Financial Analysis

3. Acquisition Acquisition Overview On February 3, 2026 (the Acquisition Date), the Company completed the acquisition of all of the outstanding capital stock of J.E. McAmis, Inc., a California corporation, and all of the membership interests in JEM Marine Leasing, LLC, a Washington limited liability company (collectively, JEM), pursuant to a Securities Purchase Agreement (the Purchase Agreement). J.E. McAmis, Inc. specializes in dredging, jetty and breakwater construction, environmental restoration and rehabilitation, and dam and spillway work and has historically operated primarily in Washington and Oregon, with additional projects in Canada, Florida, Alaska, and Hawaii. JEM Marine Leasing, LLC provides marine equipment leasing services to the operating business. The acquisition expands the Companys marine platform, enhances its presence in West Coast and Pacific markets, and adds specialized dredging and marine construction capabilities. The Company has included the results of JEM in its condensed consolidated financial statements from the Acquisition Date. Consideration Transferred The preliminary purchase consideration consisted of (i) $44.9 million in cash, subject to customary post-closing adjustments under the Purchase Agreement, (ii) an unsecured 6%, five-year subordinated seller promissory note with a principal amount of $12.0 million, (iii) 182,392 shares of the Companys common stock, and (iv) contingent post-closing cash payments dependent upon project profit reali …

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15. Commitments and Contingencies The Company is involved in various legal, audit, and other proceedings that are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Companys financial condition, results of operations, or cash flows. Management believes that it has recorded adequate reserves and believes that it has adequate insurance coverage or has meritorious defenses for these claims and contingencies. In October 2025, the Company received a sales tax assessment of $15 million from the State of Texas covering multiple periods. The Company believes it has meritorious defenses and based on current facts and circumstances does not believe a loss is probable. …

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10. Debt On December 23, 2025, the Company entered into a $120 million Credit Agreement (as amended, the UMB Credit Agreement) with certain financial institutions from time-to-time party thereto, as lenders, and UMB Bank, N.A., as Administrative Agent and Issuing Bank. The UMB Credit Agreement consists of a $60 million revolving loan (the UMB Revolver), a $20 million equipment term loan and a $40 million acquisition term loan. In addition, the UMB Credit Agreement provides for a $25 million accordion option for future acquisitions (subject to customary conditions). The UMB Credit Agreement is secured by substantially all of the assets of the Company and certain of its domestic subsidiaries, subject to permitted liens, and is guaranteed, on a joint and several basis, by each existing and subsequently acquired or formed direct and indirect domestic subsidiary of the Company. The UMB Credit Agreement is used to finance working capital and general corporate purposes, capital expenditures, permitted acquisitions and associated transaction fees, and to refinance existing indebtedness. Borrowings under the UMB Revolver may be repaid and reborrowed, subject to the borrowing base and other conditions. The UMB Credit Agreement matures in December 2030. The UMB Credit Agreement includes a letter of credit sublimit equal to the lesser of $7.5 million and the total amount of the revolving commitments then in effect. The Company is subject to a commitment fee on the average daily unused am …

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Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Marine Segment Construction $ 109,881 $ 114,830 $ 202,564 $ 219,312 Dredging 16,630 17,700 30,711 34,611 Specialty services 4,332 2,772 7,697 8,542 Marine segment contract revenues $ 130,843 $ 135,302 $ 240,972 $ 262,465 Concrete Segment Structural $ 6,673 $ 12,582 $ 16,426 $ 26,303 Light commercial 84,362 57,402 180,781 105,171 Concrete segment contract revenues $ 91,035 $ 69,984 $ 197,207 $ 131,474 Total contract revenues $ 221,878 $ 205,286 $ 438,179 $ 393,939 …

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14. Share-Based Compensation The Compensation Committee of the Companys Board of Directors is responsible for the administration of the Companys stock incentive plans. In general, the Companys Long-Term Incentive Plan ( LTIP) provides for grants of restricted shares and performance-based stock units to be issued with a per-share price not less than the fair market value of a share of common stock on the date of grant. The Company accounts for forfeitures of awards as they are incurred. In May 2024, shareholders approved the Employee Stock Purchase Plan (ESPP), which became effective on September 16, 2024. The Company has reserved a total of 1,000,000 shares under the ESPP, all of which are authorized and available for future issuance under the ESPP. During the six months ended June 30, 2026 and 2025, there were 65,783 and 71,133 shares, respectively, issued under the ESPP. The table below presents the share-based compensation expense included in the Companys accompanying Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Restricted share awards $ 1,387 $ 1,456 $ 2,316 $ 2,189 Performance share unit awards 472 (25) 835 282 Employee share purchase plan 147 88 242 171 Total share-based compensation expense $ 2,006 $ 1,519 $ 3,393 $ 2,642 Under its approved LTIP, the Company grants share-based awards to its employees. The following table presents a summary of the Companys unvested restricted share awards and …

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8. Fair Value Recurring Fair Value Measurements The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. Due to their short-term nature, the Company believes that the carrying value of its accounts receivable, other current assets, accounts payable and other current liabilities approximate their fair values. The Company classifies financial assets and liabilities into the following three levels based on the inputs used to measure fair value in the order of priority indicated: Level 1- fair values are based on observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 - fair values are based on pricing inputs other than quoted prices in active markets for identical assets and liabilities and are either directly or indirectly observable as of the measurement date; and Level 3 - fair values are based on unobservable inputs in which little or no market data exists. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Companys assessment of the significance of a particular input to the fair value requires judgment and may affect the placement of assets and liabilities within the fair value hierarchy levels. The Companys derivatives, which are comprised of interest rate swaps, are valued using a discounted cash flow analysis that incorporates observ …

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12. Income Taxes The Companys effective tax rate is based on expected income, statutory rates and tax planning opportunities available to it. For interim financial reporting, the Company estimates its annual tax rate based on projected taxable income for the full year and records a quarterly tax provision in accordance with the anticipated annual rate. Income tax expense (benefit) included in the Companys accompanying Condensed Consolidated Statements of Operations was as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Income tax expense (benefit) $ 474 $ (212) $ (6,378) $ (72) Effective tax rate (12.9) % (33.7) % 109.3 % 11.2 % The effective rate for the three and six months ended June 30, 2026 differed from the Companys statutory federal rate of 21% primarily due to permanent differences and a decrease in valuation allowance in the period. The decrease in the valuation allowance is attributable to the recognition of the deferred tax liabilities arising from the fair value adjustments recorded as part of the JEM acquisition. These deferred tax liabilities represent a source of future taxable income that supports the realizability of the Companys deferred tax assets. The Company assessed the realizability of its deferred tax assets and determined that it was more likely than not that some portion or all the deferred tax assets would not be realized and therefore recorded a valuation allowance on the net deferred tax assets. The Company asses …

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The Financial Accounting Standards Board (FASB) issues accounting standards and updates (each, an ASU) from time to time to its Accounting Standards Codification (ASC), which is the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers applicability to its business. All ASUs are adopted by their respective due dates and in the manner prescribed by the FASB. In November 2024, the FASB issued ASU No. 2024-03 , Income StatementReporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures . The amendments require entities to provide enhanced disaggregation of certain expense categories presented in the income statement, including details on significant components within those categories, to provide greater transparency and decision-useful information to users of financial statements. The ASU is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on the disclosures within its consolidated financial statements. In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . The amendments introduce a practical expedient that allows entities to assume current conditions as of the balance sheet date remain unchanged over the remaining life of current accounts receivable and current contract assets arising …

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4. Revenue Contract revenues are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table represents a disaggregation of the Companys contract revenues by service line for the marine and concrete segments: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Marine Segment Construction $ 109,881 $ 114,830 $ 202,564 $ 219,312 Dredging 16,630 17,700 30,711 34,611 Specialty services 4,332 2,772 7,697 8,542 Marine segment contract revenues $ 130,843 $ 135,302 $ 240,972 $ 262,465 Concrete Segment Structural $ 6,673 $ 12,582 $ 16,426 $ 26,303 Light commercial 84,362 57,402 180,781 105,171 Concrete segment contract revenues $ 91,035 $ 69,984 $ 197,207 $ 131,474 Total contract revenues $ 221,878 $ 205,286 $ 438,179 $ 393,939 The Company has determined that it has two reportable operating segments as described in Note 16, but has disaggregated its contract revenues in the above chart in terms of services provided within such segments. Additionally, both the marine and concrete segments have limited contracts with multiple performance obligations. The Companys contracts are often estimated and bid as one project and performance is evaluated as one project, not by individual services performed by each. Additionally, the table below represents contract revenue by type of customer for the three …

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16. Segment Information The Company has determined that it has two reportable operating segments pursuant to ASC Topic 280, Segment Reporting: marine and concrete, both operating under the Company brand and logo, and one non-operating segment, general corporate. The Chief Operating Decision Maker (CODM), identified as the Chief Executive Officer, allocates resources and assesses performance based on these reportable segments. In making this determination, management considered both quantitative and qualitative factors under ASC 280-10-50-11, including similarities in products and services, production processes, customer types, distribution methods, and regulatory environments. Although the segments share certain macroeconomic drivers, they are managed separately and have distinct operating results reviewed by the CODM for purposes of resource allocation and performance evaluation. Each segment has a designated management team responsible for day-to-day operations, and discrete financial information is produced and evaluated at the segment level. Segment operating income (loss) is the primary performance measure used by the CODM in assessing performance of the segments. Segment operating income (loss) represents revenues, less direct costs of contract revenues, selling, general, and administrative expenses, and gains or losses on the disposal of assets. The CODM reviews segment results inclusive of all expenses directly attributable to the respective segments. Interest expense …

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2. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issues accounting standards and updates (each, an ASU) from time to time to its Accounting Standards Codification (ASC), which is the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers applicability to its business. All ASUs are adopted by their respective due dates and in the manner prescribed by the FASB. In November 2024, the FASB issued ASU No. 2024-03 , Income StatementReporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures . The amendments require entities to provide enhanced disaggregation of certain expense categories presented in the income statement, including details on significant components within those categories, to provide greater transparency and decision-useful information to users of financial statements. The ASU is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on the disclosures within its consolidated financial statements. In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . The amendments introduce a practical expedient that allows entities to assume current conditions as of the balance sheet date remain unchanged over the remaining life of current accounts receivable …

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