Quanta Services : Outlook Expectations Summary FY 2022

2023 Outlook Expectations Summary as of February 23, 2023

The following forward-looking statements are based on current expectations, and actual results may differ materially. Such statements are current only as of February 23, 2023.

From 4Q22 Earnings Release & Conference Call

The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, supply chain challenges and other factors affecting project timing and execution have impacted the company's historical results in the past and may impact future financial results. Additionally, we continue to consider future uncertainty associated with the overall challenges to the domestic and global economy, including inflation, increased interest rates and recessionary economic conditions. Quanta's financial outlook for revenues, margins and earnings reflects management's effort to align these uncertainties with the backlog the company is executing on and the opportunities expected to materialize during 2023.

Segment and Other Commentary

Quanta Services Consolidated: We expect full-year 2023 consolidated revenues to be between $18.40 and $18.90 billion, adjusted EBITDA to be between $1.82 and $1.94 billion and adjusted net income to be between $1.00 billion and $1.07 billion. We expect adjusted diluted EPS to be between $6.75 and $7.25.

Electric Power Infrastructure Solutions Segment: We expect full-year 2023 revenues for the segment to be between $10.00 and $10.10 billion. From a seasonality perspective, we expect 1Q23 revenues to grow mid-single digits compared to 1Q22 revenues, with double digit growth in each of the quarters thereafter compared to 2022. The high end of our expected revenue range represents greater revenue growth opportunities in the third and fourth quarters relative to 2022. We expect operating margins to range between 10.7% and 11.3%, which includes an expected operating income contribution of approximately $43 to $48 million, or $0.29 to $0.32 per share, from our integral unconsolidated affiliates, including the LUMA Energy, LLC (LUMA) joint venture. We expect first quarter operating margins will be around 9%, the lowest for the year. Margins are expected to increase in the second and third quarters before declining slightly in the fourth quarter. Included in the segment are our communications services, which we expect to deliver around $900 million of revenue in 2023, with double digit margins on a full-year basis.

Renewable Energy Infrastructure Solutions Segment: We expect full-year 2023 revenues for the segment to be between $4.30 and $4.50 billion. From a seasonality perspective, we expect segment revenues in the first quarter between $850 and $900 million, then growing sequentially into the third quarter, with a slight decline in the fourth quarter. We expect full-year operating margins to be around 8.5%, slightly lower than the 9% level that we would normally expect, due to cost absorption pressure impacting the segment in the first half of the year. We expect margins for the first quarter to be the lowest for the year, likely between 4% and 5%.

Underground Utility and Infrastructure Solutions Segment: We expect full-year 2023 revenues for the segment to be between $4.10 to $4.30 billion. From a seasonality perspective, we expect first quarter revenues to be comparable to 1Q22 revenues. Revenues should then increase sequentially into the third quarter, then seasonally decline in the fourth quarter, which we currently expect will be the lowest for the year. We expect full-year segment margins to be between 7.25% and 7.75%, with our first quarter margins expected to be the lowest for the year of around 5%. However, we expect solid improvement into the second and third quarters, with a seasonal decline in the fourth quarter.

Quanta Services, Inc. - Estimated Ranges For the Full Year 2023 as of February 23, 2023

Consolidated Company

Revenues

Net Income Attributable to Common Stock

EBITDA (a non-GAAP measure)

Adjusted EBITDA (a non-GAAP measure)

GAAP Diluted EPS Attributable to Common Stock

Adjusted Diluted EPS Attributable to Common Stock (a non-GAAP measure)

Diluted Weighted Avg. Shares Outstanding

Depreciation

Amortization of Intangibles (included in corporate and unallocated)

Non-CashStock-Based Compensation (included in corporate and unallocated)

Interest Expense, Net

Effective Tax Rate

Net Income Attributable to Non-Controlling Interests

Capital Expenditures

Free Cash Flow (a non-GAAP measure)

Foreign Exchange Rates

$18.4 - $18.9 billion

$692 - $766 million

$1.69 - $1.81 billion

$1.82 - $1.94 billion

$4.67 - $5.17

$6.75 - $7.25

148.2 million Approx. $310 million Approx. $279 million Approx. $116.0 million $147 - 153 million

26.25% - 26.75%, with 1Q23 rate estimated to be as low as 0.0%

Approx. $2 million

Approx. $400 million

$750 million - $1.00 billion

Expect 1Q23 FCF to be lowest of the year, likely negative for the quarter

Outlook reflects foreign exchange rates comparable to the fourth quarter of 2022

Electric Power Infrastructure Solutions Segment
Revenues	$10.0 - $10.1 billion
Operating Income Margin	Between 10.7% - 11.3%

Renewable Energy Infrastructure Solutions Segment

Revenues

Operating Income Margin

Underground Utility & Infrastructure Solutions Segment

Revenues

Operating Income Margin

Corporate and Non-Allocated Costs

Due to lower first quarter revenue levels and approximately $17 million of deal costs, Corporate and Non-Allocated Costs are expected to be approximately 4.1% of 1Q23 revenues.

Includes Approx. $45.5 million operating income contribution from integral affiliates including LUMA JV

$4.3 - $4.5 billion Approx. 8.5%

$4.1 - $4.3 billion

Between 7.25% - 7.75%

Approx. 3.5% of FY23 revenues

Approx. 4.1% of 1Q23 revenues

Non-GAAP Financial Measures

Reconciliations of estimated EBITDA and estimated adjusted EBITDA (non-GAAP measures) to GAAP net income attributable to common stock, estimated adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to estimated GAAP diluted earnings per share attributable to common stock and estimated free cash flow (a non-GAAP measure) to net cash flow provided by operating activities can be found in the company's press release announcing results for the fiscal quarter and year ended December 31, 2022 and accompanying presentation, which are available on the company's website at www.quantaservices.com in the "Investors Relations" section.

Cautionary Statement About Forward-Looking Statements and Information

This summary information (and oral statements regarding the subject matter of this summary information) 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 projected revenues, net income, earnings per share, EBITDA, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, interest rates, tax rates and other operating results and GAAP and non-GAAP financial results; expectations regarding Quanta's business or financial outlook; expectations regarding opportunities, technological developments, competitive positioning, future economic and regulatory conditions and other trends in particular markets or industries, including with respect to Quanta's increased operations in the renewable energy market and the transition to a reduced-carbon economy; expectations regarding Quanta's plans and strategies; the potential benefits from, and future financial and operational performance of, acquired businesses and investments, including Blattner Holding Company and its operating subsidiaries and Quanta's investment in LUMA; possible recovery of pending or contemplated insurance claims, change orders and claims asserted against customers or third parties; expectations regarding the outcome of pending or threatened legal proceedings, as well as the collection of amounts awarded in 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 transition to a reduced-carbon economy; the potential impact of commodity prices and production volumes on Quanta's business, financial condition, results of operations, cash flows and demand for Quanta's services; expected recognition and realization of remaining performance obligations and backlog; the future demand for, availability of and costs related to labor resources in the industries Quanta serves; future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future acquisitions, investments, cash dividends, repurchases of equity or debt securities or repayments of other outstanding debt; the expected value of contracts or intended contracts with customers, as well as the expected timing, scope, services, term or results of any awarded or expected projects; the development of and opportunities with respect to future projects, including renewable energy projects and other projects designed to support transition to a reduced-carbon economy, electrical grid modernization, upgrade and hardening projects, and larger transmission and pipeline projects; expectations regarding the future availability and price of materials and equipment necessary for the performance of our business; the expected impact of global and domestic economic conditions on our business, financial condition, results of operations, cash flows and liquidity, including inflation, interest rates and recessionary economic conditions; the expected impact of changes or potential changes to climate and the physical and transition risks associated with climate change and the transition to a reduced-carbon economy; the impact of existing or potential legislation or regulation including the Inflation Reduction Act; potential opportunities that may be indicated by bidding activity or discussions with customers; and expectations regarding our ability to reduce our debt and maintain our current credit ratings; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance; rather they involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties including, among others, market, industry, economic, financial or political conditions that are outside of the control of Quanta, including as a result of, among other things, inflation, interest rates, recessionary economic conditions, deterioration of global or specific trade relationships and geopolitical conflicts and political unrest; quarterly variations in operating and financial results, liquidity, financial condition, cash flows, capital requirements and reinvestment opportunities; trends and growth opportunities in relevant markets, including Quanta's ability to obtain future project awards; fluctuations in the amount of work customers assign to Quanta, delays, deferrals, reductions in scope or cancellations of anticipated, pending or existing projects as a result of, among other things, supply chain disruptions and other logistical challenges, weather, regulatory or permitting issues, environmental processes, project performance issues, claimed force majeure events, protests or other political activity, legal challenges, inflationary pressure, reductions or eliminations in governmental funding, or customer capital constraints; the effect of commodity prices and 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; events arising from operational hazards, including, among others, wildfires and explosions, that can arise due to the nature of Quanta's services and the conditions in which Quanta operates and can be due to the failure of infrastructure on which Quanta has performed services and result in significant liabilities that may be exacerbated in certain geographies and locations; unexpected costs, liabilities, fines or penalties that may arise from legal proceedings, indemnity and other obligations or other claims or actions asserted against Quanta, including amounts not covered by, or in excess of the coverage under, third-party insurance; 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 (e.g., coverage for wildfire events); damage to Quanta's brand or reputation, as well as potential costs, liabilities, fines and penalties, arising as a result of cyber-security breaches, environmental and occupational health and safety matters, corporate scandal, failure to successfully perform or negative publicity regarding a high-profile project, involvement in a catastrophic event (e.g., fire, explosion) or other negative incidents; disruptions in, or failure to adequately protect, Quanta's information technology systems; Quanta's dependence on suppliers, subcontractors, equipment manufacturers and other third-parties, and the impact of inflationary pressure, regulatory, supply chain and logistical challenges on these third parties; Quanta's ability to attract, the potential shortage of and increased costs with respect to skilled labor, as well as Quanta's inability to retain or attract key personnel and qualified employees; Quanta's dependence on fixed price contracts and the potential to incur losses with respect to these contracts, including as a result of inaccurate estimates of project costs or inability to meet project schedule requirements or achieve guaranteed performance or quality standards for a project; estimates and assumptions relating to financial results, remaining performance obligations and backlog; inability to successfully complete remaining performance obligations or realize backlog; adverse weather conditions, natural disasters and other emergencies, including wildfires, pandemics, hurricanes, tropical storms, floods, debris flows, earthquakes and other geological- and weather-related hazards; the impact of climate change; 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 and initiatives to result in demand for Quanta's services; unavailability of, or increased prices for, materials, equipment and consumables (such as fuel) used in Quanta's or its customers' businesses, including as a result of inflation, supply chain disruptions, governmental regulations on sourcing, the imposition of tariffs, duties, taxes or other assessments, and other changes in U.S. trade relationships with foreign 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 or harm to its reputation as a result of 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, which could result in the inability to collect our outstanding receivables, failure to recover amounts billed to, or avoidance of certain payments received from, customers in bankruptcy or failure to recover on change orders or contract claims; technological advancements and other market developments that could reduce the demand for Quanta's services; budgetary or other constraints that may reduce or eliminate tax incentives or government funding for projects, including renewable energy projects, which may result in project delays or cancellations; risks associated with operating in international markets and U.S. territories, including instability of governments, currency exchange fluctuations, and compliance with unfamiliar legal and labor systems and business practices, the U.S. Foreign Corrupt Practices Act and other applicable anti- bribery and anti-corruption laws, complex tax regulations and international treaties; inability to successfully identify, complete, integrate and realize synergies from acquisitions or retain key personnel from acquired businesses; the potential adverse impact of acquisitions and investments, including the potential increase in risks

already existing in Quanta's operations, poor performance or decline in value of acquired businesses or investments and unexpected costs or liabilities that may arise from acquisitions or investments; the adverse impact of impairments of goodwill, other intangible assets, receivables, long-lived assets or investments; difficulties arising from Quanta's decentralized management structure; the impact of the unionized portion of Quanta's workforce on its operations; inability to access sufficient funding to finance desired growth and operations, including the ability to access capital markets on favorable terms, as well as fluctuations in the price and trading volume of Quanta's common stock, debt covenant compliance, interest rate fluctuations, a downgrade in our credit ratings and other factors affecting financing and investing activities; the ability to obtain bonds, letters of credit and other project security; significant fluctuations in foreign currency exchange rates; new or changed tax laws, treaties or regulations; inability to realize deferred tax assets; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the years ended December 31, 2021 and December 31, 2022 (when filed), Quanta's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 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 February 23, 2023. 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 summary information.