| SEGMENT REPORTING |
NOTE 16 – SEGMENT REPORTING Segments represent components of an enterprise for which discrete financial information is available that is evaluated regularly by the Company’s chief executive officer, who is the Company’s chief operating decision maker (the “CODM”), in determining how to allocate resources and in assessing performance. The Company’s reportable segments recognize revenues and incur expenses and are organized as separate business units, each with distinct management teams, customers, workforces, and service offerings. The Company’s reportable segments may include more than one operating segment. Income before income taxes is the measure of segment profit or loss used by the CODM. The CODM reviews segment income before income taxes on a monthly basis, comparing actual results to the annual operating plan and to prior periods. The CODM uses the resulting analysis in deciding the level of capital resources to allocate to each segment, in evaluating the performance of segment management, and in determining incentive compensation. In addition to income before income taxes, the CODM uses gross profit to evaluate project execution and uses income from operations to evaluate the management of selling, general and administrative expenses. Amounts for these measures, and reconciliations of each to the Company’s consolidated results, are presented in the tables below. Intersegment revenues and the related cost of revenues are netted against the corresponding amounts of the segment receiving the intersegment services. For the three and six months ended July 31, 2026, intersegment revenues were $2.4 million and $2.8 million, respectively, and primarily related to services provided by the Teledata segment to the Industrial segment. For the six months ended July 31, 2025, intersegment revenues were $1.9 million and primarily related to services provided by the Industrial segment to the Power segment. The amount of intersegment revenues for the three months ended July 31, 2025 was insignificant. Pricing for intersegment services is established based on the amounts negotiated between the respective parties. Summarized below are certain operating results and financial position data of the Company’s reportable segments for the three and six months ended July 31, 2026 and 2025. Selling, general and administrative expenses include compensation and benefits, professional fees, information technology, insurance premiums, rent, business development, and amortization and depreciation expenses incurred directly by each segment. Other income, net, primarily includes earnings on invested funds. Corporate net expenses consist primarily of corporate overhead costs, partially offset by certain earnings on cash and cash equivalents. Corporate current assets primarily consist of cash, cash equivalents, and income-tax related assets. | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | July 31, 2026 | | Power | | Industrial | | Teledata | | Totals | Revenues | | $ | 301,208 | | $ | 76,172 | | $ | 6,596 | | $ | 383,976 | Cost of revenues | | | 233,612 | | | 70,644 | | | 5,502 | | | 309,758 | Gross profit | | | 67,596 | | | 5,528 | | | 1,094 | | | 74,218 | Selling, general and administrative expenses | | | 10,767 | | | 1,634 | | | 1,329 | | | 13,730 | Income (loss) from operations | | | 56,829 | | | 3,894 | | | (235) | | | 60,488 | Other income, net | | | 9,513 | | | 154 | | | 15 | | | 9,682 | Segment income (loss) before income taxes | | $ | 66,342 | | $ | 4,048 | | $ | (220) | | | 70,170 | Corporate | | | | | | | | | | | | (3,282) | Consolidated income before income taxes | | | | | | | | | | | | 66,888 | Provision for income taxes | | | | | | | | | | | | 13,586 | Net income | | | | | | | | | | | $ | 53,302 |
| | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | Segment | | | | | Consolidated | July 31, 2026 | | Power | | Industrial | | Teledata | | Totals | | Corporate | | Totals | Amortization of intangibles | | $ | — | | $ | 75 | | $ | — | | $ | 75 | | $ | — | | $ | 75 | Depreciation | | | 347 | | | 199 | | | 96 | | | 642 | | | 3 | | | 645 | Property, plant and equipment additions | | | 353 | | | 4,849 | | | 53 | | | 5,255 | | | — | | | 5,255 | | | | | | | | | | | | | | | | | | | | Current assets | | $ | 1,022,970 | | $ | 98,039 | | $ | 8,263 | | $ | 1,129,272 | | $ | 189,198 | | $ | 1,318,470 | Current liabilities | | | 802,317 | | | 68,415 | | | 5,551 | | | 876,283 | | | 1,827 | | | 878,110 | Goodwill | | | 18,476 | | | 9,467 | | | 2,727 | | | 30,670 | | | — | | | 30,670 | Total assets | | | 1,073,696 | | | 118,938 | | | 18,543 | | | 1,211,177 | | | 189,793 | | | 1,400,970 |
| | | | | | | | | | | | | Three Months Ended | | | | | | | | | | July 31, 2025 | | Power | | Industrial | | Teledata | | Totals | Revenues | | $ | 196,948 | | $ | 36,065 | | $ | 4,730 | | $ | 237,743 | Cost of revenues | | | 158,370 | | | 31,542 | | | 3,564 | | | 193,476 | Gross profit | | | 38,578 | | | 4,523 | | | 1,166 | | | 44,267 | Selling, general and administrative expenses | | | 7,744 | | | 1,838 | | | 913 | | | 10,495 | Income from operations | | | 30,834 | | | 2,685 | | | 253 | | | 33,772 | Other income, net | | | 4,422 | | | 1 | | | 11 | | | 4,434 | Segment income before income taxes | | $ | 35,256 | | $ | 2,686 | | $ | 264 | | | 38,206 | Corporate | | | | | | | | | | | | (2,570) | Consolidated income before income taxes | | | | | | | | | | | | 35,636 | Provision for income taxes | | | | | | | | | | | | 361 | Net income | | | | | | | | | | | $ | 35,275 |
| | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | Segment | | | | | Consolidated | July 31, 2025 | | Power | | Industrial | | Teledata | | Totals | | Corporate | | Totals | Amortization of intangibles | | $ | — | | $ | 98 | | $ | — | | $ | 98 | | $ | — | | $ | 98 | Depreciation | | | 223 | | | 163 | | | 96 | | | 482 | | | 9 | | | 491 | Property, plant and equipment additions | | | 914 | | | 753 | | | 18 | | | 1,685 | | | 9 | | | 1,694 | | | | | | | | | | | | | | | | | | | | Current assets | | $ | 656,368 | | $ | 52,060 | | $ | 4,769 | | $ | 713,197 | | $ | 115,587 | | $ | 828,784 | Current liabilities | | | 451,599 | | | 26,758 | | | 3,964 | | | 482,321 | | | 2,001 | | | 484,322 | Goodwill | | | 18,476 | | | 9,467 | | | 90 | | | 28,033 | | | — | | | 28,033 | Total assets | | | 690,653 | | | 68,338 | | | 7,353 | | | 766,344 | | | 116,360 | | | 882,704 |
| | | | | | | | | | | | | Six Months Ended | | | | | | | | | July 31, 2026 | | Power | | Industrial | | Teledata | | Totals | Revenues | | $ | 527,875 | | $ | 134,476 | | $ | 12,579 | | $ | 674,930 | Cost of revenues | | | 406,698 | | | 122,071 | | | 10,829 | | | 539,598 | Gross profit | | | 121,177 | | | 12,405 | | | 1,750 | | | 135,332 | Selling, general and administrative expenses | | | 19,996 | | | 3,597 | | | 2,491 | | | 26,084 | Income (loss) from operations | | | 101,181 | | | 8,808 | | | (741) | | | 109,248 | Other income, net | | | 17,365 | | | 180 | | | 12 | | | 17,557 | Segment income (loss) before income taxes | | $ | 118,546 | | $ | 8,988 | | $ | (729) | | | 126,805 | Corporate | | | | | | | | | | | | (6,148) | Consolidated income before income taxes | | | | | | | | | | | | 120,657 | Provision for income taxes | | | | | | | | | | | | 21,292 | Net income | | | | | | | | | | | $ | 99,365 |
| | | | | | | | | | | | | | | | | | | Six Months Ended | | | | | | | | | | | Segment | | | | | Consolidated | July 31, 2026 | | Power | | Industrial | | Teledata | | Totals | | Corporate | | Totals | Amortization of intangibles | | $ | — | | $ | 150 | | $ | — | | $ | 150 | | $ | — | | $ | 150 | Depreciation | | | 675 | | | 351 | | | 172 | | | 1,198 | | | 6 | | | 1,204 | Property, plant and equipment additions | | | 2,158 | | | 5,477 | | | 53 | | | 7,688 | | | — | | | 7,688 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Six Months Ended | | | | | | | | | July 31, 2025 | | Power | | Industrial | | Teledata | | Totals | Revenues | | $ | 357,304 | | $ | 65,249 | | $ | 8,850 | | $ | 431,403 | Cost of revenues | | | 285,756 | | | 57,575 | | | 6,942 | | | 350,273 | Gross profit | | | 71,548 | | | 7,674 | | | 1,908 | | | 81,130 | Selling, general and administrative expenses | | | 14,530 | | | 3,450 | | | 1,831 | | | 19,811 | Income from operations | | | 57,018 | | | 4,224 | | | 77 | | | 61,319 | Other income, net | | | 8,794 | | | 1 | | | 43 | | | 8,838 | Segment income before income taxes | | $ | 65,812 | | $ | 4,225 | | $ | 120 | | | 70,157 | Corporate | | | | | | | | | | | | (4,735) | Consolidated income before income taxes | | | | | | | | | | | | 65,422 | Provision for income taxes | | | | | | | | | | | | 7,597 | Net income | | | | | | | | | | | $ | 57,825 |
| | | | | | | | | | | | | | | | | | | Six Months Ended | | | | | | | | | | | Segment | | | | | Consolidated | July 31, 2025 | | Power | | Industrial | | Teledata | | Totals | | Corporate | | Totals | Amortization of intangibles | | $ | — | | $ | 196 | | $ | — | | $ | 196 | | $ | — | | $ | 196 | Depreciation | | | 383 | | | 323 | | | 188 | | | 894 | | | 12 | | | 906 | Property, plant and equipment additions | | | 1,129 | | | 765 | | | 106 | | | 2,000 | | | 89 | | | 2,089 | | | | | | | | | | | | | | | | | | | |
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