Investments in Affiliates and Other Entities

9 Months Ended

Sep. 30, 2025

Investments in Affiliates and Other Entities

6. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES:

Equity Investments

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


	September 30, 2025		December 31, 2024
Equity method investments - integral unconsolidated affiliates	$	262,032	$	101,460
Equity method investments - non-integral unconsolidated affiliates	85,090		77,617
Non-marketable equity securities	70,354		62,539
Total equity investments	$	417,476	$	241,616

Equity Method Investments

During the nine months ended September 30, 2025, Quanta acquired a 40.0% equity interest in a company that

specializes in harvesting, treating and manufacturing wood utility poles and laminated wood products for utility and telecommunication companies. Quanta’s investment is accounted for as an equity method investment and the investee is considered to be an integral unconsolidated affiliate.

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

As of September 30, 2025 and December 31, 2024, Quanta had receivables of $193.4 million and $133.3 million from its unconsolidated affiliates and payables of $64.1 million and $15.4 million to its unconsolidated affiliates. Quanta recognized revenues of $36.9 million and $58.5 million during the three months ended September 30, 2025 and 2024 and $133.8 million and $175.2 million during the nine months ended September 30, 2025 and 2024 from services provided to its unconsolidated affiliates. The receivables balances and revenues recognized are primarily related to services provided to LUMA Energy, LLC (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 September 30, 2025 and 2024, Quanta recognized costs of services of $168.8 million and $114.2 million for services provided to Quanta by unconsolidated affiliates other than LUMA. During the nine months ended September 30, 2025 and 2024, Quanta recognized costs of services of $393.6 million and $303.4 million for services provided by unconsolidated affiliates other than LUMA.

Total equity in earnings from integral unconsolidated affiliates was $13.7 million and $14.0 million for the three months ended September 30, 2025 and 2024 and $41.1 million and $34.9 million for the nine months ended September 30, 2025 and 2024. Total equity in losses from non-integral unconsolidated affiliates was $0.1 million and $1.7 million for the three months ended September 30, 2025 and 2024. Total equity in losses from non-integral unconsolidated affiliates was $0.5 million for the nine months ended September 30, 2025, and total equity in earnings from non-integral unconsolidated affiliates was $1.4 million for the nine months ended September 30, 2024. Equity in losses and earnings from non-integral unconsolidated affiliates are included in “Other income, net” in the accompanying condensed consolidated statements of operations. As of September 30, 2025, Quanta had $59.2 million of undistributed earnings from unconsolidated affiliates.

Any difference between Quanta’s carrying value and the underlying equity in the net assets of its equity investments is assigned to the assets and liabilities of the investment, gives rise to a basis difference, which was $169.8 million and $44.5 million as of September 30, 2025 and December 31, 2024. The amortization of the basis difference is primarily included in “Equity in earnings of integral unconsolidated affiliates” in the accompanying condensed consolidated statements of operations and was $3.0 million and $0.9 million for the three months ended September 30, 2025 and 2024 and $5.5 million and $3.6 million for the nine months ended September 30, 2025 and 2024.