10-K 0000105634-26-000025 (2026-02-26) vs 10-K 0000105634-25-000015 (2025-02-26)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 10,629 |
10.1% |
| MD&A | Item 7 | 9,307 |
22.9% |
| Legal Proceedings | Item 3, via Note 15 – COMMITMENTS AND CONTINGENCIES | 919 |
8.8% |
| Accounting Policies | Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2,246 |
9.0% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 264 words changed in this paragraph; it is 42% similar to last year's version.
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.
Source: Item 7, 10-K 0000105634-26-000025 vs Item 7, 10-K 0000105634-25-000015
Risk Factors 172 words changed in this paragraph; it is 51% similar to last year's version.
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.
Source: Item 1A, 10-K 0000105634-26-000025 vs Item 1A, 10-K 0000105634-25-000015
Accounting Policies 65 words changed in this paragraph; it is 77% similar to last year's version.
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.
Source: Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000105634-26-000025 vs Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000105634-25-000015
Legal Proceedings 8 words changed in this paragraph; it is 95% similar to last year's version.
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.
Source: Item 3, via Note 15 – COMMITMENTS AND CONTINGENCIES, 10-K 0000105634-26-000025 vs Item 3, via Note 15 – COMMITMENTS AND CONTINGENCIES, 10-K 0000105634-25-000015
Every change, by type
Sentences and paragraphs of EME's Risk Factors and MD&A, 10-K 2026-02-26 against 10-K 2025-02-26.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
For additional information on our strategy and processes for assessing, identifying, and managing the risks posed by cybersecurity threats, and the management and oversight of such efforts, refer to Part I, Item 1C. Cybersecurity.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
(d) the outcome of research efforts and future technology developments, including alternate or more fuel efficient vehicles for our fleet, such as hybrid or electric vehicles, the availability and prices of which has have been and may in the future be impacted by the rescission of electric vehicle tax credits, tariffs imposed on the import of vehicles to the United States, and other disruptions to the global shortage in supply of vehicles generally;
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Recent rules by the Federal Trade Commission or state regulations, which seek to eliminate almost all prohibit non-competition agreements with employees, or similar regulations, if found to be enforceable and implemented, employees may also impact retention of our ability to retain key employees by reducing barriers to individuals with such agreements leaving to work for our competitors.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Our Until the sale of our United Kingdom operations on December 1, 2025, which in 2025 accounted for approximately 3% of our revenues, our reported financial position and results of operations are were exposed to the effects (both positive and negative) that fluctuating exchange rates have had on the process of translating the financial statements of our United Kingdom operations, which are were denominated in the British pound, into the U.S. dollar.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
The However, the actual cost of labor and materials, however, as well as the level of labor productivity achieved, may vary from the costs we originally estimated, our original estimates, something which we have experienced and may continue to experience due to inflationary pressures, supply chain challenges, labor market tightness, and elevated interest rates.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Unsettled regulations and case law regarding the ownership of intellectual property generated or used by AI could also expose us to claims of copyright or license infringement or other liability resulting from our use of such tools.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
In some instances, we guarantee completion of a project by a specific date or price, cost savings, achievement of certain performance standards, or performance of our services at for a certain standard of quality. maximum price.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Although we have adopted a range of insurance, risk management, and risk avoidance programs designed to reduce potential liabilities, a catastrophic event at one of our project sites or a completed project, resulting from the services we have performed, could result in significant professional or product liability and professional, product, and/or personal injury liability, as well as warranty or other claims against us, as well as us and reputational harm.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Bribery Act of 2010, Our failure to comply with anti-bribery statutes, such as the Foreign Corrupt Practices Act, or sanction regulations, could result in fines, criminal penalties, and other sanctions that could have an adverse effect on our business.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Volatility within these markets, including the impact of geopolitical instability (such as disruption of shipping lanes), lanes or armed conflict or instability in oil-producing nations, including Iran and Venezuela), could negatively impact our financial position, results of operations, and cash flows.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Although the Federal Reserve Board began to decrease lowered the federal funds rate in 2024 after increases in 2022 and much of 2023, 2025, the pace and extent of additional decreases are uncertain.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
There can be no assurance that our Our estimates and assumptions will could prove to be accurate inaccurate predictions of the future.
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RewordedRisk Factors
Significant reductions in spending aimed at reducing federal, state, or local budget deficits, the absence of a bipartisan agreement on the federal government's budget or raising the debt ceiling (and any disruption caused by a federal government shutdown as a result thereof), personnel reductions, elimination of government agencies or programs, the closure of government facilities and offices, the freezing or sequestration by the executive branch of congressionally-appropriated funds, or other changes in budget priorities could result in the deferral, delay, disruption, or cancellation of projects or contracts that we might otherwise have sought to perform.
Read it in 10-K 2026-02-26 at sec.gov ↗
Quiet changesRisk Factors
Fluctuating foreign currency exchange rates could impact our financial results.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
On December 1, 2025, we sold our United Kingdom operations, the results of which are reported within our United Kingdom building services segment through the date of sale.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
On February 3, 2025, we completed the acquisition of Miller Electric Company (“Miller Electric”), a leading electrical contractor, for total cash consideration of approximately $876.8 million. In addition to Miller Electric, during 2025, we acquired nine companies for upfront consideration of $182.1 million. During 2024, we acquired seven companies for upfront consideration of $231.1 million. For further discussion regarding our acquisitions, refer to Note 4 - Acquisitions and Dispositions of Businesses of the notes to consolidated financial statements included in Item 8. Financial Statements and Supplementary Data.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
increases were partially offset by revenue declines from: (a) the high-tech manufacturing market sector, largely as we completed certain semiconductor manufacturing construction projects, and (b) the commercial market sector, as a result of: (i) the completion or substantial completion of several tenant fit-out or office projects, and (ii) fewer active warehousing and distribution projects for some of our e-commerce customers during the year.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
The 40 basis point increase in our SG&A margin for the year ended December 31, 2025 was primarily due to: (a) improved gross profit and gross profit margin, which resulted in the above-referenced increase in incentive compensation expense across certain of our operating subsidiaries, and (b) the impact of the transaction related costs referenced above.
Read it in 10-K 2026-02-26 at sec.gov ↗
RemovedMD&A
During 2024, we acquired seven companies for upfront consideration of $231.1 million, inclusive of customary working capital adjustments. These acquisitions are comprised of: (a) an electrical contractor in the Southeast region of the United States, that has been included in our United States electrical construction and facilities services segment, (b) two companies that have been included within our United States mechanical construction and facilities services segment, including: (i) a leading plumbing services provider in the Southeast region of the United States and (ii) a full service provider of mechanical construction and maintenance services in Central Texas, (c) three companies that have been included in our United States building services segment, including: (i) a provider of building automation and controls solutions in the Northeast region of the United States, (ii) a mechanical services company in the Western region of the United States, and (iii) a mechanical services company in the Eastern region of the United States, and (d) an instrumentation and electrical contractor, that has been included in our United States industrial services segment, which provides electrical, automation, digital integration, and fabrication services to various energy sector and process equipment customers.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
During 2023, we acquired eight companies for total consideration of $99.6 million. Such acquisitions include: (a) a national energy efficiency specialty services firm, the results of operations of which have been included in our United States building services segment, and (b) seven companies, the results of operations of which were de minimis, consisting of: (i) three companies that have been included within our United States mechanical construction and facilities services segment, one of which provides mechanical and pipe fabrication services in the Midwestern region of the United States, and two of which add capabilities to our national fire protection services, and (ii) four mechanical services companies in the Western and Midwestern regions of the United States that have been included within our United States building services segment and enhance our presence in geographies where we have existing operations.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
During 2022, we acquired six companies for total consideration of $100.8 million. Such acquisitions include: (a) a company that provides electrical construction services in the Greater Boston area, the results of operations of which have been included in our United States electrical construction and facilities services segment, and (b) five companies that enhance our presence in geographies where we have existing operations, the results of operations of which were de minimis, consisting of: (i) two companies that provide fire protection services in the Northeastern and Southern regions of the United States, respectively, and that have been included within our United States mechanical construction and facilities services segment, (ii) two companies that specialize in either building automation and controls or mechanical services in the Southwestern and Southern regions of the United States, respectively, and that have been included within our United States building services segment, and (iii) a company that provides electrical construction services in the Midwestern region of the United States and that has been included within our United States electrical construction and facilities services segment.
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RemovedMD&A
There were no significant amounts of revenue recognized during the year ended December 31, 2022 related to performance obligations satisfied in prior periods.
Read it in 10-K 2025-02-26 at sec.gov ↗
RewordedMD&A
United States electrical construction and facilities services $ 611,952 12.1% $ 447,186 13.4% $ 230,640 8.3% United States mechanical construction and facilities services 905,325 12.8% 799,613 12.5% 530,644 10.5% United States building services 187,192 6.0% 176,720 5.7% 182,995 5.9% United States industrial services 24,998 2.0% 44,213 3.5% 35,375 3.0% Total United States operations 1,729,467 10.5% 1,467,732 10.4% 979,654 8.1% United Kingdom building services 20,969 4.4% 21,485 5.0% 25,681 5.9% Corporate administration (181,894) — (144,354) — (127,229) — Impairment loss Gain on long-lived assets — — (2,350) sale of United Kingdom operations 144,876 — Consolidated operating income 1,713,418 10.1% 1,344,863 9.2% 875,756 7.0% Other items:
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
(i) (a) HVAC project execution stemming from the increased availability of materials and equipment when compared to the prior year, which experienced greater supply chain disruptions and delays, and (ii) retrofit work, as demand for system upgrades and replacements, these services remained strong, partially as our customers continue to seek ways to improve the energy efficiency or indoor air quality of their facilities, (b) service repair and maintenance volumes, given growth in our service contract base, and (c) building automation and controls projects, as we continue to expand our service offerings in this area.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The increase Excluding the impact of acquisitions, the year-over-year increases in gross profit and the expansion in gross profit margin were driven by each both of our domestic reportable segments United States construction segments, as well as our United States building services segment, in each case due to an improved revenue mix, mix and excellent project execution, and/or favorable pricing. execution.
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RewordedMD&A
In addition, operating income and operating margin The results of this segment for the year ended December 31, 2024 were negatively impacted by included an $11.0 million reserve recorded during the first quarter for a specific customer bankruptcy within this segment’s its commercial site-based services division. division, which negatively impacted the segment’s operating margin by 30 basis points in such prior year period.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
While the majority of the increase in our net income and diluted earnings per share was a result of the increased operating income referenced above, these amounts diluted earnings per share for the year ended December 31, 2025 additionally benefited from greater interest income a reduced weighted average share count given the impact of common stock repurchases made by us throughout 2024 and a reduction in interest expense in 2024. 2025.
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RewordedMD&A
As described in more detail below, these increases in profitability were predominantly a result In addition to the impact of improved greater revenues, the operating performance within our United States construction segments, due to results of this segment for 2025 benefited from a more favorable mix of work and better project execution, including enhanced productivity, due in part to investments in virtual design and construction, prefabrication, and automation.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
Excluding incremental acquisition contribution of $31.0 million, this segment’s revenues decreased by $36.3 million as Offsetting the strength of its the mechanical services division was more than offset by were revenue declines within its this segment’s commercial site-based services and government site-based services divisions due to the loss of certain facilities maintenance contracts that were not renewed pursuant to rebid. upon rebid in a prior period.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The $469.1 million increase in Excluding the impact of such gain, operating income, and corresponding 220 basis point expansion in operating margin, were income increased by $223.7 million, predominantly as a result of improved operating performance within greater contribution from our United States construction segments, as described in further detail below.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
Operating margin income of this our United States electrical construction and facilities services segment for the year ended December 31, 2024 2025 was 12.5%, a 200 basis point improvement over its $612.0 million compared to operating margin income for the year ended December 31, 2023 2024 of 10.5%. $447.2 million.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
Operating Our United States mechanical construction and facilities services segment’s operating income for the year ended December 31, 2024 2025 was $1,344.9 $905.3 million, an increase or 12.8% of $469.1 million revenues, compared to operating income of $875.8 million $799.6 million, or 12.5% of revenues, for the year ended December 31, 2023. 2024.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
United States electrical construction and facilities services $ 4,963,855 38% $ 3,068,396 31% $ 2,387,844 27% United States mechanical construction and facilities services 6,929,300 52% 5,463,096 54% 4,940,519 56% United States building services 1,188,537 9% 1,246,642 12% 1,264,818 14% United States industrial services 171,972 1% 138,599 1% 113,291 1% Total United States operations 13,253,664 100% 9,916,733 98% 8,706,472 98% United Kingdom building services — —% 185,466 2% 140,949 2% Total operations $ 13,253,664 100% $ 10,102,199 100% $ 8,847,421 100%
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
Partially offsetting these increases was a reduction in revenues within remaining performance obligations from the commercial high-tech manufacturing market sector, largely as a result of primarily due to the completion of various warehouse and distribution projects, that were active in 2023. certain semiconductor manufacturing construction projects.
Read it in 10-K 2026-02-26 at sec.gov ↗
