QUANTA SERVICES, INC.PWR
QUANTA SERVICES, INC. Debt Disclosure
DEBT OBLIGATIONS:
Quanta’s long-term debt obligations consisted of the following (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
4.75% Senior Notes due August 2027 | $ | 600,000 | $ | 600,000 | |||||||
4.30% Senior Notes due August 2028 | 500,000 | — | |||||||||
2.90% Senior Notes due October 2030 | 1,000,000 | 1,000,000 | |||||||||
4.50% Senior Notes due January 2031 | 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 | — | |||||||||
3.05% Senior Notes due October 2041 | 500,000 | 500,000 | |||||||||
| Borrowings under senior credit facility (including Term Loan) | 675,000 | 735,445 | |||||||||
| Borrowings under commercial paper program | 316,000 | — | |||||||||
Lease financing transactions | 198,847 | 155,549 | |||||||||
| Other long-term debt | 2,761 | 4,939 | |||||||||
| Finance leases | 93,055 | 47,993 | |||||||||
| Unamortized discount and financing costs | (40,757) | (31,490) | |||||||||
| Total long-term debt obligations | 5,994,906 | 4,162,436 | |||||||||
| Less — Current maturities of long-term debt | 763,898 | 62,680 | |||||||||
| Total long-term debt obligations, net of current maturities | $ | 5,231,008 | $ | 4,099,756 | |||||||
As of December 31, 2025, principal payments required to be made during the next five years are set forth in the table below (in thousands). The payments required under finance leases are provided in Note 11.
| 2026 | $ | 689,829 | ||||||
| 2027 | $ | 615,086 | ||||||
| 2028 | $ | 511,556 | ||||||
| 2029 | $ | 9,026 | ||||||
| 2030 | $ | 1,321,920 | ||||||
Senior Notes
In August 2025, Quanta issued $1.50 billion aggregate principal amount of senior notes consisting of $500.0 million aggregate principal amount of 4.30% senior notes due August 2028 (the 2028 notes), $500.0 million aggregate principal amount of 4.50% senior notes due January 2031 (the 2031 notes) and $500.0 million aggregate principal amount of 5.10% senior notes due August 2035 (the 2035 notes). The cumulative proceeds from the public offering of the 2028 notes, 2031 notes and 2035 notes were $1.48 billion, net of the original issue discount, underwriting discounts and deferred financing costs, and were used to repay indebtedness, including certain commercial paper borrowings and revolving loans under Quanta’s senior credit facility that were utilized primarily to acquire Dynamic Systems.
In August 2024, Quanta issued $1.25 billion aggregate principal amount of senior notes consisting of $600.0 million aggregate principal amount of 4.75% senior notes due August 2027 (the 2027 notes) and $650.0 million aggregate principal amount of 5.25% senior notes due August 2034 (the 2034 notes). The cumulative proceeds from the public offering of the 2027 notes and 2034 notes were $1.24 billion, net of the original issue discount, underwriting discounts and deferred financing costs, which were used to repay certain short-term and commercial paper borrowings that were utilized to acquire CEI.
The indenture and supplemental indentures governing our senior notes (collectively, the indenture) contain covenants that, among other things, limit Quanta’s ability to incur liens securing certain indebtedness, to engage in certain sale and leaseback transactions with respect to certain properties and to sell all or substantially all of Quanta’s assets or merge or consolidate with or into other companies. The indenture also contains customary events of default.
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 $4.53 billion as of December 31, 2025, compared to a carrying value of $4.71 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $40.3 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities.
Senior Credit Facility
As of December 31, 2025, the credit agreement for Quanta’s senior credit facility provided for a term loan facility with $675.0 million outstanding and a maturity date of October 8, 2026, and aggregate revolving commitments of $2.80 billion, with a maturity date of July 31, 2030. Subject to the conditions specified in the credit agreement, Quanta has the option to increase the capacity of the credit facility, in the form of an increase in the revolving commitments, term loans or a combination thereof, from time to time, upon receipt of additional commitments from new or existing lenders by up to an additional (i) $400.0 million plus (ii) additional amounts so long as the Incremental Leverage Ratio Requirement (as defined in the credit agreement) is satisfied at the time of such increase. The Incremental Leverage Ratio Requirement requires, among other things, after giving pro forma effect to such increase and the use of proceeds therefrom, compliance with the credit agreement’s financial covenants as of the most recent fiscal quarter end for which financial statements were required to be delivered. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Maximum amount outstanding | $ | 1,444,375 | $ | 1,262,736 | $ | 1,004,677 | |||||||||||
| Average daily amount outstanding | $ | 707,513 | $ | 855,033 | $ | 929,201 | |||||||||||
| Weighted-average interest rate | 5.61 | % | 6.62 | % | 6.62 | % | |||||||||||
The credit agreement contains certain covenants, including, as of the end of any fiscal quarter of Quanta, (i) a maximum Consolidated Leverage Ratio (as defined in the credit agreement) of 3.5 to 1.0 (except that in connection with certain permitted acquisitions in excess of $200.0 million, such ratio is 4.0 to 1.0 for the fiscal quarter in which the acquisition is completed and the four subsequent fiscal quarters) and (ii) a minimum Consolidated Interest Coverage Ratio (as defined in the credit agreement) of 3.0 to 1.0. As of December 31, 2025, Quanta was in compliance with all of the financial covenants under the credit agreement.
The Consolidated Leverage Ratio is the ratio of Quanta’s total funded debt to Consolidated EBITDA (as defined in the credit agreement). For purposes of calculating the Consolidated Leverage Ratio, total funded debt is reduced by available cash and Cash Equivalents (as defined in the credit agreement) in excess of $25.0 million. Consolidated Interest Coverage Ratio is the ratio of (i) Consolidated EBIT (as defined in the credit agreement) for the four fiscal quarters most recently ended to (ii) Consolidated Interest Expense (as defined in the credit agreement) for such period (excluding all interest expense attributable to capitalized loan costs and the amount of fees paid in connection with the issuance of letters of credit on behalf of Quanta during such period).
The credit agreement also limits certain acquisitions, mergers and consolidations, indebtedness, asset sales and prepayments of indebtedness and, subject to certain exceptions, prohibits liens on Quanta’s assets. These limits include a limit on surety-backed letters of credit issued separate from the senior credit facility, which are not to exceed $500.0 million at any one time outstanding. The credit agreement allows cash payments for dividends and stock repurchases subject to compliance with the following requirements (including after giving effect to the dividend or stock repurchase): (i) no default or event of default under the credit agreement; (ii) continued compliance with the financial covenants in the credit agreement; and (iii) at least $100.0 million of availability under the senior credit facility and/or cash and cash equivalents on hand.
The credit agreement provides for customary events of default and contains cross-default provisions with other debt instruments exceeding $400.0 million in borrowings or availability. If an Event of Default (as defined in the credit agreement) occurs and is continuing, on the terms and subject to the conditions set forth in the credit agreement, the lenders may declare all amounts outstanding and accrued and unpaid interest immediately due and payable, require that Quanta provide cash collateral for all outstanding letter of credit obligations and terminate the commitments under the credit agreement.
Term Loan. As of December 31, 2025, Quanta had $675.0 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate.
The term loan requires quarterly principal payments in the amount of $18.8 million per quarter in 2026, with the remaining principal amount outstanding paid at maturity in October 2026. Quanta may voluntarily prepay the term loan borrowings from time to time, in whole or in part, without premium or penalty. Amounts borrowed under the term loan facility bear interest at Term SOFR (as defined in the credit agreement) plus 1.125%.
Revolving Loans. As of December 31, 2025, Quanta had no outstanding revolving loans under the senior credit facility. Available commitments for revolving loans under our senior credit facility must be maintained to provide credit support for notes issued under our commercial paper program, and therefore such notes effectively reduce the available capacity under our senior credit facility. During the year ended December 31, 2025, Quanta extended the maturity date for revolving loans under the credit agreement for its senior credit facility from July 31, 2029 to July 31, 2030.
Letters of Credit. As of December 31, 2025, Quanta had $65.7 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 December 31, 2025, $2.42 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.
Amounts borrowed in U.S. dollars under the revolving credit facility bear interest, at Quanta’s option, at a rate equal to either (a) the Term SOFR plus 1.125% to 1.750%, or (b) the Base Rate plus 0.125% to 0.750%, each as determined based on either Quanta’s Consolidated Leverage Ratio or its Debt Rating, whichever is more favorable to Quanta. Revolving loans borrowed in any currency other than U.S. dollars bear interest at a rate equal to the Alternative Currency Daily Rate or the Alternative Currency Term Rate (each as defined in the credit agreement), as applicable, plus 1.125% to 1.750%, as determined based on either Quanta’s Consolidated Leverage Ratio or Quanta’s Debt Rating, whichever is more favorable to Quanta. On June 10, 2024, the senior credit facility was amended to establish Term CORRA (as defined in the Amended Credit Agreement) as the benchmark rate for borrowings denominated in Canadian dollars, in replacement of the CDOR Rate (as defined therein prior to giving effect to the amendment). Additionally, standby or commercial letters of credit issued under the credit agreement are subject to a letter of credit fee of 1.125% to 1.750%; Performance Letters of Credit (as defined in the credit agreement) issued under the credit agreement in support of certain contractual obligations are subject to a letter of credit fee of 0.675% to 1.125%; and Quanta is subject to a commitment fee of 0.100% to 0.275% on any unused availability under the revolving credit facility, in each case as determined based on either the Quanta’s Consolidated Leverage Ratio or its Debt Rating, whichever is more favorable to Quanta.
Commercial Paper Program
Effective November 7, 2025, Quanta increased the maximum aggregate amount of its existing unsecured commercial paper program to $2.80 billion of notes outstanding at any time. Prior to the increase, the maximum aggregate amount of the program was $1.50 billion. The notes are sold under customary market terms in the U.S. commercial paper market at a discount from par or at par and bear interest at rates determined at the time of issuance. The maturities of the notes may vary, but may not exceed 397 days from the date of issuance. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, as all notes currently have a short maturity. As of December 31, 2025, Quanta had $316.0 million of outstanding notes with a weighted average maturity of two days.
Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands):
Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Maximum amount outstanding | $ | 1,500,000 | $ | 1,415,000 | $ | 938,400 | ||||||||||||||
Average daily amount outstanding | $ | 481,636 | $ | 362,220 | $ | 644,942 | ||||||||||||||
Weighted-average interest rate | 4.61 | % | 5.37 | % | 5.82 | % | ||||||||||||||
On July 17, 2024, Quanta utilized approximately $1.20 billion of borrowings under its commercial paper program, $400.0 million of borrowings under an additional term loan described below, and cash on hand, primarily to finance the cash portion of the acquisition of CEI and pay certain related costs and expenses and working capital requirements. As described above, the proceeds from the issuance of the 2027 notes and the 2034 notes were utilized to repay the $400.0 million additional term loan and certain commercial paper borrowings.
Additional Term Loan
In July 2024, Quanta entered into, and borrowed the full amount available under, a $400.0 million 90-day term loan facility outside of the senior credit facility for the purpose of financing a portion of the acquisition of CEI. Quanta voluntarily prepaid the term loan borrowings, in whole without premium or penalty, in August 2024 with proceeds from the issuance of the 2027 notes and 2034 notes. The term loan facility bore interest at a rate equal to the Term SOFR (as defined in the 90-day term loan agreement) plus 1.375%.
Additional Letters of Credit
As of December 31, 2025, Quanta had $705.7 million of letters of credit issued outside of its senior credit facility, which were primarily denominated in U.S. dollars.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.