According to our research, a number of megatrends are driving our future. Within these overarching themes are companies that are capable of exploiting these changes in technology, consumer preferences, demographics, and environmental sustainability. These changes can can lead to significant increases in their total markets, earnings trajectories and market capitalizations. We believe Quanta Services is one of these companies.
- PWR is a core holding for energy transition portfolios as the go-to “picks & shovels” pure play for domestic energy transmission infrastructure. As the leading specialty construction services franchise in this field, PWR aligns with the electrification of everything within the climate sustainability megatrend.
- Secular growth outlook underpinned by numerous durable trends:
- Grid modernization and hardening
- Renewables integration
- EV penetration plus other broad-ranging electrification initiatives driven by decarbonization goals
- 5G network buildout
- Rising customer outsourcing
- Blattner acquisition pushes PWR into solar, wind and EV infrastructure
- Infrastructure Stimulus – The recently passed infrastructure plan will accelerate the strengthening U.S. electric grid. We also believe some form of the Build Better Back legislation (BBB) will eventually become an incremental driver of electrification.
- Acceleration & Expansion of Clean Energy & Infrastructure Opportunity Set – Following several weather/fire events over the past several years, significant investment is being made to harden power grids to be better prepared for severe weather events in the future. Further large- scale investment in the power and utility grids will be required as EV adoption, energy electrification, carbon emission reduction and increasing renewables generation initiatives continue to unfold.
- Communications and 5G – PWR identifies the rollout of 5G wireless networks in North America as needing ~$275B of infrastructure investment that the company is well positioned for, given its expertise in both telecom and electric power infrastructure (both of which are expected to be necessary as new equipment will need to be installed above power lines).
The Future Fund LLC is an SEC-registered investment advisor. Opinions are as of 1/10/2022 and subject to change without notice.
About The Future Fund
The Future Fund LLC is an SEC-Registered Investment Advisor. We’ve identified 10 megatrends we believe are the most influential multi-year secular growth opportunities shaping the future. Our focus is on companies that can change the world by capitalizing on these fundamental changes in their markets.
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