COMFORT SYSTEMS USA INC
For the period ended Sep 30, 2025. Filed Oct 23, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 23, 2025
FIX$1,017.50+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001558370-25-009536
Item 2. —Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-23.
0001104659-25-101821
Item 2. —Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 89 previous paragraphs and 97 current paragraphs.
46 unchanged; 38 reworded; 12 added; 0 removed; 5 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Interest Expense—Interest expense increased $1.2 million, or 71.9%, to $3.0 million for the third quarter of 2025 as compared to the same period in 2024. Interest expense increased $1.1 million, or 22.2%, to $6.2 million, for the first nine months of 2025 compared to the same period in 2024. The increase in interest expense for the third quarter and the first nine months of 2025 was due to an increase in our average outstanding debt balance compared to the prior year. Additionally, we expensed $0.3 million related to unamortized debt issuance costs for lenders who exited the credit facility in the August 2025 amendment.
Current report
Net Cash Used in Financing Activities—Net cash used in financing activities was $171.2 million for the first nine months of 2025 compared to $124.1 million during the same period in 2024. The $47.1 million increase in net cash
Current report
The Facility contains financial covenants defining various financial measures and the levels of these measures with which we must comply. Covenant compliance is assessed as of each quarter end for the four fiscal quarters then ended. Credit Facility Adjusted EBITDA is defined under the Facility for financial covenant purposes as consolidated net income for the four fiscal quarters ending as of any given quarterly covenant compliance measurement date, plus the corresponding amounts for (a) interest expense; (b) provision for income taxes; (c) depreciation and amortization; (d) stock or equity compensation; and (e) other non-cash charges, in each case calculated on a pro forma basis for acquisitions or dispositions during such measurement period. The Facility’s principal financial covenants include:
Current report
Net Leverage Ratio—The Facility requires that the ratio of (a) our Consolidated Total Indebtedness (as defined in the Facility) minus unrestricted cash and cash equivalents up to $100,000,000, to (b) our Credit Facility Adjusted EBITDA not exceed 3.50 to 1.00 as of the end of each fiscal quarter; provided that, for the first four fiscal quarters ending after a material acquisition, such maximum Net Leverage Ratio steps up to 4.00 to 1.00.
Current report
Interest Coverage Ratio—The Facility requires that the ratio of (a) Credit Facility Adjusted EBITDA to (b) consolidated interest expense, defined as all interest paid or accrued on indebtedness during the period excluding amortization of debt incurrence expenses, original issue discount, and mark-to-market interest expense, be at least 3.00 to 1.00.
Current report
Other Restrictions—The Facility (a) permits unlimited acquisitions when our Net Leverage Ratio is less than or equal to 3.25 to 1.00; or 3.75 to 1.00 for the first four fiscal quarters ending after a material acquisition, (b) expands certain baskets for permitted indebtedness and liens, and (c) permits unlimited distributions, stock repurchases, and investments when the Net Leverage Ratio is less than or equal to 2.75 to 1.00.
Current report
While the Facility’s financial covenants do not specifically govern capacity under the Facility, if our debt level under the Facility at a quarter-end covenant compliance measurement date were to cause us to violate the Facility’s Net Leverage Ratio covenant, our borrowing capacity under the Facility and the favorable terms that we currently have could be negatively impacted.
Current report
Cautionary Statement Concerning Forward-Looking Statements
Current report
Certain statements and information in this Quarterly Report on Form 10-Q may constitute forward-looking statements regarding our future business expectations, which are subject to applicable securities laws and regulations. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements, which are generally not historic in nature. These forward-looking statements are based on the current expectations and beliefs of the Company concerning future developments and their effect on the Company. While the Company’s management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates, and the Company’s actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report on Form 10-Q. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report on Form 10-Q, those results or developments
Current report
may not be indicative of our results or developments in subsequent periods. All comments concerning the Company’s expectations for future revenue and operating results are based on the Company’s forecasts for its existing operations and do not include the potential impact of any future acquisitions. The Company’s forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company’s control) and assumptions that could cause actual future results to differ materially from the Company’s historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the use of incorrect estimates for bidding a fixed-price contract; undertaking contractual commitments that exceed the Company’s labor resources; failing to perform contractual obligations efficiently enough to maintain profitability; national or regional weakness in construction activity and economic conditions; economic downturns in the markets where the Company operates; shortages of labor and specialty building materials or material increases to the cost thereof; financial difficulties affecting projects, vendors, customers, or subcontractors; unexpected adjustments or cancellations in our backlog resulting in the Company’s backlog failing to translate into actual revenue or profits; inflation, supply chain disruptions, and capital market volatility; the loss of significant customers; intense competition in the Company’s industry; risks associated with acquisitions, including the ability to successfully integrate those companies; impairment charges for goodwill and intangible assets; reductions or reversals of previously recorded revenue or profits as a result of the Company’s cost-to-cost input method of accounting; difficulties in the financial and surety markets; delays and/or defaults in customer payments; difficult work environment; worldwide political and economic uncertainties, including international conflicts and epidemics or pandemics; retention of key management and employees; the Company’s decentralized management structure; our ability to effectively manage our backlog and the size and cost of our operations; failure of third party subcontractors and suppliers to complete work as anticipated; difficulty in obtaining, or increased costs associated with, bonding and insurance; our ability to remain in compliance with covenants under our credit agreement, service our indebtedness, or fund our other liquidity needs; our inability to properly utilize our workforce; increases and uncertainty in health insurance costs; regulatory and legal risks, including adverse litigation results, failure to comply with laws and regulations; changes in United States trade policy, and tax-related risks; the imposition of past and future liability from environmental, safety, and health regulations including the inherent …
Excerpt shortened here; the source contains the full paragraph.
Current report
For additional information regarding known material factors that could cause the Company’s results to differ from its projected results, please see its filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Current report
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether because of new information, future events, or otherwise, except as otherwise required by law.
Reworded paragraphs (38)
Previous wording
The following discussion and analysis should be read in conjunction with our historical Consolidated Financial Statements and related notes included elsewhere in this Form 10-Q and the Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2024 (the “Form 10-K”). This discussion contains “forward-looking statements” regarding our business and industry within the meaning of applicable securities laws and regulations. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause our actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include risks set forth in “Item 1A. Risk Factors” included in our Form 10-K. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The terms “Comfort Systems,” “we,” “us,” or the “Company,” refer to Comfort Systems USA, Inc. or Comfort Systems USA, Inc. and its consolidated subsidiaries, as appropriate in the context.
Current wording
The following discussion and analysis should be read in conjunction with our historical Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and the Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2024 (the “Form 10-K”). This discussion contains “forward-looking statements” regarding our business and industry within the meaning of applicable securities laws and regulations. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause our actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include risks set forth in “Item 1A. Risk Factors” included in our Form 10-K. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The terms “Comfort Systems,” “we,” “us,” “our,” or the “Company,” refer to Comfort Systems USA, Inc. or Comfort Systems USA, Inc. and its consolidated subsidiaries, as appropriate in the context.
Previous wording
In our mechanical business segment, customers hire us to ensure HVAC systems deliver specified or generally expected heating, cooling, conditioning and circulation of air in a facility. This entails installing core system equipment such as packaged heating and air conditioning units, or in the case of larger facilities, separate core components such as chillers, boilers, air handlers, and cooling towers. We also typically install connecting and distribution elements such as piping and ducting.
Current wording
In our mechanical business segment, customers hire us to ensure heating, ventilation and air conditioning (“HVAC”) systems deliver specified or generally expected heating, cooling, conditioning and circulation of air in a facility. This entails installing core system equipment such as packaged heating and air conditioning units, or in the case of larger facilities, separate core components such as chillers, boilers, air handlers, and cooling towers. We also typically install connecting and distribution elements such as piping and ducting.
Previous wording
Approximately 92.1% of our revenue is earned on a project basis for installation services in newly constructed facilities or for replacement of systems in existing facilities. When competing for project business, we usually estimate the costs we will incur on a project, and then propose a bid to the customer that includes a contract price and other performance and payment terms. Our bid price and terms are intended to cover our estimated costs on the project and provide a profit margin to us commensurate with the value of the installed system to the customer, the risk that project costs or duration will vary from estimate, the schedule on which we will be paid, the opportunities for other work that we might forego by committing capacity to this project, and other costs that we incur to support our operations but which are not specific to the project. Typically, customers will seek pricing from competitors for a given project. While the criteria on which customers select a provider vary widely and include factors such as quality, technical expertise, on-time performance, post-project support and service, and company history and financial strength, we believe that price for value is the most influential factor for most customers in choosing a mechanical or electrical installation and service provider.
Current wording
Approximately 92.4% of our revenue is earned on a project basis for installation services in newly constructed facilities or for replacement of systems in existing facilities. When competing for project business, we usually estimate the costs we will incur on a project, and then propose a bid to the customer that includes a contract price and other performance and payment terms. Our bid price and terms are intended to cover our estimated costs on the project and provide a profit margin to us commensurate with the value of the installed system to the customer, the risk that project costs or duration will vary from estimate, the schedule on which we will be paid, the opportunities for other work that we might forego by committing capacity to this project, and other costs that we incur to support our operations but which are not specific to the project. Typically, customers will seek pricing from competitors for a given project. While the criteria on which customers select a provider vary widely and include factors such as quality, technical expertise, on-time performance, post-project support and service, and company history and financial strength, we believe that price for value is the most influential factor for most customers in choosing a mechanical or electrical installation and service provider.
Previous wording
As of June 30, 2025, we had 9,106 projects in process. Our average project takes six to nine months to complete, with an average contract price of approximately $2.0 million. Our projects generally require working capital funding of equipment and labor costs. Customer payments on periodic billings generally do not recover these costs until late in the job. Our average project duration, together with typical retention terms as discussed above, generally allow us to complete the realization of revenue and earnings in cash within one year. We have what we consider to be a well-diversified distribution of revenue across end-use sectors that we believe reduces our exposure to negative developments in any given sector. Because of the integral nature of our services to most buildings, we have the legal right in almost all cases to attach liens to buildings or related funding sources when we have not been fully paid for installing systems, except with respect to some government buildings. The service work that we do, which is discussed further below, usually does not give rise to lien rights.
Current wording
As of September 30, 2025, we had 8,974 projects in process. Our average project takes six to nine months to complete, with an average contract price of approximately $2.4 million. Our projects generally require working capital funding of equipment and labor costs. Customer payments on periodic billings generally do not recover these costs until late in the job. Our average project duration, together with typical retention terms as discussed above, generally allow us to complete the realization of revenue and earnings in cash within one year. We have what we consider to be a well-diversified distribution of revenue across end-use sectors that we believe reduces our exposure to negative developments in any given sector. Because of the integral nature of our services to most buildings, we have the legal right in almost all cases to attach liens to buildings or related funding sources when we have not been fully paid for installing systems, except with respect to some government buildings. The service work that we do, which is discussed further below, usually does not give rise to lien rights.
Previous wording
We also perform larger projects. Taken together, projects with contract prices of $2 million or more totaled $16.72 billion of aggregate contract value as of June 30, 2025, or approximately 90% of a total contract value for all projects in progress, totaling $18.50 billion. Generally, projects closer in size to $2 million will be completed in one year or less. It is unusual for us to work on a project that exceeds two years in length.
Current wording
We also perform larger projects. Taken together, projects with contract prices of $2 million or more totaled $19.38 billion of aggregate contract value as of September 30, 2025, or approximately 92% of a total contract value for all projects in progress, totaling $21.17 billion. Generally, projects closer in size to $2 million will be completed in one year or less. It is unusual for us to work on a project that exceeds two years in length.
Previous wording
In addition to project work, approximately 7.9% of our revenue represents maintenance and repair service on already installed HVAC, electrical, and controls systems. This kind of work usually takes from a few hours to a few days to perform. Prices to the customer are based on the equipment and materials used in the service as well as technician labor time. We usually bill the customer for service work when it is complete, typically with payment terms of up to thirty days. We also provide maintenance and repair service under ongoing contracts. Under these contracts, we are paid regular monthly or quarterly amounts and provide specified service based on customer requirements. These agreements typically are for one or more years and frequently contain thirty- to sixty-day cancellation notice periods.
Current wording
In addition to project work, approximately 7.6% of our revenue represents maintenance and repair service on already installed HVAC, electrical, and controls systems. This kind of work usually takes from a few hours to a few days to perform. Prices to the customer are based on the equipment and materials used in the service as well as technician labor time. We usually bill the customer for service work when it is complete, typically with payment terms of up to thirty days. We also provide maintenance and repair service under ongoing contracts. Under these contracts, we are paid regular monthly or quarterly amounts and provide specified service based on customer requirements. These agreements typically are for one or more years and frequently contain 30- to 60-day cancellation notice periods.
Previous wording
In 2020, the advent of a global pandemic led to some delays in service and construction, including delayed project starts and air pockets or pauses during 2020 and 2021. We experienced increasing demand in 2022, 2023 and 2024, and we expect that the demand environment, especially for manufacturing and technology customers, will remain at high levels in 2025 and 2026. While the impacts from the supply chain shortages have improved, we continue to experience increased labor costs and delays in delivery of certain materials and equipment. We anticipate that constraints and delays in our supply chain will persist in the near term, and that pressure on cost and availability, especially for skilled labor, will continue over the next few quarters.
Current wording
Following the impacts of the global pandemic during 2020 and 2021, we experienced increasing demand in 2022, 2023 and 2024. We currently expect that the demand environment, especially for manufacturing and technology customers, will remain at high levels for the remainder of 2025 and for 2026. While the impacts from the supply chain shortages have improved, we continue to experience increased labor costs and delays in delivery of certain materials and equipment. We anticipate that constraints and delays in our supply chain will persist, as well as pressure on cost and availability, especially for skilled labor, will continue over the next several quarters.
Previous wording
We have a credit facility in place with terms we believe are favorable that does not expire until July 2027. As of June 30, 2025, we had $766.8 million of credit available to borrow under our credit facility. We have strong surety relationships to support our bonding needs, and we believe our relationships with the surety markets are strong and benefit from our operating history and financial position. We have generated positive free cash flow in each of the last twenty-six calendar years and will continue our emphasis in this area. We believe that the relative size and strength of our Balance Sheet and surety relationships, as compared to most companies in our industry, represent competitive advantages for us.
Current wording
We have a credit facility in place with terms we believe are favorable that does not expire until October 2030. As of September 30, 2025, we had $916.8 million of credit available to borrow under our credit facility. We have strong surety relationships to support our bonding needs, and we believe our relationships with the surety markets are strong and benefit from our operating history and financial position. We have generated positive free cash flow in each of the last 26 calendar years and will continue our emphasis in this area. We believe that the relative size and strength of our Balance Sheet and surety relationships, as compared to most companies in our industry, represent competitive advantages for us.
Previous wording
Management believes that there have been no significant changes during the three months ended June 30, 2025, to the items that we disclosed as our "Critical Accounting Estimates" in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. A summary of significant accounting policies and a summary of recent accounting pronouncements applicable to our Consolidated Financial Statements are included in Note 2 “Summary of Significant Accounting Policies and Estimates.”
Current wording
Management believes that there have been no significant changes during the three months ended September 30, 2025, to the items that we disclosed as our "Critical Accounting Estimates" in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K for the fiscal year ended December 31, 2024. A summary of significant accounting policies and a summary of recent accounting pronouncements applicable to our Consolidated Financial Statements are included in Note 2 “Summary of Significant Accounting Policies and Estimates.”
Previous wording
Plumbing & Mechanical LLC (“Right Way”), which reports as a separate operating location. We had 48 operating locations as of June 30, 2025. Acquisitions are included in our results of operations from the respective acquisition date. The same-store comparison from 2025 to 2024, as described below, excludes Right Way, which was acquired May 1, 2025, Century, which was acquired on January 1, 2025, one month of results for Summit Industrial Construction, LLC (“Summit”), which was acquired on February 1, 2024, and one month of results for J & S Mechanical Contractors, Inc. (“J&S”), which was acquired on February 1, 2024. An operating location is included in the same-store comparison on the first day it has comparable prior year operating data, except for immaterial acquisitions that are often absorbed and integrated with existing operations.
Current wording
We had 47 operating locations as of December 31, 2024. In the first quarter of 2025, we completed the acquisition of Century Contractors, LLC (“Century”), which reports as a separate operating location. In the second quarter of 2025, we combined two operating locations into one. Additionally, we completed the acquisition of Right Way Plumbing & Mechanical LLC (“Right Way”), which reports as a separate operating location. We had 48 operating locations as of September 30, 2025. Acquisitions are included in our results of operations from the respective acquisition date. The same-store comparison from 2025 to 2024, as described below, excludes Right Way, which was acquired May 1, 2025, Century, which was acquired on January 1, 2025, one month of results for Summit Industrial Construction, LLC (“Summit”), which was acquired on February 1, 2024, and one month of results for J & S Mechanical Contractors, Inc. (“J&S”), which was acquired on February 1, 2024. An operating location is included in the same-store comparison on the first day it has comparable prior year operating data, except for immaterial acquisitions that are often absorbed and integrated with existing operations.
Previous wording
Revenue—Revenue for the second quarter of 2025 increased $363.0 million, or 20.1%, to $2.17 billion compared to the same period in 2024. The increase included an 18.6% increase in revenue related to same-store activity and a 1.5% increase related to the Right Way and Century acquisitions. The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog. The increase in demand has been especially strong in the technology sector, particularly for data centers.
Current wording
Revenue—Revenue for the third quarter of 2025 increased $638.6 million, or 35.2%, to $2.45 billion compared to the same period in 2024. The increase included a 33.3% increase in revenue related to same-store activity and a 1.9% increase related to the Right Way and Century acquisitions. The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog. The increase in demand has been especially strong in the technology sector, particularly for data centers.
Previous wording
Revenue for our mechanical segment increased $187.0 million, or 12.9%, to $1.64 billion for the second quarter of 2025 compared to the same period in 2024. Of this increase, $27.2 million resulted from the acquisitions of Right Way and Century, and $159.8 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at one of our North Carolina operations ($50.2 million), one of our Virginia operations ($45.3 million) and one of our Texas operations ($29.2 million).
Current wording
Revenue for our mechanical segment increased $371.8 million, or 25.8%, to $1.81 billion for the third quarter of 2025 compared to the same period in 2024. Of this increase, $35.2 million resulted from the acquisitions of Right Way and Century, and $336.6 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at one of our North Carolina operations ($75.7 million), our Texas modular operation ($63.3 million) and one of our Texas operations ($62.2 million).
Previous wording
Revenue for our electrical segment increased $176.0 million, or 49.1%, to $534.6 million for the second quarter of 2025 compared to the same period in 2024. The increase primarily resulted from an increase in activity in the technology sector at our Texas electrical operation ($155.1 million).
Current wording
Revenue for our electrical segment increased $266.8 million, or 71.4%, to $640.5 million for the third quarter of 2025 compared to the same period in 2024. The increase primarily resulted from an increase in activity in the technology sector at our Texas electrical operation ($200.3 million).
Previous wording
Revenue for the first six months of 2025 increased $657.3 million, or 19.6%, to $4.00 billion compared to the same period in 2024. The increase included a 17.1% increase in revenue related to same-store activity and a 2.5% increase related to the acquisitions of Right Way, Century, Summit and J&S. The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog. The increase in demand has been especially strong in the technology sector, particularly for data centers.
Current wording
Revenue for the first nine months of 2025 increased $1.30 billion, or 25.1%, to $6.46 billion compared to the same period in 2024. The increase included a 22.8% increase in revenue related to same-store activity and a 2.3% increase related to the acquisitions of Right Way, Century, Summit and J&S. The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog. The increase in demand has been especially strong in the technology sector, particularly for data centers.
Previous wording
Revenue for our mechanical segment increased $404.2 million, or 15.3%, to $3.04 billion for the first six months of 2025 compared to the same period in 2024. Of this increase, $83.8 million resulted from the acquisitions of Right Way, Century, Summit and J&S, and $320.4 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at one of our North Carolina operations ($109.1 million), one of our Virginia operations ($89.9 million) and one of our Texas operations ($62.7 million).
Current wording
Revenue for our mechanical segment increased $776.0 million, or 19.0%, to $4.85 billion for the first nine months of 2025 compared to the same period in 2024. Of this increase, $119.0 million resulted from the acquisitions of Right Way, Century, Summit and J&S, and $657.0 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at one of our North Carolina operations ($184.8 million), our Texas modular operation ($126.1 million) and one of our Virginia operations ($113.3 million).
Previous wording
Revenue for our electrical segment increased $253.1 million, or 35.6%, to $963.7 million for the first six months of 2025 compared to the same period in 2024. The increase primarily resulted from an increase in activity in the technology sector at our Texas electrical operation ($232.2 million). The revenue increase was partially offset by a decrease in activity in the manufacturing sector at our North Carolina electrical operation ($38.2 million).
Current wording
Revenue for our electrical segment increased $519.9 million, or 47.9%, to $1.60 billion for the first nine months of 2025 compared to the same period in 2024. The increase primarily resulted from an increase in activity in the technology sector at our Texas electrical operation ($432.5 million).
Previous wording
Backlog as of June 30, 2025 was $8.12 billion, a 17.9% increase from March 31, 2025 backlog of $6.89 billion, and a 40.7% increase from June 30, 2024 backlog of $5.77 billion. The sequential backlog increase included the acquisition of Right Way ($137.6 million), as well as a same-store increase of $1.10 billion, or 15.9%. Same-store sequential backlog growth was primarily a result of increased project bookings in the technology sector at our Texas electrical operation ($533.6 million) and one of our North Carolina operations ($412.1 million). The year-over-year backlog increase included the acquisitions of Right Way ($137.6 million) and Century ($54.2 million), as well as a same-store increase of $2.16 billion, or 37.4%. Same-store year-over-year backlog growth was primarily attributable to increased project bookings in the technology sector at one of our North Carolina operations ($867.8 million), our Texas electrical operation ($686.1 million) and one of our Texas operations ($590.5 million). The year-over-year backlog increase was partially offset by the completion of project work in the office buildings sector at one of our Virginia operations ($95.1 million).
Current wording
Backlog as of September 30, 2025 was $9.38 billion, a 15.4% increase from June 30, 2025 backlog of $8.12 billion, and a 65.1% increase from September 30, 2024 backlog of $5.68 billion. The sequential backlog increase was primarily a result of increased project bookings in the technology sector at one of our Indiana operations ($546.3
Previous wording
Gross Profit—Gross profit increased $146.3 million, or 40.2%, to $509.9 million for the second quarter of 2025 as compared to the same period in 2024. The increase included a $3.6 million, or 1.0%, increase related to the Right Way and Century acquisitions, as well as a 39.2% increase in same-store activity. The same-store increase in gross profit was driven by both higher revenues in the current year as well as improved execution in our operations, including improvements in project execution at four of our Texas operations ($86.1 million). Additionally, we had increased volumes at our Texas electrical operation ($36.1 million) and one of our Virginia operations ($13.6 million). As a percentage of revenue, gross profit for the second quarter increased from 20.1% in 2024 to 23.5% in 2025, primarily due to the factors discussed above and improvements in our mechanical segment gross profit margin.
Current wording
Gross Profit—Gross profit increased $226.2 million, or 59.2%, to $607.9 million for the third quarter of 2025 as compared to the same period in 2024. The increase included a $4.6 million, or 1.2%, increase related to the Right Way and Century acquisitions, as well as a 58.0% increase in same-store activity. The same-store increase in gross profit was driven by both higher revenues in the current year as well as improved execution in our operations, including increased volumes at our Texas electrical operation ($47.0 million) and one of our Texas operations ($34.3 million). Additionally, we achieved improvements in project execution at one of our North Carolina operations ($37.4 million) and at another one of our Texas operations ($23.8 million). Our Texas modular operation achieved both higher volumes and improvements in project execution ($32.5 million). In the third quarter of 2025, we had favorable developments on certain large jobs including recognition of $15.5 million of previously unrecognized revenue as a customer emerged from bankruptcy. As a percentage of revenue, gross profit for the third quarter increased from 21.1% in 2024 to 24.8% in 2025, primarily due to the factors discussed above and improvements in our mechanical segment gross profit margin.
Previous wording
Gross profit increased $252.4 million, or 38.2%, to $913.3 million for the first six months of 2025 as compared to the same period in 2024. The increase included a 2.2% increase related to the Right Way, Century, Summit and J&S acquisitions, as well as a 36.0% increase in same-store activity. The same-store increase in gross profit was driven by both higher revenues in the current year as well as improved execution in our operations, including improvements in project execution at two of our Texas operations ($85.6 million). Additionally, we had increased volumes at our Texas electrical operation ($50.0 million) and one of our Virginia operations ($21.9 million). As a percentage of revenue, gross profit for the six-month period increased from 19.7% in 2024 to 22.8% in 2025, primarily due to the factors discussed above and improvements in our mechanical segment gross profit margin.
Current wording
Gross profit increased $478.5 million, or 45.9%, to $1.52 billion for the first nine months of 2025 as compared to the same period in 2024. The increase included a 1.8% increase related to the Right Way, Century, Summit and J&S acquisitions, as well as a 44.1% increase in same-store activity. The same-store increase in gross profit was driven by both higher revenues in the current year as well as improved execution in our operations, including increased volumes at our Texas electrical operation ($96.9 million). Additionally, we achieved improvements in project execution at our Texas modular operation ($85.3 million), one of our Texas operations ($56.6 million) and one of our North Carolina operations ($53.4 million). Another one of our Texas operations achieved both higher volumes and improvements in project execution ($50.5 million). In the third quarter of 2025, we had favorable developments on certain large jobs including recognition of $15.5 million of previously unrecognized revenue as a customer emerged from bankruptcy. As a percentage of revenue, gross profit for the nine-month period increased from 20.2% in 2024 to 23.6% in 2025, primarily due to the factors discussed above and improvements in our mechanical segment gross profit margin.
Previous wording
revenue and increased compensation costs ($21.1 million), largely attributable to increased headcount and increased cost of labor. Amortization expense increased $0.7 million during the period, primarily as a result of the Right Way and Century acquisitions. As a percentage of revenue, SG&A for the second quarter decreased from 9.9% in 2024 to 9.7% in 2025 due to leverage resulting from the increase in revenue.
Current wording
Selling, General and Administrative Expenses (“SG&A”)—SG&A increased $49.4 million, or 27.4%, to $229.6 million for the third quarter of 2025 as compared to 2024. On a same-store basis, excluding amortization expense, SG&A increased $44.8 million, or 27.0%. The same-store increase was primarily due to higher same-store revenue and increased compensation costs ($36.5 million), largely attributable to increased headcount and increased cost of labor. Amortization expense increased $0.7 million during the period, primarily as a result of the Right Way and Century acquisitions. As a percentage of revenue, SG&A for the third quarter decreased from 9.9% in 2024 to 9.4% in 2025 due to leverage resulting from the increase in revenue.
Previous wording
SG&A increased $63.1 million, or 18.4%, to $405.3 million for the first six months of 2025 as compared to 2024. On a same-store basis, excluding amortization expense, SG&A increased $54.8 million, or 17.4%. The same-store increase is primarily due to higher same-store revenue and increased compensation costs ($41.8 million), largely attributable to increased headcount and increased cost of labor. Amortization expense increased $2.6 million during the period, primarily as a result of the Summit, J&S, Right Way and Century acquisitions. As a percentage of revenue, SG&A for the six-month period decreased from 10.2% in 2024 to 10.1% in 2025 due to leverage resulting from the increase in revenue.
Current wording
SG&A increased $112.5 million, or 21.5%, to $634.9 million for the first nine months of 2025 as compared to 2024. On a same-store basis, excluding amortization expense, SG&A increased $99.7 million, or 20.7%. The same-store increase was primarily due to higher same-store revenue and increased compensation costs ($78.3 million), largely attributable to increased headcount and increased cost of labor. Amortization expense increased $3.4 million during the period, primarily as a result of the Summit, J&S, Right Way and Century acquisitions. As a percentage of revenue, SG&A for the nine-month period decreased from 10.1% in 2024 to 9.8% in 2025 due to leverage resulting from the increase in revenue.
Previous wording
Interest Income—Interest income increased $1.6 million, or 123.0%, to $2.8 million for the second quarter of 2025 as compared to the same period in 2024. Interest income increased $4.2 million, or 147.2%, to $7.1 million, for the first six months of 2025 compared to the same period in 2024. The increase in interest income for the second quarter and the first six months of 2025 is due to an increase in our average cash balance compared to the prior year.
Current wording
Interest Income—Interest income increased $2.6 million, or 66.8%, to $6.4 million for the third quarter of 2025 as compared to the same period in 2024. Interest income increased $6.8 million, or 101.2%, to $13.5 million, for the first nine months of 2025 compared to the same period in 2024. The increase in interest income for the third quarter and the first nine months of 2025 was primarily due to an increase in our average cash balance compared to the prior year.
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Changes in the Fair Value of Contingent Earn-out Obligations—The contingent earn-out obligations are measured at fair value each reporting period, and changes in estimates of fair value are recognized in earnings. Expense from changes in the fair value of contingent earn-out obligations for the second quarter of 2025 decreased $10.6 million, or 72.3%, as compared to the same period in 2024. Expense from changes in the fair value of contingent earn-out obligations for the first six months of 2025 decreased $19.3 million, or 71.2%, as compared to the same period in 2024. The decrease in earn-out expense for the second quarter and the first six months of 2025 was primarily caused by lower expenses at J&S, as a result of them achieving their maximum cumulative earn-out target in the prior year. Additionally, we had lower expenses at Summit, driven by larger changes in their forecasted results in the prior year.
Current wording
Changes in the Fair Value of Contingent Earn-out Obligations—The contingent earn-out obligations are measured at fair value each reporting period, and changes in estimates of fair value are recognized in earnings. Expense from changes in the fair value of contingent earn-out obligations for the third quarter of 2025 decreased $5.2 million, or 29.9%, as compared to the same period in 2024. Expense from changes in the fair value of contingent earn-out obligations for the first nine months of 2025 decreased $24.5 million, or 55.1%, as compared to the same period in 2024. The decrease in earn-out expense for the third quarter and the first nine months of 2025 was primarily caused by lower expenses at J&S, as a result of them achieving their maximum cumulative earn-out target in the prior year. Additionally, we had lower expenses at Summit, driven by larger changes in their forecasted results in the prior year.
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Provision for Income Taxes—Our provision for income taxes for the six months ended June 30, 2025 was $104.4 million with an effective tax rate of 20.7% as compared to a provision for income taxes of $62.4 million with an effective tax rate of 21.3% for the same period in 2024. The effective tax rate for 2025 was slightly lower than the 21% federal statutory rate primarily due to an $11.8 million credit for increasing research activities (“R&D tax credit”) (2.3%) and recognizing $8.9 million of net interest income on our 2022 federal overpayment (1.8%), partially offset by $15.5 million of net state income taxes (3.1%) and $2.3 million of nontaxable or nondeductible items (0.5%). The effective tax rate for 2024 was slightly higher than the 21% federal statutory rate primarily due to $10.5 million of net state income taxes (3.6%) and $2.1 million of nontaxable or nondeductible items (0.7%) partially offset by an $11.4 million R&D tax credit (3.9%).
Current wording
Provision for Income Taxes—Our provision for income taxes for the nine months ended September 30, 2025 was $183.2 million with an effective tax rate of 20.9% as compared to a provision for income taxes of $104.0 million with an effective tax rate of 21.6% for the same period in 2024. The effective tax rate for 2025 was slightly lower than the 21% federal statutory rate primarily due to a $24.2 million credit for increasing research activities (“R&D tax credit”) (2.8%) and recognizing $8.9 million of net interest income on our 2022 federal overpayment (1.0%), partially offset by $25.8 million of net state income taxes (3.0%) and $5.9 million of nontaxable or nondeductible items (0.7%). The effective tax rate for 2024 was slightly higher than the 21% federal statutory rate primarily due to $17.5 million of net state income taxes (3.6%) and $3.0 million of nontaxable or nondeductible items (0.6%), partially offset by a $17.4 million R&D tax credit (3.6%).
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We experienced strong ongoing demand in the first six months of 2025, although we continue to experience increased labor costs and impacts from supply chain shortages, including delays in delivery of certain materials and equipment. We are recognizing these challenges in our job planning and pricing, and we are ordering materials on an earlier timeline and seeking to collaborate with customers to share supply risks and to mitigate the effects of these
Current wording
We experienced strong ongoing demand in the first nine months of 2025, although we continue to experience increased labor costs and impacts from supply chain shortages, including delays in delivery of certain materials and equipment. We are recognizing these challenges in our job planning and pricing, and we are ordering materials on an earlier timeline and seeking to collaborate with customers to share supply risks and to mitigate the effects of these challenges. We have been generally successful in maintaining productivity and in procuring needed materials despite ongoing challenges.
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We have a good pipeline of opportunities and potential backlog. Considering our substantial advance bookings, we currently anticipate solid earnings for the remainder of 2025 and believe we are well positioned for continued success in 2026. Although we are preparing for a wide range of challenges and economic circumstances, including a potential recession, we currently expect that supportive conditions for our industry, especially for our manufacturing and technology customers, are likely to continue in 2025 and 2026.
Current wording
We have a good pipeline of opportunities and potential backlog. Considering our substantial advance bookings, we anticipate continued solid earnings for the remainder of 2025 and we believe we are well positioned for continued success in 2026. Although we are preparing for a wide range of challenges and economic circumstances, including a potential recession, we currently expect that supportive conditions for our industry, especially for our manufacturing and technology customers, are likely to continue for the remainder of 2025 and 2026.
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Cash Provided by Operating Activities—Cash flow from operations is primarily influenced by demand for our services and operating margins but can also be influenced by working capital needs associated with the various types of services that we provide. In particular, working capital needs may increase when we commence large volumes of work under circumstances where project costs, primarily associated with labor, equipment and subcontractors, are required to be paid before the receivables resulting from the work performed are billed and collected. Working capital needs are generally higher during the late winter and spring months as we prepare and plan for the increased project demand when favorable weather conditions exist in the summer and fall months. Conversely, working capital assets are typically converted to cash during the late summer and fall months as project completion is underway. These seasonal trends are sometimes offset by changes in the timing of major projects, which can be impacted by the weather, project delays or accelerations and other economic factors that may affect customer spending.
Current wording
Net Cash Provided by Operating Activities—Cash flow from operations is primarily influenced by demand for our services and operating margins but can also be influenced by working capital needs associated with the various types of services that we provide. In particular, working capital needs may increase when we commence large volumes of work under circumstances where project costs, primarily associated with labor, equipment and subcontractors, are required to be paid before the receivables resulting from the work performed are billed and collected. Working capital needs are generally higher during the late winter and spring months as we prepare and plan for the increased project demand when favorable weather conditions exist in the summer and fall months. Conversely, working capital assets are typically converted to cash during the late summer and fall months as project completion is underway. These seasonal trends are sometimes offset by changes in the timing of major projects, which can be impacted by the weather, project delays or accelerations and other economic factors that may affect customer spending.
Previous wording
Cash provided by operating activities was $164.5 million during the first six months of 2025 compared to $336.4 million during the same period in 2024. The $171.9 million decrease in cash provided was primarily due to a $598.1 million decrease in accounts payable and other current liabilities, as well as a $118.1 million increase in costs and estimated earnings in excess of billings and unbilled accounts receivable, driven by the size and timing of payments, including fewer net advance payments received in the current year as compared to the prior year. We made an $80.0 million federal tax payment in the first quarter of 2025 that otherwise would have been paid in the second half of 2024, as a result of tax relief from the Internal Revenue Service due to Hurricane Beryl. These decreases in cash were partially offset by a $344.0 million benefit from changes in billings in excess of costs and estimated earnings and deferred revenue driven by timing of customer billings and payments and an increase in earnings compared to the prior year. In 2023, we filed our 2022 federal tax return requesting a refund of our $107.1 million overpayment, which was received in
Current wording
Net cash provided by operating activities was $717.8 million during the first nine months of 2025 compared to $638.6 million during the same period in 2024. The $79.2 million increase in net cash provided by operating activities was primarily driven by higher earnings before non-cash expenses such as amortization of intangible assets in the current year and a $484.3 million benefit from changes in billings in excess of costs and estimated earnings and deferred revenue driven by timing of customer billings and payments. These increases in cash were partially offset by a $518.5 million decrease in accounts payable and other current liabilities, as well as a $115.7 million increase in receivables, net. We made an $80.0 million federal tax payment in the first quarter of 2025 that otherwise would have been paid in the second half of 2024, as a result of tax relief from the Internal Revenue Service due to Hurricane Beryl. In 2023, we filed our 2022 federal tax return requesting a refund of our $107.1 million overpayment, which was received in April 2025 and positively impacted our second quarter cashflows. Along with the refund, we received $11.3 million (or $8.9 million, net of tax) of interest income that reduced our provision for income taxes in the first quarter of 2025.
Previous wording
Cash Used in Investing Activities—During the first six months of 2025, cash used in investing activities was $183.0 million compared to $282.4 million during the same period in 2024. The $99.4 million decrease in cash used primarily related to a decrease in cash paid (net of cash acquired) for acquisitions in the current year compared to the same period in 2024.
Current wording
Net Cash Used in Investing Activities—During the first nine months of 2025, net cash used in investing activities was $236.0 million compared to $304.0 million during the same period in 2024. The $68.0 million decrease in net cash used in investing activities primarily related to a decrease in cash paid (net of cash acquired) for acquisitions in the current year compared to the same period in 2024.
Previous wording
Cash Used in Financing Activities—Cash used in financing activities was $199.8 million for the first six months of 2025 compared to $59.7 million during the same period in 2024. The $140.1 million increase in cash used was primarily due to an increase in share repurchases of $100.2 million in the current year compared to the same period in 2024.
Current wording
used in financing activities was primarily due to an increase in share repurchases of $82.4 million and an increase in payments for contingent consideration related to acquisitions of $27.7 million in the current year compared to the same period in 2024. These increases were partially offset by higher net borrowings of debt in the current year compared to the same period in 2024.
Previous wording
Free Cash Flow—We define free cash flow as cash provided by operating activities, less customary capital expenditures, plus the proceeds from asset sales. We believe free cash flow, by encompassing both profit margins and the use of working capital over our approximately one year working capital cycle, is an effective measure of operating effectiveness and efficiency. We have included free cash flow information here for this reason, and because we are often asked about it by third parties evaluating us. However, free cash flow is not considered under generally accepted accounting principles to be a primary measure of an entity’s financial results, and accordingly free cash flow should not be considered an alternative to operating income, net income, or amounts shown in our consolidated statements of cash flows as determined under generally accepted accounting principles. Free cash flow may be defined differently by other companies.
Current wording
Free Cash Flow—We define free cash flow as net cash provided by operating activities, less customary capital expenditures, plus the proceeds from asset sales. We believe free cash flow, by encompassing both profit margins and the use of working capital over our approximately one year working capital cycle, is an effective measure of operating effectiveness and efficiency. We have included free cash flow information here for this reason, and because we are often asked about it by third parties evaluating us. However, free cash flow is not considered under generally accepted accounting principles to be a primary measure of an entity’s financial results, and accordingly free cash flow should not be considered an alternative to operating income, net income, or amounts shown in our consolidated statements of cash flows as determined under generally accepted accounting principles. Free cash flow may be defined differently by other companies.
Previous wording
On March 29, 2007, our Board of Directors (the “Board”) approved a stock repurchase program to acquire up to 1.0 million shares of our outstanding common stock. Subsequently, the Board has from time to time increased the number of shares that may be acquired under the program and approved extensions of the program. On May 16, 2025, the Board approved an extension to the program by increasing the shares authorized for repurchase by 0.4 million shares. Since the inception of the repurchase program, the Board has approved 11.8 million shares to be repurchased. As of June 30, 2025, we have repurchased a cumulative total of 10.8 million shares at an average price of $40.89 per share under the repurchase program.
Current wording
On March 29, 2007, our Board of Directors (the “Board”) approved a stock repurchase program to acquire up to 1.0 million shares of our outstanding common stock. Subsequently, the Board has from time to time increased the number of shares that may be acquired under the program and approved extensions of the program. On May 16, 2025, the Board approved an extension to the program by increasing the shares authorized for repurchase by 0.4 million shares. Since the inception of the repurchase program, the Board has approved 11.8 million shares to be repurchased. As of September 30, 2025, we have repurchased a cumulative total of 10.8 million shares at an average price of $42.04 per share under the repurchase program.
Previous wording
The share repurchases will be made from time to time at our discretion in the open market or privately negotiated transactions, including pursuant to Rule 10b5-1 share repurchase plans, as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. The Board may modify, suspend, extend or terminate the program at any time. During the six months ended June 30, 2025, we repurchased 0.3 million shares for approximately $112.2 million, inclusive of the applicable excise tax, at an average price of $343.79 per share.
Current wording
The share repurchases will be made from time to time at our discretion in the open market or privately negotiated transactions, including pursuant to Rule 10b5-1 share repurchase plans, as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. The Board may modify, suspend, extend or terminate the program at any time. During the nine months ended September 30, 2025, we repurchased 0.3 million shares for approximately $125.4 million, inclusive of the applicable excise tax, at an average price of $363.15 per share.
Previous wording
We have an $850.0 million senior credit facility (the “Facility”) provided by a syndicate of banks, which is composed of a revolving credit line guaranteed by certain of our subsidiaries. The Facility also provides for an accordion or increase option not to exceed the greater of (a) $250 million and (b) 1.0x Credit Facility Adjusted EBITDA (as defined below), as well as a sublimit of up to $175.0 million issuable in the form of letters of credit. The Facility expires in July 2027 and is secured by a first lien on substantially all of our personal property except for assets related to projects subject to surety bonds and the equity of, and assets held by, certain unrestricted subsidiaries and our wholly owned captive insurance company, and a second lien on our assets related to projects subject to surety bonds. As of June 30, 2025, we had no outstanding borrowings on the revolving credit facility, $83.2 million in letters of credit outstanding and $766.8 million of credit available.
Current wording
On August 27, 2025, we amended our senior credit facility (as amended, the “Facility”) arranged by Wells Fargo Bank, National Association, as administrative agent, and provided by a syndicate of banks, which increases our borrowing capacity from $850.0 million to $1.10 billion. The Facility is composed of a revolving credit line guaranteed by certain of our subsidiaries, in the amount of $1.10 billion. The Facility also provides for an accordion or increase option not to exceed the greater of (a) $500.0 million and (b) 1.0x Credit Facility Adjusted EBITDA (as defined below), in the form of additional revolving commitments or incremental term loans. The line of credit includes a sublimit for up to $200.0 million of letters of credit and a sublimit for up to $75.0 million of swingline loans. The Facility expires on October 1, 2030 and is secured by a first lien on substantially all of our personal property except for assets related to projects subject to surety bonds and the equity of and assets held by certain unrestricted subsidiaries and our wholly owned captive insurance company, and a second lien on our assets related to projects subject to surety bonds. As a result of the amendment, $0.3 million of unamortized costs associated with lenders who exited the Facility were written off to interest expense in the third quarter of 2025. The remaining $1.0 million of unamortized costs from the previous facility will be deferred and amortized over the term of the new Facility. In 2025, we incurred approximately $3.7 million in financing and professional costs in connection with the amendment to the Facility, which, combined with previously unamortized costs of $1.0 million, are being amortized on a straight-line basis as a non-cash charge to interest expense over the remaining term of the Facility. As of September 30, 2025, we had $100.0 million of outstanding borrowings on the revolving credit facility, $83.2 million in letters of credit outstanding and $916.8 million of credit available.
Previous wording
The Facility contains financial covenants defining various financial measures and the levels of these measures with which we must comply. Covenant compliance is assessed as of each quarter end. We were in compliance with all of our financial covenants as of June 30, 2025.
Current wording
We were in compliance with all of our financial covenants as of September 30, 2025.
Previous wording
We have outstanding notes to the former owners of acquired companies. Together, these notes had an outstanding balance of $72.3 million as of June 30, 2025. At June 30, 2025, future principal payments of notes to former owners by maturity year are as follows (dollars in thousands):
Current wording
We have outstanding notes to the former owners of acquired companies. Together, these notes had an outstanding balance of $35.3 million as of September 30, 2025. On September 30, 2025, future principal payments of notes to former owners by maturity year were as follows (dollars in thousands):
Previous wording
We have generated positive net free cash flow for the last twenty-six calendar years, much of which occurred during challenging economic and industry conditions. We also continue to have significant borrowing capacity under our credit facility, and we maintain what we feel are reasonable cash balances. We believe these factors will provide us with sufficient liquidity to fund our operations for the foreseeable future.
Current wording
We have generated positive net free cash flow for the last 26 calendar years, much of which occurred during challenging economic and industry conditions. We also continue to have significant borrowing capacity under our credit facility, and we maintain what we feel are reasonable cash balances. We believe these factors will provide us with sufficient liquidity to fund our operations for the foreseeable future.
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. If we fail to perform under the terms of a contract or to pay
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. If we fail to perform under the terms of a contract or to pay subcontractors and vendors who provided goods or services under a contract, the customer may demand that the surety make payments or provide services under the bond. We must reimburse the sureties for any expenses or outlays they incur.
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Current report — wording carried from elsewhere
million) and one of our Texas operations ($325.9 million). The year-over-year backlog increase included the acquisitions of Right Way ($129.8 million) and Century ($48.9 million), as well as a same-store increase of $3.52 billion, or 61.9%. Same-store year-over-year backlog growth was primarily attributable to increased project bookings in the technology sector at one of our North Carolina operations ($985.2 million), one of our Indiana operations ($679.8 million), our Texas electrical operation ($667.1 million) and our Texas modular operation ($627.1 million).
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Previous report — wording carried elsewhere
We had 47 operating locations as of December 31, 2024. In the first quarter of 2025, we completed the acquisition of Century Contractors, LLC (“Century”), which reports as a separate operating location. In the second quarter of 2025, we combined two operating locations into one. Additionally, we completed the acquisition of Right Way
Previous report — wording carried elsewhere
Selling, General and Administrative Expenses (“SG&A”)—SG&A increased $30.9 million, or 17.2%, to $210.5 million for the second quarter of 2025 as compared to 2024. On a same-store basis, excluding amortization expense, SG&A increased $27.9 million, or 16.9%. The same-store increase is primarily due to higher same-store
Previous report — wording carried elsewhere
challenges. We have been generally successful in maintaining productivity and in procuring needed materials despite ongoing challenges.
Previous report — wording carried elsewhere
April 2025 and positively impacted our second quarter cashflows. Along with the refund, we received $11.3 million (or $8.9 million, net of tax) of interest income that reduced our provision for income taxes in the first quarter of 2025.
Previous report — wording carried elsewhere
subcontractors and vendors who provided goods or services under a contract, the customer may demand that the surety make payments or provide services under the bond. We must reimburse the sureties for any expenses or outlays they incur.