Primoris Services Corp

Previous wording

This Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 (“Second Quarter 2025 Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended , and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements include all statements that are not historical facts and usually can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions.

Current wording

This Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 (“Third Quarter 2025 Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended , and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements include all statements that are not historical facts and usually can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions.

Previous wording

We discuss many of these risks in detail in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission (“SEC”). You should read this Second Quarter 2025 Report, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the SEC completely and with the understanding that our actual future results may be materially different from what we expect.*

Current wording

We discuss many of these risks in detail in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission (“SEC”). You should read this Third Quarter 2025 Report, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the SEC completely and with the understanding that our actual future results may be materially different from what we expect.*

Previous wording

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Second Quarter 2025 Report. We assume no obligation to update these forward-looking statements publicly, or to update the reasons actual

Current wording

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Third Quarter 2025 Report. We assume no obligation to update these forward-looking statements publicly, or to update the reasons actual

Previous wording

The following discussion and analysis should be read in conjunction with the unaudited financial statements and the accompanying notes included in Part 1, Item 1 of this Second Quarter 2025 Report and our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

The following discussion and analysis should be read in conjunction with the unaudited financial statements and the accompanying notes included in Part 1, Item 1 of this Third Quarter 2025 Report and our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

We are one of the leading providers of infrastructure services operating mainly in the United States and Canada. We provide a wide range of construction, maintenance, replacement, fabrication, and engineering services to a diversified base of customers through our two segments: Utilities and Energy. The structure of our reportable segments is generally focused on broad end-user markets for our services.

Current wording

We are a leading provider of critical infrastructure services operating mainly in the United States and Canada. We provide a wide range of construction, maintenance, replacement, fabrication, and engineering services to a diversified base of customers through our two segments: Utilities and Energy. The structure of our reportable segments is generally focused on broad end-user markets for our services.

Previous wording

We generate our revenue from construction and engineering projects, as well as from providing a variety of infrastructure services. We depend in part on spending by companies in the communications, gas and electric utilities, energy, chemical, and pipeline industries, as well as state departments of transportation. Over the past several years, each segment has benefited from demand for more efficient and more environmentally friendly energy and power facilities, more reliable gas and electric utility infrastructure, and upgraded and expanded local highway and bridge needs. However, periodically, each of these industries and government agencies is adversely affected by macroeconomic conditions and other challenging market conditions, such as those that have caused declines in the pipeline industry. Economic and other factors outside of our control may affect the amount and size of contracts we are awarded in any particular period.

Current wording

We generate our revenue from construction and engineering projects, as well as from providing a variety of critical infrastructure services. We depend in part on spending by companies in the communications, gas and electric utilities, energy, chemical, and pipeline industries, as well as state departments of transportation. Over the past several years, each segment has benefited from demand for more energy and power facilities, more reliable gas and electric utility infrastructure, and upgraded and expanded local highway and bridge needs. However, periodically, each of these industries and government agencies is adversely affected by macroeconomic conditions and other challenging market conditions, such as those that had caused declines in the pipeline industry. Economic and other factors outside of our control may affect the amount and size of contracts we are awarded in any particular period.

Previous wording

We actively monitor the impact of the macroeconomic environment, including the impact of inflation, tariffs, and volatility in the commodities markets, on all aspects of our business. We have experienced increased operating costs and anticipate that elevated levels of cost inflation could persist in the latter half of 2025. In an effort to mitigate the impacts of inflation on our operations, we attempt to recover increases in the cost of labor, equipment, fuel and materials through price escalation provisions that allow us to adjust billing rates for certain major contracts annually; by considering the estimated effect of such increases when bidding or pricing new work; or by entering into back-to-back contracts with suppliers and subcontractors. However, the annual adjustment provided by certain contracts is typically subject to a cap and there can be an extended period of time between the impact of inflation on our costs and when billing rates are adjusted. In some cases, our actual cost increases have exceeded the contractual caps, and therefore negatively impacted the profitability of our operations until the contracts have been renegotiated to reflect these higher costs.

Current wording

We actively monitor the impact of the macroeconomic environment, including the impact of inflation, tariffs, and volatility in the commodities markets, on all aspects of our business. We have experienced increased operating costs and anticipate that elevated levels of cost inflation could persist in the remainder of 2025. In an effort to mitigate the impacts of inflation on our operations, we attempt to recover increases in the cost of labor, equipment, fuel and materials through price escalation provisions that allow us to adjust billing rates for certain major contracts annually; by considering the estimated effect of such increases when bidding or pricing new work; or by entering into back-to-back contracts with suppliers and subcontractors. However, the annual adjustment provided by certain contracts is typically subject to a cap and there can be an extended period of time between the impact of inflation on our costs and when billing rates are adjusted. In some cases, our actual cost increases have exceeded the contractual caps, and therefore negatively impacted the profitability of our operations until the contracts have been renegotiated to reflect these higher costs.

Previous wording

The new U.S. administration has announced or imposed a series of tariffs on U.S. trading partners. The extent and duration of increased tariffs and the resulting impact on general economic conditions and on our business is uncertain. The potential outcomes depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, availability and cost of alternative sources of supply, and demand for our services in affected markets. We will continue to monitor these developments closely, particularly those that affect our business which operates in both the U.S. and Canada. We are also developing contingency plans, including alternative sourcing strategies and supplier diversification to mitigate potential future impacts.

Current wording

The U.S. administration has announced or imposed a series of tariffs on U.S. trading partners. The extent and duration of increased tariffs and the resulting impact on general economic conditions and on our business remains uncertain. The potential outcomes depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, availability and cost of alternative sources of supply, and demand for our services in affected markets. We will continue to monitor these developments closely, particularly those that affect our business which operates in both the U.S. and Canada. We are also developing contingency plans, including alternative sourcing strategies and supplier diversification to mitigate potential future impacts.

Previous wording

We are exposed to certain market risks related to changes in interest rates. To monitor and manage these market risks, we have established risk management policies and procedures. Our Revolving Credit Facility and Term Loan bear interest at a variable rate which exposes us to interest rate risk. From time to time, we may use certain derivative instruments to hedge our exposure to variable interest rates. We began 2025 with $300.0 million of our variable rate debt outstanding economically hedged. The interest rate swap matured on January 31, 2025. Based on our variable rate debt outstanding as of June 30, 2025, a 1.0% increase or decrease in interest rates would change annual interest expense by approximately $5.7 million.

Current wording

We are exposed to certain market risks related to changes in interest rates. To monitor and manage these market risks, we have established risk management policies and procedures. Our Revolving Credit Facility and Term Loan bear interest at a variable rate which exposes us to interest rate risk. From time to time, we may use certain derivative instruments to hedge our exposure to variable interest rates. We began 2025 with $300.0 million of our variable rate debt outstanding economically hedged. The interest rate swap matured on January 31, 2025. Based on our variable rate debt outstanding as of September 30, 2025, a 1.0% increase or decrease in interest rates would change annual interest expense by approximately $4.5 million.

Previous wording

The following discussion compares the results of the three and six months ended June 30, 2025, to the three and six months ended June 30, 2024.

Current wording

The following discussion compares the results of the three and nine months ended September 30, 2025, to the three and nine months ended September 30, 2024.

Previous wording

Revenue was $1,890.7 million for the three months ended June 30, 2025, an increase of $327.0 million, or 20.9%, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments.

Current wording

Revenue was $2,178.4 million for the three months ended September 30, 2025, an increase of $529.3 million, or 32.1%, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments.

Previous wording

Revenue was $3,538.9 million for the six months ended June 30, 2025, an increase of $562.4 million, or 18.9%, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments.

Current wording

Revenue was $5,717.3 million for the nine months ended September 30, 2025, an increase of $1,091.8 million, or 23.6%, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments.

Previous wording

Gross profit was $402.4 million for the six months ended June 30, 2025, an increase of $82.3 million, or 25.7%, compared to the same period in 2024. The increase was primarily due to an increase in revenue in both segments and improved margins in our Utilities segment, partially offset by lower margins in our Energy segment. Gross profit as a percentage of revenue increased to 11.4% for the six months ended June 30, 2025, compared to 10.8% for the same period in 2024 primarily driven by improved margins in our Utilities segment, partially offset by lower margins in our Energy segment.

Current wording

Gross profit was $235.7 million for the three months ended September 30, 2025, an increase of $37.1 million, or 18.7%, compared to the same period in 2024. The increase was primarily due to an increase in revenue in both segments, partially offset by lower margins. Gross profit as a percentage of revenue decreased to 10.8% for the three months ended September 30, 2025, compared to 12.0% for the same period in 2024 primarily driven by lower margins in both segments.

Previous wording

Gross profit was $231.7 million for the three months ended June 30, 2025, an increase of $45.0 million, or 24.1%, compared to the same period in 2024. The increase was primarily due to an increase in revenue in both segments and improved margins in our Utilities segment, partially offset by lower margins in our Energy segment. Gross profit as a percentage of revenue increased to 12.3% for the three months ended June 30, 2025, compared to 11.9% for the same period in 2024 primarily driven by improved margins in our Utilities segment, partially offset by lower margins in our Energy segment.

Current wording

Gross profit was $638.1 million for the nine months ended September 30, 2025, an increase of $119.5 million, or 23.0%, compared to the same period in 2024. The increase was primarily due to an increase in revenue in both segments and improved margins in our Utilities segment, partially offset by lower margins in our Energy segment. Gross profit as a percentage of revenue remained consistent at 11.2% for the nine months ended September 30, 2025, compared to the same period in 2024 primarily driven by improved margins in our Utilities segment, offset by lower margins in our Energy segment.

Previous wording

SG&A expenses were $104.6 million during the three months ended June 30, 2025, an increase of $4.4 million, or 4.4%, compared to 2024, primarily due to increased people costs to support revenue growth. SG&A expenses as a percentage of revenue decreased to 5.5% compared to 6.4% for the corresponding period in 2024 due to increased revenue.

Current wording

SG&A expenses were $97.7 million during the three months ended September 30, 2025, a decrease of $0.4 million, or 0.4%, compared to 2024. SG&A expenses as a percentage of revenue decreased to 4.5% compared to 5.9% for the corresponding period in 2024 due to increased revenue and cost control efforts to leverage administrative costs in 2025.

Previous wording

SG&A expenses were $204.1 million during the six months ended June 30, 2025, an increase of $15.3 million, or 8.1%, compared to 2024, primarily due to increased people costs to support revenue growth and costs associated with the separation agreement entered into with our former Chief Executive Officer. SG&A expenses as a percentage of revenue decreased to 5.8% compared to 6.3% for the corresponding period in 2024 due to increased revenue.

Current wording

SG&A expenses were $301.7 million during the nine months ended September 30, 2025, an increase of $14.9 million, or 5.2%, compared to 2024, primarily due to increased people costs to support revenue growth and costs associated with the separation agreement entered into with our former Chief Executive Officer. SG&A expenses as a percentage of revenue decreased to 5.3% compared to 6.2% for the corresponding period in 2024 due to increased revenue.

Previous wording

Non-operating income and expense items for the three and six months ended June 30, 2025, and 2024 were as follows (in thousands):

Current wording

Non-operating income and expense items for the three and nine months ended September 30, 2025, and 2024 were as follows (in thousands):

Previous wording

Interest expense, net for the three and six months ended June 30, 2025, decreased $9.6 million and $19.8 million, respectively, compared to the same periods in 2024 due to lower average debt balances and lower average interest rates.

Current wording

Interest expense, net for the three and nine months ended September 30, 2025, decreased $10.9 million and $30.7 million, respectively, compared to the same periods in 2024 due to lower average debt balances and lower average interest rates.

Previous wording

The effective tax rate for the six-month periods ended June 30, 2025 and 2024, of 29.0% differs from the U.S. federal statutory rate of 21.0% primarily due to the impact of state income taxes and nondeductible components of per diem expenses.

Current wording

The effective tax rate for the nine-month periods ended September 30, 2025 and 2024, of 28.5% and 29.0%, respectively differs from the U.S. federal statutory rate of 21.0% primarily due to the impact of state income taxes and nondeductible components of per diem expenses.

Previous wording

We recorded income tax expense for the six months ended June 30, 2025, of $52.5 million compared to $28.0 million for the six months ended June 30, 2024. The $24.5 million increase is primarily driven by a $84.6 million increase in pretax income.

Current wording

We recorded income tax expense for the nine months ended September 30, 2025, of $89.0 million compared to $51.8 million for the nine months ended September 30, 2024. The $37.2 million increase is primarily driven by a $133.4 million increase in pretax income.

Previous wording

Revenue increased by $72.2 million, or 11.6%, for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to increased activity in our power delivery, communications and gas operations markets.

Current wording

Revenue increased by $71.3 million, or 10.7%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to increased activity in our power delivery, communications and gas operations markets.

Previous wording

Revenue increased by $424.0 million, or 22.1%, for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increased renewable energy activity, partially offset by lower industrial and pipeline activity.

Current wording

Revenue increased by $474.8 million, or 47.0%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to increased renewable energy and industrial activity, partially offset by lower pipeline activity.

Previous wording

Operating income for the six months ended June 30, 2025, increased by $20.1 million, or 13.3%, compared to the same period in 2024, primarily due to strong revenue growth. Gross profit as a percentage of revenue decreased to 10.8% during the six months ended June 30, 2025, compared to 11.8% in the same period in 2024 primarily due to a more favorable impact from the close out of renewable projects in 2024 compared to 2025. In addition, we experienced increased costs in 2025 on certain renewables projects due in part to unfavorable weather conditions.

Current wording

Operating income for the three months ended September 30, 2025, increased by $34.3 million, or 46.2%, compared to the same period in 2024, primarily due to revenue growth, partially offset by lower gross margins. Gross profit as a percentage of revenue decreased to 10.1% during the three months ended September 30, 2025, compared to 11.0% in the same period in 2024 primarily due to a more favorable impact from the close out of multiple renewables and industrial projects in 2024. In addition, we experienced increased costs in 2025 on certain renewables projects due in part to unfavorable weather conditions.

Previous wording

Operating performance by segment for the six months ended June 30, 2025 and 2024 was as follows (in millions):

Current wording

Operating performance by segment for the nine months ended September 30, 2025 and 2024 was as follows (in millions):

Previous wording

Revenue increased by $147.7 million, or 13.3%, for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increased activity in our gas operations, power delivery and communications markets.

Current wording

Revenue increased by $218.9 million, or 12.3%, for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increased activity in our gas operations, power delivery and communications markets.

Previous wording

Operating income for the six months ended June 30, 2025 increased $48.8 million compared to the same period in 2024 due to revenue growth and improved gross margins. Gross profit as a percentage of revenue increased to 11.9% during the six months ended June 30, 2025 compared to 8.4% in the same period in 2024, primarily due to strong performance in our power delivery market in 2025 and a favorable impact from project closeouts in our gas operations market in 2025.

Current wording

Operating income for the nine months ended September 30, 2025 increased $49.6 million, or 55.6% compared to the same period in 2024 due to revenue growth and improved gross margins. Gross profit as a percentage of revenue increased to 11.8% during the nine months ended September 30, 2025 compared to 10.0% in the same period in 2024, primarily due to strong performance in power delivery in 2025 and a favorable impact from project closeouts in gas operations in 2025, partially offset by reduced higher margin storm work in 2025.

Previous wording

Revenue increased by $263.3 million, or 27.0%, for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to increased renewable energy activity, partially offset by lower pipeline activity.

Current wording

Revenue increased by $899.0 million, or 30.7%, for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increased renewable energy activity, partially offset by lower pipeline activity.

Previous wording

Operating income for the three months ended June 30, 2025, increased by $7.8 million, or 9.2%, compared to the same period in 2024, primarily due to strong revenue growth, partially offset by lower gross margins. Gross profit as a percentage of revenue decreased to 10.8% during the three months ended June 30, 2025, compared to 12.6% in the same period in 2024 primarily due to a more favorable impact from the close out of renewables projects in 2024 compared to 2025. Additionally, we experienced increased costs in 2025 on certain renewables projects due in part to unfavorable weather conditions.

Current wording

Operating income for the nine months ended September 30, 2025, increased by $51.5 million, or 22.5%, compared to the same period in 2024, primarily due to strong revenue growth, partially offset by lower gross margins. Gross profit as a percentage of revenue decreased to 10.5% during the nine months ended September 30, 2025, compared to 11.6% in the same period in 2024 primarily due to a more favorable impact from the close out of renewable projects in 2024 compared to 2025. In addition, we experienced increased costs in 2025 on certain renewables projects due in part to unfavorable weather conditions.

Previous wording

The majority of our revenue is derived from customers in the United States with approximately 2.3% generated from sources outside of the United States during the six months ended June 30, 2025, principally in Canada.

Current wording

The majority of our revenue is derived from customers in the United States with approximately 2.3% generated from sources outside of the United States during the nine months ended September 30, 2025, principally in Canada.

Previous wording

For infrastructure services contractors, backlog can be an indicator of future revenue streams. Different companies define and calculate backlog in different manners. We define backlog as anticipated revenue from the uncompleted portions of existing contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value (“Fixed Backlog”), and the estimated revenue on MSA work (“MSA Backlog”). We present two measures of backlog; one that includes Fixed Backlog and MSA Backlog for the next twelve months, and total backlog that includes all Fixed Backlog and MSA Backlog to the end of the MSA agreement. In addition, many of our MSAs are subject to renewal, and these potential renewals are not considered in estimating MSA Backlog. We do not include certain contracts in the calculation of fixed backlog where scope, and therefore contract value, is not adequately defined. We estimate MSA Backlog based on historical trends, anticipated seasonal impacts and estimates of customer demand based on information from our customers.

Current wording

For infrastructure services contractors, backlog can be an indicator of future revenue streams. Different companies define and calculate backlog in different manners. We define backlog as anticipated revenue from the uncompleted portions of existing contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value (“Fixed Backlog”), and the estimated revenue on MSA work (“MSA Backlog”). We present two measures of backlog; one that includes Fixed Backlog and MSA Backlog for the next twelve months, and total backlog that includes all Fixed Backlog and MSA Backlog to the end of the MSA agreement. In addition, many of our MSAs are subject to renewal, and these potential renewals can be considered in estimating MSA Backlog. We do not include certain contracts in the calculation of fixed backlog where scope, and therefore contract value, is not adequately defined. We estimate MSA Backlog based on historical trends, anticipated seasonal impacts and estimates of customer demand based on information from our customers.

Previous wording

Liquidity represents our ability to pay our liabilities when they become due, fund business operations, and meet our contractual obligations and execute our business plan. Our primary sources of liquidity are our cash balances at the beginning of each period and our cash flows from operating activities. If needed, we have availability under our lines of credit to augment liquidity needs, and we have a current shelf registration statement filed with the SEC that allows for the issuance of an indeterminate amount of debt and equity securities. Our short-term and long-term cash requirements consist primarily of working capital, investments to support revenue growth and maintain our equipment and facilities, general corporate needs, and to service our debt obligations. As of June 30, 2025, there were no outstanding borrowings under the Revolving Credit Facility, commercial letters of credit outstanding were $20.7 million, and available borrowing capacity

Current wording

Liquidity represents our ability to pay our liabilities when they become due, fund business operations, and meet our contractual obligations and execute our business plan. Our primary sources of liquidity are our cash balances at the beginning of each period and our cash flows from operating activities. If needed, we have availability under our lines of credit to augment liquidity needs, and we have a current shelf registration statement filed with the SEC that allows for the issuance of an indeterminate amount of debt and equity securities. Our short-term and long-term cash requirements consist primarily of working capital, investments to support revenue growth and maintain our equipment and facilities, general corporate needs, and to service our debt obligations. As of September 30, 2025, there were no outstanding borrowings under the Revolving Credit Facility, commercial letters of credit outstanding were $9.8 million, and available borrowing capacity was $315.2 million. In addition, there were no outstanding borrowings under our Canadian credit facilities as of September 30, 2025, commercial letters of credit outstanding were $0.3 million in Canadian dollars and available borrowing capacity was $13.7 million in Canadian dollars.

Previous wording

In June 2023, we entered into the Facility with PNC to reduce interest costs and improve cash flows from trade accounts receivable. In July 2024 we renewed the Facility for a two-year term, added Regions to the Facility, and increased the maximum purchase commitment to $150.0 million, at any one time. In March 2025 we entered into the “Amended Facility, modifying certain terms of the Facility and extending the maturity date of the Facility to March 24, 2027. In August 2025, we increased the maximum commitment amount under the Amended Facility to $250.0 million. Under the Amended Facility, certain of our designated subsidiaries may sell or pledge their trade accounts receivable as they are originated to a wholly owned bankruptcy remote SPE created specifically for this purpose. The total outstanding balance of trade accounts receivable that have been sold and derecognized is $100.0 million as of June 30, 2025. In addition, the total amount of trade accounts receivable that have been pledged is $50.0 million as of June 30, 2025. As of June 30, 2025, we did not have any available capacity under the Amended Facility, prior to the August 2025 amendment.

Current wording

In June 2023, we entered into the Facility with PNC to reduce interest costs and improve cash flows from trade accounts receivable. In July 2024 we renewed the Facility for a two-year term, added Regions to the Facility, and increased the maximum purchase commitment to $150.0 million, at any one time. In March 2025 we entered into the “Amended Facility, modifying certain terms of the Facility and extending the maturity date of the Facility to March 24, 2027. In August 2025, we increased the maximum commitment amount under the Amended Facility to $250.0 million. Under the Amended Facility, certain of our designated subsidiaries may sell or pledge their trade accounts receivable as they are originated to a wholly owned bankruptcy remote SPE created specifically for this purpose. The total outstanding balance of trade accounts receivable that have been sold and derecognized is $125.0 million as of September 30, 2025. In addition, the total amount of trade accounts receivable that have been pledged is $62.5 million as of September 30, 2025. As of September 30, 2025, we had $62.5 million available capacity under the Amended Facility.

Previous wording

Our cash and cash equivalents totaled $390.3 million as of June 30, 2025, compared to $455.8 million as of December 31, 2024. We anticipate that our cash and investments on hand, existing borrowing capacity under our credit facilities, access to and capacity under a shelf registration statement, and our future cash flows from operations will provide sufficient funds to enable us to meet our operating needs, our planned capital expenditures, and settle our commitments and contingencies for the next twelve months and the foreseeable future.

Current wording

Our cash and cash equivalents totaled $431.4 million as of September 30, 2025, compared to $455.8 million as of December 31, 2024. We anticipate that our cash and investments on hand, existing borrowing capacity under our credit facilities, access to and capacity under a shelf registration statement, and our future cash flows from operations will provide sufficient funds to enable us to meet our operating needs, our planned capital expenditures, and settle our commitments and contingencies for the next twelve months and the foreseeable future.

Previous wording

The construction industry is capital intensive, and we expect to continue to make capital expenditures to meet anticipated needs for our services. During the six months ended June 30, 2025, we spent approximately $73.7 million for capital expenditures, which included $40.5 million for construction equipment and $22.1 million on our facilities. Capital expenditures for the remaining six months of 2025 are expected to total between $25.0 million and $45.0 million, which includes $20.0 million to $40.0 million for equipment.

Current wording

The construction industry is capital intensive, and we expect to continue to make capital expenditures to meet anticipated needs for our services. During the nine months ended September 30, 2025, we spent approximately $108.2 million for capital expenditures, which included $64.2 million for construction equipment and $27.7 million on our facilities. Capital expenditures for the remaining three months of 2025 are expected to total between $15.0 million and $20.0 million, which includes $5.0 million to $10.0 million for equipment.

Previous wording

Cash flows during the six months ended June 30, 2025 and 2024 are summarized as follows (in millions):

Current wording

Cash flows during the nine months ended September 30, 2025 and 2024 are summarized as follows (in millions):

Previous wording

The cash flows provided by (used in) operating activities for the six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

The cash flows provided by operating activities for the nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Net cash provided by operating activities for the six months ended June 30, 2025 was $144.6 million compared to $12.4 million cash used in operating activities for the six months ended June 30, 2024. The change year-over-year was primarily due to improvement in the impact from the changes in assets and liabilities and an increase in net income.

Current wording

Net cash provided by operating activities for the nine months ended September 30, 2025 was $327.5 million compared to $210.0 million cash provided by operating activities for the nine months ended September 30, 2024. The change year-over-year was primarily due to an increase in net income.

Previous wording

The significant components of the $29.6 million change in assets and liabilities for the six months ended June 30, 2025 are summarized as follows:

Current wording

The significant components of the $38.7 million change in assets and liabilities for the nine months ended September 30, 2025 are summarized as follows:

Previous wording

The significant components of the $113.9 million change in assets and liabilities for the six months ended June 30, 2024 are summarized as follows:

Current wording

The significant components of the $33.8 million change in assets and liabilities for the nine months ended September 30, 2024 are summarized as follows:

Previous wording

For the six months ended June 30, 2025, cash used in investing activities was $59.1 million compared to $39.3 million provided by investing activities for the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, cash used in investing activities was $78.2 million compared to $0.9 million for the nine months ended September 30, 2024.