18. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following summarizes changes in the carrying value of goodwill by segment during the year ended September 30, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Communications | | Residential | | Infrastructure Solutions | | Commercial & Industrial | | Total |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Balance at September 30, 2024 | 2,816 | | | 51,370 | | | 39,774 | | | — | | | 93,960 | |
| Acquisitions (Note 20) | 9,520 | | | — | | | 4,350 | | | — | | | 13,870 | |
| | | | | | | | | |
Balance at September 30, 2025 | $ | 12,336 | | | $ | 51,370 | | | $ | 44,124 | | | $ | — | | | $ | 107,830 | |
| | | | | | | | | |
Based on the results of our annual goodwill impairment assessment at September 30, 2025, we concluded the fair value of each of our reporting units exceeded its book value, and therefore we recorded no impairment charges for the year ended September 30, 2025.
As of September 30, 2025 and 2024, we had accumulated impairment losses of $6,976 related to our Commercial & Industrial segment.
Intangible Assets
Intangible assets consist of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | September 30, 2025 |
| Estimated Useful Lives (in Years) | | Gross Carrying Amount | | Accumulated Amortization | | Net |
| Trademarks/trade names | 5 | - | 20 | | $ | 16,199 | | | $ | (8,549) | | | $ | 7,650 | |
| Technical library | 20 | | 400 | | | (241) | | | 159 | |
| Customer relationships | 1 | - | 15 | | 98,372 | | | (66,024) | | | 32,348 | |
| Non-competition arrangements | 5 | | 940 | | | (31) | | | 909 | |
| Backlog and construction contracts | 1 | - | 2 | | 1,257 | | | (678) | | | 579 | |
| Total | | | $ | 117,168 | | | $ | (75,523) | | | $ | 41,645 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | September 30, 2024 |
| Estimated Useful Lives (in Years) | | Gross Carrying Amount | | Accumulated Amortization | | Net |
| Trademarks/trade names | 5 | - | 20 | | $ | 13,821 | | | $ | (6,964) | | | $ | 6,857 | |
| Technical library | 20 | | 400 | | | (221) | | | 179 | |
| Customer relationships | 1 | - | 15 | | 92,796 | | | (54,478) | | | 38,318 | |
| | | | | | | |
| Backlog and construction contracts | 1 | - | 2 | | 750 | | | (214) | | | 536 | |
| Total | | | $ | 107,767 | | | $ | (61,877) | | | $ | 45,890 | |
For the years ended September 30, 2025, 2024 and 2023, amortization expense of intangible assets was $13,646, $13,200 and $13,684, respectively. Our estimated future amortization expense is as follows:
| | | | | |
| Year Ending September 30, |
| 2026 | $ | 13,426 | |
| 2027 | 9,879 | |
| 2028 | 6,789 | |
| 2029 | 4,064 | |
| 2030 | 3,186 | |
| Thereafter | 4,300 | |
| Total | $ | 41,645 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.