What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-30 compared with 2026-04-29 · 142 added, 96 removed, 172 unchanged (58% of the section changed)

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Business of our Form 10-K for the year ended December 31, 2025.

The following table presents selected financial data for the quarters ended March 31, 2026 and 2025 (in thousands, except for percentages and per share data):

The following table presents selected financial data for the quarters ended June 30, 2026 and 2025 (in thousands, except for percentages and per share data):

For the three months ended

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Diluted earnings per common share $ 9.06 $ 6.72

Revenues of $4.63 billion for the quarter ended March 31, 2026 set a quarterly record for the Company and represent an increase of 19.7% from revenues of $3.87 billion for the quarter ended March 31, 2025.

Revenues of $5.15 billion for the quarter ended June 30, 2026 set a quarterly record for the Company and represent an increase of 19.8% from revenues of $4.30 billion for the quarter ended June 30, 2025.

Demand for our services continues to be broad-based with strength across most of the market sectors we serve.

As described in further detail below, we experienced revenue growth within all of our reportable segments.

Revenues for the first quarter of 2026 included incremental acquisition contribution of $234.1 million.

For the quarter ended March 31, 2026, operating income was $403.8 million, or 8.7% of revenues, establishing new records for the Company with respect to a first quarter.

This compares to operating income of $318.8 million, or 8.2% of revenues, for the quarter ended March 31, 2025.

As described in further detail below, the increases in both operating income and operating margin were due to the revenue growth we experienced in the quarter, which led to greater gross profit and a reduction in the ratio of selling, general and administrative expenses to revenues.

Operating income for the quarter ended March 31, 2026 included incremental acquisition contribution of $20.6 million, net of amortization expense attributable to identifiable intangible assets of $8.8 million.

Net income of $305.5 million, or $6.84 per diluted share, for the quarter ended March 31, 2026 compares favorably to net income of $240.7 million, or $5.26 per diluted share, for the quarter ended March 31, 2025.

While the majority of the increase in our net income and diluted earnings per share was a result of the increased operating income referenced above, diluted earnings per share for the quarter ended March 31, 2026 additionally benefited from a reduced weighted average share count given the impact of common stock repurchases made by us throughout 2025 and the first quarter of 2026.

Revenues for the second quarter of 2026 included incremental acquisition contribution of $169.2 million.

For the quarter ended June 30, 2026, operating income was $547.3 million, or 10.6% of revenues, establishing new records for the Company with respect to a second quarter.

This compares to operating income of $415.2 million, or 9.6% of revenues, for the quarter ended June 30, 2025.

As described in further detail below, in addition to the impact of the revenue growth we experienced in the quarter, our operating performance benefited from an increase in consolidated gross profit margin as well as a reduction in the ratio of selling, general and administrative expenses to revenues.

Operating income for the quarter ended June 30, 2026 included incremental acquisition contribution of $13.9 million, net of amortization expense attributable to identifiable intangible assets of $5.6 million.

Net income of $403.7 million, or $9.06 per diluted share, for the quarter ended June 30, 2026 compares favorably to net income of $302.2 million, or $6.72 per diluted share, for the quarter ended June 30, 2025.

While the majority of the increase in our net income and diluted earnings per share was a result of the increased operating income referenced above, diluted earnings per share for the quarter ended June 30, 2026 additionally benefited from a reduced weighted average share count given the impact of common stock repurchases made by us throughout 2025 and the first half of 2026.

Impact of Acquisitions

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These amounts reflect the acquired companies’ operating results in the current reported period only for the time period these entities were not owned by EMCOR in the comparable prior reported period.

During the first quarter of 2026, we acquired a company for an immaterial amount.

During the first half of 2026, we acquired four companies for upfront consideration of $99.8 million.

On February 3, 2025, we completed the acquisition of Miller Electric Company (“Miller Electric”), a leading electrical contractor, for total cash consideration of $876.8 million.

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Results of Operations

The following table presents our operating segment revenues from unrelated entities and their respective percentages of total revenues (in thousands, except for percentages):

For the three months ended March 31,

The following tables present our operating segment revenues from unrelated entities and their respective percentages of total revenues (in thousands, except for percentages):

For the three months ended June 30,

Total 2025 % of

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$ 5,154,892 100 % $ 4,304,400 100 %

As described in more detail below, as a result of strong demand for our services across most of the market sectors we serve, consolidated revenues for the first quarter of 2026 increased to $4.63 billion compared to consolidated revenues of $3.87 billion for the first quarter of 2025.

Revenues for the first quarter of 2026 included incremental acquisition contribution of $234.1 million.

Revenues of our United States electrical construction and facilities services segment were $1.45 billion for the three months ended March 31, 2026, a $359.6 million increase compared to revenues of $1.09 billion for the three months ended March 31, 2025.

This segment’s results included $110.4 million of incremental acquisition revenues.

Such increased revenues were generated from the majority of the market sectors we serve.

For the six months ended June 30,

Total 2025 % of

United States electrical construction and facilities services $ 3,109,915 32 % $ 2,428,091 29 %

United States mechanical construction and facilities services 4,327,214 44 % 3,327,860 41 %

United States building services 1,610,355 16 % 1,535,882 19 %

United States industrial services 735,641 8 % 640,074 8 %

Total United States operations 9,783,125 100 % 7,931,907 97 %

United Kingdom building services — — % 239,865 3 %

Consolidated revenues

$ 9,783,125 100 % $ 8,171,772 100 %

As described in more detail below, as a result of strong demand for our services across most of the market sectors we serve, our consolidated revenues for the three months ended June 30, 2026 increased to $5.15 billion compared to consolidated revenues of $4.30 billion for the three months ended June 30, 2025, and our consolidated revenues for the six months ended June 30, 2026 increased to $9.78 billion compared to consolidated revenues of $8.17 billion for the six months ended June 30, 2025.

Revenues for the three and six months ended June 30, 2026 included incremental acquisition contribution of $169.2 million and $403.3 million, respectively.

Revenues of our United States electrical construction and facilities services segment were $1.66 billion for the three months ended June 30, 2026, a $322.3 million increase compared to revenues of $1.34 billion for the three months ended June 30, 2025.

Revenues of this segment for the six months ended June 30, 2026 were $3.11 billion, a $681.8 million increase compared to revenues of $2.43 billion for the six months ended June 30, 2025.

This segment’s results for the three and six months ended June 30, 2026 benefited from increased activity across a number of the market sectors we serve as well as incremental acquisition revenues of $20.5 million and $130.9 million, respectively.

While the largest increase was seen within the network and communications market sector, predominantly driven by greater demand for data center construction projects, this segment also experienced notable revenue growth within:

(a) the hospitality and entertainment market sector, due to select project opportunities, and (b) the institutional market sector, primarily as a result of an increase in revenues from public sector projects.

Revenues of this segment for the three months ended March 31, 2026 additionally benefited from greater levels of short-duration projects and service work.

Our United States mechanical construction and facilities services segment’s revenues for the three months ended March 31, 2026 were $2.03 billion, a $453.7 million increase compared to revenues of $1.57 billion for the three months ended March 31, 2025.

This segment’s results included $123.7 million of incremental acquisition revenues.

Similar to our United States electrical construction and facilities services segment, this segment experienced increased revenues within the majority of the market sectors in which we operate, with the most significant increase coming from the network and communications market sector due to greater demand for data center construction projects.

(a) the institutional market sector, primarily as a result of increased revenues from public sector work, and (b) the hospitality and entertainment market sector, due to select project

opportunities.

Revenues of this segment for both 2026 periods additionally included greater levels of short-duration projects and service work.

Partially offsetting these increases were decreased revenues resulting from:

(a) the completion or substantial completion of several construction contracts within:

(i) the healthcare market sector and (ii) the high-tech manufacturing market sector, including certain bio-tech and semiconductor projects, and (b) the transportation market sector, reflecting significant progress made on an airport construction project as well as our intentional reduction of roadway lighting and traffic signal project exposure.

Our United States mechanical construction and facilities services segment’s revenues for the three months ended June 30, 2026 were $2.30 billion, a $545.6 million increase compared to revenues of $1.76 billion for the three months ended June 30, 2025.

For the six months ended June 30, 2026, revenues of this segment were $4.33 billion, a $1.0 billion increase compared to revenues of $3.33 billion for the six months ended June 30, 2025.

This segment’s results for the three and six months ended June 30, 2026 included $148.7 million and $272.4 million, respectively, of incremental acquisition revenues.

This segment experienced increased revenues within the majority of the market sectors in which we operate, with the most significant increase coming from the network and communications market sector due to greater demand for data center construction projects.

Notable growth was additionally generated from:

(a) the institutional market sector, including increased education and public sector projects, partially as a result of the incremental acquisition contribution, (b) the manufacturing and industrial market sector, primarily driven by certain food processing projects, (c) the commercial market sector, given an increase in warehousing and distribution project revenues, and (d) the water and wastewater market sector due to greater opportunities in the Southeast region of the United States.

Further contributing to the revenue increase within this segment were greater levels of service work, including fire life safety inspection and maintenance.

(a) the institutional market sector, reflecting increased education and public sector projects, partially as a result of the incremental acquisition contribution, (b) the commercial market sector, primarily given an increase in warehousing and distribution project revenues, and (c) the manufacturing and industrial market sector, including certain food processing projects.

Further contributing to the year-over-year revenue increases within this segment were greater levels of service work, including fire life safety inspection and maintenance.

These increases were partially offset by revenue declines from the high-tech manufacturing market sector, largely as we completed certain semiconductor manufacturing construction projects in the prior year.

Revenues of our United States building services segment were $772.6 million for the three months ended March 31, 2026 compared to revenues of $742.6 million for the three months ended March 31, 2025.

Growth in this segment was generated by its mechanical services division, which experienced:

(a) greater service repair and maintenance volumes, given growth in our service contract base, and (b) an increase in building automation and controls projects, as we continue to expand our service offerings in this area.

Revenues of our United States industrial services segment for the three months ended March 31, 2026 were $381.8 million compared to revenues of $359.0 million for the three months ended March 31, 2025.

The increase in this segment’s revenues was driven by its field services division as a result of progress made on a large solar project during the first quarter of 2026.

Revenues of our United States building services segment were $837.7 million for the three months ended June 30, 2026 compared to revenues of $793.3 million for the three months ended June 30, 2025.

Revenues of this segment for the six months ended June 30, 2026 were $1.61 billion compared to revenues of $1.54 billion for the six months ended June 30, 2025.

Growth in this segment for both 2026 periods was generated by:

(a) its mechanical services division, which experienced increased:

(i) service repair and maintenance volumes, given growth in our service contract base, (ii) HVAC project and retrofit work, as demand for these services remained strong, and (iii) building automation and controls projects, as we continue to expand our service offerings in this area, and (b) its commercial site-based services division due to the award of facilities maintenance contracts with new customers as well as scope or site expansion and greater project work with existing customers.

Revenues of our United States industrial services segment for the three months ended June 30, 2026 were $353.8 million compared to revenues of $281.1 million for the three months ended June 30, 2025.

Revenues of this segment for the six months ended June 30, 2026 were $735.6 million compared to revenues of $640.1 million for the six months ended June 30, 2025.

The increase in this segment’s revenues for both 2026 periods was driven by its field services division as a result of:

(a) greater turnaround activity, (b) higher petrochemical project volume, and (c) progress made on a large solar project during the first half of 2026.

Partially offsetting this growth was a decrease in revenues of this segment’s shop services division due to lower heat exchanger sales and related services.

For the three months ended March 31, 2025, our United Kingdom building services segment generated revenues of $105.3 million.

For the three and six months ended June 30, 2025, our United Kingdom building services segment generated revenues of $134.6 million and $239.9 million, respectively.

Cost of sales and gross profit

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For the three months ended

June 30, For the six months ended

2026 2025 2026 2025

Cost of sales $ 4,132,513 $ 3,470,629 $ 7,896,796 $ 6,615,283

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Gross profit margin 19.8 % 19.4 % 19.3 % 19.0 %

Consolidated gross profit for the three months ended March 31, 2026 was $864.0 million, or 18.7% of revenues, compared to consolidated gross profit of $722.7 million, or 18.7% of revenues, for the three months ended March 31, 2025.

Gross profit for the three months ended March 31, 2026 included incremental acquisition contribution of $48.3 million, net of amortization expense attributable to identifiable intangible assets of $4.9 million.

Excluding the impact of acquisitions, the year-over-year increase in gross profit was driven by the revenue growth generated by each of our reportable segments.

Gross profit for the three months ended June 30, 2026 was $1.02 billion, or 19.8% of revenues, compared to gross profit of $833.8 million, or 19.4% of revenues, for the three months ended June 30, 2025.

Gross profit for the six months ended June 30, 2026 was $1.89 billion, or 19.3% of revenues, compared to gross profit of $1.56 billion, or 19.0% of revenues, for the six months ended June 30, 2025.

Gross profit for the three and six months ended June 30, 2026 included incremental acquisition contribution of $34.1 million and $82.4 million, respectively, net of amortization expense attributable to identifiable intangible assets of $3.2 million and $8.1 million, respectively.

Excluding the impact of acquisitions, these year-over-year increases resulted from the revenue growth generated by each of our reportable segments as well as an increase in gross profit margin, notably within our United States electrical construction and facilities services segment and our United States building services segment, as described in further detail below.

Selling, general and administrative expenses

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For the three months ended

June 30, For the six months ended

2026 2025 2026 2025

Selling, general and administrative expenses $ 475,039 $ 418,559 $ 935,144 $ 822,521

SG&A margin 9.2 % 9.7 % 9.6 % 10.1 %

Our selling, general and administrative expenses for the three months ended March 31, 2026 were $460.1 million, or 9.9% of revenues, compared to selling, general and administrative expenses of $404.0 million, or 10.4% of revenues, for the three months ended March 31, 2025.

Selling, general and administrative expenses for the three months ended March 31, 2026 included $27.7 million of incremental expenses directly related to companies acquired, including amortization expense attributable to identifiable intangible assets of $3.9 million.

Excluding incremental expenses resulting from acquisitions, the increase in our selling, general and administrative expenses was primarily as a result of greater:

(a) incentive compensation expense, predominantly within our United States construction segments and our United States building services segment, given higher projected annual operating results, (b) salaries and related employment expenses, due to additional headcount to support our organic revenue growth as well as annual cost of living adjustments, and (c) rent and other occupancy costs, partially as a result of the continued build-out or expansion of our fabrication facilities.

Partially offsetting these increases were reductions in:

Our selling, general and administrative expenses for the three months ended June 30, 2026 were $475.0 million, or 9.2% of revenues, compared to selling, general and administrative expenses of $418.6 million, or 9.7% of revenues, for the three months ended June 30, 2025.

Selling, general and administrative expenses for the six months ended June 30, 2026 were $935.1 million, or 9.6% of revenues, compared to selling, general and administrative expenses of $822.5 million, or 10.1% of revenues, for the six months ended June 30, 2025.

Selling, general and administrative expenses for the three and six months ended June 30, 2026 included $20.2 million and $47.8 million, respectively, of incremental expenses directly related to companies acquired, including amortization expense attributable to identifiable intangible assets of $2.4 million and $6.3 million, respectively.

Excluding incremental expenses resulting from acquisitions, the increase in our selling, general and administrative expenses for both 2026 periods was primarily as a result of greater:

(a) incentive compensation expense, predominantly within our United States construction segments, given higher projected annual operating results, (b) salaries expense, due to additional headcount to support our organic revenue growth as well as annual cost of living adjustments, (c) rent and other occupancy costs, partially as a result of the continued build-out or expansion of our fabrication facilities, and (d) computer hardware and software costs, driven by various information technology and cybersecurity initiatives currently in process.

Partially offsetting the increase in selling, general and administrative expenses for the six months ended June 30, 2026 were reductions in:

(a) professional fees, as the results for the prior year included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric, and (b) the provision for credit losses, given a reserve taken within our United States industrial services segment in the prior year.

Selling, general and administrative expenses additionally decreased by $7.2 million as a result of the sale of EMCOR UK.

The 50 basis point decrease in our SG&A margin year-over-year was primarily due to an increase in revenues without a commensurate increase in certain costs as we successfully leveraged our overhead structure during this period of growth.

Selling, general and administrative expenses for the three and six months ended June 30, 2026 additionally decreased by $8.2 million and $15.4 million, respectively, as a result of the sale of EMCOR UK.

The decrease in our SG&A margin for both 2026 periods was primarily due to an increase in revenues without a commensurate increase in certain costs as we successfully leveraged our overhead structure during this period of growth.

Operating income (loss)

The following table presents our operating income (loss) and operating income (loss) as a percentage of segment revenues (“operating margin”) (in thousands, except for percentages):

For the three months ended March 31,

The following tables present our operating income (loss) and operating income (loss) as a percentage of segment revenues (“operating margin”) (in thousands, except for percentages):

For the three months ended June 30,

Revenues 2025 % of

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Net periodic pension income

Interest income (expense), net 4,322 (3,240)

Income before income taxes $ 551,662 $ 412,027

For the six months ended June 30,

Revenues 2025 % of

Operating income (loss):

United States electrical construction and facilities services $ 405,898 13.1 % $ 293,701 12.1 %

United States mechanical construction and facilities services 508,282 11.7 % 425,484 12.8 %

United States building services 103,824 6.4 % 86,468 5.6 %

United States industrial services 22,379 3.0 % 6,341 1.0 %

Total United States operations 1,040,383 10.6 % 811,994 10.2 %

United Kingdom building services — — 13,412 5.6 %

Corporate administration (89,198) — (91,438) —

Consolidated operating income

951,185 9.7 % 733,968 9.0 %

Net periodic pension income

Interest income, net

Income before income taxes $ 961,734 $ 736,224

Operating income for the three months ended March 31, 2026 was $403.8 million, an increase of $85.1 million compared to operating income of $318.8 million for the three months ended March 31, 2025.

Operating margin for the three months ended March 31, 2026 was 8.7% compared to an operating margin of 8.2% for the three months ended March 31, 2025.

Operating income for the three months ended March 31, 2026 included incremental acquisition contribution of $20.6 million, net of amortization expense attributable to identifiable intangible assets of $8.8 million.

Excluding the impact of acquisitions, and as described in more detail below, the year-over-year increase in profitability was predominantly a result of the revenue growth we experienced in the quarter, which led to greater gross profit and a reduction in the ratio of selling, general and administrative expenses to revenues.

Operating income of our United States electrical construction and facilities services segment was $174.5 million for the three months ended March 31, 2026, an increase of $38.4 million compared to operating income of $136.1 million for the three months ended March 31, 2025.

This segment’s operating income for the first quarter of 2026 included incremental acquisition contribution of $8.5 million, net of amortization expense attributable to identifiable intangible assets of $3.7 million.

Excluding incremental acquisition contribution, the increase in operating income of this segment resulted from greater gross profit given the growth in its revenues.

Although the most significant increase in gross profit was experienced within the network and communications market sector, increased gross profit was generated within nearly all of the other market sectors in which we operate, in line with the revenue trends described above.

Operating margin of our United States electrical construction and facilities services segment was 12.1% for the three months ended March 31, 2026, compared to an operating margin of 12.5% for the three months ended March 31, 2025.

The 40 basis point decrease in this segment’s operating margin was primarily a result of the incremental intangible asset amortization expense referenced above.

Evidenced by consistent gross profit margins year-over-year, this segment continues to execute well across its portfolio of projects.

Our United States mechanical construction and facilities services segment’s operating income for the three months ended March 31, 2026 was $221.6 million, an increase of $34.9 million compared to operating income of $186.7 million for the three months ended March 31, 2025.

This segment’s operating income for the first quarter of 2026 included incremental acquisition contribution of $12.3 million, net of amortization expense attributable to identifiable intangible assets of $4.9 million.

Excluding incremental acquisition contribution, the increase in operating income of this segment resulted from greater gross profit given the growth in its revenues.

Greater profitability was experienced across the majority of the market sectors in which we operate, in line with the fluctuations in revenue described above and with the most significant increase in gross profit coming from network and communications.

Operating margin of our United States mechanical construction and facilities services segment was 10.9% for the three months ended March 31, 2026, compared to an operating margin of 11.9% for the three months ended March 31, 2025.

The 100 basis point decrease in this segment’s operating margin was primarily a result of a change in project mix, which included:

Operating income for the three months ended June 30, 2026 was $547.3 million, an increase of $132.1 million compared to operating income of $415.2 million for the three months ended June 30, 2025.

Operating margin for the three months ended June 30, 2026 was 10.6% compared to an operating margin of 9.6% for the three months ended June 30, 2025.

For the six months ended June 30, 2026, operating income was $951.2 million, an increase of $217.2 million compared to operating income of $734.0 million for the six months ended June 30, 2025.

Operating margin for the six months ended June 30, 2026 was 9.7% compared to an operating margin of 9.0% for the six months ended June 30, 2025.

In addition to the impact of the revenue growth we experienced in the quarter, our operating performance benefited from an increase in consolidated gross profit margin as well as a reduction in the ratio of selling, general and administrative expenses to revenues.

Operating income for the three and six months ended June 30, 2026 included incremental acquisition contribution of $13.9 million and $34.6 million, respectively, net of amortization expense attributable to identifiable intangible assets of $5.6 million and $14.4 million, respectively.

Operating income of our United States electrical construction and facilities services segment was $231.4 million for the three months ended June 30, 2026, an increase of $73.8 million compared to operating income of $157.6 million for the three months ended June 30, 2025.

Operating income of this segment for the six months ended June 30, 2026 was $405.9 million, an increase of $112.2 million compared to operating income of $293.7 million for the six months ended June 30, 2025.

For the three and six months ended June 30, 2026, operating margin of this segment was 13.9% and 13.1%, respectively, compared to an operating margin of 11.8% and 12.1% for the three and six months ended June 30, 2025, respectively.

The increase in operating income and operating margin of this segment for both 2026 periods resulted from greater gross profit and gross profit margin given the growth in its revenues, excellent project execution, and a more favorable mix of work.

From a market sector perspective, the most significant increase in gross profit was experienced within network and communications.

This segment’s operating income for the six months ended June 30, 2026 included incremental acquisition contribution of $8.6 million, net of amortization expense attributable to identifiable intangible assets of $4.5 million.

Our United States mechanical construction and facilities services segment’s operating income for the three months ended June 30, 2026 was $286.6 million, an increase of $47.9 million compared to operating income of $238.7 million for the three months ended June 30, 2025.

Operating income of this segment for the six months ended June 30, 2026 was $508.3 million, an increase of $82.8 million compared to operating income of $425.5 million for the six months ended June 30, 2025.

The increase in operating income of this segment for both 2026 periods resulted from greater gross profit within the majority of the market sectors in which we operate, generally in line with the increases in revenue described above and with the most significant increase coming from network and communications.

This segment’s operating income for the three and six months ended June 30, 2026 included incremental acquisition contribution of $14.1 million and $26.4 million, respectively, net of amortization expense attributable to identifiable intangible assets of $4.6 million and $9.4 million, respectively.

For the three and six months ended June 30, 2026, operating margin of this segment was 12.5% and 11.7%, respectively, compared to an operating margin of 13.6% and 12.8% for the three and six months ended June 30, 2025, respectively.

The 110 basis point decrease in this segment’s operating margin for both 2026 periods was primarily a result of a change in project mix, which included:

(a) a greater percentage of revenues generated from projects for which we are acting as either the construction manager or prime contractor and that carry lower than average gross profit margins, and (b) an increase in the number of guaranteed maximum price and cost plus contracts, particularly in newer geographies or on projects where design or scope is still evolving.

Operating income of our United States building services segment was $40.4 million, or 5.2% of revenues, for the three months ended March 31, 2026 compared to $36.4 million, or 4.9% of revenues, for the three months ended March 31, 2025.

This segment experienced an increase in gross profit and gross profit margin, led by its mechanical services division, which generated margin expansion across its service repair and maintenance contracts and building automation and controls projects.

Our United States industrial services segment reported operating income of $12.8 million, or 3.3% of revenues, for the three months ended March 31, 2026, compared to operating income of $6.8 million, or 1.9% of revenues, for the three months ended March 31, 2025.

Contributing to the favorable year-over-year comparison was the impact of a $4.0 million increase in the allowance for credit losses in the prior year period, which negatively impacted this segment’s operating margin by 110 basis points for the three months ended March 31, 2025.

Excluding this impact, the increase in operating income and operating margin of this segment was primarily a result of an increase in gross profit and gross profit margin within its field services division due to the revenue growth referenced above, coupled with a more favorable mix of work.

For the three months ended March 31, 2025, operating income of our United Kingdom building services segment was $5.0 million, or 4.7% of revenues.

Our corporate administration expenses for the three months ended March 31, 2026 were $45.5 million, compared to $52.2 million for the three months ended March 31, 2025.

The reduction in corporate expenses was primarily due to a decrease in professional fees, as the prior year period included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric.

This decrease was partially offset by an increase in certain employment expenses.

For the three months ended March 31, 2026, net interest income was $6.2 million, compared to net interest income of $5.4 million for the three months ended March 31, 2025.

For the three months ended March 31, 2026, our income tax provision was $104.6 million compared to an income tax provision of $83.5 million for the three months ended March 31, 2025.

Our effective income tax rate for the three months ended March 31, 2026 was 25.5% compared to an effective income tax rate for the three months ended March 31, 2025 of 25.8%.

Operating income of our United States building services segment was $63.4 million, or 7.6% of revenues, for the three months ended June 30, 2026, compared to operating income of $50.0 million, or 6.3% of revenues, for the three months ended June 30, 2025.

Operating income of this segment for the six months ended June 30, 2026 was $103.8 million, or 6.4% of revenues, compared to $86.5 million, or 5.6% of revenues, for the six months ended June 30, 2025.

In addition to the impact of greater revenues, this segment’s operating results for both 2026 periods benefited from (a) an increase in gross profit margin, given a more favorable project mix as well as improved execution, and (b) a decrease in the ratio of selling, general and administrative expenses to revenues, partially due to lower overhead costs within its commercial and government site-based services divisions following the restructuring actions we completed in 2025.

Our United States industrial services segment reported operating income of $9.6 million, or 2.7% of revenues, for the three months ended June 30, 2026, compared to an operating loss of $0.4 million, or (0.1)% of revenues, for the three months ended June 30, 2025.

For the six months ended June 30, 2026, this segment reported operating income of $22.4 million, or 3.0% of revenues, compared to operating income of $6.3 million, or 1.0% of revenues, for the six months ended June 30, 2025.

The increase in operating income of this segment for both 2026 periods was a result of an increase in gross profit within its field services division due to the revenue growth referenced above, while the increase in operating margin was attributable to a reduction in SG&A margin given an increase in revenues without a commensurate increase in certain overhead costs.

Additionally contributing to the favorable comparison for the six month period was the impact of a $5.0 million increase in the allowance for credit losses in 2025, which negatively impacted this segment’s operating margin by 80 basis points.

Operating income of our United Kingdom building services segment for the three months ended June 30, 2025 was $8.4 million, or 6.3% of revenues, and operating income of such segment for the six months ended June 30, 2025 was $13.4 million, or 5.6% of revenues.

Our corporate administration expenses for the three and six months ended June 30, 2026 were $43.7 million and $89.2 million, respectively, compared to $39.2 million and $91.4 million for the three and six months ended June 30, 2025, respectively.

For both 2026 periods, our corporate expenses included greater employment and information technology costs.

Offsetting the impact of these increases for the six months ended June 30, 2026 was a decrease in professional fees, as the prior year period included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric.

For the three months ended June 30, 2026, net interest income was $4.3 million, compared to net interest expense of $3.2 million for the three months ended June 30, 2025.

For the six months ended June 30, 2026, net interest income was $10.5 million, compared to net interest income of $2.1 million for the six months ended June 30, 2025.

These year-over-year fluctuations were a result of:

(a) a decrease in interest expense, given the impact in the prior year of borrowings under our revolving credit facility, and (b) an increase in interest income due to a higher average daily invested cash balance.

For the three and six months ended June 30, 2026, our income tax provision was $148.0 million and $252.6 million, respectively, compared to an income tax provision of $109.9 million and $193.4 million for the three and six months ended June 30, 2025, respectively.

Our effective income tax rate for the three and six months ended June 30, 2026 was 26.8% and 26.3%, respectively, compared to an effective income tax rate for the three and six months ended June 30, 2025 of 26.7% and 26.3%, respectively.

Refer to Note 9 - Income Taxes of the notes to consolidated financial statements for further discussion regarding our income tax provision and effective income tax rate.

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The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentage of total remaining performance obligations (in thousands, except for percentages):

% of Total December 31, 2025 % of Total March 31,

2026 % of Total December 31, 2025 % of Total June 30,

2025 % of Total

Remaining performance obligations:

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Total operations $ 17,143,101 100 % $ 13,253,664 100 % $ 11,914,388 100 %

Our remaining performance obligations at March 31, 2026 were a record $15.62 billion compared to $13.25 billion at December 31, 2025 and $11.75 billion at March 31, 2025.

Our remaining performance obligations at June 30, 2026 were a record $17.14 billion compared to $13.25 billion at December 31, 2025 and $11.91 billion at June 30, 2025.

When compared to December 31, 2025, remaining performance obligations increased by $3.89 billion due to new contract awards within our United States construction segments and our United States building services segment.

We experienced growth in remaining performance obligations from the majority of the market sectors we serve, with the most significant increases within:

(a) network and communications, predominantly as a result of several data center construction contracts, (b) water and wastewater, given recent project awards in the Southeast region of the United States, (c) institutional, largely as we continue to see demand for our services from education customers, including a number of colleges and universities, and (d) healthcare, resulting from certain contract awards in the Northeast region of the United States.

Partially offsetting these increases were reductions from the manufacturing and industrial and hospitality and entertainment market sectors, due to progress made on certain projects during the first quarter of 2026.

(a) network and communications, predominantly as a result of several data center construction contracts, (b) healthcare, primarily resulting from certain contract awards in the Northeast region of the United States, (c) water and wastewater, given recent project awards in the Southeast region of the United States, and (d) institutional, largely as we continue to see demand for our services from education customers, including a number of colleges and universities.

See Note 3 - Revenue from Contracts with Customers of the notes to consolidated financial statements for further disclosure regarding our remaining performance obligations.

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While we strive to negotiate favorable billing terms, which allow us to invoice in advance of costs incurred on certain of our contracts, there can be no assurance that such terms will be agreed to by our customers.

As of March 31, 2026, we had cash and cash equivalents of $916.4 million, which are maintained in depository accounts and highly liquid investments with original maturity dates of three months or less.

As of June 30, 2026, we had cash and cash equivalents of $924.4 million, which are maintained in depository accounts and highly liquid investments with original maturity dates of three months or less.

Both our short-term and long-term liquidity requirements are expected to be met through our cash and cash equivalent balances, cash generated from our operations, and, as necessary, the borrowing capacity under our revolving credit facility.

Our credit agreement provides for a $1.30 billion revolving credit facility, for which there was $1.23 billion of available capacity as of March 31, 2026.

Our credit agreement provides for a $1.30 billion revolving credit facility, for which there was $1.23 billion of available capacity as of June 30, 2026.

Refer to Note 7 - Debt of the notes to consolidated financial statements for further information regarding our credit agreement.

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The following table presents a summary of our operating, investing, and financing cash flows (in thousands):

For the three months ended

For the six months ended

Net cash provided by operating activities $ 289,913 $ 302,158

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$ (187,557) $ (853,234)

During the three months ended March 31, 2026, our cash balance decreased by $195.5 million from $1.11 billion at December 31, 2025 to $916.4 million at March 31, 2026.

Changes in our cash position from December 31, 2025 to March 31, 2026 are described in further detail below.

During the six months ended June 30, 2026, our cash balance decreased by $187.6 million from $1.11 billion at December 31, 2025 to $924.4 million at June 30, 2026.

Changes in our cash position from December 31, 2025 to June 30, 2026 are described in further detail below.

Operating Activities – Operating cash flows generally represent our net income as adjusted for certain non-cash items and changes in assets and liabilities.

Net cash provided by operating activities for the three months ended March 31, 2026 was $0.6 million compared to $108.5 million for the three months ended March 31, 2025.

The decrease in our operating cash flow was primarily a result of an increase in accounts receivable given our strong organic revenue growth during the first quarter of 2026.

These amounts will be converted to cash as the year progresses and payments are received by our customers in the ordinary course of business.

Net cash provided by operating activities for the six months ended June 30, 2026 was $289.9 million compared to $302.2 million for the six months ended June 30, 2025.

Despite the increase in our net income, the decrease in our operating cash flow was primarily a result of an increase in working capital given our strong organic revenue growth during the first half of 2026.

Investing Activities – Investing cash flows consist primarily of payments for acquisition of businesses, capital expenditures, and proceeds from the sale or disposal of property, plant, and equipment or other long-term assets.

Net cash used in investing activities for the three months ended March 31, 2026 decreased by $803.7 million compared to the three months ended March 31, 2025, primarily due to a decrease in payments for acquisitions given the acquisition of Miller Electric in the prior year period.

Net cash used in investing activities for the six months ended June 30, 2026 decreased by $786.1 million compared to the six months ended June 30, 2025, primarily due to a decrease in payments for acquisitions given the acquisition of Miller Electric in the prior year period.

Financing Activities – Financing cash flows consist primarily of the issuance and repayment of short-term and long-term debt, repurchases of common stock, payments of dividends to stockholders, and the issuance of common stock through certain equity plans.

Net cash used in financing activities was $124.4 million for the three months ended March 31, 2026 compared to $0.8 million for the three months ended March 31, 2025.

The $123.5 million increase in cash used in financing activities was primarily due to the impact in the first quarter of 2025 of $250.0 million of proceeds from our revolving credit facility, partially offset by a $137.7 million decrease in common stock repurchases made by us year-over-year.

Net cash used in financing activities was $324.7 million for the six months ended June 30, 2026 compared to $231.1 million for the six months ended June 30, 2025.

The $93.6 million increase in cash used in financing activities was primarily due to the impact of $250.0 million in net borrowings made under our revolving credit facility during the first half of 2025, partially offset by a $163.6 million decrease in common stock repurchases made by us year-over-year.

The timing of common stock repurchases is at management’s discretion subject to securities laws and other legal requirements and depends upon several factors, including market and business conditions, current and anticipated future liquidity, share price, and share availability, among others.

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We currently pay a regular quarterly dividend of $0.40 per share.

For the three months ended March 31, 2026 and 2025, cash payments related to dividends were $17.8 million and $11.5 million, respectively.

For the six months ended June 30, 2026 and 2025, cash payments related to dividends were $35.6 million and $22.6 million, respectively.

Our credit agreement places limitations on the payment of dividends on our common stock.

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Material Cash Requirements from Contractual and Other Obligations

As of March 31, 2026, our short-term and long-term material cash requirements for known contractual and other obligations were as follows:

Outstanding Debt and Interest Payments – As of March 31, 2026, there were no direct borrowings outstanding under our revolving credit facility.

As of June 30, 2026, our short-term and long-term material cash requirements for known contractual and other obligations were as follows:

Outstanding Debt and Interest Payments – As of June 30, 2026, there were no direct borrowings outstanding under our revolving credit facility.

Interest payments on any future borrowings will be determined based on prevailing interest rates at that time.

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Operating and Finance Leases – In the normal course of business, we lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases.

Future payments for such leases, excluding leases with initial terms of one year or less, were $622.4 million at March 31, 2026, with $127.5 million payable within the next 12 months.

Open Purchase Obligations – As of March 31, 2026, we had $3.41 billion of open purchase obligations, of which payments totaling $2.82 billion are expected to become due within the next 12 months.

Future payments for such leases, excluding leases with initial terms of one year or less, were $661.7 million at June 30, 2026, with $132.8 million payable within the next 12 months.

Open Purchase Obligations – As of June 30, 2026, we had $3.93 billion of open purchase obligations, of which payments totaling $3.07 billion are expected to become due within the next 12 months.

These obligations represent open purchase orders to suppliers and subcontractors related to our construction and services contracts.

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Insurance Obligations – As described in further detail in Note 11 - Commitments and Contingencies of the notes to consolidated financial statements, we have loss payment deductibles and/or self-insured retentions for certain insurance matters.

As of March 31, 2026, our insurance liabilities, net of estimated recoveries, were $315.8 million.

As of June 30, 2026, our insurance liabilities, net of estimated recoveries, were $330.4 million.

Of this net amount, $80.1 million is estimated to be payable within the next 12 months.

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The aggregate amount of these liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, changes in the fair value of amounts owed based on performance during such post-acquisition periods, and accretion in present value.

As of March 31, 2026, the present value of expected future payments relating to these contingent consideration arrangements was $2.5 million.

As of June 30, 2026, the present value of expected future payments relating to these contingent consideration arrangements was $5.7 million.

Of this amount, $4.3 million is estimated as being payable within the next 12 months.

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We have agreed to indemnify the surety companies for amounts, if any, paid by them in respect of surety bonds issued on our behalf.

As of March 31, 2026, based on the percentage-of-completion of our projects covered by surety bonds, our aggregate estimated exposure, assuming defaults on all our then existing contractual obligations, was $4.19 billion, which represents approximately 27% of our total remaining performance obligations.

As of June 30, 2026, based on the percentage-of-completion of our projects covered by surety bonds, our aggregate estimated exposure, assuming defaults on all our then existing contractual obligations, was $4.30 billion, which represents approximately 25% of our total remaining performance obligations.

Surety bonds expire at various times ranging from final completion of a project to a period extending beyond contract completion in certain circumstances.

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In addition, surety bonds or letters of credit may be issued as collateral for certain insurance obligations.

As of March 31, 2026, we satisfied $105.5 million and $72.8 million of the collateral requirements of our insurance programs by utilizing surety bonds and letters of credit, respectively.

As of June 30, 2026, we satisfied $105.5 million and $73.1 million of the collateral requirements of our insurance programs by utilizing surety bonds and letters of credit, respectively.

All such letters of credit were issued under our revolving credit facility, therefore reducing the available capacity of such facility.

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As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

There have been no significant changes to our critical accounting policies or methods during the three months ended March 31, 2026.

There have been no significant changes to our critical accounting policies or methods during the six months ended June 30, 2026.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis