What's SOLV Got To Do, Got To Do With It...A Good Amount of EPC and Services

Research evidence excerpt

What's SOLV Got To Do, Got To Do With It...A Good Amount of EPC and Services

Mid-teens High single-digit Mid-teens Low-to-mid teens

(Approx.)

High (strong

FCF Conversion working capital Strong Moderate Volatile Moderate Historically volatile Strong Moderate Strong Strong

model)

Low (1–2% of

Capital Intensity Low Moderate Moderate Low Moderate Low Moderate Low Low

revenue capex)

Leverage Profile Low post-IPO Moderate Moderate Moderate Low Moderate Low Low Low Low

Geographic

U.S.-focused U.S. + international U.S.-focused U.S.-focused U.S.-focused Global Global U.S.-focused U.S.-focused U.S.-focused

Scope

End-Market Concentrated Concentrated

Highly diversified Diversified Diversified Concentrated (gas) Highly diversified Highly diversified T&D focused Highly diversified

Diversification (solar/storage) (telecom)

~26% union;

Mix union/non- Professional Heavy skilled

Labor Model apprenticeship Mix Mix Non-union Mix Heavily union Non-union heavy

union services trades

pipeline

Solar + storage Grid hardening + Energy + Consulting + water Electrification +

Growth Driver LNG + grid Gas plant cycle Energy cycle Grid modernization Fiber densification

buildout electrification infrastructure + energy transition HVAC

Structural Data center-driven Electrification + Energy Global Energy transition Electrification +

Energy transition Gas demand Grid spend Fiber / broadband

Tailwind renewables T&D infrastructure infrastructure advisory building retrofit

Source: Company Data, Evercore ISI Research

Valuation: Despite the unique attributes of SOLV relative to traditional EPC providers we believe

the most prudent and practical valuation approach for investors is to leverage current and

historical valuation metrics of its publicly traded peers in determining the fair value of shares. As