FY29 Guide Achievable Driven by MegaTrends, MSD% Growth, and M&A

Research evidence excerpt

FY29 Guide Achievable Driven by MegaTrends, MSD% Growth, and M&A

uide assumes revenue for $3bn, EBITDA margin of 18%, and

FCF conversion of 85%+. The revenue guide is underpinned by MSD% organic growth led by the

CE segment given support from data center as it is expected to run 7-9%. On the margin front, Figure 1 - FY29 guide implies 320bps

improvement to 18% from FY25we're constructive on the opportunity for 18% margin driven by synergy capture, accretive M&A, and

TIC Solutions Long-term Financial FY29 Guide ($mms)

disciplined pricing. Note, Acuren 2024 EBITDA margin was 17%. Lastly, given the company's LSD Revenue $3,000

% capex intensity, we believe mgmt. is well positioned to deliver on their $500mm+ in cumulative EBITDAImplied MarginEBITDA $54018%

FCF by 2029. . FCF Conversion 85%

Source: Company data, Jefferies

Data Center Opportunity Explained. As demand for data centers remains robust (expected to

represent ~12% of US power consumption by 2028) we'd expect TIC to win incremental share

given they provide the full scope of commissioning and engineering services. Our sense is the

contract structure and increase demand for parts, cooling and power will drive incremental revenue

opportunities, supporting their ability to achieve 7-9% organic revenue growth. Lastly, the repeatable

positions them well to use support an increased amount of clients.

M&A Update. M&A remains a key lever for growth as the company anticipates to spend

$100-150mm on revenue, purchasing companies for 5-8x EBITDA or 1-1.5x revenue. We're

constructive on the synergy opportunity here given the execution on NV5 (~70% of synergies

actioned) with the remaking expected to be exercise by 4Q26. Ultimately, we see considerable