QUANTA SERVICES, INC.

4. ACQUISITIONS:

Subsequent to September 30, 2026, Quanta completed the acquisition of a business located in the United States that manufactures steel monopoles and specializes in the design, engineering, manufacturing and servicing of high-quality, tubular steel structures, as well as high-mast and other lighting towers and structures (which will primarily be included in the Electric segment).

During the nine months ended September 30, 2026, Quanta acquired five businesses, including a business located in the United States that provides utility construction, electrical contracting, industrial and energy infrastructure, and facilities services (which is included in the Electric segment); a business located in the United States that provides a full suite of front-end services, including land services (title and right-of-way), surveying and geospatial services, and engineering design work (which is included in both the Underground and Infrastructure and Electric segments); a business located in the United States that is a multi-craft, heavy industrial contractor (which is included in the Underground and Infrastructure segment); a business located in Australia that provides turnkey engineering, fabrication and manufacturing, including transportable substation buildings and switchgear, and construction services (which is included in the Electric segment); and a business located in the United States that provides engineering and design, fabrication, automation and controls, and engineering, procurement and construction services (which is included in the Underground and Infrastructure segment). The consideration for the transactions consisted of approximately $1.29 billion in cash, including payment for cash and cash equivalents and restricted cash of $220.3 million held by the businesses as of the acquisition dates, and 481,909 shares of Quanta common stock, which had a fair value of $299.6 million as of the respective acquisition dates. The final amount of consideration for these acquisitions remains subject to certain post-closing adjustments, including with respect to net working capital, tax estimates and other contractually agreed-upon adjustments to consideration. Additionally, pursuant to the terms of the agreements, the former owners of certain of these businesses are eligible to receive payments of contingent consideration of up to approximately $242.4 million to the extent the acquired businesses achieve certain financial and other operating performance targets during post-acquisition measurement periods of up tofour years. To the extent payable, Quanta, at its sole discretion, can pay up to approximately one-seventh of such contingent consideration amount in Quanta common stock.

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 $1.27 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 atwo-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, includingtwo 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 $2.01 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 certain of these acquisitions remains subject to certain post-closing adjustments, including with respect to tax estimates. 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 during measurement periods of up tothree years. To the extent payable, Quanta, at its sole discretion, can pay up to approximately one-fourth of such contingent consideration amount 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.

Purchase Price Allocation

Quanta is finalizing its purchase price allocations, including the assignment of goodwill to its reporting units, related to certain businesses acquired subsequent to September 30, 2025, and further adjustments to the purchase price allocations may occur, with possible updates primarily related to intangible asset values, property and equipment values, leases, 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 from October 1, 2025 to September 30, 2026 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $556.6 million to net tangible assets, $1.49 billion to identifiable intangible assets and $1.37 billion to goodwill.

The following table summarizes the estimated fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed recognized as of their respective acquisition dates as of September 30, 2026 for acquisitions completed in the nine months ended September 30, 2026 (in thousands):

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 nine months ended September 30, 2026 contributed to the recognition of goodwill by strategically expanding Quanta’s Electric and Underground and Infrastructure segments in the United States and the Electric segment in Australia. During the nine months ended September 30, 2026, changes in goodwill included an increase of $75.4 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. As of September 30, 2026, approximately $527.6 million of goodwill related to acquisitions completed in the nine months ended September 30, 2026 is expected to be deductible for income tax purposes.

Quanta’s identifiable intangible assets subject to amortization include customer relationships, backlog, trade names, non-compete agreements, and patented rights and other. The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the nine months ended September 30, 2026 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).

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

The significant assumptions used by management in determining the fair values of customer relationships include future revenues, margins, discount rates and customer attrition rates. The following table includes the discount rates and customer attrition rates used to determine the fair value of customer relationships for businesses acquired during the nine months ended September 30, 2026 as of the respective acquisition dates:

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 September 30, 2026 and their classification in the accompanying condensed consolidated balance sheets is as follows (in thousands):

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.

Each of Quanta’s outstanding contingent consideration liabilities is subject to a maximum payment amount. As of September 30, 2026, the aggregate maximum payment amount of these liabilities totaled $921.5 million. During the nine months ended September 30, 2026, Quanta made cash payments of $7.2 million and issued 3,000 shares to settle contingent consideration liabilities. During the nine months ended September 30, 2025, Quanta made cash payments of $106.8 million and issued 158,040 shares of its common stock to settle 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 nine months ended September 30, 2026 and 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 periods presented or that may be achieved by the combined companies in the future (in thousands).

(1) The pro forma results of operations for the three and nine months ended September 30, 2026 include one-time acquisition-related expenses of $5.1 million ($3.8 million net of tax) and $40.6 million ($30.1 million net of tax) for pre-acquisition transaction costs incurred by certain acquired businesses. The pro forma results of operations for the three and nine months ended September 30, 2025 include one-time acquisition-related expenses of $34.0 million ($25.2 million net of tax) for pre-acquisition transaction costs incurred by Dynamic Systems.

The pro forma combined results of operations for the three and nine months ended September 30, 2026 and 2025 were prepared by adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2026 as if such acquisitions had occurred January 1, 2025. The pro forma combined results of operations for the three and nine months ended September 30, 2025 were prepared by further 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 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 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 and nine months ended September 30, 2026 were acquisition costs of $14.3 million and $40.6 million related to the acquisitions completed in the nine months ended September 30, 2026. Also included in Quanta’s condensed consolidated results of operations for the three and nine months ended September 30, 2025 were acquisition costs of $19.5 million and $33.7 million related to the acquisitions completed in the nine months ended September 30, 2025.