Item 1. Financial Statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)

(Unaudited)

						June 30, 2025						December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents						$	509,460					$	741,960
Accounts receivable, net						5,386,384						5,170,935
Contract assets						1,347,057						1,208,619
Inventories						286,910						260,181
Prepaid expenses and other current assets						647,746						469,338
Total current assets						8,177,557						7,851,033
Property and equipment, net						2,884,776						2,700,277
Operating lease right-of-use assets						345,705						299,895
Other assets, net						884,492						655,709
Other intangible assets, net						1,924,943						1,860,537
Goodwill						5,673,791						5,316,443
Total assets						$	19,891,264					$	18,683,894
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt						$	86,782					$	62,680
Current portion of operating lease liabilities						100,262						94,162
Accounts payable and accrued expenses						3,650,722						3,722,343
Contract liabilities						2,139,490						2,149,328
Total current liabilities						5,977,256						6,028,513
Long-term debt, net of current maturities						4,653,843						4,099,756
Operating lease liabilities, net of current portion						266,503						222,359
Deferred income taxes						366,002						353,268
Insurance and other non-current liabilities						758,886						650,281
Total liabilities						12,022,490						11,354,177
Commitments and Contingencies
Equity:
Common stock, $0.00001 par value, 600,000,000 shares authorized, 178,340,749 and 176,718,480 shares issued, and 148,482,012 and 147,678,512 shares outstanding						2						2
Additional paid-in capital						3,773,812						3,444,108
Retained earnings						6,050,601						5,707,286
Accumulated other comprehensive loss						(298,710)						(372,708)
Treasury stock, 29,858,737 and 29,039,968 common shares						(1,668,103)						(1,460,957)
Total stockholders’ equity						7,857,602						7,317,731
Non-controlling interests						11,172						11,986
Total equity						7,868,774						7,329,717
Total liabilities and equity						$	19,891,264					$	18,683,894

The accompanying notes are an integral part of these condensed consolidated financial statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share information)

(Unaudited)

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Revenues						$	6,773,007					$	5,594,387					$	13,006,341					$	10,626,206
Cost of services						5,765,433						4,783,056						11,164,730						9,191,381
Gross profit						1,007,574						811,331						1,841,611						1,434,825
Equity in earnings of integral unconsolidated affiliates						14,444						8,586						27,373						20,920
Selling, general and administrative expenses						(528,355)						(432,356)						(1,022,321)						(834,696)
Amortization of intangible assets						(113,178)						(79,214)						(222,740)						(156,725)
Change in fair value of contingent consideration liabilities						(10,203)						(1,117)						(14,560)						(1,740)
Operating income						370,282						307,230						609,363						462,584
Interest and other financing expenses						(59,579)						(45,321)						(113,891)						(86,393)
Interest income						3,782						3,557						7,623						11,580
Other income, net						4,138						1,617						4,377						26,499
Income before income taxes						318,623						267,083						507,472						414,270
Provision for income taxes						85,100						75,199						124,980						96,295
Net income						233,523						191,884						382,492						317,975
Less: Net income attributable to non-controlling interests						4,273						3,725						8,984						11,456
Net income attributable to common stock						$	229,250					$	188,159					$	373,508					$	306,519
Earnings per share attributable to common stock:
Basic						$	1.54					$	1.28					$	2.52					$	2.10
Diluted						$	1.52					$	1.26					$	2.47					$	2.05
Shares used in computing earnings per share:
Weighted average basic shares outstanding						148,448						146,580						148,361						146,258
Weighted average diluted shares outstanding						150,923						149,788						150,937						149,587

The accompanying notes are an integral part of these condensed consolidated financial statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Net income						$	233,523					$	191,884					$	382,492					$	317,975
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustment gain (loss)						73,958						(9,058)						73,553						(39,798)
Other comprehensive (loss) income						(182)						—						445						—
Other comprehensive income (loss), net of taxes						73,776						(9,058)						73,998						(39,798)
Comprehensive income						307,299						182,826						456,490						278,177
Less: Comprehensive income attributable to non-controlling interests						4,273						3,725						8,984						11,456
Comprehensive income attributable to common stock						$	303,026					$	179,101					$	447,506					$	266,721

The accompanying notes are an integral part of these condensed consolidated financial statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

												Six Months Ended
												June 30,
																		2025						2024
Cash Flows from Operating Activities:
Net income																		$	382,492					$	317,975
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation																		196,839						172,546
Amortization of intangible assets																		222,740						156,725
Equity in earnings of unconsolidated affiliates, net of distributions																		(4,090)						8,355
Deferred income tax benefit																		(5,742)						(5,366)
Non-cash stock-based compensation																		82,222						72,581
Other non-cash adjustments, net																		14,875						(6,881)
Changes in assets and liabilities, net of non-cash transactions:
Accounts, notes and retainage receivable																		(69,462)						(60,736)
Contract assets																		(102,935)						160,845
Inventories																		(25,682)						(21,281)
Prepaid expenses and other current assets																		(165,060)						(53,498)
Accounts payable and accrued expenses, insurance and other non-current liabilities																		64,539						(57,189)
Contract liabilities																		(32,856)						(52,281)
Other assets and liabilities, net																		(18,971)						(2,528)
Net cash provided by operating activities																		538,909						629,267
Cash Flows from Investing Activities:
Capital expenditures																		(273,111)						(244,595)
Proceeds from sale of and insurance settlements related to property and equipment																		22,390						55,176
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired																		(586,102)						(450,798)
Investments in unconsolidated affiliates and other																		(148,312)						(6,552)
Proceeds from the sale or settlement of certain investments																		—						29,239
Other, net																		4,589						28,270
Net cash used in investing activities																		(980,546)						(589,260)
Cash Flows from Financing Activities:
Borrowings under credit facility and commercial paper program																		15,909,329						6,914,679
Payments under credit facility and commercial paper program																		(15,351,514)						(7,621,682)
Payments of contingent consideration liabilities recorded at acquisition date																		(102,558)						—
Payments related to tax withholding for stock-based compensation																		(72,590)						(77,797)
Payments of dividends																		(30,318)						(27,006)
Repurchase of common stock																		(134,555)						—
Other, net																		(31,047)						5,508
Net cash provided by (used in) financing activities																		186,747						(806,298)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash																		21,633						(7,003)
Net decrease in cash, cash equivalents and restricted cash																		(233,257)						(773,294)
Cash, cash equivalents and restricted cash, beginning of period																		746,010						1,295,041
Cash, cash equivalents and restricted cash, end of period																		$	512,753					$	521,747

The accompanying notes are an integral part of these condensed consolidated financial statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except share data)

(Unaudited)

																											Accumulated
															Additional												Other												Total						Non-
			Common Stock												Paid-In						Retained						Comprehensive						Treasury						Stockholders’						Controlling						Total
			Shares Outstanding						Amount						Capital						Earnings						Income (Loss)						Stock						Equity						Interests						Equity
Balance at December 31, 2024			147,678,512						$	2					$	3,444,108					$	5,707,286					$	(372,708)					$	(1,460,957)					$	7,317,731					$	11,986					$	7,329,717
Other comprehensive income			—						—						—						—						222						—						222						—						222
Acquisitions			515,822						—						161,554						—						—						—						161,554						—						161,554
Stock-based compensation activity			540,552						—						38,564						—						—						(72,012)						(33,448)						—						(33,448)
Common stock repurchases			(471,387)						—						—						—						—						(118,568)						(118,568)						—						(118,568)
Dividends declared ($0.10 per share)			—						—						—						(15,089)						—						—						(15,089)						—						(15,089)
Distributions to non-controlling interests			—						—						—						—						—						—						—						(985)						(985)
Net income			—						—						—						144,258						—						—						144,258						4,711						148,969
Balance at March 31, 2025			148,263,499						$	2					$	3,644,226					$	5,836,455					$	(372,486)					$	(1,651,537)					$	7,456,660					$	15,712					$	7,472,372
Other comprehensive income			—						—						—						—						73,776						—						73,776						—						73,776
Acquisitions			257,357						—						85,971						—						—						—						85,971						—						85,971
Stock-based compensation activity			28,328						—						43,615						—						—						(579)						43,036						—						43,036
Common stock repurchases			(67,172)						—						—						—						—						(15,987)						(15,987)						—						(15,987)
Dividends declared ($0.10 per share)			—						—						—						(15,104)						—						—						(15,104)						—						(15,104)
Distributions to non-controlling interests			—						—						—						—						—						—						—						(8,559)						(8,559)
Other			—						—						—						—						—						—						—						(254)						(254)
Net income			—						—						—						229,250						—						—						229,250						4,273						233,523
Balance at June 30, 2025			148,482,012						$	2					$	3,773,812					$	6,050,601					$	(298,710)					$	(1,668,103)					$	7,857,602					$	11,172					$	7,868,774

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except share data)

(Unaudited)

																											Accumulated
															Additional												Other												Total						Non-
			Common Stock												Paid-In						Retained						Comprehensive						Treasury						Stockholders’						Controlling						Total
			Shares Outstanding						Amount						Capital						Earnings						Income (Loss)						Stock						Equity						Interests						Equity
Balance at December 31, 2023			145,508,549						$	2					$	3,002,652					$	4,858,066					$	(282,945)					$	(1,305,534)					$	6,272,241					$	11,114					$	6,283,355
Other comprehensive loss			—						—						—						—						(30,740)						—						(30,740)						—						(30,740)
Acquisitions			250,539						—						51,768						—						—						—						51,768						—						51,768
Stock-based compensation activity			625,122						—						35,822						—						—						(77,351)						(41,529)						—						(41,529)
Dividends declared ($0.09 per share)			—						—						—						(13,477)						—						—						(13,477)						—						(13,477)
Distributions to non-controlling interests			—						—						—						—						—						—						—						(8,199)						(8,199)
Net income			—						—						—						118,360						—						—						118,360						7,731						126,091
Balance at March 31, 2024			146,384,210						$	2					$	3,090,242					$	4,962,949					$	(313,685)					$	(1,382,885)					$	6,356,623					$	10,646					$	6,367,269
Other comprehensive loss			—						—						—						—						(9,058)						—						(9,058)						—						(9,058)
Acquisitions			35,886						—						9,054						—						—						—						9,054						—						9,054
Stock-based compensation activity			23,935						—						37,119						—						—						(739)						36,380						—						36,380
Dividends declared ($0.09 per share)			—						—						—						(13,521)						—						—						(13,521)						—						(13,521)
Distributions to non-controlling interests			—						—						—						—						—						—						—						(934)						(934)
Net income			—						—						—						188,159						—						—						188,159						3,725						191,884
Balance at June 30, 2024			146,444,031						$	2					$	3,136,415					$	5,137,587					$	(322,743)					$	(1,383,624)					$	6,567,637					$	13,437					$	6,581,074

The accompanying notes are an integral part of these condensed consolidated financial statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

TABLE OF CONTENTS

						Page
1.			Business and Organization, Basis of Presentation and Accounting Policies			12
2.			New Accounting Pronouncements			12
3.			Revenue Recognition and Related Balance Sheet Accounts			12
4.			Segment Information			16
5.			Acquisitions			18
6.			Investments in Affiliates and Other Entities			22
7.			Per Share Information			23
8.			Debt Obligations			23
9.			Income Taxes			25
10.			Equity			26
11.			Stock-Based Compensation			26
12.			Employee Benefit Plans			27
13.			Commitments and Contingencies			28
14.			Detail of Certain Accounts			29
15.			Supplemental Cash Flow Information			31

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

1. BUSINESS AND ORGANIZATION, BASIS OF PRESENTATION AND ACCOUNTING POLICIES:

Quanta Services, Inc. (together with its subsidiaries, Quanta) is a leading provider of comprehensive infrastructure solutions for the electric and gas utility, renewable energy, technology, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. We provide engineering, procurement, construction, upgrade and repair and maintenance services for infrastructure within each of these industries, including electric power transmission and distribution networks; substation facilities; wind and solar generation and transmission and battery storage facilities; electrical systems for data center, commercial and industrial facilities; communications and cable multi-system operator networks; gas utility systems; pipeline transmission systems and facilities; and downstream industrial facilities.

These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta’s Annual Report on Form 10-K for the year ended December 31, 2024. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included.

The results of Quanta have historically been subject to seasonal fluctuations. The results of operations, comprehensive income and operating cash flows for the interim periods are not necessarily indicative of the results for the entire fiscal year.

2. NEW ACCOUNTING PRONOUNCEMENTS:

New Accounting Pronouncements and Disclosure Rules Not Yet Adopted

In November 2024, the FASB issued an update that requires incremental disclosures about specific expense categories. Entities are required to disclose in the notes to financial statements the amounts of purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expense included in each relevant expense caption of the statements of operations. The standard also requires disclosure of the amount, and a qualitative description of, other items remaining in relevant expense captions that are not separately disaggregated. This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption and both prospective and retrospective application are permitted. Quanta is currently assessing the effect of this update.

In December 2023, the FASB issued an update that expands disclosures for tax rate reconciliation tables, primarily by requiring disaggregation of income taxes paid by jurisdiction, as well as greater disaggregation within the rate reconciliation. This update is effective for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025. Early adoption and retrospective application are permitted. Quanta is currently assessing the effect of this update.

3. REVENUE RECOGNITION AND RELATED BALANCE SHEET ACCOUNTS:

Contracts

Quanta’s services are generally provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction contracts. Contracts are combined if they are entered into at or near the same time as one another and negotiated as a group, in contemplation of one another, for a related commercial purpose. When applicable, the transaction price is allocated to performance obligations on the basis of relative standalone selling prices that is generally determined using an expected profit margin on anticipated costs related to the performance obligation. Quanta’s contracts are classified into three categories: unit-price contracts, cost-plus contracts and fixed price contracts.

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands):

						Three Months Ended June 30,																								Six Months Ended June 30,
						2025												2024												2025												2024
By contract type:
Fixed price contracts						$	3,948,454					58.3		%				$	3,092,460					55.3		%				$	7,703,780					59.2		%				$	5,764,775					54.3		%
Unit-price contracts						1,734,144						25.6						1,633,701						29.2						3,189,630						24.5						3,061,208						28.8
Cost-plus contracts						1,090,409						16.1						868,226						15.5						2,112,931						16.3						1,800,223						16.9
Total revenues						$	6,773,007					100.0		%				$	5,594,387					100.0		%				$	13,006,341					100.0		%				$	10,626,206					100.0		%

						Three Months Ended June 30,																								Six Months Ended June 30,
						2025												2024												2025												2024
By primary geographic location:
United States						$	6,279,010					92.8		%				$	5,132,607					91.8		%				$	12,067,063					92.9		%				$	9,702,323					91.3		%
Canada						238,406						3.5						220,085						3.9						448,652						3.4						449,512						4.2
Australia						198,104						2.9						161,251						2.9						369,191						2.8						307,280						2.9
Others						57,487						0.8						80,444						1.4						121,435						0.9						167,091						1.6
Total revenues						$	6,773,007					100.0		%				$	5,594,387					100.0		%				$	13,006,341					100.0		%				$	10,626,206					100.0		%

Under fixed-price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage of completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 62.5% and 58.2% of Quanta’s revenues recognized during the three months ended June 30, 2025 and 2024 were associated with this revenue recognition method, and 63.0% and 58.0% of Quanta’s revenues recognized during the six months ended June 30, 2025 and 2024 were associated with this revenue recognition method.

Performance Obligations

As of June 30, 2025 and December 31, 2024, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $19.16 billion and $16.76 billion, with 63.4% and 67.1% expected to be recognized in the subsequent twelve months. These amounts represent management’s estimates of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work had not yet begun as of such dates and, to a lesser extent, from certain unit-price contracts with more than an insignificant amount of partially completed units. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under MSAs and expected revenues under certain non-fixed price contracts.

Contract Estimates and Changes in Estimates

Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements and materials; changes in the cost of equipment, commodities, materials or skilled labor; unanticipated costs or claims due to delays or failure to perform by customers or third parties; customer failure to provide, or supply chain and logistical challenges related to, required materials or equipment; errors in engineering, specifications or designs; project modifications; adverse weather conditions, natural disasters, and other emergencies; and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. Any changes in estimates could result in changes to profitability or losses associated with the related performance obligations.

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Additionally, changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated.

As of June 30, 2025 and December 31, 2024, Quanta had recognized revenues of $774.5 million and $733.6 million related to unapproved change orders and claims included as contract price adjustments primarily in “Contract assets” in the accompanying condensed consolidated balance sheets. These change orders and claims were in the process of being negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection. The largest component of the revenues recognized related to unapproved change orders and claims as of June 30, 2025 and December 31, 2024 is associated with a large renewable transmission project in Canada. During the course of construction, the project experienced decreased productivity and additional costs from delays, administrative requirements and labor issues due to the COVID-19 pandemic, including incremental governmental requirements and worksite restrictions, as well as work resequencing and acceleration, access delays, and logistical challenges and other issues outside of Quanta’s control. The project was completed in 2024.

Changes in estimates can result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in prior periods or the reversal of previously recognized revenue if the currently estimated revenue is less than the previous estimate. The impact of a change in contract estimate is measured as the difference between the revenue or gross profit recognized in the prior period as compared to the revenue or gross profit which would have been recognized had the revised estimate been used as the basis of recognition in the prior period. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated.

Revenues were positively impacted by 0.6% and 0.4% during the three months ended June 30, 2025 and 2024 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to March 31, 2025 and 2024. Revenues were positively impacted by a nominal amount and 0.2% during the six months ended June 30, 2025 and 2024 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2024 and 2023. The net impacts resulted from net changes in estimates across a large number of projects, primarily as a result of favorable or unfavorable performance and changes on estimates related to mitigation of risks and contingencies as the projects progressed to completion. These changes were made in the ordinary course of business and there were no changes that resulted in material amounts that should have been recognized in a prior period.

Contract Assets and Liabilities

Contract assets and liabilities consisted of the following (in thousands):

						June 30, 2025						December 31, 2024
Contract assets						$	1,347,057					$	1,208,619
Contract liabilities						$	2,139,490					$	2,149,328

Contract assets and liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and recognized unapproved change orders and contract claims.

During the six months ended June 30, 2025 and 2024, Quanta recognized revenue of approximately $1.69 billion and $1.24 billion related to contract liabilities outstanding as of the end of each respective prior year.

Accounts Receivable, Allowance for Credit Losses and Concentrations of Credit Risk

Quanta determines its allowance for credit losses based on an estimate of expected credit losses for financial instruments, primarily accounts receivable and contract assets. The assessment of the allowance for credit losses involves certain judgments and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Expected credit losses are estimated by evaluating trends with respect to Quanta’s historical write-off experience and applying historical loss ratios to pools of financial assets with similar risk characteristics. Quanta has determined that it has two risk pools for the purpose of calculating its historical credit loss experience.

Quanta’s historical loss ratio and its determination of risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, changes in customers’ ability to pay, and other considerations, such as economic and market changes, changes to regulatory or technological environments

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affecting customers and the consistency between current and forecasted economic conditions and the historical economic conditions used to derive historical loss ratios. At the end of each quarter, management reassesses these and other relevant factors, including the impact of uncertainty and challenges in the overall economy and in Quanta’s industries and markets, (e.g., inflationary pressure, supply chain and other logistical challenges and increased interest rates).

Additional allowance for credit losses is established for financial asset balances with specific customers where collectability has been determined to be improbable based on customer specific facts and circumstances. Quanta considers accounts receivable delinquent after 30 days but, absent certain specific considerations, generally does not consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 120 days outstanding. In addition, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings for significant customers, assessing economic and market conditions and evaluating material changes to a customer’s business, cash flows and financial condition. Should anticipated recoveries relating to receivables fail to materialize, including anticipated recoveries relating to bankruptcies or other workout situations, Quanta could experience reduced cash flows and losses in excess of current allowances provided.

Accounts receivable are written-off against the allowance for credit losses if they are deemed uncollectible.

Activity in Quanta’s allowance for credit losses consisted of the following (in thousands):

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Balance at beginning of period						$	15,551					$	13,955					$	15,185					$	13,962
Increase in provision for credit losses						654						191						1,602						462
Write-offs charged against the allowance net of recoveries of amounts previously written off						(575)						(417)						(1,157)						(695)
Balance at end of period						$	15,630					$	13,729					$	15,630					$	13,729

The above activity relates to the largest risk pool Quanta utilizes for assessing credit loss. The second risk pool represents approximately 10% of Quanta’s consolidated financial instruments as of June 30, 2025 and did not have any allowance for credit loss or experience any credit loss during the periods presented. Quanta’s customers generally have high credit ratings. In addition, the customers in the second risk pool typically pre-approve invoices and often receive project financing.

Provision for credit losses is included in “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

Quanta is subject to concentrations of credit risk related primarily to its receivable position for services Quanta has performed for customers. Quanta grants credit under normal payment terms, generally without collateral. No customer represented 10% or more of Quanta’s consolidated revenues for the three or six months ended June 30, 2025 or 2024, and no customer represented 10% or more of Quanta’s consolidated receivable position as of June 30, 2025 or December 31, 2024.

Certain contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contract and acceptance of the project by the customer. Based on Quanta’s experience in recent years, the majority of these retainage balances are expected to be collected within one year. Retainage balances with expected settlement dates within one year of June 30, 2025 and December 31, 2024 were $763.0 million and $666.5 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond one year were $149.8 million and $143.6 million as of June 30, 2025 and December 31, 2024 and are included in “Other assets, net.”

Quanta recognizes unbilled receivables for non-fixed price contracts within “Accounts receivable” in certain circumstances, such as when revenues have been earned and recorded but the amount cannot be billed under the terms of the contract until a later date or when amounts arise from routine lags in billing. These balances do not include revenues recognized for work performed under fixed-price contracts and unit-price contracts with more than an insignificant amount of partially completed units, as these amounts are recorded as “Contract assets.” As of June 30, 2025 and December 31, 2024, unbilled receivables included in “Accounts receivable” were $996.5 million and $859.9 million. Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $92.1 million and $97.9 million as of June 30, 2025 and December 31, 2024.

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4. SEGMENT INFORMATION:

Quanta’s operations are managed by senior executives who report to its Chief Executive Officer, the chief operating decision maker. The Chief Executive Officer uses operating income for each of Quanta’s reportable segments and considers forecast to actual variances to assess performance and when making decisions about allocating capital, craft skill labor and other resources.

During the three months ending March 31, 2025, Quanta’s Chief Executive Officer reevaluated how performance of the business is assessed and how resources are allocated, which resulted in a change in the reporting of management’s internal financial information. As a result, beginning with the three months ended March 31, 2025, Quanta began reporting the results of its two operating segments, which are also its two reportable segments: (1) Electric Infrastructure Solutions (Electric) and (2) Underground Utility and Infrastructure Solutions (Underground and Infrastructure). The Electric segment consists of the historical Electric Power Infrastructure Solutions and the Renewable Energy Infrastructure Solutions segments. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure.

Electric. Quanta’s Electric segment provides comprehensive services for the electric power, renewable energy, technology and communications markets. Services include, but are not limited to, the design, procurement, new construction, upgrade and repair and maintenance services for electric power transmission and distribution infrastructure, both overhead and underground, and substation facilities, along with other engineering and technical services, including services that support the implementation of upgrades by utilities to modernize and harden the electric power grid in order to ensure its safety and enhance reliability, to interconnect and transmit electricity from renewable energy generation and battery storage facilities and to accommodate increased residential and commercial use of electric vehicles. In addition, this segment provides engineering, procurement, new construction, repowering and repair and maintenance services for power generation facilities, such as utility-scale wind, solar and hydropower generation facilities and battery storage facilities, as well as emergency restoration services, including the repair of infrastructure damaged by fire and inclement weather and the installation of “smart grid” technologies on electric power networks. This segment also provides comprehensive design and construction solutions to wireline and wireless communications companies; electrical systems for technology, commercial and industrial facilities and other load centers, commercial and industrial facilities; and cable multi-system operators and other customers within the communications industry, as well as other related services. Additionally, this segment manufactures power transformers and components for the electric utility, renewable energy, municipal power and industrial markets.

Underground and Infrastructure. Quanta’s Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products. Services include, but are not limited to design, engineering, procurement, new construction, upgrade and repair and maintenance services for natural gas systems for gas utility customers; pipeline construction, protection, integrity testing, rehabilitation and replacement services; and civil solutions. Additionally, Quanta serves the midstream and downstream industrial energy markets through catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services.

Quanta’s segment results are derived from the types of services provided across its operating companies in each of its end user markets. Quanta’s entrepreneurial business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end user markets. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management.

Segment operating expenses (excluding depreciation expense) primarily includes cost of services, such as wages and benefits; subcontractor costs; materials; certain equipment rental and maintenance costs, and other direct and indirect project costs, as well as allocated segment selling, general and administrative expenses. Integrated operations and common administrative support for Quanta’s operating companies require that allocations be made to determine segment profitability, including allocations of certain corporate shared and indirect operating costs as well as general and administrative costs.

Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by the Chief Executive Officer to evaluate segment performance since certain of Quanta’s fixed assets are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is determined quarterly by allocating depreciation expense at each legal entity to Quanta’s reportable segments based on the ratio of each legal entity’s revenue contribution to each of Quanta’s segments.

Corporate and non-allocated costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairment related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.

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The following tables show segment financial information in thousands of dollars for the periods presented. All revenues are from external customers. Segment operating margin is calculated by dividing operating income by revenues.

Three Months Ended June 30, 2025						Electric						Underground and Infrastructure						Total
Revenues						$	5,458,074					$	1,314,933					$	6,773,007
Segment operating expense (excluding segment depreciation expense)						4,851,168						1,198,929						6,050,097
Segment depreciation expense						68,730						25,301						94,031
Segment operating expenses						4,919,898						1,224,230						6,144,128
Equity in earnings on integral unconsolidated affiliates						14,444						—						14,444
Segment operating income						$	552,620					$	90,703					$	643,323
Segment operating margin						10.1		%				6.9		%
Corporate and non-allocated costs (1)																		(273,041)
Total consolidated operating income																		$	370,282

Three Months Ended June 30, 2024						Electric						Underground and Infrastructure (2)						Total
Revenues						$	4,486,880					$	1,107,507					$	5,594,387
Segment operating expense (excluding segment depreciation expense)						4,008,793						1,008,170						5,016,963
Segment depreciation expense						60,092						17,744						77,836
Segment operating expenses						4,068,885						1,025,914						5,094,799
Equity in earnings on integral unconsolidated affiliates						8,586						—						8,586
Segment operating income						$	426,581					$	81,593					$	508,174
Segment operating margin						9.5		%				7.4		%
Corporate and non-allocated costs (1)																		(200,944)
Total consolidated operating income																		$	307,230

Six Months Ended June 30, 2025						Electric						Underground and Infrastructure						Total
Revenues						$	10,402,465					$	2,603,876					$	13,006,341
Segment operating expense (excluding segment depreciation expense)						9,334,013						2,384,936						11,718,949
Segment depreciation expense						135,041						51,370						186,411
Segment operating expenses						9,469,054						2,436,306						11,905,360
Equity in earnings on integral unconsolidated affiliates						27,373						—						27,373
Segment operating income						$	960,784					$	167,570					$	1,128,354
Segment operating margin						9.2		%				6.4		%
Corporate and non-allocated costs (1)																		(518,991)
Total consolidated operating income																		$	609,363

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Six Months Ended June 30, 2024						Electric						Underground and Infrastructure (2)						Total
Revenues						$	8,398,004					$	2,228,202					$	10,626,206
Segment operating expense (excluding segment depreciation expense)						7,571,138						2,056,991						9,628,129
Segment depreciation expense						118,334						42,730						161,064
Segment operating expenses						7,689,472						2,099,721						9,789,193
Equity in earnings on integral unconsolidated affiliates						20,920						—						20,920
Segment operating income						$	729,452					$	128,481					$	857,933
Segment operating margin						8.7		%				5.8		%
Corporate and non-allocated costs (1)																		(395,349)
Total consolidated operating income																		$	462,584

(1) Corporate and non-allocated costs included amortization expense of $113.2 million and $79.2 million and non-cash stock-based compensation of $44.1 million and $37.3 million for the three months ended June 30, 2025 and 2024. Corporate and Non-Allocated Costs for the six months ended June 30, 2025 and 2024 included amortization expense of $222.7 million and $156.7 million and non-cash stock-based compensation of $82.2 million and $72.6 million.

(2) Included in operating expenses (excluding segment depreciation expense) for the Underground and Infrastructure segment during the six months ended June 30, 2024 were losses of $11.2 million related to the disposition of a non-core business.

5. ACQUISITIONS:

On July 25, 2025, Quanta completed the acquisition of Dynamic Systems (DSI), LLC (Dynamic Systems), which provides turnkey mechanical, plumbing and process infrastructure solutions to a diversified customer base that includes technology, semiconductor, healthcare and other load center markets. Dynamic Systems is located in the United States, and its results will primarily be included in the Underground and Infrastructure segment. The upfront consideration, subject to certain adjustments, was approximately $1.35 billion, consisting of cash and approximately $200 million of Quanta common stock. Additionally, the former owner of Dynamic Systems is eligible for a potential contingent consideration payment of up to $216.0 million to the extent certain financial performance targets are achieved by Dynamic Systems during a two-year post-acquisition period beginning in January 2026. The final amount of consideration for the acquisition remains subject to certain post-closing adjustments, including with respect to net working capital (inclusive of cash) and certain assumed liabilities. Additionally, Quanta is in the process of performing procedures to determine the consideration and fair value of assets acquired and liabilities assumed related to the acquisition of Dynamic Systems, including the fair value assessment of contingent consideration.

During the six months ended June 30, 2025, Quanta acquired four businesses, including two businesses located in the United States that specialize in civil solutions, including site clearing, earthwork, soil stabilization and infrastructure development (which will be included in Underground and Infrastructure segment), a business located in Australia that specializes in electrical engineering and the design and manufacturing of industrial technology solutions (which will be included in both the Electric and Underground and Infrastructure segments), and a business located in the United States that specializes in utility construction and related support services (which will primarily be included in the Electric segment). The consideration for these transactions consisted of approximately $599.3 million in cash on the dates of the acquisitions and 515,822 shares of Quanta common stock, which had a fair value of $161.6 million as of the respective acquisition dates. The final amount of consideration for these acquisitions remains subject to certain post-closing adjustments, including with respect to net working capital, tax estimates and other contractually agreed-upon adjustments to consideration. Additionally, pursuant to the terms of the agreements, the former owners of certain of these businesses are eligible to receive payments of contingent consideration of up to approximately $127.9 million to the extent the acquired businesses achieve certain financial and operating performance targets over a three-year period. As of the dates of the respective acquisitions, the fair value of the contingent consideration liabilities related to certain of these acquisitions was $54.9 million.

On July 17, 2024, Quanta completed the acquisition of Cupertino Electric, Inc. (CEI), which provides electrical infrastructure solutions, including engineering, procurement, project management, construction and modularization services, to the technology, renewable energy and infrastructure and commercial industries. CEI is located in the United States, and its

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results have been included in the Electric segment since the acquisition date. The aggregate consideration for the acquisition was approximately $2.04 billion, which included approximately $1.65 billion in cash, including payment for cash held by CEI as of the acquisition date, and 882,926 shares of Quanta common stock, which had a fair value of $216.3 million as of the acquisition date. The cash consideration paid by Quanta, net of cash received from CEI, was $1.24 billion. Additionally, the former equity holders and award holders of CEI are eligible for a contingent consideration payment of up to $200.0 million based on achievement of certain financial performance targets during the three-year post-acquisition period beginning in January 2025. To the extent payable, Quanta, at its sole discretion, can pay up to 10% of any such contingent consideration amount in Quanta common stock. As of the acquisition date, the fair value of the contingent consideration liability was $164.0 million.

During the year ended December 31, 2024, Quanta also acquired seven additional businesses located in the United States, including: a business that provides specialty environmental solutions to utility, industrial and petrochemical companies (primarily included in the Underground and Infrastructure segment); a business that specializes in testing, manufacturing and distributing safety equipment and supplies (primarily included in the Electric segment); a business that specializes in electrical infrastructure services for substations, data centers and governmental entities (primarily included in the Electric segment); a business that manufactures transmission and distribution equipment for the electric utility industry (primarily included in the Electric segment); a business that provides services and equipment related to aerial telecommunications infrastructure and networks (primarily included in the Electric segment); a business that provides services related to fiber optic networks (primarily included in the Electric segment); and a business that specializes in designing, manufacturing, and distributing liquid-filled power transformers primarily for electrical companies and utilities (primarily included in the Electric segment). The consideration for these businesses consisted of approximately $540.9 million in cash and 334,472 shares of Quanta common stock, which had a fair value of $74.8 million as of the acquisition dates. As of the dates of the respective acquisitions, the fair value of the contingent consideration liabilities related to certain of these acquisitions was $24.3 million.

The results of operations of acquired businesses have been included in Quanta’s consolidated financial statements since their respective acquisition dates. Additionally, the former owners of certain acquired businesses are eligible to receive potential payments of contingent consideration to the extent the acquired businesses achieve certain financial performance targets over specified post-acquisition periods.

Purchase Price Allocation

Quanta is finalizing its purchase price allocations related to certain businesses acquired subsequent to June 30, 2024, and further adjustments to the purchase price allocations may occur, with possible updates primarily related to intangible asset values, property and equipment values, certain contingent liabilities, tax estimates, and the finalization of closing working capital adjustments and other contractually agreed-upon adjustments to consideration. The aggregate consideration for businesses acquired between June 30, 2024 and June 30, 2025 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $605.7 million to net tangible assets, $985.7 million to identifiable intangible assets and $1.36 billion to goodwill.

The following table summarizes the estimated fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates as of June 30, 2025 for

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acquisitions completed in the six months ended June 30, 2025 (in thousands):

						June 30, 2025
Consideration:
Cash						$	599,252
Value of Quanta common stock issued						161,554
Contingent consideration						54,878
Fair value of total consideration transferred or estimated to be transferred						$	815,684
Cash and cash equivalents						$	32,874
Accounts receivable						138,209
Contract assets						8,322
Prepaid expenses and other current assets						7,750
Property and equipment						96,754
Other assets						5,657
Identifiable intangible assets						285,969
Accounts payable and accrued expenses						(68,334)
Contract liabilities						(27,034)
Other non-current liabilities						(3,942)
Deferred income taxes						(1,162)
Total identifiable net assets						475,063
Goodwill						340,621
Fair value of net assets acquired						$	815,684

Goodwill represents the amount by which the purchase price for an acquired business exceeds the net fair value of the identifiable assets acquired and liabilities assumed. The acquisitions completed during the six months ended June 30, 2025 contributed to the recognition of goodwill by strategically expanding Quanta’s Electric and Underground and Infrastructure segments, primarily in the U.S. As of June 30, 2025, approximately $323.2 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in the six months ended June 30, 2025.

Quanta’s identifiable intangible assets subject to amortization include customer relationships, backlog, trade names, non-compete agreements, and patented rights and other. The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the six months ended June 30, 2025 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).

						Six Months Ended June 30, 2025
						Estimated Fair Value						Weighted Average Amortization Period in Years
Customer relationships						$	225,889					6.3
Backlog						32,635						2.6
Trade names						26,366						15.0
Non-compete agreements						1,079						5.0
Total intangible assets subject to amortization						$	285,969					6.6

The level of inputs used for these identifiable intangible asset fair value measurements is Level 3.

The significant assumptions used by management in determining the fair values of customer relationships include future revenues, margins, discount rates and customer attrition rates. The following table includes the discount rates and customer attrition rates used to determine the fair value of customer relationships for businesses acquired during the six months ended

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(Unaudited)

June 30, 2025 as of the respective acquisition dates:

						Six Months Ended
						June 30, 2025
						Range						Weighted Average
Discount rates						16% to 20%						19%
Customer attrition rates						15% to 30%						16%

Contingent Consideration

As described above, certain business acquisitions have contingent consideration liabilities associated with the transactions. The aggregate fair value of outstanding contingent consideration liabilities for acquisitions completed prior to June 30, 2025 and their classification in the accompanying condensed consolidated balance sheets is as follows (in thousands):

						June 30, 2025						December 31, 2024
Accounts payable and accrued expenses						$	4,254					$	152,030
Insurance and other non-current liabilities						251,948						192,954
Total contingent consideration liabilities						$	256,202					$	344,984

The estimated fair values of these contingent consideration liabilities are measured on a recurring basis using a probability-weighted discounted cash flow method, which considers significant inputs not observable in the market and are Level 3 inputs.

Quanta’s aggregate contingent consideration liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, accretion in present value, changes in estimated fair value, the performance of acquired businesses in post-acquisition periods, the incremental impact on Quanta’s performance attributable to an acquired business and in certain cases, management discretion. These changes are reflected in “Change in fair value of contingent consideration liabilities” in the accompanying condensed consolidated statements of operations.

All of Quanta’s outstanding contingent consideration liabilities are each subject to a maximum payment amount, and the aggregate maximum payment amount of these liabilities for acquisitions completed prior to June 30, 2025 totaled $396.9 million as of June 30, 2025. During the six months ended June 30, 2025, Quanta made cash payments of $106.8 million and issued 158,040 shares of its common stock to settle contingent consideration liabilities. During the six months ended June 30, 2024, Quanta did not settle any contingent consideration liabilities.

Pro Forma Results of Operations

The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the six months ended June 30, 2025 and the year ended December 31, 2024, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands).

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Revenues						$	6,806,575					$	6,271,538					$	13,093,168					$	12,000,881
Net income attributable to common stock						$	229,646					$	179,903					$	374,719					$	287,729

The pro forma combined results of operations for the three and six months ended June 30, 2025 and 2024 were prepared by adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2025 as if such acquisitions had occurred January 1, 2024. The pro forma combined results of operations for the three and six months ended June 30, 2024 were prepared by further adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2024 as if such acquisitions had occurred January 1, 2023. These pro forma combined historical results were adjusted for the following: a reduction of interest and other financing expenses as a result of the repayment of outstanding indebtedness of the acquired businesses; an increase in interest and other financing expenses as a result of the debt incurred by Quanta for the purpose of financing the acquisition of CEI and cash consideration paid for all acquired businesses; an increase in amortization expense due to the intangible assets recorded; elimination of inter-company sales; and changes in depreciation

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expense to adjust acquired property and equipment to the acquisition date fair value and to conform with Quanta’s accounting policies. The pro forma combined results of operations do not include any adjustments to eliminate the impact of acquisition-related costs incurred by Quanta or acquired businesses or any cost savings or other synergies that resulted or may result from the acquisitions.

Impact on Consolidated Results of Operations Related to Acquisitions

Included in Quanta’s condensed consolidated results of operations for the three months ended June 30, 2025 were revenues of $115.6 million and income before income taxes of $3.0 million related to the acquisitions completed in 2025. Included in Quanta’s condensed consolidated results of operations for the six months ended June 30, 2025 were revenues of $212.5 million and income before income taxes of $2.3 million related to the acquisitions completed in 2025. Included in Quanta’s condensed consolidated results of operations for the three months ended June 30, 2024 were revenues of $76.6 million and a loss before income taxes of $4.7 million related to the acquisitions completed in 2024. Included in Quanta’s condensed consolidated results of operations for the six months ended June 30, 2024 were revenues of $144.3 million and a loss before income taxes of $13.8 million related to the acquisitions completed in 2024.

Included in Quanta’s condensed consolidated results of operations for the three and six months ended June 30, 2025 were acquisition costs of $6.6 million and $13.1 million related to the acquisitions completed in 2025. Included in Quanta’s condensed consolidated results of operations for the three and six months ended June 30, 2024 were acquisition costs of $4.3 million and $10.2 million related to the acquisitions completed in 2024.

6. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES:

Equity Investments

The following table presents Quanta’s equity investments by type (in thousands):

						June 30, 2025						December 31, 2024
Equity method investments - integral unconsolidated affiliates						$	270,501					$	101,460
Equity method investments - non-integral unconsolidated affiliates						86,163						77,617
Non-marketable equity securities						78,107						62,539
Total equity investments						$	434,771					$	241,616

Equity Method Investments

During the three months ended June 30, 2025, Quanta acquired a 40.0% equity interest in a company that specializes in harvesting, treating and manufacturing wood utility poles and laminated wood products for utility and telecommunication companies. Quanta’s investment is accounted for as an equity method investment and the investee is considered to be an integral unconsolidated affiliate.

During the six months ended June 30, 2024, Quanta sold a non-integral equity method investment and recognized a $12.6 million gain, $5.0 million of which was attributable to non-controlling interests. Also during the six months ended June 30, 2024, Quanta received $35.4 million in cash related to the sale of this investment, $5.0 million of which was distributed to non-controlling interests.

As of June 30, 2025 and December 31, 2024, Quanta had receivables of $175.3 million and $133.3 million from its unconsolidated affiliates and payables of $35.5 million and $15.4 million to its unconsolidated affiliates. Quanta recognized revenues of $45.8 million and $57.7 million during the three months ended June 30, 2025 and 2024 and $96.9 million and $116.7 million during the six months ended June 30, 2025 and 2024 from services provided to its unconsolidated affiliates. The receivables balances and revenues recognized are primarily related to services provided to LUMA Energy, LLC at cost. In addition, during the three months ended June 30, 2025 and 2024, Quanta recognized costs of services of $129.9 million and $100.3 million for services provided to Quanta by other unconsolidated affiliates. During the six months ended June 30, 2025 and 2024, Quanta recognized costs of services of $224.8 million and $189.2 million for services provided by other unconsolidated affiliates.

Total equity in earnings from integral unconsolidated affiliates was $14.4 million and $8.6 million for the three months ended June 30, 2025 and 2024 and $27.4 million and $20.9 million for the six months ended June 30, 2025 and 2024. Total equity in losses from non-integral unconsolidated affiliates was $0.5 million and $0.5 million for the three months ended

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(Unaudited)

June 30, 2025 and 2024. Total equity in losses from non-integral unconsolidated affiliates was $0.4 million for the six months ended June 30, 2025 and total equity in earnings from non-integral unconsolidated affiliates was $3.1 million for the six months ended June 30, 2024. Equity in losses and earnings from non-integral unconsolidated affiliates are included in “Other income, net” in the accompanying condensed consolidated statements of operations. As of June 30, 2025, Quanta had $61.0 million of undistributed earnings from unconsolidated affiliates.

Any difference between Quanta’s carrying value and the underlying equity in the net assets of its equity investments is assigned to the assets and liabilities of the investment, gives rise to a basis difference, which was $172.7 million and $44.5 million as of June 30, 2025 and December 31, 2024. The amortization of the basis difference is primarily included in “Equity in earnings of integral unconsolidated affiliates” in the accompanying condensed consolidated statements of operations and was $1.8 million and $1.3 million for the three months ended June 30, 2025 and 2024 and $2.6 million and $2.7 million for the six months ended June 30, 2025 and 2024.

7. PER SHARE INFORMATION:

The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands):

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Amounts attributable to common stock:
Net income attributable to common stock						$	229,250					$	188,159					$	373,508					$	306,519
Weighted average shares:
Weighted average shares outstanding for basic earnings per share attributable to common stock						148,448						146,580						148,361						146,258
Effect of dilutive unvested non-participating stock-based awards						2,475						3,208						2,576						3,329
Weighted average shares outstanding for diluted earnings per share attributable to common stock						150,923						149,788						150,937						149,587

8. DEBT OBLIGATIONS:

Quanta’s long-term debt obligations consisted of the following (in thousands):

						June 30, 2025						December 31, 2024
4.75% Senior Notes due August 2027						$	600,000					$	600,000
2.90% Senior Notes due October 2030						1,000,000						1,000,000
2.35% Senior Notes due January 2032						500,000						500,000
5.25% Senior Notes due August 2034						650,000						650,000
3.05% Senior Notes due October 2041						500,000						500,000
Borrowings under senior credit facility (including Term Loan)						693,750						735,445
Borrowings under commercial paper program						600,000						—
Lease financing transactions						175,332						155,549
Other long-term debt						3,368						4,939
Finance leases						47,242						47,993
Unamortized discount and financing costs						(29,067)						(31,490)
Total long-term debt obligations						4,740,625						4,162,436
Less — Current maturities of long-term debt						86,782						62,680
Total long-term debt obligations, net of current maturities						$	4,653,843					$	4,099,756

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Senior Notes

The interest amounts due on Quanta’s senior notes on each payment date are set forth below (dollars in thousands):

Title of the Notes						Interest Amount						Payment Dates						Commencement Date
4.75% Senior Notes due August 2027						$	14,250					February 9 and August 9						February 9, 2025
2.90% Senior Notes due October 2030						$	14,500					April 1 and October 1						April 1, 2021
2.35% Senior Notes due January 2032						$	5,875					January 15 and July 15						July 15, 2022
5.25% Senior Notes due August 2034						$	17,063					February 9 and August 9						February 9, 2025
3.05% Senior Notes due October 2041						$	7,625					April 1 and October 1						April 1, 2022

The fair value of Quanta’s senior notes was $2.98 billion as of June 30, 2025, compared to a carrying value of $3.22 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $28.3 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities.

Senior Credit Facility

As of June 30, 2025, the credit agreement for Quanta’s senior credit facility provided for a $750.0 million term loan facility and aggregate revolving commitments of $2.80 billion. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Maximum amount outstanding						$	761,550					$	888,448					$	761,550					$	888,448
Average daily amount outstanding						$	694,775					$	872,133					$	707,584					$	856,714
Weighted-average interest rate						5.63		%				6.76		%				5.68		%				6.78		%

As of June 30, 2025, Quanta was in compliance with all of the financial covenants under the credit agreement.

Term Loan. As of June 30, 2025, Quanta had $693.8 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate. The maturity date for the term loan facility is October 8, 2026.

Revolving Loans. As of June 30, 2025, Quanta had no outstanding revolving loans under the senior credit facility.

Letters of Credit. As of June 30, 2025, Quanta had $69.1 million of letters of credit issued under the senior credit facility, of which $68.7 million were denominated in U.S. dollars and $0.4 million were denominated primarily in Canadian and Australian dollars. Additionally, available commitments for revolving loans under the senior credit facility must be maintained in order to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under the senior credit facility.

As of June 30, 2025, $2.13 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.

Subsequent to June 30, 2025, Quanta extended the maturity date for revolving loans under the credit agreement for its senior credit facility from July 31, 2029 to July 31, 2030.

Commercial Paper Program

As of June 30, 2025, Quanta had $600.0 million of outstanding unsecured notes under its commercial paper program, with a weighted average interest rate of 4.75%. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, and all notes currently have a short maturity.

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Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands):

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2025						2024						2025						2024
Maximum amount outstanding						$	897,500					$	554,500					$	897,500					$	705,900
Average daily amount outstanding						$	591,190					$	301,786					$	383,818					$	258,930
Weighted-average interest rate						4.90		%				5.55		%				4.82		%				5.67		%

On July 25, 2025, Quanta utilized $700.0 million of borrowings under its commercial paper program and availability under its revolving credit facility to finance the cash portion of the acquisition of Dynamic Systems.

Additional Letters of Credit

As of June 30, 2025, Quanta had $669.2 million of letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars.

9. INCOME TAXES:

Quanta’s effective tax rates for the three months ended June 30, 2025 and 2024 were 26.7% and 28.2%. The lower effective tax rate for the three months ended June 30, 2025 was primarily due to the recognition, as a component of Quanta’s annual effective tax rate, of certain tax credits generated during the year ended December 31, 2025.

Quanta’s effective tax rates for the six months ended June 30, 2025 and 2024 were 24.6% and 23.2%. The higher effective tax rate for the six months ended June 30, 2025 was primarily due to a lower tax benefit from vested equity incentive awards. This benefit impacted the effective tax rate for the six months ended June 30, 2025 by $14.7 million, compared to $22.4 million for the six months ended June 30, 2024.

Quanta regularly evaluates valuation allowances established for deferred tax assets (DTAs) for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of DTAs is dependent upon the generation of future taxable income in the jurisdiction of the DTAs during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize DTAs to the extent estimated.

As of June 30, 2025, the total amount of unrecognized tax benefits relating to uncertain tax positions was $81.6 million, a net increase of $7.5 million from December 31, 2024, which resulted from positions expected to be taken in 2025. Quanta’s consolidated federal income tax returns for tax years 2017, 2018, and 2021 through 2023 remain open to examination by the IRS, as the applicable statute of limitations periods have not yet expired. Additionally, various state and foreign tax returns filed by Quanta and certain subsidiaries for multiple periods remain under examination by various U.S. state and foreign tax authorities. Quanta does not consider any U.S. state in which it does business to be a major tax jurisdiction. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $13.4 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods.

On July 4, 2025, the U.S. government enacted new tax legislation pursuant to Public Law No: 119-21 (also known as One Big Beautiful Bill). Since this legislation was enacted subsequent to June 30, 2025, the impact of any changes resulting from the legislation were not reflected in Quanta’s condensed consolidated financial statements as of and for the three and six months ended June 30, 2025. Quanta is currently evaluating the provisions of the legislation to assess the potential impact on the effective tax rate, deferred tax assets and liabilities, and future cash tax obligations. While Quanta’s preliminary analysis does not indicate a material impact, the ultimate effect will depend on a number of factors, including the issuance of regulatory guidance and further interpretation of the legislation. Quanta will continue to monitor developments and will recognize any required adjustments in the period in which the analysis is complete and the impacts can be quantified with reasonable certainty.

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(Unaudited)

10. EQUITY:

Stock Repurchases

On May 23, 2023, Quanta’s Board of Directors approved a stock repurchase program that authorizes Quanta to purchase, from time to time through June 30, 2026, up to $500 million of its outstanding common stock. During the three months ended June 30, 2025, Quanta repurchased 67,172 shares of its common stock in the open market under its stock repurchase program for $16.0 million. During the six months ended June 30, 2025, Quanta repurchased 538,559 shares of its common stock in the open market under its stock repurchase program for $134.6 million. As of June 30, 2025, $365.1 million remained available under this repurchase program.

Repurchases may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion, based on market and business conditions, applicable contractual and legal requirements and other factors. Quanta is not obligated to acquire any specific amount of common stock, and the repurchase program may be modified or terminated by Quanta’s Board of Directors at any time at its sole discretion and without notice.

Dividends

Quanta declared the following cash dividends and cash dividend equivalents during 2024 and the first six months of 2025 (in thousands, except per share amounts):

Declaration						Record						Payment						Dividend						Dividends
Date						Date						Date						Per Share						Declared
May 22, 2025						July 1, 2025						July 11, 2025						$	0.10					$	15,104
March 21, 2025						April 3, 2025						April 11, 2025						$	0.10					$	15,089
November 20, 2024						January 2, 2025						January 13, 2025						$	0.10					$	15,074
August 28, 2024						October 1, 2024						October 11, 2024						$	0.09					$	13,532
May 23, 2024						July 1, 2024						July 12, 2024						$	0.09					$	13,521
March 28, 2024						April 9, 2024						April 17, 2024						$	0.09					$	13,477

11. STOCK-BASED COMPENSATION:

Restricted Stock Units (RSUs) to be Settled in Common Stock

A summary of the activity for RSUs to be settled in common stock for the six months ended June 30, 2025 and 2024 is as follows (RSUs in thousands):

			2025												2024
			RSUs						Weighted Average Grant Date Fair Value (Per Unit)						RSUs						Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1			2,024						$173.32						2,548						$104.76
Granted			506						$274.46						581						$237.81
Vested			(516)						$163.89						(653)						$112.69
Forfeited			(61)						$187.76						(110)						$156.63
Unvested at June 30			1,953						$201.57						2,366						$133.10

The approximate fair value of RSUs that vested during the six months ended June 30, 2025 and 2024 was $130.8 million and $157.3 million.

During the six months ended June 30, 2025 and 2024, Quanta recognized $66.7 million and $53.3 million of non-cash stock compensation expense related to RSUs to be settled in common stock. As of June 30, 2025, there was $268.5 million of total unrecognized compensation expense related to unvested RSUs to be settled in common stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 2.71 years.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Performance Stock Units (PSUs) to be Settled in Common Stock

A summary of the activity for PSUs to be settled in common stock for the six months ended June 30, 2025 and 2024 is as follows (PSUs in thousands):

			2025												2024
			PSUs						Weighted Average Grant Date Fair Value (Per Unit)						PSUs						Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1			425						$177.69						491						$129.70
Granted			92						$259.17						109						$263.34
Vested			(165)						$123.88						(175)						$96.45
Unvested at June 30			352						$224.11						425						$177.69

The Monte Carlo simulation valuation methodology applied the following key inputs:

						2025						2024
Valuation date price based on February 27, 2025 and March 4, 2024 closing stock prices of Quanta common stock						$259.26						$243.34
Expected volatility (1)						34		%				33		%
Risk-free interest rate						4.05		%				4.43		%
Term in years						2.84						2.83

(1) The expected volatility inputs for Quanta are based on historical volatility, which is based on Quanta’s dividend-adjusted closing prices over a period equivalent to the performance period.

During the six months ended June 30, 2025 and 2024, Quanta recognized $15.5 million and $19.3 million of non-cash stock compensation expense related to PSUs to be settled in common stock.

As of June 30, 2025, there was an estimated $44.5 million of total unrecognized compensation expense related to unearned and unvested PSUs. This amount is based on forecasted attainment of performance metrics and estimated forfeitures of unearned and unvested PSUs. The compensation expense related to outstanding PSUs can vary from period to period based on changes in forecasted achievement of established performance goals and the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such PSUs. This cost is expected to be recognized over a weighted average period of 1.87 years.

During each of the six months ended June 30, 2025 and 2024, 0.3 million shares of common stock were issued in connection with earned and vested PSUs. The approximate fair values of PSUs earned and vested during the six months ended June 30, 2025 and 2024 were $83.9 million and $75.4 million.

12. EMPLOYEE BENEFIT PLANS:

Deferred Compensation Plans

Quanta maintains non-qualified deferred compensation plans under which eligible directors and key employees may defer their receipt of certain cash compensation and/or the settlement of certain stock-based awards. As of June 30, 2025 and December 31, 2024, the liability related to deferred cash compensation under these plans, including amounts contributed by Quanta, was $119.3 million and $110.2 million, the majority of which was included in “Insurance and other non-current liabilities” in the accompanying condensed consolidated balance sheets. Additionally, as of June 30, 2025 and December 31, 2024, the settlement and issuance of 137,589 and 154,991 shares of common stock underlying certain stock-based awards had been deferred under these plans, and such issuances are scheduled to occur in future periods.

To provide for future obligations related to deferred cash compensation under these plans, Quanta has invested in corporate-owned life insurance (COLI) policies covering certain participants in the deferred compensation plans, the underlying investments of which are intended to be aligned with the investment alternatives elected by plan participants. The COLI assets are recorded at their cash surrender value, which is considered their fair market value, and as of June 30, 2025 and December 31, 2024, the fair market values were $113.0 million and $102.7 million and were included in “Other assets, net” in the accompanying condensed consolidated balance sheets. The level of inputs for these fair value measurements is Level 2.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Changes in the fair market value of Quanta’s COLI assets and deferred compensation liabilities largely offset and are recorded in the accompanying statements of operations as follows (in thousands):

									Three Months Ended												Six Months Ended
									June 30,												June 30,
Classification			Change in fair market value of						2025						2024						2025						2024
Loss included in Selling, general and administrative expenses			Deferred compensation liabilities						$	(8,989)					$	(2,035)					$	(7,367)					$	(8,548)
Other income, net			COLI assets						$	8,587					$	1,801					$	6,427					$	7,851

13. COMMITMENTS AND CONTINGENCIES:

Legal Proceedings

Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, property damage, breach of contract, negligence or gross negligence, environmental liabilities, wage and hour and other employment-related damages, punitive damages, consequential damages, civil penalties or other losses, or injunctive or declaratory relief, as well as interest and attorneys’ fees associated with such claims. With respect to all such lawsuits, claims and proceedings, Quanta records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible.

The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. In all instances, management has assessed the matter based on current information and made a judgment concerning its potential outcome, giving due consideration to the nature of the claim, the amount and nature of damages sought and the probability of success and taking into account, among other things, negotiations with claimants, discovery, settlements and payments, judicial rulings, arbitration and mediation decisions, advice of internal and external legal counsel, and other information and events pertaining to a particular matter. Costs incurred for litigation are expensed as incurred. Except as otherwise stated below, none of these proceedings are expected to have a material adverse effect on Quanta’s consolidated financial position, results of operations or cash flows. However, management’s judgment may prove materially inaccurate, and such judgment is made subject to the known uncertainties of litigation.

Silverado Wildfire Matter

From 2022 to present, two of Quanta’s subsidiaries received tenders of defense and demands for preservation of evidence from Southern California Edison Company (SCE) related to lawsuits filed against SCE and T-Mobile USA, Inc. (T-Mobile) in the Superior Court of California, County of Orange. The lawsuits generally assert property damage and related claims on behalf of certain individuals and subrogation claims on behalf of insurers relating to damages caused by a wildfire that began in October 2020 in Orange County, California (the Silverado Fire) and that is purported to have damaged approximately 13,000 acres. The lawsuits allege the Silverado Fire originated from utility poles in the area, generally claiming that each defendant failed to adequately maintain, inspect, repair or replace its overhead facilities, equipment and utility poles and remove vegetation in the vicinity; that the utility poles were overloaded with equipment from shared usage; and that SCE failed to de-energize its facilities during red flag warnings for a Santa Ana wind event. The lawsuits allege the Silverado Fire started when SCE and T-Mobile equipment contacted each other and note the Orange County Fire Department is investigating whether a T-Mobile lashing wire contacted an SCE overhead primary conductor in high winds. T-Mobile has filed cross-complaints against SCE alleging, among other things, that the ignition site of the Silverado Fire encompassed two utility poles replaced by SCE or a third party engaged by SCE, and that certain equipment, including T-Mobile’s lashing wire, was not sufficiently re-secured after the utility pole replacements. One of Quanta’s subsidiaries performed planning and other services related to the two utility poles, and another Quanta subsidiary replaced the utility poles and reattached the electrical and telecommunication equipment to the new utility poles in March 2019, approximately 19 months before the Silverado Fire. Pursuant to the general terms of a master services agreement and a master consulting services agreement between the Quanta subsidiaries and SCE, the subsidiaries agreed to defend and indemnify SCE against certain claims arising with respect to performance or nonperformance under the agreements. The SCE tender letters seek contractual indemnification and defense from Quanta’s subsidiaries for the claims asserted against SCE in the lawsuits and the T-Mobile cross-complaints.

Quanta’s subsidiaries intend to vigorously defend against the lawsuits, the T-Mobile cross-complaints and any other claims asserted in connection with the Silverado Fire. Quanta will continue to review additional information in connection with

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(Unaudited)

this matter as litigation and resolution efforts progress, and any such information may potentially allow Quanta to determine an estimate of potential loss, if any. As of June 30, 2025, Quanta had not recorded an accrual with respect to this matter, and Quanta is currently unable to reasonably estimate a range of reasonably possible loss, if any, because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability. Quanta also believes that to the extent its subsidiaries are determined to be liable for any damages resulting from this matter, its insurance would be applied to any such liabilities over its deductible amount and its insurance coverage would be adequate to cover such potential liabilities. However, the ultimate amount of any potential liability and insurance coverage in connection with this matter remains subject to uncertainties associated with pending and potential future litigation.

Insurance

Quanta is insured for, among other things, employer’s liability, workers’ compensation, auto liability, aviation and general liability claims. Quanta manages and maintains a portion of its risk through retentions and/or high deductibles, as well as, both directly and indirectly, through its wholly-owned captive insurance company. The captive insurance company reimburses all claims up to the amount of the applicable deductible of any third-party insurance programs, as well as certain additional exposure related to the general and auto liability programs, which together, in certain circumstances, can be up to $70.0 million per occurrence. As a supplement to its high-deductible primary insurance and captive programs, Quanta maintains insurance with excess insurance carriers for potential losses that exceed the amount of Quanta’s deductible and captive insurance obligations. Quanta renews its insurance policies on an annual basis, and therefore deductibles, captive insurance and/or reinsurance amounts, and levels of insurance coverage, may change in future periods. In addition, insurers may cancel Quanta’s coverage or determine to exclude certain items from coverage, or Quanta may elect not to obtain certain types or levels of insurance based on the potential benefits considered relative to the cost of such insurance or increase the amounts subject to self-insurance, deductibles or retention.

As of June 30, 2025 and December 31, 2024, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability, and group health claims totaled $448.9 million and $400.2 million, of which $293.2 million and $263.3 million are included in “Insurance and other non-current liabilities,” and the remainder is included in “Accounts payables and accrued expenses.” Related insurance recoveries/receivables as of June 30, 2025 and December 31, 2024 were $4.2 million and $4.9 million, of which $0.2 million and $0.8 million are included in “Prepaid expenses and other current assets” and $4.0 million and $4.1 million are included in “Other assets, net.” Losses under these insurance programs are accrued based upon Quanta’s estimate of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries. These insurance liabilities are difficult to assess and estimate due to unknown factors, including the severity of an injury, the extent of damage, the determination of Quanta’s liability in proportion to other parties, the number of incidents not reported and the overall claims environment. The accruals are based upon known facts and historical trends, and management believes such accruals are adequate.

Bonds

As of June 30, 2025, the total amount of the outstanding performance bonds was estimated to be approximately $11.7 billion. Quanta’s estimated maximum exposure related to the value of the performance bonds outstanding is lowered on each bonded project as the cost to complete is reduced, and each commitment under a performance bond generally extinguishes concurrently with the expiration of its related contractual obligation.

14. DETAIL OF CERTAIN ACCOUNTS:

Cash and Cash Equivalents

As of June 30, 2025 and December 31, 2024, cash equivalents were $306.2 million and $347.5 million and consisted primarily of money market investments, money market mutual funds and short-term deposits.

Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations. Amounts related to cash and cash equivalents held by

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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consolidated or proportionately consolidated joint ventures and the captive insurance company, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):

						June 30, 2025						December 31, 2024
Cash and cash equivalents held by domestic joint ventures						$	38,942					$	71,646
Cash and cash equivalents held by foreign joint ventures						10,119						10,088
Total cash and cash equivalents held by joint ventures						49,061						81,734
Cash and cash equivalents held by captive insurance company						20,330						19,445
Cash and cash equivalents not held by joint ventures or captive insurance company						440,069						640,781
Total cash and cash equivalents						$	509,460					$	741,960

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

						June 30, 2025						December 31, 2024
Prepaid expenses						$	451,912					$	268,093
Other current assets						195,834						201,245
Prepaid expenses and other current assets						$	647,746					$	469,338

As of June 30, 2025 and December 31, 2024, prepaid expenses primarily include prepaid job costs, prepaid insurance expense and prepaid software expense.

Other Intangible Assets

Quanta’s identifiable intangible assets were as follows (in thousands):

						June 30, 2025						December 31, 2024
Customer relationships						$	2,636,906					$	2,405,606
Backlog						476,860						442,459
Trade names						596,409						569,307
Non-compete agreements						63,023						61,589
Patented rights, developed technology, process certifications and other						35,355						35,317
Curriculum						15,979						15,618
Other intangible assets subject to amortization						3,824,532						3,529,896
Accumulated amortization						(1,902,589)						(1,672,359)
Other intangible assets subject to amortization, net						1,921,943						1,857,537
Engineering license						3,000						3,000
Other intangible assets, net						$	1,924,943					$	1,860,537

Property and Equipment

Accumulated depreciation related to property and equipment was $2.10 billion and $1.96 billion as of June 30, 2025 and December 31, 2024. In addition, Quanta held property and equipment, net of $186.2 million and $177.9 million in foreign countries, primarily Canada, as of June 30, 2025 and December 31, 2024.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in thousands):

						June 30, 2025						December 31, 2024
Accounts payable, trade						$	2,344,092					$	2,096,125
Accrued compensation and related expenses						648,989						651,893
Other accrued expenses						657,641						974,325
Accounts payable and accrued expenses						$	3,650,722					$	3,722,343

As of June 30, 2025, other accrued expenses primarily include the current portion of accrued insurance liabilities as further described in Note 13 and unearned revenues. As of December 31, 2024, other accrued expenses primarily include these same items as well as income and franchise taxes payable and contingent consideration as further described in Note 5.

15. SUPPLEMENTAL CASH FLOW INFORMATION:

Restricted cash includes any cash that is legally restricted as to withdrawal or usage. Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands):

						June 30,
						2025						2024
Cash and cash equivalents						$	509,460					$	518,140
Restricted cash included in “Prepaid expenses and other current assets”						1,406						2,243
Restricted cash included in “Other assets, net”						1,887						1,364
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows						$	512,753					$	521,747

						December 31,
						2024						2023
Cash and cash equivalents						$	741,960					$	1,290,248
Restricted cash included in “Prepaid expenses and other current assets”						2,686						3,652
Restricted cash included in “Other assets, net”						1,364						1,141
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows						$	746,010					$	1,295,041

Additional supplemental cash flow information is as follows (in thousands):

												Six Months Ended
												June 30,
																		2025						2024
Cash (paid) received during the period for:
Interest paid																		$	(105,759)					$	(80,807)
Income taxes paid (1)																		$	(293,128)					$	(101,778)
Income tax refunds																		$	5,583					$	1,355

(1) Income taxes paid during the six months ended June 30, 2025 include $8.9 million for the purchase of transferable tax credits from third parties.

Accrued capital expenditures were $20.0 million and $26.7 million as of June 30, 2025 and 2024. The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying condensed consolidated statements of cash flows due to their non-cash nature.