QUANTA SERVICES, INC.

Previous wording

Our second quarter 2026 results reflect increased demand for our services, as consolidated revenues and operating income increased as compared to the second quarter of 2025, with increased revenues and operating income in both our Electric Infrastructure Solutions (Electric) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure) segments.

Current wording

Our third quarter 2026 results reflect increased demand for our services, as consolidated revenues and operating income increased as compared to the third quarter of 2025, with increased revenues and operating income in both our Electric Infrastructure Solutions (Electric) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure) segments.

Previous wording

With respect to our Underground and Infrastructure segment, we continue to believe the market for our industrial solutions and gas utility and pipeline integrity services remains solid given the recurring critical-path maintenance requirements and regulated spend dedicated to modernizing systems, reducing methane emissions, ensuring environmental compliance and improving safety and reliability. However, revenues associated with large pipeline projects have fluctuated in recent years, and we anticipate that revenues associated with these projects will continue to fluctuate. Our acquisition of Dynamic Systems (DSI), LLC (Dynamic Systems) during 2025 expanded our capabilities and solutions related to turnkey mechanical, plumbing and process infrastructure solutions. Additionally, acquisitions in 2025 enhanced our ability to provide heavy civil and site preparation construction services for the industrial, energy and technology and load center markets. We see strong demand for these services by data center, manufacturing, semiconductor and other large load facilities and believe there are also opportunities to provide these services to other core end markets.

Current wording

With respect to our Underground and Infrastructure segment, we continue to believe the market for our industrial solutions and gas utility and pipeline integrity services remains solid given the recurring critical-path maintenance requirements and regulated spend dedicated to modernizing systems, reducing methane emissions, ensuring environmental compliance and improving safety and reliability. However, revenues associated with large pipeline projects have fluctuated in recent years, and we anticipate that revenues associated with these projects will continue to fluctuate. Our acquisition of Dynamic Systems (DSI), LLC (Dynamic Systems) during 2025 expanded our capabilities and solutions related to turnkey mechanical, plumbing and process infrastructure solutions. Additionally, acquisitions in 2025 enhanced our ability to provide heavy civil and site preparation construction services for the industrial, energy and technology and load center markets. There has been significant demand for these services by data center, manufacturing, semiconductor and other large load facilities, and we believe there are also opportunities to provide these services to other core end markets.

Previous wording

During the six months ended June 30, 2026, increased revenues and operating income contributed to $1.49 billion of net cash provided by operating activities, which was a 176% increase compared to the six months ended June 30, 2025. This cash provided by operating activities, along with borrowings under our credit facility and commercial paper program, allowed us to execute our business plan, including the strategic acquisitions of certain businesses and investments in unconsolidated affiliates, for which we utilized $956.9 million of cash, and payments of $33.7 million in dividends associated with our common stock. Additionally, as of June 30, 2026, available commitments under our senior credit facility, combined with our cash and cash equivalents, totaled $2.77 billion.

Current wording

During the nine months ended September 30, 2026, increased revenues and operating income contributed to $2.94 billion of net cash provided by operating activities, which was a 167% increase compared to the nine months ended September 30, 2025. This cash provided by operating activities, along with borrowings under our credit facility and commercial paper program and issuance of senior notes described below, allowed us to execute our business plan, including the strategic acquisitions of certain businesses and investments in unconsolidated affiliates, for which we utilized $1.15 billion of cash, and payments of $50.9 million in dividends associated with our common stock. Additionally, as of September 30, 2026, available commitments under our senior credit facility, combined with our cash and cash equivalents, totaled $5.21 billion.

Previous wording

We expect the strong demand for our services will continue. Our remaining performance obligations and backlog were $33.55 billion and $53.44 billion as of June 30, 2026, representing increases of 41.2% and 21.5% relative to December 31, 2025. For a reconciliation of backlog to remaining performance obligations, the most comparable financial measure prepared in conformity with generally accepted accounting principles in the United States (GAAP), see Non-GAAP Financial Measures below.

Current wording

We expect the strong demand for our services will continue. Our remaining performance obligations and backlog were $41.75 billion and $63.73 billion as of September 30, 2026, representing increases of 75.7% and 44.9% relative to December 31, 2025. For a reconciliation of backlog to remaining performance obligations, the most comparable financial measure prepared in conformity with generally accepted accounting principles in the United States (GAAP), see Non-GAAP Financial Measures below.

Previous wording

Revenue mix and impact on margins. The mix of revenues based on the types of services we provide in a given period will impact margins, as certain industries and services provide higher-margin opportunities. Our larger or more complex projects typically include, among others, transmission projects with higher voltage capacities; pipeline projects with larger-diameter throughput capacities; large-scale power generation projects; complex data center projects; and projects with increased engineering, design or construction complexities, more difficult terrain or geographical requirements, or longer distance requirements. These projects typically yield opportunities for higher margins than our recurring services under MSAs described above, as we assume a greater degree of performance risk and there is greater utilization of our resources for longer construction timeframes. However, larger projects are subject to additional risk of regulatory delay and cyclicality. Project schedules also fluctuate, particularly in connection with larger, more complex or longer-term projects, which can affect the amount of work performed in a given period. Furthermore, smaller or less complex projects typically have a greater number of companies competing for them, and competitors at times may more aggressively pursue available work. A greater percentage of smaller scale or less complex work also could negatively impact margins due to the inefficiency of transitioning between a greater number of smaller projects versus continuous production on fewer larger projects. As a result, at times we may choose to maintain a portion of our workforce and equipment in an underutilized capacity to ensure we are strategically positioned to deliver on larger projects when they move forward.

Current wording

Revenue mix and impact on margins. The mix of revenues based on the types of services we provide in a given period will impact margins, as certain industries and services provide higher-margin opportunities. Our larger or more complex projects typically include, among others, transmission projects with higher voltage capacities; pipeline projects with larger-diameter throughput capacities; large-scale power generation projects; complex data center projects; and projects with increased engineering, design or construction complexities, more difficult terrain or geographical requirements, or longer distance requirements. These projects typically yield opportunities for higher margins than our recurring services under MSAs described above, as we assume a greater degree of performance risk and there is greater utilization of our resources for longer construction timeframes. However, larger projects are subject to additional risk of permitting and regulatory delay and cyclicality. Project schedules also fluctuate, particularly in connection with larger, more complex or longer-term projects, which can affect the amount of work performed in a given period. Furthermore, smaller or less complex projects typically have a greater number of companies competing for them, and competitors at times may more aggressively pursue available work. A greater percentage of smaller scale or less complex work also could negatively impact margins due to the inefficiency of transitioning between a greater number of smaller projects versus continuous production on fewer larger projects. As a result, at times we may choose to maintain a portion of our workforce and equipment in an underutilized capacity to ensure we are strategically positioned to deliver on larger projects when they move forward.

Previous wording

Project variability and performance. Margins for a single project may fluctuate period to period due to changes in the volume or type of work performed, the pricing structure under the project contract or job productivity. Additionally, our productivity and performance on a project can vary period to period based on a number of factors, including unexpected project difficulties or site conditions (including in connection with difficult geographic characteristics); project location, including locations with challenging operating conditions; whether the work is on an open or encumbered right of way; inclement weather or severe weather events; environmental restrictions or regulatory delays; protests, public activism, other political activity or legal challenges related to a project; and the performance of third parties. Moreover, we currently generate a significant portion of our revenues under fixed price contracts, and fixed price contracts are more common in connection with our larger and more complex projects that typically involve greater performance risk. Under these contracts, we assume risks related to project estimates and execution, and project revenues can vary, sometimes substantially, from our original projections due to a variety of factors, including the additional complexity, timing uncertainty or extended bidding, regulatory and permitting processes associated with these projects. These variations can result in a reduction in expected profit, the incurrence of losses on a project or the issuance of change orders and/or assertion of contract claims against customers. See Contract Estimates and Changes in Estimatesin Note 2 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Current wording

Project variability and performance. Margins for a single project may fluctuate period to period due to changes in the volume or type of work performed, the pricing structure under the project contract or job productivity. Additionally, our productivity and performance on a project can vary period to period based on a number of factors, including unexpected project difficulties or site conditions (including in connection with difficult geographic characteristics); project location, including locations with challenging operating conditions; whether the work is on an open or encumbered right of way; inclement weather or severe weather events; environmental restrictions; permitting and regulatory delays; protests, public activism, other political activity or legal challenges related to a project; and the performance of third parties. Moreover, we currently generate a significant portion of our revenues under fixed price contracts, and fixed price contracts are more common in connection with our larger and more complex projects that typically involve greater performance risk. Under these contracts, we assume risks related to project estimates and execution, and project revenues can vary, sometimes substantially, from our original projections due to a variety of factors, including the additional complexity, timing uncertainty or extended bidding, regulatory and permitting processes associated with these projects. These variations can result in a reduction in expected profit, the incurrence of losses on a project or the issuance of change orders and/or assertion of contract claims against customers. See Contract Estimates and Changes in Estimatesin Note 2 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Previous wording

Revenues. Revenues increased due to a $2.38 billion increase in revenues from our Electric segment and a $404.3 million increase in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.

Current wording

Revenues. Revenues increased due to a $3.63 billion increase in revenues from our Electric segment and a $755.7 million increase in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.

Previous wording

Cost of services. Costs of services primarily includes wages, benefits, subcontractor costs, materials, equipment, and other direct and indirect costs, including related depreciation. The increase in cost of services correlates to the increase in revenues.

Current wording

Cost of services. Cost of services primarily includes wages, benefits, subcontractor costs, materials, equipment, and other direct and indirect costs, including related depreciation. The increase in cost of services correlates to the increase in revenues.

Previous wording

Selling, general and administrative expenses. The increase was primarily attributable to an $71.8 million increase in compensation expense largely due to increase in headcount to support business growth and increased levels of variable compensation due to increased profitability, as well as $60.8 million related to recently acquired businesses. Also contributing to the increase was a $29.4 million increase in travel, professional fees and information technology expenses.

Current wording

Selling, general and administrative expenses. The increase was primarily attributable to a $103.8 million increase in compensation expense largely due to an increase in headcount to support business growth and increased levels of variable compensation due to increased profitability, as well as $79.8 million related to recently acquired businesses. Also contributing to the increase was a $23.0 million increase in travel, professional fees and information technology expenses.

Previous wording

Amortization of intangible assets. The increase was related to incremental amortization expense associated with acquisitions since June 30, 2025, including the acquisition of Dynamic Systems.

Current wording

Amortization of intangible assets. The increase was related to incremental amortization expense associated with recent acquisitions.

Previous wording

Operating income. Operating income was positively impacted by a $345.6 million increase in operating income for our Electric segment and a $65.1 million increase in operating income for our Underground and Infrastructure segment, partially offset by an $86.1 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.

Current wording

Operating income. Operating income was positively impacted by a $534.3 million increase in operating income for our Electric segment and an $85.7 million increase in operating income for our Underground and Infrastructure segment, partially offset by a $110.7 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.

Previous wording

Interest and other financing expenses. The majority of the increase resulted from higher levels of principal on fixed rate debt balances as compared to the three months ended June 30, 2025. This increase resulted primarily from the issuance of $1.50 billion of aggregate principal amount of senior notes in August 2025.

Current wording

Interest and other financing expenses. The majority of the increase resulted from higher levels of principal on fixed rate debt balances as compared to the three months ended September 30, 2025. This increase resulted primarily from the issuance of $1.50 billion of aggregate principal amount of senior notes in August 2025 and $2.00 billion of aggregate principal amount of senior notes in August 2026, partially offset by repayments of the term loan under our senior credit facility and certain outstanding borrowings under our commercial paper program.

Previous wording

Provision for income taxes. The effective income tax rates for the three months ended June 30, 2026 and 2025 were 25.5% and 26.7%. The lower effective tax rate for the three months ended June 30, 2026 was primarily due to changes in the mix of earnings across the jurisdictions in which we operate.

Current wording

Provision for income taxes. The effective income tax rates for the three months ended September 30, 2026 and 2025 were 25.2% and 25.9%. The lower effective tax rate for the three months ended September 30, 2026 was primarily due to changes in the mix of earnings across the jurisdictions in which we operate.

Previous wording

Comprehensive income attributable to common stock. See Statements of Comprehensive Income in Item 1. Financial Statementsof Part I of this Quarterly Report. Comprehensive income attributable to common stock increased by $190.6 million in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to a $308.5 million increase in net income, partially offset by a $106.5 million decrease in foreign currency translation adjustments. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. The decrease in foreign currency translation adjustments primarily resulted from the strengthening of the U.S. dollar against the Canadian dollar.

Current wording

Comprehensive income attributable to common stock. See Statements of Comprehensive Income in Item 1. Financial Statementsof Part I of this Quarterly Report. Comprehensive income attributable to common stock increased by $388.7 million in the three months ended September 30, 2026 as compared to the three months ended September 30, 2025 primarily due to a $364.1 million increase in net income and a $26.4 million increase in foreign currency translation adjustments. The predominant functional currencies for our operations outside the United States are the Canadian and Australian dollars. The increase in foreign currency translation adjustments primarily resulted from performance of the U.S. dollar relative to the Canadian dollar.

Previous wording

Revenues. Revenues increased due to a $3.90 billion increase in revenues from our Electric segment and a $521.4 million increase in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.

Current wording

Revenues. Revenues increased due to a $7.53 billion increase in revenues from our Electric segment and a $1.28 billion increase in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.

Previous wording

Selling, general and administrative expenses. The increase was primarily attributable to a $133.8 million increase in compensation expense largely due to increase in headcount to support business growth and increased levels of variable compensation due to increased profitability, as well as $112.8 million related to recently acquired businesses. Also contributing to the increase was a $50.5 million increase in travel, professional fees and information technology expenses.

Current wording

Selling, general and administrative expenses. The increase was primarily attributable to a $230.9 million increase in compensation expense largely due to an increase in headcount to support business growth and increased levels of variable compensation due to increased profitability, as well as $199.4 million related to recently acquired businesses. Also contributing to the increase was a $73.4 million increase in travel, professional fees and information technology expenses.

Previous wording

Amortization of intangible assets. The increase was related to incremental amortization expense associated with acquisitions since June 30, 2025, primarily the acquisitions of Dynamic Systems.

Current wording

Amortization of intangible assets. The increase was related to incremental amortization expense associated with recent acquisitions.

Previous wording

Operating income. Operating income was positively impacted by a $498.5 million increase in operating income for our Electric segment and a $93.8 million increase in operating income for our Underground and Infrastructure segment, partially offset by a $168.1 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.

Current wording

Operating income. Operating income was positively impacted by a $1.03 billion increase in operating income for our Electric segment and a $179.6 million increase in operating income for our Underground and Infrastructure segment, partially offset by a $278.8 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.

Previous wording

Interest and other financing expenses. The majority of the increase resulted from higher levels of principal on fixed rate debt balances as compared to the six months ended June 30, 2025. This increase resulted primarily from the issuance of $1.50 billion of aggregate principal amount of senior notes in August 2025.

Current wording

Interest and other financing expenses. The majority of the increase resulted from higher levels of principal on fixed rate debt balances as compared to the nine months ended September 30, 2025. This increase resulted primarily from the issuance of $2.00 billion of aggregate principal amount of senior notes in August 2026 and $1.50 billion of aggregate principal amount of senior notes in August 2025, partially offset by repayments of the term loan under our senior credit facility and certain outstanding borrowings under our commercial paper program.

Previous wording

Provision for income taxes. The effective income tax rates for the six months ended June 30, 2026 and 2025 were 20.9% and 24.6%. The lower effective tax rate for the six months ended June 30, 2026 was primarily due to a $35.9 million higher U.S. federal and state tax benefit from vesting of equity incentive awards.

Current wording

Provision for income taxes. The effective income tax rates for the nine months ended September 30, 2026 and 2025 were 23.1% and 25.2%. The lower effective tax rate for the nine months ended September 30, 2026 was primarily due to a $33.3 million increase in U.S. federal and state tax benefit from the vesting of non-cash compensation awards.

Previous wording

Comprehensive income attributable to common stock. See Statements of Comprehensive Income in Item 1. Financial Statementsof Part I of this Quarterly Report. Comprehensive income attributable to common stock increased by $126.3 million in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 primarily due to a $226.1 million increase in net income, partially offset by a $95.9 million decrease in foreign currency translation adjustments. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. The decrease in foreign currency translation adjustments primarily resulted from the strengthening of the U.S. dollar against the Canadian dollar.

Current wording

Comprehensive income attributable to common stock. See Statements of Comprehensive Income in Item 1. Financial Statementsof Part I of this Quarterly Report. Comprehensive income attributable to common stock increased by $579.3 million in the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily due to a $672.6 million increase in net income, partially offset by a $80.1 million decrease in foreign currency translation adjustments. The predominant functional currencies for our operations outside the United States are the Canadian and Australian dollars. The decrease in foreign currency translation adjustments primarily resulted from the performance of the U.S. dollar relative to the Canadian dollar.

Previous wording

Operating Income. The increase in operating income and operating margin for the three months ended June 30, 2026 was primarily due to the increased demand and improved execution across our electric and power generation services.

Current wording

Operating Income. The increase in operating income and operating margin for the three months ended September 30, 2026 was primarily due to the increased revenues and improved execution across our electric and power generation services.

Previous wording

Revenues. The increase in revenues for the three months ended June 30, 2026 was primarily due to increased demand for our services, as well as approximately $575 million in revenues attributable to acquired businesses.

Current wording

Revenues. The increase in revenues for the three months ended September 30, 2026 was primarily due to increased demand for our services, as well as approximately $335 million in revenues attributable to acquired businesses.

Previous wording

Operating Income. The increase in operating income and operating margin for the three months ended June 30, 2026 was primarily due to increased revenues from our civil and mechanical acquired businesses, which contributed to higher levels of fixed cost absorption.

Current wording

Operating Income. The increase in operating income and operating margin for the three months ended September 30, 2026 was primarily due to increased revenues from our recently acquired businesses that perform mechanical services, which contributed to higher levels of fixed cost absorption.

Previous wording

The increase in corporate and non-allocated costs during the three months ended June 30, 2026 was primarily due to a $43.8 million increase in intangible asset amortization expense associated with acquisitions since June 30, 2026, including Dynamic Systems. Also contributing to the increase was a $28.2 million increase in compensation expense, which was primarily attributable to increased non-cash stock compensation expense in support of business growth.

Current wording

The increase in corporate and non-allocated costs during the three months ended September 30, 2026 was primarily due to a $55.4 million increase in intangible asset amortization expense associated with acquisitions since September 30, 2025. Also contributing to the increase was a $36.6 million increase in compensation expense, which was primarily attributable to increased non-cash stock compensation expense in support of business growth and increased levels of variable compensation due to increased profitability.

Previous wording

Revenues. The increase in revenues for the six months ended June 30, 2026 was primarily due to increased demand for our services and approximately $1.04 billion in revenues attributable to acquired businesses.

Current wording

Revenues. The increase in revenues for the nine months ended September 30, 2026 was primarily due to increased demand for our services and approximately $2.25 billion in revenues attributable to acquired businesses.

Previous wording

Operating Income. The increase in operating income and operating margin for the six months ended June 30, 2026 was primarily due to the increased demand and improved execution across our electric and power generation services.

Current wording

Operating Income. The increase in operating income and operating margin for the nine months ended September 30, 2026 was primarily due to the increased revenues and improved execution across our electric and power generation services.

Previous wording

Operating Income. The increase in operating income and operating margin for the six months ended June 30, 2026 was primarily due to increased revenues from our civil and mechanical acquired businesses, which contributed to higher levels of fixed cost absorption.

Current wording

Operating Income. The increase in operating income and operating margin for the nine months ended September 30, 2026 was primarily due to increased revenues from our recently acquired businesses that perform mechanical services, which contributed to higher levels of fixed cost absorption.

Previous wording

The increase in corporate and non-allocated costs during the six months ended June 30, 2026 was primarily due to an $86.6 million increase in intangible asset amortization primarily related to acquisitions since June 30, 2026 and a $58.0 million increase in compensation expense, which was primarily attributable to increased non-cash stock compensation expense in support of business growth.

Current wording

The increase in corporate and non-allocated costs during the nine months ended September 30, 2026 was primarily due to a $142.0 million increase in intangible asset amortization primarily related to acquisitions since September 30, 2025 and a $94.6 million increase in compensation expense, which was primarily attributable to increased non-cash stock compensation expense in support of business growth and increased levels of variable compensation due to increased profitability. Additionally, in 2026 there was an increase of $37.7 million related to fair value of contingent consideration liabilities, acquisition and integration costs and information technology expenses.

Previous wording

As to certain of the items below, (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of our acquisition activity; (iii) equity in losses (earnings) of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to us; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; and (v) change in fair value of non-marketable equity securities varies from period to period based on various factors, including changes in the financial performance of the investee, the investee’s operating environment and general market conditions. Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable

Current wording

As to certain of the items below, (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level and complexity of our acquisition activity; (iii) equity in losses (earnings) of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to us; (iv) change in fair value of contingent consideration liabilities varies from period to period depending on the performance in post-acquisition periods of certain acquired businesses and the effect of present value accretion on fair value calculations; and (v) gain on sale and change in fair value of non-marketable equity securities, net varies from period to period based on various factors, including disposition activity, and changes in qualifying observable prices on investments. Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included below. The following table shows dollars in thousands:

Previous wording

(1) The amounts include $1.9 million and $4.2 million for the three months ended June 30, 2026 and 2025 and $4.1 million and $8.5 million for the six months ended June 30, 2026 and 2025 that, pursuant to acquisition purchase agreements, were or will be withheld from the sellers’ proceeds, and have or will be paid to certain employees upon satisfaction of post-closing service obligations.

Current wording

(1) The amounts include $1.9 million and $6.7 million for the three months ended September 30, 2026 and 2025 and $6.1 million and $15.2 million for the nine months ended September 30, 2026 and 2025 that, pursuant to acquisition purchase agreements, were or will be withheld from the sellers’ proceeds, and have or will be paid to certain employees upon satisfaction of post-closing service obligations.

Previous wording

As of June 30, 2026 and December 31, 2025, MSAs accounted for 33% and 37% of our estimated 12-month backlog and 41% and 44% of our total backlog. Generally, our customers are not contractually committed to specific volumes of services under our MSAs, and most of our contracts can be terminated on short notice even if we are not in default. We determine the estimated backlog for these MSAs using recurring historical trends, factoring in seasonal demand and projected customer needs based upon ongoing communications. In addition, many of our MSAs are subject to renewal, and these potential renewals are considered in determining estimated backlog. As a result, estimates for remaining performance obligations and backlog are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

Current wording

As of September 30, 2026 and December 31, 2025, MSAs accounted for 31% and 37% of our estimated 12-month backlog and 37% and 44% of our total backlog. Generally, our customers are not contractually committed to specific volumes of services under our MSAs, and most of our contracts can be terminated on short notice even if we are not in default. We determine the estimated backlog for these MSAs using recurring historical trends, factoring in seasonal demand and projected customer needs based upon ongoing communications. In addition, many of our MSAs are subject to renewal, and these potential renewals are considered in determining estimated backlog. As a result, estimates for remaining performance obligations and backlog are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, permitting and regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

Previous wording

The increases in both remaining performance obligations and backlog from December 31, 2025 to June 30, 2026 were partially due to the impact of acquisitions that occurred in the six months ended June 30, 2026, as well as additional awards and increased volume with existing customers.

Current wording

The increases in both remaining performance obligations and backlog from December 31, 2025 to September 30, 2026 were partially due to additional awards and increased volume with existing customers, and to a lesser extent, the impact of acquisitions that occurred in the nine months ended September 30, 2026.

Previous wording

During the six months ended June 30, 2026, there were no material changes outside the ordinary course of business in the specified contractual obligations or changes to our capital allocation priorities as set forth in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II of our 2025 Annual Report.

Current wording

During the nine months ended September 30, 2026, there were no material changes outside the ordinary course of business in the specified contractual obligations or changes to our capital allocation priorities as set forth in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II of our 2025 Annual Report.

Previous wording

During the six months ended June 30, 2026, we completed the acquisition of three businesses in which a portion of the consideration, net of cash acquired, consisted of $930.3 million in net cash paid on the respective acquisition dates, funded with a combination of cash and cash equivalents and borrowings from our existing debt financing arrangements. For additional information regarding our recent acquisitions, refer to Note 4 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Current wording

During the nine months ended September 30, 2026, we completed the acquisition of five businesses in which a portion of the consideration, net of cash acquired, consisted of $1.10 billion in net cash paid on the respective acquisition dates, funded with a combination of cash and cash equivalents, borrowings from our existing debt financing arrangements and proceeds from the issuance of senior notes. For additional information regarding our recent acquisitions, refer to Note 4 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Previous wording

(2) Further information with respect to our cash and cash equivalents is set forth below and in Note 13 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report. This amount includes $173.9 million in jurisdictions outside of the U.S., principally in Australia. There are currently no legal or economic restrictions that would materially impede our ability to repatriate such cash.

Current wording

(1) Further information with respect to our cash and cash equivalents is set forth below and in Note 13 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report. This amount includes $141.4 million in jurisdictions outside of the United States, principally Australia. There are currently no legal or economic restrictions that would materially impede our ability to repatriate such cash.

Previous wording

In July 2026, we increased our aggregate revolving commitments under the credit agreement for our senior credit facility from $2.80 billion to $2.98 billion and extended the maturity date for revolving loans under the credit agreement for our senior credit facility from July 31, 2030 to July 31, 2031. Additionally, we increased the maximum aggregate amount of our existing unsecured commercial paper program from $2.80 billion to $2.98 billion of notes outstanding at any time. Such increase will be effective August 8, 2026.

Current wording

In July 2026, we increased the aggregate revolving commitments under the credit agreement for our senior credit facility from $2.80 billion to $2.98 billion and extended the maturity date for revolving loans from July 31, 2030 to July 31, 2031. Additionally, effective August 8, 2026, we increased the maximum aggregate amount of our existing unsecured commercial paper program from $2.80 billion to $2.98 billion of notes outstanding at any time. In August 2026, we issued $2.00 billion aggregate principal amount of senior notes and received net proceeds of $1.98 billion, net of the original issue discount, underwriting discounts and deferred financing costs. We used a portion of the proceeds to repay certain outstanding borrowings and the remainder has been or will be utilized for general corporate purposes.

Previous wording

We consider our investment policies related to cash and cash equivalents to be conservative, as we maintain a diverse portfolio of what we believe to be high-quality cash and cash equivalent investments with short-term maturities. Additionally, subject to the conditions specified in the credit agreement for our senior credit facility, we have the option to increase the capacity of our senior 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. Further information with respect to our debt obligations is set forth in Note 7 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Current wording

We consider our investment policies related to cash and cash equivalents to be conservative, as we maintain a diverse portfolio of what we believe to be high-quality cash and cash equivalent investments with short-term maturities. Additionally, subject to the conditions specified in the credit agreement for our senior credit facility, we have the option to increase the capacity of our senior 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 financial covenants in the credit agreement as of the most recent fiscal quarter end for which financial statements were required to be delivered. Further information with respect to our debt obligations is set forth in Note 7 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Previous wording

Sources and Uses of Cash, Cash Equivalents and Restricted Cash During the Six Months Ended June 30, 2026 and 2025

Current wording

Sources and Uses of Cash, Cash Equivalents and Restricted Cash During the Nine Months Ended September 30, 2026 and 2025

Previous wording

Net cash provided by operating activities of $1.49 billion and $538.9 million in the six months ended June 30, 2026 and 2025 primarily reflected earnings adjusted for non-cash items and cash provided and used by the main components of working capital: “Accounts and notes receivable,” “Contract assets,”, “Inventories,” “Prepaid expenses and other current assets,” “Accounts payable and accrued expenses,” and “Contract liabilities.”

Current wording

Net cash provided by operating activities of $2.94 billion and $1.10 billion in the nine months ended September 30, 2026 and 2025 primarily reflected earnings adjusted for non-cash items and cash provided and used by the main components of working capital: “Accounts, notes and retainage receivable,” “Contract assets,” “Inventories,” “Prepaid expenses and other current assets,” “Accounts payable and accrued expenses,” and “Contract liabilities.”