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Goodwill and Identifiable Intangible Assets, Net

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets, Net

6. Goodwill and Identifiable Intangible Assets, Net

Goodwill

The changes in the carrying amount of goodwill are as follows (in thousands):


		Mechanical Segment			Electrical Segment			Total
Balance at December 31, 2023		$	393,276		$	273,558		$	666,834
Acquisitions and purchase price adjustments (See Note 5)			208,236			200			208,436
Balance at December 31, 2024			601,512			273,758			875,270
Acquisitions and purchase price adjustments (See Note 5)			52,897			97,348			150,245
Balance at December 31, 2025		$	654,409		$	371,106		$	1,025,515

The aggregate goodwill balance as of December 31, 2025 and 2024 includes $116.6 million of accumulated impairment charges, all of which relate to the mechanical segment.

During our annual impairment testing on October 1, 2025, we performed a quantitative assessment where the fair value of each reporting unit was estimated using a discounted cash flow model combined with a market valuation approach. We assigned a weighting of 50% to the discounted cash flow analysis and 50% to the public company approach for the year ended December 31, 2025. Based on this assessment, we concluded that the fair value of each of the reporting units was greater than its carrying value. A 10% decline in the estimated fair value of each reporting unit due to a change in assumptions would not have resulted in us recording an impairment in 2025.

For the years ended December 31, 2025, 2024 and 2023, no impairment of our goodwill or other intangible assets was recorded.

There are significant inherent uncertainties and management judgment involved in estimating the fair value of each reporting unit. While we believe we have made reasonable estimates and assumptions to estimate the fair value of our reporting units, it is possible that a material change could occur. If actual results are not consistent with our current estimates and assumptions, or the current economic outlook worsens, goodwill impairment charges may be recorded in future periods.

Identifiable Intangible Assets, Net

Identifiable intangible assets consist of the following (dollars in thousands):


		Weighted-Average		December 31, 2025						December 31, 2024
		Remaining Useful Lives		Gross Book			Accumulated			Gross Book			Accumulated
		in Years		Value			Amortization			Value			Amortization
Customer Relationships		6.8		$	636,734		$	(294,683)		$	550,518		$	(241,263)
Backlog		1.4			24,148			(10,300)			54,918			(40,328)
Trade Names		17.8			177,746			(48,477)			151,561			(40,989)
Total				$	838,628		$	(353,460)		$	756,997		$	(322,580)

Identifiable intangible assets attributable to businesses acquired in 2025 have been preliminarily valued at $130.3 million, consisting of customer relationships, trade names and backlog. Identifiable intangible assets attributable to businesses acquired in 2024 have been valued at $251.3 million, consisting of customer relationships, trade names and backlog. The weighted-average initial amortization period for the identifiable intangible assets attributable to businesses acquired in 2025 and 2024 was 10.5 years and 9.1 years, respectively.

The amounts attributable to customer relationships and trade names are amortized to “Selling, General and Administrative Expenses” based upon the estimated consumption of their economic benefits, or under a shorter period of time using the straight-line method if the pattern of economic benefit cannot be reliably estimated. Our intangible assets related to customer relationships and trade names are amortized over periods from one to twenty-five years. The amounts attributable to backlog are amortized to “Cost of Services” on a proportionate method over the remaining backlog period. Amortization expense for the years ended December 31, 2025, 2024 and 2023 was $79.6 million, $97.3 million and $43.4 million respectively.

As of December 31, 2025, future amortization expense of identifiable intangible assets was as follows (in thousands):


Year ending December 31—
2026	$	76,564
2027		65,826
2028		63,119
2029		56,852
2030		44,317
Thereafter		178,490
Total	$	485,168