| SEGMENT AND GEOGRAPHICAL INFORMATION |
9. SEGMENT AND GEOGRAPHICAL INFORMATION Segment Information The Company’s two segments are Energy, and Engineering and Consulting, and the Company’s chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format. In accordance with ASU 2023-07, the Company’s chief operating decision maker (“CODM”) evaluates the performance of each segment based upon the information provided below. There were no intersegment sales during the three months ended July 3, 2026 and July 4, 2025. In addition, enterprise-wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services. | | | | | | | | | | | | | | | | | | | | Engineering | | Unallocated | | | | | Consolidated | | | Energy | | & Consulting | | Corporate | | Intersegment | | Total (1) | | | (in thousands) | Fiscal Three Months Ended July 3, 2026 | | | | | | | | | | | | | | | | Contract revenue | | $ | 202,589 | | $ | 28,439 | | $ | - | | $ | - | | $ | 231,028 | Direct subcontractor services and other direct costs | | | 111,411 | | | 2,375 | | | - | | | - | | | 113,786 | Direct salaries and wages | | | 18,926 | | | 10,862 | | | - | | | - | | | 29,788 | Gross profit | | | 72,252 | | | 15,202 | | | - | | | - | | | 87,454 | Other indirect costs | | | 44,656 | | | 11,715 | | | 4,378 | | | - | | | 60,749 | EBITDA (2) | | | 27,652 | | | 3,486 | | | (3,994) | | | - | | | 27,144 | Interest expense, net | | | - | | | - | | | 1,086 | | | - | | | 1,086 | Depreciation and amortization | | | 6,475 | | | 496 | | | - | | | - | | | 6,971 | Segment profit (loss) before income tax expense | | | 21,177 | | | 2,990 | | | (5,080) | | | - | | | 19,087 | Income tax expense (benefit) | | | (5,808) | | | (967) | | | 1,517 | | | - | | | (5,258) | Net income (loss) | | | 26,985 | | | 3,957 | | | (6,597) | | | - | | | 24,345 | Segment assets (3) | | | 504,428 | | | 45,005 | | | 85,442 | | | - | | | 634,875 | Fiscal Six Months Ended July 3, 2026 | | | | | | | | | | | | | | | | Contract revenue | | $ | 330,557 | | $ | 55,585 | | $ | - | | $ | - | | $ | 386,142 | Direct subcontractor services and other direct costs | | | 172,399 | | | 4,069 | | | - | | | - | | | 176,468 | Direct salaries and wages | | | 37,023 | | | 22,041 | | | - | | | - | | | 59,064 | Gross profit | | | 121,135 | | | 29,475 | | | - | | | - | | | 150,610 | Other indirect costs | | | 81,203 | | | 22,308 | | | 7,656 | | | - | | | 111,167 | EBITDA (2) | | | 40,233 | | | 7,164 | | | (6,720) | | | - | | | 40,677 | Interest expense, net | | | - | | | - | | | 1,921 | | | - | | | 1,921 | Depreciation and amortization | | | 11,379 | | | 1,038 | | | - | | | - | | | 12,417 | Segment profit (loss) before income tax expense | | | 28,854 | | | 6,126 | | | (8,641) | | | - | | | 26,339 | Income tax expense (benefit) | | | (7,161) | | | (1,520) | | | 2,145 | | | - | | | (6,536) | Net income (loss) | | | 36,015 | | | 7,646 | | | (10,786) | | | - | | | 32,875 | Segment assets (3) | | | 504,428 | | | 45,005 | | | 85,442 | | | - | | | 634,875 |
| (1) | Amounts may not add to the totals due to rounding. |
| (2) | “EBITDA” is defined as earnings before interest, taxes, depreciation and amortization. |
| (3) | Segment assets are presented net of intercompany receivables. |
| | | | | | | | | | | | | | | | | | | | Engineering | | Unallocated | | | | | Consolidated | | | Energy | | & Consulting | | Corporate | | Intersegment | | Total (1) | | | (in thousands) | Fiscal Three Months Ended July 4, 2025 | | | | | | | | | | | | | | | | Contract revenue | | $ | 146,749 | | $ | 26,724 | | $ | - | | $ | - | | $ | 173,473 | Direct subcontractor services and other direct costs | | | 76,794 | | | 1,711 | | | - | | | - | | | 78,505 | Direct salaries and wages | | | 16,176 | | | 10,467 | | | - | | | - | | | 26,643 | Gross profit | | | 53,779 | | | 14,546 | | | - | | | - | | | 68,325 | Other indirect costs | | | 35,878 | | | 9,353 | | | 5,774 | | | - | | | 51,005 | EBITDA (2) | | | 17,167 | | | 5,192 | | | (4,488) | | | - | | | 17,871 | Interest expense, net | | | - | | | - | | | 2,186 | | | - | | | 2,186 | Depreciation and amortization | | | 4,940 | | | 564 | | | - | | | - | | | 5,504 | Segment profit (loss) before income tax expense | | | 12,228 | | | 4,628 | | | (6,675) | | | - | | | 10,181 | Income tax expense (benefit) | | | (5,861) | | | (2,759) | | | 3,365 | | | - | | | (5,255) | Net income (loss) | | | 18,088 | | | 7,387 | | | (10,039) | | | - | | | 15,436 | Segment assets (3) | | | 362,141 | | | 41,207 | | | 81,503 | | | - | | | 484,851 | Fiscal Six Months Ended July 4, 2025 | | | | | | | | | | | | | | | | Contract revenue | | $ | 272,997 | | $ | 52,862 | | $ | - | | $ | - | | $ | 325,859 | Direct subcontractor services and other direct costs | | | 142,874 | | | 2,679 | | | - | | | - | | | 145,553 | Direct salaries and wages | | | 32,717 | | | 21,603 | | | - | | | - | | | 54,320 | Gross profit | | | 97,406 | | | 28,580 | | | - | | | - | | | 125,986 | Other indirect costs | | | 70,426 | | | 19,629 | | | 7,135 | | | - | | | 97,190 | EBITDA (2) | | | 26,249 | | | 8,947 | | | (5,890) | | | - | | | 29,306 | Interest expense, net | | | - | | | - | | | 3,988 | | | - | | | 3,988 | Depreciation and amortization | | | 8,895 | | | 1,049 | | | - | | | - | | | 9,944 | Segment profit (loss) before income tax expense | | | 17,355 | | | 7,898 | | | (9,879) | | | - | | | 15,374 | Income tax expense (benefit) | | | (5,361) | | | (2,440) | | | 3,052 | | | - | | | (4,749) | Net income (loss) | | | 22,715 | | | 10,338 | | | (12,930) | | | - | | | 20,123 | Segment assets (3) | | | 362,141 | | | 41,207 | | | 81,503 | | | - | | | 484,851 |
| (1) | Amounts may not add to the totals due to rounding. |
| (2) | “EBITDA” is defined as earnings before interest, taxes, depreciation and amortization. |
| (3) | Segment assets are presented net of intercompany receivables. |
The following tables provide information about disaggregated revenue by contract type, client type and geographical region: | | | | | | | | | | | | Three months ended July 3, 2026 | | | Energy | | Engineering and
Consulting | | Total | | | (in thousands) | Contract Type | | | | | | | | | | Time-and-materials | | $ | 14,541 | | $ | 18,647 | | $ | 33,188 | Unit-based | | | 61,714 | | | 8,232 | | | 69,946 | Fixed price | | | 126,334 | | | 1,560 | | | 127,894 | Total (1) | | $ | 202,589 | | $ | 28,439 | | $ | 231,028 | | | | | | | | | | | Client Type | | | | | | | | | | Commercial | | $ | 58,849 | | $ | 1,971 | | $ | 60,820 | Government | | | 69,834 | | | 26,397 | | | 96,231 | Utilities (2) | | | 73,906 | | | 71 | | | 73,977 | Total (1) | | $ | 202,589 | | $ | 28,439 | | $ | 231,028 | | | | | | | | | | | Geography (3) | | | | | | | | | | Domestic | | $ | 202,589 | | $ | 28,439 | | $ | 231,028 | | | | | | | | | | | | | Six months ended July 3, 2026 | | | Energy | | Engineering and
Consulting | | Total | | | (in thousands) | Contract Type | | | | | | | | | | Time-and-materials | | $ | 27,241 | | $ | 36,847 | | $ | 64,088 | Unit-based | | | 111,331 | | | 15,285 | | | 126,616 | Fixed price | | | 191,985 | | | 3,453 | | | 195,438 | Total (1) | | $ | 330,557 | | $ | 55,585 | | $ | 386,142 | | | | | | | | | | | Client Type | | | | | | | | | | Commercial | | $ | 78,238 | | $ | 3,817 | | $ | 82,055 | Government | | | 113,680 | | | 51,587 | | | 165,267 | Utilities (2) | | | 138,639 | | | 181 | | | 138,820 | Total (1) | | $ | 330,557 | | $ | 55,585 | | $ | 386,142 | | | | | | | | | | | Geography (3) | | | | | | | | | | Domestic | | $ | 330,557 | | $ | 55,585 | | $ | 386,142 |
| | | | | | | | | | | | Three months ended July 4, 2025 | | | Energy | | Engineering and
Consulting | | Total | | | (in thousands) | Contract Type | | | | | | | | | | Time-and-materials | | $ | 11,733 | | $ | 18,899 | | $ | 30,632 | Unit-based | | | 58,250 | | | 6,487 | | | 64,737 | Fixed price | | | 76,766 | | | 1,338 | | | 78,104 | Total (1) | | $ | 146,749 | | $ | 26,724 | | $ | 173,473 | | | | | | | | | | | Client Type | | | | | | | | | | Commercial | | $ | 18,093 | | $ | 1,755 | | $ | 19,848 | Government | | | 55,839 | | | 24,924 | | | 80,763 | Utilities (2) | | | 72,817 | | | 45 | | | 72,862 | Total (1) | | $ | 146,749 | | $ | 26,724 | | $ | 173,473 | | | | | | | | | | | Geography (3) | | | | | | | | | | Domestic | | $ | 146,749 | | $ | 26,724 | | $ | 173,473 | | | | | | | | | | | | | Six months ended July 4, 2025 | | | Energy | | Engineering and
Consulting | | Total | | | (in thousands) | Contract Type | | | | | | | | | | Time-and-materials | | $ | 23,335 | | $ | 36,959 | | $ | 60,294 | Unit-based | | | 105,957 | | | 12,742 | | | 118,699 | Fixed price | | | 143,705 | | | 3,161 | | | 146,866 | Total (1) | | $ | 272,997 | | $ | 52,862 | | $ | 325,859 | | | | | | | | | | | Client Type | | | | | | | | | | Commercial | | $ | 31,608 | | $ | 3,566 | | $ | 35,174 | Government | | | 104,163 | | | 49,196 | | | 153,359 | Utilities (2) | | | 137,226 | | | 100 | | | 137,326 | Total (1) | | $ | 272,997 | | $ | 52,862 | | $ | 325,859 | | | | | | | | | | | Geography (3) | | | | | | | | | | Domestic | | $ | 272,997 | | $ | 52,862 | | $ | 325,859 | | | | | | | | | | |
| (1) | Amounts may not add to the totals due to rounding. |
| (2) | Includes the portion of revenue related to small business programs paid by the end user/customer. |
| (3) | Revenue from the Company’s foreign operations was not material for the three and six months ended July 3, 2026 and July 4, 2025. |
Geographical Information Substantially all of the Company’s consolidated revenue was derived from its operations in the U.S. The Company operates through a network of offices spread across 26 U.S. states, the District of Columbia, the Commonwealth of Puerto Rico, and Canada. Revenues from the Company’s Puerto Rican and Canadian operations were not material for the three and six months ended July 3, 2026, nor for the three and six months ended July 4, 2025. Customer Concentration For the three and six months ended July 3, 2026, the Company’s top 10 customers accounted for 51.7%, and 47.1%, respectively, of the Company’s consolidated contract revenue. For the three and six months ended July 4, 2025, the Company’s top 10 customers accounted for 52.5%, and 52.6%, respectively, of the Company’s consolidated contract revenue. For the three and six months ended July 3, 2026, the Company had no individual customers that accounted for more than 10% of its consolidated contract revenue. For the three and six months ended July 4, 2025, the Company had individual customers that accounted for more than 10% of its consolidated contract revenue. For the three months ended July 4, 2025, the Company derived 26.3% of its consolidated contract revenue from two customers, Southern California Edison and Clark County School District. For the six months ended July 4, 2025, the Company derived 25.3% of its consolidated contract revenue from two customers, Southern California Edison and Clark County School District. On a segment basis, the Company had individual customers that accounted for more than 10% of its segment contract revenues. For the three months ended July 3, 2026, the Company derived 11.2% of its Energy segment revenues from one customer, Southern California Edison, and no single customer accounted for 10% or more of the Company’s Engineering and Consulting segment revenues. For the six months ended July 3, 2026, the Company derived 11.3% of its Energy segment revenues from one customer, Southern California Edison, and no single customer accounted for 10% or more of the Company’s Engineering and Consulting segment revenues. For the three months ended July 4, 2025, the Company derived 31.1% of its Energy segment revenues from two customers, Southern California Edison and Clark County School District, and no single customer accounted for 10% or more of the Company’s Engineering and Consulting segment revenues. For the six months ended July 4, 2025, the Company derived 30.2% of its Energy segment revenues from two customers, Southern California Edison and Clark County School District, and no single customer accounted for 10% or more of the Company’s Engineering and Consulting segment revenues. On a geographical basis, through the six months ended July 3, 2026, the Company’s largest clients are based in California and New York. For the three and six months ended July 3, 2026, services provided to clients in California accounted for 43.7% and 44.6%, respectively, of the Company’s consolidated contract revenue, and services provided to clients in New York accounted for 15.8% and 17.3%, respectively, of the Company’s consolidated contract revenue. For the three and six months ended July 4, 2025, services provided to clients in California accounted for 44.6% and 42.4%, respectively, of the Company’s consolidated contract revenue, and services provided to clients in New York accounted for 18.4% and 20.0%, respectively, of the Company’s consolidated contract revenue.
|