Limbach Holdings, Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Nov 3, 2026
LMB$53.45-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001628280-26-052622
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001628280-26-069590
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 155 previous paragraphs and 163 current paragraphs.
88 unchanged; 51 reworded; 21 added; 13 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 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 (21)
Current report
On September 1, 2026, the Company completed the acquisition of Madison, Wisconsin-based mechanical contractor, 1901. 1901 is a union MEP contractor providing mechanical, electrical, plumbing, controls, design-build, construction, fabrication, service, maintenance, and underground utility solutions throughout Wisconsin and the Midwest. The acquisition further expands the Company’s footprint in the core Midwest, strengthens its MEPC capabilities and increases its exposure across market verticals, including higher education, healthcare, and cultural facilities, while creating additional opportunities in data centers, advanced manufacturing, life sciences, and technology.
Current report
On August 4, 2026, the Company completed the acquisition of Frisco, Texas-based professional services firm, CYMCOR. CYMCOR is a professional services firm specializing in program management, commissioning oversight, and strategic consulting for hyperscale, colocation, enterprise, and mission-critical data center clients. CYMCOR partners directly with owners to plan, coordinate, and deliver complex projects throughout the facility lifecycle, building long-term relationships through a highly technical, service-oriented approach. The acquisition expands the Company’s professional services platform and strengthens the Company’s position within the rapidly growing data center market.
Current report
See Note 3 – Acquisitions in the accompanying notes to the Company’s condensed consolidated financial statements for further information.
Current report
•Total revenue increased by $45.9 million, or 24.9%, during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Revenue generated from the Company’s organic operations increased by
Current report
•ODR revenue increased by $9.3 million, or 6.6%, primarily due to the acquisitions of 1901 and CYMCOR, as well as organic growth. These acquisitions contributed approximately $6.2 million of ODR revenue during the three months ended September 30, 2026, while the Company’s ODR organic revenue increased approximately $3.1 million.
Current report
•Total gross profit increased by $9.2 million primarily due to higher revenue. Gross margin percentage reflected the quarter’s revenue mix, including a higher proportion of GCR revenue, which typically carries lower gross margins than ODR revenue. Segment gross margins also reflected the contribution from certain recently acquired businesses that currently operate at lower gross margin profiles than Limbach’s historical levels. These businesses currently continue to perform in line with the Company’s integration expectations, and management is implementing operational and pricing initiatives to improve profitability, with the goal of bringing their gross margins closer to the Company’s historical averages over the next two to three years.
Current report
•Amortization of intangibles increased period-over-period primarily due to amortization expense associated with intangible assets recognized in connection with the CYMCOR and 1901 acquisitions, which was incurred only in the current-year period.
Current report
•Interest expense, interest income and the loss on change in fair value of the interest rate swap remained relatively consistent with the prior-year period. Gain on disposition of property and equipment decreased $0.2 million, reflecting normal fluctuations in asset disposal activity.
Current report
•ODR revenue increased by $38.2 million, or 11.2%, primarily due to the acquisitions of Pioneer Power, 1901 and CYMCOR, which collectively contributed approximately $43.7 million of ODR revenue during the nine months ended September 30, 2026. The Company’s organic ODR revenue decreased approximately $5.5 million.
Current report
•GCR revenue increased by $44.7 million, or 37.5% primarily due to $30.1 million of acquisition-related revenue attributable to the Pioneer Power and 1901 acquisitions, as well as a $14.6 million increase in organic GCR revenue.
Current report
•Total gross profit increased by $1.1 million, or 0.9%, primarily due to increased revenue despite a decline in gross profit margin, reflecting a greater proportion of period-over-period GCR revenue, which typically generates lower gross margins than ODR revenue. Segment gross margins also remained below historical levels due in part to the inclusion of certain acquired businesses with historically lower gross margin profiles. These businesses continue to perform in line with the Company’s integration expectations, and management is implementing operational and pricing initiatives to improve profitability, with the goal of bringing their gross margins closer to the Company’s historical averages over the next two to three years.
Current report
•Amortization of intangible assets increased period over period, primarily due to amortization expense associated with intangible assets recognized in connection with the CYMCOR and 1901 acquisitions completed in the third quarter of 2026, as well as the Pioneer Power acquisition completed in the third quarter of 2025.
Current report
•Gain on disposition of property and equipment decreased $0.7 million, reflecting normal fluctuations in asset disposal activity.
Current report
(2)Certain prior-period operating cash flow amounts have been reclassified to conform to the current-period presentation, including the net presentation of changes in contract assets and contract liabilities and the presentation of acquisition-related retention expense and contingent consideration. These reclassifications had no impact on net cash provided by operating activities.
Current report
Cash Flows Provided by Financing Activities
Current report
Cash flows provided by financing activities were $90.3 million for the nine months ended September 30, 2026 compared to $15.2 million for the nine months ended September 30, 2025. During the nine months ended September 30, 2026, the Company borrowed $229.6 million and repaid $239.6 million under the former Wintrust revolving credit facility. In September 2026, the Company entered into the PNC Credit Agreement, with initial borrowings of $75.0 million under the PNC Revolving Credit Facility and $50.0 million under the PNC Term Loan Facility. The Company also paid approximately $1.8 million in debt issuance costs associated with the PNC Credit Agreement. See Note 6 – Debt in the accompanying notes to the Company’s condensed consolidated financial statements for additional information.
Current report
(2)On September 9, 2026, LFS, LHLLC, and other designated parties entered into the PNC Credit Agreement with PNC, as administrative agent, swingline lender and issuing lender, and other lenders party thereto. The PNC Credit Agreement provides for a credit facility in an aggregate amount of up to $300.0 million in total commitments, consisting of: a revolving credit facility with an aggregate principal amount of $200.0 million, including a $20.0 million swingline loan subfacility and a $25.0 million letter of credit subfacility, a term loan facility with an aggregate principal amount of $50.0 million and a delayed draw term loan facility with aggregate commitments of $50.0 million. See Note 6 – Debt to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information regarding the PNC Credit Facility.
Current report
(4) Represents the portion of unused borrowing capacity under the PNC Revolving Credit Facility and PNC Delayed Draw Term Loan Facility that was unavailable to the Company as of September 30, 2026 due to the requirement to maintain compliance with the maximum Consolidated Net Leverage Ratio under the PNC Credit Agreement. This amount is based on the Company's covenant calculation as of September 30, 2026 and assumes that proceeds from any additional borrowings are used for purposes that do not increase cash included in the covenant calculation. Actual borrowing availability may vary based on the Company's financial performance, the use of borrowing proceeds, and other conditions under the PNC Credit Agreement.
Current report
On September 9, 2026, the Company entered into the PNC Credit Agreement, which provides for aggregate commitments of up to $300.0 million, including a $200.0 million revolving credit facility, a $50.0 million term loan facility and a $50.0 million delayed draw term loan facility. The Company believes the new credit facility enhances its liquidity and financial flexibility and increases its available borrowing capacity to support its operating requirements. See Note 6 – Debt to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information regarding the PNC Credit Facility.
Current report
Based on its current forecast, the Company believes that its cash and cash equivalents of $29.1 million as of September 30, 2026, cash flows expected to be generated from operations and available borrowing capacity under the PNC Revolving Credit Facility and PNC DDTL Facility of $125.0 million and $50.0 million, respectively, as of September 30, 2026, subject to applicable borrowing conditions and continued compliance with the financial covenants under the PNC Credit Agreement, are expected to be sufficient to meet its working capital needs, capital expenditure requirements and other liquidity requirements for at least the next 12 months. Of the combined $175.0 million in unused commitments, approximately $39.9 million was unavailable due to financial covenant limitations, resulting in approximately $135.1 million of available borrowing capacity as of September 30, 2026.
Current report
See Note 6 – Debt to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.
Removed paragraphs (13)
Previous report
•ODR revenue increased by $19.5 million, or 17.9%, primarily due to the acquisition of Pioneer Power, which contributed approximately $23.2 million in ODR revenue in the three months ended June 30, 2026. The Company’s ODR organic revenue decreased approximately $3.7 million.
Previous report
•Total gross profit decreased by $2.5 million primarily due to lower gross margin percentages in both our ODR and GCR segments. The decrease in segment gross margin percentages was primarily driven by the lower margin profile of Pioneer Power. Pioneer Power continues to perform in line with the Company’s integration expectations and management expects gross margins to improve as 2026 progresses. Operational and pricing improvement initiatives are underway to enhance profitability at Pioneer Power, with the goal of bringing gross margins in line with the Company’s historical average over the next two to three years.
Previous report
•Amortization of intangibles decreased period-over-period primarily due to certain finite-lived intangible assets becoming fully amortized. This decrease was partially offset by incremental amortization expense associated with intangible assets recognized in connection with the Pioneer Power acquisition.
Previous report
•Gain on disposition of property and equipment decreased $0.3 million primarily due to various gains recognized in both periods, none of which were individually material.
Previous report
•Total revenue increased by $37.0 million, or 13.4%, primarily due to the acquisition of Pioneer Power, which contributed $54.5 million of revenue from acquired operations during the six months ended June 30, 2026.
Previous report
•ODR revenue increased by $28.9 million, or 14.5%, primarily due to the acquisition of Pioneer Power, which contributed approximately $37.5 million in ODR revenue in the current period. The Company’s organic ODR operations decreased approximately $8.6 million.
Previous report
•GCR revenue increased by $8.1 million, or 10.6% primarily due to an incremental increase in GCR acquisition-related revenue of approximately $17.0 million from the Pioneer Power acquisition. This increase was partially offset by lower GCR organic revenue of $8.9 million.
Previous report
•Total gross profit decreased by $8.1 million, or 10.6%, primarily due to lower gross margin percentages in both our ODR and GCR segments. The decrease in segment gross margin percentages was primarily driven by the lower margin profile of Pioneer Power. Pioneer Power continues to perform in line with the Company’s integration expectations and management expects gross margins to improve as 2026 progresses. Operational and pricing improvement initiatives are underway to enhance profitability at Pioneer Power, with the goal of bringing gross margins in line with the Company’s historical average over the next two to three years.
Previous report
•Amortization of intangibles decreased period-over-period primarily due to certain finite-lived intangible assets becoming fully amortized. This decrease was partially offset by incremental amortization expense associated with intangible assets recognized in connection with the Pioneer Power acquisition.
Previous report
•Gain on disposition of property and equipment decreased $0.4 million primarily due to various gains recognized in both periods, none of which were individually material.
Previous report
Cash Flows Used in Financing Activities
Previous report
(2)On July 24, 2026, LFS, LHLLC, and other designated parties entered into the Third Amendment with Wintrust, as administrative agent, and the other lenders party thereto. The Third Amendment provides for, among other things, an upsize of the aggregate principal amount of the senior secured revolving credit facility from $100.0 million to $125.0 million. See Note 15 – Subsequent Events in the accompanying notes to the Company’s condensed consolidated financial statements for further information.
Previous report
Provided that the Company’s lenders continue to provide working capital funding, the Company believes based on its current forecast that its current cash and cash equivalents of $17.5 million as of June 30, 2026, cash payments to be received from existing and new customers, and availability of borrowing under the Wintrust Revolving Loans (pursuant to which we had $75.6 million of availability as of June 30, 2026) will be sufficient to meet its working capital and capital expenditure requirements for at least the next 12 months.
Reworded paragraphs (51)
Previous wording
The Company is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems. The Company partners with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. As of June 30, 2026, the Company had approximately 1,600 team members across 21 offices throughout the Eastern and Midwestern regions of the United States. The Company strives to be an indispensable partner by combining its national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, the Company integrates engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety.
Current wording
The Company is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems. The Company partners with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. As of September 30, 2026, the Company had approximately 2,100 team members across 23 offices throughout the Eastern and Midwestern regions of the United States. The Company strives to be an indispensable partner by combining its national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, the Company integrates engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety.
Previous wording
As part of the acquisition of Pioneer Power, the Company implemented retention arrangements for certain key employees of the acquired business. Retention-related compensation is recognized as expense ratably over the service period, which runs through December 2027, and is contingent on continued employment.
Current wording
As part of the acquisitions of Pioneer Power, CYMCOR and 1901, the Company implemented retention arrangements for certain key employees of the acquired businesses. Retention-related compensation is contingent on continued employment and is recognized as expense ratably over the respective required service periods.
Previous wording
Certain of the Company’s prior acquisitions include contingent earnout arrangements in which the Company may be required to make additional payments contingent upon the acquired businesses achieving specified performance targets over specified periods. The change in fair value of contingent consideration relates to the remeasurement of the contingent consideration arrangements resulting from the acquisitions of each of ACME, Industrial Air, Kent Island and Consolidated Mechanical. The carrying values of the ACME, Industrial Air, Kent Island and Consolidated Mechanical Earnout Payments are subject to remeasurement at fair value at each reporting date through the end of the respective earnout periods with any changes in the fair value reported as a separate component of operating income in the condensed consolidated statements of operations. See Note 8 – Fair Value Measurements in the accompanying notes to the Company’s condensed consolidated financial statements for further information on the Company’s contingent earnout arrangements.
Current wording
Certain of the Company’s prior acquisitions include contingent earnout arrangements in which the Company may be required to make additional payments contingent upon the acquired businesses achieving specified performance targets over specified periods. The change in fair value of contingent consideration relates to the remeasurement of the contingent consideration arrangements resulting from the acquisitions of each of ACME, Industrial Air, Kent Island, Consolidated Mechanical and 1901. The carrying values of the ACME, Industrial Air, Kent Island, Consolidated Mechanical and 1901 earnout payments are subject to remeasurement at fair value at each reporting date through the end of the respective earnout periods with any changes in the fair value reported as a separate component of operating income in the condensed consolidated statements of operations. See Note 8 – Fair Value Measurements in the accompanying notes to the Company’s condensed consolidated financial statements for further information on the Company’s contingent earnout arrangements.
Previous wording
Amortization expense represents periodic non-cash charges that consist of amortization of various intangible assets primarily including customer relationships, backlog, trade name, trademarks and intellectual property and favorable leasehold interests. Each of the Jake Marshall, ACME, Industrial Air, Kent Island, Consolidated Mechanical and Pioneer Power-related intangible assets were recorded under the acquisition method of accounting at their estimated fair values at the acquisition date. See Note 5 – Goodwill and Intangible Assets in the accompanying notes to the Company’s condensed consolidated financial statements for further information on the Company’s intangible assets.
Current wording
Amortization expense represents periodic non-cash charges that consist of amortization of various intangible assets primarily including customer relationships, backlog, trade name, trademarks and intellectual property, favorable leasehold interests, developed technology and non-compete agreements. Each of the Company's acquisition-related intangible assets was recorded under the acquisition method of accounting at their estimated fair values at the acquisition date. See Note 5 – Goodwill and Intangible Assets in the accompanying notes to the Company’s condensed consolidated financial statements for further information on the Company’s intangible assets.
Previous wording
Other (expenses) income consists primarily of interest expense incurred in connection with the Company’s indebtedness, gains and losses on dispositions of property and equipment, changes in the fair value of the Company’s interest rate swap, and interest income earned on overnight repurchase agreements. Deferred financing costs are amortized to interest expense using the effective interest method.
Current wording
Other (expenses) income consists primarily of interest expense incurred in connection with the Company’s indebtedness, gains and losses on dispositions of property and equipment, changes in the fair value of the Company’s interest rate swap, a loss on early debt extinguishment and interest income earned on overnight repurchase agreements. Deferred financing costs are amortized to interest expense using the effective interest method.
Previous wording
On July 1, 2025, the Company completed an acquisition of Woodbury, Minnesota-based mechanical contractor, Pioneer Power, Inc. (“Pioneer Power”). See Note 3 – Acquisition in the accompanying notes to the Company’s condensed consolidated financial statements for further information. Pioneer Power is a provider of industrial and institutional mechanical solutions serving healthcare, food, power/utility, oil refining and other select markets in the greater Twin Cities region of Minnesota and upper Midwest region. The acquisition further expanded the Company’s footprint in the core Midwest region and extended its reach into new geographic markets in the upper Midwest.
Current wording
On July 1, 2025, the Company completed an acquisition of Woodbury, Minnesota-based mechanical contractor, Pioneer Power. Pioneer Power is a provider of industrial and institutional mechanical solutions serving healthcare, food, power/utility, oil refining and other select markets in the greater Twin Cities region of Minnesota and upper Midwest region. The acquisition further expanded the Company’s footprint in the core Midwest region and extended its reach into new geographic markets in the upper Midwest.
Previous wording
(3)Included within selling, general and administrative expenses was $2.1 million and $1.6 million of non-cash stock-based compensation expense for the three months ended June 30, 2026 and 2025, respectively.
Current wording
(3)Included within selling, general and administrative expenses was $1.6 million and $1.9 million of non-cash stock-based compensation expense for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
This increase was partially offset by a $17.5 million decline in revenue from the Company’s organic operations for the six months ended June 30, 2026. The Company expects the timing of project commencements and execution within its existing backlog, together with currently expected future bookings, to support organic revenue growth during the remainder of 2026.
Current wording
$26.6 million, or 14.4%. The Company’s organic revenue growth during the third quarter was driven primarily by project commencements and execution within its existing backlog. The Company expects continued execution of its backlog, together with anticipated new bookings, to support further organic revenue growth during the remainder of 2026.
Previous wording
Acquisition-related revenue represents revenue generated by an acquired business during the twelve-month period following its acquisition date. Thereafter, the results of an acquired business are included within the Company’s organic operations, and period-over-period changes are discussed on a combined basis.
Current wording
During the three months ended September 30, 2026, the acquisitions of 1901 and CYMCOR contributed $19.3 million of revenue in the aggregate. Acquisition-related revenue represents revenue generated by an acquired business during the twelve-month period following its acquisition date. Thereafter, the acquired business is included within the Company's organic operations and period-over-period changes are discussed on a combined basis.
Previous wording
•GCR revenue increased by $11.8 million, or 35.3%, primarily due to an incremental increase in GCR acquisition-related revenue of approximately $7.8 million from the Pioneer Power acquisition, as well as an increase in GCR organic revenue of $4.0 million.
Current wording
•GCR revenue increased by $36.6 million, or 84.7%, primarily due to a $23.5 million increase in GCR organic revenue, as well as an increase in GCR acquisition-related revenue of approximately $13.1 million attributable to the 1901 acquisition.
Previous wording
•SG&A expense increased $3.1 million, or 5.8%, due to $1.3 million of SG&A expenses associated with the Pioneer Power acquisition. Acquisition-related SG&A represents SG&A expenses incurred by an acquired business during the twelve-month period following its respective acquisition date. After such period, the results of acquired businesses are included within the Company’s organic operations, and period-over-period changes are discussed on a combined basis. The increase in organic SG&A expense was approximately $1.8 million, primarily due to a $1.8 million increase in payroll related expenses and a $0.7 million increase in stock-based compensation expense, partially offset by a $0.7 million decrease in professional services related expenses. As a percentage of revenue, SG&A expense decreased to 18.0% from 19.3% in the prior-year period.
Current wording
•SG&A expense increased $6.3 million, or 22.1%, which included approximately $1.2 million of aggregate SG&A expenses associated with the 1901 and CYMCOR acquisitions. Acquisition-related SG&A represents SG&A expenses incurred by an acquired business during the twelve-month period following its respective acquisition date. After such period, the results of acquired businesses are included within the Company’s organic operations, and period-over-period changes are discussed on a combined basis. The increase in organic SG&A expense was approximately $5.1 million, primarily driven by a $2.8 million increase in professional services expense due to the 1901 and CYMCOR acquisitions and a $2.7 million increase in payroll-related expenses, partially offset by a $0.4 million decrease in stock-based compensation expense.
Previous wording
Acquisition-related retention and contingent consideration expenses were $0.2 million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, these expenses included approximately $0.1 million of acquisition-related retention expense associated with the Pioneer Power acquisition. In connection with the acquisition, the Company entered into retention agreements with certain key employees of the acquired business. Retention compensation expense is recognized ratably over the requisite service period, which extends through December 2027, and is contingent upon continued employment.
Current wording
Acquisition-related retention and contingent consideration expenses were $0.6 million for both the three months ended September 30, 2026 and 2025, respectively. For the three months ended September 30, 2026 and 2025, these expenses included approximately $0.4 million and $0.3 million, respectively, of aggregate acquisition-related retention expense associated with the Pioneer Power, 1901 and CYMCOR acquisitions. In connection with these acquisitions, the Company entered into retention agreements with certain key employees of the acquired businesses. Retention-related compensation is contingent on continued employment and is recognized as expense ratably over the respective required service periods.
Previous wording
The Company also recognized a $0.1 million increase in the fair value of contingent consideration during the three months ended June 30, 2026, compared to a $0.8 million increase during the three months ended June 30, 2025. Changes in the fair value of contingent consideration represent non-cash expenses and were primarily attributable to updates in the estimated probability of achieving the gross profit targets underlying the related earnout arrangements.
Current wording
The Company also recognized a $0.2 million increase in the fair value of contingent consideration during the three months ended September 30, 2026, compared to a $0.3 million increase during the three months ended September 30, 2025. Changes in the fair value of contingent consideration represent non-cash expenses and were primarily attributable to updates in the estimated probability of achieving the gross profit targets underlying the related earnout arrangements.
Previous wording
The Company recorded an income tax provision of $1.8 million for the three months ended June 30, 2026 compared to $3.0 million for the three months ended June 30, 2025. The effective tax rate was 27.9% for both the three months ended June 30, 2026 and 2025, respectively. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate period-over-period was primarily due to state income taxes, tax credits, other permanent adjustments and discrete tax items. See Note 10 – Income Taxes in the accompanying notes to the Company’s condensed consolidated financial statements for additional information.
Current wording
The Company recorded an income tax provision of $4.3 million for the three months ended September 30, 2026 compared to $3.8 million for the three months ended September 30, 2025. The effective tax rate was 31.5% and 30.0% for the three months ended September 30, 2026 and 2025, respectively. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate period-over-period was primarily due to state income taxes, tax credits, other permanent adjustments and discrete tax items. See Note 10 – Income Taxes in the accompanying notes to the Company’s condensed consolidated financial statements for additional information.
Previous wording
Comparison of Results of Operations for the six months ended June 30, 2026 and 2025
Current wording
Comparison of Results of Operations for the nine months ended September 30, 2026 and 2025
Previous wording
The following table presents operating results for the six months ended June 30, 2026 and 2025 in dollars and expressed as a percentage of total revenue (except as indicated below), as compared below:
Current wording
The following table presents operating results for the nine months ended September 30, 2026 and 2025 in dollars and expressed as a percentage of total revenue (except as indicated below), as compared below:
Previous wording
(3)Included within selling, general and administrative expenses was $3.9 million and $3.2 million of non-cash stock-based compensation expense for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(3)Included within selling, general and administrative expenses was $5.5 million and $5.2 million of non-cash stock-based compensation expense for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
•Total revenue increased by $31.2 million, or 21.9%, primarily due to the acquisition of Pioneer Power, which contributed $30.9 million of revenue from acquired operations during the three months ended June 30, 2026. Acquisition-related revenue represents revenue generated by an acquired business during the twelve-month period following its acquisition date. Thereafter, the results of an acquired business are included within the Company’s organic operations, and period-over-period changes are discussed on a combined basis.
Current wording
•Total revenue increased by $82.8 million, or 18.0%, primarily due to the acquisitions of Pioneer Power, 1901 and CYMCOR, which collectively contributed $73.8 million during the nine months ended September 30, 2026. Acquisition-related revenue represents revenue generated by an acquired business during the twelve-month period following its acquisition date. Thereafter, the acquired business is included within the Company's organic operations and period-over-period changes are discussed on a combined basis. For the nine months ended September 30, 2026, acquisition-related revenue included Pioneer Power’s revenue from January 1, 2026 through June 30, 2026, and revenue from 1901 and CYMCOR from their respective acquisition dates through September 30, 2026.
Previous wording
Revenue generated from the Company’s organic operations increased slightly by $0.3 million, or 0.2%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The Company expects the timing of project commencements and execution within its existing backlog, together with currently expected future bookings, to support organic revenue growth during the remainder of 2026.
Current wording
Revenue generated from the Company’s organic operations increased by $9.1 million for the nine months ended September 30, 2026. The Company’s organic revenue growth was driven by project commencements and execution within its existing backlog. The Company expects to continue executing on its existing backlog, together with new bookings, to support further organic revenue growth during the remainder of 2026.
Previous wording
•Gross profit margin was also negatively impacted by lower net project write-ups compared to the prior year period and competition for skilled labor and materials associated with construction activity in data center markets. The Company expects gross profit margins to improve during the remainder of 2026; however, margins are expected to remain below the levels achieved during the comparable periods of 2025.
Current wording
•Gross profit margin was also impacted by lower net project write-ups compared to the prior year period and competition for skilled labor and materials associated with construction activity in data center markets. The Company currently expects gross profit margins to improve during the remainder of 2026; nevertheless they are expected to remain below the levels achieved during the comparable periods of 2025.
Previous wording
The Company recorded revisions in its contract estimates for certain ODR and GCR projects; however, the Company did not record any material gross profit write-ups or write-downs that had a net gross profit impact of $1.0 million or more during the six months ended June 30, 2026 and 2025.
Current wording
The Company recorded revisions in its contract estimates for certain ODR and GCR projects; however, the Company did not record any material gross profit write-ups or write-downs that had a net gross profit impact of $1.0 million or more during the nine months ended September 30, 2026 and 2025.
Previous wording
•SG&A expense increased $1.5 million, or 5.6%, primarily due to $0.7 million of SG&A expenses associated with the Pioneer Power acquisition. Acquisition-related SG&A represents SG&A expenses incurred by an acquired business during the twelve-month period following its respective acquisition date. After such period, the results of acquired businesses are included within the Company’s organic operations, and period-over-period changes are discussed on a combined basis. The increase in organic SG&A expense was approximately $0.8 million, primarily due to a $0.6 million increase in total stock-based compensation and payroll related expenses. As a percentage of revenue, SG&A expense decreased to 16.2% from 18.7% in the prior-year period.
Current wording
•SG&A expense increased $9.3 million, or 11.5%, which included approximately $2.9 million of aggregate SG&A expenses associated with the Pioneer Power, 1901 and CYMCOR acquisitions. Acquisition-related SG&A represents SG&A expenses incurred by an acquired business during the twelve-month period following its respective acquisition date. After such period, the results of acquired businesses are included within the Company’s organic operations, and period-over-period changes are discussed on a combined basis. The increase in organic SG&A expense was approximately $6.4 million, primarily due to a $4.0 million increase in payroll-related expense and a $2.0 million increase in professional services expense due to the 1901 and CYMCOR acquisitions. The remaining increase was due to various items, none of which was individually material.
Previous wording
Acquisition-related retention and contingent consideration expenses were $0.4 million and $1.2 million for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, these expenses included approximately $0.2 million of acquisition-related retention expense associated with the Pioneer Power acquisition. In connection with the acquisition, the Company entered into retention agreements with certain key employees of the acquired business. Retention compensation expense is recognized ratably over the requisite service period, which extends through December 2027, and is contingent upon continued employment.
Current wording
Acquisition-related retention and contingent consideration expenses were $0.9 million and $1.8 million for the nine months ended September 30, 2026 and 2025, respectively. Such expenses included approximately $0.6 million and $0.3 million, respectively, of aggregate acquisition-related retention expense associated with the Pioneer Power, 1901 and CYMCOR acquisitions. In connection with these acquisitions, the Company entered into retention agreements with certain key employees of the acquired businesses. Retention-related compensation is contingent on continued employment and is recognized as expense ratably over the respective required service periods.
Previous wording
In addition, the Company recognized a $0.2 million increase in the fair value of contingent consideration during the six months ended June 30, 2026, compared to a $1.2 million increase during the six months ended June 30, 2025. Changes in the fair value of contingent consideration represent non-cash expenses and were primarily attributable to updates in the estimated probability of achieving the gross profit targets underlying the related earnout arrangements.
Current wording
In addition, the Company recognized a $0.3 million increase in the fair value of contingent consideration during the nine months ended September 30, 2026, compared to a $1.5 million increase during the nine months ended September 30, 2025. Changes in the fair value of contingent consideration represent non-cash expenses and were primarily attributable to updates to the estimated probability of achieving the gross profit targets underlying the related earnout arrangements.
Previous wording
•Interest expense increased $0.4 million in the period-to-period comparison primarily due to higher average borrowings under the Company’s revolving credit facility and increased financing costs associated with a larger vehicle fleet compared to the prior-year period.
Current wording
•Interest expense increased $0.4 million in the period-to-period comparison primarily due to higher average borrowings under the Company’s credit facility and increased financing costs associated with a larger vehicle fleet compared to the prior-year period.
Previous wording
See Note 6 – Debt in the accompanying notes to the Company’s condensed consolidated financial statements for further information.
Current wording
•The Company also recognized a $0.3 million loss on early debt extinguishment, reflecting the write-off of unamortized debt issuance costs and other fees associated with the termination of its former credit facility with Wintrust, compared to no such loss in the prior-year period. See Note 6 – Debt in the accompanying notes to the Company’s condensed consolidated financial statements for additional information.
Previous wording
The Company recorded an income tax benefit of $1.8 million for the six months ended June 30, 2026 compared to an income tax provision of $0.8 million for the six months ended June 30, 2025. The effective tax rate was (24.9)% and 4.2% for the six months ended June 30, 2026 and 2025, respectively. The Company’s effective tax rate differed from the U.S. federal statutory tax rate in each period primarily due to state income taxes, federal tax credits, other permanent adjustments and discrete excess tax benefits related to RSU vestings recognized during the first quarter of each year. See Note 10 – Income Taxes in the accompanying notes to the Company’s condensed consolidated financial statements for additional information.
Current wording
The Company recorded an income tax provision of $2.5 million for the nine months ended September 30, 2026 compared to $4.5 million for the nine months ended September 30, 2025. The effective tax rate was 11.9% and 14.5% for the nine months ended September 30, 2026 and 2025, respectively. The Company’s effective tax rate differed from the U.S. federal statutory tax rate in each period primarily due to state income taxes, federal tax credits, other permanent items and discrete excess tax benefits related to RSU vesting activity recognized during the first quarter of each year. See Note 10 – Income Taxes in the accompanying notes to the Company’s condensed consolidated financial statements for additional information.
Previous wording
The Company refers to its estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue it had recognized under such contracts, as “backlog.” Backlog includes unexercised contract options. The Company’s backlog includes projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. Additionally, the difference between the Company’s backlog and remaining performance obligations is due to the portion of unexercised contract options that are excluded, under certain contract types, from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. While backlog provides a measure of work expected to be performed in future periods, it is not necessarily a reliable indicator of future revenue or overall performance of the Company. A substantial portion of the Company’s contracts, particularly within its ODR operations, are short-cycle in nature and may be awarded and substantially completed within a short period following award. These projects typically have short lead times and rapid burn rates and, as a result, are generally not included in reported backlog. Consequently, fluctuations in reported backlog may not correlate with changes in overall market demand, revenue generation, or operational performance. Additional information related to the Company’s remaining performance obligations is provided in Note 4 – Revenue from Contracts with Customers in the accompanying notes to its condensed consolidated financial statements.
Current wording
The Company refers to its estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue previously recognized under such contracts, as “backlog.” Backlog includes unexercised contract options. The Company’s backlog includes projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. Additionally, the difference between the Company’s backlog and remaining performance obligations is due to the portion of unexercised contract options that are excluded, under certain contract types, from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. While backlog provides a measure of work expected to be performed in future periods, it is not necessarily a reliable indicator of future revenue or overall performance of the Company.
Previous wording
The Company’s ODR backlog was $283.6 million and $255.8 million as of June 30, 2026 and December 31, 2025, respectively. These amounts reflect unrecognized revenue expected to be recognized over the remaining terms of its construction-type and service contracts. Based on historical trends, the Company currently estimates that 68% of its ODR backlog as of June 30, 2026 will be recognized as revenue over the remainder of 2026. The Company’s ODR backlog increased due to its continued focus on the accelerated growth of its ODR business.
Current wording
The Company’s ODR backlog was $313.4 million and $255.8 million as of September 30, 2026 and December 31, 2025, respectively. These amounts reflect unrecognized revenue expected to be recognized over the remaining terms of its construction-type and service contracts. Based on historical trends, the Company currently estimates that 44% of its ODR backlog as of September 30, 2026 will be recognized as revenue over the remainder of 2026. The Company’s ODR backlog increased due to its continued growth in the Company's ODR business and the acquisitions of CYMCOR and 1901, which collectively contributed $33.2 million to ODR backlog as of September 30, 2026.
Previous wording
The Company’s GCR backlog was $200.1 million and $141.8 million as of June 30, 2026 and December 31, 2025, respectively. Projects are brought into backlog once the Company has been provided a written confirmation of award and the contract value has been established. At any point in time, the Company has a substantial volume of projects that are specifically identified and advanced in negotiations and/or documentation, however those projects are not booked as backlog until the Company has received written confirmation from the owner or the general contractor / construction manager of their intention to award the contract and they have directed the Company to begin engineering, designing, incurring construction labor costs or procuring needed equipment and material. The Company’s GCR projects tend to be built over a 12- to 24-month schedule depending upon scope and complexity. Most major projects have a preconstruction planning phase, which may require months of planning before actual construction commences. The Company is occasionally employed to deliver a “fast-track” project, where construction commences as the preconstruction planning work continues. As work on the Company’s projects progress, it increases or decreases backlog to take into account its estimate of the effects of changes in estimated quantities, changes in conditions, change orders and other variations from initially anticipated contract revenue, and the percentage of completion of the Company’s work on the projects. Based on historical trends, the Company currently estimates that 57% of its GCR backlog as of June 30, 2026 will be recognized as revenue over the remainder of 2026. Additionally, the reduction in GCR backlog has been intentional as the Company focuses on higher margin projects than it has done historically, as well as its focus on smaller, higher margin owner direct projects.
Current wording
The Company’s GCR backlog was $366.1 million and $141.8 million as of September 30, 2026 and December 31, 2025, respectively. Projects are brought into backlog once the Company has been provided a written confirmation of award and the contract value has been established. At any point in time, the Company has a substantial volume of projects that are specifically identified and advanced in negotiations and/or documentation, however those projects are not booked as backlog until the Company has received written confirmation from the owner or the general contractor / construction manager of their intention to award the contract and they have directed the Company to begin engineering, designing, incurring construction labor costs or procuring needed equipment and material. The Company’s GCR projects tend to be built over a 12- to 24-month schedule depending upon scope and complexity. Most major projects have a preconstruction planning phase, which may require months of planning before actual construction commences. The Company is occasionally employed to deliver a “fast-track” project, where construction commences as the preconstruction planning work continues. As work on the Company’s projects progress, it increases or decreases backlog to take into account its estimate of the effects of changes in estimated quantities, changes in conditions, change orders and other variations from initially anticipated contract revenue, and the percentage of completion of the Company’s work on the projects. Based on historical trends, the Company currently estimates that 31% of its GCR backlog as of September 30, 2026 will be recognized as revenue over the remainder of 2026. Additionally, the increase in GCR backlog was attributable to new project awards and the acquisition of 1901, which contributed $75.3 million to GCR backlog as of September 30, 2026.
Previous wording
Building on this foundation, the Company intends to expand its business while generating strong cash flow, enhancing the durability of its earnings and delivering attractive returns over time. The Company’s strategy is centered on building enterprise scale through vertical market diversification, expanding its geographic reach and leveraging an integrated operating model designed to strengthen its competitive advantages as the business grows. For information on the Company’s prior strategic initiatives, see Part I, Item 1, “Business,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
Building on this foundation, the Company intends to expand its business while generating strong cash flow, enhancing the durability of its earnings and delivering attractive returns over time. The Company’s strategy is centered on building enterprise scale through vertical market diversification, expanding its geographic reach and leveraging an integrated operating model designed to strengthen its competitive advantages as the business grows. For additional information regarding the Company’s prior strategic initiatives, see Part I, Item 1, “Business,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
The prices of key inputs used in the Company’s projects and service operations, including steel, pipe, copper, and certain equipment and components, remain subject to volatility, including increases driven by inflation, tariffs, supply constraints, and price escalation. These factors can, at times, be material to the Company’s results of operations and financial condition, particularly on fixed-price projects and where equipment lead times extend beyond procurement windows. During the six months ended June 30, 2026, the Company continued to experience selective pricing pressure and extended lead times for certain materials and equipment, although such impacts were not material to its consolidated results of operations or financial condition.
Current wording
The prices of key inputs used in the Company’s projects and service operations, including steel, pipe, copper, and certain equipment and components, remain subject to volatility, including increases driven by inflation, tariffs, supply constraints, and price escalation. These factors can, at times, be material to the Company’s results of operations and financial condition, particularly on fixed-price projects and where equipment lead times extend beyond procurement windows. During the nine months ended September 30, 2026, the Company continued to experience selective pricing pressure and extended lead times for certain materials and equipment, although such impacts were not material to its consolidated results of operations or financial condition.
Previous wording
The Company's cash flows are primarily impacted period to period by fluctuations in working capital. Factors such as the Company's contract mix, commercial terms, days sales outstanding (“DSO”) and delays in the start of projects may impact its working capital. In line with industry practice, the Company accumulates costs during a given month and then bills those costs in the current month for many of its contracts. While labor costs associated with these contracts are paid weekly and salary costs associated with the contracts are paid bi-monthly, certain subcontractor costs are generally not paid until the Company receives payment from its customers (contractual “pay-if-paid” terms). The Company has not historically experienced a large volume of write-offs related to its receivables and contract assets. The Company regularly assesses its receivables for collectability and provides allowances for credit losses where appropriate. The Company believes that its reserves for its expected credit losses are appropriate as of June 30, 2026 and December 31, 2025, but adverse changes in the economic environment may impact certain of its customers’ ability to access capital and compensate the Company for its services, as well as impact project activity for the foreseeable future.
Current wording
The Company's cash flows are primarily impacted period to period by fluctuations in working capital. Factors such as the Company's contract mix, commercial terms, days sales outstanding (“DSO”) and delays in the start of projects may impact its working capital. In line with industry practice, the Company accumulates costs during a given month and then bills those costs in the current month for many of its contracts. While labor costs associated with these contracts are paid weekly and salary costs associated with the contracts are paid semi-monthly, certain subcontractor costs are generally not paid until the Company receives payment from its customers (contractual “pay-if-paid” terms). The Company has not historically experienced a large volume of write-offs related to its receivables and contract assets. The Company regularly assesses its receivables for collectability and provides allowances for credit losses where appropriate. The Company believes that its reserves for its expected credit losses are appropriate as of September 30, 2026 and December 31, 2025, but adverse changes in the economic environment may impact certain of its customers’ ability to access capital and compensate the Company for its services, as well as impact project activity for the foreseeable future.
Previous wording
The Company's existing current backlog is projected to support a portion of forecasted revenue for one year from the date of the financial statement issuance. In addition to the Company's backlog, the Company has a substantial amount of contracts with short lead times that book-and-bill within the same reporting period and are not included in backlog. The Company's current cash balance, together with the cash it expects to generate from future operations along with borrowings available under its credit facility, are expected to be sufficient to finance its short- and long-term capital requirements (or meet working capital requirements) for at least the next twelve months. In addition to the future operating cash flows of the Company, along with its existing borrowing availability and access to financial markets, the Company currently believes it will be able to meet any working capital and future operating requirements, and capital investment forecast opportunities for at least the next twelve months.
Current wording
The Company's existing backlog is projected to support a portion of forecasted revenue for one year from the date of the financial statement issuance. In addition to the Company's backlog, the Company has a substantial amount of contracts with short lead times that book-and-bill within the same reporting period and are not included in backlog. The Company's current cash balance, together with the cash it expects to generate from future operations along with borrowings available under its credit facility, are expected to be sufficient to finance its short- and long-term capital requirements (or meet working capital requirements) for at least the next twelve months. In addition to the future operating cash flows of the Company, along with its existing borrowing availability and access to financial markets, the Company currently believes it will be able to meet any working capital and future operating requirements, and capital investment forecast opportunities for at least the next twelve months.
Previous wording
(1)Represents non-cash activity associated with depreciation and amortization, provision for credit losses, non-cash stock-based compensation expense, operating lease expense, amortization of debt issuance costs, deferred income tax provision, gain or loss on sale of property and equipment, acquisition-related retention expense and contingent consideration and changes in the fair value of the Company's interest rate swap.
Current wording
(1)Represents non-cash activity associated with depreciation and amortization, provision for credit losses, non-cash stock-based compensation expense, operating lease expense, amortization of debt issuance costs, deferred income tax provision, gain or loss on sale of property and equipment, acquisition-related retention expense and contingent consideration, loss on early debt extinguishment and changes in the fair value of the Company's interest rate swap.
Previous wording
(2)The Company refined the presentation of contract-related balances within operating activities of the consolidated statements of cash flows. Changes in contract assets and contract liabilities are now presented on a net basis, rather than as separate line items, to align with the Company’s presentation of net contract positions. Prior-period amounts have been conformed for comparability, where applicable. This presentation change did not impact net cash provided by operating activities.
Current wording
The Company refined the presentation of contract-related balances within operating activities by presenting changes in contract assets and contract liabilities on a net basis, rather than as separate line items, to align with the presentation of net contract positions.
Previous wording
During the six months ended June 30, 2026, the Company generated $10.9 million in cash from its operating activities, which consisted of non-cash adjustments of $13.3 million and net income of $9.1 million, partly offset by cash used in working capital of $11.5 million. During the six months ended June 30, 2025, the Company generated $4.2 million from its operating activities, which consisted of net income of $18.0 million and certain non-cash adjustments of $14.1 million, partly offset by cash used in working capital of $27.9 million.
Current wording
During the nine months ended September 30, 2026, the Company generated $31.2 million in cash from its operating activities, which consisted of non-cash adjustments of $26.8 million and net income of $18.6 million, partly offset by cash used in working capital of $14.2 million. During the nine months ended September 30, 2025, the Company generated $17.6 million in cash from its operating activities, which consisted of net income of $26.8 million and certain non-cash adjustments of $24.1 million, partly offset by cash used in working capital of $33.3 million.
Previous wording
The change in operating cash flows during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily attributable to a $26.7 million favorable change in contract assets and contract liabilities, net, reflecting the timing of billings, collections and other working capital activity. In addition, there was a $11.6 million favorable change in accounts payable, including retainage, and a $10.5 million favorable change in accrued expenses and other current liabilities due to the timing of payments. These cash inflows were partially offset by a $22.8 million unfavorable change in accounts receivable due to the timing of cash collections, an $8.8 million decrease in net income and a $6.4 million unfavorable change in other current assets.
Current wording
The change in operating cash flows during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily attributable to a $17.2 million favorable change in contract assets and contract liabilities, net, reflecting the timing of billings, collections and other working capital activity. In addition, there was a $12.5 million favorable change in accounts payable, including retainage, and a $3.5 million favorable change in accrued expenses and other current liabilities due to the timing of payments. These cash inflows were partially offset by a $10.4 million unfavorable change in accounts receivable due to the timing of cash collections, a $8.2 million decrease in net income and a $2.7 million unfavorable change due to increased acquisition-related earnout payments compared to the prior-year period.
Previous wording
Cash flows used in investing activities were $0.7 million and $2.2 million for the six months ended June 30, 2026 and 2025, respectively. Cash used in investing activities for the six months ended June 30, 2026 included a cash outflow of $1.0 million related to the purchase of property and equipment, partially offset by $0.4 million in proceeds from the sale of property and equipment. Cash used in investing activities for the six months ended June 30, 2025 included a cash outflow of $3.1 million related to the purchase of property and equipment, which was primarily associated with the purchase of certain rental equipment to expand customer offerings. These cash outflows were partially offset by $0.9 million in proceeds from the sale of property and equipment.
Current wording
Cash flows used in investing activities were $96.9 million and $67.9 million for the nine months ended September 30, 2026 and 2025, respectively. Cash used in investing activities for the nine months ended September 30, 2026 included cash outflows of $66.0 million and $29.9 million associated with the 1901 Transaction and CYMCOR Transaction, respectively, net of cash acquired, and $1.8 million related to the purchase of property and equipment, partially offset by $0.7 million in proceeds from the sale of property and equipment. Cash used in investing activities for the nine months ended September 30, 2025 included a cash outflow of $65.7 million associated with the Pioneer Power Transaction, net of cash acquired, and a cash outflow of $3.6 million related to the purchase of property and equipment, which was primarily associated with the purchase of certain rental equipment to expand customer offerings. These cash outflows were partially offset by $1.3 million in proceeds from the sale of property and equipment.
Previous wording
Aside from the rental equipment purchases in 2025, the majority of the Company's cash used for investing activities in both periods was for capital additions pertaining to tools and equipment, computer software and hardware purchases, office furniture and office related leasehold improvements.
Current wording
Aside from the rental equipment purchases in 2025, the majority of the Company's net cash used in purchases of property plant and equipment in both periods was for capital additions pertaining to tools and equipment, computer software and hardware purchases, office furniture and office related leasehold improvements.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•As a percentage of revenue, SG&A expense decreased to 15.0% from 15.3% in the prior-year period.
Current report — wording carried from elsewhere
•As a percentage of revenue, SG&A expense decreased to 16.7% from 17.7% in the prior-year period.
Current report — wording carried from elsewhere
A substantial portion of the Company’s contracts, particularly within its ODR operations, are short-cycle in nature and may be awarded and substantially completed within a short period following award. These projects typically have short lead times and rapid burn rates and, as a result, are generally not included in reported backlog. Consequently, fluctuations in reported backlog may not correlate with changes in overall market demand, revenue generation, or operational performance. Additional information related to the Company’s remaining performance obligations is provided in Note 4 – Revenue from Contracts with Customers in the accompanying notes to its condensed consolidated financial statements.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•Interest expense increased $0.2 million primarily due to higher average borrowings under the Company’s revolving credit facility and increased financing costs associated with a larger vehicle fleet compared to the prior-year period.
Previous report — wording carried elsewhere
•Interest income decreased $0.3 million primarily due to lower average cash and cash equivalent balances and reduced yields on invested balances compared to the prior-year period.
Previous report — wording carried elsewhere
•Gross profit margin was also negatively impacted by lower net project write-ups compared to the prior year period and competition for skilled labor and materials associated with construction activity in data center markets. The Company expects gross profit margins to improve during the remainder of 2026; however, margins are expected to remain below the levels achieved during the comparable periods of 2025.