Financial Analysis

13. BUSINESS COMBINATIONS Acquisition of Alternative Power Generation, Inc. On March 3, 2025 (the APG Closing Date), the Company acquired all of the capital stock of Alternative Power Generation, Inc. (APG). APG provides innovative, progressive, and customized electric power solutions for EV charging, solar, AI data centers, microgrids, battery energy storage systems (BESS), and substations. APG offers consulting, design, engineering, procurement, and construction management. APGs financial information is included within the Energy segment beginning in the first quarter of fiscal year 2025. The Company agreed to pay up to $43.5 million for the purchase of all the capital stock of APG, which purchase price consists of (i) $19.5 million in cash paid on the APG Closing Date (subject to holdbacks and adjustments), (ii) $6.0 million in shares of the Companys common stock, based on the closing average price per share of the Companys common stock for the twenty trading days preceding the APG Closing Date, and (iii) up to $18.0 million in cash if APG exceeds certain financial targets during the three years after the APG Closing Date. The Company used cash on hand and restricted common stock to fund the initial purchase price on the APG Closing Date. The acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities at their estimated fair value with the excess allocated to goodwill. G …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

5. DEBT OBLIGATIONS Debt obligations, excluding obligations under finance leases (see Note 7, Leases, below), consisted of the following: January 2, December 27, 2026 2024 (in thousands) New Credit Agreement Outstanding borrowings on Term Loan A $ 48,750 $ Outstanding borrowings on Revolving Credit Facility Outstanding borrowings on Delayed Draw Term Loan Prior Credit Agreement Outstanding borrowings on Term Loan 90,000 Outstanding borrowings on Revolving Credit Facility Other debt agreements 137 Total debt 48,750 90,137 Issuance costs and debt discounts (288) (650) Subtotal 48,462 89,487 Less current portion of long-term debt 2,500 10,137 Long-term debt portion $ 45,962 $ 79,350 Prior Credit Agreement On September 29, 2023 (the Prior Credit Agreement Closing Date), the Company and certain of its subsidiaries entered into a credit agreement (the Prior Credit Agreement) with a syndicate of financial institutions as lenders and BMO Bank, N.A. (BMO), as administrative agent (the Administrative Agent). The Prior Credit Agreement provided for (i) a $100.0 million term loan (the Term Loan) and (ii) a $50.0 million revolving credit facility (the Prior Revolving Credit Facility, and collectively with the Term Loan, the Prior Credit Facilities), each maturing on September 29, 2026 . The Company could also request lenders to add incremental term loans or increase the aggregate commitment under the Prior Revolving Credit Facility by an aggregate amount of up to $75.0 million, subject to …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

2025 Energy Engineering and Consulting Total (in thousands) Contract Type Time-and-materials $ 49,898 $ 72,100 $ 121,998 Unit-based 215,499 26,235 241,734 Fixed price 310,654 7,166 317,820 Total (1) $ 576,051 $ 105,501 $ 681,552 Client Type Commercial $ 70,871 $ 7,029 $ 77,900 Government 227,497 98,233 325,730 Utilities (2) 277,683 239 277,922 Total (1) $ 576,051 $ 105,501 $ 681,552 Geography (3) Domestic $ 576,051 $ 105,501 $ 681,552 2024 Energy Engineering and Consulting Total (in thousands) Contract Type Time-and-materials $ 34,381 $ 67,931 $ 102,312 Unit-based 205,117 19,676 224,793 Fixed price 233,811 4,882 238,693 Total (1) $ 473,309 $ 92,489 $ 565,798 Client Type Commercial $ 34,072 $ 7,548 $ 41,620 Government 182,079 84,695 266,774 Utilities (2) 257,158 246 257,404 Total (1) $ 473,309 $ 92,489 $ 565,798 Geography (3) Domestic $ 473,309 $ 92,489 $ 565,798 2023 Energy Engineering and Consulting Total (in thousands) Contract Type Time-and-materials $ 35,582 $ 63,530 $ 99,112 Unit-based 199,040 15,753 214,793 Fixed price 192,354 3,836 196,190 Total (1) $ 426,976 $ 83,119 $ 510,095 Client Type Commercial $ 31,162 $ 5,866 $ 37,028 Government 159,935 76,972 236,907 Utilities (2) 235,879 281 236,160 Total (1) $ 426,976 $ 83,119 $ 510,095 Geography (3) Domestic $ 426,976 $ 83,119 $ 510,095 (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 Companys for …

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10. SHAREHOLDERS EQUITY Stock Incentive Plans 2006 Stock Incentive Plan In June 2006, the Companys board of directors adopted the 2006 Stock Incentive Plan (2006 Plan) and it received stockholder approval. The Company re-submitted the 2006 Plan to its stockholders for post-IPO approval at the 2007 annual meeting of the stockholders and it was approved. After the Companys shareholders approved the 2008 Plan (as defined below) in June 2008, no additional awards were granted under the 2006 Plan. The 2006 Plan had 300,000 shares of common stock reserved for issuance to the Companys directors, executives, officers, employees, consultants and advisors. Approximately 182,735 shares that were available for award grant purposes under the 2006 Plan became available for grant under the 2008 Plan following shareholder approval of the 2008 Plan. Options granted under the 2006 Plan could be non-statutory stock options which expired no more than 10 years from the date of grant or incentive stock options as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the Internal Revenue Code). Upon exercise of non-statutory stock options, the Company is generally entitled to a tax deduction on the exercise of the option for an amount equal to the excess over the exercise price of the fair market value of the shares at the date of exercise. The Company is generally not entitled to any tax deduction on the exercise of an incentive stock option. The 2006 Plan terminated in June 201 …

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6. GOODWILL AND OTHER INTANGIBLE ASSETS The Companys goodwill primarily relates to the Energy segment and the historical acquisitions within this segment which includes the fiscal year 2025 acquisition of Alternative Power Generation, as well as the fiscal year 2024 acquisition of substantially all of the assets of Enica. The remaining goodwill relates to the Engineering and Consulting reporting segment and the historical acquisitions within this segment which includes the fiscal year 2025 acquisition of Compass Municipal Advisors and Alpha. The changes in the carrying value of goodwill by reporting unit were as follows: December 27, Additional Additions / January 2, 2024 Purchase Cost Adjustments 2026 (in thousands) Reporting Unit: Energy $ 139,222 $ 31,613 $ $ 170,835 Engineering and Consulting 1,769 6,926 8,695 $ 140,991 $ 38,539 $ $ 179,530 December 29, Additional Additions / December 27, 2023 Purchase Cost Adjustments 2024 (in thousands) Reporting Unit: Energy $ 129,375 $ 9,847 $ $ 139,222 Engineering and Consulting 1,769 1,769 $ 131,144 $ 9,847 $ $ 140,991 The Company tests its goodwill at least annually for possible impairment. The Company completes its annual testing of goodwill as of the last day of the first month of its fourth fiscal quarter each year to determine whether there is impairment. In addition to the Companys annual test, it regularly evaluates whether events and circumstances have occurred that may indicate a potential impairment of goodwill. No impairm …

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11. INCOME TAXES On January 2, 2026, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 amends the rules on income tax disclosures to require entities to disclose specific categories in the rate reconciliation, the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and income tax expense or benefit from continuing operations (separated by federal, state, and foreign). ASU 2023-09 further requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. As permitted by ASU 2023-09, the Company adopted this standard on a prospective basis starting with its fiscal year 2025 annual reporting period. The provision for income taxes is comprised of (1) : Fiscal Year 2025 2024 2023 (in thousands) Current federal taxes $ (341) $ 361 $ 61 Current state taxes 1,234 1,207 676 Current foreign taxes 18 18 Deferred federal taxes (11,570) 1,677 2,022 Deferred state taxes (1,904) 846 906 $ (12,563) $ 4,109 $ 3,665 (1) Revenue from the Companys foreign operations was immaterial for fiscal years 2025, 2024, and 2023. The provision for income taxes reconciles to the amounts computed by applying the statutory federal tax rate of 21% for fiscal years 2025, 2024, and 2023 to the Companys income before income taxes. The sources and tax effects of the differences for fiscal years 2025, 2024 and 2023 are a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

14. CONTINGENCIES Claims and Lawsuits The Company is subject to claims and lawsuits from time to time, including those alleging professional errors or omissions that arise in the ordinary course of business against firms that operate in the engineering and consulting professions. The Company carries professional liability insurance, subject to certain deductibles and policy limits, for such claims as they arise and may from time to time establish reserves for litigation that is considered probable of a loss. In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and discloses the amount accrued and an estimate of any reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for the Companys financial statements not to be misleading. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. Because litigation outcomes are inherently unpredictable, the Companys evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one …

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"Accounting Pronouncements Recently Adopted In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2025-05, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). ASU 2025-05 allows an entity to elect a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset in the development of a reasonable and supportable forecast as part of estimating expected credit losses. The amendments are effective for the annual reporting periods beginning after December 15, 2025, and interim periods within those fiscal year reporting periods beginning after December 15, 2025, with early adoption permitted. The Company elected to early adopt this standard in the fourth quarter of fiscal year 2025. The adoption of this standard did not have a material impact on the Companys Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 amends the rules on income tax disclosures to require entities to disclose specific categories in the rate reconciliation, the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and income tax expense or benefit from continuing operations (separated by federal, state, and foreign). …

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9. SEGMENT AND GEOGRAPHICAL INFORMATION Segment Information The Companys two segments are Energy and Engineering and Consulting, and the Companys chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). The Company retroactively adopted ASU 2023-07, which requires, for fiscal years beginning after December 15, 2023, the disclosure of significant segment expenses that are regularly provided to the CODM, along with a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The Companys CODM evaluates the performance of each segment based upon the information provided below. There were no intersegment sales during the fiscal years 2025, 2024, or 2023. 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 Year 2025 Contract revenue $ 576,051 $ 105,501 $ $ $ 681,552 Direct subcontractor services and other direct costs 311,231 5,541 316,772 Direct salaries and wages 66,908 42,190 109,098 Gross profit 197,912 57,770 255,682 …

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16. SUBSEQUENT EVENTS In accordance with ASC Topic 855, Subsequent Events, the Company evaluates subsequent events up until the date the consolidated financial statements are issued. As of February 26, 2026, there were no subsequent events required to be reported.

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