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ACQUISITIONS
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS 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 (subject to certain adjustments and including payment for cash held by Dynamic Systems as of the acquisition date) 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. 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.
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 acquired 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 $228.0 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.
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 results have been included in the Electric segment. 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 and other operating 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.
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 (which has been primarily included in the Underground and Infrastructure segment); a business that specializes in testing, manufacturing and distributing safety equipment and supplies (which has been primarily included in the Electric segment); a business that specializes in electrical infrastructure services for substations, data centers and governmental entities (which has been primarily included in the Electric segment); a business that manufactures transmission and distribution equipment for the electric utility industry (which has been primarily included in the Electric segment); a business that provides services and equipment related to aerial telecommunications infrastructure and networks (which has been primarily included in the Electric segment); a business that provides services related to fiber optic networks (which has been 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 (which has been 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.
During the year ended December 31, 2023, Quanta acquired five businesses located in the United States that are primarily included in the Electric segment including: a business that provides services related to high-voltage transmission lines, overhead and underground distribution, emergency restoration and industrial and commercial wiring and lighting; a business that procures parts, assembles kits for sale, manages logistics and installs solar tracking equipment for utility and development customers; a business that provides concrete construction services; a business specializing in power studies, maintenance testing and commissioning primarily for utility and commercial customers; and a business that manufactures power transformers for the electric utility, renewable energy, municipal power and industrial markets. The consideration for these transactions consisted of approximately $780.8 million in cash and 1,238,576 shares of Quanta common stock, which had a fair value of $158.9 million as of the dates of the acquisitions.
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
Purchase price allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities.
Quanta is finalizing its purchase price allocations related to certain businesses acquired in 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 following table summarizes the estimated fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired, liabilities assumed and non-controlling interest recognized as of their respective acquisition dates as of December 31, 2025 for acquisitions completed in the year ended December 31, 2025 and 2024 (in thousands):
Year Ended December 31,
20252024
Dynamic SystemsAll OthersCEIAll Others
Consideration:
Cash paid or payable$1,264,009 $1,997,842 $1,654,967 $540,882 
Value of Quanta common stock issued218,756 284,478 216,264 74,797 
Contingent consideration190,561 188,737 163,999 24,266 
Fair value of total consideration transferred or estimated to be transferred$1,673,326 $2,471,057 $2,035,230 $639,945 
Cash and cash equivalents$66,696 $125,040 $414,705 $31,403 
Accounts receivable279,720 608,139 339,254 72,263 
Contract assets9,859 62,415 92,160 8,995 
Inventories1,955 3,479 — 46,345 
Prepaid expenses and other current assets1,303 23,054 23,233 12,455 
Property and equipment30,398 237,197 32,207 92,214 
Operating lease right-of-use assets19,281 21,987 28,906 25,429 
Other assets9,767 2,395 35,713 616 
Identifiable intangible assets532,400 1,010,069 669,000 211,042 
Current portion of operating lease liabilities(4,850)(4,605)(10,665)(4,908)
Accounts payable and accrued expenses(97,541)(275,879)(315,436)(72,885)
Contract liabilities(145,553)(140,618)(222,538)(28,434)
Operating lease liabilities, net of current portion(14,431)(17,385)(19,448)(20,524)
Deferred income taxes— (81,443)(15,936)(48,646)
Insurance and other non-current liabilities— (11,983)(11,011)(9,744)
Non-controlling interest
— (84,379)— — 
Total identifiable net assets689,004 1,477,483 1,040,144 315,621 
Goodwill984,322 993,574 995,086 324,324 
Fair value of net assets acquired$1,673,326 $2,471,057 $2,035,230 $639,945 
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 year ended December 31, 2025, 2024 and 2023 contributed to the recognition of goodwill by strategically expanding Quanta’s Electric and Underground and Infrastructure segments, primarily in the U.S. Goodwill, included in the Underground and Infrastructure segment, increased by $44.0 million during the year ended December 31, 2025 as a result of certain contingent consideration adjustments associated
with Quanta’s 2025 acquisitions. Goodwill increased by $58.5 million during the year ended December 31, 2024 as a result of certain post-closing adjustments associated with Quanta’s acquisition of CEI. As of December 31, 2025, approximately $1.75 billion, $43.2 million and $380.6 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in 2025, 2024 and 2023.
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 2025 and 2024 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).
Year Ended December 31, 2025
Dynamic SystemsAll Others
Estimated Fair ValueAmortization Period in YearsEstimated Fair ValueWeighted Average Amortization Period in Years
Customer relationships$355,000 8.0$758,389 7.1
Backlog58,200 2.0116,635 1.6
Trade names101,000 15.0123,366 15.0
Non-compete agreements18,200 5.011,679 5.0
Total identifiable intangible assets $532,400 8.6$1,010,069 7.4
Year Ended December 31, 2024
CEIAll Others
Estimated Fair ValueAmortization Period in YearsEstimated Fair ValueWeighted Average Amortization Period in Years
Customer relationships$404,000 8.0$163,355 7.1
Backlog90,000 3.021,425 2.8
Trade names175,000 15.020,542 14.9
Non-compete agreements— N/A3,444 5.0
Patented rights, developed technology, process certifications and other— N/A2,276 15.0
Total identifiable intangible assets $669,000 9.2$211,042 7.4
The fair value of customer relationships is estimated as of the date a business is acquired based on the value-in-use concept utilizing the income approach, specifically the multi-period excess earnings method. This method discounts to present value the projected cash flows attributable to the customer relationships, with consideration given to customer contract renewals and estimated customer attrition rates. 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 year ended December 31, 2025 and 2024 as of the respective acquisition dates:
Year Ended December 31,
 20252024
RangeWeighted AverageRangeWeighted Average
Discount rates
13% to 20%
16%
15% to 24%
15%
Customer attrition rates
5% to 30%
11%
10% to 25%
11%
The fair value of backlog is estimated as of the acquisition date based upon the contractual nature of the backlog using the multi-period excess earnings method, which discounts to present value the projected cash flows attributable to the backlog. The fair value of trade names is estimated using the income approach, specifically the relief-from-royalty method, which is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty for use of the trade name. The significant assumptions used by management in determining the fair values of trade name intangible assets include future revenues, royalty rates, and discount rates. The value of a non-compete agreement is estimated based on the difference between the present value of the prospective cash flows with the agreement in place and the present value of the prospective cash flows without the agreement in place. The level of inputs used for these identifiable intangible asset fair value measurements is Level 3.
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 December 31, 2025 and their classification in the accompanying consolidated balance sheets is as follows (in thousands):
 December 31, 2025December 31, 2024
Accounts payable and accrued expenses$7,333 $152,030 
Insurance and other non-current liabilities586,496 192,954 
Total contingent consideration liabilities$593,829 $344,984 
The estimated fair values of these contingent consideration liabilities are generally measured on a recurring basis using a scenario-based discounted cash flow method, which considers significant inputs not observable in the market and are Level 3 inputs. The significant estimates used by management in determining fair value consist of projections of future financial results in relation to specific performance criteria and other discretionary operating provisions specified in the contingent consideration agreements. These forecast projections include inputs such as revenues, operating margins and management’s probability assessment with respect to the likelihood of acquired businesses achieving those performance criteria during designated post-acquisition periods. Appropriate discount rates are also applied to determine the present value of the future expected payments.
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 “Increase in fair value of contingent consideration liabilities” in the accompanying 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 December 31, 2025 totaled $713.0 million as of December 31, 2025. During the year ended December 31, 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 year ended December 31, 2023, Quanta settled certain contingent consideration liabilities with cash payments of $5.0 million.
Pro Forma Results of Operations
The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in 2025, 2024 and 2023, 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).
Year Ended December 31,
 202520242023
Revenues$30,550,869 $28,221,667 $23,403,024 
Net income attributable to common stock (1)
$1,005,724 $582,499 $638,973 
(1)    The pro forma results of operations for the year ended December 31, 2025 include one-time acquisition-related expenses of $78.7 million ($58.2 million net of tax) for pre-acquisition transaction costs incurred by certain acquired businesses. The pro forma results of operations for the year ended December 31, 2024 include one-time acquisition-related expenses of $453.8 million ($335.8 million net of tax) for pre-acquisition transaction costs incurred by CEI, primarily related to the vesting and increase in value of stock appreciation rights as a result of the acquisition.
The pro forma combined results of operations for the years ended December 31, 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 years ended December 31, 2024 and 2023 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. The pro forma combined results of operations for the year ended December 31, 2023 were prepared by further adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2023 as if such acquisitions occurred January 1, 2022. 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 acquisitions of CEI and 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 consolidated results of operations were the following revenues and income before income taxes related to acquisitions completed in each respective year (in thousands). Also included in Quanta’s consolidated results of operations for the years ended December 31, 2025, 2024 and 2023 were acquisition costs of $48.8 million, $17.1 million and $31.8 million related to the acquisitions completed in 2025, 2024 and 2023, respectively.
 Year Ended December 31,
 202520242023
Revenues$1,114,577 $1,596,606 $475,223 
Income before income taxes
$83,113 $17,744 $15,871