What changed in this filing

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Item 1A. Risk Factors

2025-02-26 compared with 2024-02-28 · 22 added, 17 removed, 419 unchanged (9% of the section changed)

26 unchanged sentences

• the amount of subcontractor and material costs in our projects;

• payment risk associated with the financial condition of our customers;

• payment risk associated with the financial condition of our customers or others;

• increases in design, construction and operating costs, due to inflation or other unforeseen causes, that we are unable to pass through to our customers;

8 unchanged sentences

• significant fluctuations in foreign currency exchange rates;

• unfavorable changes in tax laws or tax rates;

• significant fluctuations in interest rates;

15 unchanged sentences

If we are unable to compete successfully in our markets, our operating results could be adversely affected.

Negative economic and market conditions including tariffs on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.

Negative economic and market conditions including tariffs and inflation on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.

The demand for our services from our customers has been, and will likely continue to be, cyclical in nature and vulnerable to downturns in the industries we serve as well as the economy in general.

8 unchanged sentences

policies related to global trade and tariffs, as well as retaliatory trade measures implemented by other countries, have resulted in uncertainty surrounding the future of the global economy.

Increases in the cost of imported raw materials or finished goods as a result of tariffs or trade policies may impact customer spending, and reductions in customer spending could lead to fewer project awards and more competition We cannot predict the outcome of these changing trade policies or other unanticipated political conditions, nor can we predict the timing or strength of any economic recovery or downturn worldwide or its impact on our customers’ markets.

Increases in the cost of imported raw materials or finished goods as a result of tariffs or trade policies may impact customer spending, indirect inflationary impacts, and reductions in customer spending could lead to fewer project awards and more competition We cannot predict the outcome of these changing trade policies or other unanticipated political conditions, nor can we predict the timing or strength of any economic recovery or downturn worldwide or its impact on our customers’ markets.

New Project and Growth Risks

41 unchanged sentences

delays caused by inefficiencies and not achieving expected labor performance and other factors, some of which are beyond our control.

Any delay or failure by suppliers or by third-party subcontractors in the completion of their portion of the project may result in delays in the overall progress of the project or may cause us to incur additional costs, or both.

Any delay or failure by suppliers or by third-party contractors or subcontractors in the completion of their portion of the project may result in delays in the overall progress of the project or may cause us to incur additional costs, or both.

We also may encounter project delays due to local opposition, which may include injunctive actions as well as public protests, to the siting of electric transmission lines, clean energy projects, or other facilities.

19 unchanged sentences

In addition, our projects are sometimes located in remote areas, which can make recruitment and deployment of our personnel challenging.

During periods with large volumes of storm restoration services work, linemen are frequently recruited across geographic regions to satisfy demand.

Delays in the completion of a project could impact the labor available for other projects, reducing our productivity and causing an increase in our labor costs.

Additionally, during periods with large volumes of storm restoration services work, linemen are frequently recruited across geographic regions to satisfy demand.

Many linemen are willing to travel to earn premium wages for such work, which from time to time makes it difficult for us to retain these workers for ongoing projects when storm conditions persist.

73 unchanged sentences

We also are exposed to currency risks relating to the translation of certain monetary transactions, assets and liabilities.

Changes in tax laws or our interpretations of tax laws could materially impact our income tax liabilities.

Changes in tax laws or our interpretations of tax laws could materially impact our tax liabilities.

We have operations in the United States and Canada and are subject to the jurisdiction of multiple federal and state taxing authorities.

3 unchanged sentences

Changes in the operating environment, including changes in tax laws, as well as differences in the interpretation of tax laws, could materially impact our income tax liabilities.

In addition, we currently collect and remit sales and use, value added and other transaction taxes in certain jurisdictions, based on our assessment of the amount of taxes owed by us in such jurisdictions.

A successful assertion that we are required to pay additional taxes, the imposition of new laws or regulations or the interpretation of existing laws and regulations requiring the payment of additional taxes could materially impact our tax liabilities.

The nature of our business exposes us to potential liability for warranty claims and faulty engineering, which may reduce our profitability.

6 unchanged sentences

Costs incurred because of warranty claims could adversely affect our business, financial condition, results of operations and cash flows.

Our business involves professional judgments regarding the planning, design, development, construction, operations and management of electric power transmission and commercial construction.

Our business involves professional judgments regarding the planning, design, development, construction, operations and management of electric power transmission, distribution, commercial and industrial construction.

Because our projects are often technically complex, our failure to make judgments and recommendations in accordance with applicable professional standards, including engineering standards, could result in damages.

15 unchanged sentences

Third Party Partner Risks

Our dependence on suppliers, subcontractors and equipment manufacturers have in the past and may in the future expose us to the risk of loss in our operations.

Our dependence on customers, suppliers, subcontractors and equipment manufacturers has in the past and may in the future expose us to the risk of loss in our operations.

On certain projects, we rely on suppliers to obtain the necessary materials and subcontractors to perform portions of our services.

For some projects we act in a limited capacity or as a subcontractor and rely on our customers to oversee the overall management of a project.

We also rely on equipment manufacturers to provide us with the equipment required to conduct our operations.

Although we are not dependent on any single supplier, subcontractor or equipment manufacturer, any substantial limitation on the availability of required suppliers, subcontractors or equipment manufacturers could negatively impact our operations.

The risk of a lack of available suppliers, subcontractors or equipment manufacturers may be heightened as a result of market and economic conditions.

We have in the past and may in the future experience difficulties in acquiring equipment or materials due to supply chain interruptions, including as a result of natural disasters, weather, labor disputes, pandemic outbreak of disease, fire or explosions and power outages.

Although we are not dependent on any single customer, supplier, subcontractor or equipment manufacturer, any substantial limitation on the availability of required customers, suppliers, subcontractors or equipment manufacturers could negatively impact our operations.

The risk of a lack of available suppliers, subcontractors or equipment manufacturers may be heightened as a result of market, governmental and economic conditions.

To the extent we cannot engage subcontractors or acquire equipment or materials, we could experience losses in the performance of our operations.

Successful completion of our contracts may depend on whether our subcontractors successfully fulfill their contractual obligations.

If our subcontractors fail to perform their contractual obligations as a result of financial or other difficulties, or if our subcontractors fail to meet the expected completion dates or quality standards, we may be required to incur additional costs or provide additional services in order to make up such shortfall and we may suffer damage to our reputation.

Successful completion of our contracts may depend on whether our customers, subcontractors or other third parties, successfully fulfill their contractual obligations.

If our customers, subcontractors or other third parties, fail to perform their contractual obligations as a result of financial or other difficulties, or if our customers, subcontractors or other third parties, fail to meet the expected completion dates or quality standards, we may be required to incur additional costs or provide additional services in order to make up such shortfall and we may suffer damage to our reputation.

Our participation in joint ventures and other projects with third parties may expose us to liability for failures of our partners.

6 unchanged sentences

Legislative or regulatory actions relating to electricity transmission and clean energy may impact demand for our services.

Current and future legislative or regulatory actions may impact demand for our services, require utilities to meet reliability standards, and encourage installation of new electric transmission and clean energy generation facilities.

However, it is unclear whether these initiatives will create sufficient incentives for projects or result in increased demand for our services.

107 unchanged sentences

• changes in the costs or availability of equipment, materials, labor or subcontractors;

• the failure of our suppliers or subcontractors to perform;

• the failure of our customers, suppliers, subcontractors or other third parties to perform;

• difficulties in our customers obtaining required governmental permits or approvals;

2 unchanged sentences

• an increase in the cost of fuel or other resources;

• changes in local laws and regulations;

• changes in, or our interpretations of, local laws and regulations;

• delays caused by local weather conditions, third parties or customers;

2 unchanged sentences

For certain contracts, we are exposed to market risks that may cause increases in the cost, or the availability of, parts, commodities, equipment and tooling, utilized in our operations.

We have experienced, expect to continue to be affected through 2024, and may in the future be impacted by, delays and cost volatility of these items due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns.

We have in the past been, and may in the future be impacted by, delays and cost volatility of these items due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns.

In addition, our customers’ capital budgets may be impacted by cost increases and reduced customer spending could lead to fewer project awards and more competition.

57 unchanged sentences

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-K

Item 1A. Risk Factors