Everus Construction Group, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 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 6, 2026
ECG$76.60+5.7%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 2026-08-05.
0002015845-26-000050
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0002015845-26-000061
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 197 previous paragraphs and 220 current paragraphs.
101 unchanged; 76 reworded; 42 added; 20 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 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 (42)
Current report
In particular, we currently generate a significant portion of our revenues from data center and other similar high tech and advanced technology contracts and our revenue mix has changed significantly in the last couple of years. Demand in these markets may fluctuate based on customer procurement and deployment schedules, information technology spending, timing of hyperscale infrastructure investments, timing of new technology deployments, budgets and pace of their AI-related infrastructure investments, timing of our customers’ monetization of AI investments, or customer access to capital. We have not experienced, but may in the future be, adversely affected by reduced, delayed, loss of or canceled projects by one or more of them, including large hyperscale data center companies.
Current report
The regulatory and legislative landscape surrounding data center development is evolving rapidly, and we are monitoring increased scrutiny and potential regulation in the near and long term. Any such developments could potentially result in adverse effects on our operations, financial condition, cash flows and stock price in ways that are difficult to predict.
Current report
Selling, general and administrative expenses (“SG&A”) for the three months ended September 30, 2026, were $80.7 million, an increase of $28.9 million, or 55.8%, from $51.8 million for the three months ended September 30, 2025. The increase was primarily driven by higher incentive compensation of $13.4 million, primarily resulting from increased business performance, acquisition-related costs of $6.7 million in the current period, and higher amortization expenses of $5.7 million from the 2026 completed acquisitions.
Current report
Increase in Fair Value of Contingent Consideration
Current report
The increase in fair value of contingent consideration for the three months ended September 30, 2026, was $1.9 million. The contingent consideration liability relates to the potential SE&M earn-out payment and is remeasured to fair value at each reporting date. The increase was due to an updated forecast and expected achievement of the financial earn-out target, along with the time value of money. As no contingent consideration arrangements existed during 2025, no corresponding expense was recognized in the prior-year period.
Current report
Other income, net for the three months ended September 30, 2026, was $0.2 million, a decrease of $3.5 million, or 94.6%, from $3.7 million for the three months ended September 30, 2025. Other income, net decreased primarily due to higher miscellaneous income activities in 2025, including settlements, as well as $0.8 million of foreign currency transaction losses in 2026. There was no activity in 2025 related to foreign currency transaction gains or losses.
Current report
Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025
Current report
Operating revenues for the nine months ended September 30, 2026, were $3.65 billion, an increase of $917.8 million, or 33.6%, from $2.73 billion for the nine months ended September 30, 2025. E&M revenues grew $852.1 million, or 40.0%, including 2026 completed acquisitions contributing $77.1 million. T&D revenues increased $66.6 million, or 10.7%. See “Segment Results of Operations–Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025” for further comparative analysis of segment revenues for the periods indicated.
Current report
Gross profit for the nine months ended September 30, 2026, was $518.6 million, an increase of $182.0 million, or 54.1%, from $336.6 million for the nine months ended September 30, 2025. The increase was primarily due to continued revenue growth and gross margin improvement due to increased workloads, solid project execution and project timing. As mentioned above, we recognized a $7.6 million net benefit related to a dispute resolution on prior billings from a customer. Gross margin increased to 14.2% for the nine months ended September 30, 2026, compared to 12.3% for the nine months ended September 30, 2025.
Current report
SG&A expenses for the nine months ended September 30, 2026, were $204.8 million, an increase of $64.1 million, or 45.6%, from $140.7 million for the nine months ended September 30, 2025. The increase was driven primarily by higher incentive compensation of $28.2 million, primarily resulting from increased business performance, acquisition-related costs of $10.2 million in the current period, higher amortization expenses of $8.9 million from the 2026 completed acquisitions, and increased labor costs, excluding incentive compensation, of $8.4 million to support continued operational growth.
Current report
Increase in Fair Value of Contingent Consideration
Current report
The increase in fair value of contingent consideration for the nine months ended September 30, 2026, was $1.9 million. The contingent consideration liability relates to the potential SE&M earn-out payment and is remeasured to fair value at each reporting date. The increase was due to an updated forecast and expected achievement of the financial earn-out target, along with the time value of money. As no contingent consideration arrangements existed during 2025, no corresponding expense was recognized in the prior-year period.
Current report
Other income, net for the nine months ended September 30, 2026, was $2.2 million, a decrease of $4.0 million, or 64.5%, from $6.2 million for the nine months ended September 30, 2025. Other income, net decreased primarily due to higher miscellaneous income activities in 2025, including settlements, as well as $0.8 million of foreign currency transaction losses in 2026. There was no activity in 2025 related to foreign currency transaction gains or losses.
Current report
Income from equity method investments for the nine months ended September 30, 2026, was $8.5 million, a decrease of $3.1 million, or 26.7%, from $11.6 million for the nine months ended September 30, 2025. This decrease primarily related to certain joint venture project completions in 2025, resulting in decreased activity on joint ventures during the current period.
Current report
•Renewables revenues declined $11.9 million, reflecting decreased activity in the generation and commercial submarkets.
Current report
For the three months ended September 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 5.7% of E&M revenues, compared to 5.0% of E&M revenues for the three months ended September 30, 2025. However, these changes in estimates unfavorably accounted for approximately 0.4% of E&M revenues for the three months ended September 30, 2026, compared to 1.2% of E&M revenues for the three months ended September 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Current report
The increase in Corporate and Other costs during the three months ended September 30, 2026 was primarily due to acquisition-related costs of $6.7 million and increased labor, including incentive compensation, of $1.5 million, partially offset by reduced corporate overhead of $1.2 million.
Current report
Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025
Current report
•Renewables revenues declined $12.3 million, reflecting decreased project activity within the generation and commercial submarkets.
Current report
For the nine months ended September 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 5.7% of E&M revenues, compared to 3.7% of E&M revenues for the nine months ended September 30, 2025. However, these changes in estimates unfavorably accounted for approximately 0.4% of E&M revenues for the nine months ended September 30, 2026, compared to 0.7% of E&M revenues for the nine months ended September 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Current report
For the nine months ended September 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 3.4% of T&D revenues, compared to 1.0% of T&D revenues for the nine months ended September 30, 2025. However, these changes in estimates unfavorably accounted for approximately 1.8% of T&D revenues for the nine months ended September 30, 2026, compared to 0.2% of T&D revenues for the nine months ended September 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Current report
On September 1, 2026, we completed the acquisition of Epsilon for initial base consideration of $295 million, subject to certain closing adjustments, funded through a combination of borrowings under the Credit Agreement (defined below) and cash on hand.
Current report
On September 1, 2026, we entered into a First Amendment (the “First Amendment”) to the Original Credit Agreement (together with the First Amendment, the "Credit Agreement"). Pursuant to the First Amendment, the Original Credit Agreement was amended to, among other things, (a) refinance the Original Term Loan outstanding, together with interest, under the Original Credit Agreement in full; (b) increase the Original Term Loan outstanding by an aggregate principal amount of $200.0 million for a total aggregate principal amount of $477.5 million (the "2026 Refinancing Term Loan"); (c) refinance the Original Revolving Credit Commitments outstanding under the Original Credit Agreement in full; and (d) increase the Original Revolving Credit Commitments by an additional $125.0 million for a total aggregate commitment of $350.0 million (the "2026 Refinancing Revolving Credit Commitments"). Any outstanding portion of the $50.0 million aggregate letter-of-credit sublimit under the Original Revolving Credit Commitments will be deemed outstanding under the 2026 Refinancing Revolving Credit Commitments.
Current report
The proceeds from the 2026 Refinancing Term Loan were made available to us, (a) to refinance the Original Term Loan, (b) to fund the Epsilon acquisition, (c) to pay fees and expenses related thereto and (d) for working capital and other general corporate purposes.
Current report
In connection with the First Amendment, we repaid and immediately re-borrowed the outstanding term loan amount of $277.5 million as part of the refinance and also drew $100.0 million under the 2026 Refinancing Revolving Credit Commitments, which was still outstanding as of September 30, 2026.
Current report
The proceeds of any borrowings under the 2026 Refinancing Credit Commitments are expected to be used by us for general corporate purposes, including the Epsilon acquisition, acquisitions, restricted payments and other permitted investments, and/or for other purpose not prohibited by the Credit Agreement.
Current report
In connection with the First Amendment, the Company paid certain customary fees.
Current report
As a result of the Credit Agreement activity disclosed above, we had $471.5 million outstanding under the 2026 Refinancing Term Loan and $247.8 million of available capacity under the 2026 Refinancing Revolving Credit Commitments, net of $100.0 million of outstanding commitments and $2.2 million of outstanding standby letters of credit, respectively, as of September 30, 2026.
Current report
The Original Term Loan required quarterly amortization payments of 1.25% of the aggregate initial principal amount of the Original Term Loan on the last business day of each fiscal quarter starting with the fiscal quarter ending on March 31, 2025 and through and including the last full fiscal quarter ending prior to the maturity date, or 5.00% per annum.
Current report
The 2026 Refinancing Term Loan requires quarterly amortization payments of 1.25% of the aggregate initial principal amount of the 2026 Refinancing Term Loan on the last business day of each fiscal quarter starting with the fiscal quarter ending on September 30, 2026 and through and including the last full fiscal quarter ending prior to the maturity date, or 5.00% per annum.
Current report
For the nine months ended September 30, 2026 and 2025, we paid our required quarterly amortization payments under the Original Term Loan and the 2026 Refinancing Term Loan totaling $13.5 million and $11.3 million, respectively.
Current report
We also paid $10.9 million and $14.5 million of associated interest on outstanding borrowings under the Original Term Loan and the 2026 Refinancing Term Loan for the nine months ended September 30, 2026 and 2025, respectively.
Current report
The Credit Agreement also requires mandatory prepayments in connection with certain asset sales, subject to certain exceptions.
Current report
The Credit Agreement provides for incremental revolving and term facilities at our request and at the discretion of the lenders or other persons providing such incremental facilities, and also permits us to incur other secured or unsecured debt, in all cases subject to conditions and limitations on the amount of such incremental facility or other debt as specified in the Credit Agreement.
Current report
The Credit Agreement contains certain limitations with respect to indebtedness, liens, acquisitions and other investments, fundamental changes, restrictive agreements, dividends and redemptions or repurchases of stock, prepayments of certain subordinated indebtedness, dispositions of assets and transactions with affiliates, in each case subject to certain exceptions.
Current report
Cash provided by financing activities totaled $257.2 million for the nine months ended September 30, 2026, compared to cash used in financing activities of $11.8 million for the nine months ended September 30, 2025, an increase in cash for financing activities of $269.0 million. The increase in cash for financing activities was primarily the result of the First Amendment to the Credit Agreement entered into in the third quarter of 2026, whereby we refinanced the term loan debt and increased the amount outstanding by $200.0 million. In addition, we borrowed $100.0 million under the revolving credit commitments during 2026, with no such activity occurring in 2025. These increases in cash were partially offset by a $22.3 million repayment of long-term debt that was assumed through acquisition and and increase of $2.2 million in quarterly amortization payments on the term loan.
Current report
As of September 30, 2026, the Company’s material cash requirements were as follows:
Current report
Represents borrowings outstanding under the 2026 Refinancing Term Loan. Unamortized debt issuance costs are excluded from the table.
Current report
Represents the estimated interest payments associated with the 2026 Refinancing Term Loan, assuming current interest rates and amounts outstanding as of September 30, 2026, until respective maturity date over the periods indicated in the table above.
Current report
Revolving credit commitments by nature do not have contractual maturity. The estimated interest payments and the unused commitment fees assuming current interest rates and $100.0 million outstanding under the 2026 Refinancing Revolving Credit Commitments would equal $6.4 million on an annualized basis.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
NM - Not Meaningful
Previous report
Selling, general and administrative expenses (“SG&A”) for the three months ended June 30, 2026, were $71.2 million, an increase of $23.8 million, or 50.2%, from $47.4 million for the three months ended June 30, 2025. The increase was primarily driven by higher labor expenses of $14.6 million, to support the operational growth and performance of the business, higher amortization expenses of $3.2 million from the SE&M acquisition and higher business development expenses of $1.2 million, along with higher other SG&A expenses of $4.8 million including higher office including higher insurance, rent, and office expenses.
Previous report
Other income, net for the three months ended June 30, 2026, was $1.5 million, a decrease of $0.4 million, or 21.1%, from $1.9 million for the three months ended June 30, 2025. Other income, net contained miscellaneous income and expense activities, including rebates and bank fees.
Previous report
Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025
Previous report
Operating revenues for the six months ended June 30, 2026, were $2.27 billion, an increase of $520.4 million, or 29.8%, from $1.75 billion for the six months ended June 30, 2025. E&M revenues grew $483.6 million, or 35.5%, with SE&M contributing $33.4 million. T&D revenues increased $34.5 million, or 8.7%. See “Segment Results of Operations–Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025” for further comparative analysis of segment revenues for the periods indicated.
Previous report
Gross profit for the six months ended June 30, 2026, was $313.7 million, an increase of $101.3 million, or 47.7%, from $212.4 million for the six months ended June 30, 2025. The increase was primarily due to continued revenue growth from increased workloads, project timing and efficient project execution, partially offset by changes in project mix. Gross margin improved to 13.8% for the six months ended June 30, 2026, compared to 12.2% for the six months ended June 30, 2025.
Previous report
SG&A expenses for the six months ended June 30, 2026, were $124.2 million, an increase of $35.3 million, or 39.7%, from $88.9 million for the six months ended June 30, 2025. The increase was driven primarily by higher labor of $20.5 million, to support operational growth and performance of the business, higher business development expenses of $3.6 million, higher amortization expenses of $3.1 million largely from the SE&M acquisition, higher net credit loss expenses of $2.1 million, higher insurance expenses of $1.9 million and higher other SG&A expenses of $5.8 million, including higher insurance, rent, and office expenses, partially offset by lower professional service-related expenses of $1.7 million.
Previous report
Other income, net for the six months ended June 30, 2026, was $2.1 million, a decrease of $0.4 million, or 16.0%, from $2.5 million for the six months ended June 30, 2025. Other income, net contained miscellaneous income and expense activities, including rebates and bank fees.
Previous report
Income from equity method investments for the six months ended June 30, 2026, was $5.9 million, consistent with $6.0 million for the six months ended June 30, 2025.
Previous report
•Renewables revenues decreased $3.1 million, reflecting decreased commercial submarket activity.
Previous report
For the three months ended June 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 7.8% of E&M revenues, compared to 7.0% of E&M revenues for the three months ended June 30, 2025. However, these changes in estimates unfavorably accounted for approximately 0.9% of E&M revenues for the three months ended June 30, 2026, compared to 1.9% of E&M revenues for the three months ended June 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Previous report
Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025
Previous report
•Renewables revenues were largely flat, with decreased project activity within the generation submarket, offset by higher project activity in the commercial submarket due to the timing of projects.
Previous report
For the six months ended June 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 6.3% of E&M revenues, compared to 5.3% of E&M revenues for the six months ended June 30, 2025. However, these changes in estimates unfavorably accounted for approximately 0.6% of E&M revenues for the six months ended June 30, 2026, compared to 1.3% of E&M revenues for the six months ended June 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Previous report
For the six months ended June 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 4.3% of T&D revenues, compared to 5.3% of T&D revenues for the six months ended June 30, 2025. However, these changes in estimates unfavorably accounted for approximately 1.3% of T&D revenues for the six months ended June 30, 2026, compared to 1.9% of T&D revenues for the six months ended June 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Previous report
The increase in Corporate and Other costs during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to higher labor expenses of $4.8 million, to support the operational growth and performance of the business, higher business development expenses of $3.6 million, along with higher other SG&A expenses of $1.9 million, including higher insurance and office expenses.
Previous report
On July 31, 2026, we entered into a definitive agreement to acquire Epsilon Industries, a premier designer and manufacturer of complex, modular mechanical and electrical building infrastructure systems, for $295 million in cash, subject to customary adjustments. The acquisition is expected to be funded through a combination of cash on hand and borrowings under the Credit Agreement (defined below). The transaction is expected to close later this year, subject to regulatory approvals and other customary closing conditions.
Previous report
The Term Loan requires quarterly amortization payments of 5.00% per annum of the original principal amount thereof. We repaid our required quarterly amortization payments totaling $7.5 million of the Term Loan during each of the six months ended June 30, 2026 and 2025.
Previous report
Cash used in financing activities totaled$10.5 million forthe six months ended June 30, 2026, compared to$8.1 million forthe six months ended June 30, 2025, an increase in cash used in financing activities of $2.4 million. Theincrease in cash used in fina ncing activities was primarily the result of higher cash outflows related to the tax withholding on stock-based compensation.
Previous report
Intangible Assets
Reworded paragraphs (76)
Previous wording
Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those factors discussed in the following and elsewhere in this Quarterly Report, particularly in the section entitled “Cautionary Note Regarding Forward-Looking Statements.” Refer to the section titled “Item 1A. Risk Factors” included in our 2025 Annual Report on Form 10-K (“2025 Annual Report”) for more information concerning our risk factors. References to the “Company,” “Everus,” “we,” “us,” and “our” refer to Everus Construction Group, Inc. and its consolidated subsidiaries, unless otherwise stated or indicated by context.
Current wording
Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those factors discussed in the following and elsewhere in this Quarterly Report, particularly in the section entitled “Cautionary Note Regarding Forward-Looking Statements.” Refer to the section titled “Item 1A. Risk Factors” in this Quarterly Report, as well as in our 2025 Annual Report on Form 10-K (“2025 Annual Report”) for more information concerning our risk factors. References to the “Company,” “Everus,” “we,” “us,” and “our” refer to Everus Construction Group, Inc. and its consolidated subsidiaries, unless otherwise stated or indicated by context.
Previous wording
The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in any forward-looking statements we make are based on reasonable assumptions as of the date they are made, we can give no assurance that the expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under “Item 1A. Risk Factors” in our 2025 Annual Report.
Current wording
The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in any forward-looking statements we make are based on reasonable assumptions as of the date they are made, we can give no assurance that the expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under “Item 1A. Risk Factors” in this Quarterly Report and in our 2025 Annual Report.
Previous wording
We are a leading construction solutions provider offering specialty contracting services to a diverse set of end markets, which are provided to commercial, industrial, institutional, renewables, service, transportation, utility and other customers. We operate throughout most of the United States through two reportable, operating segments:
Current wording
We are a leading construction solutions provider offering specialty contracting services to a diverse set of end markets, which are provided to commercial, industrial, institutional, renewables, service, transportation, utility and other customers. We operate throughout most of the United States and in parts of Canada through two reportable, operating segments:
Previous wording
We focus on safely executing projects; providing a superior return on investment by building new and strengthening existing customer relationships; ensuring quality service; effectively managing costs; retaining, developing and recruiting talented employees; growing through organic and strategic acquisition opportunities; and focusing efforts on projects that will permit higher margins while properly managing risk. The growth we have experienced in recent years is due in part to the project awards in the end markets and submarkets served and the ability to support national customers in most of the regions in which we operate. Our strong presence in the Western, Midwestern and Eastern regions of the United States has driven opportunities in data center, high tech, hospitality and utilities work, while customer expansion nationwide continues to extend our reach through partnerships through our 16 wholly owned operating companies, including SE&M, which was acquired on April 1, 2026. SE&M expands our geographic footprint in the Southeast region of the United States.
Current wording
We focus on safely executing projects; providing a superior return on investment by building new and strengthening existing customer relationships; ensuring quality service; effectively managing costs; retaining, developing and recruiting talented employees; growing through organic and strategic acquisition opportunities; and focusing efforts on projects that will permit higher margins while properly managing risk. The growth we have experienced in recent years is due in part to the project awards in the end markets and submarkets served and the ability to support national customers in most of the regions in which we operate. Our strong presence in the Western, Midwestern and Eastern regions of the United States has driven opportunities in data center, high tech, hospitality and utilities work, while customer expansion nationwide continues to extend our reach through partnerships through our 17 wholly owned operating companies, including SE&M and Epsilon, which were acquired during the nine months ended September 30, 2026, expanding our geographic footprint in the Northeast and Southeast regions of the United States and Canada.
Previous wording
In particular, we currently generate a significant portion of our revenues from data center and other similar high tech and advanced technology contracts and our revenue mix has changed significantly in the last couple of years. Data center capacity and load growth, as well as other advanced technology growth, creates tremendous opportunities, but also presents risks and challenges for us and our customers. While we believe there is still strong demand for these types of projects in the foreseeable future, we cannot guarantee that will be the case. The loss of, or reduction in business from, these types of contracts could have a material adverse effect on our business, financial condition, results of operations and cash flows. For more information on the associated risks, see the discussion under “Item 1A. Risk Factors” in our 2025 Annual Report.
Current wording
While we believe there is still strong demand for these types of projects in the foreseeable future, we cannot guarantee that will be the case. The loss of, or reduction in business from, these types of contracts could have a material adverse effect on our business, financial condition, results of operations, cash flows and stock price. For more information on the associated risks, see the discussion under “Item 1A. Risk Factors” in our 2025 Annual Report.
Previous wording
We have experienced increased insurance costs and anticipate continued increases in insurance costs. Premiums in the insurance industry have risen due to many factors, such as economic inflation and a rise in insurance carriers’ losses, in particular for wildfire risks. We experienced these aforementioned impacts with coverage for our insurance lines on a standalone basis following the Separation and again saw increases in insurance costs during our latest renewal cycle, partially due to our revenue growth during 2025 at the time of renewal. However, we are continuing to formulate strategies to minimize these costs and/or ensuring these costs are built into our bidding opportunities going forward.
Current wording
We have experienced increased insurance costs and anticipate continued increases in insurance costs. Premiums in the insurance industry have risen due to many factors, such as economic inflation and a rise in insurance carriers’ losses, in particular for auto and wildfire risks. We experienced these aforementioned impacts with coverage for our insurance lines on a standalone basis following the Separation and again saw increases in insurance costs during our latest renewal cycle, partially due to our continued revenue and operational growth during 2026 at the time of renewal. However, we are continuing to formulate strategies to minimize these costs and/or ensuring these costs are built into our bidding opportunities going forward.
Previous wording
Operating revenues for the three months ended June 30, 2026, were $1.23 billion, an increase of $310.1 million, or 33.7%, from $921.5 million for the three months ended June 30, 2025. E&M revenues rose $296.7 million, or 41.6%, with SE&M contributing $33.4 million. T&D revenues increased $15.1 million, or 7.1%. See Segment Results of Operations–Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025 for further comparative analysis of segment revenues for the periods indicated.
Current wording
Operating revenues for the three months ended September 30, 2026, were $1.38 billion, an increase of $397.4 million, or 40.3%, from $986.8 million for the three months ended September 30, 2025. E&M revenues rose $368.4 million, or 48.0%, including 2026 completed acquisitions contributing $43.7 million. T&D revenues increased $32.2 million, or 14.4%. See Segment Results of Operations–Three Months Ended September 30, 2026, Compared to Three Months Ended September 30, 2025 for further comparative analysis of segment revenues for the periods indicated.
Previous wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted revenues and accounted for approximately 6.2% of revenues for the three months ended June 30, 2026, compared to 5.3% of revenues for the three months ended June 30, 2025.
Current wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted revenues and accounted for approximately 6.0% of revenues for the three months ended September 30, 2026, compared to 5.2% of revenues for the three months ended September 30, 2025.
Previous wording
For the three months ended June 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 7.5% of revenues, compared to 7.2% of revenues for the three months ended June 30, 2025. Favorable impacts to revenues were primarily due to labor efficiencies and favorable impacts from projected cost changes, including material costs, project risk mitigation and change orders. However, these changes in estimates unfavorably accounted for approximately 1.3% of revenues for the three months ended June 30, 2026, compared to 1.9% of revenues for the three months ended June 30, 2025. Unfavorable impacts to revenues were primarily due to labor inefficiencies related to sequencing on projects and unfavorable impacts from project delays and cost overruns.
Current wording
For the three months ended September 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 7.8% of revenues, compared to 7.1% of revenues for the three months ended September 30, 2025. Favorable impacts to revenues were primarily due to labor efficiencies and favorable impacts from projected cost changes, including material costs, project risk mitigation and change orders. As part of the favorable changes in estimates, we recognized a $7.6 million net benefit from a resolution on prior billings from a customer. However, these changes in estimates unfavorably accounted for approximately 1.8% of revenues for the three months ended September 30, 2026, compared to 1.9% of revenues for the three months ended September 30, 2025. Unfavorable impacts to revenues were primarily due to labor inefficiencies related to sequencing on projects and unfavorable impacts from project delays and cost overruns.
Previous wording
Cost of sales for the three months ended June 30, 2026, was $1,048.6 million, an increase of $247.0 million, or 30.8%, from $801.6 million for the three months ended June 30, 2025. This increase primarily related to higher E&M and T&D operating costs due to increased workloads and changes in project mix, partially offset by efficient project execution. Labor, material, subcontractor, and equipment and tools costs increased $110.5 million, $67.2 million, $30.3 million and $18.0 million, respectively, along with higher other job expenses of $21.0 million.
Current wording
Cost of sales for the three months ended September 30, 2026, was $1.18 billion, an increase of $316.6 million, or 36.7%, from $862.6 million for the three months ended September 30, 2025. This increase primarily related to higher E&M and T&D operating costs due to increased workloads and changes in project mix, partially offset by efficient project execution. Labor, materials, subcontractors, and equipment and tools costs increased $143.4 million, $71.4 million, $47.7 million and $38.0 million, respectively, along with higher other job expenses of $16.1 million.
Previous wording
Gross profit for the three months ended June 30, 2026, was $183.0 million, an increase of $63.1 million, or 52.6%, from $119.9 million for the three months ended June 30, 2025. The increase was primarily from revenue growth and gross margin expansion due to workloads, project timing and efficient project execution, partially offset by changes in project mix. Gross margin increased to 14.9% for the three months ended June 30, 2026, compared to 13.0% for the three months ended June 30, 2025.
Current wording
Gross profit for the three months ended September 30, 2026, was $205.0 million, an increase of $80.8 million, or 65.1%, from $124.2 million for the three months ended September 30, 2025. The increase was primarily from revenue growth and gross margin improvement due to increased workloads, solid project execution and project timing. As mentioned above, we recognized a $7.6 million net benefit related to a dispute resolution on prior billings from a customer. Gross margin increased to 14.8% for the three months ended September 30, 2026, compared to 12.6% for the three months ended September 30, 2025.
Previous wording
Operating income for the three months ended June 30, 2026, was $111.8 million, an increase of $39.3 million, or 54.2%, from $72.5 million for the three months ended June 30, 2025. The increase was primarily driven by increased gross profit, partially offset by increased SG&A expenses, both of which are discussed above. Operating income margin increased to 9.1% for the three months ended June 30, 2026, compared to 7.9% for the three months ended June 30, 2025. See Segment Results of Operations–Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025 for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.
Current wording
Operating income for the three months ended September 30, 2026, was $122.4 million, an increase of $50.0 million, or 69.1%, from $72.4 million for the three months ended September 30, 2025. The increase was primarily driven by increased gross profit, partially offset by increased SG&A expenses, both of which are discussed above. Operating income margin increased to 8.8% for the three months ended September 30, 2026, compared to 7.3% for the three months ended September 30, 2025. See Segment Results of Operations–Three Months Ended September 30, 2026, Compared to Three Months Ended September 30, 2025 for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.
Previous wording
Interest income for the three months ended June 30, 2026 was $1.3 million, an increase of $0.7 million, from $0.6 million for the three months ended June 30, 2025. The increase was primarily driven by increased interest income of$0.6 million from our central cash management program, including daily cash sweep and money market deposit account programs, as well as $0.1 million of earned interest income from our captive insurance arrangementfor thethree months ended June 30, 2026.
Current wording
Interest income for the three months ended September 30, 2026 was $2.2 million, an increase of $0.9 million, or 69.2%, from $1.3 million for the three months ended September 30, 2025. The increase was primarily driven by increased interest income of$0.8 million from our central cash management program, including daily cash sweep and money market deposit account programs, as well as increased interest income of $0.1 million from our captive insurance arrangement.
Previous wording
Interest expense for the three months ended June 30, 2026, was $4.6 million, a decrease of $0.8 million, or 14.8%, from $5.4 million for the three months ended June 30, 2025. The decrease was primarily related to lower debt balances under the Term Loan (as defined below) and average lower interest rates during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Current wording
Interest expense for the three months ended September 30, 2026, was $6.1 million, an increase of $0.7 million, or 13.0%, from $5.4 million for the three months ended September 30, 2025. The increase is primarily related to higher debt balances under the 2026 Refinancing Term Loan and 2026 Refinancing Revolving Credit Commitments (defined below), partially offset by reduced borrowings under the Original Term Loan (defined below) for the first two months of the current quarter before refinancing and lower average interest rates during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Previous wording
Income taxes for the three months ended June 30, 2026, were $29.4 million, an increase of $10.0 million, or 51.5%, from $19.4 million for the three months ended June 30, 2025, reflecting higher income taxes from greater pretax income for the period. The effective tax rate was 25.9% for the three months ended June 30, 2026, compared to 26.9% for the three months ended June 30, 2025.
Current wording
Income taxes for the three months ended September 30, 2026, were $29.4 million, an increase of $8.8 million, or 42.7%, from $20.6 million for the three months ended September 30, 2025, primarily due to greater pretax income for the period, partially offset by a decrease in the effective tax rate for the current period. The effective tax rate was 24.2% for the three months ended September 30, 2026, compared to 26.6% for the three months ended September 30, 2025.
Previous wording
Income from equity method investments for the three months ended June 30, 2026, was $3.3 million, an increase of $0.7 million, or 26.9%, from $2.6 million for the three months ended June 30, 2025. This increase primarily related to increased activity on joint ventures during the period.
Current wording
Income from equity method investments for the three months ended September 30, 2026, was $2.6 million, a decrease of $3.0 million, or 53.6%, from $5.6 million for the three months ended September 30, 2025. This decrease primarily related to certain joint venture project completions in 2025, resulting in decreased activity on joint ventures during the current period.
Previous wording
Net income for the three months ended June 30, 2026, was $83.9 million, an increase of $31.1 million, or 58.9%, from $52.8 million for the three months ended June 30, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses and higher income taxes on greater pretax income. Net income margin increased to 6.8% for the three months ended June 30, 2026, compared to 5.7% for the three months ended June 30, 2025.
Current wording
Net income for the three months ended September 30, 2026, was $91.9 million, an increase of $34.9 million, or 61.2%, from $57.0 million for the three months ended September 30, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses, higher income taxes on greater pretax income, and lower other income. Net income margin increased to 6.6% for the three months ended September 30, 2026, compared to 5.8% for the three months ended September 30, 2025.
Previous wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted revenues and accounted for approximately 5.1% of revenues for the six months ended June 30, 2026, compared to 4.2% of revenues for the six months ended June 30, 2025.
Current wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted revenues and accounted for approximately 4.6% of revenues for the nine months ended September 30, 2026, compared to 3.7% of revenues for the nine months ended September 30, 2025.
Previous wording
For the six months ended June 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 5.9% of revenues, compared to 5.4% of revenues for the six months ended June 30, 2025. Favorable impacts to revenues were primarily due to labor efficiencies and favorable impacts from projected cost changes, including material costs, project risk mitigation and change orders. However, these changes in estimates unfavorably accounted for approximately 0.8% of revenues for the six months ended June 30, 2026, compared to 1.2% of revenues for the six months ended June 30, 2025. Unfavorable impacts to revenues were primarily due to labor inefficiencies related to sequencing on projects and unfavorable impacts from project delays and cost overruns.
Current wording
For the nine months ended September 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 5.3% of revenues, compared to 4.6% of revenues for the nine months ended September 30, 2025. Favorable impacts to revenues were primarily due to labor efficiencies and favorable impacts from projected cost changes, including material costs, project risk mitigation and change orders. As part of the favorable changes in estimates during the current period, we recognized a $7.6 million net benefit from a resolution on prior billings from a customer. However, these changes in estimates unfavorably accounted for approximately 0.7% of revenues for the nine months ended September 30, 2026, compared to 0.9% of revenues for the nine months ended September 30, 2025. Unfavorable impacts to revenues were primarily due to labor inefficiencies related to sequencing on projects and unfavorable impacts from project delays and cost overruns.
Previous wording
Cost of sales for the six months ended June 30, 2026, was $1.95 billion, an increase of $419.1 million, or 27.3%, from $1.54 billion for the six months ended June 30, 2025. This increase primarily related to higher E&M and T&D operating costs due to increased workloads and changes in project mix, partially offset by efficient project execution. Labor, material, subcontractor, and equipment and tools costs increased $163.2 million, $102.4 million, $90.4 million, and $36.0 million, respectively, along with higher other job expenses of $27.1 million.
Current wording
Cost of sales for the nine months ended September 30, 2026, was $3.13 billion, an increase of $735.8 million, or 30.7%, from $2.40 billion for the nine months ended September 30, 2025. This increase primarily related to higher E&M and T&D operating costs due to increased workloads and changes in project mix, partially offset by efficient project execution. Labor, materials, subcontractors, and equipment and tools costs increased $306.6 million, $173.7 million, $138.1 million, and $74.0 million, respectively, along with higher other job expenses of $43.4 million.
Previous wording
Operating income for the six months ended June 30, 2026 was $189.5 million, an increase of $66.0 million, or 53.4%, from $123.5 million for the six months ended June 30, 2025. The increase was primarily driven by increased gross profit, partially offset by increased SG&A expenses, both of which are discussed above. Operating income margin increased to 8.4% for the six months ended June 30, 2026, compared to 7.1% for the six months ended June 30, 2025. See “Segment Results of Operations–Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025” for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.
Current wording
Operating income for the nine months ended September 30, 2026 was $311.9 million, an increase of $116.0 million, or 59.2%, from $195.9 million for the nine months ended September 30, 2025. The increase was primarily driven by increased gross profit, partially offset by increased SG&A expenses, both of which are discussed above. Operating income margin increased to 8.5% for the nine months ended September 30, 2026, compared to 7.2% for the nine months ended September 30, 2025. See “Segment Results of Operations–Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025” for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.
Previous wording
Interest income for the six months ended June 30, 2026 was $3.6 million, an increase of$2.1 million, from$1.5 million forthe six months ended June 30, 2025. The increase was primarily driven by increased interest income of $1.9 million from our central cash management program, including daily cash sweep and money market deposit account programs, as well as $0.2 million of earned interest income from our captive insurance arrangement for thesix months ended June 30, 2026.
Current wording
Interest income for the nine months ended September 30, 2026 was $5.9 million, an increase of$3.1 million, from$2.8 million forthe nine months ended September 30, 2025. The increase was primarily driven by increased interest income of $2.9 million from our central cash management program, including daily cash sweep and money market deposit account programs, as well as increased interest income of $0.2 million from our captive insurance arrangement.
Previous wording
Interest expense for the six months ended June 30, 2026, was $9.2 million, a decrease of $1.8 million, or 16.4%, from $11.0 million for the six months ended June 30, 2025. The decrease is primarily related to average lower debt balances under the Term Loan and average lower interest rates during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current wording
Interest expense for the nine months ended September 30, 2026, was $15.4 million, a decrease of $1.0 million, or 6.1%, from $16.4 million for the nine months ended September 30, 2025. The decrease during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, is primarily related to reduced borrowings under the Original Term Loan (defined below) for approximately eight months of the current-year period, and average lower interest rates, partially offset by September borrowings under the 2026 Refinancing Term Loan and 2026 Refinancing Revolving Credit Commitments (defined below).
Previous wording
Income taxes for the six months ended June 30, 2026, were $49.7 million, an increase of $16.7 million, or 50.6%, from $33.0 million for the six months ended June 30, 2025, reflecting higher income taxes from greater pretax income for the period. The effective tax rate was 25.9% for the six months ended June 30, 2026, compared to 26.9% for the six months ended June 30, 2025.
Current wording
Income taxes for the nine months ended September 30, 2026, were $79.0 million, an increase of $25.4 million, or 47.4%, from $53.6 million for the nine months ended September 30, 2025, primarily due to greater pretax income for the period, partially offset by a decrease in the effective tax rate for the current period. The effective tax rate was 25.2% for the nine months ended September 30, 2026, compared to 26.8% for the nine months ended September 30, 2025.
Previous wording
Net income for the six months ended June 30, 2026, was $142.2 million, an increase of $52.7 million, or 58.9%, from $89.5 million for the six months ended June 30, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses and higher income taxes on greater pretax income. Net income margin increased to 6.3% for the six months ended June 30, 2026, compared to 5.1% for the six months ended June 30, 2025.
Current wording
Net income for the nine months ended September 30, 2026, was $234.1 million, an increase of $87.6 million, or 59.8%, from $146.5 million for the nine months ended September 30, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses and higher income taxes on greater pretax income. Net income margin increased to 6.4% for the nine months ended September 30, 2026, compared to 5.4% for the nine months ended September 30, 2025.
Previous wording
E&M segment revenues for the three months ended June 30, 2026, were $1,010.3 million, an increase of $296.7 million, or 41.6%, from $713.6 million for the three months ended June 30, 2025. The increase was primarily driven by higher workloads in the commercial and industrial end markets, particularly continued growth in the data center submarket, partially offset by lower institutional end market activity. SE&M contributed $33.4 million for the three months ended June 30, 2026.
Current wording
E&M segment revenues for the three months ended September 30, 2026, were $1.14 billion, an increase of $368.4 million, or 48.0%, from $767.3 million for the three months ended September 30, 2025. The increase in revenues was primarily driven by higher revenues in the commercial and industrial end markets, particularly continued growth in the data center and high-tech submarkets, partially offset by lower revenues in the renewables end market. For the three months ended September 30, 2026, 2026 completed acquisitions contributed $43.7 million to E&M segment revenues.
Previous wording
•Commercial revenues grew $245.4 million, primarily from higher data center and hospitality submarket activity due to increased workloads from increased demand for services, partially offset by lower project activity in the commercial submarket.
Current wording
•Commercial revenues grew $290.7 million, primarily from higher data center and hospitality submarket activity due to increased workloads from continued increased demand for services.
Previous wording
•Industrial revenues increased $70.4 million, primarily due to increased activity in the high tech and manufacturing submarkets.
Current wording
•Industrial revenues increased $98.7 million, primarily due to increased activity in the high tech and manufacturing submarkets.
Previous wording
•Institutional revenues declined $61.0 million, from lower project activity due to project timing and decreased demand for services in the education, government and healthcare submarkets.
Current wording
•Institutional revenues declined $3.8 million, primarily from lower project activity in the education submarket due to project timing and decreased demand for services, partially offset by increased activity in the healthcare and low voltage submarkets.
Previous wording
•Service & other had higher revenues of $3.5 million, as a result of increased repair and maintenance demand.
Current wording
•Service & other revenues declined $5.3 million, as a result of lower repair and maintenance demand.
Previous wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted E&M revenues and accounted for approximately 6.9% of E&M revenues for the three months ended June 30, 2026, compared to 5.1% of E&M revenues for the three months ended June 30, 2025.
Current wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted E&M revenues and accounted for approximately 5.3% of E&M revenues for the three months ended September 30, 2026, compared to 3.8% of E&M revenues for the three months ended September 30, 2025.
Previous wording
T&D segment revenues for the three months ended June 30, 2026, were $227.5 million, an increase of $15.1 million, or 7.1%, from $212.4 million for the three months ended June 30, 2025. The increase was driven by higher utility end-market revenues, partially offset by lower workloads in the transportation end market.
Current wording
T&D segment revenues for the three months ended September 30, 2026, were $255.6 million, an increase of $32.2 million, or 14.4%, from $223.4 million for the three months ended September 30, 2025. The increase was driven by higher utility end-market revenues, partially offset by lower workloads in the transportation end market.
Previous wording
•Utility revenues increased $20.1 million, primarily from increased project activity across several submarkets, particularly distribution and transmission, partially offset by decreased submarket activity in the gas submarket due to the timing of project availability.
Current wording
•Utility revenues increased $41.4 million, primarily from increased project activity across several submarkets, particularly transmission, distribution, underground, and rentals.
Previous wording
•Transportation revenues decreased $5.0 million, with reduced project activity in the traffic signalization and street lighting submarkets.
Current wording
•Transportation revenues declined $9.2 million, with reduced project activity in the traffic signalization submarket, partially offset by marginal increase in street lighting submarket activity.
Previous wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted T&D revenues and accounted for approximately 2.6% of T&D revenues for the three months ended June 30, 2026, compared to 5.8% of T&D revenues for the three months ended June 30, 2025.
Current wording
Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted T&D revenues and accounted for approximately 1.6% of T&D revenues for the three months ended September 30, 2026, compared to 1.4% of T&D revenues for the three months ended September 30, 2025.
Previous wording
For the three months ended June 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 5.9% of T&D revenues, compared to 7.6% of T&D revenues for the three months ended June 30, 2025. However, these changes in estimates unfavorably accounted for approximately 3.3% of T&D revenues for the three months ended June 30, 2026, compared to 1.8% of T&D revenues for the three months ended June 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Current wording
For the three months ended September 30, 2026, the changes in estimates mentioned above favorably accounted for approximately 3.4% of T&D revenues, compared to 2.0% of T&D revenues for the three months ended September 30, 2025. However, these changes in estimates unfavorably accounted for approximately 1.8% of T&D revenues for the three months ended September 30, 2026, compared to 0.6% of T&D revenues for the three months ended September 30, 2025. The primary drivers of favorable and unfavorable impacts to revenues were previously mentioned in the consolidated results of operations sections above.
Previous wording
E&M segment operating income for the three months ended June 30, 2026, was $100.5 million, an increase of $41.3 million, or 69.8%, from $59.2 million for the three months ended June 30, 2025. The increase was primarily from E&M segment revenue growth and higher gross profit across multiple end markets, particularly commercial, institutional and service & other, due to increased workloads, project timing and efficiency gains on certain projects, partially offset by changes in project mix. E&M gross margin increased to 14.5% for the three months ended June 30, 2026, compared to 12.0% for the three months ended June 30, 2025.
Current wording
E&M segment operating income for the three months ended September 30, 2026, was $109.1 million, an increase of $52.1 million, or 91.4%, from $57.0 million for the three months ended September 30, 2025. The increase was primarily from E&M segment revenue growth and higher gross profit across commercial and institutional end markets, due to increased workloads, project timing and project execution. E&M gross margin increased to 14.3% for the three months ended September 30, 2026, compared to 11.2% for the three months ended September 30, 2025.
Previous wording
Operating income was also impacted by higher SG&A expenses primarily from increased labor expenses of $11.6 million, to support the operational growth and performance of the business, higher amortization expenses of $3.2 million from the SE&M acquisition and higher other SG&A expenses of $5.0 million. Operating income margin for our E&M segment increased to 9.9% for the three months ended June 30, 2026 compared to 8.3% for the three months ended June 30, 2025.
Current wording
Operating income was also impacted by higher SG&A expenses primarily from higher incentive compensation of $12.9 million, primarily resulting from increased segment performance, and higher amortization expenses of $5.7 million from 2026 completed acquisitions. Operating income margin for our E&M segment increased to 9.6% for the three months ended September 30, 2026 compared to 7.4% for the three months ended September 30, 2025.
Previous wording
T&D segment operating income for the three months ended June 30, 2026, was $25.8 million, an increase of $2.1 million, or 8.9%, from $23.7 million for the three months ended June 30, 2025. The increase was the result of higher gross profit in the utility end market due to efficient project execution and project mix, partially offset by lower gross profit in the transportation end market. T&D gross margin decreased to 15.8% for the three months ended June 30, 2026, compared to 16.1% for the three months ended June 30, 2025.
Current wording
T&D segment operating income for the three months ended September 30, 2026, was $30.9 million, an increase of $3.4 million, or 12.4%, from $27.5 million for the three months ended September 30, 2025. The increase was the result of higher gross profit in the utility end market from higher revenues and efficient project execution, partially offset by lower gross profit in the transportation end market caused by lower revenues and reduced gross margin. T&D gross margin decreased to 16.3% for the three months ended September 30, 2026, from 16.9% for the three months ended September 30, 2025.
Previous wording
SG&A expenses remained relatively consistent period over period, primarily from decreased professional service-related expenses of $0.8 million, partially offset by higher other general SG&A expenses of $0.4 million. Operating income margin for our T&D segment increased to 11.3% for the three months ended June 30, 2026, compared to 11.1% for the three months ended June 30, 2025.
Current wording
SG&A expenses remained relatively consistent period over period, primarily from increased other general expenses of $0.5 million and professional-related services of $0.3 million, partially offset by decreased corporate overhead of $0.4 million. Operating income margin for our T&D segment modestly declined to 12.1% for the three months ended September 30, 2026, compared to 12.3% for the three months ended September 30, 2025.
Showing the first 40 of 76 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The typical payment billing terms are due within 30 days but may differ depending on contract terms. Retention on receivables can impact the cash collection cycle beyond expenses incurred. The timing of billings and project completions can contribute to changes in unbilled revenue. As of September 30, 2026, we expect that substantially all unbilled receivables will be billed to customers in the normal course of business within the next 12 months.