MYR GROUP INC

Previous wording

We have operated in the transmission and distribution industry since 1891. We are one of the largest U.S. contractors servicing the T&D sector of the electric utility industry and provide T&D services throughout the United States and in Ontario, Canada. Our T&D customers include many of the leading companies in the electric utility industry. We have provided electrical contracting services for commercial and industrial construction since 1912. Our C&I segment provides services in the United States and in western Canada. Our C&I customers include facility owners and general contractors. We strive to maintain our

Current wording

We have operated in the transmission and distribution industry since 1891. We are one of the largest U.S. contractors servicing the T&D sector of the electric utility industry and provide T&D services throughout the United States and in Ontario, Canada. Our T&D customers include many of the leading companies in the electric utility industry. We have provided electrical contracting services for commercial and industrial construction since 1912. Our C&I segment provides services in the United States and in western Canada. Our C&I customers include general contractors and facility owners. We strive to maintain our status as a preferred provider to our T&D and C&I customers.

Previous wording

We believe legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand, particularly in connection with electric power infrastructure, transportation and clean energy spending. We believe the legislative actions are likely to provide greater long-term opportunity in both of our reporting segments. However, we expect our financial results, in both of our segments, to continue to be affected by delays and cost volatility through 2024, due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns. These factors will cause us to carry impacted projects at lower margins until their completion and may result in decelerations in project opportunities and awards.

Current wording

We believe legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand, particularly in connection with electric power infrastructure, expansion of domestic manufacturing, transportation and clean energy spending. We believe legislative actions are likely to provide greater long-term opportunity in both of our reporting segments. However, we may experience unanticipated volatility associated with policy changes and tariffs. Prolonged uncertainty in the business environment and higher inflation could also impact customer demand and our profitability.

Previous wording

We had consolidated revenues for the nine months ended September 30, 2024 of $2.53 billion, of which 56.5% was attributable to our T&D customers and 43.5% was attributable to our C&I customers. Our consolidated revenues for the nine months ended September 30, 2023 were $2.64 billion. For the nine months ended September 30, 2024, our net income and EBITDA(1) were $14.3 million and $72.3 million, respectively, compared to $66.9 million and $135.4 million, respectively, for the nine months ended September 30, 2023.

Current wording

We had consolidated revenues for the three months ended March 31, 2025 of $833.6 million, of which 55.4% was attributable to our T&D customers and 44.6% was attributable to our C&I customers. Our consolidated revenues for the three months ended March 31, 2024 were $815.6 million. For the three months ended March 31, 2025, our net income and EBITDA(1) were $23.3 million and $50.2 million, respectively, compared to $18.9 million and $39.8 million, respectively, for the three months ended March 31, 2024.

Previous wording

We believe there is an ongoing need for utilities to sustain investment in their transmission systems to improve reliability, reduce congestion, connect to new clean energy sources and support future load growth. Consequently, we believe that we will continue to see continued bidding activity on large transmission projects going forward. The timing of multi-year transmission project awards and substantial construction activity is difficult to predict due to regulatory requirements and the permitting needed to commence construction. Significant construction on any large, multi-year projects awarded in the remainder of 2024 will not likely begin until 2025. Bidding and construction activity for small to medium-size transmission projects and upgrades remain active, and we expect this trend to continue.

Current wording

We believe there is an ongoing need for utilities to sustain investment in their transmission systems to improve reliability, reduce congestion, connect to new clean energy sources and support future load growth. Consequently, we believe that we will see continued bidding activity on large transmission projects going forward. The timing of multi-year transmission project awards and substantial construction activity is difficult to predict due to regulatory requirements and the permitting needed to commence construction. Significant construction on any large, multi-year projects awarded in the remainder of 2025 will not likely begin until 2026. Bidding and construction activity for small to medium-size transmission projects and upgrades remain active, and we expect this trend to continue.

Previous wording

We believe there is a need for further investment by utilities on their distribution systems to properly maintain or meet reliability requirements. We continue to see strong bidding activity in some of our electric distribution markets. We believe the increased storm activity and destruction caused by wildfires will cause a push to strengthen utility distribution systems against catastrophic damage. Distribution systems may also require upgrades to accommodate additional distributed energy resources and increased electrification. We expect to see an increase in the distribution market opportunities during the rest of 2024.

Current wording

We believe there is a need for further investment by utilities on their distribution systems to properly maintain or meet reliability requirements. We continue to see strong activity in many of our electric distribution markets. We believe the increased storm activity and destruction caused by wildfires will cause a push to strengthen utility distribution systems against catastrophic damage. Distribution systems may also require upgrades to accommodate additional distributed energy resources and increased electrification. We expect to see an increase in the distribution market opportunities during the rest of 2025.

Previous wording

In addition, the United States has experienced decades of underfunded economic expansion and aging infrastructure that have challenged the capacity of public water and transportation infrastructure forcing states and municipalities to seek creative means to fund needed expansion and repair. We believe the need for expanding public infrastructure in both the United States and Canada will offer opportunity in our C&I segment for several years. Legislation and regulation that promotes domestic manufacturing could also create opportunity for our C&I segment. We expect the long-term growth in our C&I segment to generally track the overall growth of the regions we serve.

Current wording

Our C&I bidding opportunities remain strong and we believe we will see continued opportunities in the primary markets we serve such as data centers, transportation, data centers, health care, clean energy and warehousing. In addition, the United States has experienced decades of underfunded economic expansion and aging infrastructure that have challenged the capacity of public water and transportation infrastructure forcing states and municipalities to seek creative means to fund needed expansion and repair. We believe the need for expanding public infrastructure in both the United States and Canada will offer opportunity in our C&I segment for several years. Legislation and regulation that promotes domestic manufacturing could also create opportunity for our C&I segment. We expect the long-term growth in our C&I segment to generally track the overall growth of the regions we serve.

Previous wording

We continue to implement strategies that are designed to further expand our capabilities and effectively allocate capital. We have maintained a strong balance sheet, while also supporting our organic growth with capital expenditures and working capital and repurchasing our shares. During the nine months ended September 30, 2024, the Company repurchased 643,549 shares of its common stock under our repurchase program at a weighted-average price of $116.54 per share, exhausting substantially all of the authorized funds under our share repurchase program. We believe the borrowing availability under our $490 million revolving credit facility and future cash flow from operations will enable us to support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares.

Current wording

We continue to implement strategies that are designed to further expand our capabilities and effectively allocate capital. We have maintained a strong balance sheet, while also supporting our organic growth with capital expenditures and working capital and repurchasing our shares. During the three months ended March 31, 2025, the Company repurchased 639,207 shares of its common stock under our repurchase program at a weighted-average price of $117.33 per share, exhausting substantially all of the authorized funds under our share repurchase program. We believe the borrowing availability under our $490 million revolving credit facility and future cash flow from operations will enable us to support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares.

Previous wording

Our backlog was $2.60 billion at September 30, 2024, compared to $2.51 billion at December 31, 2023 and $2.62 billion at September 30, 2023. Our backlog at September 30, 2024 increased $54.4 million from June 30, 2024. Backlog in the T&D segment decreased $32.0 million and C&I backlog increased $86.3 million compared to June 30, 2024. Our backlog as of September 30, 2024 included our proportionate share of joint venture backlog totaling $186.2 million, compared to $188.7 million at June 30, 2024.

Current wording

Our backlog was $2.64 billion at March 31, 2025, compared to $2.58 billion at December 31, 2024 and $2.43 billion at March 31, 2024. Our backlog at March 31, 2025 increased $63.8 million from December 31, 2024. Backlog in the T&D segment increased $54.4 million and C&I backlog increased $9.4 million compared to December 31, 2024. Our backlog as of March 31, 2025 included our proportionate share of joint venture backlog totaling $169.2 million, compared to $172.3 million at December 31, 2024.

Previous wording

Revenues. Revenues decreased $51.5 million or 5.5%, to $888.0 million for the three months ended September 30, 2024 from $939.5 million for the three months ended September 30, 2023. The decrease was primarily due to a decrease of $81.0 million in revenue on transmission projects, offset by an increase of $15.3 million in C&I revenue, and an increase of $14.3 million in revenue on distribution projects.

Current wording

Revenues increased $18.0 million, or 2.2%, to $833.6 million for the three months ended March 31, 2025 from $815.6 million for the three months ended March 31, 2024. The increase was primarily due to an increase of $46.7 million in C&I revenue, and an increase of $15.5 million in revenue on distribution projects, offset by a decrease of $44.1 million in revenue on transmission projects, primarily related to clean energy.

Previous wording

Gross margin. Gross margin for the three months ended September 30, 2024 decreased to 8.7% compared to 9.8% for the three months ended September 30, 2023. The decrease in gross margin was primarily impacted by significant changes in our estimated gross profit on certain projects resulting in a net gross margin decrease of 3.9% for the three months ended September 30, 2024, compared to a net decrease of 1.3% for the three months ended September 30, 2023. During the three months ended September 30, 2024, significant estimate changes negatively impacted gross margin by 4.7%, primarily related to clean energy projects in T&D, the unfavorable impact of a C&I project, as well as an increase in costs associated with unfavorable job closeouts, and labor and project inefficiencies. In addition, significant estimate changes in gross profit positively impacted gross margin by 0.8% and largely related to better-than-anticipated productivity and a favorable change order.

Current wording

Gross margin for the three months ended March 31, 2025 increased to 11.6% compared to 10.6% for the three months ended March 31, 2024. The increase in gross margin was primarily due to a larger portion of our projects progressing at higher contractual margins, some of which are nearing completion, during the three months ended March 31, 2025. Gross margin was also impacted by significant changes in our estimated gross profit on certain projects resulting in a net gross margin decrease of 1.1% for the three months ended March 31, 2025, compared to a net decrease of 1.2% for the three months ended March 31, 2024. During the three months ended March 31, 2025, significant estimate changes negatively impacted gross margin by 2.1% and largely related to an increase in costs associated with labor and project inefficiencies and unfavorable change orders. In addition, significant estimate changes in gross profit positively impacted gross margin by 1.0%, primarily related to favorable change orders, better-than-anticipated productivity and a favorable job closeout.

Previous wording

Selling, general and administrative expenses. SG&A was $181.5 million for the nine months ended September 30, 2024 compared to $174.6 million for the nine months ended September 30, 2023. The period-over-period increase of $6.9 million was primarily due to an increase of $4.2 million of contingent compensation expense related to a prior acquisition and an increase in employee-related expenses to support future growth, partially offset by a decrease in employee incentive compensation costs.

Current wording

Selling, general and administrative expenses were $62.5 million for the three months ended March 31, 2025 compared to $62.2 million for the three months ended March 31, 2024. The period-over-period increase of $0.3 million was primarily due to an increase in in employee-related expenses to support future growth and an increase in employee incentive compensation costs. These increases were partially offset by $3.2 million of contingent compensation expense, related to a prior acquisition, recognized during the three months ended March 31, 2024.

Previous wording

Interest expense. Interest expense was $2.0 million for three months ended September 30, 2024 compared to $1.3 million for the three months ended September 30, 2023. This increase was attributable to higher average outstanding debt balances during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023.

Current wording

Interest expense was $1.4 million for three months ended March 31, 2025 compared to $1.1 million for the three months ended March 31, 2024. This increase was attributable to higher average outstanding debt balances partially offset by lower interest rates during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Previous wording

Income tax expense. Income tax expense was $7.9 million for the three months ended September 30, 2024, with an effective tax rate of 42.5%, compared to the expense of $9.3 million for the three months ended September 30, 2023, with an effective tax rate of 30.3%. The increase in the tax rate for the three months ended September 30, 2024 was primarily due to higher permanent difference items mostly related to deductibility limits of contingent compensation, associated with a prior acquisition, which was successfully achieved during the third quarter of 2024, as well as higher U.S. taxes on Canadian income.

Current wording

Income tax expense was $9.5 million for the three months ended March 31, 2025, with an effective tax rate of 28.9%, compared to the income tax expense of $4.2 million for the three months ended March 31, 2024, with an effective tax rate of 18.0%. The increase in the tax rate for the three months ended March 31, 2025 was primarily due to no stock compensation excess tax benefits.

Previous wording

Net income. Net income was $10.6 million for the three months ended September 30, 2024 compared to net income of $21.5 million for the three months ended September 30, 2023. The decrease was primarily due to the reasons stated earlier.

Current wording

Net income was $23.3 million for the three months ended March 31, 2025 compared to net income of $18.9 million for the three months ended March 31, 2024. The increase was primarily due to the reasons stated earlier.

Previous wording

Revenues for our C&I segment for the three months ended September 30, 2024 were $406.2 million compared to $390.9 million for the three months ended September 30, 2023, an increase of $15.3 million, or 3.9%. The increase in revenue was related to an increase of $11.6 million in revenue on fixed priced contracts, an increase of $6.8 million on T&E contracts, offset by a decrease of $3.1 million in revenues on unit price work.

Current wording

Revenues for our C&I segment for the three months ended March 31, 2025 were $371.9 million compared to $325.2 million for the three months ended March 31, 2024, a increase of $46.7 million, or 14.4%. The increase in revenue was related to an increase of $29.0 million in revenue on fixed priced contracts, an increase of $16.4 million on T&E contracts and an increase of $1.3 million in revenues on unit price work.

Previous wording

As of September 30, 2024, we had working capital of $269.2 million. We define working capital as current assets less current liabilities. During the nine months ended September 30, 2024, operating activities of our business provided net cash of $66.0 million, compared to $28.4 million of cash provided for the nine months ended September 30, 2023. Cash flow from operations is primarily influenced by operating margins, timing of contract performance and the type of services we provide to our customers. The $37.6 million year-over-year increase in cash provided by operating activities was primarily due to favorable net changes in operating assets and liabilities of $86.5 million, offset by a decrease of $52.6 million in net income. The favorable change in operating assets and liabilities was primarily due to the net favorable year-over-year changes in various working capital accounts that relate primarily to construction activities (accounts receivable, contract assets, accounts payable and contract liabilities) of $79.6 million and the favorable change of $9.4 million in other liabilities. The net favorable changes of $79.6 million in cash provided by working capital accounts, mainly related to construction activities, was due to the timing of billings and payments under our contracts. The favorable change of $9.4 million in other liabilities was primarily due to the timing of employee related wage and tax payments.

Current wording

As of March 31, 2025, we had working capital of $229.5 million. We define working capital as current assets less current liabilities. During the three months ended March 31, 2025, operating activities of our business provided net cash of $83.3 million, compared to $7.7 million of cash provided for the three months ended March 31, 2024. Cash flow from operations is primarily influenced by operating margins, timing of contract performance and the type of services we provide to our customers. The $75.6 million year-over-year increase in cash provided by operating activities was primarily due to favorable net changes in operating assets and liabilities of $70.6 million, and an increase of $4.4 million in net income. The favorable change in operating assets and liabilities was primarily due to the net favorable year-over-year changes in various working capital accounts that relate primarily to construction activities (accounts receivable, contract assets, accounts payable and contract liabilities) of $44.4 million and the favorable change of $27.2 million in other liabilities. The net favorable changes of $44.4 million in cash provided by working capital accounts, mainly related to construction activities, was due to the timing of billings and payments under our contracts. The favorable change of $27.2 million in other liabilities was primarily due to the timing of employee related wage and tax payments and changes in our employee incentive compensation accruals.

Previous wording

In the nine months ended September 30, 2024, we used net cash of $56.8 million in investing activities consisting of $63.6 million for capital expenditures, partially offset by $6.8 million of proceeds from the sale of equipment.

Current wording

In the three months ended March 31, 2025, we used net cash of $10.9 million in investing activities consisting of $13.1 million for capital expenditures, partially offset by $2.2 million of proceeds from the sale of equipment.

Previous wording

In the nine months ended September 30, 2024, financing activities used net cash of $26.0 million, consisting primarily of $75.0 million of share repurchases under our share repurchase program, $7.0 million of payments under our equipment notes and $5.9 million of shares repurchased to satisfy tax obligations under our stock compensation programs, partially offset by $64.0 million of net borrowings under our revolving line of credit.

Current wording

In the three months ended March 31, 2025, financing activities used net cash of $65.0 million, consisting primarily of $75.0 million of share repurchases under our share repurchase program, $2.5 million of shares repurchased to satisfy tax obligations under our stock compensation programs and $2.2 million of payments under our equipment notes, partially offset by $14.9 million of net borrowings under our revolving line of credit.

Previous wording

We believe our $375.5 million borrowing availability under our revolving line of credit as of September 30, 2024, future cash flow from operations and our ability to utilize short-term and long-term leases will provide sufficient liquidity for our short-term and long-term needs. Our primary short-term liquidity needs include cash for operations, debt service requirements, capital expenditures, and acquisition and joint venture opportunities. We believe we have adequate sources of liquidity to meet our long-term liquidity needs and foreseeable material cash requirements, including those associated with funding future acquisition opportunities. We continue to invest in developing key management and craft personnel in both our T&D and C&I segments and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity.

Current wording

We believe our $379.4 million borrowing availability under our revolving line of credit as of March 31, 2025, future cash flow from operations and our ability to utilize short-term and long-term leases will provide sufficient liquidity for our short-term and long-term needs. Our primary short-term liquidity needs include cash for operations, debt service requirements, capital expenditures, and acquisition and joint venture opportunities. We believe we have adequate sources of liquidity to meet our long-term liquidity needs and foreseeable material cash requirements, including those associated with funding future acquisition opportunities. We continue to invest in developing key management and craft personnel in both our T&D and C&I segments and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity.

Previous wording

We had $77.2 million and $13.2 million of borrowings outstanding under the Facility as of September 30, 2024 and December 31, 2023, respectively.

Current wording

We had $73.3 million and $58.4 million of borrowings outstanding under the Facility as of March 31, 2025 and December 31, 2024, respectively.

Previous wording

As of September 30, 2024, we had $37.3 million in letters of credit outstanding under our Credit Agreement, including $32.6 million related to the Company's payment obligation under its insurance programs and $4.7 million related to contract performance obligations. As of December 31, 2023, we had $34.4 million in letters of credit outstanding under our Credit Agreement, including $27.1 million related to the Company's payment obligations under its insurance programs and $7.3 million related to contract performance obligations.

Current wording

As of March 31, 2025, we had $34.5 million in letters of credit outstanding under our Credit Agreement, including $29.8 million related to the Company's payment obligation under its insurance programs and $4.7 million related to contract performance obligations. As of December 31, 2024, we had $37.3 million in letters of credit outstanding under our Credit Agreement, including $32.6 million related to the Company's payment obligations under its insurance programs and $4.7 million related to contract performance obligations.

Previous wording

As of September 30, 2024, we had one outstanding Equipment Note collateralized by equipment and vehicles owned by us. As of December 31, 2023, we had two outstanding Equipment Notes collateralized by equipment and vehicles owned by us. As of September 30, 2024 and December 31, 2023, we also had one other equipment note outstanding collateralized by a vehicle owned by us. The outstanding balance of all equipment notes was $16.0 million as of September 30, 2024 and $23.0 million as of December 31, 2023. As of September 30, 2024, we had outstanding short-term and long-term equipment notes of approximately $4.4 million and $11.6 million, respectively. As of December 31, 2023, we had outstanding short-term and long-term equipment notes of approximately $7.1 million and $16.0 million, respectively.

Current wording

As of March 31, 2025 and December 31, 2024, we had one outstanding Equipment Note collateralized by equipment and vehicles owned by us. As of March 31, 2025 and December 31, 2024, we also had one other equipment note outstanding collateralized by a vehicle owned by us. The outstanding balance of all equipment notes was $13.8 million as of March 31, 2025 and $16.0 million as of December 31, 2024. As of March 31, 2025, we had outstanding short-term and long-term equipment notes of approximately $4.5 million and $9.4 million, respectively. As of December 31, 2024, we had outstanding short-term and long-term equipment notes of approximately $4.4 million and $11.6 million, respectively.

Previous wording

From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to nine years, some of which may include options to extend the leases for up to ten years, and some of which may include options to terminate the leases within one year. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive.

Current wording

From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from less than one to nine years, some of which may include options to extend the leases for up to ten years, and some of which may include options to terminate the leases within one year. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive.

Previous wording

The outstanding balance of operating lease obligations was $40.6 million as of September 30, 2024, consisting of short-term and long-term operating lease obligations of approximately $11.1 million and $29.5 million, respectively. The outstanding balance of operating lease obligations was $35.0 million as of December 31, 2023, consisting of short-term and long-term operating lease obligations of approximately $9.2 million and $25.8 million, respectively.

Current wording

The outstanding balance of operating lease obligations was $42.3 million as of March 31, 2025, consisting of short-term and long-term operating lease obligations of approximately $12.2 million and $30.1 million, respectively. The outstanding balance of operating lease obligations was $42.6 million as of December 31, 2024, consisting of short-term and long-term operating lease obligations of approximately $12.1 million and $30.5 million, respectively.

Previous wording

The outstanding balance of finance lease obligations was $3.5 million as of September 30, 2024, consisting of short-term and long-term finance lease obligations of approximately $1.2 million and $2.3 million, respectively. As of December 31, 2023 we had $2.3 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $2.0 million and $0.3 million, respectively.

Current wording

The outstanding balance of finance lease obligations was $2.6 million as of March 31, 2025, consisting of short-term and long-term finance lease obligations of approximately $0.9 million and $1.7 million, respectively. As of December 31, 2024, we had $3.0 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $1.1 million and $1.9 million, respectively.

Previous wording

As of September 30, 2024, we had approximately $5.5 million in outstanding purchase obligations for certain construction equipment to be paid with cash outlays scheduled to occur in 2024 and 2025.

Current wording

As of March 31, 2025, we had approximately $14.2 million in outstanding purchase obligations for certain construction equipment to be paid with cash outlays scheduled to occur in 2025.

Previous wording

Many customers, particularly in connection with new construction, require us to post performance and payment bonds issued by a financial institution known as a surety. These bonds provide a guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors. If we fail to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. We must reimburse our sureties for any expenses or outlays they incur. Under our continuing indemnity and security agreements with the issuers of the bonds, we may be required to grant them a security interest relating to a particular project. We believe that it is unlikely that we will have to fund significant claims under our surety arrangements. As of September 30, 2024, an aggregate of approximately $2.83 billion in original face amount of bonds issued by our sureties were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $741.6 million as of September 30, 2024.

Current wording

Many customers, particularly in connection with new construction, require us to post performance and payment bonds issued by a financial institution known as a surety. These bonds provide a guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors. If we fail to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. We must reimburse our sureties for any expenses or outlays they incur. Under our continuing indemnity and security agreements with the issuers of the bonds, we may be required to grant them a security interest relating to a particular project. We believe that it is unlikely that we will have to fund significant claims under our surety arrangements. As of March 31, 2025, an aggregate of approximately $2.40 billion in original face amount of bonds issued by our sureties were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $684.2 million as of March 31, 2025.

Previous wording

•Negative economic and market conditions including tariffs on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.

Current wording

•Negative economic and market conditions including tariffs and inflation on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.

Previous wording

•Changes in tax laws or our interpretations of tax laws could materially impact our income tax liabilities.

Current wording

•Changes in tax laws or our interpretations of tax laws could materially impact our tax liabilities.

Previous wording

•Our dependence on suppliers, subcontractors and equipment manufacturers has in the past and may in the future expose us to the risk of loss in our operations.

Current wording

•Our dependence on customers, suppliers, subcontractors and equipment manufacturers has in the past and may in the future expose us to the risk of loss in our operations.