Item 1. Financial Statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share information)

(Unaudited)

						March 31, 2026						December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents						$	364,761					$	439,508
Accounts receivable, net						7,597,966						6,847,091
Contract assets						1,609,786						1,522,186
Inventories						446,891						370,372
Prepaid expenses and other current assets						633,233						724,260
Total current assets						10,652,637						9,903,417
Property and equipment, net						3,513,445						3,455,204
Operating lease right-of-use assets						404,455						400,814
Other assets, net						1,046,511						944,050
Other intangible assets, net						2,724,223						2,906,188
Goodwill						7,405,347						7,317,228
Total assets						$	25,746,618					$	24,926,901
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt						$	689,694					$	763,898
Current portion of operating lease liabilities						115,812						114,377
Accounts payable and accrued expenses						4,738,241						4,579,458
Contract liabilities						3,840,282						3,258,465
Total current liabilities						9,384,029						8,716,198
Long-term debt, net of current maturities						5,201,920						5,231,008
Operating lease liabilities, net of current portion						312,247						309,671
Deferred income taxes						514,859						502,626
Insurance and other non-current liabilities						1,190,646						1,139,524
Total liabilities						16,603,701						15,899,027
Commitments and Contingencies
Equity:
Common stock, $0.00001 par value, 600,000,000 shares authorized, 180,271,661 and 179,534,355 shares issued, and 150,056,336 and 149,577,564 shares outstanding						2						2
Additional paid-in capital						4,337,023						4,278,741
Retained earnings						6,877,841						6,673,990
Accumulated other comprehensive loss						(319,059)						(307,211)
Treasury stock, 30,215,325 and 29,956,791 common shares						(1,851,238)						(1,707,273)
Total stockholders’ equity						9,044,569						8,938,249
Non-controlling interests						98,348						89,625
Total equity						9,142,917						9,027,874
Total liabilities and equity						$	25,746,618					$	24,926,901

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
						March 31,
						2026						2025
Revenues						$	7,874,787					$	6,233,334
Cost of services						6,767,458						5,399,297
Gross profit						1,107,329						834,037
Equity in earnings of integral unconsolidated affiliates						14,469						12,929
Selling, general and administrative expenses						(620,726)						(493,966)
Amortization of intangible assets						(152,381)						(109,562)
Increase in fair value of contingent consideration liabilities						(9,912)						(4,357)
Operating income						338,779						239,081
Interest and other financing expenses						(73,267)						(54,312)
Interest income						2,908						3,841
Other (expense) income, net						(12,064)						239
Income before income taxes						256,356						188,849
Provision for income taxes						24,925						39,880
Net income						231,431						148,969
Less: Net income attributable to non-controlling interests						10,806						4,711
Net income attributable to common stock						$	220,625					$	144,258
Earnings per share attributable to common stock:
Basic						$	1.47					$	0.97
Diluted						$	1.45					$	0.96
Shares used in computing earnings per share:
Weighted average basic shares outstanding						149,779						148,274
Weighted average diluted shares outstanding						152,086						150,964

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
						March 31,
						2026						2025
Net income						$	231,431					$	148,969
Other comprehensive (loss) income, net of taxes:
Foreign currency translation adjustment loss						(10,934)						(405)
Other comprehensive (loss) income						(914)						627
Other comprehensive (loss) income, net of taxes						(11,848)						222
Comprehensive income						219,583						149,191
Less: Comprehensive income attributable to non-controlling interests						10,806						4,711
Comprehensive income attributable to common stock						$	208,777					$	144,480

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)

												Three Months Ended
												March 31,
																		2026						2025
Cash Flows from Operating Activities:
Net income																		$	231,431					$	148,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation																		113,294						98,114
Amortization of intangible assets																		152,381						109,562
Non-cash stock-based compensation																		62,634						38,151
Other non-cash adjustments, net																		30,705						11,285
Changes in assets and liabilities, net of non-cash transactions:
Accounts, notes and retainage receivable																		(745,881)						(36,265)
Contract assets																		(94,771)						(48,383)
Inventories																		(76,750)						(2,768)
Prepaid expenses and other current assets																		74,647						(13,774)
Accounts payable and accrued expenses, insurance and other non-current liabilities																		120,993						(54,486)
Contract liabilities																		583,004						6,068
Other assets and liabilities, net																		(59,943)						(13,275)
Net cash provided by operating activities																		391,744						243,198
Cash Flows from Investing Activities:
Capital expenditures																		(220,093)						(132,762)
Proceeds from sale of and insurance settlements related to property and equipment																		12,769						7,316
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired																		(22,936)						(394,263)
Other, net																		8,849						(912)
Net cash used in investing activities																		(221,411)						(520,621)
Cash Flows from Financing Activities:
Borrowings under credit facility and commercial paper program																		16,946,517						5,488,217
Payments under credit facility and commercial paper program																		(17,000,690)						(5,216,815)
Payments related to tax withholding for stock-based compensation																		(143,523)						(71,584)
Payments of dividends																		(17,161)						(15,464)
Repurchase of common stock																		—						(118,568)
Other, net																		(33,603)						(13,432)
Net cash (used in) provided by financing activities																		(248,460)						52,354
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash																		5,139						2,291
Net decrease in cash, cash equivalents and restricted cash																		(72,988)						(222,778)
Cash, cash equivalents and restricted cash, beginning of period																		442,823						746,010
Cash, cash equivalents and restricted cash, end of period																		$	369,835					$	523,232

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
			Common Stock																								Other												Total						Non-
			Shares Outstanding						Amount						Additional Paid-In Capital						Retained Earnings						Comprehensive Income (Loss)						Treasury Stock						Stockholders’ Equity						Controlling Interests						Total Equity
Balance at December 31, 2025			149,577,564						$	2					$	4,278,741					$	6,673,990					$	(307,211)					$	(1,707,273)					$	8,938,249					$	89,625					$	9,027,874
Other comprehensive loss			—						—						—						—						(11,848)						—						(11,848)						—						(11,848)
Acquisitions			—						—						—						—						—						—						—						(415)						(415)
Stock-based compensation activity			478,772						—						58,282						—						—						(143,965)						(85,683)						—						(85,683)
Dividends declared ($0.11 per share)			—						—						—						(16,774)						—						—						(16,774)						—						(16,774)
Distributions to non-controlling interests			—						—						—						—						—						—						—						(1,668)						(1,668)
Net income			—						—						—						220,625						—						—						220,625						10,806						231,431
Balance at March 31, 2026			150,056,336						$	2					$	4,337,023					$	6,877,841					$	(319,059)					$	(1,851,238)					$	9,044,569					$	98,348					$	9,142,917

																											Accumulated
			Common Stock																								Other												Total						Non-
			Shares Outstanding						Amount						Additional Paid-In Capital						Retained Earnings						Comprehensive Income (Loss)						Treasury Stock						Stockholders’ Equity						Controlling Interests						Total 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

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			11
2.			Revenue Recognition and Related Balance Sheet Accounts			11
3.			Segment Information			15
4.			Acquisitions			16
5.			Investments in Affiliates and Other Entities			18
6.			Per Share Information			19
7.			Debt Obligations			19
8.			Income Taxes			21
9.			Equity			21
10.			Stock-Based Compensation			22
11.			Employee Benefit Plans			23
12.			Commitments and Contingencies			24
13.			Detail of Certain Accounts			26
14.			Supplemental Cash Flow Information			27

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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

Nature of Operations

Quanta Services, Inc. (together with its subsidiaries, Quanta) is a leading provider of comprehensive infrastructure solutions for the electric and gas utility, power generation, large load center, manufacturing, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. Quanta provides design, 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, solar and gas power generation and transmission and battery storage facilities; low voltage electrical, mechanical, plumbing and process infrastructure for large load centers, such as data center, advanced manufacturing and industrial facilities; communications and cable multi-system operator networks; gas utility systems; pipeline transmission systems and facilities; and downstream industrial facilities.

Basis of Presentation and Principles of Consolidation

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, 2025. 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.

Recently Issued Accounting Standards

There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on Quanta’s consolidated financial statements and footnote disclosures, from those disclosed in Quanta’s Annual Report on Form 10-K for the year ended December 31, 2025.

Seasonality

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. 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 based on the methods by which transaction prices are determined and revenue is recognized: 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 March 31,
						2026												2025
By contract type:
Fixed price contracts						$	4,773,804					60.6		%				$	3,755,326					60.2		%
Unit-price contracts						1,722,206						21.9						1,455,486						23.4
Cost-plus contracts						1,378,777						17.5						1,022,522						16.4
Total revenues						$	7,874,787					100.0		%				$	6,233,334					100.0		%

						Three Months Ended March 31,
						2026												2025
By primary geographic location:
United States						$	7,361,610					93.4		%				$	5,788,053					92.9		%
Canada						276,024						3.5						210,246						3.4
Australia						201,244						2.6						171,087						2.7
Others						35,909						0.5						63,948						1.0
Total revenues						$	7,874,787					100.0		%				$	6,233,334					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 63.5% and 63.4% of Quanta’s revenues recognized during the three months ended March 31, 2026 and 2025 were associated with this revenue recognition method.

Performance Obligations

Quanta’s remaining performance obligations 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. As of March 31, 2026 and December 31, 2025, Quanta’s remaining performance obligations were approximately $26.24 billion and $23.76 billion, of which (i) approximately 69% and 66% are expected to be recognized as revenue within the 12 months following March 31, 2026 and December 31, 2025, (ii) a substantial majority of the remaining balance is expected to be recognized within each of the following 24 months, and (iii) the balance is expected to be recognized thereafter. Estimates of the timing of revenue recognition of remaining performance obligations are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

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

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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.

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 March 31, 2026 and December 31, 2025, Quanta had recognized revenues of $918.3 million and $983.6 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 revenues recognized related to unapproved change orders and claims as of March 31, 2026 and December 31, 2025 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 0.4% and 0.2% during the three months ended March 31, 2026 and 2025 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2025 and 2024. 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):

						March 31, 2026						December 31, 2025
Contract assets						$	1,609,786					$	1,522,186
Contract liabilities						$	3,840,282					$	3,258,465

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. The increase in contract liabilities from December 31, 2025 to March 31, 2026 was primarily due to an increase in favorable billing terms on certain large projects.

During the three months ended March 31, 2026 and 2025, Quanta recognized revenue of approximately $1.96 billion and $1.30 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

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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 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
						March 31,
						2026						2025
Balance at beginning of period						$	15,706					$	15,185
(Decrease) increase in provision for credit losses						(598)						948
Write-offs charged against the allowance net of recoveries of amounts previously written off						(440)						(582)
Balance at end of period						$	14,668					$	15,551

The above activity relates to the largest risk pool Quanta utilizes for assessing credit loss. The second risk pool represents approximately 8% of Quanta’s consolidated financial instruments as of March 31, 2026 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 months ended March 31, 2026 or 2025, and no customer represented 10% or more of Quanta’s consolidated receivable position as of March 31, 2026 or December 31, 2025.

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 March 31, 2026 and December 31, 2025 were $1.09 billion and $994.1 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond one year were $225.9 million and $228.7 million as of March 31, 2026 and December 31, 2025 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 March 31, 2026 and December 31, 2025, unbilled receivables included in “Accounts receivable” were $1.26 billion and $1.10 billion. Quanta also recognizes unearned revenues

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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 $224.6 million and $121.0 million as of March 31, 2026 and December 31, 2025.

3. 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. Quanta’s two operating segments are also its two reportable segments: (1) Electric Infrastructure Solutions (Electric) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure).

Segment operating expenses (excluding depreciation expense) primarily include 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.

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 March 31, 2026						Electric						Underground and Infrastructure						Total
Revenues						$	6,468,657					$	1,406,130					$	7,874,787
Segment operating expense (excluding segment depreciation expense)						5,839,272						1,275,016						7,114,288
Segment depreciation expense						82,772						25,497						108,269
Segment operating expenses						5,922,044						1,300,513						7,222,557
Equity in earnings of integral unconsolidated affiliates						14,469						—						14,469
Segment operating income						$	561,082					$	105,617					$	666,699
Segment operating margin						8.7		%				7.5		%
Corporate and non-allocated costs (1)																		(327,920)
Total consolidated operating income																		$	338,779

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Three Months Ended March 31, 2025						Electric						Underground and Infrastructure						Total
Revenues						$	4,944,391					$	1,288,943					$	6,233,334
Segment operating expense (excluding segment depreciation expense)						4,482,845						1,186,007						5,668,852
Segment depreciation expense						66,311						26,069						92,380
Segment operating expenses						4,549,156						1,212,076						5,761,232
Equity in earnings of integral unconsolidated affiliates						12,929						—						12,929
Segment operating income						$	408,164					$	76,867					$	485,031
Segment operating margin						8.3		%				6.0		%
Corporate and non-allocated costs (1)																		(245,950)
Total consolidated operating income																		$	239,081

(1) Corporate and non-allocated costs included amortization expense of $152.4 million and $109.6 million and non-cash stock-based compensation of $62.6 million and $38.2 million for the three months ended March 31, 2026 and 2025.

4. 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 have been primarily included in the Underground and Infrastructure segment. The consideration for the acquisition included approximately $1.26 billion in cash and 518,772 shares of Quanta common stock, which had a fair value of $218.8 million as of the acquisition date. Additionally, the former owner of Dynamic Systems is eligible for a potential contingent consideration payment of up to $216.0 million to the extent the acquired business achieves certain financial and other operating performance targets during a two-year post-acquisition period beginning in January 2026. To the extent payable, Quanta, at its sole discretion, can pay 15% of any such contingent consideration amount in Quanta common stock.

During the year ended December 31, 2025, Quanta also acquired seven additional businesses, including two businesses located in the United States that specialize in civil solutions, including site clearing, earthwork, soil stabilization and infrastructure development (which have been included in the Underground and Infrastructure segment); a business located in Australia that specializes in electrical engineering and the design and manufacturing of industrial technology solutions (which has been included in both the Electric and Underground and Infrastructure segments); a business located in the United States that specializes in utility construction and related support services (which has primarily been included in the Electric segment); a business located in the United States that specializes in the design, construction and repair of overhead and underground transmission and distribution infrastructure, civil construction services related to substations as well as helicopter services for electric utility infrastructure (which has primarily been included in the Electric segment); a business located in the United States that specializes in electrical solutions including low voltage technology, testing, engineering, integration, renewable energy and electric prefabrication solutions (which has primarily been included in the Electric segment); and a business located in the United States that provides helicopter services (which has primarily been included in the Electric segment and was accounted for as an asset acquisition so is not included in the disclosures in this note). The consideration for the transactions completed in 2025, other than Dynamic Systems, and accounted for as business combinations, consisted of approximately $2.00 billion in cash and 789,824 shares of Quanta common stock, which had a fair value of $284.5 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 $228.4 million to the extent the acquired businesses achieve certain financial and other operating performance targets over a three-year period. To the extent payable, Quanta, at its sole discretion, can pay up to approximately one-fourth of certain contingent consideration amounts in Quanta common stock.

The results of operations of acquired businesses have been included in Quanta’s consolidated financial statements since their respective acquisition dates.

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Purchase Price Allocation

Quanta is finalizing its purchase price allocations related to certain businesses acquired subsequent to March 31, 2025, 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 March 31, 2025 and December 31, 2025 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $431.7 million to net tangible assets, $1.30 billion to identifiable intangible assets and $1.78 billion to goodwill.

During the three months ended March 31, 2026, changes in goodwill included an increase of $88.9 million, primarily related to the Electric segment, as a result of certain measurement period adjustments primarily related to identifiable intangibles and property and equipment associated with certain of Quanta’s 2025 acquisitions.

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 March 31, 2026 and their classification in the accompanying condensed consolidated balance sheets is as follows (in thousands):

						March 31, 2026						December 31, 2025
Accounts payable and accrued expenses						$	4,023					$	7,333
Insurance and other non-current liabilities						592,015						586,496
Total contingent consideration liabilities						$	596,038					$	593,829

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. The level of inputs used for the fair value measurements is Level 3. These changes are reflected in “Increase 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. As of March 31, 2026, the aggregate maximum payment amount of these liabilities for acquisitions completed prior to December 31, 2025 totaled $682.4 million. During the three months ended March 31, 2026, Quanta made cash payments of $5.6 million to settle contingent consideration liabilities. During the three months ended March 31, 2025, 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 year ended December 31, 2025, 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 period presented or that may be achieved by the combined companies in the future (in thousands).

												Three Months Ended
												March 31, 2025
Revenues												$	6,930,000
Net income attributable to common stock												$	156,401

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The pro forma combined results of operations for the three months ended March 31, 2025 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. There were no acquisitions completed in the three months ended March 31, 2026. The pro forma combined historical results for the three months ended March 31, 2025 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 acquisitions of Dynamic Systems and cash consideration paid for the other acquired businesses; an increase in amortization expense due to the intangible assets recorded; elimination of inter-company sales; and changes in depreciation 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 were the following revenues and income before income taxes related to acquisitions completed in the respective period (in thousands). Also included in Quanta’s condensed consolidated results of operations for the three months ended March 31, 2025 were acquisition costs of $5.7 million related to the acquisitions completed in the three months ended March 31, 2025.

												Three Months Ended
												March 31, 2025
Revenues												$	96,920
Income before income taxes												$	3,532

5. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES:

Equity Investments

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

						March 31, 2026						December 31, 2025
Equity method investments - integral unconsolidated affiliates						$	267,436					$	265,094
Equity method investments - non-integral unconsolidated affiliates						83,167						76,134
Non-marketable equity securities						55,931						70,453
Total equity investments						$	406,534					$	411,681

Equity Method Investments

As of March 31, 2026 and December 31, 2025, Quanta had receivables of $184.3 million and $165.0 million from its unconsolidated affiliates and payables of $30.4 million and $20.3 million to its unconsolidated affiliates. Quanta recognized revenues of $27.3 million and $51.1 million during the three months ended March 31, 2026 and 2025 from services provided to its unconsolidated affiliates. The receivables balances and revenues recognized are primarily related to services provided to LUMA Energy, LLC (LUMA), Quanta’s joint venture that operates and maintains the electric transmission and distribution system in Puerto Rico, at cost. During the three months ended March 31, 2026 and 2025, Quanta recognized costs of services of $121.9 million and $94.9 million for services provided to Quanta by unconsolidated affiliates other than LUMA.

Total equity in earnings from integral unconsolidated affiliates was $14.5 million and $12.9 million for the three months ended March 31, 2026 and 2025. Total equity in losses from non-integral unconsolidated affiliates was $2.3 million for the three months ended March 31, 2026 and equity in earnings from non-integral unconsolidated affiliates was $0.1 million for the three months ended March 31, 2025. 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 March 31, 2026, Quanta had $56.9 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, and gives rise to a basis difference, which was $165.4 million and $168.0 million as of March 31, 2026 and December 31, 2025. 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

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

and was $2.6 million and $0.7 million for the three months ended March 31, 2026 and 2025.

Non-Marketable Equity Securities

As of March 31, 2026 and December 31, 2025, Quanta had cumulative impairments of $31.0 million and $18.1 million related to its non-marketable equity securities.

6. 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
						March 31,
						2026						2025
Amounts attributable to common stock:
Net income attributable to common stock						$	220,625					$	144,258
Weighted average shares:
Weighted average shares outstanding for basic earnings per share attributable to common stock						149,779						148,274
Effect of dilutive unvested non-participating stock-based awards						2,307						2,690
Weighted average shares outstanding for diluted earnings per share attributable to common stock						152,086						150,964

7. DEBT OBLIGATIONS:

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

						March 31, 2026						December 31, 2025
4.75% Senior Notes due August 2027						$	600,000					$	600,000
4.30% Senior Notes due August 2028						500,000						500,000
2.90% Senior Notes due October 2030						1,000,000						1,000,000
4.50% Senior Notes due January 2031						500,000						500,000
2.35% Senior Notes due January 2032						500,000						500,000
5.25% Senior Notes due August 2034						650,000						650,000
5.10% Senior Notes due August 2035						500,000						500,000
3.05% Senior Notes due October 2041						500,000						500,000
Borrowings under senior credit facility (including Term Loan)						684,279						675,000
Borrowings under commercial paper program						252,000						316,000
Lease financing transactions						207,377						198,847
Other long-term debt						2,424						2,761
Finance leases						34,269						93,055
Unamortized discount and financing costs						(38,735)						(40,757)
Total long-term debt obligations						5,891,614						5,994,906
Less — Current maturities of long-term debt						689,694						763,898
Total long-term debt obligations, net of current maturities						$	5,201,920					$	5,231,008

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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
4.30% Senior Notes due August 2028						$	10,750					February 9 and August 9						February 9, 2026
2.90% Senior Notes due October 2030						$	14,500					April 1 and October 1						April 1, 2021
4.50% Senior Notes due January 2031						$	11,250					January 15 and July 15						January 15, 2026
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
5.10% Senior Notes due August 2035						$	12,750					February 9 and August 9						February 9, 2026
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 $4.48 billion as of March 31, 2026, compared to a carrying value of $4.71 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $38.4 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 March 31, 2026, the credit agreement for Quanta’s senior credit facility provided for a term loan facility with a maturity date of October 8, 2026, and aggregate revolving commitments of $2.80 billion, with a maturity date of July 31, 2030. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):

						Three Months Ended
						March 31,
						2026						2025
Maximum amount outstanding						$	719,483					$	741,565
Average daily amount outstanding						$	671,267					$	720,535
Weighted-average interest rate						4.97		%				5.73		%

As of March 31, 2026, Quanta was in compliance with all of the financial covenants under the credit agreement.

Term Loan. As of March 31, 2026, Quanta had $656.3 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.

Revolving Loans. As of March 31, 2026, Quanta had $28.0 million of outstanding revolving loans under the senior credit facility, all of which were denominated in Canadian dollars. Available commitments for revolving loans under Quanta’s senior credit facility must be maintained to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available capacity under its senior credit facility.

Letters of Credit. As of March 31, 2026, Quanta had $65.8 million of letters of credit issued under the senior credit facility, which were primarily denominated in U.S. 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 March 31, 2026, $2.45 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.

Commercial Paper Program

As of March 31, 2026, Quanta had $252.0 million of outstanding unsecured notes under its commercial paper program with a weighted average maturity of one day.

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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

						Three Months Ended
						March 31,
						2026						2025
Maximum amount outstanding						$	788,500					$	564,429
Average daily amount outstanding						$	462,847					$	174,142
Weighted-average interest rate						3.94		%				4.72		%

Additional Letters of Credit

As of March 31, 2026, Quanta had $738.4 million of letters of credit issued outside of its senior credit facility, which were primarily denominated in U.S. dollars.

8. INCOME TAXES:

Quanta’s effective tax rates for the three months ended March 31, 2026 and 2025 were 9.7% and 21.1%. The lower effective tax rate for the three months ended March 31, 2026 was primarily due to a $32.2 million increase in tax benefit from vested equity incentive awards.

As of March 31, 2026, the total amount of unrecognized tax benefits relating to uncertain tax positions was $78.6 million, a net increase of $4.2 million from December 31, 2025, which primarily resulted from current year positions. Quanta’s consolidated federal income tax return for tax year 2024 is currently under examination by the Internal Revenue Service (IRS), and the consolidated federal income tax returns for tax years 2022 to 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.

9. 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 March 31, 2026, Quanta did not repurchase any shares of its common stock in the open market under its stock repurchase program. During the three months ended March 31, 2025, Quanta repurchased 471,387 shares of its common stock in the open market under its stock repurchase program for $118.6 million. As of March 31, 2026, $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.

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Dividends

Quanta declared and paid the following cash dividends and cash dividend equivalents during 2025 and the first three months of 2026 (in thousands, except per share amounts):

Declaration						Record						Payment						Dividend						Dividends
Date						Date						Date						Per Share						Declared
March 19, 2026						April 2, 2026						April 10, 2026						$	0.11					$	16,774
November 17, 2025						January 2, 2026						January 12, 2026						$	0.11					$	16,742
August 27, 2025						October 1, 2025						October 10, 2025						$	0.10					$	14,739
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

10. 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 three months ended March 31, 2026 and 2025 is as follows (RSUs in thousands):

			2026												2025
			RSUs						Weighted Average Grant Date Fair Value (Per Unit)						RSUs						Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1			1,754						$226.39						2,024						$173.32
Granted			373						$538.97						403						$260.80
Vested			(455)						$209.15						(502)						$163.20
Forfeited			(43)						$155.15						(29)						$142.64
Unvested at March 31			1,629						$304.56						1,896						$195.02

The approximate fair value of RSUs that vested during the three months ended March 31, 2026 and 2025 was $251.0 million and $126.5 million.

During the three months ended March 31, 2026 and 2025, Quanta recognized $45.4 million and $32.0 million of non-cash stock compensation expense related to RSUs to be settled in common stock. As of March 31, 2026, there was $372.7 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 2.58 years.

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 three months ended March 31, 2026 and 2025 is as follows (PSUs in thousands):

			2026												2025
			PSUs						Weighted Average Grant Date Fair Value (Per Unit)						PSUs						Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1			348						$224.15						425						$177.69
Granted			53						$565.56						92						$259.17
Vested			(149)						$174.50						(165)						$123.88
Unvested at March 31			252						$325.69						352						$224.11

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

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

						2026						2025
Valuation date price based on February 26, 2026 and February 27, 2025 closing stock prices of Quanta common stock						$565.05						$259.26
Expected volatility (1)						35		%				34		%
Risk-free interest rate						3.45		%				4.05		%
Term in years						2.85						2.84

(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 three months ended March 31, 2026 and 2025, Quanta recognized $17.2 million and $6.2 million of non-cash stock compensation expense related to PSUs to be settled in common stock.

As of March 31, 2026, there was an estimated $66.3 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 2.12 years.

During each of the three months ended March 31, 2026 and 2025, 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 three months ended March 31, 2026 and 2025 were $158.6 million and $83.9 million.

11. 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 March 31, 2026 and December 31, 2025, the liability related to deferred cash compensation under these plans, including amounts contributed by Quanta, was $126.5 million and $126.1 million, the majority of which was included in “Insurance and other non-current liabilities” in the accompanying condensed consolidated balance sheets. Additionally, as of March 31, 2026 and December 31, 2025, the settlement and issuance of 118,687 and 119,208 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 March 31, 2026 and December 31, 2025, the fair market values were $120.0 million and $122.8 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.

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
						March 31,
Gain (loss) related to change in fair value of:						2026						2025
Deferred compensation liabilities						$	2,752					$	1,622
COLI assets						$	(2,548)					$	(2,160)

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

12. 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 have 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 this matter as litigation and resolution efforts progress. As of March 31, 2026, Quanta is currently unable to estimate the total amount of reasonably possible loss because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability. However, Quanta 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.

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

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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 March 31, 2026 and December 31, 2025, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability, and group health claims totaled $599.5 million and $521.4 million, of which $378.8 million and $334.6 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 March 31, 2026 and December 31, 2025 were $5.7 million and $5.8 million, of which $0.2 million and $0.2 million are included in “Prepaid expenses and other current assets” and $5.5 million and $5.6 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 and Parent Guarantees

As of March 31, 2026, the total amount of the outstanding performance bonds was estimated to be approximately $20.3 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.

Additionally, from time to time, Quanta guarantees certain obligations and liabilities of its subsidiaries that may arise in connection with, among other things, contracts with customers, equipment lease obligations, joint venture arrangements and contractor licenses. These guarantees may cover all of the subsidiary’s unperformed, undischarged and unreleased obligations and liabilities under or in connection with the relevant agreement. For example, with respect to customer contracts, a guarantee may cover a variety of obligations and liabilities arising during the ordinary course of the subsidiary’s business or operations, including, among other things, warranty and breach of contract claims, third party and environmental liabilities arising from the subsidiary’s work and for which it is responsible, liquidated damages, or indemnity claims. Quanta is not aware of any claims under any guarantees that are material. To the extent a subsidiary incurs a material obligation or liability and Quanta has guaranteed the performance or payment of such obligation or liability, the recovery by a customer or other counterparty or a third party will not be limited to the assets of the subsidiary. As a result, responsibility under the guarantee could exceed the amount recoverable from the subsidiary alone and could materially and adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows.

Joint Venture Liabilities

Quanta is a participant in certain joint ventures, including joint venture entities that provide infrastructure-related services under specific customer contracts and partially owned entities that own, operate and/or maintain certain infrastructure assets. If losses are incurred by joint venture entities in which Quanta holds an interest, they are generally shared ratably based on the percentage ownership of the participants in the structures. However, in Quanta’s joint venture structures that provide infrastructure-related services, each participant is typically jointly and severally liable for all of the obligations of the joint venture entity pursuant to the contract with the customer, and therefore Quanta can be liable for full performance of the contract with the customer. Additionally, in circumstances where Quanta’s participation in a joint venture qualifies as a general partnership, Quanta can be liable for all obligations of the joint venture, including obligations owed to the customer or any other person or entity. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with these liabilities. Additionally, each joint venture participant typically agrees to indemnify the other participant for any liabilities incurred in excess of what the other participant is obligated to bear under the respective joint venture agreement or in accordance with the scope of work subcontracted to each participant. It is possible, however, that Quanta could be required to pay or perform obligations in excess of its share if another participant is unable or refuses to pay or perform its share of the obligations. Quanta is not aware of circumstances that would lead to future claims against it for material amounts that would not be indemnified. However, to the extent any such claims arise, they could be material and could adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows.

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13. DETAIL OF CERTAIN ACCOUNTS:

Cash and Cash Equivalents

As of March 31, 2026 and December 31, 2025, cash equivalents were $189.2 million and $227.6 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 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):

						March 31, 2026						December 31, 2025
Cash and cash equivalents held by domestic joint ventures						$	73,356					$	63,620
Cash and cash equivalents held by foreign joint ventures						13,454						10,639
Total cash and cash equivalents held by joint ventures						86,810						74,259
Cash and cash equivalents held by captive insurance company						16,521						19,595
Cash and cash equivalents not held by joint ventures or captive insurance company						261,430						345,654
Total cash and cash equivalents						$	364,761					$	439,508

Inventories

Inventories consisted of the following (in thousands):

						March 31, 2026						December 31, 2025
Construction materials and aviation spare parts						$	147,527					$	143,994
Raw materials						73,565						64,758
Work-in-process						12,226						4,427
Finished goods and merchandise purchased for resale						213,573						157,193
Total Inventories, net						$	446,891					$	370,372

Prepaid Expenses and Other Current Assets

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

						March 31, 2026						December 31, 2025
Prepaid expenses						$	465,512					$	488,488
Other current assets						167,721						235,772
Prepaid expenses and other current assets						$	633,233					$	724,260

As of March 31, 2026 and December 31, 2025, prepaid expenses primarily include prepaid job costs, prepaid insurance expense and prepaid software expense.

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Other Intangible Assets

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

						March 31, 2026						December 31, 2025
Customer relationships						$	3,535,422					$	3,523,939
Backlog						577,249						618,911
Trade names						794,379						794,379
Non-compete agreements						91,423						91,781
Patented rights, developed technology, process certifications and other						35,440						35,413
Curriculum						16,715						16,691
Other intangible assets subject to amortization						5,050,628						5,081,114
Accumulated amortization						(2,329,405)						(2,177,926)
Other intangible assets subject to amortization, net						2,721,223						2,903,188
Engineering license						3,000						3,000
Other intangible assets, net						$	2,724,223					$	2,906,188

Property and Equipment

Accumulated depreciation related to property and equipment was $2.32 billion and $2.25 billion as of March 31, 2026 and December 31, 2025. In addition, Quanta held property and equipment, net of $216.3 million and $211.9 million in foreign countries, primarily Canada, as of March 31, 2026 and December 31, 2025.

Accounts Payable and Accrued Expenses

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

						March 31, 2026						December 31, 2025
Accounts payable, trade						$	2,915,840					$	2,832,600
Accrued compensation and related expenses						728,556						781,610
Other accrued expenses						1,093,845						965,248
Accounts payable and accrued expenses						$	4,738,241					$	4,579,458

As of March 31, 2026 and December 31, 2025, other accrued expenses primarily include the current portion of accrued insurance liabilities as further described in Note 12, unearned revenues and income and franchise taxes payable.

14. 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):

						March 31,
						2026						2025
Cash and cash equivalents						$	364,761					$	520,561
Restricted cash included in “Prepaid expenses and other current assets”						3,187						1,307
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						$	369,835					$	523,232

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						December 31,
						2025						2024
Cash and cash equivalents						$	439,508					$	741,960
Restricted cash included in “Prepaid expenses and other current assets”						1,428						2,686
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						$	442,823					$	746,010

.

Cash paid for interest was as follows (in thousands):

												Three Months Ended
												March 31,
																		2026						2025
Interest paid																		$	(92,118)					$	(57,993)

Accrued capital expenditures were $46.2 million and $25.9 million as of March 31, 2026 and 2025. 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.