0001558370-25-001222 | 10-K | XBRL Viewer

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Maturities of lease liabilities:
2025	$ 41,442
2026	37,819
2027	33,246
2028	29,286
2029	25,518
Thereafter	170,630
Total Lease Payments	337,941
Less-present value discount	(97,676)
Present value of operating lease liabilities	240,265	$ 212,562
Supplemental information related to leases:
Cash paid for amounts included in the measurement of operating lease liabilities	39,702	29,454
Operating lease right-of-use assets obtained in exchange for lease liabilities	$ 54,344	$ 101,010

Summary of Significant Accounting Policies and Estimates - Investments (Details) $ in Millions	Dec. 31, 2024 USD ($)
Summary of Significant Accounting Policies and Estimates
Investment fair value	$ 6.8

Summary of Significant Accounting Policies and Estimates - Risk (Details)	12 Months Ended
	Dec. 31, 2024
Warranty Costs
Labor warranty period after servicing of existing MEP system	30 days
Revenue \| Customer concentration \| Minimum
Warranty Costs
Single customer, percentage	13.30%
Receivables \| Customer concentration \| Minimum
Warranty Costs
Single customer, percentage	17.70%

Acquisitions

12 Months Ended

Dec. 31, 2024

Acquisitions

Acquisitions

5. Acquisitions

Summit Industrial Construction, LLC Acquisition

On February 1, 2024, we acquired Summit Industrial Construction, LLC (“Summit”). Summit is headquartered in Houston, Texas, and is a specialty industrial contractor offering engineering, design-assist and turnkey, direct hire construction services of systems serving the advanced technology, power, and industrial sectors. As a result of the acquisition, Summit is a wholly owned subsidiary of the Company reported in our mechanical segment. Revenue attributable to Summit was $420.1 million for the eleven months from the acquisition date.

The following summarizes the acquisition date fair value of consideration transferred and the acquisition date fair value of the identifiable assets acquired and liabilities assumed, including an amount for goodwill (in thousands):


Consideration transferred:
Cash paid at closing	$	267,500
Working capital adjustment		14,602
Notes issued to former owners		35,000
Estimated fair value of contingent earn-out payments		42,732
	$	359,834
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	$	171,027
Billed and unbilled accounts receivable		59,846
Prepaid expenses and other		1,476
Cost and estimated earnings in excess of billings		578
Property and equipment		2,528
Lease right-of-use asset		2,364
Goodwill		155,345
Identifiable intangible assets		170,100
Other noncurrent assets		136
Accounts payable		(15,130)
Billings in excess of costs and estimated earnings and deferred revenue		(179,895)
Current operating lease liabilities		(1,495)
Accrued expenses and other current liabilities		(6,293)
Long-term operating lease liabilities		(753)
	$	359,834

Goodwill represents the future economic benefits arising from other assets acquired that cannot be individually identified and separately recognized. The goodwill recognized as a result of the Summit acquisition is deductible for tax purposes.

customer relationships, we utilized an excess earnings methodology, which consisted of the projected cash flows attributable to these assets discounted to present value using a risk-adjusted discount rate that represented the required rate of return. The trade name value was determined based on the relief-from-royalty method, which applies a royalty rate to the revenue stream attributable to this asset, and the resulting royalty payment is tax effected and discounted to present value. Some of the more significant estimates and assumptions inherent in determining the fair value of the identifiable intangible assets are associated with forecasting cash flows and profitability, which represent Level 3 inputs. The primary assumptions used were generally based upon the present value of anticipated cash flows discounted at rates ranging from 18.5% to 20.5%. Estimated years of projected earnings generally follow the range of estimated remaining useful lives for each intangible asset class.

The acquired intangible assets include the following (dollars in thousands):


	Valuation Method	Estimated Useful Life		Estimated Fair Value
Backlog	Excess earnings	1.7 years	$	35,800
Trade Name	Relief-from-royalty	22.9 years		11,300
Customer Relationships	Excess earnings	10 years		123,000
Total			$	170,100

The contingent earn-out obligation is associated with the achievement of four earnings milestones over a 47-month period, and the range of each estimated milestone payment is $2.6 million to $20.5 million. We determined the initial fair value of the contingent earn-out obligation based on the Monte Carlo Simulation method, which represents a Level 3 measurement. Cash flows were discounted using discount rates ranging from 18.2% to 19.5%, which we believe is appropriate and representative of a market participant assumption. Subsequent to the acquisition date, the contingent earn-out obligation is remeasured at fair value each reporting period and any change in the estimated fair value of the contingent payments is recognized immediately in earnings.

J & S Mechanical Contractors, Inc. Acquisition

On February 1, 2024, we acquired all of the issued and outstanding shares of capital stock of J & S Mechanical Contractors, Inc. (“J&S”). J&S is headquartered in West Jordan, Utah, and provides mechanical construction services to commercial and industrial sectors, specializing in data center HVAC systems and hospital medical gas systems. As a result of the acquisition, J&S is a wholly owned subsidiary of the Company reported in our mechanical segment. Revenue attributable to J&S was $150.1 million for the eleven months from the acquisition date.


Consideration transferred:
Cash paid at closing	$	100,000
Working capital adjustment		1,587
Notes issued to former owners		10,000
Estimated fair value of contingent earn-out payments		9,052
	$	120,639


Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	$	14,802
Billed and unbilled accounts receivable		38,411
Inventory		230
Prepaid expenses and other		397
Costs and estimated earnings in excess of billings		728
Property and equipment		2,674
Lease right-of-use asset		4,552
Goodwill		40,783
Identifiable intangible assets		63,300
Other noncurrent assets		10
Accounts payable		(20,649)
Billings in excess of costs and estimated earnings and deferred revenue		(19,188)
Current operating lease liabilities		(133)
Accrued expenses and other current liabilities		(907)
Long-term debt		(59)
Long-term operating lease liabilities		(4,312)
	$	120,639

In estimating the fair value of the acquired intangible assets, we utilized the valuation methodology determined to be the most appropriate for the individual intangible asset. In order to estimate the fair value of the backlog and customer relationships, we utilized an excess earnings methodology, which consisted of the projected cash flows attributable to these assets discounted to present value using a risk-adjusted discount rate that represented the required rate of return. The trade name value was determined based on the relief-from-royalty method, which applies a royalty rate to the revenue stream attributable to this asset, and the resulting royalty payment is tax effected and discounted to present value. Some of the more significant estimates and assumptions inherent in determining the fair value of the identifiable intangible assets are associated with forecasting cash flows and profitability, which represent Level 3 inputs. The primary assumptions used were generally based upon the present value of anticipated cash flows discounted at rates ranging from 15.5% to 17.0%. Estimated years of projected earnings generally follow the range of estimated remaining useful lives for each intangible asset class.

The acquired intangible assets include the following (dollars in thousands):


		Estimated	Estimated
	Valuation Method	Useful Life	Fair Value
Backlog	Excess earnings	1.7 years	$	12,900
Trade Name	Relief-from-royalty	22 years		10,600
Customer Relationships	Excess earnings	9 years		39,800
Total			$	63,300

The contingent earn-out obligation is associated with the achievement of three earnings milestones over a 35-month period, and the range of each estimated milestone payment is $1.1 million to $4.7 million. We determined the initial fair value of the contingent earn-out obligation based on the Monte Carlo Simulation method, which represents a Level 3 measurement. Cash flows were discounted using discount rates ranging from 15.4% to 16.5%, which we believe is appropriate and representative of a market participant assumption. Subsequent to the acquisition date, the contingent earn-out obligation is remeasured at fair value each reporting period and any change in the estimated fair value of the contingent payments is recognized immediately in earnings.

Other Acquisitions

On May 1, 2024, we acquired all of the issued and outstanding membership interests of a plumbing service provider in North Carolina for a total preliminary purchase price of $39.9 million, which is reported in our mechanical segment.

On October 2, 2023, we acquired all of the issued and outstanding shares of capital stock of DECCO, Inc. (“DECCO”), headquartered in Nashua, New Hampshire, for a total purchase price of $59.8 million, which included $48.8 million of cash paid on the closing date, $7.0 million in notes payable to the former owners, an earn-out that will be paid if certain financial targets are met after the acquisition date and a working capital adjustment. DECCO operates in the Northeastern United States and performs mechanical and plumbing services with specialties in piping systems, steam, power, biotechnical processes and conveying systems, in addition to turnkey tool and equipment installation, critical equipment handling services and associated maintenance and support services. As a result of the acquisition, DECCO is a wholly owned subsidiary of the Company reported in our mechanical segment. The goodwill recognized as a result of the DECCO acquisition is not deductible for tax purposes.

On February 1, 2023, we acquired all of the issued and outstanding shares of capital stock of Eldeco, Inc. (“Eldeco”), headquartered in South Carolina, for a total purchase price of $74.0 million, which included $60.8 million of cash paid on the closing date, $8.0 million in notes payable to the former owners, an earn-out that will be paid if certain financial targets are met after the acquisition date and a working capital adjustment. Eldeco performs electrical design and construction services in the Southeastern region of the United States. As a result of the acquisition, Eldeco is a wholly owned subsidiary of the Company reported in our electrical segment. The goodwill recognized as a result of the Eldeco acquisition is deductible for tax purposes.

The results of operations of acquisitions are included in our consolidated financial statements from their respective acquisition dates. Our Consolidated Balance Sheet includes preliminary allocations of the purchase price to the assets acquired and liabilities assumed for the applicable acquisitions pending the completion of the final valuation of intangible assets and accrued liabilities. The acquisitions completed in the current and prior year were not material, individually or in the aggregate. Additional contingent purchase price (“earn-out”) has been or will be paid if certain acquisitions achieve predetermined profitability targets. Such earn-outs, when they are not subject to the continued employment of the sellers, are estimated as of the purchase date and included as part of the consideration paid for the acquisition. If we have an earn-out under which continued employment is a condition to receipt of payment, then the earn-out is recorded as compensation expense over the period earned.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS
Billed accounts receivable, allowance for credit losses (in dollars)	$ 15,286	$ 11,926
Unbilled accounts receivable, allowance for credit losses (in dollars)	1,475	850
Other receivables, allowance for credit losses (in dollars)	553	522
Costs and estimated earnings in excess of billings, allowance for credit losses (in dollars)	$ 271	$ 79
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	102,969,912	102,969,912
Common stock, shares issued	41,123,365	41,123,365
Treasury stock, shares	5,562,453	5,438,625

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 522,433	$ 323,398	$ 245,947
Adjustments to reconcile net income to net cash provided by operating activities-
Amortization of identifiable intangible assets	97,266	43,404	47,795
Depreciation expense	48,219	38,162	33,552
Change in right-of-use assets	30,950	25,964	21,557
Bad debt expense	6,952	4,944	2,670
Deferred tax provision (benefit)	(66,613)	95,296	(94,505)
Amortization of debt financing costs	687	685	786
Gain on sale of assets	(3,030)	(2,302)	(1,585)
Changes in the fair value of contingent earn-out obligations	88,146	23,607	4,819
Stock-based compensation	16,646	12,939	10,532
(Increase) decrease in-
Receivables, net	(333,233)	(381,555)	(223,178)
Inventories	6,544	(29,688)	(13,495)
Prepaid expenses and other current assets	(7,868)	(11,137)	(26,238)
Costs and estimated earnings in excess of billings and unbilled accounts receivable	(82,081)	7,350	(9,643)
Other noncurrent assets	(2,220)	(152)	(995)
Increase (decrease) in-
Accounts payable and other current liabilities	502,888	136,467	93,110
Billings in excess of costs and estimated earnings and deferred revenue	32,173	349,166	226,019
Other long-term liabilities	(8,802)	3,020	(15,617)
Net cash provided by operating activities	849,057	639,568	301,531
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(111,071)	(94,838)	(48,359)
Proceeds from sales of property and equipment	5,538	5,951	2,858
Cash paid for acquisitions, net of cash acquired	(235,466)	(102,261)	(49,217)
Payments for investments	(2,510)	(1,860)	(2,460)
Net cash used in investing activities	(343,509)	(193,008)	(97,178)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility	182,000	285,000	555,000
Payments on revolving credit facility	(182,000)	(500,000)	(560,000)
Payments on term loan			(120,000)
Proceeds from other debt	640
Payments on other debt	(26,576)	(12,033)	(12,256)
Payments on finance lease liabilities			(899)
Debt financing costs			(2,297)
Payments of dividends to stockholders	(42,766)	(30,379)	(20,077)
Share repurchases	(57,912)	(21,184)	(38,216)
Shares received in lieu of tax withholding	(8,915)	(4,725)	(3,247)
Proceeds from exercise of options	184	18	1,086
Deferred acquisition payments	(50)		(50)
Payments for contingent consideration arrangements	(25,364)	(15,321)	(4,959)
Net cash used in financing activities	(160,759)	(298,624)	(205,915)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	344,789	147,936	(1,562)
CASH AND CASH EQUIVALENTS, beginning of period	205,150	57,214	58,776
CASH AND CASH EQUIVALENTS, end of period	$ 549,939	$ 205,150	$ 57,214

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Measurements

Summary of fair values and levels within the fair value hierarchy in which the fair value measurements fall for assets and liabilities measured on a recurring basis

The following table summarizes the fair values, and levels within the fair value hierarchy in which the fair value measurements are included, for assets and liabilities measured on a recurring basis as of December 31, 2024 and 2023 (in thousands):


	Fair Value Measurements at December 31, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	549,939	$	—	$	—	$	549,939
Contingent earn-out obligations	$	—	$	—	$	140,156	$	140,156

	Fair Value Measurements at December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	205,150	$	—	$	—	$	205,150
Life insurance—cash surrender value	$	—	$	7,473	$	—	$	7,473
Contingent earn-out obligations	$	—	$	—	$	44,222	$	44,222

Schedule of reconciliation of the fair value of contingent earn-out obligations that use significant unobservable inputs (Level 3)

The table below presents a reconciliation of the fair value of our contingent earn-out obligations that use significant unobservable inputs (Level 3) (in thousands):


	Year Ended		Year Ended
	December 31, 2024		December 31, 2023
Balance at beginning of year	$	44,222	$	32,317
Issuances		51,784		4,315
Settlements		(43,996)		(16,017)
Adjustments to fair value		88,146		23,607
Balance at end of year	$	140,156	$	44,222

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Employee Benefit Plans (Details) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) $ in Millions	Dec. 31, 2024 USD ($) employee	Dec. 31, 2023 USD ($) employee	Dec. 31, 2022 USD ($)
Employee Benefit Plans
Percentage of contributions of covered employees' salaries or wages	2.50%
Contribution	$ 35.3	$ 22.9	$ 19.8
Number of employees who are union members \| employee	50	7
Contributions made to multi-employer pension plans	$ 0.0	$ 0.0	$ 0.0
Combined face value of life insurance policies	101.9	87.8
Cash surrender value	$ 9.0	$ 7.5

Employee Benefit Plans

12 Months Ended

Dec. 31, 2024

Employee Benefit Plans

Employee Benefit Plans

12. Employee Benefit Plans

We and certain of our subsidiaries sponsor various retirement plans for most full-time and some part-time employees. These plans primarily consist of defined contribution plans. The defined contribution plans generally provide for contributions up to 2.5% of covered employees’ salaries or wages, although a few of the plans’ employer contributions are discretionary in nature. These contributions totaled $35.3 million in 2024, $22.9 million in 2023 and $19.8 million in 2022.

Certain of our subsidiaries also participate or have participated in various multi-employer pension plans for the benefit of employees who are union members. As of December 31, 2024 and 2023, we had 50 and 7 employees, respectively, who were union members. There were no contributions made to multi-employer pension plans in 2024, 2023 or 2022. The data available from administrators of other multi-employer pension plans is not sufficient to determine the accumulated benefit obligations, nor the net assets attributable to the multi-employer plans in which our employees participate or previously participated.

As of December 31, 2024, we had life insurance policies covering certain employees, with a combined face value of $101.9 million. The policies are invested in several investment vehicles and are recorded at their cash surrender value. The cash surrender values associated with these policies were $9.0 million and $7.5 million as of December 31, 2024 and December 31, 2023, respectively, and are included in “Other Noncurrent Assets” in our Consolidated Balance Sheet.

Goodwill and Identifiable Intangible Assets, Net - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Changes in the carrying amount of goodwill
Balance at beginning of year	$ 666,834	$ 611,789
Acquisitions and purchase price adjustments (See Note 5)	208,436	55,045
Balance at end of period	875,270	666,834
Mechanical Segment
Changes in the carrying amount of goodwill
Balance at beginning of year	393,276	363,929
Acquisitions and purchase price adjustments (See Note 5)	208,236	29,347
Balance at end of period	601,512	393,276
Accumulated impairment charges	116,600	116,600
Electrical Segment
Changes in the carrying amount of goodwill
Balance at beginning of year	273,558	247,860
Acquisitions and purchase price adjustments (See Note 5)	200	25,698
Balance at end of period	$ 273,758	$ 273,558

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

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+ Details

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2024

Revenue from Contracts with Customers

Schedule of disaggregation of revenue

Our consolidated 2024 revenue was derived from contracts to provide service activities in the mechanical and electrical segments we serve. Refer to Note 16 “Segment Information” for additional information on our reportable segments. We disaggregate our revenue from contracts with customers by activity, customer type and service provided, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the following tables (dollars in thousands):


	Year Ended December 31,
Revenue by Service Provided	2024				2023				2022
Mechanical Segment	$	5,527,604	78.7	%	$	3,946,022	75.8	%	$	3,178,475	76.8	%
Electrical Segment		1,499,872	21.3	%		1,260,738	24.2	%		961,889	23.2	%
Total	$	7,027,476	100.0	%	$	5,206,760	100.0	%	$	4,140,364	100.0	%

	Year Ended December 31,
Revenue by Type of Customer	2024				2023				2022
Technology	$	2,331,362	33.2	%	$	1,114,382	21.4	%	$	546,290	13.2	%
Manufacturing		1,919,403	27.3	%		1,751,684	33.6	%		1,426,962	34.5	%
Education		702,706	10.0	%		493,982	9.5	%		445,638	10.8	%
Healthcare		584,902	8.3	%		554,906	10.6	%		584,023	14.1	%
Office Buildings		424,343	6.0	%		400,754	7.7	%		349,235	8.4	%
Retail, Restaurants and Entertainment		377,302	5.4	%		310,381	6.0	%		311,697	7.5	%
Government		375,201	5.4	%		301,837	5.8	%		255,314	6.2	%
Multi-Family and Residential		142,133	2.0	%		181,780	3.5	%		126,339	3.0	%
Other		170,124	2.4	%		97,054	1.9	%		94,866	2.3	%
Total	$	7,027,476	100.0	%	$	5,206,760	100.0	%	$	4,140,364	100.0	%

	Year Ended December 31,
Revenue by Activity Type	2024				2023				2022
New Construction	$	3,984,529	56.7	%	$	2,853,239	54.8	%	$	2,011,992	48.6	%
Existing Building Construction		1,945,093	27.7	%		1,337,023	25.6	%		1,210,512	29.2	%
Service Projects		468,950	6.7	%		446,151	8.6	%		382,155	9.2	%
Service Calls, Maintenance and Monitoring		628,904	8.9	%		570,347	11.0	%		535,705	13.0	%
Total	$	7,027,476	100.0	%	$	5,206,760	100.0	%	$	4,140,364	100.0	%

Schedule of contract assets and liabilities

Contract assets and liabilities in the Consolidated Balance Sheet consisted of the following amounts as of December 31, 2024 and December 31, 2023 (in thousands):


	December 31, 2024		December 31, 2023
Contract assets:
Costs and estimated earnings in excess of billings, less allowance for credit losses	$	91,681	$	28,084
Contract liabilities:
Billings in excess of costs and estimated earnings and deferred revenue	$	1,149,257	$	909,538

Stock-Based Compensation (Details) - USD ($) $ in Millions	12 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Stock-Based Compensation
Stock-based compensation expense	$ 16.6	$ 12.9	$ 10.5
Income tax benefit	$ 3.5	$ 2.7	$ 2.2
Minimum
Stock-Based Compensation
Sum of age and years of service for accelerated vesting on retirement of certain stock options and restricted stock awards	75 years
Stock Options
Stock-Based Compensation
Vesting period	3 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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-Topic 718
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+ Details

Commitments and Contingencies - Self-Insurance (Details)	Dec. 31, 2024 USD ($) item
Self-Insurance
Amount of loss fully insured above per-incident deductible amount	$ 250,000,000
Amount of excess loss insurance covered	250,000,000
Workers Compensation
Self-Insurance
Per incident deductible amount	500,000
Amount of loss fully insured above per-incident deductible amount	500,000
Employers Liability [Member]
Self-Insurance
Per incident deductible amount	500,000
Employers Liability [Member] \| Maximum [Member]
Self-Insurance
Amount of excess loss insurance covered	250,000,000
General Liability [Member]
Self-Insurance
Per incident deductible amount	500,000
Amount of loss fully insured above per-incident deductible amount	9,500,000
General Liability [Member] \| Maximum [Member]
Self-Insurance
Amount of excess loss insurance covered	250,000,000
Auto Liability [Member]
Self-Insurance
Per incident deductible amount	500,000
Amount of loss fully insured above per-incident deductible amount	9,500,000
Auto Liability [Member] \| Maximum [Member]
Self-Insurance
Amount of excess loss insurance covered	$ 250,000,000
Employee Medical
Self-Insurance
Number of medical plans \| item	3
Employee Medical - Plan One
Self-Insurance
Per person, per policy deductible amount	$ 350,000
Employee Medical - Plan Two
Self-Insurance
Per person, per policy deductible amount	350,000
Employee Medical - Plan Three
Self-Insurance
Per incident deductible amount	$ 350,000

Revenue from Contracts with Customers - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Contracts in progress
Period during which progress billings or contract price can be withheld until completion of work	6 months
Retention receivable	$ 329.2	$ 245.0
Retention payable	$ 50.9	$ 32.9
Revenue, Performance Obligation, Description of Payment Terms	We typically invoice our customers with payment terms of net due in 30 days
Receivable payment terms (in days)	30 days
Minimum
Contracts in progress
Receivable payment terms (in days)	45 days
Payments received term (in days)	30 days
Maximum
Contracts in progress
Receivable payment terms (in days)	60 days
Payments received term (in days)	90 days

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Effective tax rates on continuing operations	21.60%	16.70%	(4.30%)
Federal statutory income tax rate (as a percent)	21.00%	21.00%	21.00%
Income taxes at the federal statutory rate	$ 139,978	$ 81,521	$ 49,530
Increases (decreases) resulting from-
Net state income taxes	25,748	14,278	9,376
Net unrecognized tax benefits	9,549	9,049	(17,922)
Nondeductible expenses	9,921	5,774	4,045
R&D tax credit	(36,216)	(43,791)	(51,398)
Other	(4,852)	(2,035)	(3,720)
Provision (benefit) for income taxes	$ 144,128	$ 64,796	$ (10,089)

Debt Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Obligations
Total debt	$ 68,335	$ 44,212
Less-current portion	(6,042)	(4,867)
Total long-term portion of debt, net	62,293	39,345
Notes to Former Owners
Debt Obligations
Total debt	67,593	44,070
Other debt
Debt Obligations
Total debt	$ 742	$ 142

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Acquisitions - Acquired Intangible Assets (Details) $ in Thousands		12 Months Ended
	Feb. 01, 2024 USD ($) Milestone	Dec. 31, 2024	Dec. 31, 2023
Acquisitions
Estimated Useful Life		9 years 1 month 6 days	10 years 2 months 12 days
Summit Texas
Acquisitions
Estimated Fair Value	$ 170,100
Summit Texas \| Minimum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	18.50%
Summit Texas \| Maximum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	20.50%
Summit Texas \| Contingent earn-out obligations
Acquisitions
Number of earnings milestones \| Milestone	4
Term of earnings milestones	47 months
Estimated milestone payment, upper range	$ 20,500
Estimated milestone payment, lower range	$ 2,600
Summit Texas \| Contingent earn-out obligations \| Minimum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	18.20%
Summit Texas \| Contingent earn-out obligations \| Maximum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	19.50%
Summit Texas \| Backlog
Acquisitions
Estimated Useful Life	1 year 8 months 12 days
Estimated Fair Value	$ 35,800
Summit Texas \| Trade Name
Acquisitions
Estimated Useful Life	22 years 10 months 24 days
Estimated Fair Value	$ 11,300
Summit Texas \| Customer Relationships
Acquisitions
Estimated Useful Life	10 years
Estimated Fair Value	$ 123,000
J&S Utah
Acquisitions
Estimated Fair Value	$ 63,300
J&S Utah \| Minimum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	15.50%
J&S Utah \| Maximum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	17.00%
J&S Utah \| Contingent earn-out obligations
Acquisitions
Number of earnings milestones \| Milestone	3
Term of earnings milestones	35 months
Estimated milestone payment, upper range	$ 4,700
Estimated milestone payment, lower range	$ 1,100
J&S Utah \| Contingent earn-out obligations \| Minimum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	15.40%
J&S Utah \| Contingent earn-out obligations \| Maximum \| Measurement Input, Inception Discount Rate
Acquisitions
Cash flow discount rate	16.50%
J&S Utah \| Backlog
Acquisitions
Estimated Useful Life	1 year 8 months 12 days
Estimated Fair Value	$ 12,900
J&S Utah \| Trade Name
Acquisitions
Estimated Useful Life	22 years
Estimated Fair Value	$ 10,600
J&S Utah \| Customer Relationships
Acquisitions
Estimated Useful Life	9 years
Estimated Fair Value	$ 39,800

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property and equipment
Property and equipment, gross	$ 526,817	$ 425,517
Less-Accumulated depreciation	(249,637)	(216,949)
Property and equipment, net	277,180	208,568
Depreciation expense	48,200	38,200	$ 33,600
Land
Property and equipment
Property and equipment, gross	12,898	8,437
Transportation equipment
Property and equipment
Property and equipment, gross	$ 223,741	188,073
Transportation equipment \| Minimum
Property and equipment
Estimated useful life	1 year
Transportation equipment \| Maximum
Property and equipment
Estimated useful life	7 years
Machinery and equipment
Property and equipment
Property and equipment, gross	$ 92,701	77,142
Machinery and equipment \| Minimum
Property and equipment
Estimated useful life	1 year
Machinery and equipment \| Maximum
Property and equipment
Estimated useful life	20 years
Computer and telephone equipment
Property and equipment
Property and equipment, gross	$ 32,636	29,052
Computer and telephone equipment \| Minimum
Property and equipment
Estimated useful life	1 year
Computer and telephone equipment \| Maximum
Property and equipment
Estimated useful life	10 years
Buildings and leasehold improvements
Property and equipment
Property and equipment, gross	$ 128,652	101,568
Buildings and leasehold improvements \| Minimum
Property and equipment
Estimated useful life	1 year
Buildings and leasehold improvements \| Maximum
Property and equipment
Estimated useful life	40 years
Furniture and fixtures
Property and equipment
Property and equipment, gross	$ 9,956	8,600
Furniture and fixtures \| Minimum
Property and equipment
Estimated useful life	1 year
Furniture and fixtures \| Maximum
Property and equipment
Estimated useful life	17 years
Construction in progress
Property and equipment
Property and equipment, gross	$ 26,233	$ 12,645

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2024

Revenue from Contracts with Customers

Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Sales-based taxes are excluded from revenue.

We provide mechanical and electrical contracting services. Our mechanical segment principally includes HVAC, plumbing, piping and controls, as well as off‑site construction, monitoring and fire protection. Our electrical segment includes installation and servicing of electrical systems. We build, install, maintain, repair and replace products and systems throughout the United States. All of our revenue is recognized over time as we deliver goods and services to our customers. Revenue can be earned based on an agreed-upon fixed price or based on actual costs incurred, marked up at an agreed-upon percentage.

For fixed price agreements, we use the cost-to-cost input method of accounting under which contract revenue recognizable at any time during the life of a contract is determined by multiplying expected total contract revenue by the percentage of contract costs incurred at any time to total estimated contract costs. More specifically, as part of the negotiation and bidding process to obtain installation contracts, we estimate our contract costs, which include all direct materials, labor and subcontract costs and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. These contract costs are included in our results of operations under the caption “Cost of Services.” Then, as we perform under those contracts, we measure costs incurred, compare them to total estimated costs to complete the contract and recognize a corresponding proportion of contract revenue. Labor costs are considered to be incurred as the work is performed. Subcontractor labor is recognized as the work is performed. Non‑labor project costs consist of purchased equipment, prefabricated materials and other materials. Purchased equipment on our projects is substantially produced to job specifications, normally installed shortly after receipt and is a value-added element to our work. Prefabricated materials, such as ductwork and piping, are generally made at our shops and recognized as contract costs when fabricated for the unique specifications of the job. Other materials costs are generally recorded when delivered to the work site. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments.

We account for a contract when: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the start of a project to be when the above criteria have been met and we either have written authorization from the customer to proceed or an executed contract.

Selling, marketing and estimation costs incurred in relation to selling contracts are expensed as incurred. On rare occasions, we may incur significant expenses related to selling a contract that we only incurred because we sold that contract. If this occurs, we capitalize that cost and amortize it on a completion percentage basis over the life of the contract. We do not currently have any capitalized selling, marketing, or estimation costs in our Consolidated Balance Sheet and did not incur any impairment loss on such costs in the current year.

We generally do not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. On rare occasions, when significant pre-contract costs are incurred, they are capitalized and amortized over the life of the contract using a cost-to-cost input method to measure progress towards contract completion. We do

not currently have any capitalized obtainment or fulfillment costs in our Consolidated Balance Sheet and have not incurred any impairment loss on such costs in the current year.

Project contracts typically provide for a schedule of billings or invoices to the customer based on our job-to-date completion percentage of specific tasks inherent in the fulfillment of our performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in our Consolidated Statement of Operations can, and usually does, differ from amounts that can be billed or invoiced to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceed cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in our Consolidated Balance Sheet under the caption “Costs and Estimated Earnings in Excess of Billings.” Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized on the contract are reflected as a current liability in our Consolidated Balance Sheet under the caption “Billings in Excess of Costs and Estimated Earnings and Deferred Revenue.”

Accounts receivable include amounts billed to customers under retention or retainage provisions in construction contracts. Such provisions are standard in our industry and usually allow for a small portion of progress billings or the contract price to be withheld by the customer until after we have completed work on the project, typically for a period of six months. Based on our experience with similar contracts in recent years, the majority of our billings for such retention balances at each Balance Sheet date are finalized and collected within the subsequent year. Retention balances at December 31, 2024 and 2023 were $329.2 million and $245.0 million, respectively, and are included in accounts receivable.

Accounts payable at December 31, 2024 and 2023 included $50.9 million and $32.9 million of retainage under terms of contracts with subcontractors, respectively. The majority of the retention balances at each Balance Sheet date are finalized and paid within the subsequent year.

The cost-to-cost input method of accounting is also affected by changes in job performance, job conditions, and final contract settlements. These factors may result in revisions to estimated costs and, therefore, revenue. Such revisions are frequently based on further estimates and subjective assessments. The effects of these revisions are recognized in the period in which revisions are determined. When such revisions lead to a conclusion that a loss will be recognized on a contract, the full amount of the estimated ultimate loss is recognized in the period such conclusion is reached, regardless of the completion percentage of the contract.

Revisions to project costs and conditions can give rise to change orders under which there is an agreement between the customer and us that the customer pays an additional or reduced contract price. Revisions can also result in claims we might make against the customer to recover project variances that have not been satisfactorily addressed through change orders with the customer. The amount of revenue associated with unapproved change orders and claims was immaterial for the years ended December 31, 2024, December 31, 2023 and December 31, 2022.

Variations from estimated project costs could have a significant impact on our operating results, depending on project size, and the recoverability of the variation from change orders collected from customers.

We typically invoice our customers with payment terms of net due in 30 days. It is common in the construction industry for a contract to specify more lenient payment terms allowing the customer 45 to 60 days to make their payment. It is also common for a contract in the construction industry to specify that a general contractor is not required to submit payments to a subcontractor until it has received those funds from the owner or funding source. In most instances, we receive payment of our invoices within between 30 to 90 days of the date of the invoice.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one performance obligation and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance

obligations could change the amount of revenue and profit recorded in a given period. For most of our contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability (even if that single project results in the delivery of multiple units). Hence, the entire contract is accounted for as one performance obligation. Less commonly, however, we may promise to provide distinct goods or services within a contract, in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We infrequently sell standard products with observable standalone sales. In such cases, the observable standalone sales are used to determine the standalone selling price. More frequently, we sell a customized, customer-specific solution, and, in these cases, we typically use the expected cost plus a margin approach to estimate the standalone selling price of each performance obligation.

We recognize revenue over time for all of our services as we perform them because (i) control continuously transfers to the customer as work progresses, and (ii) we have the right to bill the customer as costs are incurred. The customer typically controls the work in process, as evidenced either by contractual termination clauses or by our rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to the Company.

Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion (the process described below in more detail) is complex, subject to many variables and requires significant judgment. The consideration to which we are entitled on our long-term contracts may include both fixed and variable amounts. Variable amounts can either increase or decrease the transaction price. A common example of variable amounts that can either increase or decrease contract value are pending change orders that represent contract modifications for which a change in scope has been authorized or acknowledged by our customer, but the final adjustment to contract price is yet to be negotiated. Other examples of positive variable revenue include amounts awarded upon achievement of certain performance metrics, program milestones or cost of completion date targets and can be based upon customer discretion. Variable amounts can result in a deduction from contract revenue if we fail to meet stated performance requirements, such as complying with the construction schedule.

We include estimated amounts of variable consideration in the contract price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the contract price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. We reassess the amount of variable consideration each accounting period until the uncertainty associated with the variable consideration is resolved. Changes in the assessed amount of variable consideration are accounted for prospectively as a cumulative adjustment to revenue recognized in the current period.

Contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing performance obligation(s). The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catch-up basis.

We have a Company-wide policy requiring periodic review of the Estimate at Completion in which management reviews the progress and execution of our performance obligations and estimated remaining obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenue and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g., the number and type of milestone events), technical requirements (e.g., a newly developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g., to estimate increases in wages and prices for materials and related support cost allocations), execution by our subcontractors, the availability and timing of funding from our customer, and overhead cost rates, among other variables.

Based on this analysis, any adjustments to revenue, cost of services, and the related impact to operating income are recognized as necessary in the quarter when they become known. These adjustments may result from positive program performance if we determine we will be successful in mitigating risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities and may result in an increase in operating income during the performance of individual performance obligations. Likewise, if we determine we will not be successful in mitigating these risks or realizing related opportunities, these adjustments may result in a decrease in operating income. Changes in estimates of revenue, cost of services and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, meaning we recognize in the current period the cumulative effect of the changes on current and prior periods based on our progress towards complete satisfaction of a performance obligation. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. For projects in which estimates of total costs to be incurred on a performance obligation exceed total estimates of revenue to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined.

The Company typically does not incur any returns, refunds, or similar obligations after the completion of the performance obligation since any deficiencies are corrected during the course of the work or are included as a modification to revenue. The Company does offer an industry standard warranty on our work, which is most commonly for a one-year period. The vendors providing the equipment and materials are responsible for any failures in their product unless installed incorrectly. We include an estimated amount to cover estimated warranty expense in our Cost of Services and record a liability in our Consolidated Balance Sheet to cover our current estimated outstanding warranty obligations.

During the years ended December 31, 2024, December 31, 2023 and December 31, 2022, net revenue recognized from our performance obligations partially satisfied in the previous period positively impacted revenue by 2.3%, 1.3% and 1.1%, respectively, as a result of changes in estimates associated with performance obligations on contracts.

Disaggregation of Revenue


	Year Ended December 31,
Revenue by Service Provided	2024				2023				2022
Mechanical Segment	$	5,527,604	78.7	%	$	3,946,022	75.8	%	$	3,178,475	76.8	%
Electrical Segment		1,499,872	21.3	%		1,260,738	24.2	%		961,889	23.2	%
Total	$	7,027,476	100.0	%	$	5,206,760	100.0	%	$	4,140,364	100.0	%

	Year Ended December 31,
Revenue by Type of Customer	2024				2023				2022
Technology	$	2,331,362	33.2	%	$	1,114,382	21.4	%	$	546,290	13.2	%
Manufacturing		1,919,403	27.3	%		1,751,684	33.6	%		1,426,962	34.5	%
Education		702,706	10.0	%		493,982	9.5	%		445,638	10.8	%
Healthcare		584,902	8.3	%		554,906	10.6	%		584,023	14.1	%
Office Buildings		424,343	6.0	%		400,754	7.7	%		349,235	8.4	%
Retail, Restaurants and Entertainment		377,302	5.4	%		310,381	6.0	%		311,697	7.5	%
Government		375,201	5.4	%		301,837	5.8	%		255,314	6.2	%
Multi-Family and Residential		142,133	2.0	%		181,780	3.5	%		126,339	3.0	%
Other		170,124	2.4	%		97,054	1.9	%		94,866	2.3	%
Total	$	7,027,476	100.0	%	$	5,206,760	100.0	%	$	4,140,364	100.0	%

	Year Ended December 31,
Revenue by Activity Type	2024				2023				2022
New Construction	$	3,984,529	56.7	%	$	2,853,239	54.8	%	$	2,011,992	48.6	%
Existing Building Construction		1,945,093	27.7	%		1,337,023	25.6	%		1,210,512	29.2	%
Service Projects		468,950	6.7	%		446,151	8.6	%		382,155	9.2	%
Service Calls, Maintenance and Monitoring		628,904	8.9	%		570,347	11.0	%		535,705	13.0	%
Total	$	7,027,476	100.0	%	$	5,206,760	100.0	%	$	4,140,364	100.0	%

Contract Assets and Liabilities

Contract assets include unbilled amounts typically resulting from sales under long term contracts when the cost-to-cost method of revenue recognition is used, revenue recognized exceeds the amount billed to the customer and right to payment is conditional or subject to completing a milestone, such as a phase of the project. Contract assets are not considered to have a significant financing component, as they are intended to protect the customer in the event that we do not perform our obligations under the contract.

Contract liabilities consist of advance payments and billings in excess of revenue recognized. Advanced payments from customers related to work not yet started are classified as deferred revenue. Contract liabilities are not considered to have a significant financing component, as they are used to meet working capital requirements that are generally higher in the early stages of a contract and are intended to protect us from the other party failing to meet its obligations under the contract. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.

Contract assets and liabilities in the Consolidated Balance Sheet consisted of the following amounts as of December 31, 2024 and December 31, 2023 (in thousands):


	December 31, 2024		December 31, 2023
Contract assets:
Costs and estimated earnings in excess of billings, less allowance for credit losses	$	91,681	$	28,084
Contract liabilities:
Billings in excess of costs and estimated earnings and deferred revenue	$	1,149,257	$	909,538

Contract assets and liabilities fluctuate year to year based on various factors, including, but not limited to, the variability in billing and payment terms of customers and changes in the number and size of projects in progress at period end. Contract assets and contract liabilities increased from December 31, 2023 to December 31, 2024 by approximately $63.6 million and $239.7 million, respectively. Of the increase in contract assets, $59.9 million was driven by the timing of billings, which can sometimes be impacted by milestone billing agreements. Additionally, acquisitions in 2024 increased contract assets by $3.7 million. The increase in contract liabilities is primarily due to an increase of $207.5 million as a result of our 2024 acquisitions. Additionally, there was an increase of $32.2 million related to an increase in billings in excess of costs recognized on our performance obligations, primarily from the timing of billings on projects within the technology sector.

During the years ended December 31, 2024 and 2023, we recognized revenue of $816.8 million and $500.6 million related to our contract liabilities at January 1, 2024 and January 1, 2023, respectively.

We did not have any impairment losses recognized on our receivables or contract assets in 2024 and 2023.

Remaining Performance Obligations

Remaining construction performance obligations represent the remaining transaction price of firm orders for which work has not been performed and exclude unexercised contract options. As of December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $5.99 billion. The Company expects to recognize revenue on approximately 65-75% of the remaining performance obligations over the next 12 months, with the remaining recognized thereafter. Our service maintenance agreements are generally one-year renewable agreements. We have adopted the practical expedient that allows us to not include service maintenance contracts with a total term of one year or less; therefore, we do not report unfulfilled performance obligations for service maintenance agreements.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Debt Obligations - Future Payments and Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Future principal payments of long-term debt
2025	$ 6,042
2026	30,697
2027	26,029
2028	5,022
2029	545
Total debt	68,335
Interest expense
Interest expense on borrowings and unused commitment fees	1,434	$ 7,507	$ 10,955
Interest expense (income) on interest rate swaps			(332)
Interest expense on finance leases			4
Letter of credit fees	911	724	800
Amortization of debt financing costs	687	685	786
Total	6,648	10,281	13,352
Related Party
Interest expense
Interest expense on notes to former owners	$ 3,616	$ 1,365	$ 1,139

Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies

Commitments and Contingencies

13. Commitments and Contingencies

Claims and Lawsuits

We are subject to certain legal and regulatory claims, including lawsuits arising in the normal course of business. We maintain various insurance coverages to minimize financial risk associated with these claims. We have estimated and provided accruals for probable losses and related legal fees associated with certain litigation in the accompanying consolidated financial statements. While we cannot predict the outcome of these proceedings, in management’s opinion and based on reports of counsel, any liability arising from these matters individually and in the aggregate will not have a material effect on our operating results, cash flows or financial condition, after giving effect to provisions already recorded.

In 2023, we recorded a pre-tax gain of $6.8 million from legal developments and settlements that primarily relate to disputes with customers regarding the outcome of completed projects as well as an obligation to perform subcontract work under two executed letters of intent for subsequent projects that we believed were not enforceable. The pre-tax gain of $6.8 million was recorded as an increase in gross profit of $6.6 million, a reduction in SG&A of $0.7 million, an increase in interest income of $1.3 million and an increase in the change in fair value of contingent earn-out obligations expense of $1.8 million in our Consolidated Statement of Operations.

In 2022, we recorded a net gain of $5.1 million related to legal matters that merited changes to our assessments of the related accruals in the ordinary course of our business based on information received in 2022. The largest change resulted from favorable developments related to a dispute with a customer regarding the outcome of a completed project as well as the obligation to perform subcontract work under two executed letters of intent for subsequent projects that we believed were not enforceable. The net gain of $5.1 million was recorded primarily as an increase in gross profit in our Consolidated Statements of Operations.

As of December 31, 2024, we recorded an accrual for unresolved matters, which is not material to our financial statements, based on our analysis of likely outcomes related to the respective matters; however, it is possible that the ultimate outcome and associated costs will deviate from our estimates and that, in the event of an unexpectedly adverse outcome, we may experience additional costs and expenses in future periods.

Surety

Many customers, particularly in connection with new construction, require us to post performance and payment bonds issued by a financial institution known as a surety. If we fail to perform under the terms of a contract or to pay

subcontractors and vendors who provided goods or services under a contract, the customer may demand that the surety make payments or provide services under the bond. We must reimburse the surety for any expenses or outlays it incurs.

Current market conditions for surety markets and bonding capacity are adequate, with acceptable terms and conditions. Historically, approximately 10% to 20% of our business has required bonds. While we currently have strong surety relationships to support our bonding needs, future market conditions or changes in the sureties’ assessments of our operating and financial risk could cause the sureties to decline to issue bonds for our work. If that were to occur, the alternatives include doing more business that does not require bonds, posting other forms of collateral for project performance, such as letters of credit or cash, and seeking bonding capacity from other sureties. We would likely also encounter concerns from customers, suppliers and other market participants as to our creditworthiness. While we believe our general operating and financial characteristics would enable us to ultimately respond effectively to an interruption in the availability of bonding capacity, such an interruption would likely cause our revenue and profits to decline in the near term.

Self-Insurance

We are substantially self-insured for workers’ compensation, employer’s liability, auto liability, general liability and employee group health claims, in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses are estimated and accrued based upon known facts, historical trends and industry averages. Estimated losses in excess of our deductible, which have not already been paid, are included in our accrual with a corresponding receivable from our insurance carrier. Loss estimates associated with the larger and longer-developing risks, such as workers’ compensation, auto liability and general liability, are reviewed by a third-party actuary quarterly.

Our self-insurance arrangements as of December 31, 2024 were as follows:

Workers’ Compensation—The per-incident deductible for workers’ compensation is $500,000. Losses above $500,000 are determined by statutory rules on a state-by-state basis and are fully covered by excess workers’ compensation insurance.

Employer’s Liability—For employer’s liability, the per-incident deductible is $500,000 and then we have several layers of excess loss insurance policies that cover losses up to $250.0 million in aggregate across this risk area (as well as general liability and auto liability noted below).

General Liability—For general liability, the per-incident deductible is $500,000. We are fully insured for the next $9.5 million of each loss, and then have several layers of excess loss insurance policies that cover losses up to $250.0 million in aggregate across this risk area (as well as employer’s liability noted above and auto liability noted below).

Auto Liability—For auto liability, the per-incident deductible is $500,000. We are fully insured for the next $9.5 million of each loss, and then have several layers of excess loss insurance policies that cover losses up to $250.0 million in aggregate across this risk area (as well as employer’s liability and general liability noted above).

Employee Medical—We have three medical plans. The stop-loss deductible for employee group health claims is $350,000 per person, per policy (calendar) year for each plan. Insurance then covers any responsibility for medical claims in excess of the deductible amount.

Our $250.0 million of aggregate excess loss coverage above applicable per-incident deductibles represents one policy limit that applies to all lines of risk; we do not have a separate $250.0 million of excess loss coverage for each of general liability, employer’s liability and auto liability.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Dividends (per share)	$ 1.2	$ 0.85	$ 0.56

Stock-Based Compensation - Fair Value Assumptions (Details) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($) item $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares
Additional information
Stock-based compensation expense	$ 16.6	$ 12.9	$ 10.5
Stock Options
Additional information
Vesting period	3 years
Restricted Stock Units (RSUs)
Other information
Compensation expense yet to be recognized	$ 6.4
Weighted-average period over which compensation cost will be recognized	1 year 10 months 24 days
Shares
Unvested at beginning of year (in shares) \| shares	113
Granted (in shares) \| shares	25
Vested (in shares) \| shares	(57)
Forfeited (in shares) \| shares	(2)
Unvested at end of year (in shares) \| shares	79	113
Weighted Average Grant Date Fair Value
Unvested at beginning of year (in dollars per share) \| $ / shares	$ 130.83
Granted (in dollars per share) \| $ / shares	315.04	$ 164.47	$ 90.17
Vested (in dollars per share) \| $ / shares	134.54
Forfeited (in dollars per share) \| $ / shares	158.37
Unvested at end of year (in dollars per share) \| $ / shares	187.33	130.83
Additional information
Weighted-average fair value (in dollars per share) \| $ / shares	$ 315.04	$ 164.47	$ 90.17
Aggregate intrinsic value of restricted stock vested	$ 19.8	$ 9.3	$ 6.6
Performance Stock Units
Other information
Compensation expense yet to be recognized	$ 2.6
Weighted-average period over which compensation cost will be recognized	1 year 3 months 18 days
Additional information
Fair value of shares vested	$ 5.4	4.5	3.5
Vesting period	3 years
Types of performance units \| item	2
Percentage of units measured on stock price relative to peer group	50.00%
Percentage of units measured on stock price based on pre determined EPS	50.00%
Period for which shareholder return is compared with peer group for units determined by EPS performance	3 years
Calculated fair market value	$ 17.9
Value of PSUs granted	6.6
Stock-based compensation expense	$ 7.8	$ 6.6	$ 5.3
Performance Stock Units \| Minimum
Additional information
Performance measures for dollar denominated award granted	0
Performance Stock Units \| Maximum
Additional information
Performance measures for dollar denominated award granted	2
2024 PSU Grant
Fair value assumptions:
Risk-free interest rate	4.20%
Dividend yield	0.30%
Volatility	40.20%
Look-back period (in years)	2 years
2023 PSU Grant
Fair value assumptions:
Risk-free interest rate	4.10%	4.20%
Dividend yield	0.30%	0.50%
Volatility	44.90%	35.00%
Look-back period (in years)	1 year	2 years
2022 PSU Grant
Fair value assumptions:
Risk-free interest rate		4.70%	4.40%
Dividend yield		0.50%	0.50%
Volatility		35.10%	33.50%
Look-back period (in years)		1 year	2 years
2021 PSU Grant
Fair value assumptions:
Risk-free interest rate			4.70%
Dividend yield			0.50%
Volatility			35.10%
Look-back period (in years)			1 year

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 522,433	$ 323,398	$ 245,947

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
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-Name Accounting Standards Codification
-Section 65
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (g)(3)
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-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

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-Subparagraph (SX 210.5-03(20))
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
-Section 65
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-Subparagraph (f)
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-URI https://asc.fasb.org/1943274/2147480175/815-40-65-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
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-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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Reference 32: http://www.xbrl.org/2003/role/disclosureRef
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Reference 33: http://www.xbrl.org/2003/role/disclosureRef
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Reference 35: http://www.xbrl.org/2003/role/disclosureRef
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Reference 36: http://www.xbrl.org/2003/role/disclosureRef
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Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Total
BALANCE at Dec. 31, 2021	$ 411	$ (150,580)	$ 327,061	$ 628,774	$ 805,666
BALANCE (in shares) at Dec. 31, 2021	41,123,365
BALANCE (in shares) at Dec. 31, 2021		(5,032,311)
Increase (Decrease) in Stockholders' Equity
Net income				245,947	245,947
Issuance of Stock:
Issuance of shares for options exercised		$ 1,174	(88)		1,086
Issuance of shares for options exercised (in shares)		34,187
Issuance of restricted stock & performance stock		$ 3,657	(113)		3,544
Issuance of restricted stock & performance stock (in shares)		113,955
Shares received in lieu of tax withholding on vested stock		$ (3,247)			(3,247)
Shares received in lieu of tax withholding on vested stock (in shares)		(36,006)
Stock-based compensation			5,220		5,220
Dividends				(20,077)	(20,077)
Share repurchase		$ (38,216)			(38,216)
Share repurchase (in shares)		(442,049)
BALANCE at Dec. 31, 2022	$ 411	$ (187,212)	332,080	854,644	999,923
BALANCE (in shares) at Dec. 31, 2022	41,123,365
BALANCE (in shares) at Dec. 31, 2022		(5,362,224)
Increase (Decrease) in Stockholders' Equity
Net income				323,398	323,398
Issuance of Stock:
Issuance of shares for options exercised		$ 36	(18)		18
Issuance of shares for options exercised (in shares)		1,000
Issuance of restricted stock & performance stock		$ 3,398	1,117		4,515
Issuance of restricted stock & performance stock (in shares)		94,729
Shares received in lieu of tax withholding on vested stock		$ (4,725)			(4,725)
Shares received in lieu of tax withholding on vested stock (in shares)		(32,652)
Stock-based compensation			6,383		6,383
Dividends				(30,379)	(30,379)
Share repurchase		$ (21,304)			(21,304)
Share repurchase (in shares)		(139,478)
BALANCE at Dec. 31, 2023	$ 411	$ (209,807)	339,562	1,147,663	$ 1,277,829
BALANCE (in shares) at Dec. 31, 2023	41,123,365				41,123,365
BALANCE (in shares) at Dec. 31, 2023		(5,438,625)			5,438,625
Increase (Decrease) in Stockholders' Equity
Net income				522,433	$ 522,433
Issuance of Stock:
Issuance of shares for options exercised		$ 248	(64)		184
Issuance of shares for options exercised (in shares)		5,369
Issuance of restricted stock & performance stock		$ 2,982	2,371		5,353
Issuance of restricted stock & performance stock (in shares)		74,129
Shares received in lieu of tax withholding on vested stock		$ (8,915)			(8,915)
Shares received in lieu of tax withholding on vested stock (in shares)		(26,168)
Stock-based compensation			8,865		8,865
Dividends				(42,766)	(42,766)
Share repurchase		$ (58,307)			(58,307)
Share repurchase (in shares)		(177,158)
BALANCE at Dec. 31, 2024	$ 411	$ (273,799)	$ 350,734	$ 1,627,330	$ 1,704,676
BALANCE (in shares) at Dec. 31, 2024	41,123,365				41,123,365
BALANCE (in shares) at Dec. 31, 2024		(5,562,453)			5,562,453

Debt Obligations

12 Months Ended

Dec. 31, 2024

Debt Obligations

Debt Obligations

9. Debt Obligations

Debt obligations consist of the following (in thousands):


	December 31,
	2024		2023
Revolving credit facility	$	—	$	—
Notes to former owners		67,593		44,070
Other debt		742		142
Total debt		68,335		44,212
Less—current portion		(6,042)		(4,867)
Total long-term portion of debt	$	62,293	$	39,345

At December 31, 2024, future principal payments of debt are as follows (in thousands):


Year ending December 31—
2025	$	6,042
2026		30,697
2027		26,029
2028		5,022
2029		545
	$	68,335

Interest expense included the following primary elements (in thousands):


	Year Ended December 31,
	2024		2023		2022
Interest expense on notes to former owners	$	3,616	$	1,365	$	1,139
Interest expense on borrowings and unused commitment fees		1,434		7,507		10,955
Interest expense (income) on interest rate swaps		—		—		(332)
Interest expense on finance leases		—		—		4
Letter of credit fees		911		724		800
Amortization of debt financing costs		687		685		786
Total	$	6,648	$	10,281	$	13,352

Revolving Credit Facility

We have an $850.0 million senior credit facility (the “Facility”) provided by a syndicate of banks, which is composed of a revolving credit line guaranteed by certain of our subsidiaries. The Facility also provides for an accordion or increase option not to exceed the greater of (a) $250 million and (b) 1.0x Credit Facility Adjusted EBITDA (as defined below), as well as a sublimit of up to $175.0 million issuable in the form of letters of credit. The Facility expires in July 2027 and is secured by a first lien on substantially all of our personal property except for assets related to projects

subject to surety bonds and the equity of, and assets held by, certain unrestricted subsidiaries and our wholly owned captive insurance company, and a second lien on our assets related to projects subject to surety bonds. As of December 31, 2024, we had no outstanding borrowings on the revolving credit facility, $80.0 million in letters of credit outstanding and $770.0 million of credit available.

Collateral

A common practice in our industry is the posting of payment and performance bonds with customers. These bonds are offered by financial institutions known as sureties and provide assurance to the customer that in the event we encounter significant financial or operational difficulties, the surety will arrange for the completion of our contractual obligations and for the payment of our vendors on the projects subject to the bonds. In cooperation with our lenders, we granted our sureties a first lien on assets such as receivables, costs and estimated earnings in excess of billings, and equipment specifically identifiable to projects for which bonds are outstanding, as collateral for potential obligations under bonds. As of December 31, 2024, the book value of these assets was approximately $220.8 million.

Covenants and Restrictions

The Facility contains financial covenants defining various financial measures and the levels of these measures with which we must comply. Covenant compliance is assessed as of each quarter end. Credit Facility Adjusted EBITDA is defined under the Facility for financial covenant purposes as consolidated net income for the four fiscal quarters ending as of any given quarterly covenant compliance measurement date, plus the corresponding amounts for (a) interest expense; (b) provision for income taxes; (c) depreciation and amortization; (d) stock or equity compensation; (e) other non-cash charges; and (f) pre-acquisition results of acquired companies. The Facility’s principal financial covenants include:

Net Leverage Ratio—The Facility requires that the ratio of (a) our Consolidated Total Indebtedness (as defined in the Facility) minus unrestricted cash and cash equivalents up to $100,000,000, to (b) our Credit Facility Adjusted EBITDA not exceed 3.50 to 1.00 as of the end of each fiscal quarter.

Interest Coverage Ratio—The Facility requires that the ratio of (a) Credit Facility Adjusted EBITDA to (b) consolidated interest expense, defined as all interest paid or accrued on indebtedness during the period excluding amortization of debt incurrence expenses, original issue discount, and mark-to-market interest expense, be at least 3.00 to 1.00. Credit Facility Adjusted EBITDA and consolidated interest expense are calculated for purposes of this covenant for the four fiscal quarters ending as of any given quarterly covenant compliance measurement date.

Other Restrictions—The Facility (a) permits unlimited acquisitions when the Company’s Net Leverage Ratio is less than or equal to 3.25 to 1.00, (b) expands certain baskets for permitted indebtedness and liens, and (c) permits unlimited distributions, stock repurchases, and investments when the Net Leverage Ratio is less than or equal to 2.75 to 1.00.

While the Facility’s financial covenants do not specifically govern capacity under the Facility, if our debt level under the Facility at a quarter-end covenant compliance measurement date were to cause us to violate the Facility’s Net Leverage Ratio covenant, our borrowing capacity under the Facility and the favorable terms that we currently have could be negatively impacted.

We were in compliance with all of our financial covenants as of December 31, 2024.

Interest Rates and Fees

There are two interest rate options for borrowings under the Facility, the Base Rate Loan (as defined in the Facility) option and the Secured Overnight Financing Rate (“SOFR”) Loan option. Under the Base Rate Loan option, the interest rate is determined based on the highest of (a) the Federal Funds Rate (as defined in the Facility) plus 0.50%, (b) the prime lending rate established by Wells Fargo Bank, N.A., and (c) the one-month Adjusted Term SOFR (as defined in the Facility) plus 1.00%. Under the SOFR Loan option, the interest rate is determined based on Adjusted Term SOFR for a one, three, or six-month tenor at our election. Additional margins are then added to these two rates. The additional margins are determined based on our Net Leverage Ratio.

These rates are floating rates determined by the broad financial markets, meaning they can and do move up and down from time to time. For illustrative purposes, the following are the respective market rates as of December 31, 2024 relating to interest options under the Facility:


Base Rate Loan Option:
Federal Funds Rate plus 0.50%		4.83%
Wells Fargo Bank, N.A. Prime Rate		7.50%
One-month SOFR plus 1.00%		5.53%
SOFR Loan Option:
One-month SOFR		4.53%
Three-month SOFR		4.69%
Six-month SOFR		5.03%

Certain of our vendors require letters of credit to ensure reimbursement for amounts they are disbursing on our behalf, such as to beneficiaries under our self-funded insurance programs. We have also occasionally used letters of credit to guarantee performance under our contracts and to ensure payment to our subcontractors and vendors under those contracts. Our lenders issue such letters of credit through the Facility. A letter of credit commits the lenders to pay specified amounts to the holder of the letter of credit if the holder demonstrates that we have failed to perform specified actions. If this were to occur, we would be required to reimburse the lenders for amounts they fund to honor the letter of credit holder’s claim. Absent a claim, there is no payment or reserving of funds by us in connection with a letter of credit. However, because a claim on a letter of credit would require immediate reimbursement by us to our lenders, letters of credit are treated as a use of facility capacity just the same as actual borrowings. We have never had a claim made against a letter of credit that resulted in payments by a lender or by us and believe such a claim is unlikely in the foreseeable future.

Commitment fees are payable on the portion of the revolving loan capacity not in use for borrowings or letters of credit at any given time. Letter of credit fees and commitment fees are based on the Net Leverage Ratio.


	Net Leverage Ratio
	Less than 1.00		1.00 to less than 1.75		1.75 to less than 2.50		2.50 to less than 3.00		3.00 or greater
Additional Per Annum Interest Margin Added Under:
Base Rate Loan Option	0.00	%	0.25	%	0.50	%	0.75	%	1.00	%
SOFR Loan Option	1.00	%	1.25	%	1.50	%	1.75	%	2.00	%
Letter of credit fees	1.00	%	1.25	%	1.50	%	1.75	%	2.00	%
Commitment fees on any portion of the Revolving Loan capacity not in use for borrowings or letters of credit at any given time	0.15	%	0.175	%	0.20	%	0.225	%	0.25	%

There were no outstanding borrowings on the revolving credit facility as of December 31, 2024 and 2023.

Notes to Former Owners

As part of the consideration used to acquire eight companies, we have outstanding notes to the former owners. Together, these notes had an outstanding balance of $67.6 million as of December 31, 2024. At December 31, 2024, future principal payments of notes to former owners by maturity year are as follows (dollars in thousands):


	Balance at		Range of Stated
	December 31, 2024		Interest Rates
2025	$	5,968	2.3 - 2.5	%
2026		30,625	2.5 - 5.5	%
2027		26,000	5.5	%
2028		5,000	5.5	%
Total	$	67,593

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

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+ Details

Goodwill and Identifiable Intangible Assets, Net - Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Identifiable Intangible Assets, Net
Finite-lived intangible assets acquired	$ 251,300	$ 49,900
Estimated Useful Life	9 years 1 month 6 days	10 years 2 months 12 days
Gross Book Value	$ 756,997	$ 512,182
Accumulated Amortization	(322,580)	(231,785)
Future amortization expense of identifiable intangible assets
2025	66,576
2026	55,961
2027	53,650
2028	52,103
2028	45,835
Thereafter	160,292
Total	$ 434,417
Customer Relationships
Identifiable Intangible Assets, Net
Estimated Useful Lives in Years	7 years 2 months 12 days
Gross Book Value	$ 550,518	376,621
Accumulated Amortization	$ (241,263)	(193,338)
Backlog
Identifiable Intangible Assets, Net
Estimated Useful Lives in Years	1 year 6 months
Gross Book Value	$ 54,918	5,900
Accumulated Amortization	$ (40,328)	(4,331)
Trade Name
Identifiable Intangible Assets, Net
Estimated Useful Lives in Years	17 years 7 months 6 days
Gross Book Value	$ 151,561	129,661
Accumulated Amortization	$ (40,989)	$ (34,116)
Customer Relationships Noncompete Agreements and Tradenames \| Minimum
Identifiable Intangible Assets, Net
Estimated Useful Lives in Years	1 year
Customer Relationships Noncompete Agreements and Tradenames \| Maximum
Identifiable Intangible Assets, Net
Estimated Useful Lives in Years	25 years

Debt Obligations - Other (Details)	12 Months Ended
Debt Obligations - Other (Details)	Dec. 31, 2024 USD ($) item	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($)
Debt Obligations
Financing and professional cost		$ 2,297,000
Asset pledged as collateral
Debt Obligations
Book value of assets	$ 220,800,000
Notes to Former Owners
Other disclosures
Cumulative number of companies acquired \| item	8
Notes to former owners	$ 67,593,000
Revolving credit facility
Debt Obligations
Borrowing capacity	850,000,000
Outstanding borrowings	0		$ 0
Letters of credit amount outstanding	80,000,000
Credit available	$ 770,000,000
Number of quarters of net earnings used for the calculation of the credit facility adjusted EBITDA \| item	4
Principal financial covenants
Number of interest rate options \| item	2
Number of quarters of Adjusted EBITDA and interest expense used for calculation of fixed charge coverage ratio \| item	4
Revolving credit facility \| Net Leverage Ratio, Less Than or Equal To 3.25
Principal financial covenants
Net leverage ratio used as basis for other restrictions	3.25
Revolving credit facility \| Net Leverage Ratio, Less Than or Equal To 2.75
Principal financial covenants
Net leverage ratio used as basis for other restrictions	2.75
Revolving credit facility \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: Less than 1.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Commitment fees payable on unused portion of the facility (as a percent)	0.15%
Revolving credit facility \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.00 to less than 1.75
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Commitment fees payable on unused portion of the facility (as a percent)	0.175%
Revolving credit facility \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.75 to less than 2.50
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Commitment fees payable on unused portion of the facility (as a percent)	0.20%
Revolving credit facility \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 2.50 to less than 3.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Commitment fees payable on unused portion of the facility (as a percent)	0.225%
Revolving credit facility \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 3.00 or Greater
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Commitment fees payable on unused portion of the facility (as a percent)	0.25%
Revolving credit facility \| Minimum
Principal financial covenants
Interest coverage ratio	3
Revolving credit facility \| Maximum
Debt Obligations
Line of credit borrowing capacity accordion option	$ 250,000,000
Principal financial covenants
Maximum cash adjustment allowed in net leverage ratio calculation	$ 100,000,000
Leverage ratio	3.5
Revolving credit facility \| SOFR \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: Less than 1.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.00%
Revolving credit facility \| SOFR \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.00 to less than 1.75
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.25%
Revolving credit facility \| SOFR \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.75 to less than 2.50
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.50%
Revolving credit facility \| SOFR \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 2.50 to less than 3.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.75%
Revolving credit facility \| SOFR \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 3.00 or Greater
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	2.00%
Revolving credit facility \| Variable rate base rate
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.00%
Revolving credit facility \| Variable rate base rate \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: Less than 1.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	0.00%
Revolving credit facility \| Variable rate base rate \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.00 to less than 1.75
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	0.25%
Revolving credit facility \| Variable rate base rate \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.75 to less than 2.50
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	0.50%
Revolving credit facility \| Variable rate base rate \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 2.50 to less than 3.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	0.75%
Revolving credit facility \| Variable rate base rate \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 3.00 or Greater
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.00%
Revolving credit facility \| Letter of credit
Debt Obligations
Borrowing capacity	$ 175,000,000
Revolving credit facility \| Letter of credit \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: Less than 1.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.00%
Revolving credit facility \| Letter of credit \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.00 to less than 1.75
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.25%
Revolving credit facility \| Letter of credit \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 1.75 to less than 2.50
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.50%
Revolving credit facility \| Letter of credit \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 2.50 to less than 3.00
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.75%
Revolving credit facility \| Letter of credit \| Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA: 3.00 or Greater
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	2.00%
Federal Funds Rate \| Revolving credit facility \| Variable rate base rate
Market rates relating to interest options
Market rate (as a percent)	4.83%
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	0.50%
One-month SOFR \| Revolving credit facility
Market rates relating to interest options
Variable rate basis	One-month SOFR
Market rate (as a percent)	4.53%
One-month SOFR \| Revolving credit facility \| Variable rate base rate
Market rates relating to interest options
Market rate (as a percent)	5.53%
Debt Instrument, Interest Rate, Effective Percentage [Abstract]
Additional per annum interest margin (as a percent)	1.00%
Three-month SOFR \| Revolving credit facility
Market rates relating to interest options
Variable rate basis	Three-month SOFR
Market rate (as a percent)	4.69%
Six-month SOFR \| Revolving credit facility
Market rates relating to interest options
Variable rate basis	Six-month SOFR
Market rate (as a percent)	5.03%
Variable Rate Wells Fargo Bank N A Prime Rate \| Revolving credit facility \| Variable rate base rate
Market rates relating to interest options
Market rate (as a percent)	7.50%

Summary of Significant Accounting Policies and Estimates - Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash paid for:
Interest	$ 6,428	$ 9,862	$ 12,915
Income taxes, net of refunds	$ 102,819	$ 100,254	$ 44,296

Leases (Details) $ in Millions	12 Months Ended
Leases (Details) $ in Millions	Dec. 31, 2024 USD ($) Option	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2023 lease
Leases
Variable lease expense and short-term lease expenses	$ 94.3	$ 53.7	$ 19.1
Weighted average discount rate for operating leases	6.10%	5.80%
Operating lease expense	$ 136.9	$ 86.1	46.0
Number of off-site construction real estate leases commenced \| lease				2
Weighted average remaining lease term	10 years 10 months 24 days	10 years 10 months 24 days
Rent paid to related parties	$ 9.8	$ 7.6	$ 6.9
Existence of option to extend	true
Minimum
Leases
Lease term for operating lease	3 years
Number of options to renew \| Option	1
Maximum
Leases
Lease term for operating lease	10 years

Summary of Significant Accounting Policies and Estimates - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	$ 13,377	$ 12,241
Bad debt expense	6,952	4,944	$ 2,670
Deductions for uncollectible receivables written off, net of recoveries	(2,869)	(4,013)
Credit allowance of acquired receivables on the acquisition date	125	205
Balance at end of period	17,585	13,377	12,241
Service
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	5,700	5,245
Bad debt expense	4,190	2,113
Deductions for uncollectible receivables written off, net of recoveries	(2,273)	(1,658)
Balance at end of period	7,617	5,700	5,245
Construction
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	7,600	6,931
Bad debt expense	2,731	2,819
Deductions for uncollectible receivables written off, net of recoveries	(596)	(2,355)
Credit allowance of acquired receivables on the acquisition date	125	205
Balance at end of period	9,860	7,600	6,931
Other
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	77	65
Bad debt expense	31	12
Balance at end of period	$ 108	$ 77	$ 65

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2024	Feb. 14, 2025	Jun. 30, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Securities Act File Number	1-13011
Entity Registrant Name	Comfort Systems USA, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0526487
Entity Address, Address Line One	675 Bering Drive
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77057
City Area Code	713
Local Phone Number	830-9600
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	FIX
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 10,670
Entity Common Stock, Shares Outstanding		35,553,062
Entity Central Index Key	0001035983
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Auditor Name	Deloitte & Touche LLP
Auditor Firm ID	34
Auditor Location	Houston, Texas

Segment Information

12 Months Ended

Dec. 31, 2024

Segment Information

Segment Information

16. Segment Information

We have two reportable segments: (a) our mechanical segment, which includes HVAC, plumbing, piping, and controls, as well as off-site construction, monitoring and fire protection; and (b) our electrical segment, which includes installation and servicing of electrical systems. We consider these two lines of business to be separate segments because they require different skill sets, and the business models for providing services have some differences, as a mechanical system requires ongoing maintenance and monitoring and an electrical system generally does not. However, the business model for installation of new systems or retrofitting existing systems is very similar between the two segments. Segment information is prepared on the same basis that our Chief Operating Decision Maker (“CODM”) reviews financial information for operational decision-making purposes. Our CODM is the President and Chief Executive Officer. Our CODM allocates resources such as employees and capital resources primarily based on historical and potential future revenue, gross profit and operating income. Our CODM also uses segment gross profit and operating income when assessing pricing and performance by management teams in our operating segments.

Our activities are within the mechanical services industry and the electrical services industry, which represent our two reportable segments. We aggregate our operating segments into two reportable segments, as the operating segments meet all of the aggregation criteria. Substantially all of our revenue is generated, and all of our assets are located, in the United States, our country of domicile. The following tables present information about our reportable segments (in thousands):


	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Total assets at December 31, 2024	$	3,162,677	$	985,006	$	563,405	$	4,711,088
Total assets at December 31, 2023	$	2,180,021	$	901,025	$	224,533	$	3,305,579

	Year Ended December 31, 2024
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	5,527,604	$	1,499,872	$	—	$	7,027,476
Cost of services		4,413,108		1,137,957		—		5,551,065
Gross profit		1,114,496		361,915		—		1,476,411
Selling, general and administrative expenses		499,441		170,155		60,476		730,072
Gain on sale of assets		(1,813)		(1,217)		—		(3,030)
Operating income	$	616,868	$	192,977	$	(60,476)	$	749,369

Amortization of identifiable intangible assets	$	74,873	$	22,393	$	—	$	97,266
Depreciation expense	$	39,601	$	7,450	$	1,168	$	48,219
Capital expenditures	$	80,957	$	26,850	$	3,264	$	111,071

	Year Ended December 31, 2023
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	3,946,022	$	1,260,738	$	—	$	5,206,760
Cost of services		3,195,916		1,020,335		—		4,216,251
Gross profit		750,106		240,403		—		990,509
Selling, general and administrative expenses		394,657		129,623		50,143		574,423
Gain on sale of assets		(1,715)		(587)		—		(2,302)
Operating income	$	357,164	$	111,367	$	(50,143)	$	418,388

Amortization of identifiable intangible assets	$	17,619	$	25,785	$	—	$	43,404
Depreciation expense	$	30,850	$	6,576	$	736	$	38,162
Capital expenditures	$	82,449	$	9,600	$	2,789	$	94,838

	Year Ended December 31, 2022
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	3,178,475	$	961,889	$	—	$	4,140,364
Cost of services		2,597,856		800,900		—		3,398,756
Gross profit		580,619		160,989		—		741,608
Selling, general and administrative expenses		345,184		99,579		44,581		489,344
Gain on sale of assets		(1,290)		(295)		—		(1,585)
Operating income	$	236,725	$	61,705	$	(44,581)	$	253,849

Amortization of identifiable intangible assets	$	19,641	$	28,154	$	—	$	47,795
Depreciation expense	$	26,658	$	6,211	$	683	$	33,552
Capital expenditures	$	43,532	$	4,101	$	726	$	48,359

For the years ended December 31, 2024 and 2023, one customer represented 13.3% and 13.8% of consolidated revenue, respectively, and was included in our mechanical segment revenues. No individual customer represented 10% or more of our consolidated revenue in the year ended December 31, 2022.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2024

Stockholders' Equity

Reconciliation of number of shares outstanding with the number of shares used in computing basic and diluted earnings per share

The following table reconciles the number of shares outstanding with the number of shares used in computing basic and diluted earnings per share for each of the periods presented (in thousands):


	Year Ended December 31,
	2024	2023	2022
Common shares outstanding, end of period	35,561	35,685	35,761
Effect of using weighted average common shares outstanding	128	117	171
Shares used in computing earnings per share—basic	35,689	35,802	35,932
Effect of shares issuable under stock option plans based on the treasury stock method	29	26	36
Effect of restricted and contingently issuable shares	57	67	78
Shares used in computing earnings per share—diluted	35,775	35,895	36,046

Goodwill and Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Asset Impairment Charges [Abstract]
Impairment charges, goodwill	$ 0	$ 0	$ 0
Amortization of identifiable intangible assets	$ 97,266	$ 43,404	$ 47,795

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue
Revenue	$ 7,027,476	$ 5,206,760	$ 4,140,364
Percentage of revenue from contract with customer (as a percent)	100.00%	100.00%	100.00%
New Construction
Disaggregation of Revenue
Revenue	$ 3,984,529	$ 2,853,239	$ 2,011,992
Percentage of revenue from contract with customer (as a percent)	56.70%	54.80%	48.60%
Existing Building Construction
Disaggregation of Revenue
Revenue	$ 1,945,093	$ 1,337,023	$ 1,210,512
Percentage of revenue from contract with customer (as a percent)	27.70%	25.60%	29.20%
Service Projects
Disaggregation of Revenue
Revenue	$ 468,950	$ 446,151	$ 382,155
Percentage of revenue from contract with customer (as a percent)	6.70%	8.60%	9.20%
Service Calls, Maintenance and Monitoring
Disaggregation of Revenue
Revenue	$ 628,904	$ 570,347	$ 535,705
Percentage of revenue from contract with customer (as a percent)	8.90%	11.00%	13.00%
Technology
Disaggregation of Revenue
Revenue	$ 2,331,362	$ 1,114,382	$ 546,290
Percentage of revenue from contract with customer (as a percent)	33.20%	21.40%	13.20%
Manufacturing
Disaggregation of Revenue
Revenue	$ 1,919,403	$ 1,751,684	$ 1,426,962
Percentage of revenue from contract with customer (as a percent)	27.30%	33.60%	34.50%
Education
Disaggregation of Revenue
Revenue	$ 702,706	$ 493,982	$ 445,638
Percentage of revenue from contract with customer (as a percent)	10.00%	9.50%	10.80%
Healthcare
Disaggregation of Revenue
Revenue	$ 584,902	$ 554,906	$ 584,023
Percentage of revenue from contract with customer (as a percent)	8.30%	10.60%	14.10%
Office Buildings
Disaggregation of Revenue
Revenue	$ 424,343	$ 400,754	$ 349,235
Percentage of revenue from contract with customer (as a percent)	6.00%	7.70%	8.40%
Retail, Restaurants and Entertainment
Disaggregation of Revenue
Revenue	$ 377,302	$ 310,381	$ 311,697
Percentage of revenue from contract with customer (as a percent)	5.40%	6.00%	7.50%
Government
Disaggregation of Revenue
Revenue	$ 375,201	$ 301,837	$ 255,314
Percentage of revenue from contract with customer (as a percent)	5.40%	5.80%	6.20%
Multi-Family and Residential
Disaggregation of Revenue
Revenue	$ 142,133	$ 181,780	$ 126,339
Percentage of revenue from contract with customer (as a percent)	2.00%	3.50%	3.00%
Other
Disaggregation of Revenue
Revenue	$ 170,124	$ 97,054	$ 94,866
Percentage of revenue from contract with customer (as a percent)	2.40%	1.90%	2.30%
Mechanical Segment
Disaggregation of Revenue
Revenue	$ 5,527,604	$ 3,946,022	$ 3,178,475
Percentage of revenue from contract with customer (as a percent)	78.70%	75.80%	76.80%
Electrical Segment
Disaggregation of Revenue
Revenue	$ 1,499,872	$ 1,260,738	$ 961,889
Percentage of revenue from contract with customer (as a percent)	21.30%	24.20%	23.20%

Summary of Significant Accounting Policies and Estimates (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies and Estimates

Schedule of cash paid

Cash paid (in thousands) for:


	Year Ended December 31,
	2024		2023		2022
Interest	$	6,428	$	9,862	$	12,915
Income taxes, net of refunds	$	102,819	$	100,254	$	44,296

Schedule of activity in allowance for credit losses

Activity in our allowance for credit losses consisted of the following (in thousands):


	Year Ended December 31, 2024								Year Ended December 31, 2023
	Service		Construction		Other		Total		Service		Construction		Other		Total
Balance at beginning of year	$	5,700	$	7,600	$	77	$	13,377	$	5,245	$	6,931	$	65	$	12,241
Bad debt expense		4,190		2,731		31		6,952		2,113		2,819		12		4,944
Deductions for uncollectible receivables written off, net of recoveries		(2,273)		(596)		—		(2,869)		(1,658)		(2,355)		—		(4,013)
Credit allowance of acquired receivables on the acquisition date		—		125		—		125		—		205		—		205
Balance at end of period	$	7,617	$	9,860	$	108	$	17,585	$	5,700	$	7,600	$	77	$	13,377

Detail of Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Detail of Other Current Liabilities

Schedule of other current liabilities

Other current liabilities consist of the following (in thousands):


	December 31,
	2024		2023
Accrued warranty costs	$	16,148	$	11,650
Current lease liability		28,158		24,426
Accrued job losses		21,636		5,458
Accrued sales and use tax		5,568		6,592
Liabilities due to former owners		87,417		49,024
Repayments to customers		250,008		37,241
Other current liabilities		92,656		55,537
	$	501,591	$	189,928

Business and Organization

12 Months Ended

Dec. 31, 2024

Business and Organization

Business and Organization

1. Business and Organization

Comfort Systems USA, Inc., a Delaware corporation, provides comprehensive mechanical and electrical contracting services, which principally includes heating, ventilation and air conditioning (“HVAC”), plumbing, electrical, piping and controls, as well as off-site construction, monitoring and fire protection. We build, install, maintain, repair and replace mechanical, electrical and plumbing (“MEP”) systems throughout the United States. Approximately 56.7% of our consolidated 2024 revenue is attributable to installation of systems in newly constructed facilities, with the remaining 43.3% attributable to renovation, expansion, maintenance, repair and replacement services in existing buildings. The terms “Comfort Systems,” “we,” “us,” or the “Company,” refer to Comfort Systems USA, Inc. or Comfort Systems USA, Inc. and its consolidated subsidiaries, as appropriate in the context.

Goodwill and Identifiable Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2024

Goodwill and Identifiable Intangible Assets, Net

Schedule of changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill are as follows (in thousands):


	Mechanical Segment		Electrical Segment		Total
Balance at December 31, 2022	$	363,929	$	247,860	$	611,789
Acquisitions and purchase price adjustments (See Note 5)		29,347		25,698		55,045
Balance at December 31, 2023		393,276		273,558		666,834
Acquisitions and purchase price adjustments (See Note 5)		208,236		200		208,436
Balance at December 31, 2024	$	601,512	$	273,758	$	875,270

Schedule of components of identifiable intangible assets

Identifiable intangible assets consist of the following (dollars in thousands):


	Weighted-Average	December 31, 2024				December 31, 2023
	Remaining Useful Lives	Gross Book		Accumulated		Gross Book		Accumulated
	in Years	Value		Amortization		Value		Amortization
Customer Relationships	7.2	$	550,518	$	(241,263)	$	376,621	$	(193,338)
Backlog	1.5		54,918		(40,328)		5,900		(4,331)
Trade Names	17.6		151,561		(40,989)		129,661		(34,116)
Total		$	756,997	$	(322,580)	$	512,182	$	(231,785)

Schedule of future amortization expense of identifiable intangible assets

As of December 31, 2024, future amortization expense of identifiable intangible assets was as follows (in thousands):


Year ending December 31—
2025	$	66,576
2026		55,961
2027		53,650
2028		52,103
2029		45,835
Thereafter		160,292
Total	$	434,417

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

Leases

12 Months Ended

Dec. 31, 2024

Leases

Leases

10. Leases

We lease certain facilities, vehicles and equipment primarily under noncancelable operating leases. The most significant portion of these noncancelable operating leases is for the facilities occupied by our corporate office and our operating locations. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet. We do not separate lease components from their associated non-lease components pursuant to lease accounting guidance. We have certain leases with variable payments based on an index as well as short-term leases on equipment and facilities. Variable lease expense and short-term lease expense aggregated to $94.3 million in 2024, $53.7 million in 2023 and $19.1 million in 2022. These expenses were primarily related to short-term equipment rentals. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted average discount rate for our operating leases as of December 31, 2024 and 2023 was 6.1% and 5.8%, respectively. We recognize operating lease expense, including escalating lease payments and lease incentives, on a straight-line basis over the lease term. Operating lease expense for the years ended December 31, 2024, 2023 and 2022 was $136.9 million, $86.1 million and $46.0 million, respectively.

The lease terms generally range from three to ten years. Some leases include one or more options to renew, which may be exercised to extend the lease term. We include the exercise of lease renewal options in the lease term when it is reasonably certain that we will exercise the option and such exercise is at our sole discretion. In the third quarter of 2023, we commenced two large real estate leases to support our expected growth in off-site construction, with lease terms longer than our typical term. The weighted average remaining lease term for our operating leases was 10.9 years at both December 31, 2024 and December 31, 2023.

A majority of the Company’s real property leases are with individuals or entities with whom we have no other business relationship. However, in certain instances the Company enters into real property leases with current or former employees. Rent paid to related parties for the years ended December 31, 2024, 2023 and 2022 was approximately $9.8 million, $7.6 million and $6.9 million, respectively.

If we decide to cancel or terminate a lease before the end of its term, we would typically owe the lessor the remaining lease payments under the term of the lease. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. On rare occasions, we rent or sublease certain real estate assets that we no longer use to third parties.

The following table summarizes the operating lease assets and liabilities included in the Consolidated Balance Sheet as of December 31, 2024 and December 31, 2023 (in thousands):


	December 31,
	2024		2023
Operating lease right-of-use assets	$	229,106	$	205,712
Operating lease liabilities:
Other current liabilities	$	28,158	$	24,426
Long-term operating lease liabilities		212,107		188,136
Total operating lease liabilities	$	240,265	$	212,562

The maturities of operating lease liabilities as of December 31, 2024 are as follows (in thousands):


Year ending December 31—
2025	$	41,442
2026		37,819
2027		33,246
2028		29,286
2029		25,518
Thereafter		170,630
Total lease payments		337,941
Less—present value discount		(97,676)
Present value of operating lease liabilities	$	240,265

Supplemental information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	39,702	$	29,454
Operating lease right-of-use assets obtained in exchange for lease liabilities	$	54,344	$	101,010

Income Taxes

12 Months Ended

Dec. 31, 2024

Income Taxes

Income Taxes

11. Income Taxes

Provision (Benefit) for Income Taxes

Our provision (benefit) for income taxes relating to continuing operations consists of the following (in thousands):


	December 31,
	2024		2023		2022
Current tax provision (benefit)—
Federal	$	170,844	$	(34,722)	$	58,040
State		39,897		4,222		26,376
Total current		210,741		(30,500)		84,416
Deferred tax provision (benefit)—
Federal		(54,119)		81,119		(80,130)
State		(12,494)		14,177		(14,375)
Total deferred		(66,613)		95,296		(94,505)
Provision (benefit) for income taxes	$	144,128	$	64,796	$	(10,089)

Rate Reconciliation

The provision (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022 resulted in effective tax rates on continuing operations of 21.6%, 16.7% and (4.3%), respectively. The reasons for the differences between these effective tax rates and the federal statutory rates are as follows (in thousands, except percentages):


	December 31,
	2024			2023			2022
Federal statutory rate of—		21	%		21	%		21	%
Income taxes at the federal statutory rate	$	139,978		$	81,521		$	49,530
Increases (decreases) resulting from—
Net state income taxes		25,748			14,278			9,376
Net unrecognized tax benefits		9,549			9,049			(17,922)
Nondeductible expenses		9,921			5,774			4,045
R&D tax credit		(36,216)			(43,791)			(51,398)
Other		(4,852)			(2,035)			(3,720)
Provision (benefit) for income taxes	$	144,128		$	64,796		$	(10,089)

Following an Internal Revenue Service (“IRS”) survey of the previously filed refund claims for the 2016, 2017 and 2018 tax years, the Joint Committee on Taxation approved such refunds in late January 2022. As a result, our benefit for income taxes in the first quarter of 2022 included a $28.8 million reduction in unrecognized tax benefits plus approximately $1.6 million of net interest income on the refunds.

Our benefit for income taxes in the first quarter of 2022 was further increased by $26.8 million for the expected refunds due to our intention to claim the credit for increasing research activities (the “R&D tax credit”) for the 2019, 2020 and 2021 tax years. In the third quarter of 2022, we claimed the R&D tax credit on our originally filed 2021 federal return and recognized an additional $1.7 million benefit for the 2019, 2020 and 2021 tax years. Additionally, in February 2023, we filed amended federal returns for 2019 and 2020 requesting refunds primarily from claiming the R&D tax credit.

The Inflation Reduction Act was enacted on August 16, 2022. This law, among other provisions, provides a corporate alternative minimum tax on adjusted financial statement income over $1 billion, which is effective for tax years beginning after December 31, 2022, and a 1% excise tax on net corporate stock repurchases after December 31, 2022. The impact of the excise tax is recorded in “Treasury Stock” within our Consolidated Balance Sheet. These provisions were not material to our current year overall financial results, financial position and cash flows.

In early September 2023, the IRS issued interim guidance addressing, together with other topics, the treatment of research and experimental (“R&E”) expenditures for taxpayers using the percentage of completion method to account for taxable income from long-term contracts. We relied on such guidance for the 2022 tax year, and the resulting reduction in taxable revenue offsets the deferral of tax deductions for R&E expenditures pursuant to the Tax Cuts and Jobs Act (2017) for the 2022 tax year. We filed our 2022 federal tax return in October 2023 requesting a refund of our $107.1 million overpayment, which had not been received as of December 31, 2024.

Deferred Tax Assets (Liabilities)

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows (in thousands):


	Year Ended
	December 31,
	2024		2023
Deferred tax assets—
Accounts receivable and allowance for credit losses	$	4,139	$	3,203
Stock-based compensation		5,329		4,549
Accrued liabilities and expenses		63,519		44,209
Lease liabilities		57,673		51,065
Net operating loss and tax credit carryforwards		2,963		5,919
Goodwill		24,592		—
Intangible assets		21,075		8,570
Research and experimental expenditures		—		195,444
Other		1,685		1,192
Subtotal		180,975		314,151
Valuation allowances		(2,751)		(156)
Total deferred tax assets		178,224		313,995
Deferred tax liabilities—
Property and equipment		(29,970)		(27,049)
Lease right-of-use asset		(57,673)		(51,058)
Long-term contracts		(2,429)		(193,144)
Goodwill		—		(24,452)
Other		(4,936)		(1,689)
Total deferred tax liabilities		(95,008)		(297,392)
Net deferred tax assets	$	83,216	$	16,603

The deferred tax assets and deferred tax liabilities reflected above are included in the Consolidated Balance Sheets as follows (in thousands):


	December 31,
	2024		2023
Deferred tax assets	$	85,441	$	17,723
Deferred tax liabilities	$	2,225	$	1,120

As of December 31, 2024, our deferred tax assets were primarily attributable to accrued liabilities and expenses, goodwill, and intangible assets. Virtually all of the net operating loss (“NOL”) and tax credit carryforwards are for various state jurisdictions, the material amounts of which begin to expire after the year 2035.

We believe, however, that it is more likely than not that the benefits from the various state NOL and tax credit carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $2.8 million on the deferred tax assets related to those state NOL and tax credit carryforwards. If or when recognized, the benefits related to any reversal of the valuation allowance on deferred tax assets as of December 31, 2024 will be recognized as a reduction in our provision for income taxes.

Certain of the state NOL and tax credit carryforwards shown in our income tax returns included unrecognized tax benefits. The deferred tax assets recognized for these NOL and tax credits are presented net of unrecognized tax benefits.

Liabilities for Uncertain Tax Positions

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Balance at beginning of year	$	20,579	$	11,530	$	29,452
Additions based on tax positions related to current year		7,591		6,370		3,420
Additions based on tax positions related to prior years		1,958		2,723		7,427
Reductions for tax positions related to prior years		—		(44)		(13)
Reductions for settlements with taxing authorities		—		—		(28,756)
Balance at end of year	$	30,128	$	20,579	$	11,530

As of December 31, 2024, 2023 and 2022, we had $30.1 million, $20.6 million and $11.5 million, respectively, of unrecognized tax benefits, which if recognized in future periods, would impact our effective tax rates. We also accrued $1.8 million, $0.6 million and $0.3 million for potential interest and penalties related to the unrecognized tax benefits as of December 31, 2024, 2023, and 2022, respectively. We recognize potential interest and penalties related to unrecognized tax benefits in our provision for income taxes.

We are subject to taxation in the federal and various state jurisdictions. For the year ended December 31, 2022, our unrecognized tax benefits were reduced by $28.8 million due to favorable settlements with the IRS for the 2016 through 2018 tax years. As of December 31, 2024, we remain open to IRS examination for the 2021 tax year forward.

State income tax returns are generally subject to examination for a period of three to four years after filing the returns. However, the state impact of any federal audit adjustments and/or amendments remains subject to examination by various states for up to one year after formal notification to the states. As of December 31, 2024, we generally remain open to examination by various state taxing authorities for the 2020 tax year forward.

We believe it is reasonably possible that a reduction of up to $5.3 million in unrecognized tax benefits could occur within the next twelve months. Any reduction in our unrecognized tax benefits, due to the future recognition of those tax benefits, would affect our effective tax rates.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deferred tax assets-
Accounts receivable and allowance for credit losses	$ 4,139	$ 3,203
Stock-based compensation	5,329	4,549
Accrued liabilities and expenses	63,519	44,209
Lease liabilities	57,673	51,065
Net operating loss and tax credit carryforwards	2,963	5,919
Goodwill	24,592
Intangible assets	21,075	8,570
Research and experimental expenditures		195,444
Other	1,685	1,192
Subtotal	180,975	314,151
Valuation allowances	(2,751)	(156)
Total deferred tax assets	178,224	313,995
Deferred tax liabilities-
Property and equipment	(29,970)	(27,049)
Lease right-of-use asset	(57,673)	(51,058)
Long-term contracts	(2,429)	(193,144)
Goodwill		(24,452)
Other	(4,936)	(1,689)
Total deferred tax liabilities	(95,008)	(297,392)
Net deferred tax assets	83,216	16,603
Deferred income tax assets
Deferred tax assets	85,441	17,723
Deferred tax liabilities	2,225	$ 1,120
Valuation allowance on deferred tax assets	$ 2,800

Income Taxes - Provision (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Provision (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current tax provision (benefit)-
Federal	$ 170,844	$ (34,722)	$ 58,040
State	39,897	4,222	26,376
Total current	210,741	(30,500)	84,416
Deferred tax provision (benefit)-
Federal	(54,119)	81,119	(80,130)
State	(12,494)	14,177	(14,375)
Total deferred	(66,613)	95,296	(94,505)
Provision (benefit) for income taxes	$ 144,128	$ 64,796	$ (10,089)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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+ Details

Income Taxes - Provision Changes, Examination (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2023	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Reduced provision for income taxes			$ 28,800			$ 28,756
Net interest income on the tax refunds			1,600
Refund claim for overpayment	$ 107,100
Total Tax Years 2019-2021
Income Taxes
R&D tax credits		$ 1,700	$ 26,800

Stockholders' Equity

12 Months Ended

Dec. 31, 2024

Stockholders' Equity

Stockholders' Equity

14. Stockholders’ Equity

Stock Incentive Plans

In May 2017, our stockholders approved our 2017 Omnibus Incentive Plan (the “2017 Plan”), which provides for the granting of incentive or non-qualified stock options, stock appreciation rights, restricted or deferred stock, dividend equivalents or other incentive awards to directors, employees, or consultants. The number of shares authorized and reserved for issuance under the 2017 Plan is 2.9 million shares. As of December 31, 2024, there were 1.5 million shares available for issuance under this plan. The 2017 Plan will expire in May 2027. We have outstanding and exercisable stock options under our 2012 Equity Incentive Plan, which was superseded by the 2017 Plan.

Share Repurchase Program

On March 29, 2007, our Board of Directors (the “Board”) approved a stock repurchase program to acquire up to 1.0 million shares of our outstanding common stock. Subsequently, the Board has from time to time increased the number of shares that may be acquired under the program and approved extensions of the program. On August 7, 2024, the Board approved an extension to the program by increasing the shares authorized for repurchase by 0.4 million shares. Since the inception of the repurchase program, the Board has approved 11.4 million shares to be repurchased. As of December 31, 2024, we have repurchased a cumulative total of 10.4 million shares at an average price of $31.41 per share under the repurchase program.

The share repurchases will be made from time to time at our discretion in the open market or privately negotiated transactions as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. The Board may modify, suspend, extend or terminate the program at any time. During the year ended December 31, 2024, we repurchased 0.2 million shares for approximately $58.3 million at an average price of $329.14 per share.

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted EPS is computed considering the dilutive effect of stock options, restricted stock, restricted stock units and performance stock units. The vesting of unvested, contingently issuable performance stock units is based on the achievement of certain earnings per share targets and total shareholder return. These shares are considered contingently issuable shares for purposes of calculating diluted earnings per share. These shares are not included in the diluted earnings per share denominator until the performance criteria are met, if it is assumed that the end of the reporting period was the end of the contingency period.

Unvested restricted stock, restricted stock units and performance stock units are included in diluted earnings per share, weighted outstanding until the shares and units vest. Upon vesting, the vested restricted stock, restricted stock units and performance stock units are included in basic earnings per share weighted outstanding from the vesting date.

There were zero anti-dilutive stock options excluded from the calculation of diluted EPS for the years ended December 31, 2024, 2023 and 2022.

The following table reconciles the number of shares outstanding with the number of shares used in computing basic and diluted earnings per share for each of the periods presented (in thousands):


	Year Ended December 31,
	2024	2023	2022
Common shares outstanding, end of period	35,561	35,685	35,761
Effect of using weighted average common shares outstanding	128	117	171
Shares used in computing earnings per share—basic	35,689	35,802	35,932
Effect of shares issuable under stock option plans based on the treasury stock method	29	26	36
Effect of restricted and contingently issuable shares	57	67	78
Shares used in computing earnings per share—diluted	35,775	35,895	36,046

Property and Equipment

12 Months Ended

Dec. 31, 2024

Property and Equipment

Property and Equipment

7. Property and Equipment

Property and equipment consist of the following (dollars in thousands):


	Estimated
	Useful Lives	December 31,
	in Years	2024		2023
Land	—	$	12,898	$	8,437
Transportation equipment	1 - 7		223,741		188,073
Machinery and equipment	1 - 20		92,701		77,142
Computer and telephone equipment	1 - 10		32,636		29,052
Buildings and leasehold improvements	1 - 40		128,652		101,568
Furniture and fixtures	1 - 17		9,956		8,600
Construction in progress	—		26,233		12,645
			526,817		425,517
Less—Accumulated depreciation			(249,637)		(216,949)
Property and equipment, net		$	277,180	$	208,568

Depreciation expense for the years ended December 31, 2024, 2023 and 2022 was $48.2 million, $38.2 million and $33.6 million, respectively.

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2024 USD ($) segment customer	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Segment Information
Number of reportable segments \| segment	2
Total assets	$ 4,711,088	$ 3,305,579
Revenue	7,027,476	5,206,760	$ 4,140,364
Cost of services	5,551,065	4,216,251	3,398,756
Gross profit	1,476,411	990,509	741,608
Selling, general and administrative expenses	730,072	574,423	489,344
Gain on sale of assets	(3,030)	(2,302)	(1,585)
Operating income	749,369	418,388	253,849
Amortization of identifiable intangible assets	97,266	43,404	47,795
Depreciation expense	48,219	38,162	33,552
Capital expenditures	$ 111,071	$ 94,838	48,359
Revenue from contract with customer benchmark \| Customer concentration
Segment Information
Number of Customers \| customer	1
Revenue from contract with customer benchmark \| Customer concentration \| Customer One
Segment Information
Single customer, percentage	13.30%	13.80%
Operating Segments \| Mechanical Segment
Segment Information
Total assets	$ 3,162,677	$ 2,180,021
Revenue	5,527,604	3,946,022	3,178,475
Cost of services	4,413,108	3,195,916	2,597,856
Gross profit	1,114,496	750,106	580,619
Selling, general and administrative expenses	499,441	394,657	345,184
Gain on sale of assets	(1,813)	(1,715)	(1,290)
Operating income	616,868	357,164	236,725
Amortization of identifiable intangible assets	74,873	17,619	19,641
Depreciation expense	39,601	30,850	26,658
Capital expenditures	80,957	82,449	43,532
Operating Segments \| Electrical Segment
Segment Information
Total assets	985,006	901,025
Revenue	1,499,872	1,260,738	961,889
Cost of services	1,137,957	1,020,335	800,900
Gross profit	361,915	240,403	160,989
Selling, general and administrative expenses	170,155	129,623	99,579
Gain on sale of assets	(1,217)	(587)	(295)
Operating income	192,977	111,367	61,705
Amortization of identifiable intangible assets	22,393	25,785	28,154
Depreciation expense	7,450	6,576	6,211
Capital expenditures	26,850	9,600	4,101
Corporate & Eliminations
Segment Information
Total assets	563,405	224,533
Selling, general and administrative expenses	60,476	50,143	44,581
Operating income	(60,476)	(50,143)	(44,581)
Depreciation expense	1,168	736	683
Capital expenditures	$ 3,264	$ 2,789	$ 726

Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Contract Assets
Costs and estimated earnings in excess of billings, less allowance for credit losses, current	$ 91,681	$ 28,084
Contract Liabilities
Billings in excess of costs and estimated earnings and deferred revenue	$ 1,149,257	909,538
Contract with Customer, Timing of Satisfaction of Performance Obligation and Payment	Contract assets and liabilities fluctuate year to year based on various factors, including, but not limited to, the variability in billing and payment terms of customers and changes in the number and size of projects in progress at period end.
Increase in Contract assets	$ 63,600
Increase in Contract liabilities	239,700
Billings and related costs	59,900
Increase in contract assets from business combination	3,700
Consideration of 2024 acquisitions	207,500
Increase in billings in excess of costs	32,200
Revenue related to our contract liabilities	$ 816,800	$ 500,600

Stockholders' Equity - Anti-Dilutive Stock Options (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Stockholders' Equity
Anti-dilutive securities excluded from computation of earnings per share amount (in shares)	0.0	0.0	0.0

Acquisitions (Details) - USD ($) $ in Thousands		11 Months Ended	12 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Feb. 01, 2024	Dec. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Consideration transferred:
Revenue			$ 7,027,476	$ 5,206,760	$ 4,140,364
Recognized amounts of identifiable assets acquired and liabilities assumed:
Goodwill		$ 875,270	$ 875,270	$ 666,834	$ 611,789
Summit Texas
Consideration transferred:
Revenue		420,100
Cash paid at closing	$ 267,500
Working capital adjustment	14,602
Notes issued to former owners	35,000
Estimated fair value of contingent earn-out payments	42,732
Consideration transferred	359,834
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	171,027
Billed and unbilled accounts receivable	59,846
Prepaid expenses and other	1,476
Cost and estimated earnings in excess of billings	578
Property and equipment	2,528
Lease right-of-use asset	2,364
Goodwill	155,345
Identifiable intangible assets	170,100
Other noncurrent assets	136
Accounts payable	(15,130)
Billings in excess of costs and estimated earnings	(179,895)
Current operating lease liabilities	(1,495)
Accrued expenses and other current liabilities	(6,293)
Long-term operating lease liabilities	(753)
Total assets acquired and liabilities assumed	359,834
J&S Utah
Consideration transferred:
Revenue		$ 150,100
Cash paid at closing	100,000
Working capital adjustment	1,587
Notes issued to former owners	10,000
Estimated fair value of contingent earn-out payments	9,052
Consideration transferred	120,639
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	14,802
Billed and unbilled accounts receivable	38,411
Inventory	230
Prepaid expenses and other	397
Cost and estimated earnings in excess of billings	728
Property and equipment	2,674
Lease right-of-use asset	4,552
Goodwill	40,783
Identifiable intangible assets	63,300
Other noncurrent assets	10
Accounts payable	(20,649)
Billings in excess of costs and estimated earnings	(19,188)
Current operating lease liabilities	(133)
Accrued expenses and other current liabilities	(907)
Long-term debt	(59)
Long-term operating lease liabilities	(4,312)
Total assets acquired and liabilities assumed	$ 120,639

Goodwill and Identifiable Intangible Assets, Net

12 Months Ended

Dec. 31, 2024

Goodwill and Identifiable Intangible Assets, Net

Goodwill and Identifiable Intangible Assets, Net

6. Goodwill and Identifiable Intangible Assets, Net

Goodwill

The changes in the carrying amount of goodwill are as follows (in thousands):


	Mechanical Segment		Electrical Segment		Total
Balance at December 31, 2022	$	363,929	$	247,860	$	611,789
Acquisitions and purchase price adjustments (See Note 5)		29,347		25,698		55,045
Balance at December 31, 2023		393,276		273,558		666,834
Acquisitions and purchase price adjustments (See Note 5)		208,236		200		208,436
Balance at December 31, 2024	$	601,512	$	273,758	$	875,270

The aggregate goodwill balance as of December 31, 2024 and 2023 includes $116.6 million of accumulated impairment charges, all of which relate to the mechanical segment.

During our annual impairment testing on October 1, 2024, we performed a qualitative assessment for each reporting unit, which considered various factors, including changes in the carrying value of the reporting unit, forecasted operating results, long-term growth rates and discount rates. Additionally, we considered qualitative key events and circumstances (i.e., macroeconomic environment, industry and market specific conditions, cost factors and events specific to the reporting unit, etc.). Based on this assessment, we concluded that it was more likely than not that the fair value of each reporting unit was greater than its carrying value. Accordingly, no further testing was required.

For the years ended December 31, 2024, 2023 and 2022, no impairment of our goodwill or other intangible assets was recorded.

There are significant inherent uncertainties and management judgment involved in estimating the fair value of each reporting unit. While we believe we have made reasonable estimates and assumptions to estimate the fair value of our reporting units, it is possible that a material change could occur. If actual results are not consistent with our current estimates and assumptions, or the current economic outlook worsens, goodwill impairment charges may be recorded in future periods.

Identifiable Intangible Assets, Net

Identifiable intangible assets consist of the following (dollars in thousands):


	Weighted-Average	December 31, 2024				December 31, 2023
	Remaining Useful Lives	Gross Book		Accumulated		Gross Book		Accumulated
	in Years	Value		Amortization		Value		Amortization
Customer Relationships	7.2	$	550,518	$	(241,263)	$	376,621	$	(193,338)
Backlog	1.5		54,918		(40,328)		5,900		(4,331)
Trade Names	17.6		151,561		(40,989)		129,661		(34,116)
Total		$	756,997	$	(322,580)	$	512,182	$	(231,785)

Identifiable intangible assets attributable to businesses acquired in 2024 have been preliminarily valued at $251.3 million, consisting of customer relationships, trade names, and backlog. Identifiable intangible assets attributable to businesses acquired in 2023 have been valued at $49.9 million, consisting of customer relationships, trade names, and backlog. The weighted-average initial amortization period for the identifiable intangible assets attributable to businesses acquired in 2024 and 2023 was 9.1 years and 10.2 years, respectively.

The amounts attributable to customer relationships and trade names are amortized to “Selling, General and Administrative Expenses” based upon the estimated consumption of their economic benefits, or under a shorter period of time using the straight-line method if the pattern of economic benefit cannot be reliably estimated. Our intangible assets related to customer relationships and trade names are amortized over periods from one to twenty-five years. The amounts attributable to backlog are amortized to “Cost of Services” on a proportionate method over the remaining backlog period. Amortization expense for the years ended December 31, 2024, 2023 and 2022 was $97.3 million, $43.4 million and $47.8 million, respectively.

As of December 31, 2024, future amortization expense of identifiable intangible assets was as follows (in thousands):


Year ending December 31—
2025	$	66,576
2026		55,961
2027		53,650
2028		52,103
2029		45,835
Thereafter		160,292
Total	$	434,417

Debt Obligations - Notes to Former Owners (Details) - Notes to Former Owners $ in Thousands	Dec. 31, 2024 USD ($)
Future principal payments of long-term debt
Notes issued to former owners	$ 67,593
2025
Future principal payments of long-term debt
Notes issued to former owners	$ 5,968
2025 \| Minimum
Future principal payments of long-term debt
Stated interest rate (as a percent)	2.30%
2025 \| Maximum
Future principal payments of long-term debt
Stated interest rate (as a percent)	2.50%
2026
Future principal payments of long-term debt
Notes issued to former owners	$ 30,625
2026 \| Minimum
Future principal payments of long-term debt
Stated interest rate (as a percent)	2.50%
2026 \| Maximum
Future principal payments of long-term debt
Stated interest rate (as a percent)	5.50%
2027
Future principal payments of long-term debt
Notes issued to former owners	$ 26,000
Stated interest rate (as a percent)	5.50%
2028
Future principal payments of long-term debt
Notes issued to former owners	$ 5,000
Stated interest rate (as a percent)	5.50%

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Stockholders' Equity - Number of Shares (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Reconciliation of the number of shares outstanding with the number of shares used in computing basic and diluted earnings per share
Common shares outstanding, end of period	35,561	35,685	35,761
Effect of using weighted average common shares outstanding	128	117	171
Shares used in computing earnings per share-basic	35,689	35,802	35,932
Effect of shares issuable under stock option plans based on the treasury stock method	29	26	36
Effect of restricted and contingently issuable shares	57	67	78
Shares used in computing earnings per share-diluted	35,775	35,895	36,046

- Definition

Additional shares included in the calculation of diluted EPS as a result of the potentially dilutive effect of contingently issuable shares. Contingently issuable shares are those shares that are issuable for little or no cash contingent on certain conditions being met.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482662/260-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 23
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-23

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-26

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 44
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-44

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 51
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-51

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 52
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-52

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 53
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-53

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 54
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-54

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 48
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-48

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 48
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-48

+ Details

Leases - Summary of Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Summary of lease asset and liabilities
Operating lease right-of-use assets	$ 229,106	$ 205,712
Operating lease liabilities:
Other current liabilities	$ 28,158	$ 24,426
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current	Other Liabilities, Current
Long-term operating lease liabilities	$ 212,107	$ 188,136
Total operating lease liabilities	$ 240,265	$ 212,562

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Business and Organization (Details)	12 Months Ended
Business and Organization (Details)	Dec. 31, 2024
Installation of systems in newly constructed facilities
Business and Organization
Percentage of revenue attributable to services	56.70%
Maintenance, repair and replacement services
Business and Organization
Percentage of revenue attributable to services	43.30%

Segment Information (Tables)

12 Months Ended

Dec. 31, 2024

Segment Information

Summary of information about reportable segments


	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Total assets at December 31, 2024	$	3,162,677	$	985,006	$	563,405	$	4,711,088
Total assets at December 31, 2023	$	2,180,021	$	901,025	$	224,533	$	3,305,579

	Year Ended December 31, 2024
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	5,527,604	$	1,499,872	$	—	$	7,027,476
Cost of services		4,413,108		1,137,957		—		5,551,065
Gross profit		1,114,496		361,915		—		1,476,411
Selling, general and administrative expenses		499,441		170,155		60,476		730,072
Gain on sale of assets		(1,813)		(1,217)		—		(3,030)
Operating income	$	616,868	$	192,977	$	(60,476)	$	749,369

Amortization of identifiable intangible assets	$	74,873	$	22,393	$	—	$	97,266
Depreciation expense	$	39,601	$	7,450	$	1,168	$	48,219
Capital expenditures	$	80,957	$	26,850	$	3,264	$	111,071

	Year Ended December 31, 2023
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	3,946,022	$	1,260,738	$	—	$	5,206,760
Cost of services		3,195,916		1,020,335		—		4,216,251
Gross profit		750,106		240,403		—		990,509
Selling, general and administrative expenses		394,657		129,623		50,143		574,423
Gain on sale of assets		(1,715)		(587)		—		(2,302)
Operating income	$	357,164	$	111,367	$	(50,143)	$	418,388

Amortization of identifiable intangible assets	$	17,619	$	25,785	$	—	$	43,404
Depreciation expense	$	30,850	$	6,576	$	736	$	38,162
Capital expenditures	$	82,449	$	9,600	$	2,789	$	94,838

	Year Ended December 31, 2022
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	3,178,475	$	961,889	$	—	$	4,140,364
Cost of services		2,597,856		800,900		—		3,398,756
Gross profit		580,619		160,989		—		741,608
Selling, general and administrative expenses		345,184		99,579		44,581		489,344
Gain on sale of assets		(1,290)		(295)		—		(1,585)
Operating income	$	236,725	$	61,705	$	(44,581)	$	253,849

Amortization of identifiable intangible assets	$	19,641	$	28,154	$	—	$	47,795
Depreciation expense	$	26,658	$	6,211	$	683	$	33,552
Capital expenditures	$	43,532	$	4,101	$	726	$	48,359

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 549,939	$ 205,150
Billed accounts receivable, less allowance for credit losses of $15,286 and $11,926, respectively	1,861,212	1,318,926
Unbilled accounts receivable, less allowance for credit losses of $1,475 and $850, respectively	95,786	72,774
Other receivables, less allowance for credit losses of $553 and $522, respectively	86,186	166,319
Inventories	59,224	65,538
Prepaid expenses and other	46,213	54,309
Costs and estimated earnings in excess of billings, less allowance for credit losses of $271 and $79, respectively	91,681	28,084
Total current assets	2,790,241	1,911,100
PROPERTY AND EQUIPMENT, NET	277,180	208,568
LEASE RIGHT-OF-USE ASSET	229,106	205,712
GOODWILL	875,270	666,834
IDENTIFIABLE INTANGIBLE ASSETS, NET	434,417	280,397
DEFERRED TAX ASSETS	85,441	17,723
OTHER NONCURRENT ASSETS	19,433	15,245
Total assets	4,711,088	3,305,579
CURRENT LIABILITIES:
Current maturities of long-term debt	6,042	4,867
Accounts payable	654,943	419,962
Accrued compensation and benefits	228,622	169,136
Billings in excess of costs and estimated earnings and deferred revenue	1,149,257	909,538
Accrued self-insurance	42,315	27,774
Other current liabilities	501,591	189,928
Total current liabilities	2,582,770	1,721,205
LONG-TERM DEBT	62,293	39,345
LEASE LIABILITIES	212,107	188,136
DEFERRED TAX LIABILITIES	2,225	1,120
OTHER LONG-TERM LIABILITIES	147,017	77,944
Total liabilities	3,006,412	2,027,750
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par, 5,000,000 shares authorized, none issued and outstanding
Common stock, $.01 par, 102,969,912 shares authorized, 41,123,365 and 41,123,365 shares issued, respectively	411	411
Treasury stock, at cost, 5,562,453 and 5,438,625 shares, respectively	(273,799)	(209,807)
Additional paid-in capital	350,734	339,562
Retained earnings	1,627,330	1,147,663
Total stockholders' equity	1,704,676	1,277,829
Total liabilities and stockholders' equity	$ 4,711,088	$ 3,305,579

Acquisitions - Other Acquisitions (Details) - USD ($) $ in Millions	May 01, 2024	Oct. 02, 2023	Feb. 01, 2023
DECCO
Acquisitions
Fair value of consideration transferred		$ 59.8
Cash paid at closing		48.8
Notes issued to former owners		$ 7.0
Eldeco Inc
Acquisitions
Fair value of consideration transferred			$ 74.0
Cash paid at closing			60.8
Notes issued to former owners			$ 8.0
Mechanical Contractor North Carolina
Acquisitions
Fair value of consideration transferred	$ 39.9

Income Taxes - Loss Carryforwards and Other (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2025
Operating loss carryforwards
Net operating loss and tax credit carryforwards		$ 2,963	$ 5,919
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties
Balance at beginning of year	$ 29,452	20,579	11,530	$ 29,452
Additions based on tax positions related to current year		7,591	6,370	3,420
Additions based on tax positions related to prior years		1,958	2,723	7,427
Reductions for tax positions related to prior years			(44)	(13)
Reductions for settlements with taxing authorities	(28,800)			(28,756)
Balance at end of year		30,128	20,579	11,530
Interest and penalties accrued		1,800	600	300
Reduced provision for income taxes	$ 28,800			$ 28,756
Maximum
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties
Decrease in unrecognized tax benefits					$ 5,300

Summary of Significant Accounting Policies and Estimates (Policies)

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies and Estimates

Principles of Consolidation

These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The accompanying consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. All intercompany accounts and transactions have been eliminated. Certain amounts in prior periods have been reclassified to conform to the current period presentation. The effects of the reclassification were not material to the consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, revenue and expenses and disclosures regarding contingent assets and liabilities. Actual results could differ from those estimates. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, self-insurance accruals, accounting for income taxes, fair value accounting for acquisitions and the quantification of fair value for reporting units in connection with our goodwill impairment testing.

Cash Flow Information

We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Cash paid (in thousands) for:


	Year Ended December 31,
	2024		2023		2022
Interest	$	6,428	$	9,862	$	12,915
Income taxes, net of refunds	$	102,819	$	100,254	$	44,296

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This standard requires entities to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief decision maker and included within each reported measure of segment profit and loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this standard beginning with our 2024

annual reporting and applied the requirements of the standard retrospectively to all periods presented. There was no impact of adoption on our consolidated financial position, results of operations or cash flow, but our disclosure in Note 16, “Segment Information” has been updated to conform with the requirements of ASU 2023-07.

Recent Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This standard requires entities to disclose more detailed information in the reconciliation of their statutory tax rate to their effective tax rate. The standard also requires entities to make additional disclosures on income taxes paid as well as on certain income statement-related disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. This standard will not have an impact on our consolidated financial position, results of operations or cash flows, but will affect our financial statement disclosures as discussed above.

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The standard requires entities to disclose, on an annual and interim basis, disaggregated information about certain income statement expense line items in the notes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact ASU 2024-03 will have on our disclosures; however, the standard will not have an impact on our consolidated financial position, results of operation or cash flow.

Revenue Recognition

We recognize revenue over time for all of our services as we perform them because (i) control continuously transfers to that customer as work progresses, and (ii) we have the right to bill the customer as costs are incurred. The customer typically controls the work in process, as evidenced either by contractual termination clauses or by our rights to payment for work performed to date, plus a reasonable profit, for delivery of products or services that do not have an alternative use to the Company.

For the reasons listed above, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We generally use a cost-to-cost input method to measure our progress towards satisfaction of the performance obligation for our contracts, as it best depicts the transfer of assets to the customer that occurs as we incur costs on our contracts. Under the cost-to-cost input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including estimated fees or profits, is recorded proportionally as costs are incurred. Costs to fulfill include labor, materials, subcontractors’ costs, other direct costs and an allocation of indirect costs.

For a small portion of our business in which our services are delivered in the form of service maintenance agreements for existing systems to be repaired and maintained, as opposed to constructed, our performance obligation is to maintain the customer’s mechanical system for a specific period of time. As with construction jobs, we recognize revenue over time; however, for service maintenance agreements in which the full cost to provide services may not be known, we generally use an input method to recognize revenue, which is based on the amount of time we have provided our services out of the total time we have been contracted to perform those services. Our revenue recognition policy is further discussed in Note 3 “Revenue from Contracts with Customers.”

Accounts Receivable and Allowance for Credit Losses

We are required to estimate and record the expected credit losses over the contractual life of our financial assets measured at amortized cost, including billed and unbilled accounts receivable, other receivables and contract assets. Accounts receivable include amounts from work completed in which we have billed or have an unconditional right to bill our customers. Our trade receivables are contractually due in less than a year.

We estimate our credit losses using a loss-rate method for each of our identified portfolio segments. Our portfolio segments are construction, service and other. While our construction and service financial assets are often with the same subset of customers and industries, our construction financial assets will generally have a lower loss-rate than

service financial assets due to lien rights, which we are more likely to have on construction jobs. These lien rights result in lower credit loss expenses on average compared to receivables that do not have lien rights. Financial assets classified as “other” include receivables that are not related to our core revenue producing activities, such as receivables related to our acquisition activity from former owners, our vendor rebate program or receivables for estimated losses in excess of our insurance deductible, which are accrued with a corresponding accrued insurance liability.

Loss rates for our portfolios are based on numerous factors, including our history of credit loss expense by portfolio, the financial strength of our customers and counterparties in each portfolio, the aging of our receivables, our expectation of likelihood of payment, macroeconomic trends in the U.S. and the current and forecasted nonresidential construction market trends in the U.S.

In addition to the loss-rate calculations discussed above, we also record allowance for credit losses for specific receivables that are deemed to have a higher risk profile than the rest of the respective pool of receivables (e.g., when we hold concerns about a specific customer going bankrupt and no longer being able to pay the receivables due to us).

Activity in our allowance for credit losses consisted of the following (in thousands):


	Year Ended December 31, 2024								Year Ended December 31, 2023
	Service		Construction		Other		Total		Service		Construction		Other		Total
Balance at beginning of year	$	5,700	$	7,600	$	77	$	13,377	$	5,245	$	6,931	$	65	$	12,241
Bad debt expense		4,190		2,731		31		6,952		2,113		2,819		12		4,944
Deductions for uncollectible receivables written off, net of recoveries		(2,273)		(596)		—		(2,869)		(1,658)		(2,355)		—		(4,013)
Credit allowance of acquired receivables on the acquisition date		—		125		—		125		—		205		—		205
Balance at end of period	$	7,617	$	9,860	$	108	$	17,585	$	5,700	$	7,600	$	77	$	13,377

Unbilled Accounts Receivable

Unbilled accounts receivable are amounts due to us that we have earned under a contract where our right to payment is unconditional. A right to consideration is unconditional if only the passage of time is required before payment of the consideration is due. These items are expected to be billed and collected in the normal course of business. Other unbilled receivables where payment is subject to factors beyond just the passage of time are included in contract assets.

Inventories

Inventories consist of parts and supplies that we purchase and hold for use in the ordinary course of business and are stated at the lower of cost or net realizable value using the average-cost method.

Property and Equipment

Property and equipment are stated at cost, and depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the expected life of the lease or the estimated useful life of the asset.

Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the remaining useful life of the equipment. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in “Gain on Sale of Assets” in the Consolidated Statements of Operations.

Recoverability of Goodwill and Identifiable Intangible Assets

Goodwill is the excess of purchase price over the fair value of the net assets of acquired businesses. We assess goodwill for impairment each year, and more frequently if circumstances suggest an impairment may have occurred.

When the carrying value of a given reporting unit exceeds its fair value, a goodwill impairment loss is recorded for this difference, not to exceed the carrying amount of goodwill. The requirements for assessing whether goodwill has been impaired involve market-based information. This information, and its use in assessing goodwill, entails some degree of subjective assessment.

We perform our annual impairment testing as of October 1, and any impairment charges resulting from this process are reported in the fourth quarter. We segregate our operations into reporting units based on the degree of operating and financial independence of each unit and our related management of them. We perform our annual goodwill impairment testing at the reporting unit level. We perform a goodwill impairment review for each of our operating units, as we have determined that each of our operating units are reporting units.

In the evaluation of goodwill for impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of one of our reporting units is greater than its carrying value. If, after completing such assessment, we determine it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then there is no need to perform any further testing. If we conclude otherwise, or if we elect to perform a quantitative assessment, then we calculate the fair value of the reporting unit and compare the fair value with the carrying value of the reporting unit.

We estimate the fair value of the reporting unit based on a market approach and an income approach, which utilizes discounted future cash flows. Assumptions critical to the fair value estimates under the discounted cash flow model include discount rates, cash flow projections, projected long-term growth rates and the determination of terminal values. The market approach utilizes market multiples of invested capital from comparable publicly traded companies (“public company approach”). The market multiples from invested capital include revenue, book equity plus debt and earnings before interest, provision for income taxes, depreciation and amortization (“EBITDA”).

We amortize identifiable intangible assets with finite lives over their useful lives. Changes in strategy and/or market condition may result in adjustments to recorded intangible asset balances or their useful lives.

Long-Lived Assets

Long-lived assets are comprised principally of identifiable intangible assets, property and equipment, lease right-of-use assets and deferred tax assets. We periodically evaluate whether events and circumstances have occurred that indicate that the remaining balances of these assets may not be recoverable. We use estimates of future undiscounted cash flows, as well as other economic and business factors, to assess the recoverability of these assets.

Acquisitions

We recognize assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition.

Contingent Consideration—In certain acquisitions, we agree to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain predetermined profitability targets. We have recognized liabilities for these contingent obligations based on their estimated fair value at the date of acquisition with any differences between the acquisition date fair value and the ultimate settlement of the obligations being recognized in income in the period of the change.

Contingent Assets and Liabilities—Assets and liabilities arising from contingencies are recognized at their acquisition date fair value when their respective fair values are determinable. Acquisition date fair value estimates are revised as necessary if, and when, additional information regarding these contingencies becomes available to further define and quantify assets acquired and liabilities assumed.

Self-Insurance Liabilities

with a corresponding receivable from our insurance carrier. Loss estimates associated with the larger and longer-developing risks, such as workers’ compensation, auto liability and general liability, are reviewed by a third-party actuary quarterly. Our self-insurance arrangements are further discussed in Note 13 “Commitments and Contingencies.”

Warranty Costs

We typically warrant labor for the first year after installation on new MEP systems that we build and install, and we pass through to the customer manufacturers’ warranties on equipment. We generally warrant labor for thirty days after servicing existing MEP systems. A reserve for warranty costs is estimated and recorded based upon the historical level of warranty claims and management’s estimate of future costs.

Income Taxes

We conduct business throughout the United States in virtually all fifty states. Our effective tax rate changes based upon our relative profitability, or lack thereof, in the federal and various state jurisdictions with differing tax rates and rules. In addition, discrete items such as tax law changes, judgments and legal structures, can impact our effective tax rate. These items can also include the tax treatment for impairment of goodwill and other intangible assets, changes in fair value of acquisition-related assets and liabilities, uncertain tax positions, and accounting for losses associated with underperforming operations.

Income taxes are provided for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities based on the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, taxable income in prior carryback years and tax planning strategies. Management’s judgment is required in considering the relative weight of negative and positive evidence.

We record uncertain tax positions based on a two-step process in which (i) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the relevant taxing authority.

To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income taxes, such amounts are accrued and classified as a component in the provision for income taxes in our Consolidated Statements of Operations.

Concentrations of Credit Risk

We provide services in a broad range of geographic regions. Our credit risk primarily consists of receivables from a variety of customers, including general contractors, property owners and developers, and commercial and industrial companies. We are subject to potential credit risk related to changes in business and economic factors throughout the United States within the nonresidential construction industry. However, we are entitled to payment for work performed and have certain lien rights related to that work. Further, we believe that our contract acceptance, billing and collection policies are adequate to manage potential credit risk. We regularly review our accounts receivable and estimate an allowance for credit losses. We have a diverse customer base, with our top customer representing 13.3% of consolidated 2024 revenue and 17.7% of total receivables as of December 31, 2024.

Financial Instruments

Our financial instruments consist of cash and cash equivalents, accounts receivable, other receivables, accounts payable and life insurance policies, for which we deem the carrying values approximate their fair values due to the short-term nature of these instruments, as well as notes to former owners and a revolving credit facility.

Investments

We have a $6.8 million investment in a construction-focused technology fund with a fair value that is not readily determinable and is recorded at cost. This investment is included in “Other Noncurrent Assets” in our Consolidated Balance Sheet and is reviewed quarterly for impairment. We did not recognize any impairments in the current year related to this investment.

Leases

The following table summarizes the operating lease assets and liabilities included in the Consolidated Balance Sheet as of December 31, 2024 and December 31, 2023 (in thousands):


	December 31,
	2024		2023
Operating lease right-of-use assets	$	229,106	$	205,712
Operating lease liabilities:
Other current liabilities	$	28,158	$	24,426
Long-term operating lease liabilities		212,107		188,136
Total operating lease liabilities	$	240,265	$	212,562

The maturities of operating lease liabilities as of December 31, 2024 are as follows (in thousands):


Year ending December 31—
2025	$	41,442
2026		37,819
2027		33,246
2028		29,286
2029		25,518
Thereafter		170,630
Total lease payments		337,941
Less—present value discount		(97,676)
Present value of operating lease liabilities	$	240,265

Supplemental information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	39,702	$	29,454
Operating lease right-of-use assets obtained in exchange for lease liabilities	$	54,344	$	101,010

Detail of Other Current Liabilities

12 Months Ended

Dec. 31, 2024

Detail of Other Current Liabilities

Detail of Other Current Liabilities

8. Detail of Other Current Liabilities

Other current liabilities consist of the following (in thousands):


	December 31,
	2024		2023
Accrued warranty costs	$	16,148	$	11,650
Current lease liability		28,158		24,426
Accrued job losses		21,636		5,458
Accrued sales and use tax		5,568		6,592
Liabilities due to former owners		87,417		49,024
Repayments to customers		250,008		37,241
Other current liabilities		92,656		55,537
	$	501,591	$	189,928

Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

Interest Rate Risk Management and Derivative Instruments

At times, we use derivative instruments to manage exposure to market risk, including interest rate risk. Unsettled amounts under our interest rate swaps, if any, are recorded in the Consolidated Balance Sheet at fair value in “Other Receivables” or “Other Current Liabilities.” Gains and losses on our interest rate swaps are recorded in the Consolidated Statement of Operations in “Interest Expense.” For the year ended December 31, 2022, we recognized a net gain of $0.3 million related to our interest rate swaps. We currently do not have any derivatives that are accounted for as hedges under ASC 815.

Fair Value Measurement

We classify and disclose assets and liabilities carried at fair value in one of the following three categories:

●

Level 1—quoted prices in active markets for identical assets and liabilities;

●

Level 2—observable market-based inputs or unobservable inputs that are corroborated by market data; and

●

Level 3—significant unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.


	Fair Value Measurements at December 31, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	549,939	$	—	$	—	$	549,939
Contingent earn-out obligations	$	—	$	—	$	140,156	$	140,156

	Fair Value Measurements at December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	205,150	$	—	$	—	$	205,150
Life insurance—cash surrender value	$	—	$	7,473	$	—	$	7,473
Contingent earn-out obligations	$	—	$	—	$	44,222	$	44,222

Cash and cash equivalents consist primarily of deposit accounts and highly rated money market funds at a variety of well-known institutions with original maturities of three months or less. The original cost of these assets approximates fair value due to their short-term maturity. We believe the carrying value of our debt associated with our revolving credit facility approximates its fair value due to the variable rate on such debt. We believe the carrying values of our notes to former owners approximate their fair values due to the relatively short remaining terms on these notes.

As of December 31, 2023, we had life insurance policies covering 131 employees with a combined face value of $87.8 million. The policies are invested in several investment vehicles, and the fair value measurement of the cash surrender balance associated with these policies is determined using Level 2 inputs within the fair value hierarchy and will vary with investment performance. The cash surrender value of these policies is included in “Other Noncurrent Assets” in our Consolidated Balance Sheets.

We value contingent earn-out obligations using a probability weighted discounted cash flow method. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. This analysis reflects the contractual terms of the purchase agreements (e.g., minimum and maximum payments, length of earn-out periods, manner of calculating any amounts due, etc.) and utilizes assumptions with regard to future cash flows and operating income, probabilities of achieving such future cash flows and operating income and a weighted average cost of capital. Significant changes in any of these assumptions could result in a significantly higher or lower potential liability. The contingent earn-out obligations are measured at fair value each

reporting period, and changes in estimates of fair value are recognized in earnings. As of December 31, 2024, cash flows were discounted using a weighted average cost of capital of 19.5%.

The table below presents a reconciliation of the fair value of our contingent earn-out obligations that use significant unobservable inputs (Level 3) (in thousands):


	Year Ended		Year Ended
	December 31, 2024		December 31, 2023
Balance at beginning of year	$	44,222	$	32,317
Issuances		51,784		4,315
Settlements		(43,996)		(16,017)
Adjustments to fair value		88,146		23,607
Balance at end of year	$	140,156	$	44,222

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2024

Stock-Based Compensation

Stock-Based Compensation

15. Stock-Based Compensation

Grants of restricted stock and restricted stock units and performance share units have been determined and administered by the compensation committee of the Board of Directors. Total stock-based compensation expense was $16.6 million, $12.9 million and $10.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. Stock-based compensation expense is recognized using the straight-line method over the vesting period and generally vests over a three-year vesting period. Certain awards provide for accelerated vesting when the sum of an employee's age and years of service is at least 75. We recognize forfeitures as they occur. Total income tax benefit recognized for stock-based compensation arrangements was $3.5 million, $2.7 million and $2.2 million for each of the years ended December 31, 2024, 2023 and 2022.

We generally issue treasury shares for stock options and restricted stock, unless treasury shares are not available. Upon the vesting of restricted shares, we have allowed the holder to elect to surrender an amount of shares to meet their statutory tax withholding requirements. These shares are accounted for as treasury stock based upon the value of the stock on the date of vesting.

Restricted Stock and Restricted Stock Units

The following table summarizes activity under our restricted stock plans (shares in thousands):


	Year Ended
	December 31, 2024
		Weighted-
		Average Grant
Restricted Stock and Restricted Stock Units	Shares	Date Fair Value
Unvested at beginning of year	113	$	130.83
Granted	25	$	315.04
Vested	(57)	$	134.54
Forfeited	(2)	$	158.37
Unvested at end of year	79	$	187.33

Approximately $6.4 million of compensation expense related to restricted stock and restricted stock units will be recognized over a weighted-average period of 1.9 years. We determine the fair value of restricted stock and restricted stock units based on the quoted price of our stock at the date of grant. The weighted-average grant date fair value per share of restricted stock shares and units awarded during 2024, 2023 and 2022 was $315.04, $164.47 and $90.17, respectively. The fair value of restricted stock vested during the years ended December 31, 2024, 2023 and 2022 was $19.8 million, $9.3 million and $6.6 million, respectively.

Performance Stock Units

Under the 2017 Plan, we granted dollar-denominated performance vesting restricted stock units (“PSUs”), which cliff vest at the end of a three-year performance period. The PSUs are subject to two performance measures; 50% of the PSUs are based on the annual performance of our stock price relative to a group of our peers (total shareholder return) and 50% of the PSUs are measured based on meeting or exceeding a pre-determined annual earnings per share target as set by our Board of Directors (EPS). Depending on the Company’s performance in relation to the established performance measures, the awards may vest at zero to a maximum of 2.0 times the dollar-denominated award granted at target. Upon achievement of the necessary performance metrics, the award will be determined in dollars and may be settled in cash or stock on the settlement date, at our discretion.

Compensation expense for dollar-denominated performance units will ultimately be equal to the final dollar value awarded to the grantee upon vesting, settled either in cash or stock. However, throughout the performance period we must record and accrue expense based on an estimate of that future payout. For units determined by EPS performance, the awards are evaluated quarterly against established targets in order to estimate the liability throughout the vesting period. For units determined by total shareholder return performance, a Monte Carlo simulation model is used to estimate accruals throughout the vesting period. The model simulates our total shareholder return and compares it against our peer group over the three-year performance period to produce a predicted distribution of relative share performance. This is applied to the reward criteria to give an expected value of the total shareholder return element. The calculated fair market value as of December 31, 2024 was $17.9 million. Of this amount, $6.6 million relates to the

PSUs granted in 2022 whose performance period ended December 31, 2024. These awards will be settled within the upcoming year either in cash or stock. The fair value of performance stock units vested during the years ended December 31, 2024, 2023, and 2022 was $5.4 million, $4.5 million and $3.5 million, respectively. The expense related to performance stock units for the years ended December 31, 2024, 2023 and 2022 was $7.8 million, $6.6 million and $5.3 million, respectively. At the December 31, 2024 calculated fair market value, approximately $2.6 million of compensation expense related to performance stock units will be recognized over a weighted-average period of 1.3 years.

We estimated the fair value of the total shareholder return portion of the PSUs as of December 31, 2024, 2023, and 2022 using a Monte Carlo simulation model with the following assumptions:


December 31, 2024	2024 PSU Grant		2023 PSU Grant
Risk-free interest rate	4.2	%	4.1	%
Dividend yield	0.3	%	0.3	%
Volatility	40.2	%	44.9	%
Look-back period (in years)	2.0		1.0

December 31, 2023	2023 PSU Grant		2022 PSU Grant
Risk-free interest rate	4.2	%	4.7	%
Dividend yield	0.5	%	0.5	%
Volatility	35.0	%	35.1	%
Look-back period (in years)	2.0		1.0

December 31, 2022	2022 PSU Grant		2021 PSU Grant
Risk-free interest rate	4.4	%	4.7	%
Dividend yield	0.5	%	0.5	%
Volatility	33.5	%	35.1	%
Look-back period (in years)	2.0		1.0

The look-back period reflects the remaining performance period as of the respective year-end dates. The risk-free interest rate for the remaining performance period is based on U.S. Treasury rates as of the respective year-end dates. The assumption for the expected volatility reflects the daily annualized historical volatility on the Company’s dividend adjusted close stock prices measured over the look-back period. The dividend yield assumption is based on the annualized most recent quarterly dividend divided by the stock price on the respective year-end dates.

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2024

Property and Equipment

Schedule of components of property and equipment

Property and equipment consist of the following (dollars in thousands):


	Estimated
	Useful Lives	December 31,
	in Years	2024		2023
Land	—	$	12,898	$	8,437
Transportation equipment	1 - 7		223,741		188,073
Machinery and equipment	1 - 20		92,701		77,142
Computer and telephone equipment	1 - 10		32,636		29,052
Buildings and leasehold improvements	1 - 40		128,652		101,568
Furniture and fixtures	1 - 17		9,956		8,600
Construction in progress	—		26,233		12,645
			526,817		425,517
Less—Accumulated depreciation			(249,637)		(216,949)
Property and equipment, net		$	277,180	$	208,568

Detail of Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Other current liabilities
Accrued warranty costs	$ 16,148	$ 11,650
Current lease liability	28,158	24,426
Accrued job losses	21,636	5,458
Accrued sales and use tax	5,568	6,592
Liabilities due to former owners	87,417	49,024
Repayments to customers	250,008	37,241
Other current liabilities	92,656	55,537
Total other current liabilities	$ 501,591	$ 189,928

Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($)
Remaining Performance Obligations
The term of the renewable service maintenance agreements (in years)	1 year
Practical Expedient	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Remaining Performance Obligations
Remaining performance obligations	$ 5,990
Expected timing of performance obligations	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 \| Minimum
Remaining Performance Obligations
Expected percentage of remaining performance obligations	65.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 \| Maximum
Remaining Performance Obligations
Expected percentage of remaining performance obligations	75.00%

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2024

Summit Texas

Acquisitions

Schedule of acquisition date fair value of consideration transferred and the acquisition date fair value of the identifiable assets acquired and liabilities assumed, including an amount for goodwill


Consideration transferred:
Cash paid at closing	$	267,500
Working capital adjustment		14,602
Notes issued to former owners		35,000
Estimated fair value of contingent earn-out payments		42,732
	$	359,834
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	$	171,027
Billed and unbilled accounts receivable		59,846
Prepaid expenses and other		1,476
Cost and estimated earnings in excess of billings		578
Property and equipment		2,528
Lease right-of-use asset		2,364
Goodwill		155,345
Identifiable intangible assets		170,100
Other noncurrent assets		136
Accounts payable		(15,130)
Billings in excess of costs and estimated earnings and deferred revenue		(179,895)
Current operating lease liabilities		(1,495)
Accrued expenses and other current liabilities		(6,293)
Long-term operating lease liabilities		(753)
	$	359,834

Schedule of acquired intangible assets

The acquired intangible assets include the following (dollars in thousands):


	Valuation Method	Estimated Useful Life		Estimated Fair Value
Backlog	Excess earnings	1.7 years	$	35,800
Trade Name	Relief-from-royalty	22.9 years		11,300
Customer Relationships	Excess earnings	10 years		123,000
Total			$	170,100

J&S Utah

Acquisitions

Schedule of acquisition date fair value of consideration transferred and the acquisition date fair value of the identifiable assets acquired and liabilities assumed, including an amount for goodwill


Consideration transferred:
Cash paid at closing	$	100,000
Working capital adjustment		1,587
Notes issued to former owners		10,000
Estimated fair value of contingent earn-out payments		9,052
	$	120,639


Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	$	14,802
Billed and unbilled accounts receivable		38,411
Inventory		230
Prepaid expenses and other		397
Costs and estimated earnings in excess of billings		728
Property and equipment		2,674
Lease right-of-use asset		4,552
Goodwill		40,783
Identifiable intangible assets		63,300
Other noncurrent assets		10
Accounts payable		(20,649)
Billings in excess of costs and estimated earnings and deferred revenue		(19,188)
Current operating lease liabilities		(133)
Accrued expenses and other current liabilities		(907)
Long-term debt		(59)
Long-term operating lease liabilities		(4,312)
	$	120,639

Schedule of acquired intangible assets


		Estimated	Estimated
	Valuation Method	Useful Life	Fair Value
Backlog	Excess earnings	1.7 years	$	12,900
Trade Name	Relief-from-royalty	22 years		10,600
Customer Relationships	Excess earnings	9 years		39,800
Total			$	63,300

Stockholders' Equity - Incentive and Other (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	12 Months Ended			213 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2024	Aug. 07, 2024	May 31, 2017	Mar. 29, 2007
Share Repurchase Program
Share repurchase	$ 57,912	$ 21,184	$ 38,216
2017 Omnibus Incentive Plan
Stockholders' Equity
Number of shares authorized and reserved for issuance						2.9
Number of shares available for issuance	1.5			1.5
Stock Repurchase Program 2007
Share Repurchase Program
Number of shares of outstanding common stock authorized to be acquired under a stock repurchase program	11.4			11.4			1.0
Additional number of shares authorized for repurchase					0.4
Share repurchase (in shares)	0.2			10.4
Share repurchase	$ 58,300
Average price (in dollars per share)	$ 329.14			$ 31.41

Summary of Significant Accounting Policies and Estimates

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies and Estimates

Summary of Significant Accounting Policies and Estimates

2. Summary of Significant Accounting Policies and Estimates

Principles of Consolidation

Use of Estimates

Cash Flow Information

We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Cash paid (in thousands) for:


	Year Ended December 31,
	2024		2023		2022
Interest	$	6,428	$	9,862	$	12,915
Income taxes, net of refunds	$	102,819	$	100,254	$	44,296

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Revenue Recognition

Accounts Receivable and Allowance for Credit Losses

Activity in our allowance for credit losses consisted of the following (in thousands):


	Year Ended December 31, 2024								Year Ended December 31, 2023
	Service		Construction		Other		Total		Service		Construction		Other		Total
Balance at beginning of year	$	5,700	$	7,600	$	77	$	13,377	$	5,245	$	6,931	$	65	$	12,241
Bad debt expense		4,190		2,731		31		6,952		2,113		2,819		12		4,944
Deductions for uncollectible receivables written off, net of recoveries		(2,273)		(596)		—		(2,869)		(1,658)		(2,355)		—		(4,013)
Credit allowance of acquired receivables on the acquisition date		—		125		—		125		—		205		—		205
Balance at end of period	$	7,617	$	9,860	$	108	$	17,585	$	5,700	$	7,600	$	77	$	13,377

Unbilled Accounts Receivable

Inventories

Property and Equipment

Recoverability of Goodwill and Identifiable Intangible Assets

Long-Lived Assets

Acquisitions

We recognize assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition.

Self-Insurance Liabilities

Warranty Costs

Income Taxes

Concentrations of Credit Risk

Financial Instruments

Investments

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
REVENUE	$ 7,027,476	$ 5,206,760	$ 4,140,364
COST OF SERVICES	5,551,065	4,216,251	3,398,756
Gross profit	1,476,411	990,509	741,608
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	730,072	574,423	489,344
GAIN ON SALE OF ASSETS	(3,030)	(2,302)	(1,585)
Operating income	749,369	418,388	253,849
OTHER INCOME (EXPENSE):
Interest income	11,554	3,492	46
Interest expense	(6,648)	(10,281)	(13,352)
Changes in the fair value of contingent earn-out obligations	(88,146)	(23,607)	(4,819)
Other	432	202	134
Other income (expense)	(82,808)	(30,194)	(17,991)
INCOME BEFORE INCOME TAXES	666,561	388,194	235,858
PROVISION (BENEFIT) FOR INCOME TAXES	144,128	64,796	(10,089)
NET INCOME	$ 522,433	$ 323,398	$ 245,947
INCOME PER SHARE:
Basic	$ 14.64	$ 9.03	$ 6.84
Diluted	$ 14.6	$ 9.01	$ 6.82
SHARES USED IN COMPUTING INCOME PER SHARE:
Basic	35,689	35,802	35,932
Diluted	35,775	35,895	36,046

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2024

Restricted Stock [Member]

Summary of information about nonvested stock option awards and changes

The following table summarizes activity under our restricted stock plans (shares in thousands):


	Year Ended
	December 31, 2024
		Weighted-
		Average Grant
Restricted Stock and Restricted Stock Units	Shares	Date Fair Value
Unvested at beginning of year	113	$	130.83
Granted	25	$	315.04
Vested	(57)	$	134.54
Forfeited	(2)	$	158.37
Unvested at end of year	79	$	187.33

Performance Stock Units

Schedule of fair values of the total shareholder return portion


December 31, 2024	2024 PSU Grant		2023 PSU Grant
Risk-free interest rate	4.2	%	4.1	%
Dividend yield	0.3	%	0.3	%
Volatility	40.2	%	44.9	%
Look-back period (in years)	2.0		1.0

December 31, 2023	2023 PSU Grant		2022 PSU Grant
Risk-free interest rate	4.2	%	4.7	%
Dividend yield	0.5	%	0.5	%
Volatility	35.0	%	35.1	%
Look-back period (in years)	2.0		1.0

December 31, 2022	2022 PSU Grant		2021 PSU Grant
Risk-free interest rate	4.4	%	4.7	%
Dividend yield	0.5	%	0.5	%
Volatility	33.5	%	35.1	%
Look-back period (in years)	2.0		1.0

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes

Schedule of provision for income taxes relating to continuing operations

Our provision (benefit) for income taxes relating to continuing operations consists of the following (in thousands):


	December 31,
	2024		2023		2022
Current tax provision (benefit)—
Federal	$	170,844	$	(34,722)	$	58,040
State		39,897		4,222		26,376
Total current		210,741		(30,500)		84,416
Deferred tax provision (benefit)—
Federal		(54,119)		81,119		(80,130)
State		(12,494)		14,177		(14,375)
Total deferred		(66,613)		95,296		(94,505)
Provision (benefit) for income taxes	$	144,128	$	64,796	$	(10,089)

Schedule of difference in income taxes provided for and the amounts determined by applying the federal statutory tax rate to income before income taxes results


	December 31,
	2024			2023			2022
Federal statutory rate of—		21	%		21	%		21	%
Income taxes at the federal statutory rate	$	139,978		$	81,521		$	49,530
Increases (decreases) resulting from—
Net state income taxes		25,748			14,278			9,376
Net unrecognized tax benefits		9,549			9,049			(17,922)
Nondeductible expenses		9,921			5,774			4,045
R&D tax credit		(36,216)			(43,791)			(51,398)
Other		(4,852)			(2,035)			(3,720)
Provision (benefit) for income taxes	$	144,128		$	64,796		$	(10,089)

Schedule of significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the Consolidated Balance Sheets

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows (in thousands):


	Year Ended
	December 31,
	2024		2023
Deferred tax assets—
Accounts receivable and allowance for credit losses	$	4,139	$	3,203
Stock-based compensation		5,329		4,549
Accrued liabilities and expenses		63,519		44,209
Lease liabilities		57,673		51,065
Net operating loss and tax credit carryforwards		2,963		5,919
Goodwill		24,592		—
Intangible assets		21,075		8,570
Research and experimental expenditures		—		195,444
Other		1,685		1,192
Subtotal		180,975		314,151
Valuation allowances		(2,751)		(156)
Total deferred tax assets		178,224		313,995
Deferred tax liabilities—
Property and equipment		(29,970)		(27,049)
Lease right-of-use asset		(57,673)		(51,058)
Long-term contracts		(2,429)		(193,144)
Goodwill		—		(24,452)
Other		(4,936)		(1,689)
Total deferred tax liabilities		(95,008)		(297,392)
Net deferred tax assets	$	83,216	$	16,603

Schedule of deferred income tax assets and liabilities included in the consolidated balance sheets

The deferred tax assets and deferred tax liabilities reflected above are included in the Consolidated Balance Sheets as follows (in thousands):


	December 31,
	2024		2023
Deferred tax assets	$	85,441	$	17,723
Deferred tax liabilities	$	2,225	$	1,120

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Balance at beginning of year	$	20,579	$	11,530	$	29,452
Additions based on tax positions related to current year		7,591		6,370		3,420
Additions based on tax positions related to prior years		1,958		2,723		7,427
Reductions for tax positions related to prior years		—		(44)		(13)
Reductions for settlements with taxing authorities		—		—		(28,756)
Balance at end of year	$	30,128	$	20,579	$	11,530

Revenue from Contracts with Customers - Narratives (Details)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contracts with Customers
Percentage impact on revenue from performance obligations satisfied in previous period	2.30%	1.30%	1.10%

Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of components of debt obligations

Debt obligations consist of the following (in thousands):


	December 31,
	2024		2023
Revolving credit facility	$	—	$	—
Notes to former owners		67,593		44,070
Other debt		742		142
Total debt		68,335		44,212
Less—current portion		(6,042)		(4,867)
Total long-term portion of debt	$	62,293	$	39,345

Schedule of future principal payments of notes to former owners

At December 31, 2024, future principal payments of debt are as follows (in thousands):


Year ending December 31—
2025	$	6,042
2026		30,697
2027		26,029
2028		5,022
2029		545
	$	68,335

Schedule of interest expense


	Year Ended December 31,
	2024		2023		2022
Interest expense on notes to former owners	$	3,616	$	1,365	$	1,139
Interest expense on borrowings and unused commitment fees		1,434		7,507		10,955
Interest expense (income) on interest rate swaps		—		—		(332)
Interest expense on finance leases		—		—		4
Letter of credit fees		911		724		800
Amortization of debt financing costs		687		685		786
Total	$	6,648	$	10,281	$	13,352

Schedule of market rates relating to interest options under the Facility


Base Rate Loan Option:
Federal Funds Rate plus 0.50%		4.83%
Wells Fargo Bank, N.A. Prime Rate		7.50%
One-month SOFR plus 1.00%		5.53%
SOFR Loan Option:
One-month SOFR		4.53%
Three-month SOFR		4.69%
Six-month SOFR		5.03%

Summary of additional margins


	Net Leverage Ratio
	Less than 1.00		1.00 to less than 1.75		1.75 to less than 2.50		2.50 to less than 3.00		3.00 or greater
Additional Per Annum Interest Margin Added Under:
Base Rate Loan Option	0.00	%	0.25	%	0.50	%	0.75	%	1.00	%
SOFR Loan Option	1.00	%	1.25	%	1.50	%	1.75	%	2.00	%
Letter of credit fees	1.00	%	1.25	%	1.50	%	1.75	%	2.00	%
Commitment fees on any portion of the Revolving Loan capacity not in use for borrowings or letters of credit at any given time	0.15	%	0.175	%	0.20	%	0.225	%	0.25	%

Notes to former owners

Schedule of future principal payments of notes to former owners

At December 31, 2024, future principal payments of notes to former owners by maturity year are as follows (dollars in thousands):


	Balance at		Range of Stated
	December 31, 2024		Interest Rates
2025	$	5,968	2.3 - 2.5	%
2026		30,625	2.5 - 5.5	%
2027		26,000	5.5	%
2028		5,000	5.5	%
Total	$	67,593

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies
Gain (loss) related to settlement agreements			$ 5.1
Dispute With Customer
Commitments and Contingencies
Gain (loss) related to settlement agreements		$ 6.8
Surety \| Minimum
Surety
Percentage of business which has required bonds	10.00%
Surety \| Maximum
Surety
Percentage of business which has required bonds	20.00%
Gross Profit. \| Dispute With Customer
Commitments and Contingencies
Gain (loss) related to settlement agreements		6.6
Selling, General and Administrative Expenses \| Dispute With Customer
Commitments and Contingencies
Gain (loss) related to settlement agreements		0.7
Interest Income \| Dispute With Customer
Commitments and Contingencies
Gain (loss) related to settlement agreements		1.3
Change in Fair Value of Contingent Earn-Out Obligations \| Dispute With Customer
Commitments and Contingencies
Gain (loss) related to settlement agreements		$ (1.8)

Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases

Schedule of operating lease assets and liabilities

The following table summarizes the operating lease assets and liabilities included in the Consolidated Balance Sheet as of December 31, 2024 and December 31, 2023 (in thousands):


	December 31,
	2024		2023
Operating lease right-of-use assets	$	229,106	$	205,712
Operating lease liabilities:
Other current liabilities	$	28,158	$	24,426
Long-term operating lease liabilities		212,107		188,136
Total operating lease liabilities	$	240,265	$	212,562

Schedule of maturities of lease liabilities


	December 31,
	2024		2023
Operating lease right-of-use assets	$	229,106	$	205,712
Operating lease liabilities:
Other current liabilities	$	28,158	$	24,426
Long-term operating lease liabilities		212,107		188,136
Total operating lease liabilities	$	240,265	$	212,562

Schedule of supplemental information related to leases

Supplemental information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	39,702	$	29,454
Operating lease right-of-use assets obtained in exchange for lease liabilities	$	54,344	$	101,010

Fair Value Measurements (Details) $ in Thousands	12 Months Ended
Fair Value Measurements (Details) $ in Thousands	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) employee	Dec. 31, 2022 USD ($)
Fair Value Measurements
Number of employees covered under life insurance policies \| employee		131
Combined face value of life insurance policies	$ 101,900	$ 87,800
Weighted average cost of capital	19.50%
Reconciliation of the fair value of contingent earn-out obligations that use significant unobservable inputs (Level 3)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability
Contingent earn-out obligations
Fair Value Measurements
Contingent earn-out obligations	$ 140,156	$ 44,222	$ 32,317
Reconciliation of the fair value of contingent earn-out obligations that use significant unobservable inputs (Level 3)
Balance at beginning of year	44,222	32,317
Issuances	51,784	4,315
Settlements	(43,996)	(16,017)
Adjustments to fair value	(88,146)	(23,607)
Balance at end of year	140,156	44,222	32,317
Recurring basis \| Total
Fair Value Measurements
Cash and cash equivalents	549,939	205,150
Life insurance-cash surrender value		7,473
Contingent earn-out obligations	140,156	44,222
Reconciliation of the fair value of contingent earn-out obligations that use significant unobservable inputs (Level 3)
Balance at beginning of year	44,222
Balance at end of year	140,156	44,222
Recurring basis \| Quoted Market Prices In Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Cash and cash equivalents	549,939	205,150
Recurring basis \| Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Life insurance-cash surrender value		7,473
Recurring basis \| Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Contingent earn-out obligations	140,156	44,222
Reconciliation of the fair value of contingent earn-out obligations that use significant unobservable inputs (Level 3)
Balance at beginning of year	44,222
Balance at end of year	$ 140,156	$ 44,222
Interest Rate Swap
Fair Value Measurements
Net gain (loss)			$ 300