Cautionary Statement Regarding Forward-Looking Statements This quarterly report on Form 10-Q (“Report”), including the documents incorporated herein by reference, contains statements that are, or may be considered to be, “forward-looking statements” regarding the Company which represent our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for certain forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements included or incorporated by reference herein relate to matters that are not based on historical facts and reflect our current expectations as of the date of this Report, regarding items such as: our industry and business outlook, including relating to federal, state and municipal funding for projects, the residential home building market and demand from our customers; business strategy, including the integration of recent acquisitions and the potential for additional future acquisitions; expectations and estimates relating to our backlog; expectations concerning our market position; future operations; margins; profitability; capital expenditures; liquidity and capital resources; and other financial and operating information. Forward-looking statements may use or contain words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “will,” “would” and similar terms and phrases. Actual events, results and outcomes may differ materially from those anticipated, projected or assumed in the forward-looking statements due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, the following: •factors that affect demand for our services or demand in end markets, including economic recessions or volatile economic cycles; •cost escalations associated with our contracts, due to changes in availability, proximity and cost of construction materials and fuel for our equipment, geopolitical conflicts (such as the conflicts in Eastern Europe and the Middle East) and related disruptions to the global energy markets, changes in U.S. trade policies and retaliatory responses from other countries, and cost escalations associated with subcontractors and labor; •any action or inaction of suppliers, subcontractors, design engineers, joint venture partners, customers, competitors, banks, surety companies and others which is beyond our control, including the failure of suppliers, subcontractors and joint venture partners to perform their obligations; •factors that affect the accuracy of estimates inherent in the bidding for contracts, estimates of backlog, and “over time” revenue recognition accounting policies, including onsite conditions that differ materially from those assumed in the original bid, contract modifications, mechanical problems with machinery or equipment and effects of other risks referenced below; •changes in costs to lease, acquire or maintain our equipment; •changes in general economic conditions, including reductions in federal, state and local government funding for projects, changes in those governments’ budgets, practices, laws and regulations and interest rate fluctuations and other adverse economic factors beyond our control in our geographic markets; •the presence of competitors with greater financial resources or lower margin requirements than ours, and the impact of competitive bidders on our ability to obtain new backlog at reasonable margins acceptable to us; •design/build contracts which subject us to the risk of design errors and omissions; •our ability to obtain bonding or post letters of credit; •adverse weather conditions; •potential disruptions, failures or security breaches of the information technology systems on which we rely to conduct our business or failure to comply with laws and regulations regarding data privacy and cybersecurity; •potential risks and uncertainties relating to major public health crises; •our dependence on a limited number of significant customers; •our ability to attract and retain key personnel; •increased unionization of our workforce or labor costs and any work stoppages or slowdowns; •federal, state and local environmental laws and regulations where non-compliance can result in penalties and/or termination of contracts as well as civil and criminal liability; •our ability to obtain, maintain, and comply with governmental permits, licenses, and approvals; •citations issued by any governmental authority, including the Occupational Safety and Health Administration; •our ability to qualify as an eligible bidder under government contract criteria; •delays or difficulties related to the completion of our projects, including additional costs, reductions in revenues or the payment of liquidated damages, or delays or difficulties related to obtaining required governmental permits and approvals; •any prolonged shutdown of the government; •our ability to successfully identify, finance, complete and integrate recent and potential acquisitions or our ability to identify all liabilities associated with an acquired business or asset prior to our acquisition; •our ability to raise additional capital in the future on favorable terms or at all; •our ability to generate cash flows sufficient to fund our financial commitments and objectives; •our ability to meet the terms and conditions of our debt obligations and covenants; and •the other risks discussed in more detail in the Company’s annual report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”) under “Part I, Item 1A. Risk Factors,” other portions of this Report, or our other filings with the Securities and Exchange Commission (the “SEC”). In reading this Report, you should consider these factors carefully in evaluating any forward-looking statements and you are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements reflect our current expectations as of the date of this Report regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. Additional factors or risks that we currently deem immaterial, that are not presently known to us or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made. Further, we may make changes to our business plans that could affect our results. Although we believe that our plans, intentions and expectations reflected in, or suggested by, the forward-looking statements that we make in this Report are reasonable, we can provide no assurance that they will be achieved. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, and notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. 23 OVERVIEW General—Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society’s quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way. SIGNIFICANT TRANSACTIONS Stone Ridge Acquisition—On June 1, 2026, Sterling acquired substantially all of the assets of Pocatello, Idaho-based Stone Ridge Contracting, LLC. (“Stone Ridge”), a leading site development contractor. The purchase price was $178.0 million, consisting primarily of $140.0 million in cash and $27.4 million in common stock. Additionally, Stone Ridge has an earn-out opportunity of up to $15 million, contingent upon achievement of a certain EBITDA target. Stone Ridge is included in the Company’s E-Infrastructure Solutions segment. CEC Acquisition—On September 1, 2025, the Company acquired substantially all of the assets of Irving, Texas-based CEC Facilities Group, LLC (“CEC”), a leading specialty electrical and mechanical contractor. The purchase price was $561.6 million, consisting primarily of $442.9 million in cash and $79.5 million in common stock. Additionally, CEC has an earn-out opportunity of up to an aggregate of $80 million, contingent upon achieving certain operating income targets. CEC is included in the Company’s E-Infrastructure Solutions segment. MARKET OUTLOOK AND TRENDS We see favorable opportunities for long-term growth across each of our business segments. We remain focused on our strategic objectives, which include: 1) growth in our E-Infrastructure Solutions segment, with particular focus on large, high-value projects; 2) risk reduction through a continued shift in our Transportation Solutions business away from low-bid heavy highway work, and toward alternative delivery and design-build projects; 3) continuing to grow market share and geographic presence in Building Solutions; and 4) improving our margins in each of our segments. E-Infrastructure Solutions—Our E-Infrastructure Solutions business is driven by our customers’ investments in the development of data centers, semiconductor fabrication, advanced manufacturing facilities, e-commerce distribution centers and warehouses. We foresee significant growth opportunities tied to the implementation of multi-year capital deployment plans by data center customers, including hyperscalers, colocation providers and others. These investments are driven by the need to support the increasing use of cloud computing applications, increasing adoption and complexity of artificial intelligence applications and digital transformation across industries. Additionally, we continue to see significant opportunity related to the construction of manufacturing capacity in the U.S., including semiconductor fabrication. Following a decline that began in 2023, the e-commerce distribution sector began to strengthen in 2025 and we expect this momentum to continue in 2026. Transportation Solutions—Our Transportation Solutions business is primarily driven by federal, state and municipal funding. Federal funds, on average, provide 50% of annual State Department of Transportation capital outlays for highway and bridge projects. We benefit from a number of federal, state and local infrastructure investment programs. At the Federal level, the Infrastructure Investments and Jobs Act (“IIJA”), which establishes funding for the fiscal 2022 through 2026 time period, drove significant increases in transportation funding relative to the previous five-year law. The IIJA includes approximately $643 billion in funding for transportation programs ($432 billion for highways, $109 billion for transportation and $102 billion for rail), of which $284 billion is an increase over historic investment levels that will fund new transportation infrastructure. The IIJA also includes $25 billion of funding for airport modernization. As a result of the IIJA, we saw an increase in bid activity and project awards which started in the third quarter of 2022 and continued through 2025. In 2026, we expect that the combination of strong state-level funding in our core geographies and elevated federal funding will allow the transportation market to remain elevated relative to historical levels. Building Solutions—Our Building Solutions segment is comprised of our residential and commercial businesses. The segment is driven by new home starts in Dallas-Fort Worth, the segment’s largest market, and continued expansion in the Houston and Phoenix markets. Building Solutions' core customer base includes top national, regional and custom home builders in our areas. Beginning in the second half of 2024, demand from residential home builder customers began to decline, as prospective homebuyers struggled with affordability challenges. We anticipate that demand will remain muted in the near-term, 24 but believe the dynamics in our markets, including population growth and structural housing shortages, support a return to growth over a multi-year time period. BACKLOG A performance obligation is a promise in a contract with a customer to transfer a distinct good or service. Our remaining performance obligations (“RPOs”) represent the amount of revenues we expect to recognize in the future from our contract commitments on projects. For purposes of calculating RPOs, we include all estimated revenues attributable to consolidated joint ventures and variable interest entities. We disclose backlog (“Backlog”), a measure commonly used in our industry but not recognized under GAAP. Our methodology for determining Backlog may not be comparable to the methodologies used by other companies. Our Backlog, which previously consisted solely of RPOs, has expanded to include estimated orders from master service agreements (“MSAs”) due to the acquisition of Stone Ridge in the second quarter of 2026. We determine the estimated Backlog for these MSAs using recurring historical trends, factoring in seasonal demand and projected customer needs based upon ongoing communications. Generally, our customers are not contractually committed to specific volumes of services under our MSAs, and most of our contracts can be terminated on short notice even if we are not in default. As a result, estimates for Backlog are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected. The contracts in Backlog are typically completed in 6 to 36 months. Our unsigned awards (“Unsigned Awards”) are excluded from Backlog until the contract is executed by our customer. We refer to the combination of our Backlog and Unsigned Awards as “Combined Backlog.” Our book-to-burn ratio is determined by taking our additions to Backlog and dividing it by revenue for the applicable period. This metric allows management to monitor the Company’s business development efforts to ensure we grow our Backlog and our business over time, and management believes that this measure is useful to investors for the same reason. At June 30, 2026, our RPOs were $4.23 billion and our MSAs were $100.0 million, resulting in a total Backlog of $4.33 billion. This compares to December 31, 2025, when RPOs were $3.01 billion and MSAs were zero, resulting in a total Backlog of $3.01 billion. For the six months ended June 30, 2026, the Backlog book-to-burn ratio was 1.7X. Unsigned Awards were $1.28 billion at June 30, 2026 and $300.7 million at December 31, 2025, resulting in Combined Backlog of $5.62 billion and $3.31 billion at June 30, 2026 and December 31, 2025, respectively, with a book-to-burn ratio of 2.3X for the six months ended June 30, 2026. RESULTS OF OPERATIONS Consolidated Results Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 Revenues $ 1,168,179 $ 614,468 $ 1,993,854 $ 1,045,417 Gross profit 289,957 143,140 484,253 237,980 General and administrative expense (53,130) (33,987) (100,980) (68,618) Intangible asset amortization (7,492) (4,536) (14,585) (9,039) Acquisition related costs (12,528) (2,495) (13,935) (2,674) Earn-out expense (2,488) (1,343) (4,976) (2,686) Other operating income, net 4,942 3,785 7,298 5,677 Operating income 219,261 104,564 357,075 160,640 Interest income, net 709 1,906 333 3,501 Income before income taxes and noncontrolling interests 219,970 106,470 357,408 164,141 Income tax expense (51,324) (27,362) (84,997) (42,442) Less: Net income attributable to noncontrolling interests (12,820) (8,117) (20,616) (11,231) Net income attributable to Sterling common stockholders $ 155,826 $ 70,991 $ 251,795 $ 110,468 Gross margin 24.8 % 23.3 % 24.3 % 22.8 % 25 Revenues—Revenues were $1.17 billion for the second quarter of 2026, an increase of $553.7 million, or 90%, compared to the second quarter of 2025. The increase was driven by a $594.6 million increase in E-Infrastructure Solutions, partly offset by a $40.1 million decrease in Transportation Solutions and a $779 thousand decrease in Building Solutions. Revenues were $1.99 billion for the six months ended June 30, 2026, an increase of $948.4 million, or 91%, compared to the six months ended June 30, 2025. The increase was driven by a $974.1 million increase in E-Infrastructure Solutions and a $2.3 million increase in Building Solutions, partly offset by a $27.9 million decrease in Transportation Solutions. Gross profit and margin—Gross profit was $290.0 million for the second quarter of 2026, an increase of $146.8 million, or 103%, compared to the second quarter of 2025. The Company’s gross margin as a percentage of revenue increased to 24.8% in the second quarter of 2026, as compared to 23.3% in the second quarter of 2025. Gross profit was $484.3 million for the six months ended June 30, 2026, an increase of $246.3 million, or 103%, compared to the six months ended June 30, 2025. The Company’s gross margin as a percentage of revenue increased to 24.3% for the six months ended June 30, 2026, as compared to 22.8% for the six months ended June 30, 2025. The increases were driven by the aforementioned higher revenue volume and an improved project margin mix in our Transportation Solutions segment. Our contracts are of various sizes, of different expected profitability and in various stages of completion. The nearer a contract progresses toward completion, the more visibility the Company has in refining its estimate of total revenues (including incentives, delay penalties and change orders), costs and gross profit. Thus, gross profit as a percentage of revenues can increase or decrease from comparable and subsequent quarters due to variations among contracts and the stage of completion of contracts. General and administrative expense—General and administrative expenses were $53.1 million, or 4.5% of revenue, for the second quarter of 2026, compared to $34.0 million, or 5.5% of revenue, for the second quarter of 2025. General and administrative expenses were $101.0 million, or 5.1% of revenue, for the six months ended June 30, 2026, compared to $68.6 million, or 6.6% of revenue, for the six months ended June 30, 2025. The increases in expense reflects higher performance based compensation, increased headcount to support growth, and inflation in 2026. Interest, net—Combined interest expense and income was net interest income of $709 thousand for the second quarter of 2026, compared to net interest income of $1.9 million for the second quarter of 2025, and net interest income of $333 thousand for the six months ended June 30, 2026, compared to net interest income of $3.5 million for the six months ended June 30, 2025. The lower interest income in the 2026 periods was due to decreased interest rates on our lower average cash balance compared to the three and six months ended June 30, 2025. Income taxes—The effective income tax rate was 23.3% for the second quarter of 2026 and 23.8% for the six months ended June 30, 2026. The rates varied from the statutory rate primarily as a result of non-deductible compensation, state income taxes and other permanent differences. See Note 12 - Income Taxes for more information. Segment Results The Company’s operations consist of three reportable segments: E-Infrastructure Solutions, Transportation Solutions and Building Solutions. We incur certain expenses at the corporate level that relate to our business as a whole. A portion of these expenses are allocated to our business segments by various methods, but primarily on the basis of usage. The balance of the corporate level expenses are reported in the “Corporate G&A Expense” line, which is primarily comprised of corporate headquarters facility expense, the cost of the executive management team and other expenses pertaining to certain centralized functions that benefit the entire Company, but are not directly attributable to any specific business segment, such as corporate human resources, legal, governance, compliance and finance functions. 26 (In thousands) Three Months Ended June 30, Six Months Ended June 30, Revenues 2026 % of Revenue 2025 % of Revenue 2026 % of Revenue 2025 % of Revenue E-Infrastructure Solutions $ 905,001 78% $ 310,406 51% $ 1,502,733 75% $ 528,669 51% Transportation Solutions 156,692 13% 196,797 32% 289,555 15% 317,458 30% Building Solutions 106,486 9% 107,265 17% 201,566 10% 199,290 19% Total Revenues $ 1,168,179 $ 614,468 $ 1,993,854 $ 1,045,417 Operating Income E-Infrastructure Solutions $ 210,849 23.3% $ 83,767 27.0% $ 344,613 22.9% $ 130,409 24.7% Transportation Solutions 28,176 18.0% 25,975 13.2% 42,930 14.8% 37,228 11.7% Building Solutions 8,490 8.0% 9,855 9.2% 14,705 7.3% 22,207 11.1% Segment Operating Income 247,515 21.2% 119,597 19.5% 402,248 20.2% 189,844 18.2% Corporate G&A Expense (13,238) (11,195) (26,262) (23,844) Acquisition Related Costs (12,528) (2,495) (13,935) (2,674) Earn-out Expense (2,488) (1,343) (4,976) (2,686) Total Operating Income $ 219,261 18.8% $ 104,564 17.0% $ 357,075 17.9% $ 160,640 15.4% E-Infrastructure Solutions Revenues—Revenues were $905.0 million for the second quarter of 2026, an increase of $594.6 million, or 192%, compared to the second quarter of 2025. Revenues were $1.50 billion for the six months ended June 30, 2026, an increase of $974.1 million, or 184%, compared to the six months ended June 30, 2025. The increases were primarily driven by higher volume from large mission-critical projects and the inclusion of $239.9 million and $396.0 million for the three and six months ended June 30, 2026, respectively, of revenue from the electrical and mechanical business acquired late in the third quarter of 2025. Operating Income—Operating income was $210.8 million, or 23.3% of revenue, for the second quarter of 2026, an increase of $127.1 million, compared to $83.8 million, or 27.0% of revenue, for the second quarter of 2025. Operating income was $344.6 million, or 22.9% of revenue, for the six months ended June 30, 2026, an increase of $214.2 million, compared to $130.4 million, or 24.7% of revenue, for the six months ended June 30, 2025. The increases in operating income were primarily driven by higher volume from large mission-critical projects, and partly attributable to $25.2 million (inclusive of $2.3 million of intangible amortization) and $37.5 million (inclusive of $4.6 million of intangible amortization) of contributions for the three and six months ended June 30, 2026, respectively, from the electrical and mechanical business acquired late in the third quarter of 2025. Transportation Solutions Revenues—Revenues were $156.7 million for the second quarter of 2026, a decrease of $40.1 million, or 20%, compared to the second quarter of 2025. Revenues were $289.6 million for the six months ended June 30, 2026, a decrease of $27.9 million, or 9%, compared to the six months ended June 30, 2025. The decreases were driven by lower heavy highway and other revenue. Operating Income—Operating income was $28.2 million, or 18.0% of revenue, for the second quarter of 2026, an increase of $2.2 million, compared to $26.0 million, or 13.2% of revenue, for the second quarter of 2025. Operating income was $42.9 million, or 14.8% of revenue, for the six months ended June 30, 2026, an increase of $5.7 million, compared to $37.2 million, or 11.7% of revenue, for the six months ended June 30, 2025. The increases in operating income and margin were driven by an improved project margin mix. Building Solutions Revenues—Revenues were $106.5 million for the second quarter of 2026, a decrease of $780 thousand, or 0.7%, compared to the second quarter of 2025. Revenues were $201.6 million for the six months ended June 30, 2026, an increase of $2.3 million, or 1.1%, compared to the six months ended June 30, 2025. Current year revenues remained relatively flat compared to 27 prior year periods as our businesses specializing in residential concrete slabs and plumbing are still being affected by a market downturn, as affordability issues continue to impact potential homebuyers. Operating Income—Operating income was $8.5 million, or 8.0% of revenue, for the second quarter of 2026, a decrease of $1.4 million, compared to $9.9 million, or 9.2% of revenue, for the second quarter of 2025. Operating income was $14.7 million, or 7.3% of revenue, for the six months ended June 30, 2026, a decrease of $7.5 million, compared to $22.2 million, or 11.1% of revenue, for the six months ended June 30, 2025. The decreases in operating income and margin were driven by a continued downturn in residential markets compared to the three and six months ended June 30, 2025. LIQUIDITY AND SOURCES OF CAPITAL Cash and Cash Equivalents—Total cash and cash equivalents at June 30, 2026 and December 31, 2025 includes the following components: (In thousands) June 30, 2026 December 31, 2025 Generally Available $ 306,856 $ 314,567 Construction Joint Ventures 157,595 76,154 Cash and cash equivalents $ 464,451 $ 390,721 The following table presents consolidated information about our cash flows: (In thousands) Six Months Ended June 30, Net cash provided by (used in): 2026 2025 Operating activities $ 328,021 $ 170,311 Investing activities (206,499) (66,477) Financing activities (47,792) (68,656) Net change in cash and cash equivalents $ 73,730 $ 35,178 Operating Activities—During the six months ended June 30, 2026, net cash provided by operating activities was $328.0 million, compared to net cash provided by operating activities of $170.3 million for the six months ended June 30, 2025. Cash flows provided by operating activities were primarily driven by higher operating income, the collection of receivables from affiliate, distributions of earnings from our unconsolidated subsidiary, and changes in our accounts receivable, net contracts in progress and accounts payable balances (collectively, “Contract Capital”), as discussed below. Changes in Contract Capital—The change in operating assets and liabilities varies due to fluctuations in operating activities and investments in Contract Capital. The changes in components of Contract Capital during the six months ended June 30, 2026 and 2025 were as follows: Six Months Ended June 30, (In thousands) 2026 2025 Contracts in progress, net $ 95,135 $ 47,138 Accounts receivable (242,353) (94,143) Receivables from and equity in construction joint ventures (801) (2,157) Accounts payable 79,914 24,524 Change in Contract Capital, net $ (68,105) $ (24,638) During the six months ended June 30, 2026, the change in Contract Capital was $68.1 million. The Company’s Contract Capital fluctuations are impacted by the mix of projects in Backlog, seasonality, the timing of new awards and related payments for work performed and the contract billings to the customer as projects are completed. Contract Capital is also impacted at period-end by the timing of accounts receivable collections and accounts payable payments for projects. Investing Activities—During the six months ended June 30, 2026, net cash used in investing activities was $206.5 million, compared to net cash used of $66.5 million in the six months ended June 30, 2025. The net cash used during the current period was driven by $140.0 million for acquisitions and $69.6 million for purchases of capital equipment, partly offset by $3.1 million of cash proceeds from the sale of property and equipment. Capital equipment is acquired as needed to support changing levels of production activities and to replace retiring equipment. Financing Activities—During the six months ended June 30, 2026, net cash used in financing activities was $47.8 million, compared to net cash used of $68.7 million for the six months ended June 30, 2025. The financing cash outflow during the period was primarily driven by $35.3 million for the repurchase of common stock, $11.9 million for withholding taxes paid on 28 the net share settlement of vested equity awards, $7.8 million of earn-out payments, and $7.5 million of repayments on the Term Loan Facility, partly offset by $14.7 million of capital contributions from noncontrolling interest owners. Capital Strategy—The Company will continue to explore additional revenue growth and capital alternatives to strengthen its financial position in order to take advantage of trends in the markets in which we operate. The Company also expects to continue to pursue strategic uses of its cash, such as investing in projects or businesses that meet its gross margin and overall profitability targets, managing its debt balances and repurchasing shares of its common stock. JOINT VENTURES We participate in various construction joint venture partnerships in order to share expertise, risk and resources for certain highly complex projects. The joint venture’s contract with the project owner typically requires joint and several liability among the joint venture partners. Although our agreements with our joint venture partners provide that each party will assume and fund its share of any losses resulting from a project, if one of our partners is unable to pay its share, we would be fully liable for such share under our contract with the project owner. Circumstances that could lead to a loss under these guarantee arrangements include a partner’s inability to contribute additional funds to the venture in the event that the project incurred a loss or additional costs that we could incur should the partner fail to provide the services and resources toward project completion to which it committed in the joint venture agreement. See the 2025 Form 10-K under “Part I, Item 1A. Risk Factors.” At June 30, 2026, there was approximately $376 million of construction work to be completed on unconsolidated construction joint venture contracts, of which approximately $151 million represented our proportionate share. Due to the joint and several liability under our joint venture arrangements, if one of our joint venture partners fails to perform, we and the remaining joint venture partners would be responsible for completion of the outstanding work. As of June 30, 2026, we are not aware of any situation that would require us to fulfill responsibilities of our joint venture partners pursuant to the joint and several liability under our contracts. NEW ACCOUNTING STANDARDS See the applicable section of Note 2 - Basis of Presentation and Significant Accounting Policies for a discussion of new accounting standards. CRITICAL ACCOUNTING ESTIMATES There have been no material changes to the Company’s discussion of critical accounting estimates from those described in Item 7 of our 2025 Form 10-K.