DAVEY TREE EXPERT CO

CIK:0000277638|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Income Statement [Abstract]
Revenues	$ 518,933	$ 512,445	$ 954,708	$ 947,281
Costs and expenses:
Operating	326,991	321,321	621,868	617,253
Selling	87,871	85,603	170,138	166,956
General and administrative	40,561	39,036	89,760	79,636
Depreciation and amortization	23,106	19,333	44,362	37,901
Gain on sale of assets, net	(2,081)	(1,982)	(2,973)	(2,015)
Total costs and expenses	476,448	463,311	923,155	899,731
Income from operations	42,485	49,134	31,553	47,550
Other income (expense):
Interest expense	(8,480)	(4,980)	(13,073)	(9,362)
Interest income	2,054	756	2,404	1,308
Other	(2,165)	424	(4,337)	(1,292)
Income before income taxes	33,894	45,334	16,547	38,204
Income taxes	9,162	12,564	2,500	8,692
Net income	$ 24,732	$ 32,770	$ 14,047	$ 29,512
Net income per share:
Net income per share, basic	$ 0.64	$ 0.81	$ 0.36	$ 0.72
Net income per share, diluted	$ 0.62	$ 0.78	$ 0.35	$ 0.69
Weighted-average shares outstanding:
Weighted-average shares outstanding, basic	38,412,000	40,584,000	39,328,000	41,009,000
Weighted-average shares outstanding, diluted	39,611,000	42,224,000	40,474,000	42,586,000

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
Operating activities
Net income	$ 14,047	$ 29,512
Adjustments to reconcile net income to net cash provided by operating activities net of assets/liabilities acquired:
Depreciation and amortization	44,362	37,901
Other	887	(449)
Changes in operating assets and liabilities, net of assets acquired:
Accounts receivable	(33,951)	(26,160)
Accounts payable and accrued expenses	(12,958)	(3,210)
Self-insurance accruals	(6,188)	(2,845)
Prepaid expenses	20,945	20,139
Mitigation bank credit inventory	3,290	(1,977)
Income taxes receivable	1,806	(441)
Other, net	1,296	(9,118)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities, Total	19,489	13,840
Net cash provided by operating activities	33,536	43,352
Capital expenditures:
Equipment	(66,186)	(46,887)
Land and buildings	7,878	22,030
Purchases of businesses, net of cash acquired and debt incurred	(11,487)	0
Proceeds from sales of property and equipment	2,643	3,650
Purchases of marketable securities	(47,414)	(21,308)
Proceeds from sale of marketable securities	28,376	29,258
Net cash used in investing activities	(101,946)	(57,317)
Financing activities
Revolving credit facility borrowings	504,437	405,766
Revolving credit facility payments	(346,015)	(343,428)
Purchase of common shares for treasury	(56,894)	(50,017)
Sale of common shares from treasury	25,440	31,910
Dividends	(2,389)	(2,064)
Proceeds from notes payable	0	18,531
Payments of notes payable	(37,698)	(40,743)
Payments of finance leases	6,775	3,507
Net cash provided by financing activities	80,106	16,448
Effect of exchange rate changes on cash	(71)	197
Increase in cash	11,625	2,680
Cash, beginning of period	12,397	17,471
Cash, end of period	24,022	20,151
Supplemental cash flow information follows:
Interest paid	16,379	13,729
Income taxes paid	$ 690	$ 8,801

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 04, 2026	Dec. 31, 2025
Current assets:
Cash	$ 24,022	$ 12,397
Accounts receivable, net	418,644	385,470
Operating supplies	21,157	17,313
Other current assets	67,376	104,527
Total current assets	531,199	519,707
Property and equipment, net	527,375	471,200
Right-of-use assets - operating leases	56,797	66,445
Marketable securities and other investments	83,004	59,498
Loss Contingency, Receivable	217,862	254,447
Intangible assets, net	21,796	16,832
Goodwill	124,774	98,723
Total	11,896	9,948
Total assets	1,574,703	1,496,800
Current liabilities:
Accounts payable	61,926	66,565
Accrued expenses	78,962	87,871
Current portion of long-term debt and finance lease liabilities	88,781	121,064
Other current liabilities	106,800	114,096
Total current liabilities	336,469	389,596
Long-term debt, excluding current maturities	476,861	317,279
Lease liabilities - finance leases	44,396	28,299
Lease liabilities - operating leases	33,112	38,798
Self-insurance accruals	87,473	90,328
Estimated Litigation Liability, Noncurrent	217,862	254,447
Other noncurrent liabilities	43,085	21,453
Total liabilities	1,239,258	1,140,200
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP) 7,391 and 7,737 shares at redemption value as of July 4, 2026 and December 31, 2025	213,586	213,548
Common shareholders' equity:
Common shares, $.50 par value, per share; 96,000 shares authorized; 78,437 and 78,090 shares issued and outstanding before deducting treasury shares and which excludes 7,391 and 7,737 shares subject to redemption as of July 4, 2026 and December 31, 2025	39,219	39,045
Additional paid-in capital	275,192	257,130
Common shares subscribed, unissued	18,785	19,145
Retained earnings	379,195	377,145
Accumulated other comprehensive loss	(6,738)	(5,611)
Shareholders' equity before treasury stock	705,653	686,854
Less: Cost of common shares held in treasury; 47,045 shares at July 4, 2026 and 46,358 shares at December 31, 2025	574,542	533,924
Common shares subscription receivable	9,252	9,878
Total common shareholders' equity	121,859	143,052
Total liabilities and shareholders' equity	$ 1,574,703	$ 1,496,800
Common stock, par value per share	$ 0.50	$ 0.50
Common stock, shares authorized	96,000,000	96,000,000
Common stock, shares, issued	78,437,000	78,090,000
Common stock, shares, outstanding, before treasury shares	78,437,000	78,090,000
Shares subject to redemption	7,391,000	7,737,000
Treasury stock, shares	47,045,000	46,358,000