The following information should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”). The following discussion may contain forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances. 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. Cautionary Note Regarding Forward-Looking Statements This Quarterly Report contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical facts, including, without limitation, statements regarding plans, trends, objectives, goals, business strategies, market potential, future financial performance and other matters are considered forward-looking statements. The words “believe,” “expect,” “estimate,” “could,” “should,” “would,” “intend,” “may,” “plan,” “predict,” “seek,” “anticipate,” “project” and similar expressions generally identify forward-looking statements, which speak only as of the date the statements were made. In particular, information included under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 3. Quantitative and Qualitative Disclosures about Market Risk” of this Quarterly Report contains forward-looking statements. 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. You should read this Quarterly Report completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this Quarterly Report are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this Quarterly Report, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. Overview 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: Electrical & Mechanical (“E&M”): Contracting services including construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, renewables infrastructure and mechanical piping and services in both the public and private sectors. Transmission & Distribution (“T&D"): Contracting services including construction and maintenance of overhead and underground electrical, gas, communication infrastructure and transportation-related lighting, as well as the manufacture and distribution of overhead and underground transmission line construction equipment and tools. 35 At Everus, people are our core, and we prioritize integrity, safety and growth through comprehensive training, hands-on development, safety compliance metrics and strong union partnerships to instill a safety first culture and ethical leadership across all levels. 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. 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. Economic and Industry Factors Impacting Our Business 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. Despite these increased costs, we are focused on growing our total revenues, expanding gross margins, managing costs and generating cash, all of which would result in increased operating income. Market Conditions and Outlook The U.S. construction services industry is highly fragmented. It includes a wide spectrum of players, from small, private companies whose activities are geographically concentrated to larger public companies with nationwide capabilities. Competition within the industry is influenced by various elements such as technical expertise, service pricing, financial and operational resources, track record for safety, industry reputation and dependability. The U.S. construction services industry serves a diverse customer base that includes federal, state and municipal governmental agencies, commercial and residential developers and private parties. The mix of customers varies by region and economic conditions. The main factors and trends in the U.S. construction services industry include: •Key economic factors. Many factors affect product demand, including public spending on infrastructure projects, general economic conditions, including population growth and employment levels, imposed and proposed tariffs, U.S. involvement or indirect effects from global conflicts and prevailing interest rates. •Inflation. Rising inflation can increase the cost of construction materials, labor and insurance premiums, impacting project budgets and profitability. •Industry fragmentation. There are thousands of construction services providers of varying scope and size. Market participants may enter new geographies or expand existing positions through organic growth or the acquisition of existing providers. •Seasonality. Activity in certain areas is seasonal due to the effects of weather, which can impact safety and efficiency of operations but could also lead to demand for our services. 36 •Cyclicality. The demand for construction services is significantly influenced by the cyclical nature of the economy. •Regulations. Operations are subject to extensive laws and regulations relating to the maintenance of safe conditions in the workplace. •Production inputs. Cost of labor, equipment and other inputs can vary over time based on macroeconomic factors and impact profitability of operations. •Personnel. Ability to maintain productivity and operating performance is heavily dependent on the ability to employ, train and retain qualified personnel necessary to operate efficiently. We continued to have bidding opportunities in the specialty contracting markets we have operated in during 2026, as evidenced by our backlog, even with our revenue growth during the fiscal year thus far. We believe our backlog supports our strong project pipeline across our diverse service offerings, particularly for data center, high tech and hospitality work. With our successful track record of executing on complex projects, our long-term customer relationships, safe and skilled workforce, quality of service and effective cost management, we believe we remain well-positioned to benefit from favorable demand drivers, including high tech reshoring, data center construction and utility infrastructure investments, giving us the opportunity to continue securing and executing profitable projects in the future. Consolidated Results of Operations Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025 The following table sets forth our consolidated selected statements of income data, with percentages of operating revenues for the interim periods indicated, as well as the percentage change from the prior comparative interim period: Three months ended June 30, 2026 % of revenues 2025 % of revenues % change (In millions, except percentages) Operating revenues $ 1,231.6 100.0 % $ 921.5 100.0 % 33.7 % Cost of sales 1,048.6 85.1 801.6 87.0 30.8 Gross profit 183.0 14.9 119.9 13.0 52.6 Selling, general and administrative expenses 71.2 5.8 47.4 5.1 50.2 Operating income 111.8 9.1 72.5 7.9 54.2 Interest income 1.3 0.1 0.6 0.1 NM Interest expense 4.6 0.4 5.4 0.6 (14.8) Other income, net 1.5 0.1 1.9 0.2 (21.1) Income before income taxes and income from equity method investments 110.0 8.9 69.6 7.6 58.0 Income taxes 29.4 2.4 19.4 2.1 51.5 Income from equity method investments 3.3 0.3 2.6 0.3 26.9 Net income $ 83.9 6.8 % $ 52.8 5.7 % 58.9 % NM - Not Meaningful Operating Revenues 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. 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. 37 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. Cost of Sales 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. Gross Profit 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. Selling, General and Administrative Expenses 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. Operating Income 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. Interest Income 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 arrangement for the three months ended June 30, 2026. Interest Expense 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. Other Income, Net 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. 38 Income Taxes 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. Income from Equity Method Investments 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. Net Income 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. Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025 The following table sets forth our consolidated selected statements of income data, with percentages of operating revenues for the interim periods indicated, as well as the percentage change from the prior comparative interim period: Six months ended June 30, 2026 % of revenues 2025 % of revenues % change (In millions, except percentages) Operating revenues $ 2,268.5 100.0 % $ 1,748.1 100.0 % 29.8 % Cost of sales 1,954.8 86.2 1,535.7 87.8 27.3 Gross profit 313.7 13.8 212.4 12.2 47.7 Selling, general and administrative expenses 124.2 5.5 88.9 5.1 39.7 Operating income 189.5 8.4 123.5 7.1 53.4 Interest income 3.6 0.2 1.5 0.1 NM Interest expense 9.2 0.4 11.0 0.6 (16.4) Other income, net 2.1 0.1 2.5 0.1 (16.0) Income before income taxes and income from equity method investments 186.0 8.2 116.5 6.7 59.7 Income taxes 49.7 2.2 33.0 1.9 50.6 Income from equity method investments 5.9 0.3 6.0 0.3 (1.7) Net income $ 142.2 6.3 % $ 89.5 5.1 % 58.9 % NM - Not Meaningful Operating Revenues 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. 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. 39 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. Cost of Sales 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. Gross Profit 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. Selling, General and Administrative Expenses 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. Operating Income 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. Interest Income Interest income for the six months ended June 30, 2026 was $3.6 million, an increase of $2.1 million, from $1.5 million for the 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 the six months ended June 30, 2026. Interest Expense 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. Other Income, Net 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. 40 Income Taxes 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. Income from Equity Method Investments 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. Net Income 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. Segment Results of Operations Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025 We report our results under two reportable, operating segments: E&M and T&D. The following table sets forth segment revenues, segment operating income and “Corporate and Other” category operating income for the periods indicated, with segment revenues compared to total consolidated revenues and operating income margins for the interim periods indicated, as well as the percentage change from the prior comparative interim period: Three months ended June 30, 2026 % of revenues 2025 % of revenues % Change (In millions, except percentages) Operating revenues: E&M $ 1,010.3 82.0 % $ 713.6 77.4 % 41.6 % T&D 227.5 18.5 212.4 23.1 7.1 Eliminations (6.2) (0.5) (4.5) (0.5) 37.8 Consolidated revenues $ 1,231.6 100.0 % $ 921.5 100.0 % 33.7 % Operating income: E&M $ 100.5 9.9 % $ 59.2 8.3 % 69.8 % T&D 25.8 11.3 23.7 11.2 8.9 Corporate and Other1 (14.5) (1.2) (10.4) (1.1) 39.4 Consolidated operating income $ 111.8 9.1 % $ 72.5 7.9 % 54.2 % 1.Corporate and Other operating income percentage of revenues was calculated by dividing Corporate and Other operating income by consolidated revenues for the periods indicated. Operating Revenues E&M 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. •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. 41 •Industrial revenues increased $70.4 million, primarily due to increased activity in the high tech and manufacturing submarkets. •Service & other had higher revenues of $3.5 million, as a result of increased repair and maintenance demand. •Institutional revenues declined $19.5 million, primarily from lower project activity due to project timing and decreased demand for services in the education and government submarkets. •Renewables revenues decreased $3.1 million, reflecting decreased commercial submarket activity. 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. 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. T&D 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. •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. •Transportation revenues decreased $5.0 million, with reduced project activity in the traffic signalization and street lighting submarkets. 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. 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. Operating Income E&M 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. 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. 42 T&D 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. 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. Corporate and Other The increase in Corporate and Other costs during the three months ended June 30, 2026 was primarily due to higher labor expenses of $3.2 million, to support the operational growth and performance of the business, and higher business development expenses of $1.2 million. Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025 The following table sets forth segment revenues, segment operating income and “Corporate and Other” category operating income for the periods indicated, with segment revenues compared to total consolidated revenues and operating income margins for the interim periods indicated, as well as the percentage change from the prior comparative interim period: Six months ended June 30, 2026 % of revenues 2025 % of revenues % Change (In millions, except percentages) Operating revenues: E&M $ 1,845.4 81.4 % $ 1,361.8 77.9 % 35.5 % T&D 431.9 19.0 397.4 22.7 8.7 Eliminations (8.8) (0.4) (11.1) (0.6) (20.7) Consolidated revenues $ 2,268.5 100.0 % $ 1,748.1 100.0 % 29.8 % Operating income: E&M $ 171.1 9.3 % $ 103.5 7.6 % 65.3 % T&D 46.1 10.7 38.2 9.6 20.7 Corporate and Other1 (27.7) (1.2) (18.2) (1.0) (52.2) Consolidated operating income $ 189.5 8.4 % $ 123.5 7.1 % 53.4 % 1.Corporate and Other operating income percentage of revenues was calculated by dividing Corporate and Other operating income by consolidated revenues for the periods indicated. Operating Revenues E&M E&M segment revenues for the six months ended June 30, 2026, were $1.85 billion, an increase of $483.6 million, or 35.5%, from $1.36 billion for the six months ended June 30, 2025. The increase was primarily driven by higher revenues in the commercial and industrial end markets, particularly continued growth in the data center submarket, partially offset by decreased revenues in the institutional end market. SE&M contributed $33.4 million for the six months ended June 30, 2026. •Commercial revenues grew $480.9 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. •Industrial revenues increased $62.4 million, primarily from increased project activity in the high tech and manufacturing submarkets, partially offset by lower workloads in the oil & gas submarket. •Service & other revenues increased by $1.7 million, due to increased repair and maintenance demand. 43 •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. •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. Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted E&M revenues and accounted for approximately 5.7% of E&M revenues for the six months ended June 30, 2026, compared to 4.0% of E&M revenues for the six months ended June 30, 2025. 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. T&D T&D segment revenues for the six months ended June 30, 2026, were $431.9 million, an increase of $34.5 million, or 8.7%, from $397.4 million for the six months ended June 30, 2025. The increase was primarily driven by increased workloads in the utility end market. •Utility revenues increased $39.3 million, primarily from increased project activity across several submarkets, particularly transmission, distribution and storm, partially offset by decreased submarket activity in the gas submarket due to the timing of project availability. •Transportation revenues declined $4.8 million, reflecting lower workloads in the street lighting and traffic signalization submarkets. Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted T&D revenues and accounted for approximately 2.4% of T&D revenues for the six months ended June 30, 2026, compared to 4.0% of T&D revenues for the six months ended June 30, 2025. 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. Operating Income E&M E&M segment operating income for the six months ended June 30, 2026, was $171.1 million, an increase of $67.6 million, or 65.3%, from $103.5 million for the six 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 and institutional, due to solid project execution and project timing, partially offset by changes in project mix and lower gross profit within the industrial end market. As a result, gross margin increased to 13.4% for the six months ended June 30, 2026, compared to 11.3% for the six months ended June 30, 2025. Operating income was also impacted by higher SG&A expenses, primarily from increased labor expenses of $14.9 million, to support the operational growth and performance of the business, higher amortization expenses of $3.1 million largely from the SE&M acquisition and higher other SG&A expenses of $6.7 million. Operating income margin for our E&M segment increased to 9.3% for the six months ended June 30, 2026, compared to 7.6% for the six months ended June 30, 2025. 44 T&D Operating income in the T&D segment for the six months ended June 30, 2026, was $46.1 million, an increase of $7.9 million, or 20.7%, from $38.2 million for the six months ended June 30, 2025. The increase was the result of higher gross profit due to T&D segment revenue growth and efficient project execution within the utility end market, with T&D gross margin improvement of 15.3% for the six months ended June 30, 2026, compared to 14.5% for the six months ended June 30, 2025. SG&A expenses remained relatively consistent period over period, primarily from increased labor expenses of $0.8 million offset by lower professional service-related expenses of $0.8 million, along with higher other SG&A expenses of $0.6 million. Operating income margin for our T&D segment increased to 10.7% for the six months ended June 30, 2026, compared to 9.6% for the six months ended June 30, 2025. Corporate and Other 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. Backlog Backlog is a common measurement in the construction services industry. Our determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog may also be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond our control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the backlog table below, we did not experience any material impacts related to delays or cancellations of planned projects that were included in backlog. The timing of contract awards, including contracts awarded underneath master service agreements, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any given point in time may not accurately represent the revenue or net income that is realized in any period, and backlog as of the end of the period may not be indicative of the revenue or net income expected to be realized within the next 12 months. Backlog should not be relied upon as a standalone indicator of future results. See “Item 1A. Risk Factors” included in our 2025 Annual Report for factors that could cause revenues to be realized in periods and at levels that are different from originally projected. Subject to the foregoing discussions, the following table provides estimated backlog as of the dates indicated and the amounts we reasonably estimate will be recognized within the next 12 months following June 30, 2026: Amounts estimated to be recognized within 12 months June 30, 2026 December 31, 2025 June 30, 2025 (In millions) E&M $ 3,334.8 $ 4,163.2 $ 2,843.8 $ 2,568.1 T&D 306.7 388.4 384.5 410.1 Total $ 3,641.5 $ 4,551.6 $ 3,228.3 $ 2,978.2 Changes in backlog from period to period are primarily the result of fluctuations in the timing of contract awards and timing of revenue recognition of contracts. 45 Non-GAAP Financial Measures All financial information presented in this Quarterly Report has been prepared in U.S. dollars in accordance with generally accepted accounting principles in the United States (“GAAP”), except for the presentation of the following non-GAAP financial measures: EBITDA, EBITDA margin and free cash flow. We evaluate our operating performance using EBITDA and EBITDA margin, and we evaluate our liquidity using free cash flow. These non-GAAP financial measures are not intended as alternatives to GAAP financial measures and have limitations as an analytical tool and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Because of these limitations, EBITDA, EBITDA margin and free cash flow should not be considered as replacements for net income, net income margin or cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ EBITDA, EBITDA margin and free cash flow having the same or similar names. EBITDA and EBITDA Margin We utilize EBITDA and EBITDA margin to consistently assess our operating performance and as a basis for strategic planning and forecasting, since we believe that EBITDA closely correlates to long-term enterprise value. We believe that measuring performance on an EBITDA basis is useful to investors, because it enables a more consistent evaluation of our operational performance period to period. We also believe these non-GAAP financial measures, in addition to the corresponding GAAP measures of net income and net income margin, are useful to investors to provide meaningful information about operational efficiency by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Investors also may use EBITDA to calculate leverage as a multiple of EBITDA. We use EBITDA and EBITDA margin, in addition to GAAP metrics, to evaluate our operating results, calculate compensation packages and determine leverage as a multiple of EBITDA to establish the appropriate funding of operations. EBITDA is calculated by adding back interest expense, net of interest income, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues. EBITDA and EBITDA margin are considered non-GAAP financial measures and are comparable to the corresponding GAAP measures of net income and net income margin, respectively. The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin. Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (In millions, except percentages) Net income $ 83.9 $ 52.8 $ 142.2 $ 89.5 Interest expense, net 3.3 4.8 5.6 9.5 Income taxes 29.4 19.4 49.7 33.0 Depreciation and amortization 12.0 7.2 20.0 14.0 EBITDA $ 128.6 $ 84.2 $ 217.5 $ 146.0 Operating revenues $ 1,231.6 $ 921.5 $ 2,268.5 $ 1,748.1 Net income margin 6.8 % 5.7 % 6.3 % 5.1 % EBITDA margin 10.4 % 9.1 % 9.6 % 8.4 % Free Cash Flow We use free cash flow as a measure of liquidity that indicates how much cash we can produce after taking cash outflows from operations and assets into consideration. We believe this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about our financial health and our ability to generate cash, support additional debt obligations, pay potential future dividends and fund growth. Free cash flow does not represent our residual cash flow available for discretionary purposes. Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures. 46 The following table reconciles cash provided by operating activities to free cash flow. Six months ended June 30, 2026 2025 (In millions) Net cash used in investing activities $ (180.2) $ (25.7) Net cash used in financing activities $ (10.5) $ (8.1) Net cash provided by operating activities $ 196.8 $ 32.5 Capital expenditures (35.6) (31.6) Net proceeds from sale or disposition of property, plant and equipment 5.8 5.6 Free cash flow $ 167.0 $ 6.5 Liquidity and Capital Resources As of June 30, 2026 and December 31, 2025, we had $176.7 million and $170.5 million of cash, cash equivalents and restricted cash, respectively, including $19.3 million and $17.8 million of restricted cash largely held by the Captive Cell, respectively. On April 2, 2026, we announced the acquisition of SE&M for initial base consideration of $158 million, subject to certain closing adjustments, funded by cash on hand. 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. To fund day-to-day operations, we may use cash on hand and third-party credit facilities that are available through certain credit arrangements we have in place. In addition, we have a centralized cash management model to monitor and help maximize daily cash flows for our cash needs. Our ability to fund our cash needs depends on the ongoing ability to generate cash from operations and obtain debt financing with competitive rates. We rely on access to capital markets as sources of liquidity for capital requirements not satisfied by cash flows from operations. Our principal uses of cash are to fund our operations, working capital needs, capital expenditures, repayment of borrowings and strategic business development transactions. On October 31, 2024, we entered into a five-year senior secured credit agreement (the “Credit Agreement”), whereby we have the capacity to incur indebtedness of up to $525.0 million, consisting of a $300.0 million term loan (“Term Loan”), in aggregate principal amount, and a $225.0 million revolving credit facility (“Revolving Credit Facility”). Letters of credit are available under the Credit Agreement in an aggregate amount of up to $50.0 million. The Term Loan and the Revolving Credit Facility both bear interest at an annual rate equal to adjusted term Secured Overnight Financing Rate, defined in a customary manner (“Term SOFR”) plus an applicable rate. The Credit Agreement contains financial covenants requiring us to maintain a maximum consolidated total net leverage ratio of 3.00:1.00 and a minimum interest coverage ratio of 3.00:1.00, in each case, measured as of the last day of each fiscal quarter. The consolidated total net leverage ratio may be increased at our option to 3.50:1.00 in connection with certain qualifying material acquisitions. The covenants also include restrictions on the sale of certain assets, loans and investments. 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. As of June 30, 2026 and December 31, 2025, we had $277.5 million and $285.0 million outstanding under the Term Loan, respectively, with $228.2 million of available capacity under the Revolving Credit Facility, net of $2.2 million of outstanding standby letters of credit, for each period presented. 47 In order to borrow under the debt instruments, we must be in compliance with the applicable covenants and certain other conditions, all of which we were in compliance with as of June 30, 2026. Non-compliance with applicable covenants or conditions may constitute an event of default under the Credit Agreement. Subject to any applicable cure periods, failure to remedy such a default may require us to pursue alternative sources of funding. For additional information on our debt arrangements, refer to Note 7 – Debt in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report. Working Capital Working capital, defined as current assets minus current liabilities, was $546.4 million and $560.2 million as of June 30, 2026 and December 31, 2025, respectively. Our working capital requirements may increase when we commence multiple projects or particularly large projects because labor, subcontractor, inventory and certain other costs typically become payable before the receivables resulting from work performed are collected. Working capital may also increase when we incur costs for work that is the subject of unpaid retainage, change orders and claims. 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 June 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. Capital Expenditures Our cash capital expenditures for the six months ended June 30, 2026, were $35.6 million, or $29.8 million net of proceeds from asset disposals, compared to $31.6 million, or $26.0 million net of proceeds from asset disposals, for the six months ended June 30, 2025. Capital expenditures were primarily used for vehicle, equipment and building investments to support the growth of our business. For the six months ended June 30, 2026 and 2025, capital expenditures were funded by internal sources and borrowings under our credit and financing arrangements. We expect capital expenditures and commitments for equipment purchase, lease and rental arrangements to be necessary for the foreseeable future in order to meet anticipated demand for our services. We still expect gross capital expenditures for full-year 2026 to be in the range of $90.0 million to $100.0 million. Actual capital expenditures may increase or decrease depending upon business activity levels, as well as ongoing assessments of equipment leasing versus purchasing decisions based on short- and long-term equipment requirements. We continuously monitor our capital expenditures for project delays and changes in economic viability and adjust, as necessary. We anticipate that the combination of cash on hand, cash flows from operations, credit facilities and issuances of debt and equity securities, if necessary, will provide sufficient funding to enable us to meet the need of future capital expenditures. We also continue to evaluate the potential for future acquisitions and other growth opportunities that would be incremental to our capital program; however, they are dependent on the availability of opportunities and, as a result, capital expenditures may vary significantly from the estimated range provided. Cash Flows The following table summarizes our net cash provided by (used in) operating, investing and financing activities for the six months ended June 30, 2026 and 2025: Six months ended June 30, 2026 2025 (In millions) Net cash provided by (used in): Operating activities $ 196.8 $ 32.5 Investing activities (180.1) (25.7) Financing activities (10.5) (8.1) Increase (decrease) in cash, cash equivalents and restricted cash 6.2 (1.3) Cash, cash equivalents and restricted cash - beginning of period 170.5 86.0 Cash, cash equivalents and restricted cash - end of period $ 176.7 $ 84.7 48 Operating Activities Cash provided by operating activities totaled $196.8 million for the six months ended June 30, 2026, compared to $32.5 million for the six months ended June 30, 2025, an increase of $164.3 million. The increase in cash provided by operating activities was primarily driven by favorable changes in operating assets and liabilities to support company growth and performance, including revenue growth, and increased operating results. These changes in operating assets and liabilities drove an increase in cash period-over-period with a source of cash of $21.8 million for the six months ended June 30, 2026, compared to a use of cash of $73.5 million for the six months ended June 30, 2025. The changes in operating assets and liabilities period-over-period were primarily related to increases in cash from changes in contract liabilities, contract assets, other current assets and other current liabilities of $75.9 million, $50.6 million, $18.6 million and $9.7 million, respectively, partially offset by decreases in cash from changes in receivables and accounts payable of $36.7 million and $16.7 million, respectively. Investing Activities Cash used in investing activities totaled $180.1 million for the six months ended June 30, 2026, compared to $25.7 million for the six months ended June 30, 2025, an increase of $154.4 million in cash used in investing. The increase in cash used in investing activities was primarily due to net cash outflows related to the SE&M acquisition of $147.6 million during the six months ended June 30, 2026, higher net capital expenditures of $3.8 million, and proceeds from insurance contracts of $2.2 million during the six months ended June 30, 2025 which did not recur in 2026. Financing Activities Cash used in financing activities totaled $10.5 million for the six months ended June 30, 2026, compared to $8.1 million for the six months ended June 30, 2025, an increase in cash used in financing activities of $2.4 million. The increase in cash used in financing activities was primarily the result of higher cash outflows related to the tax withholding on stock-based compensation. Material Cash Requirements There were no material changes in our contractual obligations from those reported in our 2025 Annual Report. For more information on our contractual obligations, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Material Cash Requirements” in our 2025 Annual Report. Off-Balance Sheet Arrangements As is common in our industry, we enter into certain off-balance sheet arrangements in the ordinary course of business that result in risks not directly reflected on our balance sheet. Our significant off-balance sheet transactions can include, but are not limited to, surety guarantees, performance guarantees, letters of credit obligations and firm purchase commitments for maintenance items, materials and lease obligations. Some of our customers require us to post performance bonds issued by a surety. Those bonds guarantee the customer that we will perform under the terms of a contract. In the event that we fail to perform under a contract, the customer may demand the surety to pay or perform under our bond. Surety bonds expire at various times ranging from final completion of a project to a period extending beyond contract completion in certain circumstances. Such amounts also can fluctuate from period to period based upon the mix and level of our bonded operating activity. Our relationship with our sureties is such that we will indemnify the sureties for any expenses they incur in connection with any of the bonds they issue on our behalf. As of June 30, 2026 and December 31, 2025, we had approximately $2.31 billion and $2.10 billion in surety bonds outstanding for projects, respectively. As of June 30, 2026 and December 31, 2025, approximately $1.85 billion and $1.66 billion of bonding was posted for E&M, respectively, and approximately $431.7 million and $410.0 million of bonding was posted for T&D, respectively. In addition, approximately $27.9 million of bonding was posted for Corporate and other for each period presented. These amounts were not reflected on the unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025. As of June 30, 2026 and December 31, 2025, the potential maximum payment amounts we would be required to make under the outstanding surety bonds were approximately $827.3 million and $767.7 million, respectively. As of both June 30, 2026 and December 31, 2025, the Company had $18.1 million of surety-backed standby letters of credit that were included in the bonding posted for Corporate and Other. 49 To date, we are not aware of any losses in connection with surety bonds that have been posted on our behalf, and we do not expect to incur significant losses in the foreseeable future. If we experience changes in our bonding relationships or if there are adverse changes in the surety industry, there would be no assurance that we would be able to effectuate alternatives to providing surety bonds to our customers or to obtain, on favorable terms, sufficient additional work that does not require surety bonds. Accordingly, a reduction in the availability of surety bonds could have a material adverse effect on our financial position, financial results and cash flows. We also guarantee obligations of our subsidiaries under certain contracts. Generally, we are liable under such an arrangement only if our subsidiary fails to perform its obligations under the contract. As of June 30, 2026 and December 31, 2025, the fixed maximum amounts guaranteed under these agreements aggregated to $858.3 million and $641.1 million, respectively. Historically, we have not incurred any substantial liabilities as a consequence of these guarantees. However, in the event of default under these guarantee obligations, we would be required to make payments to satisfy our guarantees. In addition to the above guarantees, there were $2.2 million of outstanding standby letters of credit for certain guarantees to third parties under our Revolving Credit Facility as of both June 30, 2026 and December 31, 2025. In the event we default under these letter-of-credit obligations, we would be obligated for reimbursement of payments made under the letters of credit. We do not have any other material financial guarantees or off-balance sheet arrangements other than those disclosed herein. For more information on the circumstances regarding our guarantees and off-balance sheet arrangements, refer to Note 13 – Commitments, Contingencies and Guarantees in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report. Recently Issued Accounting Pronouncements For a discussion of recently issued accounting standards, see Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report. Critical Accounting Estimates Except as disclosed below, there have been no other material changes in our critical accounting estimates from those that were disclosed in our 2025 Annual Report. For further information regarding our critical accounting estimates, please refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” included in our 2025 Annual Report. Valuation of Intangible Assets Intangible Assets The valuation of acquired intangible assets requires significant assumptions and estimates. In connection with the SE&M acquisition, the fair value of each finite-lived intangible asset acquired on the acquisition date was determined using the multi-period excess earnings method. For the valuation of customer relationships and backlog, various significant inputs and assumptions, including future revenues, contributory asset charges, discount rates, customer attrition rates and tax amortization benefit, were used to determine the respective gross intangible asset value as well as the appropriate amortization period. In addition, the fair value of the indefinite-lived intangible asset acquired on the acquisition date was determined using the relief from royalty method-profit split analysis, which used various significant inputs and assumptions, including market royalty rates, operating history, brand reputation, discount rates, long-term growth and capitalization rates, and tax amortization benefit. Contingent Consideration The valuation method for the acquisition-date fair value of the contingent consideration that is not subject to continued employment of the sellers involved the use of a Monte Carlo simulation model that used numerous significant inputs, including a risk-free rate, EBITDA volatility, EBITDA risk premium, and a credit risk-adjusted discount rate. 50