NOTE 9 – COMMITMENTS

Leases

The Company’s leases are primarily operating leases that cover office space, expiring on various dates through December 2031, and certain equipment used by the Company in the performance of its construction services contracts. Some of these equipment leases may be embedded in broader agreements with subcontractors or construction equipment suppliers. The Company has no material finance leases. None of the operating leases includes significant amounts for incentives, rent holidays or price escalations.

As of January 31, 2026 and 2025, right-of-use assets were $6.3 and $5.3 million, respectively. Operating lease expense amounts are recorded on a straight-line basis over the expected lease terms. Operating lease expense amounts for Fiscal 2026, Fiscal 2025 and Fiscal 2024 were $4.3 million, $3.8 million and $1.9 million, respectively.

The following is a schedule of future minimum lease payments for the operating leases that were recognized in the consolidated balance sheet as of January 31, 2026:

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The following table presents summary information for the Company’s lease terms and discount rates for its operating leases as of January 31, 2026 and 2025:

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The Company also uses equipment and occupies other facilities under short-term rental agreements. Rent expense amounts incurred under short-term rentals were $14.9 million, $17.0 million and $9.5 million for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Most of these amounts relate to the rental of construction equipment and temporary facilities and, as such, are included in cost of revenues in the accompanying consolidated statements of earnings.

Performance Bonds and Guarantees

In the normal course of business and for certain major projects, the Company may be required to obtain surety or performance bonding, to cause the issuance of letters of credit, or to provide parent company guarantees (or some combination thereof) in order to provide performance assurances to clients on behalf of its contractor subsidiaries. As these subsidiaries are wholly owned, any actual liability is ordinarily reflected in the financial statement account balances determined pursuant to the Company’s accounting for contracts with customers. When sufficient information about claims on guaranteed or bonded projects become available and monetary damages or other costs or losses would be determined to be probable, the Company would record such losses.

As of January 31, 2026, the estimated amount of the Company’s unsatisfied bonded performance obligations covering all subsidiaries was approximately $0.5 billion. As of January 31, 2026, the outstanding amount of bonds covering other risks, including warranty obligations and contract payment retentions related to completed activities, was $44.7 million.

Employee Benefit Plans

The Company maintains 401(k) savings plans pursuant to which the Company makes matching and discretionary contributions for the eligible and participating employees. The Company’s expense amounts related to these defined contribution plans were approximately $3.9 million, $3.4 million and $2.9 million for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The Company also maintains nonqualified plans whereunder the payments of certain amounts of incentive compensation earned by key employees are deferred for periods of four to seven years; payments are conditioned on continuous employment. The Company also maintains a nonqualified plan whereunder key employees may elect to defer portions of their compensation for periods ranging from one year to retirement.