications Infrastructure Services (within Electric Power Segment)

• Continue to perform well with ample growth opportunities in the near and longer term
• COVID-19 /work-from-home /shelter-in-place has highlighted the need for bandwidth intensive, reliable, secure, fast communications and data services
• Projects largely moving forward with limited COVID-19 disruptions so far
• Continue to collaborate with utilities and wireless carriers on future 5G opportunities
• Recent acquisition of Chicago-based engineering, design, permitting and utility-locating company
• • Enhances Quanta's turnkey engineering capabilities for core utility markets
  • Materially strengthens our turnkey communications engineering capabilities

To Meet Future Broadband Needs, The U.S. Needs Est. $130-$150B of Fiber Infrastructure Investment(1)

Today's 4G Network

Future 5G Network(2)

= 1 Square Mile

F I B E R D E N S I F I C AT I O N A N D 5 G D E P L O Y M E N T S P R O V I D E L A R G E O P P O R T U N I T Y

8	(1)	Source: Deloitte - Communications Infrastructure Upgrade, July 2017.
(2)	Source: Fiber Broadband Association.

Pipeline and Industrial Infrastructure Services

• Results impacted by COVID-19 as expected. Rapid adjustment to changing market conditions, effective cost management and operational excellence resulted in better than expected margins

	Gas Utility			Pipeline Integrity
•	Experienced work		•	Demand was solid in
	shutdowns in 2Q in			2Q20
	several metro markets.		•	Did not experience
•	Managed headcount and			meaningful COVID-19
	costs in impacted areas			impacts
•	As restrictions lifted,		•	Regulation driving
	activity and utilization			integrity programs to
	recovered better than			ensure safe, reliable and
	expected			environmentally friendly
• Utilities in early stages of			delivery of energy
	multi-decade gas system		•	New pipeline project
	modernization programs			permitting challenges
				could spur incremental
				integrity spending on
				existing systems

Industrial Services

• COVID-19dynamics materially impacted operations in 2Q
• Benefitted from service line diversity
• • Catalyst services and tank maintenance was solid
  • Turnarounds, maintenance and other services deferred
• Opportunity for stability in 2H20, albeit at reduced levels, and for improvement in 2021

Other P&I

Infrastructure Services

• Portions of our midstream and ancillary services operations experienced softness
• Effectively managing headcount and costs
• Some larger pipeline projects facing permitting challenges
• Larger pipeline project activity not expected to be significant in 2020
• Actively pursuing opportunities that could be additive

S O L I D 2 Q 2 0 R E S U L T S I N U N P R E C E D E N T E D O P E R AT I N G C O N D I T I O N S

9

Pipeline and Industrial Infrastructure Services

Strategy

• Create a more sustainable and consistent operation
• Increase and gain scale of base business services
• Services and geographic diversity
• Opportunistic pursuit of larger pipeline projects that meet our risk and margin parameters

Focus Services

Gas Utility

Pipeline

Integrity

Downstream

Industrial Services

Steps Taken

• Organic expansion of gas utility services
• Acquisition of Hallen Construction in 2019 (gas utility services)
• Organic expansion of pipeline integrity services
• Acquisition of Stronghold in 2017 (industrial services)

Results

2020E Pipeline & Industrial

Segment Revenues

<90% Total Revs.+10%

~$3.6B

Base Business Revenues

Larger Project Revenues

+70% Total Revs.<30%

~$3.6B

Focus Services Revenues Remaining Services Revenues

S T R A T E G I C F O C U S O N B A S E B U S I N E S S E X P E C T E D T O Y I E L D S U S T A I N A B I L I T Y A N D C O N S I S T E N C Y

10

Solid 2Q20 Results, Increased 2020 Outlook and Commitment to Stockholder Value

• Increasing Quanta's full-year 2020 outlook
• • Solid 1H20 results
  • Contribution from ownership of LUMA Energy
  • 80% to 90% of estimated 2020 revenues from services and end markets we believe are resilient
• Have executed well on our strategy, which is designed to mitigate risks through diversification and a strong financial profile
• Believe Quanta has a long runway for generating repeatable and sustainable earnings
• Announced a new $500 million stock repurchase authorization
• • Over the past six years, Quanta has repurchased approx. $2.4 billion of its common stock, which equates to the retirement of more than 40% of the shares outstanding at the start of those repurchases
  • These actions demonstrate our confidence in Quanta and our commitment to generating value for our stockholders
• Believe Quanta's diversity, unique operating model and entrepreneurial mindset form the foundation that will allow us to continue to generate long-term value for all our stakeholders

S O U N D S T R AT E G Y, R E S I L I E N T B U S I N E S S M O D E L A N D S T R O N G F I N A N C I A L P R O F I L E

11

2Q 2020 Segment Results versus 2Q 2019

($MMs)

Electric Powerex Latin America

Revenues	Op Inc %
Change (bps)
$1,790	11.1%
Up 2%	Up 130

Commentary

• Revenue growth reflects continued base business strength; communications revenues, included in the electric segment, grew ~50% versus 2Q19
• Higher margins due to strong execution and improved performance from our Canadian business due to increased revenue levels and asset utilization

Latin America

		- Reduction in fire-hardening services, which are expected to increase in the second half of 2020
		- Orderly exit is proceeding
$2	NM	- $15MM losses primarily related to early termination and close out costs associated with projects in the region and
NM	NM	disruptions caused by the COVID-19 pandemic
		- Losses in Latin America receive no tax benefit

Pipeline & Industrial

$713	3.0%
Down 35%	Down 330

• Decreased capital spending by our customers due to the challenging overall energy market conditions and the COVID-19 pandemic resulted in decreased revenues and margins and negatively impacted our ability to cover fixed and overhead costs
• Revenue and margin decline also due to the expected reduction in larger pipeline project revenues, from which the contributions were approximately $186MM lower than 2Q19

Corporate & Non- Allocated

N/A	(3.7%)
Up 110	Up 70

• $8MM increase compared to 2Q19 primarily due to a $5MM increase in intangible asset amortization, an $8MM increase in non-cash stock based compensation expense, a $5MM incremental increase in the fair value of deferred compensation liabilities (for which an approximately equivalent offsetting change is recorded below operating income in Other Income (Expense), net), offset by $7MM associated with the change in fair value of contingent consideration liabilities and $3MM of other cost reductions associated with the current operating environment

I M P R O V E D E L E C T R I C M A R G I N S

12

Free Cash Flow & DSO

			2nd Quarter Recap
Free Cash Flow (1) ($MMs)		Days Sales Outstanding (2) (DSO)
2Q20	2Q19			Free Cash Flow driven by:

$457 $(173)

$497

$(40)$(64)

$(109)

					• Decrease in working capital requirements
					due to lower revenues compared to 2Q19
					and a decrease in DSO
					• Deferred payment of $58MM of federal and
					state income taxes and $31MM of payroll
					taxes as permitted under the CARES Act and
		91			related state actions
85	82		82		DSO of 82 was:
		80
				• 9 days lower than 2Q19 due to lower levels
					of retainage compared to 2Q19 and billing
					process changes for certain customers that
					pressured DSO throughout 2019
1Q20	2Q20	2Q19	2Q20	20 Qtr
				Avg (3)

Cash provided by (used in) operations

Net CapEx

S T R O N G S E C O N D Q U A R T E R C A S H G E N E R AT I O N

1. Refer to the appendix for the definition of Free (Negative Free) Cash Flow, a non-GAAP measure, and a reconciliation to Net Cash Provided by (Used in) Operating Activities

13 (2) Refer to the appendix for the definition of Days Sales Outstanding

1. 20 quarter average from July 1, 2015 through June 30, 2020

Balance Sheet & Liquidity

		Dec 31,		Jun 30,
($MMs)	2017	2018	2019	2020
Cash	138	79	165	531
Debt

Liquidity Highlights

• Ample liquidity and balance sheet

Term Loans

Credit Facility

Other

Total Debt

Operating Lease Liabilities

Total Debt including Operating Lease Liabilities

Net Debt / EBITDA Ratio (1)

Liquidity (2) ($MMs)

Available Credit Facility

Cash & Equivalents

-	593		1,241	1,209
668	479		105	153
4	34		21	25
672	1,106		1,367	1,387
-	-		289	283
672	1,106		1,656	1,670
	1.4x	1.6x	1.6x	1.3x
					$2,138
				$1,811
		$1,173
$867				$1,607
				$1,646
$729	$1,094
	$138	$79		$165	$531
	4Q 17	4Q 18	4Q 19	2Q 20

strength to navigate operational

uncertainties due to COVID-19

dynamics

• Bank-defined leverage ratio of

approximately 1.3x, which is just

below our preferred range of 1.5x -

2.0x

C O N S E R V AT I V E L E V E R A G E & A M P L E L I Q U I D I T Y F O R S T R AT E G I C I N I T I AT I V E S

14	(1)	The Net Debt to EBITDA Ratio is calculated as defined in our senior secured credit agreement, which includes letters of credit drawn against the credit facility
(2)	Liquidity includes cash and cash equivalents and availability under our senior secured credit facility, which is reduced by letters of credit drawn against the credit facility

Capital Allocation Priorities

Capital Deployment - 1Q16 through 2Q20 ($MMs)

Working Capital & CapEx, net of sales
Working Capital $837	Capex $1,003
		Revenue increased $792MM from 1Q16 to 2Q20, a 9.4% CAGR
		M&A and Investments		$1,104

Share Repurchases

$713

Other Uses

$110

Dividends $38

Capital Allocation

• Working capital and capex required to support the organic growth of the business remain our first priorities and have been the largest use of capital from 1Q16 to 2Q20
• Acquisitions and strategic investments totaled approximately $1.1B from 1Q16 to 2Q20, led by the acquisitions of Stronghold in 2017 and Hallen Construction in 2019, which strategically bolstered our base business capabilities in the Pipeline & Industrial segment
• We are committed to the deployment of capital to stockholders through stock repurchases which has been enhanced by the announcement of a new $500MM share repurchase authorization

M A I N T A I N I N G B A L A N C E D A P P R O A C H T O C A P I T A L A L L O C AT I O N

15

Electric Power Segment Guidance (Ex-LATAM (1))

Revenues

Op Inc %

					2020 GUIDANCE RANGE
2019			2020 Initial			1Q20			Current
		Guidance			Guidance			Guidance
	+	Continued base
		electric growth		-	Reduced levels of
	+	U.S. telecom growth
			electric		=	Revenues in line
$7.1B			$7.6B - $7.8B		$7.5B - $7.7B	$7.5B - $7.7B
+ Larger projects		infrastructure
		with 1Q20
		increase			services provided to
						expectations
	-	Fire hardening			industrial customers
			due to COVID-19
		normalizes
				both impacting
	+	Canada			facility access and
			refined product
		improvement with
				demand, causing		+	Solid execution in
		larger projects
				customer budget			1H20 followed by
		commencing
				pullbacks			opportunity for
	+	Telecom
9.6%	9.5%- 10.0%	-	Permitting delays	9.4% - 9.7%		double-digit margins	~10%
	improvement
		due to local		in 3Q and 4Q
	+	Continued U.S.
			government office		+ Incremental $10M
		execution			closures			contribution from
	-	Fire hardening						LUMA
		normalizes

I M P R O V E D E L E C T R I C P O W E R M A R G I N E X P E C T AT I O N S

1. We have concluded to pursue an orderly exit of our Latin American (LATAM) operations. As such, the information on this slide excludes the LATAM operations to provide visibility
   16 into the performance of our ongoing operations. The Electric Power segment as reported includes the results of operations from our LATAM operations. Refer to the appendix for a reconciliation of the Electric Power Segment as reported to the Electric Power Segment excluding LATAM.

Pipeline & Industrial Segment Guidance

2020 GUIDANCE RANGE

Revenues

Op Inc %

2019			2020 Initial			1Q20		Current
		Guidance			Guidance		Guidance
				-	Reduced levels of		-	Further deferral of
	+	Full year of Hallen			gas distribution			customer spend on
			services due to			smaller capital
	+	Continued base			regional COVID-19			projects and gas
$5.0B		business growth	$4.6B - $4.8B		stay-at-home orders	~$4B		distribution activities	$3.5B - $3.7B
	-	~$700MM larger		-	Reduced levels of			due to current
				operating
		project reduction			industrial turnaround
						environment
					and maintenance
					services due to		-	Reduced levels of
					COVID-19 both			larger pipeline
	+	Continued base			impacting facility			project revenues as
			access and refined			project delays push
		business
				product demand,			revenues into 2021
		improvement
				causing customer
	+	Accretive Hallen
			budget pullbacks		+	Stabilizing margins
6.9%		margins	6.8%- 7.2%	-	Energy environment	Likely < 5%	4.75% - 5.25%
+	Further elimination		for remainder of
			causing reduced			2020 after positive
		of oil influenced			levels of smaller
						second quarter
		assets			capital projects for
						results
	-	Larger project			industrial and
		reduction			pipeline related
					infrastructure

C O V I D - 1 9 D I S R U P T I N G B A S E B U S I N E S S A C T I V I T I E S A C R O S S T H E S E G M E N T

1. The Pipeline & Industrial segment as reported includes asset impairment charges in 2019. Refer to the appendix for a reconciliation of the Pipeline & Industrial Segment as
   17 reported to the Pipeline & Industrial Segment excluding asset impairments.

2020 Guidance Summary

($MMs except per share data)	LOW		MID POINT		HIGH
Revenues	$11,000		$11,200		$11,400
Adj. EBITDA (1)
$903		$934		$964
Free Cash Flow (2)
$600		$700		$800
Net Income	$338		$360		$382
Diluted EPS (GAAP)	$2.33		$2.49		$2.64
Adjusted Diluted EPS (3)
$3.18		$3.33		$3.48

Net Income and Adjusted EBITDA guidance includes an estimated $40MM - $45MM of operating losses associated with our orderly exit of Latin America, an impact to both Diluted EPS (GAAP) and Adjusted Diluted EPS between $0.28 and $0.31.

1. Refer to the appendix for the definition of Adjusted EBITDA, a non-GAAP measure, and a reconciliation to Net Income Attributable to Common Stock

18 (2) Refer to the appendix for the definition of Free Cash Flow, a non-GAAP measure, and a reconciliation to Net Cash Provided by Operating Activities

1. Refer to the appendix for the definition of Adjusted Diluted EPS, a non-GAAP measure, and a reconciliation to Diluted EPS

Closing Remarks

• Resilient nature of the largest portions of our operations delivered solid results in 2Q20, validating the sustainable foundation that exists to drive future shareholder value
• LUMA joint venture represents a proof-of-concept for Quanta and provides significant opportunities for repeatable earnings and incremental awards across future periods
• Remain focused on successful execution of our five key objectives
• • Focus on and grow our base business
  • Improve margins
  • Create growth platforms through service line expansion in the utility, communications and industrial industries, and adjacent industries where craft skilled labor is critical to providing cost-certain solutions
  • Be the industry leader in safety and training by investing in craft skilled labor
  • Deploy capital in a disciplined and value-creating manner
• Believe adjusted EBITDA before effects of Latin American operations and COVID-19 on 2020 expectations continue to trend towards $1 billion
• Continue to have a positive multi-year outlook and believe Quanta has opportunity to generate meaningful stockholder value
• Recognize and thank our world-class employees for their hard work and dedication

R E S I L I E N T B U S I N E S S M O D E L , S T R O N G F I N A N C I A L P R O F I L E A N D P O S I T I V E M U L T I - Y E A R O U T L O O K

19

Appendix

• Definitions
• Reconciliation Tables
• Forward Looking Statement Disclaimers

20

Definitions

• Days sales outstanding is calculated by using the sum of current accounts receivable, net of allowance (which includes retainage and unbilled balances), plus contract assets, less contract liabilities and divided by average revenues per day during the quarter.
• Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures. Net capital expenditures is defined as capital expenditures less proceeds from sale of property and equipment and from insurance settlements related to property and equipment.
• EBITDA is defined as earnings before interest, taxes, depreciation, amortization and equity in (earnings) losses of unconsolidated non-integral affiliates.
• Adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below:
• • Non-cash stock-basedcompensation expense may vary due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted;
  • Acquisition and integration costs vary period to period depending on the level of Quanta's ongoing acquisition activity;
  • Change in fair value of contingent consideration liabilities varies from period to period depending on the performance in post-acquisition periods of certain acquired businesses

21

Definitions

• Adjusted Earnings per Share is defined as diluted earnings per share adjusted for the after-tax impact of certain other items as described below:
• • Non-cash stock-basedcompensation expense may vary due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted;
  • Amortization of intangible assets is impacted by Quanta's ongoing acquisition activity, and therefore can vary from period to period;
  • Acquisition and integration costs vary period to period depending on the level of Quanta's ongoing acquisition activity;
  • Change in fair value of contingent consideration liabilities varies from period to period depending on the performance in post-acquisition periods of certain acquired businesses;
  • Impairments of non-integralunconsolidated affiliates vary period to period depending on various market factors outside Quanta's influence or control
• Net working capital is defined as (1) total current assets less cash and cash equivalents, less (2) total current liabilities less current maturities of long-term debt and short-term debt, less current portion of operating lease liabilities.

22

Reconciliation of EBITDA and Adjusted EBITDA

						ESTIMATED RANGE
($000s)		2020							FY 2020
		2Q			Low				Mid				High
Net income attributable to common stock (GAAP as reported)	$	73,946	$	337,800	$	359,800			$	382,000
Interest expense, net		8,379			38,000				36,500				35,000
Provision for income taxes		32,989			141,800				151,850				161,900
Amortization of intangible assets		17,779			72,800				72,800				72,800
Equity in (earnings) losses of non-integral unconsolidated affiliates		5,829			8,500				8,500				8,500
Income taxes and depreciation included in equity in earnings of integral unconsolidated affiliates		407			2,900				2,900				2,900
Depreciation expense		54,526			217,400				217,400				217,400
EBITDA		193,855			819,200				849,750				880,500
Non-cashstock-based compensation		21,980			77,000				77,000				77,000
Acquisition and integration costs		647			6,000				6,000				6,000
Change in fair value of contingent consideration liabilities		(2,238)			700				700				700
Adjusted EBITDA	$	214,244	$	902,900	$	933,450			$	964,200

23

Reconciliation of Adjusted Diluted Earnings per Share

						ESTIMATED RANGE
($000s, except per share information)		2020							FY 2020
		2Q			Low				Mid		High
Reconciliation of adjusted net income attributable to common stock:
Net income attributable to common stock (GAAP as reported)	$	73,946	$	337,800	$	359,800			$	382,000
Adjustments:
Non-cashstock-based compensation		21,980			77,000				77,000				77,000
Amortization of intangible assets		17,779			72,800				72,800				72,800
Acquisition and integration costs		647			6,000				6,000				6,000
Change in fair value of contingent consideration liabilities		(2,238)			700				700				700
Impairments of non-integral unconsolidated affiliates		5,536			8,700				8,700				8,700
Income tax impact of adjustments		(11,436)			(43,000)			(43,000)				(43,000)
Adjusted net income attributable to common stock	$	106,214	$	460,000	$	482,000			$	504,200
Weighted average shares:
Weighted average shares outstanding for diluted and adjusted diluted earnings per share		143,521			144,700				144,700				144,700
Earnings per share attributable to common stock:
Diluted earnings per share attributable to common stock (GAAP as reported)	$	0.52		$	2.33			$	2.49			$	2.64
Adjusted diluted earnings per share attributable to common stock	$	0.74	$	3.18	$	3.33			$	3.48

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Reconciliation of Free Cash Flow

								ESTIMATED RANGE
($000s)		2019			2020					FY 2020
		2Q			2Q			Low		Mid		High
Net cash provided by (used in) operating activities (GAAP as reported)	$	(108,664)	$	497,479	$	850,000	$	950,000	$	1,050,000
Less: Net capital expenditures:
Capital expenditures		(72,775)			(48,148)			(250,000)		(250,000)		(250,000)
Proceeds from sale of property and equipment		8,553			7,826			-		-		-
Net capital expenditures		(64,222)			(40,322)			(250,000)		(250,000)		(250,000)
Free (Negative Free) Cash Flow	$	(172,886)	$	457,157	$	600,000	$	700,000	$	800,000

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Reconciliation of Electric Power Segment excluding Latin America

										2020 GUIDANCE RANGE
($000s)		2019			Initial Guidance			1Q Guidance			Current Guidance
		FY		Low		High			Low		High			Low		High
Revenues:
Electric Power Infrastructure Services	$	7,121,837		$	7,620,000	$	7,840,000	$	7,520,000	$	7,740,000	$	7,520,000	$	7,730,000
Less: Latin America		63,226			20,000		40,000			20,000		40,000			20,000		30,000
Electric Power excluding Latin America	$	7,058,611		$	7,600,000	$	7,800,000	$	7,500,000	$	7,700,000	$	7,500,000	$	7,700,000
Operating income (loss):
Electric Power Infrastructure Services	$	591,177		$	702,000	$	766,000	$	675,000	$	721,900	$	697,500	$	741,600
Less: Latin America		(85,749)			(20,000)		(15,000)			(30,000)		(25,000)			(45,000)		(40,000)
Electric Power excluding Latin America	$	676,926		$	722,000	$	781,000	$	705,000	$	746,900	$	742,500	$	781,600
Operating margin:
Electric Power Infrastructure Services		8.3%			9.2%		9.8%			9.0%		9.3%			9.3%		9.6%
Less: Latin America		(135.6%)			(100.0%)		(37.5%)			(150.0%)		(62.5%)			(225.0%)		(133.3%)
Electric Power excluding Latin America		9.6%			9.5%		10.0%			9.4%		9.7%			9.9%		10.2%

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Reconciliation of Pipeline & Industrial Segment excluding Asset Impairments (1)

											2020 GUIDANCE RANGE
($000s)		2019			Initial Guidance			1Q Guidance			Current Guidance
		FY			Low			High			Low			High			Low			High
Revenues	$	4,990,316	$	4,600,000	$	4,800,000	$	3,900,000	$	4,100,000	$	3,500,000	$	3,700,000
Operating income	$	332,011	$	313,000	$	346,000	$	175,500	$	205,000	$	166,300	$	194,300
Plus: Asset impairments (1)		10,196			-			-			-			-			-			-
Operating income excluding impairments	$	342,207	$	313,000	$	346,000	$	175,500	$	205,000	$	166,300	$	194,300
Operating margin		6.7%			6.8%			7.2%			4.5%			5.0%			4.8%			5.3%
Plus: Asset impairments (1)		0.2%			0.0%			0.0%			0.0%			0.0%			0.0%			0.0%
Operating margin excluding impairments		6.9%			6.8%			7.2%			4.5%			5.0%			4.8%			5.3%

27 (1) Represents asset impairment charges excluding goodwill impairment, as goodwill impairments are included within Corporate and Non-Allocated costs

Forward Looking Statements

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 Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to the following:

• Projected revenues, net income, earnings per share, EBITDA, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, tax rates and other operating or financial results;
• Expectations regarding Quanta's business or financial outlook;
• Expectations regarding the COVID-19 pandemic, including the potential impact of the COVID-19 pandemic and of governmental responses to the pandemic on Quanta's business, operations, supply chain, personnel, financial condition, results of operations, cash flows and liquidity;
• Quanta's plans, strategies and opportunities, including the plans, timing, effects and other matters relating to the COVID-19 pandemic and the exit, through potential sale or otherwise, of its Latin American operations;
• The future performance or success of LUMA and Quanta's investment in LUMA, including the expected economic, workforce and social impact on Puerto Rico and the future performance of the Puerto Rican electrical grid and service;
• The expected outcome of pending and threatened legal proceedings;
• Beliefs and assumptions about the collectability of receivables;
• The business plans or financial condition of Quanta's customers, including with respect to the COVID-19 pandemic;
• The potential impact of the recent decrease in commodity prices and volatility in commodity production volumes on Quanta's business, financial condition, results of operations and cash flows and demand for Quanta's services;
• Trends and economic and regulatory conditions in particular markets or industries;
• Projected or expected realization of remaining performance obligations and backlog;
• The potential benefits from acquisitions or investments;
• The expected financial and operational performance of acquired businesses;
• The future demand for and availability of labor resources in the industries Quanta serves;
• Future capital allocation initiatives, including the amount, timing and strategies with respect to any future stock repurchases or expectations regarding the declaration, amount and timing of any future cash dividends;
• The ability to deliver increased value or return capital to stockholders;
• The expected value of contracts or intended contracts with customers;
• The scope, services, term or results of any projects awarded or expected to be awarded to Quanta;
• The anticipated commencement and completion dates for any projects awarded;
• The development of and opportunities with respect to future projects, including renewable projects and larger electric transmission and pipeline projects;
• The impact of existing or potential legislation or regulation;
• Potential opportunities that may be indicated by bidding activity or discussions with customers;
• Possible recovery of pending or contemplated insurance claims, change orders and affirmative claims asserted against customers or third parties; and
• Other statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts.

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Forward Looking Statements

Although Quanta's management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements can be affected by inaccurate assumptions and by known and unknown risks and uncertainties that are difficult to predict or beyond Quanta's control, including, among others:

• Market conditions;
• The effects of industry, economic, financial or political conditions outside of the control of Quanta, including weakness in capital markets or the ongoing and potential impact to financial markets and worldwide economic activity resulting from the COVID-19 pandemic and related governmental actions;
• Quarterly variations in operating results, liquidity, financial condition, cash flows, capital requirements, reinvestment opportunities or other financial results, including the ongoing and potential impact to Quanta's business, operations and supply chain of the COVID-19 pandemic and related governmental actions;
• The severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of business and governmental responses to the pandemic (e.g., shelter-in-place and other mobility restrictions, business closures) on Quanta's operations, personnel and supply chain and on commercial activity and demand across Quanta's and Quanta's customers' businesses;
• Quanta's inability to predict the extent to which the COVID-19 pandemic and related impacts will adversely impact its business, financial performance, results of operations, financial position, the prices of its securities and the achievement of its strategic objectives, including with respect to governmental restrictions on its ability to operate, workforce availability, regulatory and permitting delays, and future demand for energy and the resulting impact on demand for Quanta's services;
• Trends and growth opportunities in relevant markets, including Quanta's ability to obtain future project awards;
• The time and costs required to exit Quanta's Latin American operations and Quanta's ability to effect related transactions on acceptable terms, as well as the business and political climate in Latin America;
• Delays, deferrals, reductions in scope or cancellations of anticipated, pending or existing projects as a result of, among other things, the COVID-19 pandemic, weather, regulatory or permitting issues (including the recent court ruling vacating the U.S. Army Corps of Engineers' Nationwide Permit 12), environmental processes, project performance issues, claimed force majeure events, protests or other political activity, reductions or eliminations in governmental funding, legal challenges or customer capital constraints;
• The effect of commodity prices and commodity production volumes on Quanta's operations and growth opportunities and on customer capital programs and demand for Quanta's services;
• The successful negotiation, execution, performance and completion of anticipated, pending and existing contracts;
• Risks associated with operational hazards that arise due to the nature of Quanta's services and the conditions in which Quanta operates, including, among others, wildfires and explosions;
• Unexpected costs or liabilities that may arise from legal proceedings, indemnity obligations, reimbursement obligations associated with letters of credit or bonds, multiemployer pension plans (e.g., withdrawal liability) or other claims or actions asserted against Quanta, including those not covered by, or in excess of, third-party insurance;
• Reimbursement obligations associated with letters of credit or bonds;
• The outcome of pending or threatened legal proceedings;
• Potential unavailability or cancellation of third-party insurance coverage, as well as the exclusion of coverage for certain losses, potential increases in premiums for coverage deemed beneficial to Quanta, or the unavailability of coverage deemed beneficial to Quanta at reasonable and competitive rates;
• Damage to our brand or reputation as a result of cyber-security or data privacy breaches, environmental and occupational health and safety matters, corporate scandal, failure to successfully perform a high-profile project, involvement in a catastrophic event (e.g., fire, explosion) or other negative incident;
• Quanta's dependence on suppliers, subcontractors, equipment manufacturers and other third-party contractors, and the impact of the COVID-19 pandemic on these service providers;
• The ability to attract and the potential shortage of skilled labor;
• The ability to retain key personnel and qualified employees and the impact of the COVID-19 pandemic on the availability and performance of our workforce and key personnel;
• Quanta's dependence on fixed price contracts and the potential to incur losses with respect to these contracts;
• Estimates relating to our financial results, remaining performance obligations and backlog;
• Adverse weather conditions, natural disasters and other emergencies, including wildfires, pandemics (including the ongoing COVID-19 pandemic), hurricanes, tropical storms and floods;
• Quanta's ability to generate internal growth;
• Competition in Quanta's business, including the ability to effectively compete for new projects and market share;
• The future development of natural resources;
• The failure of existing or potential legislative actions to result in demand for Quanta's services;

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Forward Looking Statements

• Fluctuations of prices of certain materials used in Quanta's or its customers' businesses, including as a result of the imposition of tariffs, governmental regulations affecting the sourcing of certain materials and equipment, or changes in U.S. trade relationships with other countries;
• Cancellation provisions within contracts and the risk that contracts expire and are not renewed or are replaced on less favorable terms;
• Loss of customers with whom Quanta has long-standing or significant relationships;
• The potential that participation in joint ventures or similar structures exposes Quanta to liability and/or harm to its reputation for acts or omissions by partners;
• Quanta's inability or failure to comply with the terms of its contracts, which may result in additional costs, unexcused delays, warranty claims, failure to meet performance guarantees, damages or contract terminations;
• The inability or refusal of customers or third-party contractors to pay for services, including as a result of the COVID-19 pandemic or the recent decrease in commodity prices;
• Budgetary or other constraints that may reduce or eliminate tax incentives or government funding for projects, which may result in project delays or cancellations;
• Estimates and assumptions in determining financial results, remaining performance obligations and backlog;
• Quanta's ability to successfully complete remaining performance obligations or realize backlog;
• Risks associated with operating in international markets, including instability of foreign governments, currency exchange fluctuations, and compliance with unfamiliar foreign legal systems and business practices, applicable anti-bribery and anti-corruption laws, complex tax regulations and international treaties;
• The ability to successfully identify, complete, integrate and realize synergies from acquisitions, including retention of key personnel;
• The potential adverse impact resulting from uncertainty surrounding investments and acquisitions, including the potential increase in risks already existing in Quanta's operations and poor performance or decline in value of Quanta's investments;
• The adverse impact of impairments of goodwill, receivables, property and equipment and other intangible assets or investments;
• Growth outpacing Quanta's decentralized management and infrastructure;
• Inability to enforce Quanta's intellectual property rights or the obsolescence of such rights;
• The impact of a unionized workforce on operations, including labor stoppages or interruptions due to strikes or lockouts;
• The ability to access sufficient funding to finance desired growth and operations, including our ability to access capital markets on favorable terms, as well as fluctuations in the price and volume of
  Quanta's common stock, debt covenant compliance, interest rate fluctuations and other factors affecting financing and investing activities;
• The ability to obtain performance bonds and other project security;
• The ability to meet certain regulatory requirements applicable to Quanta and its subsidiaries;
• Rapid technological and other structural changes that could reduce the demand for Quanta's services;
• Risks related to the implementation of new information technology systems;
• New or changed tax laws, treaties or regulations;
• Increased costs associated with regulatory changes, including labor costs or healthcare costs;
• Significant fluctuations in foreign currency exchange rates;
• Other risks and uncertainties detailed in Quanta's most recently filed Annual Report on Form 10-K, Quanta's recently filed Quarterly Reports on Form 10-Q and any other documents that Quanta files with the Securities and Exchange Commission (SEC).

For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through Quanta's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward- looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this presentation.

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Connect With Quanta Services Investor Relations

@QuantaIR

QuantaServicesIR

Investor Contact	Corporate Office
Kip Rupp, CFA	2800 Post Oak Blvd., Suite 2600
Vice President - Investor Relations	Houston, TX 77056
713-341-7260	713-629-7600
[e-mail]	www.quantaservices.com

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