Quanta Services : Outlook Expectations Summary Q1 2021

2021 Outlook Expectations Summary

The following forward-looking statements are based on current expectations, and actual results may differ materially. Such statements are current only as of May 6, 2021.

From 1Q21 Earnings Release & Conference Call

The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, project timing, execution challenges and other factors have impacted the company's historical results and may impact Quanta's future financial results. More recently, the COVID-19 pandemic has significantly impacted certain of Quanta's operations and various markets where Quanta operates, which has created additional uncertainty. Therefore, 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 the remainder of 2021. The following forward-looking statements are based on current expectations, and actual results may differ materially.

Segment and Other Commentary

Electric Power Infrastructure Solutions Segment: Based upon the Electric Segment's strong first quarter of 2021 and continued confidence in Quanta's ability to execute on the opportunities across the segment, we now expect segment revenues for the full year of 2021 to be between $8.4 and $8.5 billion. We expect segment revenues to grow sequentially into the third quarter, followed by a slight decline in the fourth quarter, with second quarter revenues potentially exceeding revenues for the second quarter of 2020 by over 15%. For the full year of 2021, we expect operating margins for the segment to be between 10.2% and 10.9%, which includes an expected operating income contribution of approximately $29 million, or $0.20 per share, from LUMA Energy, LLC (LUMA), Quanta's joint venture with ATCO that has been selected to operate, maintain and modernize the electric transmission and distribution system in Puerto Rico, and other integral unconsolidated affiliates. LUMA is expected to contribute around $10 million of income during the first half of 2021, with an increased income contribution anticipated in the second half of 2021 as LUMA is scheduled to exit the front-end transition services period for the project. Margins for the segment are expected to increase in the second and third quarters before declining slightly in the fourth quarter. We believe our communications services have the opportunity to generate high single- or double digit operating income margins for the remainder of this year.

Underground Utility and Infrastructure Solutions Segment: Full year 2021 revenues are expected to be between $3.65 and $3.85 billion. Over 90% of our 2021 expected revenues represent base business services. From a seasonality perspective, revenues are expected to increase sequentially into the third quarter, then decline in the fourth quarter as per typical seasonality. Quarterly revenues for the second through the fourth quarters of 2021 are expected to be higher on a quarter-over-quarterbasis as compared to 2020, with double-digitgrowth expected in each quarter. We anticipate segment margins for 2021 to be between 5.5% and 6.0%, led primarily by continued solid execution in our gas utility operations for local distribution customers. We expect operating margins to improve into the second and third quarters, with a seasonal decline in the fourth quarter.

Consolidated Company

Estimated Ranges For the Full Year 2021

Electric Power Infrastructure Solutions Segment

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

Non-CashStock-Based Compensation

Interest Expense, Net Other Income, Net Tax Rate

Net Income Attributable to Non-Controlling Interests

Capital Expenditures

Free Cash Flow (a non- GAAP measure)

$12.05 - $12.35 billion

$469 - $533 million

$1.02 - $1.11 billion

$1.10 - $1.20 billion

$3.25 - $3.69

$4.12 - $4.57

144.4 million

Approx. $250 million

Approx. $85 million

Approx. $83 million

$48 - $49 million

$3 - $4 million

25.25% - 25.75%

$5 - $6 million

Approx. $325 million

$400 - $600 million

Revenues	$8.4 - $8.5 billion
Operating Income Margin	Between 10.2% - 10.9%

Includes Approx. $29

million operating income contribution from LUMA JV and other integral affiliates

Underground Utility and Infrastructure Solutions Segment

Revenues	$3.65 - $3.85 billion
Operating Income Margin	Between 5.5% - 6.0%
Corporate and Non-	Approx. 3.1%
Allocated Costs

Foreign Exchange Rates

Outlook reflects foreign exchange rates comparable to the first quarter of 2021

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 ended March 31, 2021 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

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, tax rates, foreign exchange rates and other operating or 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; expectations regarding the COVID-19 pandemic, including the continued and 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; expectations regarding Quanta's plans and strategies; the potential benefits from, and future financial and operational performance of, acquired businesses and our investments, including our investment in LUMA Energy, LLC; 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 and transitioning to a carbon-neutral economy; the potential impact of commodity prices and production volumes on Quanta's business and demand for Quanta's services; projected or expected realization of remaining performance obligations and backlog; 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 and other projects designed to support transition to a carbon neutral economy 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; and possible recovery of pending or contemplated insurance claims, change orders and claims asserted against customers or third parties; 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, 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 conditions; the effects of industry, economic, financial or political conditions outside of the control of Quanta, including economic, energy, infrastructure and environmental policies and plans adopted or proposed by the U.S. federal and governments and weakness in capital markets or the ongoing and potential impact to financial markets and worldwide economic activity resulting from the COVID-19 pandemic; 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; the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of business and governmental responses to the pandemic on Quanta's operations, personnel and supply chain and on commercial activity and demand across Quanta's and its customers' businesses, as well as Quanta's inability to predict the extent to which the COVID-19 pandemic will adversely impact its business, the prices of its securities and achievement of its strategic objectives; 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, 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, environmental processes, project performance issues, claimed force majeure events, protests or other political activity, legal challenges, reductions or eliminations in governmental funding, legal challenges 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; 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, liabilities, fines or penalties 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; 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 Quanta's 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; 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 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; 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; Quanta's ability to successfully complete remaining performance obligations or realize backlog; adverse weather conditions, natural disasters and other emergencies, including wildfires, pandemics, 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 and initiatives to result in demand for Quanta's services; fluctuations of prices of certain materials used in Quanta's or its customers' businesses, including as a result of 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; 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, which may result in project delays or cancellations; 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, other intangible assets, receivables, long-lived assets or investments; difficulties arising from Quanta's decentralized management structure; 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 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 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; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2020, Quanta's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (when filed) 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 May 6, 2021. 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.