The Davey Tree Expert Company

11/10/2026 | Press release | Distributed by Public on 11/10/2026 13:48

Quarterly Report for Quarter Ending October 3, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
(Amounts in thousands, except share data)
Management's Discussion and Analysis of Financial Condition and Results of Operations is provided as a supplement to the accompanying condensed consolidated financial statements and notes to help provide an understanding of our financial condition, cash flows and results of operations.
We provide a wide range of arboricultural, horticultural, environmental and consulting services to residential, utility, commercial and government entities mainly throughout the United States and Canada.
Our Business--Our operating results are reported in two segments organized by type or class of customer: Residential and Commercial, and Utility. Residential and Commercial provides services to our residential and commercial customers including: the treatment, preservation, maintenance, removal and planting of trees, shrubs and other plant life; the practice of landscaping, grounds maintenance, tree surgery, tree feeding and tree spraying; the application of fertilizer, herbicides and insecticides; and natural resource management and consulting, forestry research and development, and environmental planning. Utility is principally engaged in providing services to our utility customers--investor-owned, municipal utilities, and rural electric cooperatives--including: the practice of line-clearing and vegetation management around power lines and rights-of-way and chemical brush control, natural resource management and consulting, forestry research and development, and environmental planning. All other operating activities, including research, technical support and laboratory diagnostic facilities, are included in "All Other."
Recent Trends
Our business continues to be impacted by a number of macro-economic factors. General economic conditions, geopolitical uncertainty, and market volatility have contributed to an increasingly difficult operating environment. These factors, combined with fluctuating interest rates and a highly competitive labor market, have created an inflationary environment and cost pressures.
Geopolitical developments, including the conflict in the Middle East involving Iran, have increased volatility in global energy markets. As a result, fuel prices have experienced periods of fluctuation, which could lead to a material adverse impact on our business and economic pressures on our customers. In addition, we continue to monitor macroeconomic trends and uncertainties and changes in international trade relations and trade policy, including those related to tariffs.
Inflation has led us to experience higher costs, including higher labor costs and costs for materials from suppliers and transportation costs, and, in the competitive markets in which we operate, we may not be able to increase our prices correspondingly to preserve our gross margins and profitability. If inflation rates continue to rise or remain elevated for a sustained period of time, they could have a material adverse effect on our business, financial condition, results of operations and liquidity.
- 43 -
Index
RESULTS OF OPERATIONS
The following table sets forth our consolidated results of operations as a percentage of revenues and the change in such percentages for the periods presented.
Three Months Ended Nine Months Ended
October 3,
2026 		September 27,
2025 		Change October 3,
2026 		September 27,
2025 		Change
Revenues 100.0 % 100.0 % - % 100.0 % 100.0 % - %
Costs and expenses:
Operating 62.9 64.2 (1.3) 64.3 64.8 (.5)
Selling 17.8 17.3 .5 17.8 17.5 .3
General and administrative 7.2 7.5 (.3) 8.6 8.1 .5
Depreciation and amortization 4.7 3.9 .8 4.7 4.0 .7
Loss (gain) on sale of assets, net .3 (.4) .7 (.1) (.3) .2
Income from operations 7.1 7.5 (.4) 4.7 5.9 (1.2)
Other income (expense):
Interest expense (1.7) (1.0) (.7) (1.5) (1.0) (.5)
Interest income .1 .1 - .2 .1 .1
Other, net (.8) (.4) (.4) (.6) (.2) (.4)
Income before income taxes 4.7 6.2 (1.5) 2.8 4.8 (2.0)
Income taxes 1.1 1.9 (.8) .6 1.3 (.7)
Net income 3.6 % 4.3 % (.7) % 2.2 % 3.5 % (1.3) %
- 44 -
Index
Third Quarter-Three Months Ended October 3, 2026 Compared to Three Months Ended September 27, 2025
Our results of operations for the three months ended October 3, 2026 compared to the three months ended September 27, 2025 were as follows:
Three Months Ended
October 3,
2026 		September 27,
2025 		Change Percentage
Change
Revenues $ 522,668 $ 500,666 $ 22,002 4.4 %
Costs and expenses:
Operating 329,330 321,065 8,265 2.6
Selling 92,780 86,813 5,967 6.9
General and administrative 37,501 37,309 192 0.5
Depreciation and amortization 24,482 19,969 4,513 22.6
Loss (gain) on sale of assets, net 1,427 (2,008) 3,435 (171.1)
485,520 463,148 22,372 4.8
Income from operations 37,148 37,518 (370) (1.0)
Other income (expense):
Interest expense (8,723) (5,066) (3,657) 72.2
Interest income 735 568 167 29.4
Other, net (4,202) (2,041) (2,161) 105.9
Income before income taxes 24,958 30,979 (6,021) (19.4)
Income taxes 6,049 9,365 (3,316) (35.4)
Net income $ 18,909 $ 21,614 $ (2,705) (12.5) %
Revenues--Revenues of $522,668 increased $22,002 compared with $500,666 in the third quarter of 2025. Utility Services increased $13,254 or 4.9% compared with the third quarter of 2025. The increase was primarily attributable to utility line clearance services and vegetation management due growth from both new and existing accounts. Residential and Commercial Services increased $11,492 or 5.0% from the third quarter of 2025. Increases were primarily in tree and plant care revenues and higher storm damage revenue.
Operating Expenses--Operating expenses of $329,330 increased $8,265 compared with the third quarter of 2025. Utility Services increased $6,165 or 3.0% compared with the third quarter of 2025 but, as a percentage of revenue, decreased to 73.7% from 75.0%. The increase was primarily attributable to labor and benefits expenses, partially offset by decreases in subcontractor expenses and travel expenses. Residential and Commercial Services increased $4,664 or 3.9% compared with the third quarter of 2025 but, as a percentage of revenue, decreased to 51.0% from 51.6%. The increase was primarily attributable to shop and tools expenses, labor and benefits expenses, and equipment expenses, partially offset by a decrease in insurance expenses.
Fuel costs of $17,656 increased $5,168, or 41.4%, from the $12,488 incurred in the third quarter of 2025 and impacted operating expenses within all segments. The $5,168 increase included usage increases approximating $556 and price increases approximating $4,612.
- 45 -
Index
Selling Expenses--Selling expenses of $92,780 increased $5,967 compared with the third quarter of 2025 and, as a percentage of revenue, increased to 17.8% from 17.3%. Utility Services increased $2,117 or 7.4% compared to the third quarter of 2025 and, as a percentage of revenue, increased to 10.8% from 10.6%. The increase was primarily attributable to increases in travel expenses, vehicle expenses and subcontractor expenses, partially offset by a decrease in wages and benefits expenses. Residential and Commercial Services increased $4,021 or 6.7% from the third quarter of 2025 and, as a percentage of revenue, increased to 26.4% from 25.9%. The increase was primarily attributable to increases in wages and benefits expenses, vehicle expenses, and personnel development expenses.
General and Administrative Expenses--General and administrative expenses of $37,501 remained relatively flat, increasing $192 from $37,309 in the third quarter of 2025.
Depreciation and Amortization Expense--Depreciation and amortization expense of $24,482 increased $4,513 from $19,969 incurred in the third quarter of 2025 which was primarily attributable to an increased mix of equipment purchased or leased under finance leases rather than operating leases, along with depreciation on our corporate office expansion.
Loss (gain) on the Sale of Assets, Net--Loss on the sale of assets of $1,427 for the third quarter of 2026 decreased $3,435 from the $2,008 gain in the third quarter of 2025. We sold fewer units of equipment and at an average loss per unit in the third quarter of 2026 as compared with more units sold and at an average gain per unit in the third quarter of 2025.
Interest Expense--Interest expense of $8,723 increased $3,657 from the $5,066 incurred in the third quarter of 2025. The increase was primarily attributable to higher average borrowings during the third quarter of 2026, as compared with the third quarter of 2025.
Other, Net--Other expense, net, of $4,202 increased $2,161 from the $2,041 of other expense incurred in the third quarter of 2025 primarily driven by changes in foreign exchange rates. Other, net consists of nonoperating income and expense, including gains and losses on marketable securities, pension expense, bank fees, and foreign currency transaction adjustments.
Income Taxes--Income taxes for the third quarter of 2026 were $6,049, as compared to $9,365 for the third quarter of 2025. Our tax provision for interim periods is determined using an estimate of our annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. The effective tax rate for the third quarter of 2026 was 24.2% as compared with the third quarter of 2025 effective tax rate of 30.2%.
- 46 -
Index
Nine Months-Nine Months Ended October 3, 2026 Compared to Nine Months Ended September 27, 2025
Our results of operations for the nine months ended October 3, 2026 compared to the nine months ended September 27, 2025 were as follows:
Nine Months Ended
October 3,
2026 		September 27,
2025 		Change Percentage
Change
Revenues $ 1,477,376 $ 1,447,947 $ 29,429 2.0 %
Costs and expenses:
Operating 951,198 938,318 12,880 1.4
Selling 262,918 253,769 9,149 3.6
General and administrative 127,261 116,945 10,316 8.8
Depreciation and amortization 68,844 57,870 10,974 19.0
Gain on sale of assets, net (1,546) (4,023) 2,477 (61.6)
1,408,675 1,362,879 45,796 3.4
Income from operations 68,701 85,068 (16,367) (19.2)
Other income (expense):
Interest expense (21,796) (14,428) (7,368) 51.1
Interest income 3,139 1,876 1,263 67.3
Other, net (8,539) (3,333) (5,206) 156.2
Income before income taxes 41,505 69,183 (27,678) (40.0)
Income taxes 8,549 18,057 (9,508) (52.7)
Net income $ 32,956 $ 51,126 $ (18,170) (35.5) %
Revenues--Revenues of $1,477,376 increased $29,429 compared with $1,447,947 in the first nine months of 2025. Utility Services increased $20,795 or 2.6% compared with the first nine months of 2025. The increase was attributable to growth on both new and existing accounts along with an increase in consulting services, partially offset by lower storm damage revenue. Residential and Commercial Services increased $10,424 or 1.6% compared with the first nine months of 2025. Increases were primarily in tree and plant care revenue and consulting services, partially offset by decreases in storm damage revenue. Although storm damage revenue increased in the third quarter of 2026, the increase did not fully offset lower storm damage revenue from the first six months of 2026.
Operating Expenses--Operating expenses of $951,198 increased $12,880 compared with the first nine months of 2025 but, as a percentage of revenue, decreased to 64.3% from 64.8%. Utility Services increased $16,897 or 2.9% compared with the first nine months of 2025 and, as a percentage of revenue, increased to 74.4% from 74.2%. The increase was attributable to increases in labor and benefits expenses partially offset by decreases in subcontractor expenses and travel expenses. Residential and Commercial Services decreased $2,410 or 0.7% compared with the first nine months of 2025 and, as a percentage of revenue, decreased to 52.2% from 53.4%. The decrease was primarily attributable to subcontractor expenses partially offset by increases in labor and benefits.
Fuel costs of $45,397 increased $8,945, or 24.5%, from the $36,452 incurred in the first nine months of 2025 and impacted operating expenses within all segments. The $8,945 increase included usage increases approximating $426 and price increases approximating $8,519.
- 47 -
Index
Selling Expenses--Selling expenses of $262,918 increased $9,149 compared with the first nine months of 2025 and, as a percentage of revenue, increased to 17.8% from 17.5%. Utility Services increased $2,783 or 3.2% compared to the first nine months of 2025 and, as a percentage of revenue, increased to 11.2% from 11.1%. The increase was primarily attributable to increases in travel expenses, computer software expenses and vehicle expenses, which is partially offset by a decrease in wages and benefits expenses. Residential and Commercial Services increased $6,475 or 3.8% compared to the first nine months of 2025 and, as a percentage of revenue, increased to 26.6% from 26.0%. The increase was primarily attributable to an increase in wages and benefits expenses, vehicle expenses, and personnel development expenses.
General and Administrative Expenses--General and administrative expenses of $127,261 increased $10,316 from $116,945 in the first nine months of 2025. The increase was primarily attributable to increases in salary and benefits expenses and computer software expenses which were partially offset by decreases in travel expenses.
Depreciation and Amortization Expense--Depreciation and amortization expense of $68,844 increased $10,974 from $57,870 incurred in the first nine months of 2025, which was primarily attributable to a higher proportion of equipment purchased or leased under finance leases rather than operating leases, along with depreciation on our corporate office expansion.
Gain on the Sale of Assets, Net--Gain on the sale of assets of $1,546 for the first nine months of 2026 decreased $2,477 from the $4,023 gain in the first nine months of 2025. We sold fewer units of equipment at a lower average gain during the first nine months of 2026 as compared with the first nine months of 2025.
Interest Expense--Interest expense of $21,796 increased $7,368 from the $14,428 incurred in the first nine months of 2025. The increase was primarily attributable to higher average borrowings on the revolving credit facility during the first nine months of 2026, as compared with the first nine months of 2025.
Other, Net--Other expense, net of $8,539 increased $5,206 from the $3,333 expense incurred in the first nine months of 2025 primarily driven by changes in foreign exchange rates and an increase in bank fees. Other, net consists of nonoperating income and expense, including gains and losses on marketable securities, pension expense, bank fees, and foreign currency transaction adjustments.
Income Taxes--Income tax for the first nine months of 2026 was $8,549, as compared to $18,057 for the first nine months of 2025. Our tax provision for interim periods is determined using an estimate of our annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. The actual effective tax rate for the first nine months of 2026 was 20.6%. Our actual effective tax rate for the first nine months of 2025 was 26.1%. The change in the effective tax rate from statutory tax rates was primarily due to the impact of favorable discrete items which are a set amount and therefore have a larger impact on the rate based on our net income before tax in the first nine months compared to the impact they will have on the rate for the full year.
LIQUIDITY AND CAPITAL RESOURCES
Our principal financial requirements are for capital spending, working capital and business acquisitions. Cash generated from operations, our revolving credit facility and note issuances are our primary sources of capital.
- 48 -
Index
Cash Flow Summary
Our cash flows from operating, investing and financing activities for the nine months ended October 3, 2026 and September 27, 2025 were as follows:
Nine Months Ended
October 3,
2026 		September 27,
2025
Net cash provided by (used in):
Operating activities $ 12,675 $ 74,472
Investing activities (111,941) (90,794)
Financing activities 111,875 20,582
Effect of exchange rate changes on cash (47) 140
Increase in cash $ 12,562 $ 4,400
Net Cash Provided By Operating Activities--Operating activities provided cash of $12,675 in the first nine months of 2026, compared to $74,472 provided in the first nine months of 2025. The $61,797 decrease in cash provided by operating activities was primarily attributable to the decrease of $18,170 in net income, the increase of $50,528 in cash used by accounts receivable, the increase of $20,182 in cash used by self-insurance accruals, the increase of $4,818 in cash used by accounts payable and accrued expenses and the increase of $4,084 in prepaid expenses. The decrease was partially offset by the increase of $10,974 in depreciation and amortization, the increase of $4,923 in cash provided by refundable income taxes, the increase of $3,651 in cash provided by mitigation bank credit inventory and the increase of $12,828 in cash provided by other, net.
Overall, accounts receivable increased $70,275 during the first nine months of 2026, as compared to an increase of $19,747 during the first nine months of 2025. With respect to the change in accounts receivable arising from business levels, the "days-sales-outstanding" in accounts receivable (sometimes referred to as "DSO") at the end of the first nine months of 2026 increased by 3 days to 79 days, when compared to 76 days at the end of the first nine months of 2025. As we continue to grow and expand our service offerings, our DSO will be influenced by various factors such as individual contract terms, the nature of the work performed and the timing and mix of storm response work.
Self-insurance accruals decreased $20,025 in the first nine months of 2026, a change of $20,182 from the increase of $157 experienced in the first nine months of 2025. The larger decrease in the first nine months of 2026 was mainly attributable to the higher settlement of claims during the first nine months of 2026 compared to the first nine months of 2025.
Accounts payable and accrued expenses decreased $3,439 in the first nine months of 2026, a change of $4,818 compared to the $1,379 increase in the first nine months of 2025. This change was primarily attributable to accounts payable which was partially offset by the timing of medical claims, employee compensation, and compensated absences.
Prepaid expenses increased $12,170 in the first nine months of 2026, a change of $4,084 compared to the $8,086 increase in the first nine months of 2025. The change was primarily related to prepaid insurance premiums.
Refundable income taxes decreased $4,472 in the first nine months of 2026, a change of $4,923 compared to the $451 increase in the first nine months of 2025. The change was primarily related to a decrease in the balance of income taxes refundable due to lower net income in the first nine months of 2026 compared to the first nine months of 2025.
- 49 -
Index
Mitigation bank credit inventory decreased $2,986 in the first nine months of 2026, a change of $3,651 compared to the increase of $665 in the first nine months of 2025. Mitigation bank credit inventory levels are affected by the timing of credit inventory sales, with a higher level of credit sales in the first nine months of 2026 compared to the first nine months of 2025. Mitigation bank credit inventories are composed of credits that are available to sell to third parties through remediation of properties such as stream or wetland restoration.
Other, net provided cash of $5,650 in the first nine months of 2026, or $12,828 more than the $7,178 of cash used in the first nine months of 2025. The change was primarily attributable to higher payroll taxes refundable received during the first nine months of 2026 compared to the first nine months of 2025 as well as a lower cash used for deferred compensation during the first nine months of 2026 compared to the first nine months of 2025.
Net Cash Used In Investing Activities--Cash used in investing activities for the first nine months of 2026 was $111,941, a $21,147 increase when compared to the $90,794 used during the first nine months of 2025. The increase was primarily the result of an increase in net purchases of marketable securities of $7,061 to fund our wholly owned captive insurance subsidiary, an increase in cash used for purchases of businesses of $6,353 and an increase in capital expenditures for equipment of $22,674, partially offset by a decrease in cash used for capital expenditures for buildings of $17,553.
Net Cash Provided By Financing Activities--Cash provided by financing activities was $111,875 during the first nine months of 2026, an increase of $91,293 as compared with the $20,582 provided during the first nine months of 2025. Our net borrowing and repayment activity on our revolving credit facility resulted in a net cash inflow of $178,939 during the first nine months of 2026 as compared with $90,901 net cash outflow during the first nine months of 2025. We use the credit facility primarily for capital expenditures, redemptions of shares and payments of notes payable related to acquisitions. Net cash used for the payment of notes payable totaled $12,862 during the first nine months of 2026, a change of $157,048 when compared to the $144,186 net cash provided from notes payable in the first nine months of 2025. Treasury share transactions (purchases and sales) used cash of $40,326 for the first nine months of 2026, $16,722 more than the $23,604 used in the first nine months of 2025. Dividends paid of $3,556 during the first nine months of 2026 increased $260 as compared with $3,296 paid in the first nine months of 2025.
The Company currently repurchases common shares at shareholders' requests in accordance with the terms of the Davey 401KSOP and ESOP Plan and also repurchases common shares from time to time at the Company's discretion. The amount of common shares offered to the Company for repurchase by the holders of shares distributed from the Davey 401KSOP and ESOP Plan is not within the control of the Company, but is at the discretion of the shareholders. The Company expects to continue to repurchase its common shares, as offered by its shareholders from time to time, at their then current fair value. However, other than for repurchases pursuant to the put option under the Davey 401KSOP and ESOP Plan, as described in Note Q, such purchases are not required, and the Company retains the right to discontinue them at any time. Repurchases of redeemable common shares at shareholders' request approximated $16,208 and $16,230 during the nine months ended October 3, 2026 and September 27, 2025, respectively. Share repurchases, other than redeemable common shares, approximated $55,276 and $44,249 during the nine months ended October 3, 2026 and September 27, 2025, respectively.
Contractual Obligations Summary and Commercial Commitments
As of October 3, 2026, total commitments related to issued letters of credit were $115,879, of which $1,684 were issued under the revolving credit facility, $113,764 were issued under the AR Securitization program, and $431 was issued under a short-term line of credit. As of December 31, 2025, total commitments related to issued letters of credit were $101,659, of which $2,250 were issued under the revolving credit facility, $99,071 were issued under the AR Securitization program, and $338 were issued under short-term lines of credit. For more information, see "Part I - Item 1 - Note G, Short and Long-Term Debt and Commitments Related to Letters of Credit."
- 50 -
Index
Also, as is common in our industry, we have performance obligations that are supported by surety bonds, which expire during 2026 through 2033. We intend to renew the surety bonds where appropriate and as necessary.
Capital Resources
Cash generated from operations, our revolving credit facility and note issuances are our primary sources of capital.
Business seasonality traditionally results in higher revenues during the second and third quarters as compared with the first and fourth quarters of the year, while our methods of accounting for fixed costs, such as depreciation and amortization expense, rent and interest expense, are not significantly impacted by business seasonality. Capital resources during these periods are equally affected. We satisfy seasonal working capital needs and other financing requirements with the revolving credit facility and other short-term lines of credit. We continually review our existing sources of financing and evaluate alternatives. At October 3, 2026, we had working capital of $209,142, availability under short-term lines of credit approximating $623 and $93,874 available under our revolving credit facility.
For more information regarding our outstanding debt, see "Part I - Item 1 - Note G, Short and Long-Term Debt and Commitments Related to Letters of Credit."
We believe our sources of capital, at this time, provide us with the financial flexibility to meet our capital-spending plans for at least the next twelve months and for the reasonably foreseeable future.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented.
We believe that our policies related to revenue recognition, the allowance for credit losses, stock valuation, contingent consideration valuation and self-insurance accruals are our "critical accounting policies and estimates"--those most important to the financial presentations and those that require the most difficult, subjective or complex judgments.
On an ongoing basis, we evaluate our estimates and assumptions, including those related to accounts receivable, specifically those receivables under contractual arrangements primarily with Utility customers; allowance for credit losses; self-insurance accruals; and contingent consideration valuation. We base our estimates on historical experience and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). These statements relate to future events or our future financial performance. In some cases, forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "might," "expects," "intends," "plans," "anticipates," "believes," "estimates," "seeks," "predicts," "potential," "would," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are difficult to predict and are outside of our control, that may cause our or our industry's actual results, levels of activity, performance or achievements to differ materially from what is expressed or implied in these forward-looking statements. The following are some important factors that
- 51 -
Index
could cause actual results to differ materially from those in the forward-looking statements or materially adversely affect our business, results of operations or financial condition:
•our inability to attract and retain a sufficient number of qualified employees for our field operations or qualified management personnel and the possibility that increased wage rates may result from our need to attract and retain employees;
•our ability to withstand intense competition;
•the potential impact of acquisitions or other strategic transactions;
•the impact of wildfires, as well as other severe weather events and natural disasters, which may worsen or increase due to the effects of climate change;
•increases in the cost of obtaining adequate insurance, or the inadequacy of our self-insurance accruals or insurance coverages;
•inability to obtain, or cancellation of, third-party insurance coverage;
•fluctuations in our quarterly results due to the seasonal nature of our business or changes in general and local economic conditions, among other factors;
•payment delays or delinquencies resulting from financial difficulties of our significant customers, particularly utilities;
•the outcome of litigation and third-party and governmental regulatory claims against us;
•an increase in our operating expenses due to significant increases or volatility in fuel prices for extended periods of time, and ongoing volatility arising from the effects of geopolitical conflict;
•disruptions, delays or price increases within our supply chain;
•the impact of global climate change and related regulations;
•being contractually bound to an unprofitable contract;
•a disruption in our information technology systems, including a disruption related to our cybersecurity program or a third-party's information technology system upon which we rely, or the impact of costs incurred to comply with cybersecurity or data privacy regulations;
•widespread outages, interruptions or other failures of operational, communication and other systems;
•damage to our reputation of quality, integrity and performance;
•our failure to comply with environmental laws resulting in significant liabilities, fines and/or penalties;
•difficulties obtaining surety bonds or letters of credit necessary to support our operations;
•an overall decline in the health of the economy or our industry, including as a result of high inflation or interest rates, instability in the global banking system, geopolitical conditions, unemployment rates, or changes in the labor market, political and social unrest, the possibility of an economic recession, or public health crises;
•the effect of various economic factors, including inflationary pressures, that may adversely impact our customers' spending and pricing for our services, and impede our collection of accounts receivable;
•uncertainties in the credit and financial markets, including the negative impacts of geopolitical conflicts, supply chain shortages and disruptions, variable interest rates, unemployment rates, labor shortages and inflationary cost pressures, among other factors, potentially limiting our access to capital;
•changes and instability in policies and regulations affecting international trade, including trade restrictions and tariffs;
•fluctuations in foreign currency exchange rates;
•significant increases in health care costs;
•our inability to properly verify the employment eligibility of our employees;
•the impact of corporate citizenship and environmental, social and governance matters and/or our reporting of such matters;
•the impact of events such as natural disasters, public health epidemics or pandemics, terrorist attacks or other external events;
- 52 -
Index
•the impact of tax increases and changes in tax rules;
•our ability to successfully implement our new enterprise resource planning system in a cost-effective and timely manner;
•limitations on our shareholders' ability to sell their common shares due to the lack of a public market for such shares; and
•our ability to continue to declare cash dividends.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this quarterly report on Form 10-Q to conform these statements to actual future results, except as required by applicable securities laws.
The factors described above, as well as other factors that may adversely impact our actual results, are discussed in "Part I - Item 1A. Risk Factors" of our 2025 Annual Report.
The Davey Tree Expert Company published this content on November 10, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 10, 2026 at 19:48 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]