EMCOR Group, Inc.

Previous wording

Revenues of $4.63 billion for the quarter ended March 31, 2026 set a quarterly record for the Company and represent an increase of 19.7% from revenues of $3.87 billion for the quarter ended March 31, 2025. Demand for our services continues to be broad-based with strength across most of the market sectors we serve. As described in further detail below, we experienced revenue growth within all of our reportable segments. Revenues for the first quarter of 2026 included incremental acquisition contribution of $234.1 million.

Current wording

Revenues of $5.15 billion for the quarter ended June 30, 2026 set a quarterly record for the Company and represent an increase of 19.8% from revenues of $4.30 billion for the quarter ended June 30, 2025. Demand for our services continues to be broad-based with strength across most of the market sectors we serve. As described in further detail below, we experienced revenue growth within all of our reportable segments. Revenues for the second quarter of 2026 included incremental acquisition contribution of $169.2 million.

Previous wording

For the quarter ended March 31, 2026, operating income was $403.8 million, or 8.7% of revenues, establishing new records for the Company with respect to a first quarter. This compares to operating income of $318.8 million, or 8.2% of revenues, for the quarter ended March 31, 2025. As described in further detail below, the increases in both operating income and operating margin were due to the revenue growth we experienced in the quarter, which led to greater gross profit and a reduction in the ratio of selling, general and administrative expenses to revenues. Operating income for the quarter ended March 31, 2026 included incremental acquisition contribution of $20.6 million, net of amortization expense attributable to identifiable intangible assets of $8.8 million.

Current wording

For the quarter ended June 30, 2026, operating income was $547.3 million, or 10.6% of revenues, establishing new records for the Company with respect to a second quarter. This compares to operating income of $415.2 million, or 9.6% of revenues, for the quarter ended June 30, 2025. As described in further detail below, in addition to the impact of the revenue growth we experienced in the quarter, our operating performance benefited from an increase in consolidated gross profit margin as well as a reduction in the ratio of selling, general and administrative expenses to revenues. Operating income for the quarter ended June 30, 2026 included incremental acquisition contribution of $13.9 million, net of amortization expense attributable to identifiable intangible assets of $5.6 million.

Previous wording

Net income of $305.5 million, or $6.84 per diluted share, for the quarter ended March 31, 2026 compares favorably to net income of $240.7 million, or $5.26 per diluted share, for the quarter ended March 31, 2025. While the majority of the increase in our net income and diluted earnings per share was a result of the increased operating income referenced above, diluted earnings per share for the quarter ended March 31, 2026 additionally benefited from a reduced weighted average share count given the impact of common stock repurchases made by us throughout 2025 and the first quarter of 2026.

Current wording

Net income of $403.7 million, or $9.06 per diluted share, for the quarter ended June 30, 2026 compares favorably to net income of $302.2 million, or $6.72 per diluted share, for the quarter ended June 30, 2025. While the majority of the increase in our net income and diluted earnings per share was a result of the increased operating income referenced above, diluted earnings per share for the quarter ended June 30, 2026 additionally benefited from a reduced weighted average share count given the impact of common stock repurchases made by us throughout 2025 and the first half of 2026.

Previous wording

On February 3, 2025, we completed the acquisition of Miller Electric Company (“Miller Electric”), a leading electrical contractor, for total cash consideration of $876.8 million. In addition to Miller Electric, during calendar year 2025, we acquired nine companies for upfront consideration of $182.1 million.

Current wording

On February 3, 2025, we completed the acquisition of Miller Electric Company (“Miller Electric”), a leading electrical contractor, for total cash consideration of $876.8 million. In addition to Miller Electric, during calendar year 2025, we acquired nine companies for upfront consideration of $182.3 million.

Previous wording

The following table presents our operating segment revenues from unrelated entities and their respective percentages of total revenues (in thousands, except for percentages):

Current wording

The following tables present our operating segment revenues from unrelated entities and their respective percentages of total revenues (in thousands, except for percentages):

Previous wording

As described in more detail below, as a result of strong demand for our services across most of the market sectors we serve, consolidated revenues for the first quarter of 2026 increased to $4.63 billion compared to consolidated revenues of $3.87 billion for the first quarter of 2025. Revenues for the first quarter of 2026 included incremental acquisition contribution of $234.1 million.

Current wording

As described in more detail below, as a result of strong demand for our services across most of the market sectors we serve, our consolidated revenues for the three months ended June 30, 2026 increased to $5.15 billion compared to consolidated revenues of $4.30 billion for the three months ended June 30, 2025, and our consolidated revenues for the six months ended June 30, 2026 increased to $9.78 billion compared to consolidated revenues of $8.17 billion for the six months ended June 30, 2025. Revenues for the three and six months ended June 30, 2026 included incremental acquisition contribution of $169.2 million and $403.3 million, respectively.

Previous wording

Revenues of our United States electrical construction and facilities services segment were $1.45 billion for the three months ended March 31, 2026, a $359.6 million increase compared to revenues of $1.09 billion for the three months ended March 31, 2025. This segment’s results included $110.4 million of incremental acquisition revenues. Such increased revenues were generated from the majority of the market sectors we serve. While the largest increase was seen within the network and communications market sector, predominantly driven by greater demand for data center construction projects, this segment also experienced notable revenue growth within: (a) the hospitality and entertainment market sector, due to select project opportunities, and (b) the institutional market sector, primarily as a result of an increase in revenues from public sector projects. Revenues of this segment for the three months ended March 31, 2026 additionally benefited from greater levels of short-duration projects and service work.

Current wording

Revenues of our United States electrical construction and facilities services segment were $1.66 billion for the three months ended June 30, 2026, a $322.3 million increase compared to revenues of $1.34 billion for the three months ended June 30, 2025. Revenues of this segment for the six months ended June 30, 2026 were $3.11 billion, a $681.8 million increase compared to revenues of $2.43 billion for the six months ended June 30, 2025. This segment’s results for the three and six months ended June 30, 2026 benefited from increased activity across a number of the market sectors we serve as well as incremental acquisition revenues of $20.5 million and $130.9 million, respectively. While the largest increase was seen within the network and communications market sector, predominantly driven by greater demand for data center construction projects, this segment also experienced notable revenue growth within: (a) the institutional market sector, primarily as a result of increased revenues from public sector work, and (b) the hospitality and entertainment market sector, due to select project opportunities. Revenues of this segment for both 2026 periods additionally included greater levels of short-duration projects and service work. Partially offsetting these increases were decreased revenues resulting from: (a) the completion or substantial completion of several construction contracts within: (i) the healthcare market sector and (ii) the high-tech manufacturing market sector, including certain bio-tech and semiconductor projects, and (b) the transportation market sector, reflecting significant progress made on an airport construction project as well as our intentional reduction of roadway lighting and traffic signal project exposure.

Previous wording

Our United States mechanical construction and facilities services segment’s revenues for the three months ended March 31, 2026 were $2.03 billion, a $453.7 million increase compared to revenues of $1.57 billion for the three months ended March 31, 2025. This segment’s results included $123.7 million of incremental acquisition revenues. Similar to our United States electrical construction and facilities services segment, this segment experienced increased revenues within the majority of the market sectors in which we operate, with the most significant increase coming from the network and communications market sector due to greater demand for data center construction projects. Notable growth was additionally generated from: (a) the institutional market sector, including increased education and public sector projects, partially as a result of the incremental acquisition contribution, (b) the manufacturing and industrial market sector, primarily driven by certain food processing projects, (c) the commercial market sector, given an increase in warehousing and distribution project revenues, and (d) the water and wastewater market sector due to greater opportunities in the Southeast region of the United States. Further contributing to the revenue increase within this segment were greater levels of service work, including fire life safety inspection and maintenance. These increases were partially offset by revenue declines from the high-tech manufacturing market sector, largely as we completed certain semiconductor manufacturing construction projects in the prior year.

Current wording

Our United States mechanical construction and facilities services segment’s revenues for the three months ended June 30, 2026 were $2.30 billion, a $545.6 million increase compared to revenues of $1.76 billion for the three months ended June 30, 2025. For the six months ended June 30, 2026, revenues of this segment were $4.33 billion, a $1.0 billion increase compared to revenues of $3.33 billion for the six months ended June 30, 2025. This segment’s results for the three and six months ended June 30, 2026 included $148.7 million and $272.4 million, respectively, of incremental acquisition revenues. This segment experienced increased revenues within the majority of the market sectors in which we operate, with the most significant increase coming from the network and communications market sector due to greater demand for data center construction projects. Notable growth was additionally generated from: (a) the institutional market sector, reflecting increased education and public sector projects, partially as a result of the incremental acquisition contribution, (b) the commercial market sector, primarily given an increase in warehousing and distribution project revenues, and (c) the manufacturing and industrial market sector, including certain food processing projects. Further contributing to the year-over-year revenue increases within this segment were greater levels of service work, including fire life safety inspection and maintenance. These increases were partially offset by revenue declines from the high-tech manufacturing market sector, largely as we completed certain semiconductor manufacturing construction projects in the prior year.

Previous wording

Revenues of our United States building services segment were $772.6 million for the three months ended March 31, 2026 compared to revenues of $742.6 million for the three months ended March 31, 2025. Growth in this segment was generated by its mechanical services division, which experienced: (a) greater service repair and maintenance volumes, given growth in our service contract base, and (b) an increase in building automation and controls projects, as we continue to expand our service offerings in this area.

Current wording

Revenues of our United States building services segment were $837.7 million for the three months ended June 30, 2026 compared to revenues of $793.3 million for the three months ended June 30, 2025. Revenues of this segment for the six months ended June 30, 2026 were $1.61 billion compared to revenues of $1.54 billion for the six months ended June 30, 2025. Growth in this segment for both 2026 periods was generated by: (a) its mechanical services division, which experienced increased: (i) service repair and maintenance volumes, given growth in our service contract base, (ii) HVAC project and retrofit work, as demand for these services remained strong, and (iii) building automation and controls projects, as we continue to expand our service offerings in this area, and (b) its commercial site-based services division due to the award of facilities maintenance contracts with new customers as well as scope or site expansion and greater project work with existing customers.

Previous wording

Revenues of our United States industrial services segment for the three months ended March 31, 2026 were $381.8 million compared to revenues of $359.0 million for the three months ended March 31, 2025. The increase in this segment’s revenues was driven by its field services division as a result of progress made on a large solar project during the first quarter of 2026. Partially offsetting this growth was a decrease in revenues of this segment’s shop services division due to lower heat exchanger sales and related services.

Current wording

Revenues of our United States industrial services segment for the three months ended June 30, 2026 were $353.8 million compared to revenues of $281.1 million for the three months ended June 30, 2025. Revenues of this segment for the six months ended June 30, 2026 were $735.6 million compared to revenues of $640.1 million for the six months ended June 30, 2025. The increase in this segment’s revenues for both 2026 periods was driven by its field services division as a result of: (a) greater turnaround activity, (b) higher petrochemical project volume, and (c) progress made on a large solar project during the first half of 2026. Partially offsetting this growth was a decrease in revenues of this segment’s shop services division due to lower heat exchanger sales and related services.

Previous wording

For the three months ended March 31, 2025, our United Kingdom building services segment generated revenues of $105.3 million.

Current wording

For the three and six months ended June 30, 2025, our United Kingdom building services segment generated revenues of $134.6 million and $239.9 million, respectively.

Previous wording

Consolidated gross profit for the three months ended March 31, 2026 was $864.0 million, or 18.7% of revenues, compared to consolidated gross profit of $722.7 million, or 18.7% of revenues, for the three months ended March 31, 2025. Gross profit for the three months ended March 31, 2026 included incremental acquisition contribution of $48.3 million, net of amortization expense attributable to identifiable intangible assets of $4.9 million. Excluding the impact of acquisitions, the year-over-year increase in gross profit was driven by the revenue growth generated by each of our reportable segments.

Current wording

Gross profit for the three months ended June 30, 2026 was $1.02 billion, or 19.8% of revenues, compared to gross profit of $833.8 million, or 19.4% of revenues, for the three months ended June 30, 2025. Gross profit for the six months ended June 30, 2026 was $1.89 billion, or 19.3% of revenues, compared to gross profit of $1.56 billion, or 19.0% of revenues, for the six months ended June 30, 2025. Gross profit for the three and six months ended June 30, 2026 included incremental acquisition contribution of $34.1 million and $82.4 million, respectively, net of amortization expense attributable to identifiable intangible assets of $3.2 million and $8.1 million, respectively. Excluding the impact of acquisitions, these year-over-year increases resulted from the revenue growth generated by each of our reportable segments as well as an increase in gross profit margin, notably within our United States electrical construction and facilities services segment and our United States building services segment, as described in further detail below.

Previous wording

Our selling, general and administrative expenses for the three months ended March 31, 2026 were $460.1 million, or 9.9% of revenues, compared to selling, general and administrative expenses of $404.0 million, or 10.4% of revenues, for the three months ended March 31, 2025. Selling, general and administrative expenses for the three months ended March 31, 2026 included $27.7 million of incremental expenses directly related to companies acquired, including amortization expense attributable to identifiable intangible assets of $3.9 million.

Current wording

Our selling, general and administrative expenses for the three months ended June 30, 2026 were $475.0 million, or 9.2% of revenues, compared to selling, general and administrative expenses of $418.6 million, or 9.7% of revenues, for the three months ended June 30, 2025. Selling, general and administrative expenses for the six months ended June 30, 2026 were $935.1 million, or 9.6% of revenues, compared to selling, general and administrative expenses of $822.5 million, or 10.1% of revenues, for the six months ended June 30, 2025. Selling, general and administrative expenses for the three and six months ended June 30, 2026 included $20.2 million and $47.8 million, respectively, of incremental expenses directly related to companies acquired, including amortization expense attributable to identifiable intangible assets of $2.4 million and $6.3 million, respectively.

Previous wording

Excluding incremental expenses resulting from acquisitions, the increase in our selling, general and administrative expenses was primarily as a result of greater: (a) incentive compensation expense, predominantly within our United States construction segments and our United States building services segment, given higher projected annual operating results, (b) salaries and related employment expenses, due to additional headcount to support our organic revenue growth as well as annual cost of living adjustments, and (c) rent and other occupancy costs, partially as a result of the continued build-out or expansion of our fabrication facilities.

Current wording

Excluding incremental expenses resulting from acquisitions, the increase in our selling, general and administrative expenses for both 2026 periods was primarily as a result of greater: (a) incentive compensation expense, predominantly within our United States construction segments, given higher projected annual operating results, (b) salaries expense, due to additional headcount to support our organic revenue growth as well as annual cost of living adjustments, (c) rent and other occupancy costs, partially as a result of the continued build-out or expansion of our fabrication facilities, and (d) computer hardware and software costs, driven by various information technology and cybersecurity initiatives currently in process.

Previous wording

Partially offsetting these increases were reductions in: (a) professional fees, as the results for the prior year included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric, and (b) the provision for credit losses, given a reserve taken within our United States industrial services segment in the prior year. Selling, general and administrative expenses additionally decreased by $7.2 million as a result of the sale of EMCOR UK.

Current wording

Partially offsetting the increase in selling, general and administrative expenses for the six months ended June 30, 2026 were reductions in: (a) professional fees, as the results for the prior year included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric, and (b) the provision for credit losses, given a reserve taken within our United States industrial services segment in the prior year. Selling, general and administrative expenses for the three and six months ended June 30, 2026 additionally decreased by $8.2 million and $15.4 million, respectively, as a result of the sale of EMCOR UK.

Previous wording

The 50 basis point decrease in our SG&A margin year-over-year was primarily due to an increase in revenues without a commensurate increase in certain costs as we successfully leveraged our overhead structure during this period of growth.

Current wording

The decrease in our SG&A margin for both 2026 periods was primarily due to an increase in revenues without a commensurate increase in certain costs as we successfully leveraged our overhead structure during this period of growth.

Previous wording

The following table presents our operating income (loss) and operating income (loss) as a percentage of segment revenues (“operating margin”) (in thousands, except for percentages):

Current wording

The following tables present our operating income (loss) and operating income (loss) as a percentage of segment revenues (“operating margin”) (in thousands, except for percentages):

Previous wording

Our United States mechanical construction and facilities services segment’s operating income for the three months ended March 31, 2026 was $221.6 million, an increase of $34.9 million compared to operating income of $186.7 million for the three months ended March 31, 2025. This segment’s operating income for the first quarter of 2026 included incremental acquisition contribution of $12.3 million, net of amortization expense attributable to identifiable intangible assets of $4.9 million. Excluding incremental acquisition contribution, the increase in operating income of this segment resulted from greater gross profit given the growth in its revenues. Greater profitability was experienced across the majority of the market sectors in which we operate, in line with the fluctuations in revenue described above and with the most significant increase in gross profit coming from network and communications. Operating margin of our United States mechanical construction and facilities services segment was 10.9% for the three months ended March 31, 2026, compared to an operating margin of 11.9% for the three months ended March 31, 2025. The 100 basis point decrease in this segment’s operating margin was primarily a result of a change in project mix, which included: (a) a greater percentage of revenues generated from projects for which we are acting as either the construction manager or prime contractor and that carry lower than average gross profit margins, and (b) an increase in the number of guaranteed maximum price and cost plus contracts, particularly in newer geographies or on projects where design or scope is still evolving.

Current wording

Our United States mechanical construction and facilities services segment’s operating income for the three months ended June 30, 2026 was $286.6 million, an increase of $47.9 million compared to operating income of $238.7 million for the three months ended June 30, 2025. Operating income of this segment for the six months ended June 30, 2026 was $508.3 million, an increase of $82.8 million compared to operating income of $425.5 million for the six months ended June 30, 2025. The increase in operating income of this segment for both 2026 periods resulted from greater gross profit within the majority of the market sectors in which we operate, generally in line with the increases in revenue described above and with the most significant increase coming from network and communications. This segment’s operating income for the three and six months ended June 30, 2026 included incremental acquisition contribution of $14.1 million and $26.4 million, respectively, net of amortization expense attributable to identifiable intangible assets of $4.6 million and $9.4 million, respectively. For the three and six months ended June 30, 2026, operating margin of this segment was 12.5% and 11.7%, respectively, compared to an operating margin of 13.6% and 12.8% for the three and six months ended June 30, 2025, respectively. The 110 basis point decrease in this segment’s operating margin for both 2026 periods was primarily a result of a change in project mix, which included: (a) a greater percentage of revenues generated from projects for which we are acting as either the construction manager or prime contractor and that carry lower than average gross profit margins, and (b) an increase in the number of guaranteed maximum price and cost plus contracts, particularly in newer geographies or on projects where design or scope is still evolving.

Previous wording

Our United States industrial services segment reported operating income of $12.8 million, or 3.3% of revenues, for the three months ended March 31, 2026, compared to operating income of $6.8 million, or 1.9% of revenues, for the three months ended March 31, 2025. Contributing to the favorable year-over-year comparison was the impact of a $4.0 million increase in the allowance for credit losses in the prior year period, which negatively impacted this segment’s operating margin by 110 basis points for the three months ended March 31, 2025. Excluding this impact, the increase in operating income and operating margin of this segment was primarily a result of an increase in gross profit and gross profit margin within its field services division due to the revenue growth referenced above, coupled with a more favorable mix of work.

Current wording

Our United States industrial services segment reported operating income of $9.6 million, or 2.7% of revenues, for the three months ended June 30, 2026, compared to an operating loss of $0.4 million, or (0.1)% of revenues, for the three months ended June 30, 2025. For the six months ended June 30, 2026, this segment reported operating income of $22.4 million, or 3.0% of revenues, compared to operating income of $6.3 million, or 1.0% of revenues, for the six months ended June 30, 2025. The increase in operating income of this segment for both 2026 periods was a result of an increase in gross profit within its field services division due to the revenue growth referenced above, while the increase in operating margin was attributable to a reduction in SG&A margin given an increase in revenues without a commensurate increase in certain overhead costs. Additionally contributing to the favorable comparison for the six month period was the impact of a $5.0 million increase in the allowance for credit losses in 2025, which negatively impacted this segment’s operating margin by 80 basis points.

Previous wording

Our corporate administration expenses for the three months ended March 31, 2026 were $45.5 million, compared to $52.2 million for the three months ended March 31, 2025. The reduction in corporate expenses was primarily due to a decrease in professional fees, as the prior year period included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric. This decrease was partially offset by an increase in certain employment expenses.

Current wording

Our corporate administration expenses for the three and six months ended June 30, 2026 were $43.7 million and $89.2 million, respectively, compared to $39.2 million and $91.4 million for the three and six months ended June 30, 2025, respectively. For both 2026 periods, our corporate expenses included greater employment and information technology costs. Offsetting the impact of these increases for the six months ended June 30, 2026 was a decrease in professional fees, as the prior year period included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric.

Previous wording

For the three months ended March 31, 2026, net interest income was $6.2 million, compared to net interest income of $5.4 million for the three months ended March 31, 2025.

Current wording

For the three months ended June 30, 2026, net interest income was $4.3 million, compared to net interest expense of $3.2 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, net interest income was $10.5 million, compared to net interest income of $2.1 million for the six months ended June 30, 2025. These year-over-year fluctuations were a result of: (a) a decrease in interest expense, given the impact in the prior year of borrowings under our revolving credit facility, and (b) an increase in interest income due to a higher average daily invested cash balance.

Previous wording

For the three months ended March 31, 2026, our income tax provision was $104.6 million compared to an income tax provision of $83.5 million for the three months ended March 31, 2025. Our effective income tax rate for the three months ended March 31, 2026 was 25.5% compared to an effective income tax rate for the three months ended March 31, 2025 of 25.8%. Refer to Note 9 - Income Taxes of the notes to consolidated financial statements for further discussion regarding our income tax provision and effective income tax rate.

Current wording

For the three and six months ended June 30, 2026, our income tax provision was $148.0 million and $252.6 million, respectively, compared to an income tax provision of $109.9 million and $193.4 million for the three and six months ended June 30, 2025, respectively. Our effective income tax rate for the three and six months ended June 30, 2026 was 26.8% and 26.3%, respectively, compared to an effective income tax rate for the three and six months ended June 30, 2025 of 26.7% and 26.3%, respectively. Refer to Note 9 - Income Taxes of the notes to consolidated financial statements for further discussion regarding our income tax provision and effective income tax rate.

Previous wording

Our remaining performance obligations at March 31, 2026 were a record $15.62 billion compared to $13.25 billion at December 31, 2025 and $11.75 billion at March 31, 2025. When compared to December 31, 2025, remaining performance obligations increased by $2.37 billion due to new contract awards within our United States construction segments and our United States building services segment. We experienced growth in remaining performance obligations from the majority of the market sectors we serve, with the most significant increases within: (a) network and communications, predominantly as a result of several data center construction contracts, (b) water and wastewater, given recent project awards in the Southeast region of the United States, (c) institutional, largely as we continue to see demand for our services from education customers, including a number of colleges and universities, and (d) healthcare, resulting from certain contract awards in the Northeast region of the United States. Partially offsetting these increases were reductions from the manufacturing and industrial and hospitality and entertainment market sectors, due to progress made on certain projects during the first quarter of 2026. See Note 3 - Revenue from Contracts with Customers of the notes to consolidated financial statements for further disclosure regarding our remaining performance obligations.

Current wording

Our remaining performance obligations at June 30, 2026 were a record $17.14 billion compared to $13.25 billion at December 31, 2025 and $11.91 billion at June 30, 2025. When compared to December 31, 2025, remaining performance obligations increased by $3.89 billion due to new contract awards within our United States construction segments and our United States building services segment. We experienced growth in remaining performance obligations from the majority of the market sectors we serve, with the most significant increases within: (a) network and communications, predominantly as a result of several data center construction contracts, (b) healthcare, primarily resulting from certain contract awards in the Northeast region of the United States, (c) water and wastewater, given recent project awards in the Southeast region of the United States, and (d) institutional, largely as we continue to see demand for our services from education customers, including a number of colleges and universities. Partially offsetting these increases were reductions from the manufacturing and industrial and hospitality and entertainment market sectors, due to progress made on certain projects during the first half of 2026. See Note 3 - Revenue from Contracts with Customers of the notes to consolidated financial statements for further disclosure regarding our remaining performance obligations.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of $916.4 million, which are maintained in depository accounts and highly liquid investments with original maturity dates of three months or less. Both our short-term and long-term liquidity requirements are expected to be met through our cash and cash equivalent balances, cash generated from our operations, and, as necessary, the borrowing capacity under our revolving credit facility. Our credit agreement provides for a $1.30 billion revolving credit facility, for which there was $1.23 billion of available capacity as of March 31, 2026.

Current wording

As of June 30, 2026, we had cash and cash equivalents of $924.4 million, which are maintained in depository accounts and highly liquid investments with original maturity dates of three months or less. Both our short-term and long-term liquidity requirements are expected to be met through our cash and cash equivalent balances, cash generated from our operations, and, as necessary, the borrowing capacity under our revolving credit facility. Our credit agreement provides for a $1.30 billion revolving credit facility, for which there was $1.23 billion of available capacity as of June 30, 2026.

Previous wording

During the three months ended March 31, 2026, our cash balance decreased by $195.5 million from $1.11 billion at December 31, 2025 to $916.4 million at March 31, 2026. Changes in our cash position from December 31, 2025 to March 31, 2026 are described in further detail below.

Current wording

During the six months ended June 30, 2026, our cash balance decreased by $187.6 million from $1.11 billion at December 31, 2025 to $924.4 million at June 30, 2026. Changes in our cash position from December 31, 2025 to June 30, 2026 are described in further detail below.

Previous wording

Operating Activities – Operating cash flows generally represent our net income as adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities for the three months ended March 31, 2026 was $0.6 million compared to $108.5 million for the three months ended March 31, 2025. The decrease in our operating cash flow was primarily a result of an increase in accounts receivable given our strong organic revenue growth during the first quarter of 2026. These amounts will be converted to cash as the year progresses and payments are received by our customers in the ordinary course of business.

Current wording

Operating Activities – Operating cash flows generally represent our net income as adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities for the six months ended June 30, 2026 was $289.9 million compared to $302.2 million for the six months ended June 30, 2025. Despite the increase in our net income, the decrease in our operating cash flow was primarily a result of an increase in working capital given our strong organic revenue growth during the first half of 2026.

Previous wording

Investing Activities – Investing cash flows consist primarily of payments for acquisition of businesses, capital expenditures, and proceeds from the sale or disposal of property, plant, and equipment or other long-term assets. Net cash used in investing activities for the three months ended March 31, 2026 decreased by $803.7 million compared to the three months ended March 31, 2025, primarily due to a decrease in payments for acquisitions given the acquisition of Miller Electric in the prior year period.

Current wording

Investing Activities – Investing cash flows consist primarily of payments for acquisition of businesses, capital expenditures, and proceeds from the sale or disposal of property, plant, and equipment or other long-term assets. Net cash used in investing activities for the six months ended June 30, 2026 decreased by $786.1 million compared to the six months ended June 30, 2025, primarily due to a decrease in payments for acquisitions given the acquisition of Miller Electric in the prior year period.

Previous wording

Financing Activities – Financing cash flows consist primarily of the issuance and repayment of short-term and long-term debt, repurchases of common stock, payments of dividends to stockholders, and the issuance of common stock through certain equity plans. Net cash used in financing activities was $124.4 million for the three months ended March 31, 2026 compared to $0.8 million for the three months ended March 31, 2025. The $123.5 million increase in cash used in financing activities was primarily due to the impact in the first quarter of 2025 of $250.0 million of proceeds from our revolving credit facility, partially offset by a $137.7 million decrease in common stock repurchases made by us year-over-year. The timing of common stock repurchases is at management’s discretion subject to securities laws and other legal requirements and depends upon several factors, including market and business conditions, current and anticipated future liquidity, share price, and share availability, among others. For additional detail regarding our share repurchase program, refer to Note 10 - Common Stock of the notes to consolidated financial statements.

Current wording

Financing Activities – Financing cash flows consist primarily of the issuance and repayment of short-term and long-term debt, repurchases of common stock, payments of dividends to stockholders, and the issuance of common stock through certain equity plans. Net cash used in financing activities was $324.7 million for the six months ended June 30, 2026 compared to $231.1 million for the six months ended June 30, 2025. The $93.6 million increase in cash used in financing activities was primarily due to the impact of $250.0 million in net borrowings made under our revolving credit facility during the first half of 2025, partially offset by a $163.6 million decrease in common stock repurchases made by us year-over-year. The timing of common stock repurchases is at management’s discretion subject to securities laws and other legal requirements and depends upon several factors, including market and business conditions, current and anticipated future liquidity, share price, and share availability, among others. For additional detail regarding our share repurchase program, refer to Note 10 - Common Stock of the notes to consolidated financial statements.

Previous wording

We currently pay a regular quarterly dividend of $0.40 per share. For the three months ended March 31, 2026 and 2025, cash payments related to dividends were $17.8 million and $11.5 million, respectively. Our credit agreement places limitations on the payment of dividends on our common stock. However, we do not believe that the terms of such agreement currently materially limit our ability to pay such quarterly dividends for the foreseeable future.

Current wording

We currently pay a regular quarterly dividend of $0.40 per share. For the six months ended June 30, 2026 and 2025, cash payments related to dividends were $35.6 million and $22.6 million, respectively. Our credit agreement places limitations on the payment of dividends on our common stock. However, we do not believe that the terms of such agreement currently materially limit our ability to pay such quarterly dividends for the foreseeable future.

Previous wording

Operating and Finance Leases – In the normal course of business, we lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases. Future payments for such leases, excluding leases with initial terms of one year or less, were $622.4 million at March 31, 2026, with $127.5 million payable within the next 12 months.

Current wording

Operating and Finance Leases – In the normal course of business, we lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases. Future payments for such leases, excluding leases with initial terms of one year or less, were $661.7 million at June 30, 2026, with $132.8 million payable within the next 12 months.

Previous wording

Open Purchase Obligations – As of March 31, 2026, we had $3.41 billion of open purchase obligations, of which payments totaling $2.82 billion are expected to become due within the next 12 months. These obligations represent open purchase orders to suppliers and subcontractors related to our construction and services contracts. These purchase orders are not reflected in the Consolidated Balance Sheets and are not expected to impact future liquidity as amounts should be recovered through customer billings.

Current wording

Open Purchase Obligations – As of June 30, 2026, we had $3.93 billion of open purchase obligations, of which payments totaling $3.07 billion are expected to become due within the next 12 months. These obligations represent open purchase orders to suppliers and subcontractors related to our construction and services contracts. These purchase orders are not reflected in the Consolidated Balance Sheets and are not expected to impact future liquidity as amounts should be recovered through customer billings.

Previous wording

Insurance Obligations – As described in further detail in Note 11 - Commitments and Contingencies of the notes to consolidated financial statements, we have loss payment deductibles and/or self-insured retentions for certain insurance matters. As of March 31, 2026, our insurance liabilities, net of estimated recoveries, were $315.8 million. Of this net amount, $73.5 million is estimated to be payable within the next 12 months. Due to many uncertainties inherent in resolving these matters, it is not practical to estimate these payments beyond such period. To the extent that the amount required to settle claims covered by insurance continues to increase, the cost of our insurance coverage, including premiums and deductibles, is likely to increase.

Current wording

Insurance Obligations – As described in further detail in Note 11 - Commitments and Contingencies of the notes to consolidated financial statements, we have loss payment deductibles and/or self-insured retentions for certain insurance matters. As of June 30, 2026, our insurance liabilities, net of estimated recoveries, were $330.4 million. Of this net amount, $80.1 million is estimated to be payable within the next 12 months. Due to many uncertainties inherent in resolving these matters, it is not practical to estimate these payments beyond such period. To the extent that the amount required to settle claims covered by insurance continues to increase, the cost of our insurance coverage, including premiums and deductibles, is likely to increase.

Previous wording

Contingent Consideration Liabilities – We have incurred liabilities related to contingent consideration arrangements associated with certain acquisitions, payable in the event discrete performance objectives are achieved by the acquired businesses during designated post-acquisition periods. The aggregate amount of these liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, changes in the fair value of amounts owed based on performance during such post-acquisition periods, and accretion in present value. As of March 31, 2026, the present value of expected future payments relating to these contingent consideration arrangements was $2.5 million. Of this amount, $2.3 million is estimated as being payable within the next 12 months.

Current wording

Contingent Consideration Liabilities – We have incurred liabilities related to contingent consideration arrangements associated with certain acquisitions, payable in the event discrete performance objectives are achieved by the acquired businesses during designated post-acquisition periods. The aggregate amount of these liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, changes in the fair value of amounts owed based on performance during such post-acquisition periods, and accretion in present value. As of June 30, 2026, the present value of expected future payments relating to these contingent consideration arrangements was $5.7 million. Of this amount, $4.3 million is estimated as being payable within the next 12 months.

Previous wording

The terms of our construction contracts frequently require that we obtain from surety companies, and provide to our customers, surety bonds as a condition to the award of such contracts. These surety bonds are issued in return for premiums, which vary depending on the size and type of the bond, and secure our payment and performance obligations under such contracts. We have agreed to indemnify the surety companies for amounts, if any, paid by them in respect of surety bonds issued on our behalf. As of March 31, 2026, based on the percentage-of-completion of our projects covered by surety bonds, our aggregate estimated exposure, assuming defaults on all our then existing contractual obligations, was $4.19 billion, which represents approximately 27% of our total remaining performance obligations.

Current wording

The terms of our construction contracts frequently require that we obtain from surety companies, and provide to our customers, surety bonds as a condition to the award of such contracts. These surety bonds are issued in return for premiums, which vary depending on the size and type of the bond, and secure our payment and performance obligations under such contracts. We have agreed to indemnify the surety companies for amounts, if any, paid by them in respect of surety bonds issued on our behalf. As of June 30, 2026, based on the percentage-of-completion of our projects covered by surety bonds, our aggregate estimated exposure, assuming defaults on all our then existing contractual obligations, was $4.30 billion, which represents approximately 25% of our total remaining performance obligations.

Previous wording

Surety bonds are sometimes provided to secure obligations for wages and benefits payable to or for certain of our employees, at the request of labor unions representing such employees. In addition, surety bonds or letters of credit may be issued as collateral for certain insurance obligations. As of March 31, 2026, we satisfied $105.5 million and $72.8 million of the collateral requirements of our insurance programs by utilizing surety bonds and letters of credit, respectively. All such letters of credit were issued under our revolving credit facility, therefore reducing the available capacity of such facility.

Current wording

Surety bonds are sometimes provided to secure obligations for wages and benefits payable to or for certain of our employees, at the request of labor unions representing such employees. In addition, surety bonds or letters of credit may be issued as collateral for certain insurance obligations. As of June 30, 2026, we satisfied $105.5 million and $73.1 million of the collateral requirements of our insurance programs by utilizing surety bonds and letters of credit, respectively. All such letters of credit were issued under our revolving credit facility, therefore reducing the available capacity of such facility.

Previous wording

The preparation of our consolidated financial statements is based on the application of significant accounting policies, which require management to make estimates and assumptions. Our significant accounting policies are described further in Note 2 - Summary of Significant Accounting Policies of the notes to consolidated financial statements included in Item 8. Financial Statements and Supplementary Data of our Form 10-K for the year ended December 31, 2025. We base our estimates on historical experience, known or expected trends, third-party valuations, and various other assumptions that we believe to be reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. There have been no significant changes to our critical accounting policies or methods during the three months ended March 31, 2026.

Current wording

The preparation of our consolidated financial statements is based on the application of significant accounting policies, which require management to make estimates and assumptions. Our significant accounting policies are described further in Note 2 - Summary of Significant Accounting Policies of the notes to consolidated financial statements included in Item 8. Financial Statements and Supplementary Data of our Form 10-K for the year ended December 31, 2025. We base our estimates on historical experience, known or expected trends, third-party valuations, and various other assumptions that we believe to be reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. There have been no significant changes to our critical accounting policies or methods during the six months ended June 30, 2026.