Financial Analysis

"BUSINESS COMBINATIONS The Company regularly evaluates potential acquisitions that strategically fit with the Companys existing portfolio or expand the Companys portfolio into a new and attractive business area. Acquisitions are accounted for as business combinations using the acquisition method of accounting. As such, the Company makes a preliminary allocation of the purchase price to the tangible assets and identifiable intangible assets acquired and liabilities assumed. In the months after closing, as the Company obtains additional information about the acquired assets and liabilities and learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Purchase price is allocated to acquired assets and liabilities assumed based upon their estimated fair values, with limited exceptions as permitted pursuant to GAAP, as determined based on estimates and assumptions deemed reasonable by the Company. The Company engages third-party valuation specialists to assist with preparation of critical assumptions and calculations of the fair value of acquired tangible and intangible assets in connection with significant acquisitions. The excess of the purchase price over the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Goodwill is attributable to the workforce of the acquired businesses, the complementary strategic fit and resulting synergies these businesses bring …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES The Company is involved in various litigation matters and is subject to claims from time to time from customers and various government entities. While it is not feasible to determine the outcome of any of these uncertainties, it is the opinion of management that their outcomes will not have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Environmental obligations The Company's operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs, and performance guarantees, and periodically reassesses these amounts. Management believes that the likelihood of incurring losses materially in excess of the amounts accrued is remote. The outstanding liability for these obligations of $12 and $13 was included in other noncurrent liabilities as of June 30, 2026 and December 31, 2025, respectively.

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EMPLOYEE BENEFIT PLANS Defined benefit pension plans The Company sponsors both funded and unfunded foreign defined benefit pension plans that cover a portion of the Company's employees, and the largest plans are closed to new participants and frozen for accrual of future service. The components of the net periodic pension cost for the defined benefit pension plans are as follows: Three Months Ended June 30, 2026 2025 Service cost $ 1 $ 1 Interest cost 16 16 Expected return on plan assets (16) (17) Amortization of actuarial losses 5 6 Net periodic pension cost $ 6 $ 6 Six Months Ended June 30, 2026 2025 Service cost $ 2 $ 2 Interest cost 32 32 Expected return on plan assets (33) (34) Amortization of actuarial losses 11 11 Net periodic pension cost $ 12 $ 11 Multiemployer pension plans Certain subsidiaries of the Company contribute amounts to multiemployer pension plans and other multiemployer benefit plans and trusts, which are recorded as a component of employee wages and salaries within cost of revenues on the condensed consolidated statements of operations. Contributions are generally based on fixed amounts per hour per employee for employees covered under these plans. Multiemployer plan contribution rates are determined annually and assessed on a pay-as-you-go basis based on union employee payrolls. Union payrolls cannot be determined for future periods because the number of union employees employed at a given time and the plans in which they participate vary depending upo …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"DEBT Debt obligations consist of the following: Maturity Date June 30, 2026 December 31, 2025 Term loan facility 2021 Term Loan May 14, 2033 $ 2,152 $ 2,157 Revolving Credit Facility May 14, 2031 280 Senior notes 4.125% Senior Notes July 15, 2029 337 337 4.750% Senior Notes October 15, 2029 277 277 5.750% Senior Notes June 1, 2034 500 Other obligations 5 5 Total debt obligations 3,551 2,776 Less: unamortized deferred financing costs (28) (17) Total debt, net of deferred financing costs 3,523 2,759 Less: short-term and current portion of long-term debt (306) (5) Long-term debt, less current portion $ 3,217 $ 2,754 Term loan facility As of June 30, 2026, the Company had $2,152 of principal outstanding under the incremental term loan (the ""2021 Term Loan"") with a maturity date of May 14, 2033. During the six months ended June 30, 2026, the Company made payments of $5 on the term loan. The interest rate applicable to the 2021 Term Loan is, at the Company's option, either (1) a base rate plus an applicable margin equal to 0.75% or (2) Term SOFR rate (adjusted for statutory reserves) plus an applicable margin equal to 1.75%. The interest rate applicable to borrowings under the $1,000 five-year senior secured revolving credit facility (the Revolving Credit Facility) is, at the Companys option, either (1) a base rate plus an applicable margin equal to 0.25%, or (2) a Term SOFR rate (adjusted for statutory reserves) plus an applicable margin equal to 1.25%. As of June 30, 2026 and …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables provide disclosure of disaggregated net revenues by segment for the three and six months ended June 30, 2026 and 2025. Disaggregated net revenues information is as follows: Three Months Ended June 30, 2026 Safety Services Specialty Services Consolidated Life Safety $ 1,482 $ $ 1,482 Infrastructure and Utility 299 299 Fabrication and Distribution 101 101 Specialty Contracting 373 373 Corporate and Eliminations (1) Net revenues $ 1,482 $ 773 $ 2,254 Three Months Ended June 30, 2025 Safety Services Specialty Services Consolidated Life Safety $ 1,362 $ $ 1,362 Infrastructure and Utility 256 256 Fabrication and Distribution 99 99 Specialty Contracting 274 274 Corporate and Eliminations (1) Net revenues $ 1,362 $ 629 $ 1,990 Six Months Ended June 30, 2026 Safety Services Specialty Services Consolidated Life Safety $ 2,897 $ $ 2,897 Infrastructure and Utility 517 517 Fabrication and Distribution 183 183 Specialty Contracting 642 642 Corporate and Eliminations (3) Net revenues $ 2,897 $ 1,342 $ 4,236 Six Months Ended June 30, 2025 Safety Services Specialty Services Consolidated Life Safety $ 2,629 $ $ 2,629 Infrastructure and Utility 441 441 Fabrication and Distribution 169 169 Specialty Contracting 472 472 Corporate and Eliminations (2) Net revenues $ 2,629 $ 1,082 $ 3,709 Three Months Ended June 30, 2026 Safety Services Specialty Services Corporate and Eliminations Consolidated United States $ 773 $ 773 $ (1) $ 1,545 France 177 177 Other 532 532 Net revenues $ …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS GAAP defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Companys market assumptions. As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: U …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"GOODWILL AND INTANGIBLES Goodwill The following table provides disclosure of goodwill by segment as of June 30, 2026 and December 31, 2025. The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2026 are as follows: Safety Services Specialty Services Total Goodwill Goodwill as of December 31, 2025 $ 2,927 $ 240 $ 3,167 Acquisitions 518 518 Foreign currency translation and other, net (1) (44) 2 (42) Goodwill as of June 30, 2026 $ 3,401 $ 242 $ 3,643 (1) Other includes immaterial measurement period adjustments recorded during the six months ended June 30, 2026 related to acquisitions for which the measurement period was open during the six months ended June 30, 2026 (see Note 3 ""Business Combinations""). Intangibles The Companys identifiable intangible assets are comprised of the following as of June 30, 2026 and December 31, 2025: June 30, 2026 Weighted Average Remaining Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangibles: Contractual backlog 0.3 $ 169 $ (168) $ 1 Customer relationships 8.2 2,114 (963) 1,151 Trade names and trademarks 10.1 856 (272) 584 Total $ 3,139 $ (1,403) $ 1,736 December 31, 2025 Weighted Average Remaining Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangibles: Contractual backlog 0.8 $ 169 $ (168) $ 1 Customer relationships 8.7 1,897 (869) 1,028 Trade names and trademarks 10.6 801 (246) …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Companys quarterly income tax provision is measured using an estimate of its consolidated annual effective tax rate, adjusted in the current period for discrete income tax items, within the periods presented. The Companys effective tax rate was 28.0% and 28.7% for the three months ended June 30, 2026 and 2025, respectively, and 25.2% and 27.1% for the six months ended June 30, 2026, and 2025, respectively. The decrease in the effective tax rate between the periods was primarily due to the increase in windfall tax benefit for vested shares in the current year. The difference between the effective tax rate and the statutory U.S. federal income tax rate of 21.0% for the three and six months ended June 30, 2026 and 2025 is due to the windfall tax benefit for vested shares partially offset by nondeductible permanent items, taxes on foreign earnings in jurisdictions that have higher tax rates, and state taxes. As of June 30, 2026, the Companys deferred tax assets included a valuation allowance of $105 primarily related to certain net operating loss, capital loss, and tax credit carryforwards of the Companys foreign subsidiaries. The factors used to assess the likelihood of realization were the past performance of the related entities, forecasts of future taxable income, future reversal of existing taxable temporary differences, and available tax planning strategies that could be implemented to realize the deferred tax assets. The ability or failure to achieve the f …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"RECENT ACCOUNTING PRONOUNCEMENTS See discussion below for information pertaining to the effects of recent accounting pronouncements as updated from the discussion in the Company's Form 10-K filed on February 25, 2026. In July 2025, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2025-05, Financial Instruments - Credit Losses (Topic 326): Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from revenue transactions accounted for under FASB Accounting Standards Codification (""ASC"") Topic 606. ASU 2025-05 is effective for the Company's annual and interim periods in fiscal years beginning after December 15, 2025, with early adoption permitted. The Company adopted this ASU on January 1, 2026, and it did not have a material impact on its consolidated financial statements. In December, 2025, the FASB issued ASU 2025-12, Codification Improvements which enhances the Codification to clarify accounting guidance, correct errors and make technical corrections. This ASU is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2026. Early adoption is permitted for all entities. The Company is currently evaluating the potential impact of adopting this ASU on its consolidated financial statements and disclosures but does not expect the impact to b …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RELATED-PARTY TRANSACTIONS The Company incurred advisory fees of $1 during both the three months ended June 30, 2026 and 2025, and $2 during both the six months ended June 30, 2026 and 2025, in each case payable to Mariposa Capital, LLC, an entity owned by a co-chair of the Companys Board of Directors. In addition, dividends for Series A Preferred Stock declared as of December 31, 2025 and December 31, 2024 were settled in 15,212,810 shares and 3,815,493 shares, respectively, issued during January 2026 and January 2025, respectively. The shares were issued to Mariposa Acquisition IV, LLC, a related entity that is controlled by a co-chair of the Company's Board of Directors. From time to time, the Company also enters into other immaterial related-party transactions. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

RESTRUCTURING During 2022, the Company announced its multi-year Chubb restructuring program designed to drive efficiencies and synergies and optimize operating margin. The Chubb restructuring program included expenses related to workforce reductions, lease termination costs, and other facility rationalization costs. As of the second quarter of 2025, the Chubb restructuring program ended and no additional expenses have since been incurred. The following table summarizes the Company's restructuring liabilities for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, 2026 2025 Balance at beginning of period $ 13 $ 15 Charges 4 Payments (6) (4) Currency translation adjustment 1 Balance at end of period $ 7 $ 16 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

NET REVENUES Contracts with customers The Company derives net revenues primarily from contracts with a duration of less than one week to five years (with the majority of contracts having short durations), which are subject to multiple pricing options, including fixed price, unit price, time and material, or cost plus a markup. Net revenues are primarily recognized by the Company over time utilizing the cost-to-cost measure of progress. Net revenues recognized at a point in time primarily relate to distribution contracts and short-term time and material contracts. The Company also enters into fixed-price service contracts related to monitoring, maintenance, and inspection of safety systems. The Company disaggregates its net revenues primarily by segment, service type, and country from which revenues are invoiced, as the nature, timing, and uncertainty of cash flows are relatively consistent within each of these categories. The following tables provide disclosure of disaggregated net revenues by segment for the three and six months ended June 30, 2026 and 2025. Disaggregated net revenues information is as follows: Three Months Ended June 30, 2026 Safety Services Specialty Services Consolidated Life Safety $ 1,482 $ $ 1,482 Infrastructure and Utility 299 299 Fabrication and Distribution 101 101 Specialty Contracting 373 373 Corporate and Eliminations (1) Net revenues $ 1,482 $ 773 $ 2,254 Three Months Ended June 30, 2025 Safety Services Specialty Services Consolidated Life Safet …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION The Company manages its operations under three operating segments which represent the Companys two reportable segments: Safety Services, comprised of the North American Life Safety and International Life Safety operating segments, and Specialty Services. This structure is generally comprised of various businesses related to contracted services, inspections, and monitoring of industrial and commercial facilities. The segments have separate management and have results that are regularly reviewed by the Chief Executive Officer and President, who acts as the Company's Chief Operating Decision Maker (CODM), for the purpose of allocating resources and evaluating performance, identifying them as separate reportable segments. The Safety Services segment focuses on fire and life safety solutions, electronic security systems, and elevators and escalators, including the design, installation, inspection, service, and monitoring of these systems. The work performed within this segment spans across a diverse mix of end markets with a focus on high tech services, advanced manufacturing, healthcare, fulfillment and distribution centers, and critical infrastructure. The Specialty Services segment provides a variety of specialty contracting, fabrication and distribution, and infrastructure and utility services. The work within this segment spans across a diverse mix of end markets with a focus on high tech services, healthcare, and critical infrastructure throughout North A …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUBSEQUENT EVENTS On July 1, 2026, the Company completed the acquisition of WTech Fire Group (""WTech""), a leading provider of fire sprinkler, suppression, and detection solutions across Europe. The total consideration transferred by the Company consists of approximately $394 in cash paid at closing. In conjunction with the acquisition, the Company entered into a USD to GBP cross-currency swap for a notional amount of $400 with a maturity date in June 2027 to manage foreign exchange risks associated with a new intercompany loan."

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