UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 2827, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission file number 000-11917

THE DAVEY TREE EXPERT COMPANY

(Exact name of registrant as specified in its charter)


Ohio									34-0176110
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification Number)

1500 North Mantua Street

P.O. Box 5193

Kent, OH 44240

(Address of principal executive offices) (Zip code)

(330) 673-9511

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☐

Accelerated Filer

☐

Emerging Growth Company

☐

Non-Accelerated Filer

☒

Smaller Reporting Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 4039,~~268~~445,~~504~~684 Common Shares, $.50 par value per share, outstanding as of ~~August~~October 131, 2025. The registrant's Common Shares are not traded on a public market.

Index

The Davey Tree Expert Company

Quarterly Report on Form 10-Q

~~June~~September 2827, 2025

INDEX

						Page
Part I.	Financial Information
Item 1.	Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets				2
		Condensed Consolidated Statements of Operations				3
		Condensed Consolidated Statements of Comprehensive Income (Loss)				4
		Condensed Consolidated Statements of Shareholders' Equity				5
		Condensed Consolidated Statements of Cash Flows				7
		Notes to Condensed Consolidated Financial Statements
			A	—	Basis of Financial Statement Preparation	8
			B	—	Seasonality of Business	910
			C	—	Accounts Receivable, Net and Supplemental Balance-Sheet Information	910
			D	—	Business Combinations	11
			E	—	Marketable Securities	1112
			F	—	Identified Intangible Assets and Goodwill, Net	1213
			G	—	Short and Long-Term Debt and Commitments Related to Letters of Credit	1315
			H	—	Leases	1718
			I	—	Stock-Based Compensation	1820
			J	—	Income Taxes	2122
			K	—	Accumulated Other Comprehensive Income (Loss)	2123
			L	—	Per Share Amounts and Common and Redeemable Shares Outstanding	2425
			M	—	Operations by Business Segment	2526
			N	—	Revenue Recognition	2829
			O	—	Fair Value Measurements and Financial Instruments	3031
			P	—	Commitments and Contingencies	3334
			Q	—	The Davey 401KSOP and Employee Stock Ownership Plan	3637
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations					3839
		Results of Operations				3940
		Liquidity and Capital Resources				4344
			Cash Flow Summary			4445
			Contractual Obligations Summary and Commercial Commitments			4546
			Capital Resources			4546
		Critical Accounting Policies and Estimates				4647
		Note Regarding Forward-Looking Statements				4647
Item 3.	Quantitative and Qualitative Disclosures about Market Risk					4748
Item 4.	Controls and Procedures					4748
Part II.	Other Information					4849
Item 1.	Legal Proceedings					4849
Item 1A.	Risk Factors					5152
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds					5253
Item 5.	Other Information					5354
Item 6.	Exhibits					5355
Exhibit Index						5455
Signatures						5556
“We,” “us,” “our,” the “Company,” “The Registrant,” “Davey” and “Davey Tree,” unless the context otherwise requires, means The Davey Tree Expert Company and its subsidiaries.

- 1 -

Index

THE DAVEY TREE EXPERT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except per share data dollar amounts)

	June 28,2025		December 31,2024
	September 27,2025		December 31,2024
Assets
Current assets:
Cash	$	2021,~~151~~871	$	17,471
Accounts receivable, net	~~424~~417,~~314~~406		397,077
Operating supplies	1917,~~736~~124		15,995
Other current assets	82106,~~014~~247		108,410
Total current assets	~~546~~562,~~215~~648		538,953
Property and equipment, net	~~441~~457,~~943~~650		400,661
Right-of-use assets - operating leases	7872,~~342~~875		90,516
Marketable securities and other investments	4152,~~957~~403		41,686
Insurance receivable	~~211~~213,~~958~~051		209,351
Other assets	13,216		13,204
Intangible assets, net	18,001		18,301
Intangible assets, net	15,695		18,301
Goodwill	97,761		94,879
Goodwill	95,015		94,879
Other assets	13,695		13,204
Total assets	$	1,~~444~~488,~~341~~084	$	1,407,551
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	$	5864,~~000~~567	$	57,560
Accrued expenses	9192,~~711~~668		96,860
Current portion of long-term debt and finance lease liabilities	56139,~~371~~325		73,448
Other current liabilities	8885,~~862~~587		94,613
Total current liabilities	~~294~~382,~~944~~147		322,481
Long-term debt	~~397~~329,~~695~~962		338,655
Lease liabilities - finance leases	1723,~~399~~738		12,221
Lease liabilities - operating leases	4642,~~408~~944		55,565
Self-insurance accruals	8690,~~002~~326		86,092
Litigation accruals	~~211~~213,~~958~~051		209,351
Other noncurrent liabilities	14,~~213~~102		14,046
Total liabilities	1,~~068~~096,~~619~~270		1,038,411
Commitments and contingencies (Note P)
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP) 7,959 and 8,114 shares at redemption value as of June 28, 2025 and December 31, 2024	202,957		195,551
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP) 7,987 and 8,114 shares at redemption value as of September 27, 2025 and December 31, 2024	203,658		195,551
Common shareholders' equity:
Common shares, $.50 par value, per share; 96,000 shares authorized; 77,868 and 77,713 shares issued and outstanding before deducting treasury shares and which excludes 7,959 and 8,114 shares subject to redemption as of June 28, 2025 and December 31, 2024	38,934		38,857
Common shares, $.50 par value, per share; 96,000 shares authorized; 77,841 and 77,713 shares issued and outstanding before deducting treasury shares and which excludes 7,987 and 8,114 shares subject to redemption as of September 27, 2025 and December 31, 2024	38,920		38,857
Additional paid-in capital	~~237~~240,~~176~~215		225,846
Common shares subscribed, unissued	2019,~~514~~848		21,100
Retained earnings	~~391~~412,~~829~~212		375,525
Accumulated other comprehensive loss	(5,~~505~~965)		(6,773)
	682,948		654,555
	705,230		654,555
Less: Cost of common shares held in treasury; 45,562 shares at June 28, 2025 and 45,353 shares at December 31, 2024	498,313		468,132
Less: Cost of common shares held in treasury; 45,766 shares at September 27, 2025 and 45,353 shares at December 31, 2024	506,495		468,132
Common shares subscription receivable	1110,~~870~~579		12,834
Total common shareholders' equity	~~172~~188,~~765~~156		173,589
Total liabilities and shareholders' equity	$	1,~~444~~488,~~341~~084	$	1,407,551
See notes to condensed consolidated financial statements (unaudited).

- 2 -

Index

THE DAVEY TREE EXPERT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share dollar amounts)

Three Months Ended

~~Six~~Nine Months Ended

June 28,2025

June 29,2024

June 28,2025

June 29,2024

September 27,2025

September 28,2024

September 27,2025

September 28,2024

Revenues

~~512~~500,~~445~~666

~~481~~479,~~654~~440

~~947~~1,~~281~~447,947

~~886~~1,~~463~~365,903

Costs and expenses:

Operating

321,~~321~~065

300,~~306~~535

~~617~~938,~~253~~318

~~581~~881,~~085~~620

Selling

8586,~~603~~813

8184,~~511~~319

~~166~~253,~~956~~769

~~151~~235,~~487~~806

General and administrative

3937,~~036~~309

3736,~~370~~956

79116,~~636~~945

75112,~~861~~817

Depreciation and amortization

19,~~333~~969

17,~~371~~860

3757,~~901~~870

3351,~~779~~639

Gain on sale of assets, net

(12,~~982~~008)

(1,~~382~~190)

(24,~~015~~023)

(23,~~461~~651)

Total costs and expenses

463,~~311~~148

~~435~~438,~~176~~480

~~899~~1,~~731~~362,879

~~839~~1,~~751~~278,231

Income from operations

4937,~~134~~518

4640,~~478~~960

4785,~~550~~068

4687,~~712~~672

Other income (expense):

Interest expense

(45,~~980~~066)

(5,~~222~~319)

(914,~~362~~428)

(914,~~289~~608)

Interest income

~~756~~568

~~998~~970

1,~~308~~876

12,~~524~~494

Other, net

~~424~~(2,041)

(21,~~169~~111)

(13,~~292~~333)

(34,~~533~~644)

Income before income taxes

4530,~~334~~979

4035,~~085~~500

3869,~~204~~183

3570,~~414~~914

Income taxes

129,~~564~~365

109,~~365~~476

818,~~692~~057

717,~~969~~445

Net income

3221,~~770~~614

2926,~~720~~024

2951,~~512~~126

2753,~~445~~469

Net income per share:

Basic

.8153

.7263

1.7224

1.6527

Diluted

.7852

.6860

1.6920

1.6321

Weighted-average shares outstanding:

Basic

40,~~584~~569

41,~~414~~629

41,~~009~~216

4142,~~922~~209

Diluted

4241,~~224~~893

43,~~388~~302

42,~~586~~719

4344,~~846~~059

See notes to condensed consolidated financial statements (unaudited).

- 3 -

Index

THE DAVEY TREE EXPERT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In thousands)

Three Months Ended

~~Six~~Nine Months Ended

June 28,2025

June 29,2024

June 28,2025

June 29,2024

September 27,2025

September 28,2024

September 27,2025

September 28,2024

Net income

3221,~~770~~614

2926,~~720~~024

2951,~~512~~126

2753,~~445~~469

Components of other comprehensive income (loss), net of tax:

Foreign currency translation adjustments gains (losses)

~~1,024~~(458)

~~(245)~~346

~~1,167~~709

(~~826~~480)

Unrealized gain (loss) on available-for-sale securities

16(2)

~~(29)~~344

~~101~~99

~~(165)~~179

Other comprehensive income (loss), net of tax

~~1,040~~(460)

~~(274)~~690

~~1,268~~808

(~~991~~301)

Comprehensive income

3321,~~810~~154

2926,~~446~~714

3051,~~780~~934

2653,~~454~~168

See notes to condensed consolidated financial statements (unaudited).

- 4 -

Index

THE DAVEY TREE EXPERT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

(In thousands, except per share data)

	CommonShares		AdditionalPaid-inCapital		CommonSharesSubscribed,Unissued		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss),Net of Tax		CommonSharesHeld inTreasury		CommonSharesSubscriptionReceivable		Total CommonShareholders'Equity
Balances at March 30, 2025	$	38,788	$	221,872	$	20,810	$	371,223	$	(6,545)	$	(471,443)	$	(12,394)	$	162,311
Net income	—		—		—		32,770		—		—		—		32,770
Change in 401KSOP and ESOP related shares	146		6,887		—		(11,143)		—		—		—		(4,110)
Shares sold to employees	—		9,649		—		—		—		9,077		—		18,726
Options exercised	—		1,009		—		—		—		5,060		—		6,069
Subscription shares	—		104		(296)		—		—		154		524		486
Stock-based compensation	—		(2,345)		—		—		—		—		—		(2,345)
Dividends, $.025 per share	—		—		—		(1,021)		—		—		—		(1,021)
Other comprehensive income	—		—		—		—		1,040		—		—		1,040
Shares purchased	—		—		—		—		—		(41,161)		—		(41,161)
Balances at June 28, 2025	$	38,934	$	237,176	$	20,514	$	391,829	$	(5,505)	$	(498,313)	$	(11,870)	$	172,765
Net income	—		—		—		21,614		—		—		—		21,614
Change in 401KSOP and ESOP related shares	(14)		(688)		—		—		—		—		—		(702)
Shares sold to employees	—		1,889		—		—		—		1,429		—		3,318
Options exercised	—		(173)		—		—		—		322		—		149
Subscription shares	—		345		(666)		—		—		529		1,291		1,499
Stock-based compensation	—		1,666		—		—		—		—		—		1,666
Dividends, $.025 per share	—		—		—		(1,231)		—		—		—		(1,231)
Other comprehensive loss	—		—		—		—		(460)		—		—		(460)
Shares purchased	—		—		—		—		—		(10,462)		—		(10,462)
Balances at September 27, 2025	$	38,920	$	240,215	$	19,848	$	412,212	$	(5,965)	$	(506,495)	$	(10,579)	$	188,156
Balances at January 1, 2025	$	38,857	$	225,846	$	21,100	$	375,525	$	(6,773)	$	(468,132)	$	(12,834)	$	173,589
Net income	—		—		—		2951,~~512~~126		—		—		—		2951,~~512~~126
Change in 401KSOP and ESOP related shares	7763		32,~~659~~971		—		(11,143)		—		—		—		(78,~~407~~109)
Shares sold to employees	—		1113,~~599~~488		—		—		—		1012,~~573~~002		—		2225,~~172~~490
Options exercised	—		(90263)		—		—		—		89,~~996~~318		—		89,~~906~~055
Subscription shares	—		~~189~~534		(~~586~~1,252)		—		—		~~267~~796		~~964~~2,255		~~834~~2,333
Stock-based compensation	—		(42,~~027~~361)		—		—		—		—		—		(42,~~027~~361)
Dividends, $.050 per share	—		—		—		(2,065)		—		—		—		(2,065)
Dividends, $.075 per share	—		—		—		(3,296)		—		—		—		(3,296)
Other comprehensive income	—		—		—		—		~~1,268~~808		—		—		~~1,268~~808
Shares purchased	—		—		—		—		—		(5060,~~017~~479)		—		(5060,~~017~~479)
Balances at June 28, 2025	$	38,934	$	237,176	$	20,514	$	391,829	$	(5,505)	$	(498,313)	$	(11,870)	$	172,765
Balances at September 27, 2025	$	38,920	$	240,215	$	19,848	$	412,212	$	(5,965)	$	(506,495)	$	(10,579)	$	188,156

- 5 -

Index

THE DAVEY TREE EXPERT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

(In thousands, except per share data)

	CommonShares		AdditionalPaid-inCapital		CommonSharesSubscribed,Unissued		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss),Net of Tax		CommonSharesHeld inTreasury		CommonSharesSubscriptionReceivable		Total CommonShareholders'Equity
Balances at March 31, 2024	$	39,161	$	195,482	$	22,796	$	327,091	$	(5,502)	$	(420,097)	$	(16,376)	$	142,555
Net income	—		—		—		29,720		—		—		—		29,720
Change in 401KSOP and ESOP related shares	(404)		7,763		—		(4,988)		—		—		—		2,371
Shares sold to employees	—		7,504		—		—		—		6,762		—		14,266
Options exercised	—		445		—		—		—		4,931		—		5,376
Subscription shares	—		125		(755)		—		—		149		824		343
Stock-based compensation	—		(513)		—		—		—		—		—		(513)
Dividends, $.025 per share	—		—		—		(1,044)		—		—		—		(1,044)
Other comprehensive loss	—		—		—		—		(274)		—		—		(274)
Shares purchased	—		—		—		—		—		(31,544)		—		(31,544)
Balances at June 29, 2024	$	38,757	$	210,806	$	22,041	$	350,779	$	(5,776)	$	(439,799)	$	(15,552)	$	161,256
Net income	—		—		—		26,024		—		—		—		26,024
Change in 401KSOP and ESOP related shares	(34)		(1,513)		—		—		—		—		—		(1,547)
Shares sold to employees	—		1,666		—		—		—		1,278		—		2,944
Options exercised	—		(16)		—		—		—		145		—		129
Subscription shares	—		285		(579)		—		—		340		2,149		2,195
Stock-based compensation	—		1,713		—		—		—		—		—		1,713
Dividends, $.025 per share	—		—		—		(1,052)		—		—		—		(1,052)
Other comprehensive income	—		—		—		—		690		—		—		690
Shares purchased	—		—		—		—		—		(8,923)		—		(8,923)
Balances at September 28, 2024	$	38,723	$	212,941	$	21,462	$	375,751	$	(5,086)	$	(446,959)	$	(13,403)	$	183,429
Balances at January 1, 2024	$	39,308	$	197,962	$	22,832	$	330,436	$	(4,785)	$	(416,616)	$	(16,663)	$	152,474
Net income	—		—		—		2753,~~445~~469		—		—		—		2753,~~445~~469
Change in 401KSOP and ESOP related shares	(~~551~~585)		43,~~673~~160		—		(4,988)		—		—		—		(~~866~~2,413)
Shares sold to employees	—		911,~~601~~267		—		—		—		89,~~330~~608		—		1720,~~931~~875
Options exercised	—		~~296~~280		—		—		—		8,~~397~~542		—		8,~~693~~822
Subscription shares	—		~~143~~428		(~~791~~1,370)		—		—		~~167~~507		13,~~111~~260		~~630~~2,825
Stock-based compensation	—		(~~1,869~~156)		—		—		—		—		—		(~~1,869~~156)
Dividends $.050 per share	—		—		—		(2,114)		—		—		—		(2,114)
Dividends, $.075 per share	—		—		—		(3,166)		—		—		—		(3,166)
Other comprehensive loss	—		—		—		—		(~~991~~301)		—		—		(~~991~~301)
Shares purchased	—		—		—		—		—		(4049,~~077~~000)		—		(4049,~~077~~000)
Balances at June 29, 2024	$	38,757	$	210,806	$	22,041	$	350,779	$	(5,776)	$	(439,799)	$	(15,552)	$	161,256
Balances at September 28, 2024	$	38,723	$	212,941	$	21,462	$	375,751	$	(5,086)	$	(446,959)	$	(13,403)	$	183,429
See notes to condensed consolidated financial statements (unaudited).

- 6 -

Index

,THE DAVEY TREE EXPERT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

Six Months Ended

Nine Months Ended

June 28,2025

June 29,2024

September 27,2025

September 28,2024

Operating activities

Net Income

2951,~~512~~126

2753,~~445~~469

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3757,~~901~~870

3351,~~779~~639

Other

~~(449)~~67

~~852~~2,644

Changes in operating assets and liabilities, net of assets acquired:

Accounts receivable

(2619,~~160~~747)

(1022,~~377~~538)

Accounts payable and accrued expenses

(31,~~210)~~379

(316,~~506)~~624

Self-insurance accruals

~~(2,845)~~157

710,~~486~~485

Prepaid expenses

20(8,~~139~~086)

21(1,~~719~~365)

Mitigation bank credit inventory

(~~1,977~~665)

~~907~~656

Income taxes receivable

(441)

—

Other, net

(7,629)

(1,783)

Other, net

(9,118)

(1,047)

23,346

56,362

13,840

49,813

Net cash provided by operating activities

74,472

109,831

Net cash provided by operating activities

43,352

77,258

Investing activities

Capital expenditures:

Equipment

(4664,~~887~~102)

(5481,~~694~~405)

Land and buildings

(2227,~~030~~536)

(1630,~~344~~963)

Purchases of businesses, net of cash acquired and debt incurred

—(6,077)

(1618,~~120~~705)

Proceeds from sales of property and equipment

36,~~650~~279

56,~~669~~709

Purchases of marketable securities

(2137,~~308~~283)

(1624,~~475~~033)

Proceeds from sale of marketable securities

2937,~~258~~925

1115,~~694~~989

Net cash used in investing activities

(5790,~~317~~794)

(86132,~~270~~408)

Financing activities

Revolving credit facility borrowings

~~405~~507,~~766~~213

~~399~~573,~~460~~696

Revolving credit facility payments

(~~343~~598,~~428~~114)

(~~346~~510,~~818~~746)

Purchase of common shares for treasury

(5060,~~017~~479)

(4049,~~077~~000)

Sale of common shares from treasury

3136,~~910~~875

2632,~~921~~190

Dividends paid

(23,~~064~~296)

(23,~~114~~166)

Proceeds from notes payable

18208,~~531~~333

3674,~~157~~816

Payments of notes payable

(4064,~~743~~147)

(5683,~~214~~571)

Payments of finance leases

(35,~~507~~803)

(25,~~924~~048)

Net cash provided by financing activities

1620,~~448~~582

1429,~~391~~171

Effect of exchange rate changes on cash

~~197~~140

(6141)

Increase in cash

24,~~680~~400

56,~~318~~553

Cash, beginning of period

17,471

11,070

Cash, end of period

2021,~~151~~871

1617,~~388~~623

Supplemental cash flow information follows:

Interest paid

1321,~~729~~545

1117,~~658~~631

Income taxes paid

815,~~801~~129

48,~~641~~793

See notes to condensed consolidated financial statements (unaudited).

- 7 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

A.Basis of Financial Statement Preparation

The consolidated financial statements present the financial position, results of operations and cash flows of The Davey Tree Expert Company and its subsidiaries. When we refer to “we,” “us,” “our,” the “Company,” “Davey,” or “Davey Tree”, we mean The Davey Tree Expert Company and its subsidiaries, unless otherwise expressly stated or the context indicates otherwise.

We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as codified in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The condensed consolidated financial statements include all adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal, recurring nature. All intercompany accounts and transactions have been eliminated in consolidation.

Certain information and disclosures required by U.S. GAAP for complete financial statements have been omitted in accordance with the rules and regulations of the SEC. We suggest that these condensed consolidated financial statements be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”).

Use of Estimates in Financial Statement Preparation--The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts. Our condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, long-lived asset and goodwill valuation, self-insurance accruals, income taxes, stock valuation and revenue recognition. Actual results could differ from those estimates.

Our mitigation banking business creates and sells wetland, stream and other environmental credits and provides services to those engaged in permittee-responsible mitigation and environmental restoration. We record mitigation bank credit inventory at the lower of cost or net realizable value. Inventory costs are based on estimated total costs for each mitigation bank, which could change as we perform mitigation banking activities.

The Company’s fiscal quarters each contain thirteen operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains fourteen operating weeks. The Company’s fiscal quarter that ended ~~June~~September 2827, 2025 is referred to as the ~~second~~third quarter of 2025, and the fiscal quarter ended ~~June~~September 2928, 2024 is referred to as the ~~second~~third quarter of 2024.

Recent Accounting Guidance

Accounting Standards not yet Adopted

Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures--In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new standard was issued to improve transparency and decision usefulness of income tax disclosures by providing information that helps investors better understand how an entity’s operations, tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this update primarily relate to requiring greater disaggregated disclosure of information in the rate reconciliation, income

- 8 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

taxes paid, income (loss) from continuing operations before income tax expense (benefit), and income tax expense (benefit) from continuing operations. The standard is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The standard can be applied prospectively or retrospectively. The Company will adopt this guidance prospectively for the period ending December 31, 2025, and it will impact only its disclosures, with no impacts to financial condition or results of operations.

Accounting Standards Update 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses--In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The new standard requires entities to disclose additional information about certain expenses, such as purchases of inventory, employee compensation, depreciation, intangible asset amortization, as well as selling expenses included in commonly presented expense captions on the income statement. The FASB further clarified the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Companies have the option to apply this guidance either on a retrospective or prospective basis, and early adoption is permitted. The company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements and related disclosures.

BAccounting Standards Update 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets--In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ~~Seasonality~~ ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity may elect to assume that the current conditions as of ~~Business~~the balance sheet date it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and for interim reporting periods within those annual fiscal years, with early adoption permitted. Entities that elect the practical expedient should apply the amendments prospectively. The company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements and related disclosures.

~~Due~~Accounting toStandards ~~the~~Update ~~seasonality~~2025-06, ofIntangibles ~~our~~– ~~business,~~Goodwill ~~our~~and ~~operating~~Other ~~results~~– ~~for~~Internal-Use Software (Subtopic 350-40): Targeted Improvements to the ~~three~~Accounting ~~and~~for ~~six~~Internal-Use ~~months~~Software--In ~~ended~~September ~~June 28~~2025, the FASB issued ASU 2025-06, ~~are~~Intangibles ~~not~~– ~~indicative~~Goodwill ofand ~~results~~Other ~~that~~– ~~may~~Internal-Use beSoftware ~~expected~~(Subtopic ~~for~~350-40): ~~any~~Targeted ~~other~~Improvements ~~interim~~to ~~period~~the orAccounting for ~~the~~Internal-Use ~~year~~Software ~~ending~~(“ASU ~~December 31,~~2025-06”). ASU 2025-06 amends the existing standard to remove all references to prescriptive and sequential software development project stages. ~~The~~Under ~~seasonality~~this ofguidance, ~~our~~eligible ~~business~~software ~~traditionally~~development ~~results~~costs inwill ~~higher~~begin ~~revenues~~capitalization ~~during~~when ~~the~~management ~~second~~has authorized and ~~third~~committed ~~quarters~~to asfunding ~~compared~~the ~~with~~software project, and it is probable that the ~~first~~project will be completed and ~~fourth~~the ~~quarters~~software ofwill be used to perform the ~~year~~function intended. In evaluating whether it is probable the project will be completed, ~~while~~management is required to consider whether there is significant uncertainty associated with the ~~methods~~development activities of ~~accounting~~the software. ASU 2025-06 is effective for ~~fixed~~fiscal ~~costs~~years beginning after December 15, ~~such~~2027, asand ~~depreciation~~for ~~expense~~interim reporting periods within those annual fiscal years, ~~amortization~~with early adoption permitted. The guidance may be applied on a prospective basis, ~~rent~~a ~~and~~modified ~~interest~~basis ~~expense~~for in-process projects, ~~are~~or ~~not~~a ~~significantly~~retrospective ~~impacted~~basis. byThe ~~business~~company ~~seasonality~~is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements and related disclosures.

C. Accounts Receivable, Net and Supplemental Balance-Sheet Information

Accounts receivable, net, consisted of the following:

Accounts receivable, net	June 28,2025		December 31,2024
Accounts receivable	$	306,333	$	286,796
Unbilled receivables (1)	125,191		116,491
	431,524		403,287
Less allowances for credit losses	7,210		6,210
Accounts receivable, net	$	424,314	$	397,077

(1) Unbilled receivables consist of work-in-process in accordance with the terms of contracts, primarily with utility services customers.

- 9 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

B. Seasonality of Business

Due to the seasonality of our business, our operating results for the three and nine months ended September 27, 2025 are not indicative of results that may be expected for any other interim period or for the year ending December 31, 2025. The seasonality of our business traditionally results in higher revenues during the second and third quarters as compared with the first and fourth quarters of the year, while the methods of accounting for fixed costs, such as depreciation expense, amortization, rent and interest expense, are not significantly impacted by business seasonality.

C. Accounts Receivable, Net and Supplemental Balance-Sheet Information

Accounts receivable, net, consisted of the following:


Accounts receivable, net	September 27, 2025		December 31, 2024
Accounts receivable	$	298,137	$	286,796
Unbilled receivables (1)	125,196		116,491
	423,333		403,287
Less allowances for credit losses	5,927		6,210
Accounts receivable, net	$	417,406	$	397,077

(1) Unbilled receivables consist of work-in-process in accordance with the terms of contracts, primarily with utility services customers.

The following items comprised the amounts included in the balance sheets:

Other current assets	~~June~~September 2827,2025		December 31,2024
Refundable income taxes	$	~~532~~542	$	91
Prepaid expenses	1947,~~479~~673		39,517
Mitigation bank credit inventory	3129,~~292~~980		29,315
Assets invested for self-insurance	2118,~~389~~620		29,212
Payroll taxes refundable	7,855		10,131
Other	1,~~467~~577		144
Total	$	82106,~~014~~247	$	108,410

Property and equipment, net	~~June~~September 2827,2025		December 31,2024
Land and land improvements	$	31,~~449~~404	$	30,041
Buildings and leasehold improvements	~~164~~169,~~425~~829		141,445
Equipment	~~771~~788,~~776~~034		741,098
	967,650		912,584
	989,267		912,584
Less accumulated depreciation	~~525~~531,~~707~~617		511,923
Total	$	~~441~~457,~~943~~650	$	400,661

Other assets, noncurrent	June 28,2025		December 31,2024
Investment--cost-method affiliate	$	1,406	$	1,406
Deferred income taxes	3,753		3,780
Cloud computing arrangements	274		191
Other	7,783		7,827
Total	$	13,216	$	13,204

Accrued expenses	June 28,2025		December 31,2024
Employee compensation	$	38,682	$	46,197
Accrued compensated absences	16,977		16,175
Self-insured medical claims	2,472		2,359
Income tax payable	4,227		3,948
Customer advances, deposits	3,658		1,449
Taxes, other than income	13,501		10,497
Other	12,194		16,235
Total	$	91,711	$	96,860

Other current liabilities	June 28,2025		December 31,2024
Notes payable	$	37	$	276
Current portion of:
Lease liability-operating leases	33,066		35,828
Self-insurance accruals	55,759		58,509
Total	$	88,862	$	94,613

- 10 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Other noncurrent liabilities	June 28,2025		December 31,2024
Other assets, noncurrent	September 27,2025		December 31,2024
Non-qualified retirement plans	$	5,390	$	6,060
Investment--cost-method affiliate	$	1,403	$	1,406
Other	8,823		7,986
Deferred income taxes	3,754		3,780
Total	$	14,213	$	14,046
Cloud computing arrangements	487		191
Other	8,051		7,827
Total	$	13,695	$	13,204


Accrued expenses	September 27, 2025		December 31, 2024
Employee compensation	$	43,495	$	46,197
Accrued compensated absences	16,762		16,175
Self-insured medical claims	1,242		2,359
Income tax payable	7,242		3,948
Customer advances, deposits	2,361		1,449
Taxes, other than income	11,807		10,497

Other	9,759		16,235
Total	$	92,668	$	96,860


Other current liabilities	September 27, 2025		December 31, 2024
Notes payable	$	—	$	276

Current portion of:
Lease liability-operating leases	31,154		35,828
Self-insurance accruals	54,433		58,509
Total	$	85,587	$	94,613


Other noncurrent liabilities	September 27, 2025		December 31, 2024
Non-qualified retirement plans	$	5,434	$	6,060


Other	8,668		7,986
Total	$	14,102	$	14,046

D. Business Combinations

WeOur ~~had no cash~~ investments in businesses were $6,840 and $28,116 during the first ~~six~~nine months of 2025. ~~During~~and the year ended December 31, 2024, ~~our~~respectively. ~~cash~~The ~~investments~~acquired inintangible ~~businesses~~assets ~~were~~consist ~~$18,865~~of ~~and debt issued~~tradenames, innon-competition ~~the~~agreements ~~form~~and ofcustomer ~~notes payable to the sellers, was $6,351~~relationships. The ~~measurement~~tradenames ~~period~~and ~~for~~customer ~~purchase~~relationships ~~price~~were ~~allocations~~assigned ~~ends~~an asaverage ~~soon~~useful aslife ~~information~~ of ~~the~~seven ~~facts~~years and ~~circumstances~~the ~~becomes~~non-competition ~~available,~~agreements ~~but~~were ~~does~~assigned ~~not~~an ~~exceed~~average ~~one~~useful ~~year~~life ~~from~~of ~~the~~five ~~acquisition date~~years. ~~Results~~The ofpreliminary ~~operations~~breakout of ~~acquired~~the ~~business~~assets ~~are~~acquired, ~~included~~liabilities inassumed ~~the~~and ~~condensed~~debt ~~consolidated~~issued ~~statements~~related ofto ~~operations~~these ~~beginning~~investments asis ofincluded in the ~~effective~~table ~~dates of acquisition~~below.

~~Subsequent~~The tomeasurement ~~June 28,~~period ~~2025~~for ~~and~~purchase ~~through~~price ~~August 5,~~allocations ~~2025,~~ends weas ~~acquired~~soon aas ~~business~~information ~~for~~of ~~approximately~~the ~~$6,840~~facts ~~with~~and ~~debt~~circumstances ~~issued~~becomes ofavailable, ~~$675~~but ~~and~~does nonot ~~liabilities~~exceed ~~assumed.~~one ~~The~~year ~~acquired~~from ~~company~~the isacquisition indate. ~~our~~Results ~~Residential~~of ~~and~~operations ~~Commercial~~of ~~segment~~acquired ~~and~~business isare ~~located~~included in ~~Pennsylvania.~~the Wecondensed doconsolidated ~~not~~statements ~~expect the effect~~ of ~~this~~operations ~~acquisition~~beginning onas ~~our~~of ~~consolidated~~the ~~revenues~~effective ~~and~~dates ~~results~~ of ~~operations to be significant~~acquisition.

- 11 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 27, 2025

(Amounts in thousands, except share data)

Subsequent to September 27, 2025 and through November 3, 2025, we acquired a business for approximately $1,615 with no liabilities assumed and debt issued, in the form of notes payable to the sellers, of $425. The acquired company is in our Residential and Commercial segment and is located in South Carolina. We do not expect the effect of this acquisition on our consolidated revenues and results of operations to be significant.

The following table summarizes the preliminary purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed:


	Nine Months Ended September 27, 2025		Year Ended December 31, 2024
Detail of acquisitions:
Assets acquired:
Cash	$	—	$	278
Accounts Receivable	—		1,458

Operating supplies	28		735

Equipment	513		9,867

Intangible assets	3,500		3,563
Goodwill	2,799		10,893
Other assets	—		1,322

Liabilities assumed	(88)		(2,900)
Debt issued for purchases of businesses	(675)		(6,351)
Cash paid	$	6,077	$	18,865

E. Marketable Securities

The following table summarizes available-for-sale debt securities held at ~~June~~September 2827, 2025 and December 31, 2024 by asset type:

	Available-For-Sale Debt Securities
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(Net Carrying Amount)
June 28, 2025
September 27, 2025
Fixed maturity:
United States Government and agency securities	$	38,~~700~~103	$	~~761~~806	$	(4979)	$	3938,~~412~~830
Total available-for-sale debt securities	$	38,~~700~~103	$	~~761~~806	$	(4979)	$	3938,~~412~~830
December 31, 2024
Fixed maturity:
United States Government and agency securities	$	45,701	$	565	$	(86)	$	46,180
Total available-for-sale debt securities	$	45,701	$	565	$	(86)	$	46,180

Marketable securities are composed of available-for-sale debt securities and marketable equity securities and all marketable securities are held at fair value. We carry a portion of our marketable securities portfolio in long-term assets because they are generally held for the settlement of our insurance claims processed through our wholly owned captive insurance subsidiary.

~~Available~~-~~for-sale~~ ~~debt~~12 securities are included in other current assets and marketable securities and other investments totaling $39,412 and $46,180 at June 28, 2025 and December 31, 2024, respectively. Realized gains and losses on sales of available-for-sale debt securities are recognized in net income on the specific identification basis. Changes in the fair values of available-for-sale debt securities that are determined to be holding gains or losses are recorded through accumulated other comprehensive income (loss) net of applicable taxes,

- 11 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Available-for-sale debt securities are included in other current assets and marketable securities and other investments totaling $38,830 and $46,180 at September 27, 2025 and December 31, 2024, respectively. Realized gains and losses on sales of available-for-sale debt securities are recognized in net income on the specific identification basis. Changes in the fair values of available-for-sale debt securities that are determined to be holding gains or losses are recorded through accumulated other comprehensive income (loss) net of applicable taxes, within shareholders' equity. In assessing whether a credit loss exists, we evaluate our ability to hold the investment, the strength of the underlying collateral and the extent to which the investment's amortized cost or cost, as appropriate, exceeds its related fair value.

We held $2029,~~934~~443 and $21,218 in marketable equity securities as of ~~June~~September 2827, 2025 and December 31, 2024, respectively. Realized and unrealized gains and losses on marketable equity securities are included in other income (expense) in the Consolidated Statements of Operations.

The net carrying values of available-for-sale debt securities at ~~June~~September 2827, 2025 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

Amortized Cost

Fair Value

Due:

Less than one year

1815,~~232~~621

1815,~~379~~871

One year through five years

2022,~~468~~482

2122,~~033~~959

Six years through ten years

—

After ten years

—

Total

38,~~700~~103

3938,~~412~~830

F. Identified Intangible Assets and Goodwill, Net

The carrying amounts of the identified intangible assets and goodwill acquired in connection with our acquisitions were as follows:

	June 28, 2025				December 31, 2024
	September 27, 2025				December 31, 2024
	Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists/relationships	$	4346,~~729~~636	$	34,~~027~~710	$	43,713	$	32,452
Employment-related	1314,~~882~~100		11,~~648~~903		13,880		11,127
Tradenames	13,~~471~~838		9,~~712~~960		13,465		9,178
Amortized intangible assets	7174,~~082~~574		$	5556,~~387~~573	71,058		$	52,757
Less accumulated amortization	5556,~~387~~573				52,757
Identified intangible assets, net	$	1518,~~695~~001			$	18,301
Goodwill	$	9597,~~015~~761			$	94,879

- 1213 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

The changes in the carrying amounts of goodwill, by segment, for the ~~six~~nine months ended ~~June~~September 2827, 2025 and the year ended December 31, 2024 were as follows:

	Balance atJanuary 1, 2025		Acquisitions		Translationand OtherAdjustments		Balance ~~atJune~~atSeptember 2827, 2025
Utility	$	4,941	$	—	$	—	$	4,941
Residential and Commercial	89,938		—2,799		~~136~~83		9092,~~074~~820
Total	$	94,879	$	—2,799	$	~~136~~83	$	9597,~~015~~761
	Balance atJanuary 1, 2024		Acquisitions		Translationand OtherAdjustments		Balance atDecember 31, 2024
Utility	$	4,941	$	—	$	—	$	4,941
Residential and Commercial	79,859		10,893		(814)		89,938
Total	$	84,800	$	10,893	$	(814)	$	94,879

Estimated future aggregate amortization expense of intangible assets--The estimated future aggregate amortization expense of intangible assets, as of ~~June~~September 2827, 2025, was as follows:

	Estimated FutureAmortization Expense
Remaining six months of 2025	$	2,280
Remaining three months of 2025	$	1,265
2026	4,~~068~~578
2027	3,~~483~~994
2028	23,~~687~~198
2029	2,~~163~~674
2030	~~809~~1,306
Thereafter	~~205~~986
	$	1518,~~695~~001

~~G. Short and Long~~-~~Term~~ ~~Debt~~14 ~~and Commitments Related to Letters of Credit~~-

We have short-term lines of credit with several banks totaling $11,098. At June 28, 2025, we had $10,722 available under the lines of credit with $37 borrowings outstanding and $339 committed through issued letters of credit. Borrowings outstanding generally bear interest at the bank’s prime rate or Secured Overnight Financing Rate (“SOFR”) plus a margin adjustment of 1.86%.

- 13 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

~~Our~~G. Short ~~long~~and Long-~~term~~Term ~~debt~~Debt ~~consisted~~and ofCommitments ~~the~~Related ~~following:~~to Letters of Credit

	June 28,2025		December 31,2024
Revolving credit facility:
Swing-line borrowings	$	11,232	$	13,873
SOFR borrowings	265,000		200,000
	276,232		213,873
Senior unsecured notes:
3.99% Senior unsecured notes	40,000		40,000
4.00% Senior unsecured notes	20,000		20,000
6.19% Senior unsecured notes	75,000		75,000
	135,000		135,000
Term loans	37,100		59,063
	448,332		407,936
Less debt issuance costs	1,169		1,290
Less current portion	49,468		67,991
	$	397,695	$	338,655

We have short-term lines of credit with several banks totaling $11,076. At September 27, 2025, we had $10,744 available under the lines of credit and $332 committed through issued letters of credit. Borrowings outstanding generally bear interest at the bank’s prime rate or Secured Overnight Financing Rate (“SOFR”) plus a margin adjustment of 1.86%. Our long-term debt consisted of the following:

Revolving Credit Facility--In July 2024, the Company amended and restated its revolving credit facility with its existing bank group. The amended and restated credit agreement, which expires in July 2029, permits borrowings, as defined, of up to $400,000, including a combined term loan and letter of credit sublimit of $150,000 and a swing-line commitment of $50,000. Under certain circumstances, the Company may increase the revolving credit commitments and/or establish new incremental term loan commitments in an aggregate amount of up to $150,000. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio (not to exceed 3.25 to 1.00 with exceptions in case of material acquisitions) and a minimum interest coverage ratio (not less than 3.00 to 1.00), in each case subject to certain further restrictions as described in the credit agreement. The revolving credit facility allows for an adjustment to earnings before interest, taxes, depreciation and amortization of up to $55,000 for four quarters in the event certain legal claims are settled. As of June 28, 2025, we had unused commitments under the facility approximating $121,393, with $278,607 committed, consisting of borrowings of $276,232 and issued letters of credit of $2,375. In May 2025, the Company further amended its revolving credit facility with its existing bank group to, among other things, allow for certain intercompany advances among the Company and its subsidiaries.


	September 27, 2025		December 31, 2024
Revolving credit facility:
Swing-line borrowings	$	2,993	$	13,873

SOFR borrowings	120,000		200,000
	122,993		213,873
Senior unsecured notes:

3.99% Senior unsecured notes	30,000		40,000
4.00% Senior unsecured notes	15,000		20,000
6.19% Senior unsecured notes	75,000		75,000
5.19% Senior unsecured notes	100,000		—
	220,000		135,000
Term loans	119,228		59,063
	462,221		407,936
Less debt issuance costs	1,120		1,290
Less current portion	131,139		67,991
	$	329,962	$	338,655

Revolving Credit Facility--In July 2024, the Company amended and restated its revolving credit facility with its existing bank group. The amended and restated credit agreement, which expires in July 2029, permits borrowings, as defined, of up to $400,000, including a combined term loan and letter of credit sublimit of $150,000 and a swing-line commitment of $50,000. Under certain circumstances, the Company may increase the revolving credit commitments and/or establish new incremental term loan commitments in an aggregate amount of up to $150,000. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio (not to exceed 3.25 to 1.00 with exceptions in case of material acquisitions) and a minimum interest coverage ratio (not less than 3.00 to 1.00), in each case subject to certain further restrictions as described in the credit agreement. The revolving credit facility allows for an adjustment to earnings before interest, taxes, depreciation and amortization of up to $55,000 for four quarters in the event certain legal claims are settled. In May 2025, the Company further amended its revolving credit facility with its existing bank group to, among other things, allow for certain intercompany advances among the Company and its subsidiaries. As of September 27, 2025, we had unused commitments under the facility approximating $274,632, with $125,368 committed, consisting of borrowings of $122,993 and issued letters of credit of $2,375.

Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) the base rate or (b) SOFR plus a margin adjustment ranging from .875% to 1.50%--with the margin adjustments based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) Adjusted Term SOFR plus 1.50%, or (iii) the federal funds rate plus .50%. A commitment fee ranging from .10% to .225% is also required based on the average daily unborrowed commitment.

~~3.99% Senior Unsecured Notes~~-~~-On~~ ~~September~~15 ~~21, 2018, we issued 3.99% Senior Notes, Series A (the “3.99% Senior Notes”), in the aggregate principal amount of $50,000. The 3.99% Senior Notes are due September 21, 2028.~~ -

- 14 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

~~promissory~~3.99% ~~notes~~Senior toUnsecured beNotes--On ~~issued~~September ~~and~~21, ~~sold~~2018, ~~pursuant~~we toissued ~~the Note Purchase and Shelf Agreement to August 2027~~3.99% ~~The~~Senior ~~amendment~~Notes, ~~also~~Series ~~amended~~A ~~certain provisions and covenants to generally conform them to~~ (the ~~corresponding provisions and covenants in the amended and restated revolving credit agreement~~“3.99% InSenior ~~addition~~Notes”), ~~the amendment and restatement of the revolving credit agreement~~ in ~~August 2024 provided that~~ the ~~Company is permitted to incur indebtedness arising under the Note Purchase and Shelf Agreement in an~~ aggregate principal amount ~~not~~of ~~to exceed~~ $~~250~~50,000. AsThe the Company has previously issued notes with an aggregate amount outstanding of $135,000 under the Note Purchase and Shelf Agreement, as of June 28, 2025, it has the capacity to issue subsequent series of promissory notes pursuant to the Note Purchase and Shelf Agreement in the amount of $115,0003.99% InSenior ~~May~~Notes ~~2025,~~are ~~the~~due ~~Company~~September ~~further amended its Note Purchase and Shelf Agreement with its existing purchasers to~~21, ~~among other things, allow for certain intercompany advances among the Company and its subsidiaries~~2028.

The 3.99% Senior Notes were issued pursuant to a Note Purchase and Private Shelf Agreement (the “Note Purchase and Shelf Agreement”) between the Company, PGIM, Inc. and the purchasers of the 3.99% Senior Notes, which was amended in August 2024. Among other things, the amendment increased the total facility limit to $250,000 and extended the issuance period for subsequent series of promissory notes to be issued and sold pursuant to the Note Purchase and Shelf Agreement to August 2027. The amendment also amended certain provisions and covenants to generally conform them to the corresponding provisions and covenants in the amended and restated revolving credit agreement. In addition, the amendment and restatement of the revolving credit agreement in August 2024 provided that the Company is permitted to incur indebtedness arising under the Note Purchase and Shelf Agreement in an aggregate principal amount not to exceed $250,000. In May 2025, the Company further amended its Note Purchase and Shelf Agreement with its existing purchasers to, among other things, allow for certain intercompany advances among the Company and its subsidiaries. As the Company has previously issued notes with an aggregate amount outstanding of $220,000 under the Note Purchase and Shelf Agreement, as of September 27, 2025, it has the capacity to issue subsequent series of promissory notes pursuant to the Note Purchase and Shelf Agreement in the amount of $30,000.

The 3.99% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on September 21, 2024 (the sixth anniversary of issuance). The Note Purchase and Shelf Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios. The Company may prepay at any time all, or from time to time any part of, the outstanding principal amount of the 3.99% Senior Notes, subject to the payment of a make-whole amount.

4.00% Senior Unsecured Notes--On February 5, 2019, we issued 4.00% Senior Notes, Series B (the “4.00% Senior Notes”) pursuant to the Note Purchase and Shelf Agreement in the aggregate principal amount of $25,000. The 4.00% Senior Notes are due September 21, 2028. The 4.00% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on September 21, 2024.

6.19% Senior Unsecured Notes--On November 28, 2023, we issued 6.19% Senior Notes, Series C (the “6.19% Senior Notes”) pursuant to the Note Purchase and Shelf Agreement in the aggregate principal amount of $75,000. The 6.19% Senior Notes are due November 28, 2028. The 6.19% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable quarterly and three annual principal payments commence on November 28, 2026.

~~The~~5.19% ~~net~~Senior ~~proceeds~~Unsecured ofNotes--On ~~all~~September ~~senior~~22, ~~notes~~2025, ~~were~~we ~~used~~issued 5.19% Senior Notes, Series D (the “5.19% Senior Notes”) pursuant to ~~pay~~the ~~down~~Note ~~borrowings~~Purchase ~~under~~and Shelf Agreement in the aggregate principal amount of $100,000. The 5.19% Senior Notes are due September 22, 2030. The 5.19% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable quarterly in arrears, beginning December 22, 2025, with the principal due in full on September 22, 2030.

~~Term~~The ~~loans--Periodically,~~net ~~the~~proceeds ~~Company~~of ~~will~~all ~~enter~~senior ~~into~~notes ~~term~~were ~~loans~~used ~~for~~to ~~the~~pay ~~procurement~~down ofborrowings ~~insurance~~under orour torevolving ~~finance~~credit ~~acquisitions~~facility and for general corporate purposes.

~~Aggregate Maturities of Long~~-~~Term~~ ~~Debt--Aggregate~~16 ~~maturities of long~~-~~term debt for the five years subsequent to June 28, 2025 were as follows:~~

	Amount
Remaining six months of 2025	$	46,017
2026	34,121
2027	46,962
2028	45,000
2029	276,232
	$	448,332

- 15 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

~~Accounts~~Term ~~Receivable Securitization Facility~~loans--~~In July 2024~~Periodically, the Company ~~amended~~will ~~its~~enter ~~Accounts~~into ~~Receivable~~term ~~Securitization~~loans ~~Facility~~for ~~(as amended,~~ the ~~“AR~~procurement ~~Securitization program”) to extend the scheduled termination date for an additional period~~ of ~~one~~insurance ~~year,~~or to ~~July~~finance ~~20, 2025~~acquisitions. InThis ~~addition~~balance toalso ~~extending~~includes ~~the~~loans ~~termination~~issued ~~date~~under ~~for another year,~~ the ~~amendment~~Company’s ~~increased~~Accounts ~~the~~Receivable ~~limit of the AR~~ Securitization ~~program~~Facility, toof which $~~125~~75,000 and ~~provided that the lender may issue loans~~$25,000 inwere ~~addition~~outstanding toas ~~letters~~ of ~~credit~~September 27, ~~under~~2025 ~~the~~and ARDecember 31, ~~Securitization~~2024, ~~program~~respectively.

~~The~~Aggregate ARMaturities ~~Securitization~~of ~~program~~Long-Term ~~has~~Debt--Aggregate amaturities ~~limit~~ of ~~$125,000,~~long-term ofdebt ~~which $97,104 was issued~~ for ~~letters of credit (“LCs”) and loans were issued in~~ the ~~amount~~five ofyears ~~$25,000~~subsequent asto ~~of both June~~September 2827, 2025 ~~and~~were ~~December 31,~~as ~~2024.~~follows:

Under the AR Securitization program, Davey Tree transfers by selling or contributing current and future trade receivables to a wholly-owned, bankruptcy-remote financing subsidiary which pledges a perfected first priority security interest in the trade receivables--equal to the issued LCs as of June 28, 2025--to the bank in exchange for the bank issuing LCs.


	Amount
Remaining three months of 2025	$	86,974
2026	59,627
2027	47,289
2028	45,338
2029	122,993
2030	100,000

	$	462,221

Accounts Receivable Securitization Facility--In July 2025, the Company amended its Accounts Receivable Securitization Facility (as amended, the “AR Securitization program”) to, among other things, extend the scheduled termination date for an additional one-year period, to July 17, 2026, and increase the AR Securitization facility limit to $175,000. In addition, certain subsidiaries of the Company entered into a joinder agreement, pursuant to which such subsidiaries agreed to serve as originators of receivables under the AR Securitization program. The lender may also issue loans, in addition to letters of credit, under the AR Securitization program

The AR Securitization program has a limit of $175,000, of which $99,071 and $97,104 were issued for letters of credit (“LCs”) as of September 27, 2025 and December 31, 2024 respectively, and loans were issued in the amounts of $75,000 and $25,000 as of September 27, 2025 and December 31, 2024, respectively.

Under the AR Securitization program, Davey Tree transfers by selling or contributing current and future trade receivables to a wholly-owned, bankruptcy-remote financing subsidiary which pledges a perfected first priority security interest in the trade receivables--equal to the issued LCs as of September 27, 2025--to the bank in exchange for the bank issuing LCs.

Fees payable to the bank include: (a) an LC issuance fee, payable on each settlement date, in the amount of .90% per annum on the aggregate amount of all LCs outstanding plus outstanding reimbursement obligations (e.g., arising from drawn LCs), if any, and (b) an unused LC fee, payable monthly, equal to (i) .35% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is greater than or equal to 50% of the facility limit and (ii) .45% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is less than 50% of the facility limit. If an LC is drawn and the bank is not immediately reimbursed in full for the drawn amount, any outstanding reimbursement obligation will accrue interest at a per annum rate equal to the term SOFR, plus .10% or, in certain circumstances, a base rate equal to the greatest of (i) the bank’s prime rate, (ii) the federal funds rate plus .50% and (iii) 1.00% above the daily one-month SOFR plus .10% and, following any default, 2.00% plus the greater of (a) the term SOFR plus .10% and (b) a base rate equal to the greatest of (i), (ii) and (iii) above.

The agreements underlying the AR Securitization program contain various customary representations and warranties, covenants, and default provisions which provide for the termination and acceleration of the commitments under the AR Securitization program in circumstances including, but not limited to, failure to make payments when due, breach of a representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness.

~~In July 2025, the Company amended its AR Securitization program to, among other things, extend the scheduled termination date for an additional one~~-~~year~~ ~~period, to July~~ 17, 2026, and increased the AR Securitization facility limit to $175,000. In addition, certain subsidiaries of the Company entered into a joinder agreement, pursuant to which such subsidiaries agreed to serve as originators of receivables under the AR Securitization program.-

Total Commitments Related to Issued Letters of Credit--As of June 28, 2025, total commitments related to issued LCs were $99,818, of which $2,375 were issued under the revolving credit facility, $97,104 were issued under the AR Securitization program, and $339 were issued under short-term lines of credit. As of December 31, 2024, total commitments related to issued LCs were $100,050, of which $2,624 were issued under the revolving credit facility, $97,104 were issued under the AR Securitization program, and $322 were issued under short-term lines of credit.

As of June 28, 2025, we were in compliance with all debt covenants.

- 16 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

circumstances including, but not limited to, failure to make payments when due, breach of a representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness.

Total Commitments Related to Issued Letters of Credit--As of September 27, 2025, total commitments related to issued LCs were $101,778, of which $2,375 were issued under the revolving credit facility, $99,071 were issued under the AR Securitization program, and $332 were issued under short-term lines of credit. As of December 31, 2024, total commitments related to issued LCs were $100,050, of which $2,624 were issued under the revolving credit facility, $97,104 were issued under the AR Securitization program, and $322 were issued under short-term lines of credit.

As of September 27, 2025, we were in compliance with all debt covenants.

H. Leases

We lease certain office and parking facilities, warehouse space, equipment, vehicles and information technology equipment under operating and finance leases. Lease expense for these leases is recognized within the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:

Condensed Consolidated Balance SheetClassification

~~June~~September 2827,2025

December 31,2024

Assets

Operating lease assets

Right-of-use assets - operating leases

7872,~~342~~875

90,516

Finance lease assets

Property and equipment, net

2331,~~921~~437

17,567

Total lease assets

~~102~~104,~~263~~312

108,083

Liabilities

Current operating lease liabilities

Other current liabilities

3331,~~066~~154

35,828

Non-current operating lease liabilities

Lease liabilities - operating leases

4642,~~408~~944

55,565

Total operating lease liabilities

7974,~~474~~098

91,393

Current portion of finance lease liabilities

Current portion of long-term debt and finance lease liabilities

68,~~903~~186

5,457

Non-current finance lease liabilities

Lease liabilities - finance leases

1723,~~399~~738

12,221

Total finance lease liabilities

2431,~~302~~924

17,678

Total lease liabilities

~~103~~106,~~776~~022

109,071

~~The~~- ~~components~~18 ~~of lease cost recognized within our Condensed Consolidated Statements of Operations were as follows:~~-

		Three Months Ended				Six Months Ended
	Condensed Consolidated Statementsof Operations Classification	June 28,2025		June 29,2024		June 28,2025		June 29,2024
Operating lease cost	Operating expense	$	6,780	$	11,057	$	14,015	$	16,991
Operating lease cost	Selling expense	2,818		2,627		5,618		5,275
Operating lease cost	General and administrative expense	267		277		545		538
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	1,846		1,517		3,437		2,936
Interest expense on lease liabilities	Interest expense	260		212		461		412
Other lease cost (1)	Operating expense	3,309		2,028		6,412		3,971
Other lease cost (1)	Selling expense	496		400		1,041		775
Other lease cost (1)	General and administrative expense	8		72		21		30
Total lease cost		$	15,784	$	18,190	$	31,550	$	30,928

(1) Other lease cost includes short-term lease costs and variable lease costs.

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on

- 17 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

~~the~~The ~~basis~~components of ~~economic~~lease ~~factors.~~cost ~~The~~recognized ~~weighted~~within ~~average~~our ~~remaining~~Condensed ~~lease~~Consolidated ~~terms~~Statements as of ~~June 28,~~Operations ~~2025~~were ~~was~~as ~~3.2 years for operating leases and 4.3 years for finance leases.~~follows:

The discount rate implicit within our leases is generally not determinable, and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The weighted average discount rates used to measure our lease liabilities as of June 28, 2025 were 4.25% for operating leases and 5.06% for finance leases.


		Three Months Ended				Nine Months Ended
	Condensed Consolidated Statements of Operations Classification	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Operating lease cost	Operating expense	$	6,463	$	7,998	$	20,478	$	24,989
Operating lease cost	Selling expense	2,855		2,686		8,473		7,961
Operating lease cost	General and administrative expense	263		262		808		800
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	2,206		1,584		5,643		4,520
Interest expense on lease liabilities	Interest expense	359		214		820		626
Other lease cost (1)	Operating expense	3,375		2,404		9,787		6,375
Other lease cost (1)	Selling expense	351		548		1,392		1,323
Other lease cost (1)	General and administrative expense	10		6		31		36
Total lease cost		$	15,882	$	15,702	$	47,432	$	46,630

Supplemental Cash Flow Information Related to Leases	Six Months Ended
	June 28,2025		June 29,2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(21,318)	$	(23,713)
Operating cash flows from finance leases	(461)		(413)
Financing cash flows from finance leases	(3,507)		(2,924)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	7,849		18,407
Finance leases	10,155		5,251

(1) Other lease cost includes short-term lease costs and variable lease costs.

Maturity Analysis of Lease Liabilities		As of June 28, 2025
		OperatingLeases		Finance Leases
	Remaining six months of 2025	$	19,534	$	4,059
	2026	29,268		7,460
	2027	17,802		5,419
	2028	9,250		4,324
	2029	4,718		2,668
	2030	1,528		1,911
	Thereafter	2,895		1,181
	Total lease payments	84,995		27,022
	Less interest	5,521		2,720
	Total	$	79,474	$	24,302

IThe discount rate implicit within our leases is generally not determinable, and therefore the Company determines the discount rate based on its incremental borrowing rate. ~~Stock-Based~~ ~~Compensation~~The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The weighted average discount rates used to measure our lease liabilities as of September 27, 2025 were 4.23% for operating leases and 5.15% for finance leases.

Our shareholders approved the 2024 Omnibus Stock Plan (the “2024 Stock Plan”) at our annual meeting of shareholders on May 21, 2024. The 2024 Stock Plan replaced the expired 2014 Omnibus Stock Plan (the “2014 plan”) previously approved by the shareholders in 2014. The 2024 Stock Plan is administered by the Compensation Committee of the Board of Directors and has a term of ten years. All directors of the Company and employees of the Company and its subsidiaries are eligible to participate in the 2024 Stock Plan. The 2024 Stock Plan continues the maintenance of the Employee Stock Purchase Plan, as well as provisions for the grant of stock options and other stock-based incentives. The 2024 Stock Plan provides for the grant of five percent of the number of the Company’s common shares outstanding as of the first day of each fiscal year plus the number of common shares that were available for grant of awards, but not granted, in prior years. In no event, however, may the number of common shares available for the grant of awards in any fiscal year exceed ten percent of the


Supplemental Cash Flow Information Related to Leases	Nine Months Ended
	September 27, 2025		September 28, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(31,505)	$	(35,391)
Operating cash flows from finance leases	(820)		(626)
Financing cash flows from finance leases	(5,803)		(5,048)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	12,474		22,699
Finance leases	20,050		5,381

- 1819 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

common shares outstanding as of the first day of that fiscal year. Common shares subject to an award that is forfeited, terminated, or canceled without having been exercised are generally added back to the number of shares available for grant under the 2024 Stock Plan.


Maturity Analysis of Lease Liabilities	As of September 27, 2025
	Operating Leases		Finance Leases
Remaining three months of 2025	$	9,737	$	2,478
2026	30,249		9,342
2027	18,682		7,319
2028	10,074		6,242
2029	5,324		4,368
2030	1,986		3,169
Thereafter	3,149		2,954
Total lease payments	79,201		35,872
Less interest	5,103		3,948
Total	$	74,098	$	31,924

I. Stock-Based Compensation

Stock-based compensation expense under all share-based payment plans -- our Employee Stock Purchase Plan, stock option plans, and restricted stock units (“RSUs”) -- was included in the results of operations as follows:

Three Months Ended

~~Six~~Nine Months Ended

June 28,2025

June 29,2024

June 28,2025

June 29,2024

September 27,2025

September 28,2024

September 27,2025

September 28,2024

Compensation expense, all share-based payment plans

21,~~077~~736

31,~~220~~741

46,~~429~~165

56,~~127~~868

Stock-based compensation consisted of the following:

Employee Stock Purchase Plan--Under the Employee Stock Purchase Plan, all full-time employees with six months of service are eligible to purchase, through payroll deduction, common shares. Employee purchases under the Employee Stock Purchase Plan are at 85% of the fair market value of the common shares--a 15% discount. Compensation costs are recognized as payroll deductions are made. The 15% discount of total shares purchased under the plan resulted in compensation cost of $1,~~184~~688 being recognized for the ~~six~~nine months ended ~~June~~September 2827, 2025 and $1,~~015~~580 for the ~~six~~nine months ended ~~June~~September 2928, 2024.

~~Stock Options Plan~~-~~-The~~ ~~stock~~20 options outstanding were awarded under a graded vesting schedule, measured at fair value, and have a term of ten years. Compensation costs for stock options are recognized over the requisite service period on the straight-line recognition method. Compensation cost recognized for stock options was $36 for the six months ended June 28, 2025 and $53 for the six months ended June 29, 2024. Beginning in 2021, management and the Compensation Committee replaced the issuance of stock options with performance-based restricted stock units (“PRSUs”) for certain employees.

Restricted Stock Units--During the six months ended June 28, 2025, the Compensation Committee awarded 266,255 PRSUs to certain management employees and 10,704 RSUs to non-employee directors. The Compensation Committee made similar awards in prior periods. The awards vest over specified periods. The following table summarizes PRSUs and RSUs as of June 28, 2025.

Restricted Stock Units	NumberofStock Units	Weighted-AverageGrant DateValue		Weighted-Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2025	767,832	$	18.32
Granted	276,959	23.80
Forfeited	(750)	21.74
Vested	(436,368)	16.89
Unvested, June 28, 2025	607,673	$	21.83	2.0 years	$	8,672	$	14,645
Employee PRSUs	576,085	$	21.87	2.1 years	$	8,241	$	13,884
Non-employee Director RSUs	31,588	$	21.16	1.9 years	$	431	$	761

- 19 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

~~grant~~Stock ~~date~~Options ~~price~~Plan--The ofstock options outstanding were awarded under a ~~PRSU~~graded orvesting anschedule, ~~RSU~~measured at fair value, and have a term of ten years. Compensation ~~expense~~costs for stock options are recognized over the requisite service period on ~~PRSUs~~the ~~and~~straight-line ~~RSUs~~recognition ~~totaled~~method. Compensation cost recognized for stock options was $~~3,209~~36 for the ~~six~~nine months ended ~~June~~September 2827, 2025 and $~~4,059~~74 for the ~~six~~nine months ended ~~June~~September 2928, 2024. As of September 27, 2025, compensation cost related to stock options outstanding has been fully recognized.

Beginning in 2021, management and the Compensation Committee replaced the issuance of stock options with performance-based restricted stock units (“PRSUs”) for certain employees.

Restricted Stock Units--During the nine months ended September 27, 2025, the Compensation Committee awarded 266,255 PRSUs to certain management employees and 10,704 RSUs to non-employee directors. The Compensation Committee made similar awards in prior periods. The awards vest over specified periods. The following table summarizes PRSUs and RSUs as of September 27, 2025.


Restricted Stock Units	Number of Stock Units	Weighted- Average Grant Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2025	767,832	$	18.32
Granted	276,959	23.80
Forfeited	(14,890)	21.40
Vested	(436,368)	16.89
Unvested, September 27, 2025	593,533	$	21.84	1.8 years	$	7,137	$	15,135
Employee PRSUs	561,945	$	21.88	1.8 years	$	6,759	$	14,330
Non-employee Director RSUs	31,588	$	21.16	1.6 years	$	378	$	805

Compensation cost for PRSUs and RSUs is determined using a fair-value method and amortized on the straight-line recognition method over the requisite service period. “Intrinsic value” is defined as the amount by which the fair market value of a common share exceeds the grant date price of a PRSU or an RSU. Compensation expense on PRSUs and RSUs totaled $4,441 for the nine months ended September 27, 2025 and $5,214 for the nine months ended September 28, 2024.

We estimated the fair value of each stock-based award on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

- 21 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 27, 2025

(Amounts in thousands, except share data)

The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumptions.

	Six Months Ended
	Nine Months Ended
	June 28,2025		June 29,2024
	September 27,2025		September 28,2024
Volatility rate	9.4	%	9.5	%
Risk-free interest rate	3.9	%	4.6	%
Expected dividend yield	.4	%	.4	%
Expected life of awards (years)	3.0		3.0

General Stock Option Information--The following table summarizes activity under the stock option plans for the ~~six~~nine months ended ~~June~~September 2827, 2025.

Stock Options	NumberofOptions Outstanding	Weighted-AverageExercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2025	1,278,798	$	9.56
Granted	—	—
Exercised	(~~227~~246,~~290~~084)	8.5263
Forfeited	(66,350)	7.53
Outstanding, June 28, 2025	985,158	$	9.93	3.0 years	$	13,960
Outstanding, September 27, 2025	966,364	$	9.93	2.8 years	$	15,046
Exercisable, June 28, 2025	985,158	$	9.93	3.0 years	$	13,960
Exercisable, September 27, 2025	966,364	$	9.93	2.8 years	$	15,046

As of June 28, 2025, compensation cost related to stock options outstanding has been fully recognized.

“Intrinsic value” is defined as the amount by which the market price of a common share exceeds the exercise price of an option.

Common shares are issued from treasury upon the exercise of stock options, the vesting of RSUs and PRSUs or purchases under the Employee Stock Purchase Plan.

-J. Income ~~20 -~~Taxes

Our income 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. Each quarter we update our estimate of the annual effective tax rate and, if our estimated annual tax rate changes, we make a cumulative adjustment. The estimated annual effective tax rate for the nine months ended September 27, 2025 was 27.4%. Our actual effective tax rate was 30.2% and 26.7% for the three months ended September 27, 2025 and September 28, 2024, respectively. Our actual effective tax rate was 26.1% and 24.6% for the nine months ended September 27, 2025 and September 28, 2024, respectively. The change in the effective tax rate from statutory tax rates was primarily due to the impact of favorable discrete items, such as equity awards. Such discrete items are a set amount and therefore have a larger impact on the rate based on our lower taxable income in the first nine months compared to the impact they will have on the rate for the full year.

- 22 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

JAs of September 27, 2025, we had unrecognized tax benefits of $2,194, of which $431 would affect our effective rate if recognized, and accrued interest expense related to unrecognized benefits of $59. ~~Income~~ ~~Taxes~~At December 31, 2024, we had unrecognized tax benefits of $2,126, of which $363 would affect our effective rate if recognized, and accrued interest expense related to unrecognized benefits of $51. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken, in a tax return, and the benefit recognized for financial reporting purposes.

Our income 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. Each quarter we update our estimate of the annual effective tax rate and, if our estimated annual tax rate changes, we make a cumulative adjustment. The estimated annual effective tax rate for the six months ended June 28, 2025 was 27.5%. Our actual effective tax rate was 27.7% and 25.9% for the three months ended June 28, 2025 and June 29, 2024, respectively. Our actual effective tax rate was 22.8% and 22.5% for the six months ended June 28, 2025 and June 29, 2024, respectively. 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 loss before tax in the first six months compared to the impact they will have on the rate for the full year.

As of June 28, 2025, we had unrecognized tax benefits of $2,171, of which $408 would affect our effective rate if recognized, and accrued interest expense related to unrecognized benefits of $56. At December 31, 2024, we had unrecognized tax benefits of $2,126, of which $363 would affect our effective rate if recognized, and accrued interest expense related to unrecognized benefits of $51. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken, in a tax return, and the benefit recognized for financial reporting purposes.

We recognize interest accrued related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense.

The Company is routinely under audit by U.S. federal, state and local authorities and Canadian authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. With the exception of U.S. state jurisdictions and Canada, the Company is no longer subject to examination by tax authorities for the years through 2020. As of ~~June~~September 2827, 2025, we believe it is reasonably possible that the total amount of unrecognized tax benefits will not significantly increase or decrease.

~~Subsequent~~On toJuly ~~June 28~~4, 2025, the U.S. enacted H.R. 1 “A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14” (“H.R. 1”) ~~on July 4~~, ~~2025,~~ commonly referred to as the “One Big Beautiful Bill Act.” Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities and our effective tax rate in the future and we continue to evaluate the impacts the new legislation will have on our condensed consolidated financial statements. As a result of the enactment of H.R. 1, we anticipate an impact to the deferred tax liability and the income tax payable related to the provisions for 100% bonus depreciation for assets placed in service after January 19, 2025 and full expensing of domestic research and experimental expenditures. WeThere dois ~~not~~no ~~expect any~~ material ~~change~~impact to our ongoing tax rate as a result of this legislation.

K. Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income (loss) and other components, including foreign currency translation adjustments and defined benefit pension plan adjustments.

-The 21following -summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity for the three and nine months ended September 27, 2025 and September 28, 2024:


Three Months Ended September 27, 2025	Foreign Currency Translation Adjustments		Available-for- Sale Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance at June 28, 2025	$	(5,714)	$	111	$	98	$	(5,505)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	(458)	$	—	$	—	$	(458)
Unrealized loss on available-for-sale securities	—		(3)		—		(3)


Tax effect	—		1		—		1
Net of tax amount	(458)		(2)		—		(460)
Balance at September 27, 2025	$	(6,172)	$	109	$	98	$	(5,965)

- 23 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

The following summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity for the three and six months ended June 28, 2025 and June 29, 2024:


Three Months Ended September 28, 2024	Foreign Currency Translation Adjustments		Available-for- Sale Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance at June 29, 2024	$	(5,748)	$	(73)	$	45	$	(5,776)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	346	$	—	$	—	$	346
Unrealized gain on available-for-sale securities	—		483		—		483

Amounts reclassified from accumulated other comprehensive income (loss)	—		(49)		—		(49)
Tax effect	—		(90)		—		(90)
Net of tax amount	346		344		—		690
Balance at September 28, 2024	$	(5,402)	$	271	$	45	$	(5,086)

Nine Months Ended September 27, 2025	Foreign Currency Translation Adjustments		Available-for- Sale Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2025	$	(6,881)	$	10	$	98	$	(6,773)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	709	$	—	$	—	$	709
Unrealized gain on available-for-sale securities	—		125		—		125


Tax effect	—		(26)		—		(26)
Net of tax amount	709		99		—		808
Balance at September 27, 2025	$	(6,172)	$	109	$	98	$	(5,965)

Nine Months Ended September 28, 2024	Foreign Currency Translation Adjustments		Available-for- Sale Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2024	$	(4,922)	$	92	$	45	$	(4,785)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	(480)	$	—	$	—	$	(480)
Unrealized gain on available-for-sale securities	—		276		—		276

Amounts reclassified from accumulated other comprehensive income (loss)	—		(49)		—		(49)
Tax effect	—		(48)		—		(48)
Net of tax amount	(480)		179		—		(301)
Balance at September 28, 2024	$	(5,402)	$	271	$	45	$	(5,086)

Three Months Ended June 28, 2025	ForeignCurrencyTranslation Adjustments		Available for Sale Securities		DefinedBenefitPensionPlans		AccumulatedOtherComprehensiveIncome (Loss)
Balance at March 29, 2025	$	(6,738)	$	95	$	98	$	(6,545)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	1,024	$	—	$	—	$	1,024
Unrealized gain on available-for-sale securities	—		20		—		20
Tax effect	—		(4)		—		(4)
Net of tax amount	1,024		16		—		1,040
Balance at June 28, 2025	$	(5,714)	$	111	$	98	$	(5,505)
Three Months Ended June 29, 2024	ForeignCurrencyTranslation Adjustments		Available-for-Sale Securities		DefinedBenefitPensionPlans		AccumulatedOtherComprehensiveIncome (Loss)
Balance at March 30, 2024	$	(5,503)	$	(44)	$	45	$	(5,502)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	(245)	$	—	$	—	$	(245)
Unrealized loss on available-for-sale securities	—		(55)		—		(55)
Tax effect	—		26		—		26
Net of tax amount	(245)		(29)		—		(274)
Balance at June 29, 2024	$	(5,748)	$	(73)	$	45	$	(5,776)
Six Months Ended June 28, 2025	ForeignCurrencyTranslationAdjustments		Available-for-Sale Securities		DefinedBenefitPensionPlans		AccumulatedOtherComprehensiveIncome (Loss)
Balance at January 1, 2025	$	(6,881)	$	10	$	98	$	(6,773)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	1,167	$	—	$	—	$	1,167
Unrealized gain on available-for-sale securities	—		128		—		128
Tax effect	—		(27)		—		(27)
Net of tax amount	1,167		101		—		1,268
Balance at June 28, 2025	$	(5,714)	$	111	$	98	$	(5,505)

There were no changes in defined benefit pension plans for either the three and nine months ended September 27, 2025 or September 28, 2024. Changes in defined benefit pension plans are included in net periodic pension expense classified in the condensed consolidated statement of operations as general and administrative expense or other income (expense).

- 2224 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Six Months Ended June 29, 2024	ForeignCurrencyTranslationAdjustments		Available-for-Sale Securities		DefinedBenefitPensionPlans		AccumulatedOtherComprehensiveIncome (Loss)
Balance at January 1, 2024	$	(4,922)	$	92	$	45	$	(4,785)
Other comprehensive income (loss) before reclassifications
Foreign currency translation adjustments	$	(826)	$	—	$	—	$	(826)
Unrealized loss on available-for-sale securities	—		(207)		—		(207)
Tax effect	—		42		—		42
Net of tax amount	(826)		(165)		—		(991)
Balance at June 29, 2024	$	(5,748)	$	(73)	$	45	$	(5,776)

There were no changes in defined benefit pension plans for either the three and six months ended June 28, 2025 or June 29, 2024. Changes in defined benefit pension plans are included in net periodic pension expense classified in the condensed consolidated statement of operations as general and administrative expense or other income (expense).

- 23 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 28, 2025

(Amounts in thousands, except share data)

L. Per Share Amounts and Common and Redeemable Shares Outstanding

We calculate our basic earnings per share by dividing net income or net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated in a similar manner, but include the effect of dilutive securities. To the extent these securities are antidilutive, they are excluded from the calculation of earnings per share. The per share amounts were computed as follows:

Three Months Ended

~~Six~~Nine Months Ended

June 28,2025

June 29,2024

June 28,2025

June 29,2024

September 27,2025

September 28,2024

September 27,2025

September 28,2024

Income available to common shareholders:

Net income

3221,~~770~~614

2926,~~720~~024

2951,~~512~~126

2753,~~445~~469

Weighted-average shares (in thousands):

Basic:

Outstanding

40,~~301~~295

41,~~110~~333

40,~~443~~394

41,~~313~~320

Partially-paid share subscriptions

~~283~~274

~~304~~296

~~566~~822

~~609~~889

Basic weighted-average shares

40,~~584~~569

41,~~414~~629

41,~~009~~216

4142,~~922~~209

Diluted:

Basic from above

40,~~584~~569

41,~~414~~629

41,~~009~~216

4142,~~922~~209

Incremental shares from assumed:

Exercise of stock subscription purchase rights

92108

7188

92108

7287

Exercise of stock options and awards

1,~~548~~216

1,~~903~~585

1,~~485~~395

1,~~852~~763

Diluted weighted-average shares

4241,~~224~~893

43,~~388~~302

42,~~586~~719

4344,~~846~~059

Net income per share:

Basic

.8153

.7263

1.7224

1.6527

Diluted

.7852

.6860

1.6920

1.6321

Common and Redeemable Shares Outstanding--A summary of the activity of the common and redeemable shares outstanding for the ~~six~~nine months ended ~~June~~September 2827, 2025 was as follows:

Common SharesNet of TreasuryShares

RedeemableShares

Total

Shares outstanding at January 1, 2025

32,360,648

8,114,134

40,474,782

Shares purchased

(1,~~528~~835,~~068~~519)

(~~497~~600,~~020~~042)

(2,~~025~~435,~~088~~561)

Shares sold

~~637~~655,~~561~~712

~~341~~472,~~961~~494

~~979~~1,~~522~~128,206

Stock subscription offering -- cash purchases

2353,~~632~~695

—

2353,~~632~~695

Options and awards exercised

~~812~~840,~~644~~621

—

~~812~~840,~~644~~621

Shares outstanding at June 28, 2025

32,306,417

7,959,075

40,265,492

Shares outstanding at September 27, 2025

32,075,157

7,986,586

40,061,743

- 2425 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

On ~~June~~September 2827, 2025, we had 40,~~265~~061,~~492~~743 common and redeemable shares outstanding, employee options exercisable to purchase ~~985~~966,~~158~~364 common shares, partially-paid subscriptions for 1,~~133~~096,~~150~~350 common shares and purchase rights outstanding for ~~398~~376,~~024~~198 common shares. The partially-paid subscriptions and stock purchase rights are what remains of the 2022 Subscription Offering discussed further below.

2022 Subscription Offering

Beginning April 2022, the Company offered to eligible employees and non-employee directors the right to subscribe to a maximum of 2,666,667 common shares of the Company (including shares that may be issued upon the exercise of stock rights) at $18.10 per share in accordance with the provisions of The Davey Tree Expert Company 2014 Omnibus Stock Plan and the rules of the Compensation Committee of the Company’s Board of Directors. The offering period ended on August 1, 2022 and resulted in the subscription of 1,476,250 common shares for $26,720 at $18.10 per share.

Participants in the subscription offering who purchased common shares for an aggregate purchase price of less than $5 were required to pay with cash. All participants (excluding Company directors and officers) purchasing common shares for an aggregate purchase price of $5 or more had an option to finance their purchase through a down-payment of at least 10% of the total purchase price and a promissory note with a term of seven years for the balance due with interest at the greater of 2.00% or the applicable federal rate in effect as of August 1, 2022, which was 3.15%. Payments on the promissory note can be made either by payroll deductions or annual lump-sum payments of both principal and interest. Common shares purchased in the offering were pledged as security for the payment of the promissory note, and the common shares will not be issued until the promissory note is paid-in-full. Dividends will be paid on all subscribed shares, subject to forfeiture to the extent that payment is not ultimately made for the shares.

All participants in the offering who purchased in excess of $5 of common shares were granted a “right” to purchase one additional common share at a price of $18.10 per share for every three common shares purchased in the offering. As a result of the stock subscription, rights to purchase 489,169 common shares were granted. Each right may be exercised at the rate of one-seventh per year and will expire seven years after the date that the right was granted. A purchaser may not exercise a right once he or she ceases to be the Company's employee or non-employee director, as applicable.

M. Operations by Business Segment

We provide a wide range of arboricultural, horticultural, environmental and consulting services to residential, utility, commercial and government entities throughout the United States and Canada. We have two reportable operating segments organized by type or class of customer: Residential and Commercial, and Utility.

Residential and Commercial--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.

- 2526 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Utility--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,” which does not meet the definition of a reportable segment.

Measurement of Segment Profit and Loss and Segment Assets--Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer, Patrick M. Covey. The CODM evaluates performance and allocates resources based primarily on revenue and income from operations, which includes reviews of year-over-year changes in both revenues and operating income as well as changes from internal forecasts and budgets for each segment. Since our revenue is primarily dependent on people and equipment, the CODM reviews significant cost components for each segment such as payroll expense, equipment and fuel expense, and subcontractor expense. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies except that (a) we compute and recognize depreciation expense for our segments only by the straight-line method, and (b) state income taxes are allocated to the segments. Corporate expenses are substantially allocated among the operating segments, but the nature of expenses allocated may differ from year-to-year. There are no intersegment revenues. Segment assets are those generated or directly used by each segment, and include accounts receivable, operating supplies, and property and equipment.

Segment information reconciled to the condensed consolidated financial statements was as follows:

UtilityServices

ResidentialCommercialServices

TotalReportableSegments

AllOther

Consolidated

Three Months Ended June 28, 2025

Three Months Ended September 27, 2025

Revenues

~~266~~270,~~896~~141

~~244~~229,~~924~~749

~~511~~499,~~820~~890

~~625~~776

~~512~~500,~~445~~666

Less:

Payroll expense

~~112~~113,~~821~~514

9397,~~519~~403

Equipment and fuel expense

1819,~~392~~599

1514,~~481~~711

Subcontractor expense

2427,~~059~~504

1315,~~858~~749

Other segment expenses (a)

89,~~400~~719

8575,~~161~~131

6,~~828~~103

Income (loss) from operations, reportable segments

~~22,224~~$

19,805

~~36,905~~$

26,755

~~59,129~~$

46,560

~~(6,203)~~$

(5,327)

~~52,926~~$

41,233

Unallocated costs (b)

(3,~~792~~715)

Income from operations

4937,~~134~~518

Interest expense

(45,~~980~~066)

Interest income

~~756~~568

Other income (expense), net

~~424~~(2,041)

Income before income taxes

4530,~~334~~979

Segment assets, total

~~393~~387,~~771~~651

~~434~~439,~~141~~205

~~827~~826,~~912~~856

~~616~~661,~~429~~228

(c)

1,~~444~~488,~~341~~084

- 2627 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

UtilityServices

ResidentialCommercialServices

TotalReportableSegments

AllOther

Consolidated

Three Months Ended June 29, 2024

Three Months Ended September 28, 2024

Revenues

~~253~~258,~~860~~222

~~226~~218,~~516~~925

~~480~~477,~~376~~147

12,~~278~~293

~~481~~479,~~654~~440

Less:

Payroll expense

~~108~~112,~~348~~115

8792,~~420~~435

Equipment and fuel expense

17,~~101~~059

14,~~010~~088

Subcontractor expense

2119,~~499~~860

1214,~~692~~311

Other segment expenses (a)

8586,~~743~~134

7569,~~636~~779

87,~~070~~007

Income (loss) from operations, reportable segments

~~21,169~~$

23,054

~~36,758~~$

28,312

~~57,927~~$

51,366

~~(6,792)~~$

(4,714)

~~51,135~~$

46,652

Unallocated costs (b)

(45,~~657~~692)

Income from operations

4640,~~478~~960

Interest expense

(5,~~222~~319)

Interest income

~~998~~970

Other income (expense), net

(21,~~169~~111)

Income before income taxes

4035,~~085~~500

Segment assets, total

~~375~~390,~~697~~632

~~413~~376,~~460~~607

~~789~~767,~~157~~239

~~547~~632,~~301~~041

(c)

1,~~336~~399,~~458~~280

Six Months Ended June 28, 2025

Nine Months Ended September 27, 2025

Revenues

~~522~~792,~~003~~144

~~424~~653,~~054~~803

~~946~~1,~~057~~445,947

12,~~224~~000

~~947~~1,~~281~~447,947

Less:

Payroll expense

~~220~~334,~~865~~379

~~168~~266,~~729~~132

Equipment and fuel expense

3555,~~631~~230

2944,~~414~~125

Subcontractor expense

5179,~~983~~487

3854,~~466~~215

Other segment expenses (a)

~~172~~262,~~716~~435

~~155~~230,~~002~~133

1723,~~788~~891

Income (loss) from operations, reportable segments

4060,~~808~~613

3259,~~443~~198

73119,~~251~~811

(1621,~~564~~891)

5697,~~687~~920

Unallocated costs (b)

(912,~~137~~852)

Income from operations

4785,~~550~~068

Interest expense

(914,~~362~~428)

Interest income

1,~~308~~876

Other income (expense), net

(13,~~292~~333)

Income before income taxes

3869,~~204~~183

Segment assets, total

~~393~~387,~~771~~651

~~434~~439,~~141~~205

~~827~~826,~~912~~856

~~616~~661,~~429~~228

(c)

1,~~444~~488,~~341~~084

- 2728 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

UtilityServices

ResidentialCommercialServices

TotalReportableSegments

AllOther

Consolidated

Six Months Ended June 29, 2024

Nine Months Ended September 28, 2024

Revenues

~~495~~753,~~196~~418

~~389~~608,~~366~~291

~~884~~1,~~562~~361,709

14,~~901~~194

~~886~~1,~~463~~365,903

Less:

Payroll expense

~~212~~324,~~664~~779

~~156~~248,~~040~~475

Equipment and fuel expense

3350,~~717~~776

2741,~~358~~446

Subcontractor expense

4767,~~150~~010

3045,~~968~~279

Other segment expenses (a)

~~167~~253,~~186~~320

~~140~~210,~~847~~626

1623,~~224~~231

Income (loss) from operations, reportable segments

3457,~~479~~533

3462,~~153~~465

68119,~~632~~998

(1419,~~323~~037)

54100,~~309~~961

Unallocated costs (b)

(713,~~597~~289)

Income from operations

4687,~~712~~672

Interest expense

(914,~~289~~608)

Interest income

12,~~524~~494

Other income (expense), net

(34,~~533~~644)

Income before income taxes

3570,~~414~~914

Segment assets, total

~~375~~390,~~697~~632

~~413~~376,~~460~~607

~~789~~767,~~157~~239

~~547~~632,~~301~~041

(c)

1,~~336~~399,~~458~~280

Reconciling adjustments from segment reporting to condensed consolidated external financial reporting includes unallocated corporate items:

(a)Other segment expenses include occupancy costs, travel, insurance, depreciation and amortization, selling expenses and all other operating expenses.

(b)Unallocated costs include unallocated corporate expenses.

(c)Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets.

N. Revenue Recognition

We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers.

Nature of Performance Obligations and Significant Judgments

At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service (or bundle of goods and services) that is distinct. To identify the performance obligations, the Company considers each of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

Contracts with our customers generally originate upon the completion of a quote for services for residential and commercial customers or the receipt of a purchase order (or similar work order) for utility customers. In some cases, our contracts are governed by master services agreements, in which case our contract under ASC 606 consists of the combination of the master services agreement and the quote/purchase order. Many of our contracts have a stated duration of one year or less or contain termination clauses that allow the customer to cancel the contract after a specified notice period, which is typically less than 90 days. Due to the fact that many of our arrangements allow the customer to terminate for convenience, the duration of the contract for revenue recognition purposes generally does not extend beyond the services that we have actually transferred. As a result, many of our contracts are, in effect, day-to-day or month-to-month contracts.

- 2829 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Disaggregation of Revenue

The following tables disaggregate our revenue for the three and ~~six~~nine months ended ~~June~~September 2827, 2025 and ~~June~~September 2928, 2024 by major sources:

Three Months Ended June 28, 2025

Utility

ResidentialandCommercial

All Other

Consolidated

Three Months Ended September 27, 2025

Utility

ResidentialandCommercial

All Other

Consolidated

Type of service:

Tree and plant care

~~167~~176,~~410~~420

~~129~~124,~~829~~022

(~~395~~526)

~~296~~299,~~844~~916

Grounds maintenance

—

6959,~~253~~127

—40

6959,~~253~~167

Storm damage services

133,~~342~~213

53,~~609~~846

—

187,~~951~~059

Consulting and other

8690,~~144~~508

4042,~~233~~754

1,~~020~~262

~~127~~134,~~397~~524

Total revenues

~~266~~270,~~896~~141

~~244~~229,~~924~~749

~~625~~776

~~512~~500,~~445~~666

Geography:

United States

251,~~298~~360

~~228~~215,~~061~~470

~~625~~776

~~479~~467,~~984~~606

Canada

1518,~~598~~781

1614,~~863~~279

—

3233,~~461~~060

Total revenues

~~266~~270,~~896~~141

~~244~~229,~~924~~749

~~625~~776

~~512~~500,~~445~~666

Three Months Ended June 29, 2024

Utility

ResidentialandCommercial

All Other

Consolidated

Three Months Ended September 28, 2024

Utility

ResidentialandCommercial

All Other

Consolidated

Type of service:

Tree and plant care

~~161~~157,~~037~~355

~~119~~118,~~664~~779

~~254~~117

~~280~~276,~~955~~251

Grounds maintenance

—

6552,~~691~~273

—

6552,~~691~~273

Storm damage services

418,~~278~~436

28,~~955~~953

—

727,~~233~~389

Consulting and other

8882,~~545~~431

38,~~206~~920

12,~~024~~176

~~127~~123,~~775~~527

Total revenues

~~253~~258,~~860~~222

~~226~~218,~~516~~925

12,~~278~~293

~~481~~479,~~654~~440

Geography:

United States

~~240~~243,~~039~~063

~~212~~205,~~827~~823

12,~~278~~293

~~454~~451,~~144~~179

Canada

1315,~~821~~159

13,~~689~~102

—

2728,~~510~~261

Total revenues

~~253~~258,~~860~~222

~~226~~218,~~516~~925

12,~~278~~293

~~481~~479,~~654~~440

Six Months Ended June 28, 2025

Utility

ResidentialandCommercial

All Other

Consolidated

Nine Months Ended September 27, 2025

Utility

ResidentialandCommercial

All Other

Consolidated

Type of service:

Tree and plant care

~~332~~508,~~206~~626

~~216~~340,~~088~~110

(~~785~~1,310)

~~547~~847,~~509~~426

Grounds maintenance

—

~~108~~167,~~662~~789

—40

~~108~~167,~~662~~829

Storm damage services

3135,~~799~~012

2327,~~188~~034

—

5462,~~987~~046

Consulting and other

~~157~~248,~~998~~506

76118,~~116~~870

23,~~009~~270

~~236~~370,~~123~~646

Total revenues

~~522~~792,~~003~~144

~~424~~653,~~054~~803

12,~~224~~000

~~947~~1,~~281~~447,947

Geography:

United States

~~495~~747,~~740~~099

~~398~~614,~~746~~217

12,~~224~~000

~~895~~1,~~710~~363,316

Canada

2645,~~263~~045

2539,~~308~~586

—

5184,~~571~~631

Total revenues

~~522~~792,~~003~~144

~~424~~653,~~054~~803

12,~~224~~000

~~947~~1,~~281~~447,947

- 2930 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Six Months Ended June 29, 2024

Utility

ResidentialandCommercial

All Other

Consolidated

Nine Months Ended September 28, 2024

Utility

ResidentialandCommercial

All Other

Consolidated

Type of service:

Tree and plant care

~~310~~467,~~456~~811

~~202~~321,~~417~~197

(~~226~~109)

~~512~~788,~~647~~899

Grounds maintenance

—

98150,~~435~~707

—

98150,~~435~~707

Storm damage services

927,~~210~~646

514,~~692~~645

—

1442,~~902~~291

Consulting and other

~~175~~257,~~530~~961

82121,~~822~~742

24,~~127~~303

~~260~~384,~~479~~006

Total revenues

~~495~~753,~~196~~418

~~389~~608,~~366~~291

14,~~901~~194

~~886~~1,~~463~~365,903

Geography:

United States

~~468~~711,~~047~~110

~~366~~572,~~276~~099

14,~~901~~194

~~836~~1,~~224~~287,403

Canada

2742,~~149~~308

2336,~~090~~192

—

5078,~~239~~500

Total revenues

~~495~~753,~~196~~418

~~389~~608,~~366~~291

14,~~901~~194

~~886~~1,~~463~~365,903

Contract Balances

Our contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. The Company recognized $~~752~~470 and $2,~~077~~546 of revenue for the three and ~~six~~nine months ended ~~June~~September 2827, 2025, that was included in the contract liability balance at December 31, 2024 and $~~688~~1,480 and $13,~~889~~370 of revenue for the three and ~~six~~nine months ended ~~June~~September 2928, 2024, that was included in the contract liability balance at December 31, 2023. Net contract liabilities consisted of the following:

	June 28,2025		December 31,2024
	September 27,2025		December 31,2024
Contract liabilities - current	$	54,~~660~~166	$	3,756
Contract liabilities - noncurrent	43,~~810~~532		4,655
Net contract liabilities	$	107,~~470~~698	$	8,411

O. Fair Value Measurements and Financial Instruments

FASB ASC 820, “Fair Value Measurements and Disclosures” (“Topic 820”) defines fair value based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principal or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability.

Valuation Hierarchy--Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The hierarchy prioritizes the inputs into three broad levels:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2 inputs are observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data.

- 3031 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Our assets and liabilities measured at fair value on a recurring basis at ~~June~~September 2827, 2025 were as follows:

			Fair Value Measurements at June 28, 2025 Using:
			Fair Value Measurements at September 27, 2025 Using:
Assets and Liabilities Recorded at Fair Value on a Recurring Basis	TotalCarryingValue ~~atJune~~atSeptember 2827, 2025		QuotedPrices inActiveMarkets(Level 1)		SignificantOtherObservableInputs(Level 2)		SignificantUnobservableInputs(Level 3)
Assets:
Assets invested for self-insurance
Certificates of deposits, current	$	3,000	$	3,000	$	—	$	—
Available-for-sale debt securities:
United States Government and agency securities	3938,~~412~~830		3938,~~412~~830		—		—
Total available-for-sale debt securities	3938,~~412~~830		3938,~~412~~830		—		—
Marketable equity securities:
Mutual funds	1318,~~141~~412		1318,~~141~~412		—		—
Exchange traded funds	711,~~793~~031		711,~~793~~031		—		—
Total marketable equity securities	2029,~~934~~443		2029,~~934~~443		—		—
Liabilities:
Deferred compensation	$	~~830~~816	$	—	$	—	$	~~830~~816

Our assets and liabilities measured at fair value on a recurring basis at December 31, 2024 were as follows:

			Fair Value Measurements atDecember 31, 2024 Using:
Assets and Liabilities Recorded at Fair Value on a Recurring Basis	TotalCarryingValue atDecember 31, 2024		QuotedPrices inActiveMarkets(Level 1)		SignificantOtherObservableInputs(Level 2)		SignificantUnobservableInputs(Level 3)
Assets:
Assets invested for self-insurance
Certificates of deposits, current	$	2,750	$	2,750	$	—	$	—
Certificates of deposits, noncurrent	750		750		—		—
Available-for-sale debt securities:
United States Government and agency securities	46,180		46,180		—		—
Total available-for-sale debt securities	46,180		46,180		—		—
Marketable equity securities:
Mutual funds	19,491		19,491		—		—
Exchange traded funds	1,727		1,727		—		—
Total marketable equity securities	21,218		21,218		—		—
Liabilities:
Deferred compensation	$	1,482	$	—	$	—	$	1,482

- 3132 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

The assets invested for self-insurance are ~~certificates of deposit,~~ bonds, mutual funds and exchange traded funds--classified as Level 1--based on quoted market prices of the identical underlying securities in active markets. The estimated fair value of the deferred compensation--classified as Level 3--is based on the value of the Company's common shares, determined by independent valuation.

The Company's common shares are not listed or traded on an established public trading market and market prices are, therefore, not available. Semiannually, for purposes of the Davey 401KSOP and ESOP, the fair market value of the common shares is determined by an independent stock valuation firm. The semiannual valuations utilize two approaches in determining the fair value of the common shares, a market approach and an income approach. Each approach utilizes Company performance and financial condition, using a peer group of comparable companies selected by the firm as well as significant unobservable inputs such as projected earnings and cash flow, EBITDA and cost of capital. The results of each valuation approach are utilized in a weighted average calculation to arrive at the fair market value.

The peer group at ~~June~~September 2827, 2025 consisted of: ABM Industries Incorporated; Comfort Systems USA, Inc.; Dycom Industries, Inc.; FirstService Corporation; MYR Group, Inc.; Quanta Services, Inc.; Rollins, Inc.; and Scotts Miracle-Gro Company. The semiannual valuations are effective for a period of six months and the per-share price established by those valuations is the price at which the Board of Directors of the Company has determined that the common shares will be bought and sold during that six-month period in transactions involving the Company or one of its employee benefit or stock purchase plans. The Company provides a ready market for all shareholders through its direct purchase of their common shares, although the Company is under no obligation to do so (other than for repurchases pursuant to the put option, as described in Note Q).

Management has evaluated the classification of the ~~common~~deferred ~~shares~~compensation liability and determined that due to significant unobservable inputs used in the independent stock valuation, the ~~shares~~liability ~~are~~is categorized as a Level c33 ~~investments~~fair value measure.

Fair Value of Financial Instruments--The fair values of our current financial assets and current liabilities, including cash, accounts receivable, accounts payable, and accrued expenses, among others, approximate their reported carrying values because of their short-term nature. Financial instruments classified as noncurrent assets and liabilities and their carrying values and fair values were as follows:

	June 28, 2025				December 31, 2024
	September 27, 2025				December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Available-for-sale debt securities	$	3938,~~412~~830	$	3938,~~412~~830	$	46,180	$	46,180
Marketable equity securities	2029,~~934~~443		2029,~~934~~443		21,218		21,218
Liabilities:
Revolving credit facility, noncurrent	$	~~276~~122,~~232~~993	$	~~276~~122,~~232~~993	$	213,873	$	213,873
Senior unsecured notes, noncurrent	~~120~~205,000		~~120~~206,~~726~~442		120,000		117,486
Term loans, noncurrent	23,~~633~~089		23,~~681~~183		6,072		6,065
Total	$	~~398~~331,~~865~~082	$	~~399~~332,~~639~~618	$	339,945	$	337,424

The carrying value of our revolving credit facility approximates fair value--classified as Level 2--as the interest rates on the amounts outstanding are variable. The fair value of our senior unsecured notes and term loans--classified as Level 2--is determined based on expected future weighted-average interest rates with the same remaining maturities.

- 3233 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Market Risk--In the normal course of business, we are exposed to market risk related to changes in foreign currency exchange rates, changes in interest rates and changes in fuel prices. We do not hold or issue derivative financial instruments for trading or speculative purposes. In prior years, we have used derivative financial instruments to manage risk, in part, associated with changes in interest rates and changes in fuel prices. Presently, we are not engaged in any hedging or derivative activities.

P. Commitments and Contingencies

We are party to a number of lawsuits, threatened lawsuits and other claims arising out of the normal course of business. On a quarterly basis, we assess our liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that we will incur a loss and the amount of the loss can be reasonably estimated, we record a liability in our consolidated financial statements. These accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we do not record an accrual, consistent with applicable accounting guidance. Based on information currently available to us, advice of counsel, and available insurance coverage, we believe that our established accruals are adequate and the liabilities arising from the legal proceedings will not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the inherent uncertainty in legal proceedings, there can be no assurance that the ultimate resolution of a matter will not exceed established accruals. As a result, the outcome of a particular matter or a combination of matters may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.

Georgia Wrongful Death Suit

In November 2017, a wrongful death lawsuit was filed in Savannah, Georgia in the State Court of Chatham County (“State Court”) against Davey Tree, its subsidiary, Wolf Tree, Inc. (“Wolf Tree”), a former Davey employee, a Wolf Tree employee, and two former Wolf Tree employees. That complaint, as subsequently amended, alleges various acts of negligence and seeks compensatory damages for the wrongful death of the plaintiff’s husband, a Wolf Tree employee, who was shot and killed in August 2017.

In July 2018, a related survival action was filed in Savannah, Georgia by the deceased’s estate against Davey Tree, its subsidiary, Wolf Tree, and four current and former employees, which arises out of the same allegations, seeks compensatory and punitive damages and also includes three Racketeer Influenced and Corrupt Organizations Act (“RICO”) claims under Georgia law seeking treble damages. The 2018 case was removed to the United States District Court for the Southern District of Georgia, Savannah Division (“Federal Court”), on August 2, 2018.

The cases were mediated unsuccessfully in December 2018 and the State Court case was originally set for trial on January 22, 2019. However, as discussed below, the two civil cases were ultimately stayed for more than four years.

On December 6, 2018, a former Wolf Tree employee pled guilty to conspiracy to conceal, harbor, and shield illegal aliens. On December 21, 2018, the United States Department of Justice (“DOJ”) filed a motion to stay both actions on the grounds that on December 7, 2018, an indictment was issued charging two former Wolf Tree employees and another individual with various crimes, including conspiracy to murder the deceased. The State Court case was stayed on December 28, 2018 and the Federal Court case was stayed on January 8, 2019.

- 3334 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

On January 29, 2019, the State Court ordered the parties to return to mediation, which occurred on April 17, 2019, but was unsuccessful in resolving the matters.

By November 2022, all three of the individually charged defendants had either been convicted at trial or pled guilty to Federal criminal charges in the Federal Court related to their involvement with the murder and other illegal activities. All three criminal defendants have now been sentenced.

Previously, on December 17, 2018, the United States Attorney’s Office for the Southern District of Georgia (“United States Attorney”) informed the Company and Wolf Tree that they are also under investigation for potential civil or other violations of immigration and other laws relating to the subject matters of the criminal investigation referenced above. The Company and Wolf Tree fully cooperated with the investigation.

On July 12, 2023, the Company and Wolf Tree entered into a non-prosecution and settlement agreement (the “settlement agreement”) with the United States Attorney’s Office for the Southern District of Georgia and the United States Department of Homeland Security (“DHS”), resolving the investigation for potential violations of immigration and other laws by the Company and Wolf Tree.

The United States Attorney recognized that, since August 2017, both the Company and Wolf Tree have fully cooperated with the criminal and civil investigation and, in entering into the settlement agreement, the United States Attorney took into consideration the Company’s and Wolf Tree’s implementation of a significant compliance program.

The Company and Wolf Tree paid $3,984 as part of the settlement agreement, including civil penalties, forfeiture and restitution. The United States Attorney agreed that it will not bring any criminal charges against the Company or Wolf Tree concerning the subject matter of the investigation and released the Company and Wolf Tree from civil liability concerning certain immigration code provisions. The DHS also agreed to release the Company and Wolf Tree from administrative liability relating to the subject matter of the investigation, all of which are subject to standard reservations of rights and certain reserved claims. The settlement agreement closed the investigation by the United States Attorney and DHS. The settlement is not an admission of liability by the Company or Wolf Tree.

During the pendency of the criminal cases, the civil cases were stayed. Once the individual defendants' criminal matters resolved, the State Court permitted limited additional discovery and amended motions for summary judgment. On March 6, 2024, the State Court granted the plaintiff’s motion to drop less than all parties from the lawsuit. As a result, Davey Tree was the only remaining defendant in the State Court case. The State Court had also set a civil jury trial for the week of July 29 to August 2, 2024. The Company filed a Third Motion for Summary Judgment after the dismissal of the other defendants, and the Court granted the Company’s Third Motion for Summary Judgment in part and denied it in part on June 25, 2024. Due to the significant change to the claims in the case, the Court further vacated the previously set trial date of July 29, 2024. A new trial date was set for June 2, 2025. The trial was held and eight days later, on June 11, 2025, the jury rendered its verdict. Specifically, the jury returned a verdict in favor of the Plaintiff and against the Company and awarded damages for the wrongful death of the Plaintiff in the amount of $3,100, along with expenses of litigation pursuant to O.C.G.A. § 13-6-11 for bad faith in the amount of $2,351. The jury also apportioned fault between the Company and the Plaintiff, and specifically apportioned 90% of the fault to the Company and 10% of the fault to the Plaintiff’s Decedent. On June 23, 2025, based on the jury’s findings and Georgia law, the Court entered a verdict against the Company in the amount of $4,906, which the Company has fully accrued for as of ~~June~~September 2827, 2025. On July 9, 2025, Plaintiff filed a Combined Motion to Set Aside Judgment, Motion for New Trial and Motion for ~~Judgment~~

- 3435 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Judgment Notwithstanding the Verdict. The Company also filed its own Motion Notwithstanding the Verdict on July 23, 2025. The Company is currently evaluating all its post-trial options, including any appeal of the verdict.

The stay in the Federal Court case was lifted on April 4, 2023. The Company moved to dismiss the alleged civil RICO claims, further filed a motion to stay the case until the motion to dismiss was decided, and moved for partial summary judgment on certain state law claims. The Federal Court granted the Company’s motion to stay discovery pending resolution of the motion to dismiss. On March 27, 2024, the Federal Court ordered the plaintiff to refile a deficient RICO statement, dismissed the Company’s motion to dismiss without prejudice and leave to refile once the plaintiff’s RICO statement has been refiled, and set a briefing schedule. The Company then refiled its Motion to Dismiss in early summer 2024 and that Motion to Dismiss was granted on March 3, 2025, dismissing all RICO related claims against the moving defendants. The Federal Court has not yet set a trial date.

The Company and Wolf Tree have denied all liability and are vigorously defending against all allegations and claims in the Federal Court civil case.

Northern California Wildfires

Five lawsuits were filed that name contractors for PG&E Corporation and its subsidiary, Pacific Gas and Electric Company (together, “PG&E”), including Davey Tree, with respect to claims arising from a wildfire event that occurred in Pacific Gas and Electric Company’s service territory in northern California beginning on October 8, 2017. An action was brought on August 8, 2019 in Napa County Superior Court, entitled Walker, et al. v. Davey Tree Surgery Company, et al., Case No. 19CV001194. An action was brought on October 8, 2019 in San Francisco County Superior Court, entitled Abram, et al. v. ACRT, Inc., et. al, Case No. CGC-19-579861. An action was brought on October 7, 2019 in San Francisco Superior Court, entitled Adams, et al. v. Davey Resource Group, Inc., et al., Case No. CGC-19-579828. An action was brought on October 8, 2019 in Sacramento Superior Court, entitled Antone, et al. v. ACRT, Inc. et al., Case No. 34-2019-00266662. An action was brought on October 7, 2019 in Sacramento Superior Court, entitled Bennett, et al. v. ACRT, Inc. et al., Case No. 2019-00266501.

Three additional actions were brought on January 28, 2021 in San Francisco County Superior Court, by fire victims represented by a trust (“Plaintiffs’ Trust”), which was assigned contractual rights in the PG&E bankruptcy proceedings. These cases are entitled John K. Trotter, Trustee of the PG&E Fire Victim Trust v. Davey Resource Group, Inc., et al., Case No. CGC-21-589438; John K. Trotter, Trustee of the PG&E Fire Victim Trust v. Davey Resource Group, Inc., et al., Case No. CGC-21-589439; and John K. Trotter, Trustee of the PG&E Fire Victim Trust v. ACRT Pacific, LLC, et al., Case No. CGC-21-589441. On September 22, 2021, the Court granted Davey Tree’s petition to coordinate all cases as a California Judicial Council Coordination Proceeding, In Re North Bay Fire Cases, JCCP No. 4955. As a result of the coordination order, all of the actions were stayed in their home jurisdictions, subject to further court order.

In November 2022, Davey Tree filed a cross-complaint against the Plaintiffs’ Trust and PG&E related to the contractual obligations of limitation of liability and hold harmless. Since that time, Davey Tree has dismissed the cross-complaint against PG&E without prejudice. The Plaintiffs’ Trust filed a demurrer which challenged Davey Tree’s claim that the hold harmless provisions in its contracts with PG&E are an obligation of the Plaintiffs’ Trust. In response to the demurrer, Davey Tree filed an amended cross-complaint against the Plaintiffs’ Trust on April 13, 2023. The Plaintiffs’ Trust has since filed another demurrer seeking to dismiss the cross complaint by Davey Tree, and

- 3536 -

Index

The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Davey Tree has filed a response. The Plaintiffs’ Trust filed a motion for summary adjudication which challenged the limitation of liability as set forth in the assigned contracts. The Court denied the motion for summary adjudication in an order entered April 12, 2023.

At a case management conference in JCCP No. 4955 on February 24, 2022, the Court ordered that Davey Tree and the plaintiffs participate in a mediation. The mediation commenced on October 17, 2022. At a case management conference on September 26, 2023, the parties reported to the Court that they had reached a settlement in principle and needed additional time to work on a long form settlement agreement. The parties jointly requested that the Court continue trial dates and other proceedings while the parties attempt to reach final terms on a global resolution. The Court originally set a trial date for October 2, 2023 involving the claim of the Plaintiffs’ Trust as to the Atlas burn location. On July 26, 2023, based on a joint request by the parties, the Court vacated the October 2, 2023 Atlas trial date and reset the Atlas trial for February 26, 2024, which has been vacated.

On November 10, 2022, the Court authorized the plaintiffs to contact Napa County Superior Court for the purpose of setting a trial date in the Walker case for claims related to the Patrick burn location. On December 15, 2022, the Court in the Walker case set a trial date of March 4, 2024. Pursuant to the parties’ stipulation, that trial date was continued to August 19, 2024. On April 30, 2024 the parties filed a joint stipulation to continue the trial date for 90 days. The trial was later set for December 4, 2024. On October 9, 2024, the parties filed a joint stipulation mutually requesting that the trial and all related dates be continued approximately 45 days after the December 4, 2024 trial date, or thereafter, as convenient to the court. The Walker trial date was later set for February 18, 2025. The Walker trial date was then continued to July 14, 2025 and later reset for October 6, 2025. On July 31, 2025, the Court vacated the trial date and set a status conference date for April 17, 2026.

~~Davey~~On ~~Tree~~September ~~has~~22, ~~responded~~2025, ~~to all claims asserted by~~ the ~~plaintiffs~~Court in ~~these~~JCCP ~~actions, denying all liability, and is vigorously defending against plaintiffs' alleged claims~~No. ~~However,~~4955 weset ~~believe that~~ a ~~range~~trial ofdate ~~losses~~in isall ~~probable~~of ~~and~~the wecoordinated ~~have~~actions ~~accrued our best estimate within this range which is also equal to our total coverage limits under our self-insurance and third party insurance providers~~ for ~~the~~June ~~2017-2018 policy year of $220~~8,~~000.~~ We2026 ~~believe that any losses would be recovered through our self-insurance~~ and ~~third~~reserved ~~party~~the ~~insurance~~month ~~providers and have accrued a corresponding insurance recoverable within our Condensed Consolidated Balance Sheet as~~ of June ~~28,~~ ~~2025~~for the trial.

Davey Tree has responded to all claims asserted by the plaintiffs in these actions, denying all liability, and is vigorously defending against plaintiffs' alleged claims. However, we believe that a range of losses is probable and we have accrued our best estimate within this range which is also equal to our total coverage limits under our self-insurance and third party insurance providers for the 2017-2018 policy year of $220,000. We believe that any losses would be recovered through our self-insurance and third party insurance providers and have accrued a corresponding insurance receivable within our Condensed Consolidated Balance Sheet as of September 27, 2025.

Q. The Davey 401KSOP and Employee Stock Ownership Plan

On March 15, 1979, the Company consummated a plan, which transferred control of the Company to its employees. As a part of this plan, the Company initially sold 120,000 common shares (presently, 46,080,000 common shares adjusted for stock splits) to its Employee Stock Ownership Trust (“ESOT”) for $2,700. The Employee Stock Ownership Plan (“ESOP”), in conjunction with the related ESOT, provided for the grant to certain employees of certain ownership rights in, but not possession of, the common shares held by the trustee of the ESOT. Annual allocations of shares have been made to individual accounts established for the benefit of the participants.

Defined Contribution and Savings Plans--Most employees are eligible to participate in The Davey 401KSOP and ESOP Plan. Effective January 1, 1997, the plan commenced operations and retained the existing ESOP participant accounts and incorporated a deferred savings plan (a “401(k) plan”) feature. Participants in the 401(k) plan are allowed to make before-tax contributions, within Internal Revenue Service established limits, through payroll deductions. Effective January 1, 2020, we match, in either cash or our common shares, 100% of the first three percent and 50% of the next two percent of each participant's before-tax contribution, limited to the first five percent of the

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The Davey Tree Expert Company

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June~~September 2827, 2025

(Amounts in thousands, except share data)

Service established limits, through payroll deductions. Effective January 1, 2020, we match, in either cash or our common shares, 100% of the first three percent and 50% of the next two percent of each participant's before-tax contribution, limited to the first five percent of the employee’s compensation deferred each year. All non-bargaining domestic employees who attained 21 years of age and completed one year of service are eligible to participate. In May 2004, we adopted the 401K Match Restoration Plan, a defined contribution plan that supplements the retirement benefits of certain employees that participate in the savings plan feature of The Davey 401KSOP and ESOP Plan, but are limited in contributions because of tax rules and regulations.

Our common shares are not listed or traded on an established public trading market, and market prices are, therefore, not available. Semiannually, an independent stock valuation firm assists with the appraisal of the fair market value of our common shares based upon our performance and financial condition. The Davey 401KSOP and ESOP Plan includes a put option for shares of the Company’s common stock distributed from the plan. Shares are distributed from the Davey 401KSOP and ESOP Plan to former participants of the plan, their beneficiaries, donees or heirs (each, a “participant”). Since our common stock is not currently traded on an established securities market, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for two 60-day periods after distribution of the shares from the Davey 401KSOP and ESOP. The fair value of distributed shares subject to the put option totaled $85,~~162~~719 and $2,018 as of ~~June~~September 2827, 2025 and December 31, 2024, respectively. The fair value of the shares held in the Davey 401KSOP and ESOP totaled $~~194~~197,~~795~~939 and $193,533 as of ~~June~~September 2827, 2025 and December 31, 2024, respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held in the Davey 401KSOP and ESOP (collectively referred to as 401KSOP and ESOP related shares) are recorded at fair value, classified as temporary equity in the mezzanine section of the consolidated balance sheets and totaled $~~202~~203,~~957~~658 and $195,551 as of ~~June~~September 2827, 2025 and December 31, 2024, respectively. Changes in the fair value of the 401KSOP and ESOP Plan related shares are reflected in retained earnings while net share activity associated with the 401KSOP and ESOP Plan related shares are first reflected in additional paid-in capital and then retained earnings if additional paid-in capital is insufficient.

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Index

Item 2.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 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. Global supply chains and product availability remain highly challenged and ongoing global events in Eastern Europe and the Middle East have only exacerbated an already difficult operating environment. These factors, combined with ~~higher~~fluctuating interest rates and a highly competitive labor market, have created an inflationary environment and cost pressures.

We continue to monitor macroeconomic trends and uncertainties and changes in international trade relations and trade policy, including those related to tariffs. The U.S. government ~~has~~continues ~~recently~~to ~~announced~~announce anew ~~series~~and of additional tariffs on goods imported into the United States, which has prompted retaliatory tariffs from other countries. Incremental tariffs and changed trade policies did not have a significant impact on our financial results ~~for~~through the first ~~half~~three quarters of 2025, but could adversely impact our results in the future. As a result of the U.S. tariffs, and potential tariff modifications or the imposition of tariffs or export controls by other countries, we anticipate increased supply chain challenges, commodity cost volatility, economic uncertainty, and economic pressures on customers and consumers as a result of the challenges of high inflation combined with the effects of increased tariffs. While we are implementing measures to mitigate these potential impacts, we are continuing to evaluate these factors and their potential effects on our profitability for the remainder of fiscal 2025.

Inflation rates in the markets in which we operate have increased and may continue to rise. 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. We have generally been able to offset increases in these costs through various productivity and cost reduction initiatives, as well as adjusting our prices to pass through some of these higher costs to our customers; however, our

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ability to raise our prices depends on market conditions and competitive dynamics. Given the timing of our actions compared to the timing of these inflationary pressures, there may be periods during which we are unable to fully recover the increases in our costs.

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						~~Six~~Nine Months Ended
	June 28,2025		June 29,2024		Change		June 28,2025		June 29,2024		Change
	September 27,2025		September 28,2024		Change		September 27,2025		September 28,2024		Change
Revenues	100.0	%	100.0	%	—	%	100.0	%	100.0	%	—	%
Costs and expenses:
Operating	6264.72		62.47		1.35		6564.28		6564.5		(.3)
Selling	1617.73		1617.96		(.23)		17.65		17.13		.52
General and administrative	7.65		7.87		(.2)		8.41		8.63		(.2)
Depreciation and amortization	3.89		3.67		.2		4.0		3.78		.32
Gain on sale of assets, net	(.4)		(.32)		(.12)		(.23)		(.3)		.1—
Income from operations	97.65		98.65		—(1.0)		5.09		56.34		(.35)
Other income (expense):
Interest expense	(1.0)		(1.1)		.1		(1.0)		(1.01)		—.1
Interest income	.1		.2		(.1)		.1		.2		(.1)
Other, net	(.14)		(.42)		(.52)		(.12)		(.53)		.41
Income before income taxes	86.82		87.34		(1.52)		4.08		45.02		—(.4)
Income taxes	21.49		2.20		(.21)		1.93		1.93		—
Net income	6.4.3	%	65.14	%	(1.31)	%	3.15	%	3.19	%	—(.4)	%

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Index

Second Quarter—Three Months Ended June 28, 2025 Compared to Three Months Ended June 29, 2024

Our results of operations for the three months ended June 28, 2025 compared to the three months ended June 29, 2024 were as follows:

	Three Months Ended
	June 28,2025		June 29,2024		Change		PercentageChange
Revenues	$	512,445	$	481,654	$	30,791	6.4	%
Costs and expenses:
Operating	321,321		300,306		21,015		7.0
Selling	85,603		81,511		4,092		5.0
General and administrative	39,036		37,370		1,666		4.5
Depreciation and amortization	19,333		17,371		1,962		11.3
Gain on sale of assets, net	(1,982)		(1,382)		(600)		43.4
	463,311		435,176		28,135		6.5
Income from operations	49,134		46,478		2,656		5.7
Other income (expense):
Interest expense	(4,980)		(5,222)		242		(4.6)
Interest income	756		998		(242)		(24.2)
Other, net	424		(2,169)		2,593		(119.5)
Income before income taxes	45,334		40,085		5,249		13.1
Income taxes	12,564		10,365		2,199		21.2
Net income	$	32,770	$	29,720	$	3,050	10.3	%

Revenues--Revenues of $512,445 increased $30,791 compared with $481,654 in the second quarter of 2024. Utility Services increased $13,036 or 5.1% compared with the second quarter of 2024. The increase was attributable to new accounts as well as increased work year-over-year and price increases on existing accounts. Residential and Commercial Services increased $18,408 or 8.1% from the second quarter of 2024. Increases were primarily in grounds maintenance revenue and tree and plant care revenues, partially resulting from weather-related deferrals of liquid service work from the first quarter of 2025 to the second quarter of 2025.

Operating Expenses--Operating expenses of $321,321 increased $21,015 compared with the second quarter of 2024. Utility Services increased $10,567 or 5.7% compared with the second quarter of 2024 and, as a percentage of revenue, increased to 73.7% from 73.4%. The increase was attributable to additional expenses for labor and benefits expenses, subcontractor expense and materials expenses. Residential and Commercial Services increased $11,069 or 9.8% compared with the second quarter of 2024 and, as a percentage of revenue, increased to 50.7% from 49.9%. The increase was attributable to increases in labor and benefits expenses, equipment expenses, subcontracting expense and materials expense.

Fuel costs of $12,792 decreased $664, or 4.9%, from the $13,456 incurred in the second quarter of 2024 and impacted operating expenses within all segments. The $664 decrease included usage increases approximating $51 and price decreases approximating $715.

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Index

~~Selling~~Third ~~Expenses--Selling~~Quarter—Three ~~expenses~~Months ofEnded ~~$85~~September 27,~~603~~ ~~increased~~2025 ~~$4,092~~Compared ~~compared with the second quarter of 2024 but, as a percentage of revenue, decreased~~ to ~~16.7%~~Three ~~from~~Months ~~16.9%.~~Ended ~~Utility Services decreased $963 or 3.3% compared to the second quarter of 2024 and~~September 28, as a percentage of revenue, decreased to 10.7% from 11.6%. The decrease was primarily attributable to decreases in wages and benefits expenses and professional services expenses. Residential and Commercial Services increased $5,349 or 10.1% from the second quarter of 2024 ~~and, as a percentage of revenue, increased to 23.8% from 23.4%. The increase was primarily attributable to increases in wages and benefits expenses, advertising expenses and office rent expense.~~

~~General~~Our ~~and~~results ~~Administrative Expenses--General and administrative expenses~~ of ~~$39,036~~operations ~~increased~~for ~~$1,666 from $37,370 in~~ the ~~second~~three ~~quarter~~months ofended ~~2024.~~September 27, ~~The~~2025 ~~increase~~compared ~~was primarily attributable~~ to ~~increases~~the inthree ~~salary~~months ~~and~~ended ~~benefits expense~~September 28, ~~and~~2024 ~~advertising expenses which~~ were ~~partially~~as ~~offset by a decrease in professional services expense.~~follows:

Depreciation and Amortization Expense--Depreciation and amortization expense of $19,333 increased $1,962 from $17,371 incurred in the second quarter of 2024 which was primarily attributable to an increased mix of purchased equipment compared to leased equipment along with depreciation on our corporate office expansion.


	Three Months Ended
	September 27, 2025		September 28, 2024		Change		Percentage Change
Revenues	$	500,666	$	479,440	$	21,226	4.4	%

Costs and expenses:
Operating	321,065		300,535		20,530		6.8
Selling	86,813		84,319		2,494		3.0
General and administrative	37,309		36,956		353		1.0
Depreciation and amortization	19,969		17,860		2,109		11.8
Gain on sale of assets, net	(2,008)		(1,190)		(818)		68.7
	463,148		438,480		24,668		5.6

Income from operations	37,518		40,960		(3,442)		(8.4)
Other income (expense):
Interest expense	(5,066)		(5,319)		253		(4.8)
Interest income	568		970		(402)		(41.4)
Other, net	(2,041)		(1,111)		(930)		83.7

Income before income taxes	30,979		35,500		(4,521)		(12.7)

Income taxes	9,365		9,476		(111)		(1.2)

Net income	$	21,614	$	26,024	$	(4,410)	(16.9)	%

~~Gain~~Revenues--Revenues ~~on the Sale~~ of ~~Assets~~$500,666 ~~Net--Gain~~increased on$21,226 ~~the~~compared ~~sale~~with ~~of assets of~~ $1479,~~982~~440 ~~for~~in the ~~second~~third quarter of ~~2025~~2024. ~~increased~~Utility ~~$600~~Services ~~from~~increased ~~the~~ $111,~~382~~919 ~~gain~~or in4.6% compared with the ~~second~~third quarter of 2024. WeThe ~~sold~~increase ~~fewer~~was ~~units~~attributable ofto ~~equipment~~new ~~but~~accounts atas awell ~~higher~~as ~~average~~price ~~gain~~increases ~~per~~on ~~unit~~existing inaccounts, ~~the~~partially ~~second~~offset ~~quarter~~by oflower ~~2025~~storm asdamage ~~compared~~revenue. ~~with~~Residential and Commercial Services increased $10,824 or 4.9% from the ~~second~~third quarter of 2024. Increases were primarily in grounds maintenance revenue and tree and plant care revenues, partially offset by lower storm damage revenue.

~~Interest~~Operating ~~Expense~~Expenses--~~Interest~~Operating ~~expense~~expenses of $4321,~~980~~065 ~~decreased~~increased $~~242~~20,530 ~~from~~compared with the third quarter of 2024. Utility Services increased $513,~~222~~515 ~~incurred~~or in7.1% compared with the ~~second~~third quarter of 2024 and, as a percentage of revenue, increased to 75. 0% from 73.3%. The ~~decrease~~increase was attributable to ~~increased~~additional ~~interest~~expenses ~~capitalization~~for onsubcontractor ~~capital~~expenses, ~~projects~~materials ~~partially~~expenses ~~offset~~and bylabor ~~higher~~and ~~average~~benefits ~~borrowing~~expenses. ~~during~~Residential ~~the~~and ~~second~~Commercial ~~quarter~~Services ofincreased ~~2025~~$7,490 asor 6.8% compared with the ~~second~~third quarter of 2024 and, as a percentage of revenue, increased to 51.6% from 50.7%. The increase was attributable to increases in labor and benefits expenses and materials expenses.

~~Other,~~Fuel ~~Net--Other~~costs ~~expense, net,~~ of $~~424~~12,488 decreased $2767,~~593~~ or 5.8%, from the $213,~~169~~255 ~~of other expense~~ incurred in the ~~second~~third quarter of 2024 and ~~consisted~~impacted ofoperating ~~nonoperating~~expenses ~~income~~within ~~and~~all ~~expense,~~segments. ~~including~~The ~~gains~~$767 ~~and~~decrease ~~losses~~included onusage ~~marketable~~decreases ~~securities,~~approximating ~~pension~~$18 ~~expense~~ and ~~foreign~~price ~~currency~~decreases ~~translation~~approximating ~~adjustments~~$749.

Income Taxes--Income taxes for the second quarter of 2025 were $12,564, as compared to $10,365 for the second quarter of 2024. 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 second quarter of 2025 was 27.7% as compared with the second quarter of 2024 effective tax rate of 25.9%.

Net Income--Net income of $32,770 for the second quarter of 2025 was $3,050 more than the $29,720 of net income for the second quarter of 2024.

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Index

~~Six~~Selling ~~Months—Six~~Expenses--Selling ~~Months~~expenses ~~Ended~~of ~~June 28~~$86,813 ~~2025~~increased ~~Compared~~$2,494 compared with the third quarter of 2024 but, as a percentage of revenue, decreased to ~~Six~~17.3% ~~Months~~from ~~Ended~~17.6%. ~~June 29~~Utility Services decreased $387 or 1.3% compared to the third quarter of 2024 and, as a percentage of revenue, decreased to 10.6% from 11.2%. The decrease was primarily attributable to a decrease in wages and benefits expenses. Residential and Commercial Services increased $3,320 or 5.9% from the third quarter of 2024 and, as a percentage of revenue, increased to 25.9% from 25.7%. The increase was primarily attributable to increases in wages and benefits expenses and advertising expenses.

~~Our~~General ~~results~~and Administrative Expenses--General and administrative expenses of ~~operations~~$37,309 ~~for~~increased $353 from $36,956 in the ~~six~~third ~~months~~quarter ~~ended~~of ~~June 28,~~2024. ~~2025~~The ~~compared~~increase was primarily attributable to ~~the~~increases ~~six~~in ~~months~~salary ~~ended~~and ~~June 29,~~benefits ~~2024~~expenses and personnel development expenses which were aspartially ~~follows:~~offset by a decrease in professional services expenses.

	Six Months Ended
	June 28,2025		June 29,2024		Change		PercentageChange
Revenues	$	947,281	$	886,463	$	60,818	6.9	%
Costs and expenses:
Operating	617,253		581,085		36,168		6.2
Selling	166,956		151,487		15,469		10.2
General and administrative	79,636		75,861		3,775		5.0
Depreciation and amortization	37,901		33,779		4,122		12.2
Gain on sale of assets, net	(2,015)		(2,461)		446		(18.1)
	899,731		839,751		59,980		7.1
Income from operations	47,550		46,712		838		1.8
Other income (expense):
Interest expense	(9,362)		(9,289)		(73)		.8
Interest income	1,308		1,524		(216)		(14.2)
Other, net	(1,292)		(3,533)		2,241		(63.4)
Income before income taxes	38,204		35,414		2,790		7.9
Income taxes	8,692		7,969		723		9.1
Net income	$	29,512	$	27,445	$	2,067	7.5	%

Depreciation and Amortization Expense--Depreciation and amortization expense of $19,969 increased $2,109 from $17,860 incurred in the third quarter of 2024 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.

~~Revenues--Revenues~~Gain ofon ~~$947,281~~the ~~increased~~Sale ~~$60,818~~of ~~compared with $886~~Assets,~~463~~ inNet--Gain on the ~~first~~sale ~~six~~of ~~months~~assets of ~~2024. Utility Services increased~~ $262,~~807~~008 orfor ~~5.4% compared with~~ the ~~first~~third ~~six~~quarter ~~months~~ of ~~2024.~~2025 ~~The increase was primarily attributable to new accounts, as well as~~ increased ~~work~~$818 ~~year-over-year~~from onthe ~~accounts and price increases on existing accounts within both our U.S. and Canadian operations. Residential and Commercial Services increased~~ $341,~~688~~190 orgain ~~8.9%~~in ~~compared with~~ the ~~first~~third ~~six~~quarter ~~months~~ of 2024. ~~Increases~~We ~~were~~sold ~~primarily~~more inunits ~~tree~~of ~~and~~equipment ~~plant~~at ~~care~~a ~~revenue,~~higher ~~grounds~~average ~~maintenance~~gain ~~revenue~~per ~~and~~unit ~~storm~~in ~~damage~~the ~~service~~third ~~and~~quarter ~~were~~of ~~partially~~2025 ~~offset~~as bycompared awith ~~decrease~~the inthird ~~consulting~~quarter ~~and~~of ~~other services~~2024.

~~Operating~~Interest ~~Expenses~~Expense--~~Operating~~Interest ~~expenses~~expense of $~~617~~5,~~253~~066 ~~increased~~decreased $~~36,168~~253 ~~compared~~from ~~with~~ the ~~first six months of 2024 but, as a percentage of revenue, decreased to 65.2% from 65.5%. Utility Services increased~~ $155,~~893~~319 orincurred ~~4.3%~~in ~~compared with~~ the ~~first~~third ~~six~~quarter ~~months~~ of 2024 ~~but, as a percentage of revenue, decreased to 73~~.~~9% from 74.7%.~~ The ~~increase~~decrease was attributable to ~~increases~~increased ininterest ~~labor~~capitalization ~~and~~on ~~benefits~~capital ~~expense,~~projects ~~subcontractor expenses~~ and ~~materials~~a ~~expenses.~~lower ~~Residential~~overall ~~and~~weighted ~~Commercial~~average ~~Services~~interest ~~increased~~rate ~~$19,793~~on orlong-term ~~9.4%~~debt ~~compared~~partially ~~with~~offset ~~the~~by ~~first~~higher ~~six~~average ~~months~~borrowing ofduring ~~2024~~the ~~and,~~third asquarter ~~a percentage~~ of ~~revenue~~2025, ~~increased~~as tocompared ~~54.5%~~with ~~from~~the ~~54.2%.~~third ~~The~~quarter ~~increase~~of ~~was primarily attributable to increases in labor and benefits expense, subcontractor expenses and materials expenses~~2024.

~~Fuel~~Other, ~~costs~~Net--Other ofexpense, ~~$23~~net,~~964~~ ~~decreased~~of $~~785~~2,041 orincreased ~~3.2%,~~$930 from the $241,~~749~~111 of other expense incurred in the ~~first~~third ~~six~~quarter ~~months~~ of 2024 and ~~impacted~~consisted ~~operating~~of ~~expenses~~nonoperating ~~within~~income ~~all~~and ~~segments.~~expense, ~~The~~including ~~$785~~gains ~~decrease~~and ~~included~~losses ~~usage~~on ~~increases~~marketable ~~approximating~~securities, ~~$917~~pension expense and ~~price~~foreign ~~decreases~~currency ~~approximating~~transaction ~~$1,702~~adjustments.

Income Taxes--Income taxes for the third quarter of 2025 were $9,365, as compared to $9,476 for the third quarter of 2024. 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 2025 was 30.2% as compared with the third quarter of 2024 effective tax rate of 26.7%.

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Index

~~Selling~~Nine ~~Expenses--Selling~~Months—Nine ~~expenses~~Months ofEnded ~~$166~~September 27,~~956~~ ~~increased~~2025 ~~$15,469~~Compared ~~compared with the first six months of 2024 and, as a percentage of revenue, increased~~ to ~~17.6%~~Nine ~~from~~Months ~~17.1%.~~Ended ~~Utility Services increased $2~~September 28,~~099~~ ~~or 3.7% compared to the first six months of~~ 2024 but, as a percentage of revenue, decreased to 11.4% from 11.5%. The increase was primarily attributable to increases in wages and benefits expenses, partially offset by decreases in professional services expenses. Residential and Commercial Services experienced an increase of $13,830 or 14.3% compared to the first six months of 2024 and, as a percentage of revenue, increased to 26.0% from 24.8%. The increase was primarily attributable to an increase in wages and benefits expenses, advertising expenses, office rent expense and professional services expenses.

~~General~~Our ~~and~~results ~~Administrative~~of ~~Expenses--General~~operations ~~and~~for ~~administrative~~the ~~expenses~~nine ofmonths ~~$79,636~~ended ~~increased $3~~September 27,~~775~~ ~~from~~2025 ~~$75,861~~compared into the ~~first~~nine ~~six~~ months ofended September 28, 2024. ~~The~~were ~~increase~~as ~~was primarily attributable to increases in salary and incentive expenses.~~follows:

Depreciation and Amortization Expense--Depreciation and amortization expense of $37,901 increased $4,122 from $33,779 incurred in the first six months of 2024, which was primarily attributable to an increased mix of purchased equipment compared to leased equipment along with depreciation on our corporate office expansion.


	Nine Months Ended
	September 27, 2025		September 28, 2024		Change		Percentage Change
Revenues	$	1,447,947	$	1,365,903	$	82,044	6.0	%

Costs and expenses:
Operating	938,318		881,620		56,698		6.4
Selling	253,769		235,806		17,963		7.6
General and administrative	116,945		112,817		4,128		3.7
Depreciation and amortization	57,870		51,639		6,231		12.1
Gain on sale of assets, net	(4,023)		(3,651)		(372)		10.2
	1,362,879		1,278,231		84,648		6.6

Income from operations	85,068		87,672		(2,604)		(3.0)
Other income (expense):
Interest expense	(14,428)		(14,608)		180		(1.2)
Interest income	1,876		2,494		(618)		(24.8)
Other, net	(3,333)		(4,644)		1,311		(28.2)

Income before income taxes	69,183		70,914		(1,731)		(2.4)

Income taxes	18,057		17,445		612		3.5

Net income	$	51,126	$	53,469	$	(2,343)	(4.4)	%

~~Gain~~Revenues--Revenues ~~on the Sale~~ of ~~Assets~~$1,447,947 ~~Net--Gain~~increased on$82,044 ~~the~~compared ~~sale~~with ~~of assets of~~ $21,~~015~~365,903 ~~for~~in the first ~~six~~nine months of ~~2025~~2024. ~~decreased~~Utility ~~$446~~Services ~~from~~increased ~~the~~ $238,~~461~~726 ~~gain~~or in5.1% compared with the first ~~six~~nine months of 2024. WeThe ~~sold~~increase ~~fewer~~was ~~units~~attributable ofto ~~equipment~~new ~~during~~accounts ~~the~~as ~~first~~well ~~six~~as ~~months~~price ofincreases ~~2025~~on asexisting accounts along with higher storm damage revenue, partially offset by a decline in consulting and other services. Residential and Commercial Services increased $45,512 or 7.5% compared with the first ~~six~~nine months of 2024. Increases were primarily in tree and plant care revenue, grounds maintenance revenue and storm damage service and were partially offset by a decrease in consulting and other services.

~~Interest~~Operating ~~Expense~~Expenses--~~Interest~~Operating ~~expense~~expenses of $9938,~~362~~318 increased $7356,698 ~~from~~compared with the first nine months of 2024 and, as a percentage of revenue, increased to 64.8% from 64.5%. Utility Services increased $929,~~289~~408 ~~incurred~~or in5.3% compared with the first ~~six~~nine months of 2024 but, as a percentage of revenue, remained at 74. 2% for both periods. The increase was attributable to ~~higher~~increases ~~average~~in ~~borrowing~~subcontractor ~~partially~~expenses, ~~offset~~labor byand ~~increased~~benefits ~~interest~~expenses ~~capitalization~~and onmaterials ~~capital~~expenses. ~~projects~~Residential ~~during~~and ~~the~~Commercial ~~first~~Services ~~six~~increased ~~months of 2025~~$27,283 asor 8.5% compared with the first ~~six~~nine months of 2024 and, as a percentage of revenue, increased to 53.4% from 53.0%. The increase was primarily attributable to increases in labor and benefits expense, subcontractor expenses and materials expenses partially offset by a decrease in professional services expenses.

~~Other, Net~~-~~-Other~~ ~~expense,~~43 net, of $1,292 decreased $2,241 from the $3,533 expense incurred in the first six months of 2024 and consisted of nonoperating income and expense, including gains and losses on marketable securities, pension expense and foreign currency translation adjustments.-

Income Taxes--Income taxes for the first six months of 2025 was $8,692, as compared to $7,969 for the first six months of 2024. 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 six months of 2025 was 22.8%. Our actual effective tax rate for the first six months of 2024 was 22.5%. 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 six months compared to the impact they will have on the rate for the full year. Index

~~Net~~Fuel ~~Income--Net~~costs ~~income~~ of $2936,~~512~~452 ~~for~~decreased $1,552, or 4.1%, from the $38,004 incurred in the first ~~six~~nine months of ~~2025~~2024 ~~was~~and ~~$2,067~~impacted ~~more~~operating ~~than~~expenses ~~the~~within ~~net~~all ~~income~~segments. ofThe $271,~~445~~552 ~~for~~decrease ~~the~~included ~~first~~usage ~~six~~increases ~~months~~approximating of$899 ~~2024~~and price decreases approximating $2,451.

Selling Expenses--Selling expenses of $253,769 increased $17,963 compared with the first nine months of 2024 and, as a percentage of revenue, increased to 17.5% from 17.3%. Utility Services increased $1,712 or 2.0% compared to the first nine months of 2024 but, as a percentage of revenue, decreased to 11.1% from 11.4%. The increase was primarily attributable to an increase in wages and benefits expenses. Residential and Commercial Services experienced an increase of $17,150 or 11.2% compared to the first nine months of 2024 and, as a percentage of revenue, increased to 26.0% from 25.1%. The increase was primarily attributable to an increase in wages and benefits expenses, advertising expenses, professional services expenses and office rent expenses.

General and Administrative Expenses--General and administrative expenses of $116,945 increased $4,128 from $112,817 in the first nine months of 2024. The increase was primarily attributable to increases in salary and benefits expenses, information technology infrastructure related expenses and personnel development expenses.

Depreciation and Amortization Expense--Depreciation and amortization expense of $57,870 increased $6,231 from $51,639 incurred in the first nine months of 2024, 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.

Gain on the Sale of Assets, Net--Gain on the sale of assets of $4,023 for the first nine months of 2025 increased $372 from the $3,651 gain in the first nine months of 2024. We sold fewer units of equipment but at a higher average gain during the first nine months of 2025 as compared with the first nine months of 2024.

Interest Expense--Interest expense of $14,428 decreased $180 from the $14,608 incurred in the first nine months of 2024. The decrease was attributable to increased interest capitalization on capital projects and a lower overall weighted average interest rate on long-term debt partially offset by higher average borrowing during the first nine months of 2025, as compared with the first nine months of 2024.

Other, Net--Other expense, net, of $3,333 decreased $1,311 from the $4,644 expense incurred in the first nine months of 2024 and consisted of nonoperating income and expense, including gains and losses on marketable securities, pension expense and foreign currency transaction adjustments.

Income Taxes--Income taxes for the first nine months of 2025 were $18,057, as compared to $17,445 for the first nine months of 2024. 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 2025 was 26.1%. Our actual effective tax rate for the first nine months of 2024 was 24.6%. The change in the effective tax rate from statutory tax rates was primarily due to the impact of favorable discrete items, such as equity awards. Such discrete items are a set amount and therefore have a larger impact on the rate based on our lower taxable income 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.

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Cash Flow Summary

Our cash flows from operating, investing and financing activities for the ~~six~~nine months ended ~~June~~September 2827, 2025 and ~~June~~September 2928, 2024 were as follows:

	Six Months Ended
	Nine Months Ended
	June 28,2025		June 29,2024
	September 27,2025		September 28,2024
Cash provided by (used in):
Operating activities	$	4374,~~352~~472	$	77109,~~258~~831
Investing activities	(5790,~~317~~794)		(86132,~~270~~408)
Financing activities	1620,~~448~~582		1429,~~391~~171
Effect of exchange rate changes on cash	~~197~~140		(6141)
Increase in cash	$	24,~~680~~400	$	56,~~318~~553

Cash Provided By Operating Activities--Cash provided by operating activities was $4374,~~352~~472 for the first ~~six~~nine months of 2025, a change of $3335,~~906~~359 when compared to the first ~~six~~nine months of 2024. The $3335,~~906~~359 decrease in operating cash flow was primarily attributable to the change of $15,~~783~~245 ~~related~~in to accounts ~~receivable~~payable and accrued expenses, the change of $10,~~331~~328 related to self-insurance accruals, the change of $86,~~071~~721 inrelated ~~other~~to ~~operating~~prepaid ~~assets and liabilities~~expenses, the change of $25,~~884~~846 ~~related~~in toother ~~mitigation~~operating ~~credit~~assets ~~inventories,~~and liabilities and the change of $1,~~580~~321 related to ~~prepaid~~mitigation ~~expenses,~~credit ainventories ~~$296~~partially ~~difference~~offset inby the change inof ~~accounts~~$2,791 ~~payable~~related ~~and~~to ~~accrued~~accounts ~~expenses~~receivable.

Overall, accounts receivable increased $2619,~~160~~747 during the first ~~six~~nine months of 2025, as compared to an increase of $1022,~~377~~538 during the first ~~six~~nine months of 2024. 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 ~~six~~nine months of 2025 increased by 65 days to 76 days, when compared to 7071 days at the end of the first ~~six~~nine months of 2024. 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 special situations such as storm work.

Accounts payable and accrued expenses ~~decreased~~increased $31,~~210~~379 in the first ~~six~~nine months of 2025, a change of $~~296~~15,245 compared to the $316,~~506~~624 ~~decrease~~increase in the first ~~six~~nine months of 2024. The change was primarily related to ~~accounts~~estimated ~~payable~~income ~~which~~tax ~~was~~payments ~~partially~~and ~~offset by~~ the timing of medical claims and ~~estimated~~accrued ~~income~~compensated ~~tax~~absences, ~~payments~~partially offset by accounts payable. Self-insurance accruals ~~decreased~~increased $~~2,845~~157 in the first ~~six~~nine months of 2025, which is a change of $10,~~331~~328 from the increase of $710,~~486~~485 experienced in the first ~~six~~nine months of 2024. The ~~decrease~~smaller increase in the first ~~six~~nine months of 2025 was mainly attributable to the settlement of claims.

Mitigation bank credit inventory increased $~~1,977~~665 in the first ~~six~~nine months of 2025, a change of $21,~~884~~321 compared to the decrease of $~~907~~656 in the first ~~six~~nine months of 2024. Mitigation bank credit inventory levels are affected by the timing of credit inventory sales. This service involves the creation of mitigation credits that are available to sell to third parties through remediation of properties such as stream or wetland restoration.

Prepaid expenses ~~decreased~~increased $208,~~139~~086 in the first ~~six~~nine months of 2025, a change of $16,~~580~~721 compared to the $211,~~719~~365 ~~decrease~~increase in the first ~~six~~nine months of 2024. The change was primarily related to ~~cloud~~prepaid ~~computing~~insurance ~~costs~~premiums.

Other operating assets and liabilities, net used cash of $97,~~118~~629 in the first ~~six~~nine months of 2025, or $85,~~071~~846 more than the $1,~~047~~783 of cash used in the first ~~six~~nine months of 2024. The change was primarily related to a lower amount of payroll taxes refundable collected in the first half of 2025 compared to the amount collected in the first half of 2024 partially offset by a change in deposits.

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Cash Used In Investing Activities--Cash used in investing activities for the first ~~six~~nine months of 2025 was $5790,~~317~~794, a $2841,~~953~~614 decrease when compared to the first ~~six~~nine months of 2024. The decrease was primarily the result of a decrease in capital expenditures for equipment of $717,~~807~~303, a decrease in purchases of businesses of $1612,~~120~~628, ~~and~~ an increase in net proceeds from sale of marketable securities of $128,~~731,~~686 ~~which~~and ~~was~~a ~~partially~~decrease ~~offset by an increase~~ in capital expenditures for land and buildings of $53,~~686~~427.

Cash Provided By Financing Activities--Cash provided by financing activities was $1620,~~448~~582 during the first ~~six~~nine months of 2025, ana ~~increase~~decrease of $28,~~057~~589 as compared with the $1429,~~391~~171 provided during the first ~~six~~nine months of 2024. ~~During~~Our ~~the~~net ~~first~~payments ~~six~~on ~~months of 2025,~~ our revolving credit facility, ~~net~~were ~~provided~~ $6290,~~338~~901 induring ~~cash~~the first nine months of 2025 as compared with $5262,~~642~~950 ~~provided~~net borrowings during the first ~~six~~nine months of 2024. We use the credit facility primarily for capital expenditures, redemptions of shares and payments of notes payable related to acquisitions. Notes payable, ~~decreased~~net increased $22144,~~212~~186 during the first ~~six~~nine months of 2025, a change of $2152,~~155~~941 when compared to the $208,~~057~~755 net decrease in the first ~~six~~nine months of 2024. Treasury share transactions (purchases and sales) used $1823,~~107~~604 for the first ~~six~~nine months of 2025, $46,~~951~~794 more than the $1316,~~156~~810 used in the first ~~six~~nine months of 2024. Dividends paid of $23,~~064~~296 during the first ~~six~~nine months of 2025 ~~decreased~~increased $50130 as compared with $23,~~114~~166 paid in the first ~~six~~nine months of 2024.

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 $1416,~~688~~230 and $11,~~746~~905 during the ~~six~~nine months ended ~~June~~September 2827, 2025 and ~~June~~September 2928, 2024, respectively. Share repurchases, other than redeemable common shares, approximated $3544,~~329~~249 and $2837,~~331~~095 during the ~~six~~nine months ended ~~June~~September 2827, 2025 and ~~June~~September 2928, 2024, respectively.

Contractual Obligations Summary and Commercial Commitments

As of ~~June~~September 2827, 2025, total commitments related to issued letters of credit were $99101,~~818~~778, of which $2,375 were issued under the revolving credit facility, $9799,~~104~~071 were issued under the AR Securitization program, and $~~339~~332 were issued under short-term lines of credit. As of December 31, 2024, total commitments related to issued letters of credit were $100,050, of which $2,624 were issued under the revolving credit facility, $97,104 were issued under the AR Securitization program, and $322 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.”

Also, as is common in our industry, we have performance obligations that are supported by surety bonds, which expire during 2025 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

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continually review our existing sources of financing and evaluate alternatives. At ~~June~~September 2827, 2025, we had working capital of $~~251~~180,~~271~~501, availability under short-term lines of credit approximating $10,~~722~~744 and $~~121~~274,~~393~~632 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 and to continue to complete business acquisitions 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.

As discussed in our 2024 Annual Report, we believe that our policies related to revenue recognition, the allowance for credit losses, stock 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; and self-insurance accruals. 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. Our critical accounting policies have not changed materially from those discussed in our 2024 Annual Report.

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,” “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. Some important factors that 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 include: an overall decline in the health of the economy or our industry, including as a result of high inflation or fluctuating interest rates, tariffs and other trade barriers and restrictions, instability in the global banking system, geopolitical conditions, the possibility of an economic recession, a prolonged shutdown of the U.S. federal government, or public health crises; 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; 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; the impact of wildfires in California and other areas, as well as other severe weather events and natural disasters, which events may worsen or ~~increase due to the effects of climate change;~~

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increase due to the effects of climate change; 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 in fuel prices for extended periods of time, and volatility arising from the effects of the Russia-Ukraine conflict and conflicts in the Middle East; disruptions, delays or price increases within our supply chain (including tariffs); our ability to withstand intense competition; the potential impact of acquisitions or other strategic transactions; 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; the impact of global climate change and related regulations; fluctuations in our quarterly results due to the seasonal nature of our business or changes in general and local economic conditions, among other factors; being contractually bound to an unprofitable contract; a disruption in our information technology systems, or in third-party information systems upon which we rely, including a disruption related to cybersecurity, 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; limitations on our shareholders’ ability to sell their common shares due to the lack of a public market for such shares; our ability to continue to declare cash dividends; 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; uncertainties in the credit and financial markets, including the negative impacts of the Russia-Ukraine conflict and conflicts in the Middle East, supply chain shortages and disruptions, fluctuating interest rates, labor shortages and inflationary cost pressures, impacts of tariffs and other trade barriers and restrictions, among other factors, potentially limiting our access to capital; the impact of U.S. trade tensions, including increased tariffs and retaliatory measures imposed by foreign governments; fluctuations in foreign currency exchange rates; significant increases in health care costs; the impact of corporate citizenship and environmental, social and governance matters and/or our reporting of such matters; our ability to successfully implement our new enterprise resource planning system in a cost-effective and timely manner; the impact of events such as natural disasters, public health epidemics or pandemics, terrorist attacks or other external events; the impact of tax increases and changes in tax rules; and our inability to properly verify the employment eligibility of our employees.

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 2024 Annual Report and in this Quarterly Report on Form 10-Q.

Item 3.Quantitative and Qualitative Disclosures about Market Risk.

While we have experienced inflationary pressures during 2025, there have been no material changes in our reported market risks or risk management policies since the filing of our 2024 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 10, 2025.

Item 4.Controls and Procedures.

(a) Management’s Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of our

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disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report in ensuring that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the fiscal quarter ended ~~June~~September 2827, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

Part II. Other Information

Items 3 and 4 are not applicable.

Item 1. Legal Proceedings.

Georgia Wrongful Death Suit

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The Company and Wolf Tree paid $3,984,325 as part of the settlement agreement, including civil penalties, forfeiture and restitution. The United States Attorney agreed that it will not bring any criminal charges against the Company or Wolf Tree concerning the subject matter of the investigation and released the Company and Wolf Tree from civil liability concerning certain immigration code provisions. The DHS also agreed to release the Company and Wolf Tree from administrative liability relating to the subject matter of the investigation, all of which are subject to standard reservations of rights and certain reserved claims. The settlement agreement closed the investigation by the United States Attorney and DHS. The settlement is not an admission of liability by the Company or Wolf Tree.

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Summary Judgment after the dismissal of the other defendants, and the Court granted the Company’s Third Motion for Summary Judgment in part and denied it in part on June 25, 2024. Due to the significant change to the claims in the case, the Court further vacated the previously set trial date of July 29, 2024. A new trial date was set for June 2, 2025. The trial was held and eight days later, on June 11, 2025, the jury rendered its verdict. Specifically, the jury returned a verdict in favor of the Plaintiff and against the Company and awarded damages for the wrongful death of the Plaintiff in the amount of $3,100,000, along with expenses of litigation pursuant to O.C.G.A. § 13-6-11 for bad faith in the amount of $2,351,312. The jury also apportioned fault between the Company and the Plaintiff, and specifically apportioned 90% of the fault to the Company and 10% of the fault to the Plaintiff’s Decedent. On June 23, 2025, based on the jury’s findings and Georgia law, the Court entered a verdict against the Company in the amount of $4,906,180, which the Company has fully accrued for as of ~~June~~September 2827, 2025. On July 9, 2025, Plaintiff filed a Combined Motion to Set Aside Judgment, Motion for New Trial and Motion for Judgment Notwithstanding the Verdict. The Company also filed its own Motion Notwithstanding the Verdict on July 23, 2025. The Company is currently evaluating all its post-trial options, including any appeal of the verdict.

The Company and Wolf Tree have denied all liability and are vigorously defending against all allegations and claims in the Federal Court civil case.

Northern California Wildfires

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Index

~~Davey~~On ~~Tree~~September ~~has~~22, ~~responded~~2025, ~~to all claims asserted by~~ the ~~plaintiffs~~Court in ~~these~~JCCP ~~actions, denying all liability, and is vigorously defending against plaintiffs' alleged claims~~No. ~~However,~~4955 weset ~~believe that~~ a ~~range~~trial ofdate ~~losses~~in isall ~~probable~~of ~~and~~the wecoordinated ~~have~~actions ~~accrued our best estimate within this range which is also equal to our total coverage limits under our self-insurance and third party insurance providers~~ for ~~the~~June ~~2017-2018 policy year of $220~~8,~~000,000.~~ We2026 ~~believe that any losses would be recovered through our self-insurance~~ and ~~third~~reserved ~~party~~the ~~insurance~~month ~~providers and have accrued a corresponding insurance recoverable within our Condensed Consolidated Balance Sheet as~~ of June ~~28,~~ ~~2025~~for the trial.

Davey Tree has responded to all claims asserted by the plaintiffs in these actions, denying all liability, and is vigorously defending against plaintiffs' alleged claims. However, we believe that a range of losses is probable and we have accrued our best estimate within this range which is also equal to our total coverage limits under our self-insurance and third party insurance providers for the 2017-2018 policy year of $220,000,000. We believe that any losses would be recovered through our self-insurance and third party insurance providers and have accrued a corresponding insurance receivable within our Condensed Consolidated Balance Sheet as of September 27, 2025.

Item 1A.Risk Factors.

Our 2024 Annual Report includes a detailed discussion of our risk factors. Disclosure of risks should not be interpreted to imply that the risks have not already materialized. There have been no material changes to the risk factors described in the 2024 Annual Report during the ~~six~~nine months ended ~~June~~September 2827, 2025, except as set forth below.

Changes in U.S. trade policy and the impact of tariffs may impact our customers, our industry, and our business.

Changes in U.S. trade policy and the impact of tariffs may continue to adversely impact our customers, our industry and our business. Even though we primarily sell our services to U.S. customers and our suppliers are primarily domestic, we still rely on imported materials, components, or finished goods. The U.S. government has made significant changes in U.S. trade policy, including the imposition of a baseline tariff on product imports from almost all countries and the potential for individualized higher tariffs on certain other countries. Certain foreign governments either have taken or are threatening to take retaliatory actions in response. Tariffs or other trade restrictions

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components, or finished goods. The U.S. government has made significant changes in U.S. trade policy, including the imposition of a baseline tariff on product imports from almost all countries and the potential for individualized higher tariffs on certain other countries. Certain foreign governments either have taken or are threatening to take retaliatory actions in response. Tariffs or other trade restrictions have resulted in and may ~~lead~~continue to ~~continuing~~cause uncertainty and volatility in U.S. and global financial and economic conditions, declining consumer confidence, inflation or an economic slowdown. These tariffs or other trade restrictions, including corresponding actions taken by other countries in response to U.S. governmental actions or continuing uncertainty around the timing or scale of tariffs, could decrease demand for our services or could increase the cost to us of equipment, goods and materials used in our business, which could have a material adverse effect on our financial condition, results of operations, liquidity and cash flows. While we intend to take steps to mitigate any impacts of tariffs or other impacts resulting from changes in trade policy, our ability to do so may be limited by operational and supply chain constraints, especially in the short term.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information on purchases of our common shares outstanding made by us during the first ~~six~~nine months of 2025.

Period	TotalNumber ofSharesPurchased (1)	AveragePricePaid perShare		Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor Programs	Maximum Number ofShares thatMay Yet Be PurchasedUnder the Plans orPrograms
Fiscal 2025
January 1 to January 25	5,000	$	22.80	—	2,280,037
January 26 to February 22	1,718	22.80		—	2,280,037
February 23 to March 29	361,111	24.10		—	2,280,037
Total First Quarter	367,829	24.08		—
March 30 to April 26	854,050	24.10		—	2,280,037
April 27 to May 24	376,820	24.10		—	2,280,037
May 25 to June 28	426,389	24.10		85,219	2,194,818
Total Second Quarter	1,657,259	24.10		85,219
Total Year-to-Date	2,025,088	$	24.10	85,219
June 29 to July 26	777	24.10		—	2,194,818
(1) During the six months ended June 28, 2025, the Company purchased 1,939,869 shares from shareholders excluding those purchased through publicly announced plans. The Company provides a ready market for all shareholders through our direct purchase of their common shares although we are under no obligation to do so (other than for repurchases pursuant to the put option under The Davey 401KSOP and ESOP Plan).
July 27 to August 23	120,699	25.50		—	2,194,818
August 24 to September 27	288,997	25.50		—	2,194,818
Total Third Quarter	410,473	25.50		—
Total Year-to-Date	2,435,561	$	24.33	85,219
(1) During the nine months ended September 27, 2025, the Company purchased 2,350,342 shares from shareholders excluding those purchased through publicly announced plans. The Company provides a ready market for all shareholders through our direct purchase of their common shares although we are under no obligation to do so (other than for repurchases pursuant to the put option under The Davey 401KSOP and ESOP Plan).

Our common shares are not listed or traded on an established public trading market and market prices are, therefore, not available. Semiannually, for purposes of the Davey 401KSOP and ESOP, an independent stock valuation firm assists with the appraisal of the fair market value of the common shares, based upon our performance and financial condition, using a peer group of comparable companies selected by that firm. The peer group currently consists of: ABM Industries Incorporated; Comfort Systems USA, Inc.; Dycom Industries, Inc.; FirstService Corporation; MYR Group, Inc.; Quanta Services, Inc.; Rollins, Inc.; and Scotts Miracle-Gro Company. The semiannual valuations are effective for a period of six months and the per-share price established by those valuations is the price at which our Board of Directors has determined our common shares will be bought and sold during that six-month period in transactions involving Davey Tree or one of its employee benefit or stock purchase plans. Since 1979, we have provided a ready market for all shareholders through our direct purchase of their common shares, although we are under no obligation to do so (other than for repurchases pursuant to the put option under The Davey 401KSOP and ESOP Plan, as described in “Part I - Item 1 - Note Q, The Davey 401KSOP and Employee Stock Ownership Plan”). The purchases described above were added to our treasury stock.

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valuations are effective for a period of six months and the per-share price established by those valuations is the price at which our Board of Directors has determined our common shares will be bought and sold during that six-month period in transactions involving Davey Tree or one of its employee benefit or stock purchase plans. Since 1979, we have provided a ready market for all shareholders through our direct purchase of their common shares, although we are under no obligation to do so (other than for repurchases pursuant to the put option under The Davey 401KSOP and ESOP Plan, as described in “Part I - Item 1 - Note Q, The Davey 401KSOP and Employee Stock Ownership Plan”). The purchases described above were added to our treasury stock.

At the Annual Meeting of Shareholders of the Company held on May 16, 2017, the shareholders of the Company approved proposals to amend the Company's Articles of Incorporation to (i) expand the Company's right of first refusal with respect to proposed transfers of shares of the Company's common shares, (ii) clarify provisions regarding when the Company may provide notice of its decision to exercise its right of first refusal with respect to proposed transfers of common shares by the estate or personal representative of a deceased shareholder, and (iii) grant the Company a right to repurchase common shares held by certain shareholders of the Company.

On May 10, 2017, the Board of Directors of the Company adopted a policy regarding the Company's exercise of the repurchase rights granted to the Company through amendments to the Company's Articles of Incorporation, as approved by shareholders on May 16, 2017.

Until further action by the Board, it is the policy of the Company not to exercise its repurchase rights under the amended Articles with respect to shares of the Company's common shares held by current and retired employees and current and former directors of the Company (subject to exceptions set forth in the policy) (collectively, “Active Shareholders”), their spouses, their first-generation descendants and trusts established exclusively for their benefit.

Until further action by the Board, it is also the policy of the Company not to exercise its rights under the amended Articles to repurchase shares of the Company's common shares proposed to be transferred by an Active Shareholder to his or her spouse, a first-generation descendant, or a trust established exclusively for the benefit of one or more of an Active Shareholder, his or her spouse and first-generation descendants of an Active Shareholder, or upon the death of an Active Shareholder, such transfers from the estate or personal representative of a deceased Active Shareholder. The Board may suspend, change or discontinue the policy at any time without prior notice.

In accordance with the amendments to the Articles approved by the Company's shareholders at the 2017 Annual Meeting, on May 17, 2017, the Company's Board of Directors authorized the Company to repurchase up to 400,000 common shares, which authorization was increased by an additional 2,000,000 common shares in May 2018 and increased further by an additional 3,000,000 common shares in September 2021. Of the 5,400,000 total shares authorized, 2,194,818 remained available under the program, as of ~~June~~September 2827, 2025. Share repurchases may be made from time to time and the timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors. The Company is not obligated to purchase any shares, and repurchases may be commenced, suspended or discontinued from time to time without prior notice. The repurchase program does not have an expiration date.

Item 5. Other Information.

Rule 10b5-1 Trading Plans

The Company's securities are not traded on a public market. During the quarter ended ~~June~~September 2827, 2025, none of the Company’s directors or executive officers adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act or any “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(c) of Regulation S-K).

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Item 6.Exhibits.

See the Exhibit Index below.

Exhibits

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Exhibit No.

Description

10.1

Receivables Financing Agreement Amendment No. 13, dated July 18, 2025, by and among The Davey Tree Expert Company, Davey Receivables LLC, PNC Bank, National Association and the other lenders party thereto (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 23, 2025).

10.2

Joinder Agreement, dated July 18, 2025, by and among DTS California, LLC, Davey Rail Services, LLC, DRG Grid Reliability, LLC, Davey RC, LLC, Davey Receivables LLC, and PNC Bank, National Association, to the Receivables Purchase Agreement, dated May 9, 2016 (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with Securities and Exchange Commission on July 23, 2025).

10.3 *

R eceivables Financing Agreement Amendment No. 14, dated October 16, 2025, by and among The Davey Tree Expert Company, Davey Receivables LLC, PNC Bank , Nat ional Association and the other lenders part y thereto.

Filed Herewith

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed Herewith

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed Herewith

32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.

Furnished Herewith

32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.

Furnished Herewith

101

The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended September 27, 2025, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets (unaudited), (ii) the Condensed Consolidated Statements of Operations (unaudited), (iii) the Condensed Consolidated Statements of Comprehensive Income (unaudited), (iv) the Condensed Consolidated Statements of Shareholders' Equity (unaudited), (v) the Condensed Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Condensed Consolidated Financial Statements (unaudited). The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

Filed Herewith

104

Cover Page Interactive Data File (embedded within the inline XBRL document)

Filed Herewith

Index

Exhibit No.

Description

10.1

First Amendment to Fifth Amended and Restated Credit Agreement (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 27, 2025).

10.2

Amendment No. 3 to Note Purchase and Private Shelf Agreement (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 27, 2025).

10.3 *

10.4

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed Herewith

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed Herewith

32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.

Furnished Herewith

32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.

Furnished Herewith

101

The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 28, 2025, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets (unaudited), (ii) the Condensed Consolidated Statements of Operations (unaudited), (iii) the Condensed Consolidated Statements of Comprehensive Income (unaudited), (iv) the Condensed Consolidated Statements of Shareholders' Equity (unaudited), (v) the Condensed Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Condensed Consolidated Financial Statements (unaudited). The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

Filed Herewith

104

Cover Page Interactive Data File (embedded within the inline XBRL document)

Filed Herewith

* Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Company agrees to furnish a copy of all omitted exhibits and schedules to the Securities and Exchange Commission upon its request.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

THE DAVEY TREE EXPERT COMPANY

Date:

~~August~~November 53, 2025

By:

/s/ Joseph R. Paul

Joseph R. Paul

Executive Vice President, Chief Financial Officer and Assistant Secretary

(Principal Financial Officer)

Date:

~~August~~November 53, 2025

By:

/s/ Thea R. Sears

Thea R. Sears

Senior Vice President and Controller

(Principal Accounting Officer)

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Filing Compare · DAVEY TREE EXPERT CO