Segment Information

12 Months Ended

Dec. 31, 2024

Segment Information

Segment Information

16. Segment Information

We have two reportable segments: (a) our mechanical segment, which includes HVAC, plumbing, piping, and controls, as well as off-site construction, monitoring and fire protection; and (b) our electrical segment, which includes installation and servicing of electrical systems. We consider these two lines of business to be separate segments because they require different skill sets, and the business models for providing services have some differences, as a mechanical system requires ongoing maintenance and monitoring and an electrical system generally does not. However, the business model for installation of new systems or retrofitting existing systems is very similar between the two segments. Segment information is prepared on the same basis that our Chief Operating Decision Maker (“CODM”) reviews financial information for operational decision-making purposes. Our CODM is the President and Chief Executive Officer. Our CODM allocates resources such as employees and capital resources primarily based on historical and potential future revenue, gross profit and operating income. Our CODM also uses segment gross profit and operating income when assessing pricing and performance by management teams in our operating segments.

Our activities are within the mechanical services industry and the electrical services industry, which represent our two reportable segments. We aggregate our operating segments into two reportable segments, as the operating segments meet all of the aggregation criteria. Substantially all of our revenue is generated, and all of our assets are located, in the United States, our country of domicile. The following tables present information about our reportable segments (in thousands):

	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Total assets at December 31, 2024	$	3,162,677	$	985,006	$	563,405	$	4,711,088
Total assets at December 31, 2023	$	2,180,021	$	901,025	$	224,533	$	3,305,579
	Year Ended December 31, 2024
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	5,527,604	$	1,499,872	$	—	$	7,027,476
Cost of services		4,413,108		1,137,957		—		5,551,065
Gross profit		1,114,496		361,915		—		1,476,411
Selling, general and administrative expenses		499,441		170,155		60,476		730,072
Gain on sale of assets		(1,813)		(1,217)		—		(3,030)
Operating income	$	616,868	$	192,977	$	(60,476)	$	749,369
Amortization of identifiable intangible assets	$	74,873	$	22,393	$	—	$	97,266
Depreciation expense	$	39,601	$	7,450	$	1,168	$	48,219
Capital expenditures	$	80,957	$	26,850	$	3,264	$	111,071
	Year Ended December 31, 2023
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	3,946,022	$	1,260,738	$	—	$	5,206,760
Cost of services		3,195,916		1,020,335		—		4,216,251
Gross profit		750,106		240,403		—		990,509
Selling, general and administrative expenses		394,657		129,623		50,143		574,423
Gain on sale of assets		(1,715)		(587)		—		(2,302)
Operating income	$	357,164	$	111,367	$	(50,143)	$	418,388
Amortization of identifiable intangible assets	$	17,619	$	25,785	$	—	$	43,404
Depreciation expense	$	30,850	$	6,576	$	736	$	38,162
Capital expenditures	$	82,449	$	9,600	$	2,789	$	94,838
	Year Ended December 31, 2022
	Mechanical Segment		Electrical Segment		Corporate		Consolidated
Revenue	$	3,178,475	$	961,889	$	—	$	4,140,364
Cost of services		2,597,856		800,900		—		3,398,756
Gross profit		580,619		160,989		—		741,608
Selling, general and administrative expenses		345,184		99,579		44,581		489,344
Gain on sale of assets		(1,290)		(295)		—		(1,585)
Operating income	$	236,725	$	61,705	$	(44,581)	$	253,849
Amortization of identifiable intangible assets	$	19,641	$	28,154	$	—	$	47,795
Depreciation expense	$	26,658	$	6,211	$	683	$	33,552
Capital expenditures	$	43,532	$	4,101	$	726	$	48,359

For the years ended December 31, 2024 and 2023, one customer represented 13.3% and 13.8% of consolidated revenue, respectively, and was included in our mechanical segment revenues. No individual customer represented 10% or more of our consolidated revenue in the year ended December 31, 2022.