EMEEmcor

Revenues of our United States electrical construction and facilities services segment were $3,342.9 million $5.07 billion for the year ended December 31, 2024, 2025, a $559.2 million $1.73 billion increase compared to revenues of $2,783.7 million $3.34 billion for the year ended December 31, 2023. 2024. This segment’s results for 2024 2025 included $2.7 million $1.11 billion of incremental acquisition revenues. Excluding revenues, almost entirely from Miller Electric. From a market sector perspective, increased revenues were generated from nearly all of the impact of acquisitions, sectors we serve. While the largest increase in this segment’s revenues was primarily a result of growth seen within the network and communications market sector, predominantly due to driven by greater demand for data center construction projects. Increased demand for cloud computing and data storage, driven in part by projects, this segment also experienced notable revenue growth within: (a) the emergence healthcare market sector, as a result of artificial intelligence, has resulted in a greater number of project opportunities for us in activity across several of the geographies in which we operate. In addition, this segment benefited from revenue growth within a number of operate, (b) the other market sectors we serve, such as: (a) the high-tech manufacturing commercial market sector, inclusive of construction projects for customers engaged in certain tenant fit-out and warehousing and distribution projects, (c) the design and manufacturing of semiconductors, (b) the manufacturing and industrial institutional market sector, driven by increased activity with various energy primarily given an increase in revenues from public sector customers, (c) projects, (d) the hospitality and entertainment market sector, due to select project opportunities, and (e) the transportation market sector, due to stemming from certain infrastructure projects currently underway, underway. Revenues of this segment for the year ended December 31, 2025 additionally benefited from greater levels of short-duration projects and (d) the institutional market sector, given increased project revenues from certain schools and universities. These service work. Partially offsetting these increases were partially offset by was a reduction in high-tech manufacturing revenues within the commercial market sector due in part to reduced demand across the commercial real estate industry. as we completed or reached substantial completion on various semiconductor, bio-tech, and life sciences construction projects.

As part of our risk management strategy, we are effectively self-insured against certain potential liabilities. Although we maintain insurance policies with respect to a broad range of risks, including automobile liability, general liability, workers’ compensation, and property damage, these policies do not cover all possible claims and certain of the policies are subject to large deductibles and retentions. In addition, we maintain a wholly-owned captive insurance subsidiary to manage certain of our insurance liabilities. Accordingly, we are effectively self-insured for a substantial number of actual and potential claims. Further, if any of our insurance carriers defaulted on its obligations to provide insurance coverage by reason of its insolvency or for other reasons, our exposure to claims would increase and our profits would be adversely affected. Our estimates for unpaid claims and expenses are based on known facts, historical trends, and industry averages, utilizing the assistance of an independent third-party actuary. The determination of such estimated liabilities and their appropriateness are reviewed and updated at least quarterly. However, these liabilities are difficult to assess and estimate due to many relevant factors, the effects of which are often unknown, including the severity of an injury or damage, the determination of liability in proportion to other parties, the timeliness of reported claims, the effectiveness of our risk management and safety programs, denial of coverage by our insurance carriers, and the terms and conditions of our insurance policies and/or customer contracts. Our accruals are based upon known facts, historical trends and our reasonable estimate of future expenses, and we believe such accruals are adequate.

In December 2023, the FASB Financial Accounting Standards Board (the “FASB”) issued an ASU Accounting Standards Update (“ASU”) intended to enhance the transparency and decision-usefulness of income tax disclosures. Such guidance requires entities to provide additional information within their income tax rate reconciliation, including further disclosure of federal, state, and foreign income taxes and to provide more details about these reconciling items if a quantitative threshold is met. This guidance additionally requires expanded disclosure of income taxes paid, including amounts paid for federal, state, and foreign taxes. This ASU, which is required to be applied prospectively, ASU is effective for fiscal years beginning after December 15, 2024, although early adoption and retrospective application is permitted. 2024. While the adoption of this ASU will did not have an impact on our financial position and/or results of operations, we are currently evaluating have provided the impact on our income tax disclosures, including additional required disclosures within Note 11 - Income Taxes of the processes and controls around the collection of this information. notes to consolidated financial statements.

We are subject to regulation regulations with respect to the handling or disposal of certain materials used in the performance of our services, which are classified as hazardous or toxic by federal, state, and local agencies. Our practice is to avoid participation in projects principally involving the remediation or removal of such materials. However, when remediation is required as part of our contract performance, we believe we comply with all applicable regulations governing the discharge of hazardous materials into the environment or otherwise relating to the protection of the environment.