Everus Construction Group, Inc.

Previous wording

We are a leading construction solutions provider offering specialty contracting services to a diverse set of end markets, which are provided to commercial, industrial, institutional, renewables, service, utility, transportation and other customers. We operate throughout most of the United States through two reportable, operating segments:

Current wording

We are a leading construction solutions provider offering specialty contracting services to a diverse set of end markets, which are provided to commercial, industrial, institutional, renewables, service, transportation, utility and other customers. We operate throughout most of the United States through two reportable, operating segments:

Previous wording

Electrical & Mechanical (“E&M”): Contracting services including construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services in both the public and private sectors.

Current wording

Electrical & Mechanical (“E&M”): Contracting services including construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, renewables infrastructure and mechanical piping and services in both the public and private sectors.

Previous wording

Transmission & Distribution (“T&D"): Contracting services including construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as design, manufacture and distribution of overhead and underground transmission line construction equipment and tools.

Current wording

Transmission & Distribution (“T&D"): Contracting services including construction and maintenance of overhead and underground electrical, gas, communication infrastructure and transportation-related lighting, as well as the manufacture and distribution of overhead and underground transmission line construction equipment and tools.

Previous wording

We have experienced increased insurance costs and anticipate continued increases in insurance costs. Premiums in the insurance industry have risen due to many factors, such as economic inflation and a rise in insurance carriers’ losses, in particular for wildfire risks. We experienced these aforementioned impacts with coverage for our insurance lines on a standalone basis following the Separation. However, we are formulating strategies to minimize these costs and/or ensuring these costs are built into our bidding opportunities going forward.

Current wording

We have experienced increased insurance costs and anticipate continued increases in insurance costs. Premiums in the insurance industry have risen due to many factors, such as economic inflation and a rise in insurance carriers’ losses, in particular for wildfire risks. We experienced these aforementioned impacts with coverage for our insurance lines on a standalone basis following the Separation and expect further increases in insurance costs during our next renewal cycle due to our revenue growth during the fiscal year thus far. However, we are formulating strategies to minimize these costs and/or ensuring these costs are built into our bidding opportunities going forward.

Previous wording

We continued to have bidding opportunities in the specialty contracting markets we have operated in during 2025, as evidenced by our backlog. We continue to see strong project opportunities across our diverse service offerings, particularly for data center, underground and hospitality work. With our successful track record of executing on complex projects, our long-term customer relationships, safe and skilled workforce, quality of service and effective cost management, we remain well-positioned to benefit from favorable demand drivers, including high tech reshoring, data center construction and utility infrastructure investments, giving us the opportunity to continue securing and executing profitable projects in the future.

Current wording

We continued to have bidding opportunities in the specialty contracting markets we have operated in during 2025, as evidenced by our backlog, even with our revenue growth during the fiscal year thus far. We continue to see strong project opportunities across our diverse service offerings, particularly for data center, undergrounding and hospitality work. With our successful track record of executing on complex projects, our long-term customer relationships, safe and skilled workforce, quality of service and effective cost management, we remain well-positioned to benefit from favorable demand drivers, including high tech reshoring, data center construction and utility infrastructure investments, giving us the opportunity to continue securing and executing profitable projects in the future.

Previous wording

Prior to the Separation, Everus Construction historically operated as a wholly owned subsidiary of Centennial and an indirect, wholly owned subsidiary of MDU Resources and not as a standalone company. For periods prior to the Separation, financial information included in the accompanying unaudited condensed consolidated financial statements and related footnotes of this Quarterly Report were prepared on a “carve-out” basis in connection with the Separation and were derived from the unaudited condensed consolidated financial statements of MDU Resources as if we operated on a standalone basis during the periods presented. However, the financial information included in unaudited condensed consolidated financial statements and related footnotes for periods prior to the Separation do not necessarily reflect what our results of operations, financial position and cash flows would have been had we operated as a separate, publicly traded company and may not be indicative of our future performance. For additional information related to our basis of presentation, see Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Current wording

Prior to the Separation, Everus Construction historically operated as a wholly owned subsidiary of Centennial and an indirect, wholly owned subsidiary of MDU Resources and not as a standalone company. For periods prior to the Separation, financial information included in the accompanying unaudited condensed consolidated financial statements and related footnotes of this Quarterly Report were prepared on a “carve-out” basis in connection with the Separation and were derived from the unaudited condensed consolidated financial statements of MDU Resources as if we operated on a standalone basis. However, the financial information included in the unaudited condensed consolidated financial statements and related footnotes for periods prior to the Separation do not necessarily reflect what our results of operations, financial position and cash flows would have been had we operated as a separate, publicly traded company and may not be indicative of our future performance. For additional information related to our basis of presentation, see Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Previous wording

Before the Separation, we historically participated in MDU Resources’ centralized cash management program through Centennial, including its overall financing arrangements. We had related-party agreements in place with Centennial for the financing of our capital needs, which were reflected as Related-party notes payable on the unaudited condensed consolidated balance sheets for periods prior to the Separation. Interest expense, net in the unaudited condensed consolidated statements of income reflected the allocation of interest on borrowing and funding associated with the related-party agreements for periods prior to the Separation. Refer to Note 14 – Related-Party Transactions in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report for additional information.

Current wording

Before the Separation, we historically participated in MDU Resources’ centralized cash management program through Centennial, including its overall financing arrangements. We had related-party agreements in place with Centennial for the financing of our capital needs, which were reflected as related-party notes payable on the unaudited condensed consolidated balance sheets for periods prior to the Separation. Interest expense in the unaudited condensed consolidated statements of income primarily reflected the allocation of interest on borrowing and funding associated with the related-party agreements for periods prior to the Separation. Refer to Note 14 – Related-Party Transactions in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report for additional information.

Previous wording

The following table sets forth our consolidated selected statements of income data, as well as the percentage change from the prior comparative interim period.

Current wording

The following table sets forth our consolidated selected statements of income data, with percentages of operating revenues for the interim periods indicated, as well as the percentage change from the prior comparative interim period:

Previous wording

Cost of sales for the three months ended June 30, 2025, was $801.6 million, an increase of $186.8 million, or 30.4%, from $614.8 million for the three months ended June 30, 2024. This increase primarily related to higher operating costs due to increased E&M and T&D workloads and changes in project mix, partially offset by efficiency gains on certain projects. Labor, subcontractor, material and equipment and tools costs increased $93.8 million, $52.2 million, $22.8 million and $8.6 million, respectively, along with higher other job expenses of $9.4 million.

Current wording

Cost of sales for the three months ended September 30, 2025, was $862.6 million, an increase of $191.5 million, or 28.5%, from $671.1 million for the three months ended September 30, 2024. This increase primarily related to higher E&M operating costs due to increased workloads and changes in project mix, partially offset by efficiency gains on certain projects and lower T&D operating costs with reduced workloads. Labor, subcontractor, material and equipment and tools costs increased $97.6 million, $45.5 million, $24.1 million and $17.5 million, respectively, along with higher other job expenses of $6.8 million.

Previous wording

Gross profit for the three months ended June 30, 2025, was $119.9 million, an increase of $31.4 million, or 35.5%, from $88.5 million for the three months ended June 30, 2024. The increase was primarily driven by higher revenues and higher gross profit margin due to project timing and efficiency gains on certain projects, partially offset by changes in project mix. Gross profit margin increased to 13.0% for the three months ended June 30, 2025, compared to 12.6% for the three months ended June 30, 2024.

Current wording

Gross profit for the three months ended September 30, 2025, was $124.2 million, an increase of $34.3 million, or 38.2%, from $89.9 million for the three months ended September 30, 2024. The increase was primarily from increased revenues and gross margin expansion due to project timing and efficiency gains on certain projects, partially offset by changes in project mix. Gross margin increased to 12.6% for the three months ended September 30, 2025, compared to 11.8% for the three months ended September 30, 2024.

Previous wording

Selling, general and administrative expenses for the three months ended June 30, 2025, were $47.4 million, an increase of $10.2 million, or 27.4%, from $37.2 million for the three months ended June 30, 2024. The increase was driven primarily by higher labor and professional service-related expenses of $7.0 million and $1.6 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, and higher general expenses of $1.6 million including higher corporate overhead expenses.

Current wording

Selling, general and administrative expenses for the three months ended September 30, 2025, were $51.8 million, an increase of $15.6 million, or 43.1%, from $36.2 million for the three months ended September 30, 2024. The increase was primarily driven by higher labor expenses of $12.3 million, including incremental stand-alone operating costs, to support the operational growth of the business, and higher general expenses of $3.7 million including higher corporate overhead expenses.

Previous wording

Operating income for the three months ended June 30, 2025, was $72.5 million, an increase of $21.2 million, or 41.3%, from $51.3 million for the three months ended June 30, 2024. The increase was primarily driven by increased gross profit and gross profit margin, partially offset by increased selling, general and administrative expenses, including incremental stand-alone operating costs, both of which are discussed above. Operating income margin increased to 7.9% for the three months ended June 30, 2025, compared to 7.3% for the three months ended June 30, 2024.

Current wording

Operating income for the three months ended September 30, 2025, was $72.4 million, an increase of $18.7 million, or 34.8%, from $53.7 million for the three months ended September 30, 2024. The increase was primarily driven by increased gross profit, partially offset by increased selling, general and administrative expenses, both of which are discussed above. Operating income margin increased to 7.3% for the three months ended September 30, 2025, compared to 7.1% for the three months ended September 30, 2024. See Segment Results of Operations–Three Months Ended September 30, 2025, Compared to Three Months Ended September 30, 2024 for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.

Previous wording

Interest expense, net for the three months ended June 30, 2025, was $4.8 million, an increase of $1.5 million, or 45.5%, from $3.3 million for the three months ended June 30, 2024. This increase primarily related to average higher debt balances under the Term Loan (as defined below) during the three months ended June 30, 2025, compared to the average debt balances from the related-party cash management program for working capital needs during the three months ended June 30, 2024. For thethree months ended June 30, 2025, we earned $0.6 million in interest income from our daily cash sweep program, partially offsetting the increase in interest expense.

Current wording

Interest expense for the three months ended September 30, 2025, was $5.4 million, an increase of $2.6 million, or 92.9%, from $2.8 million for the three months ended September 30, 2024. This increase primarily related to average higher debt balances under the Term Loan (as defined below) during the three months ended September 30, 2025, compared to the average debt balances from the related-party cash management program for working capital needs during the three months ended September 30, 2024.

Previous wording

Other income, net for the three months ended June 30, 2025, was $1.9 million, an increase of $0.2 million, or 11.8%, from $1.7 million for the three months ended June 30, 2024. This increase primarily related to miscellaneous income activity, including rebates and bank fees.

Current wording

Other income, net for the three months ended September 30, 2025, was $3.7 million, an increase of $2.6 million from $1.1 million for the three months ended September 30, 2024. This increase primarily related to miscellaneous income activity, including settlements and rebates, partially offset by miscellaneous expense activity including bank fees.

Previous wording

Income taxes for the three months ended June 30, 2025, were $19.4 million, an increase of $5.8 million, or 42.6%, from $13.6 million for the three months ended June 30, 2024, reflecting higher pretax income for the period. The effective tax rate was 26.9% for the three months ended June 30, 2025, compared to 25.9% for the three months ended June 30, 2024.

Current wording

Income taxes for the three months ended September 30, 2025, were $20.6 million, an increase of $6.6 million, or 47.1%, from $14.0 million for the three months ended September 30, 2024, reflecting higher income taxes from greater pretax income for the period. The effective tax rate was 26.6% for the three months ended September 30, 2025, compared to 25.1% for the three months ended September 30, 2024.

Previous wording

Income from equity method investments for the three months ended June 30, 2025, was $2.6 million, a decrease of $0.3 million, or 10.3%, from $2.9 million for three months ended June 30, 2024. This decrease primarily related to decreased activity on joint ventures during the period.

Current wording

Income from equity method investments for the three months ended September 30, 2025, was $5.6 million, an increase of $1.8 million, or 47.4%, from $3.8 million for three months ended September 30, 2024. This increase primarily related to increased activity on joint ventures during the period.

Previous wording

Net income for the three months ended June 30, 2025, was $52.8 million, an increase of $13.8 million, or 35.4%, from $39.0 million for the three months ended June 30, 2024. The increase was primarily from increased gross profit and gross profit margin, partially offset by higher selling, general and administrative expenses, including incremental stand-alone operating costs, interest expense related to the company's borrowing arrangements and taxes from higher pretax income. Net income margin increased to 5.7% for the three months ended June 30, 2025, compared to 5.5% for the three months ended June 30, 2024.

Current wording

Net income for the three months ended September 30, 2025, was $57.0 million, an increase of $15.2 million, or 36.4%, from $41.8 million for the three months ended September 30, 2024. The increase was primarily from increased gross profit and income from joint ventures, partially offset by higher selling, general and administrative expenses and higher taxes on greater pretax income. Net income margin increased to 5.8% for the three months ended September 30, 2025, compared to 5.5% for the three months ended September 30, 2024.

Previous wording

Cost of sales for the six months ended June 30, 2025, was $1,535.7 million, an increase of $369.9 million, or 31.7%, from $1,165.8 million for the six months ended June 30, 2024. This increase primarily related to higher operating costs from increased E&M and T&D workloads and changes in project mix, partially offset by efficiency gains on certain projects. Labor, subcontractor, material, and equipment and tools costs increased $194.3 million, $85.4 million, $63.4 million and $15.4 million, respectively, along with higher other job expenses of $11.4 million.

Current wording

Cost of sales for the nine months ended September 30, 2025, was $2.40 billion, an increase of $561.5 million, or 30.6%, from $1.84 billion for the nine months ended September 30, 2024. This increase primarily related to higher E&M operating costs due to increased workloads and changes in project mix, partially offset by efficiency gains on certain projects and lower T&D operating costs with reduced workloads. Labor, subcontractor, material, and equipment and tools costs increased $291.9 million, $130.9 million, $87.5 million and $32.9 million, respectively, along with higher other job expenses of $18.3 million.

Previous wording

Selling, general and administrative expenses for the six months ended June 30, 2025, were $88.9 million, an increase of $15.8 million, or 21.6%, from $73.1 million for the six months ended June 30, 2024. The increase was driven primarily by higher labor and professional service-related expenses of $11.8 million and $3.5 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, and higher general expenses of $2.1 million, including higher corporate overhead expenses. Partially offsetting these increases was lower provision for expected credit losses of $1.6 million.

Current wording

Selling, general and administrative expenses for the nine months ended September 30, 2025, were $140.7 million, an increase of $31.4 million, or 28.7%, from $109.3 million for the nine months ended September 30, 2024. The increase was driven primarily by higher labor and professional service-related expenses of $24.0 million and $3.0 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, and higher general expenses of $5.8 million, including higher corporate overhead expenses. Partially offsetting these increases was lower provision for expected credit losses of $1.4 million.

Previous wording

Operating income for the six months ended June 30, 2025 was $123.5 million, an increase of $33.3 million, or 36.9%, from $90.2 million for the six months ended June 30, 2024. The increase was primarily driven by increased gross profit, partially offset by increased selling, general and administrative expenses, including incremental stand-alone operating costs, both of which are discussed above. Operating income margin increased to 7.1% for the six months ended June 30, 2025, compared to 6.8% for the six months ended June 30, 2024.

Current wording

Operating income for the nine months ended September 30, 2025 was $195.9 million, an increase of $52.0 million, or 36.1%, from $143.9 million for the nine months ended September 30, 2024. The increase was primarily driven by increased gross profit, partially offset by increased selling, general and administrative expenses, both of which are discussed above. Operating income margin increased to 7.2% for the nine months ended September 30, 2025, compared to 6.9% for the nine months ended September 30, 2024. See Segment Results of Operations–Nine Months Ended September 30, 2025, Compared to Nine Months Ended September 30, 2024 for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.

Previous wording

Interest expense, net for the six months ended June 30, 2025, was $9.5 million, an increase of $3.5 million, or 58.3%, from $6.0 million for the six months ended June 30, 2024. The increase primarily related to average higher debt balances under the Term Loan (as defined below) during the six months ended June 30, 2025, compared to the average debt balances from the related-party cash management program for working capital needs during the six months ended June 30, 2024. For thesix months ended June 30, 2025, we earned $1.5 million in interest income from our daily cash sweep program, partially offsetting the increase in interest expense.

Current wording

Interest expense for the nine months ended September 30, 2025, was $16.4 million, an increase of $7.6 million, or 86.4%, from $8.8 million for the nine months ended September 30, 2024. The increase primarily related to average higher debt balances under the Term Loan (as defined below) during the nine months ended September 30, 2025, compared to the average debt balances from the related-party cash management program for working capital needs during the nine months ended September 30, 2024.

Previous wording

Income taxes for the six months ended June 30, 2025, were $33.0 million, an increase of $9.4 million, or 39.8%, from $23.6 million for the six months ended June 30, 2024, reflecting higher pretax income for the period. The effective tax rate was 26.9% for the six months ended June 30, 2025, compared to 26.0% for the six months ended June 30, 2024.

Current wording

Income taxes for the nine months ended September 30, 2025, were $53.6 million, an increase of $16.0 million, or 42.6%, from $37.6 million for the nine months ended September 30, 2024, reflecting higher income taxes from greater pretax income for the period. The effective tax rate was 26.8% for the nine months ended September 30, 2025, compared to 25.7% for the nine months ended September 30, 2024.

Previous wording

Income from equity method investments for the six months ended June 30, 2025, was $6.0 million, an increase of $2.0 million, or 50.0%, from $4.0 million for the six months ended June 30, 2024. The increase primarily related to increased activity on joint ventures for the period.

Current wording

Income from equity method investments for the nine months ended September 30, 2025, was $11.6 million, an increase of $3.8 million, or 48.7%, from $7.8 million for the nine months ended September 30, 2024. The increase primarily related to increased activity on joint ventures for the period.

Previous wording

Net income for the six months ended June 30, 2025, was $89.5 million, an increase of $22.3 million, or 33.2%, from $67.2 million for the six months ended June 30, 2024. The increase was primarily from increased gross profit and higher income from joint ventures, partially offset by higher selling, general and administrative expenses, interest expense related to our borrowing arrangements and taxes due to higher pretax income. Net income margin remained consistent at 5.1% for the six months ended June 30, 2025, compared to 5.1% for the six months ended June 30, 2024.

Current wording

Net income for the nine months ended September 30, 2025, was $146.5 million, an increase of $37.5 million, or 34.4%, from $109.0 million for the nine months ended September 30, 2024. The increase was primarily from increased gross profit and income from joint ventures, partially offset by higher selling, general and administrative expenses and higher taxes on greater pretax income. Net income margin increased to 5.4% for the nine months ended September 30, 2025, compared to 5.2% for the nine months ended September 30, 2024.

Previous wording

We report our results under two reportable, operating segments: E&M and T&D. The following table sets forth segment revenues, segment operating income and “Corporate and Other” category operating income for the periods indicated, as well as the percentage change from the prior comparative interim period:

Current wording

We report our results under two reportable, operating segments: E&M and T&D. The following table sets forth segment revenues, segment operating income and “Corporate and Other” category operating income for the periods indicated, with segment revenues compared to total consolidated revenues and operating income margins for the interim periods indicated, as well as the percentage change from the prior comparative interim period:

Previous wording

•Institutional revenues decreased $5.5 million, driven by lower workloads in healthcare, partially offset by increased submarket activity in education and government.

Current wording

•Institutional revenues decreased $2.4 million, driven by lower workloads in healthcare and education, partially offset by increased submarket activity in government.

Previous wording

•Industrial revenues decreased $2.5 million, due to reduced activity in the high tech submarket, partially offset by higher workloads in oil & gas and manufacturing.

Current wording

•Industrial revenues decreased $6.4 million, due to reduced activity in the high tech and oil & gas submarkets, partially offset by higher workloads in manufacturing.

Previous wording

•Utility revenues increased $2.3 million due to higher workloads and submarket activity in underground and construction, partially offset by lower workloads in distribution, telecommunication and transmission due to the timing of project availability.

Current wording

•Utility revenues decreased $10.2 million due to lower workloads in telecommunication, storm and transmission due to the timing of project availability, partially offset by increased submarket activity in undergrounding work.

Previous wording

E&M segment operating income for the three months ended June 30, 2025, was $59.2 million, an increase of $23.3 million, or 64.9%, from $35.9 million for the three months ended June 30, 2024. The increase was primarily driven by higher gross profit across all end markets, particularly commercial and industrial, due to project timing and efficiency gains on certain projects, partially offset by changes in project mix. E&M gross profit margin increased to 12.0% for the three months ended June 30, 2025, compared to 11.6% for the three months ended June 30, 2024. Operating income was also impacted by higher selling, general and administrative expenses, including cost increases for labor of $3.6 million and professional-related services of $0.4 million. Operating income margin for our E&M segment increased to 8.3% for the three months ended June 30, 2025 compared to 7.1% for the three months ended June 30, 2024.

Current wording

E&M segment operating income for the three months ended September 30, 2025, was $57.0 million, an increase of $22.1 million, or 63.3%, from $34.9 million for the three months ended September 30, 2024. The increase was primarily driven by higher gross profit across the commercial, industrial and renewables end markets due to project timing and efficiency gains on certain projects, partially offset by changes in project mix. E&M gross margin increased to 11.2% for the three months ended September 30, 2025, compared to 10.2% for the three months ended September 30, 2024.

Previous wording

T&D segment operating income for the three months ended June 30, 2025, was $23.7 million, an increase of $3.1 million, or 15.0%, from $20.6 million for the three months ended June 30, 2024. The increase was the result of higher gross profit due to efficient project execution and project mix, with increased T&D gross profit margin of 16.1% for the three months ended June 30, 2025, compared to 14.6% for the three months ended June 30, 2024. Operating income was also impacted by higher selling, general and administrative expenses, including cost increases for labor of $0.5 million and professional-related services of $0.4 million. Operating income margin for our T&D segment increased to 11.1% for the three months ended June 30, 2025, compared to 10.0% for the three months ended June 30, 2024.

Current wording

T&D segment operating income for the three months ended September 30, 2025, was $27.5 million, an increase of $2.2 million, or 8.7%, from $25.3 million for the three months ended September 30, 2024. The increase was the result of higher gross profit due to efficient project execution and project mix, particularly within the transportation end market, with T&D gross margin expansion of 16.9% for the three months ended September 30, 2025, compared to 15.4% for the three months ended September 30, 2024.

Previous wording

The increase in corporate and other costs during the six months ended June 30, 2025 was primarily due to higher labor and professional service-related expenses of $4.8 million and $1.8 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, along with higher general expenses of $1.3 million, including higher corporate overhead expenses.

Current wording

The increase in Corporate and Other costs during the three months ended September 30, 2025 was primarily due to higher labor expenses of $3.7 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, along with higher general expenses of $1.9 million, including higher corporate overhead expenses.

Previous wording

E&M segment revenues for the six months ended June 30, 2025, were $1,361.8 million, an increase of $416.9 million, or 44.1%, from $944.9 million for the six months ended June 30, 2024. The increase primarily related to growth across all E&M end markets, except for Service & other, which had a marginal decrease in revenue.

Current wording

E&M segment revenues for the nine months ended September 30, 2025, were $2.13 billion, an increase of $647.4 million, or 43.7%, from $1.48 billion for the nine months ended September 30, 2024. The increase primarily related to growth across all E&M end markets, except for industrial, which had a modest decrease in revenues.

Previous wording

•Commercial revenues rose $394.4 million with higher data center and hospitality submarket activity due to increased workloads.

Current wording

•Commercial revenues rose $620.0 million with higher data center, commercial and hospitality submarket activity due to increased workloads, particularly growth in data center work.

Previous wording

•Institutional revenues increased $14.1 million from higher workloads in the education and government submarkets, with lower project activity in the healthcare submarket.

Current wording

•Institutional revenues increased $11.7 million from higher workloads in the government and education submarkets, with lower project activity in healthcare.

Previous wording

•Industrial revenues decreased with lower project activity in the high tech submarket, partially offset by higher workloads in oil & gas and manufacturing.

Current wording

•Industrial revenues decreased $2.5 million with reduced project activity in the high tech submarket, partially offset by higher workloads in the manufacturing and oil & gas submarkets.

Previous wording

T&D segment revenues for the six months ended June 30, 2025, were $397.4 million, an increase of $2.1 million, or 0.5%, from $395.3 million for the six months ended June 30, 2024. The increase primarily related to higher transportation end-market revenues, partially offset by lower utility end-market revenues.

Current wording

T&D segment revenues for the nine months ended September 30, 2025, were $620.8 million, a decrease of $3.0 million, or 0.5%, from $623.8 million for the nine months ended September 30, 2024. The slight decline was driven by lower utility end-market revenues, partially offset by increased workloads in the transportation end market.

Previous wording

•Utility revenues decreased $3.8 million from lower workloads due to weather-related impacts and timing of project availability in the distribution, storm, transmission and substation submarkets, partially offset by increased project activity across the underground, sales and construction submarkets.

Current wording

•Utility revenues decreased $14.0 million from lower workloads in the distribution, storm, transmission and telecommunication submarkets, partially offset by increased project activity across the underground submarket due to timing of project availability, along with increased utility sales.

Previous wording

E&M segment operating income for the six months ended June 30, 2025, was $103.5 million, an increase of $37.7 million, or 57.3%, from $65.8 million for the six months ended June 30, 2024. The increase was primarily driven by higher gross profit across all E&M end markets, particularly commercial and industrial, due to project timing and efficiency gains on certain projects. However, E&M gross profit margin decreased to 11.3% for the six months ended June 30, 2025, compared to 11.5% for the six months ended June 30, 2024, due to changes in project mix. Operating income was also impacted by higher selling, general and administrative expenses, including cost increases for labor of $7.1 million, professional-related services of $1.5 million and general expenses of $0.5 million, partially offset by lower provision for expected credit losses of $1.5 million. Operating income margin for our E&M segment increased to 7.6% for the six months ended June 30, 2025, compared to 7.0% for the six months ended June 30, 2024.

Current wording

E&M segment operating income for the nine months ended September 30, 2025, was $160.5 million, an increase of $59.7 million, or 59.2%, from $100.8 million for the nine months ended September 30, 2024. The increase was primarily driven by higher gross profit across all E&M end markets, particularly commercial and industrial, due to project timing and efficiency gains on certain projects, partially offset by changes in project mix. As a result, gross margin increased to 11.3% for the nine months ended September 30, 2025, compared to 11.0% for the nine months ended September 30, 2024.

Previous wording

Operating income in the T&D segment for the six months ended June 30, 2025, was $38.2 million, an increase of $3.4 million, or 9.8%, from $34.8 million for the six months ended June 30, 2024. The increase was the result of higher gross profit due to efficient project execution and project mix, with increased T&D gross profit margin of 14.5% for the six months ended June 30, 2025, compared to 13.7% for the six months ended June 30, 2024. Selling, general and administrative expenses remained relatively consistent period over period. Operating income margin for our T&D segment increased to 9.6% for the six months ended June 30, 2025, compared to 8.8% for the six months ended June 30, 2024.

Current wording

Operating income in the T&D segment for the nine months ended September 30, 2025, was $65.7 million, an increase of $5.6 million, or 9.3%, from $60.1 million for the nine months ended September 30, 2024. The increase was the result of higher gross profit due to efficient project execution and project mix, particularly within the transportation end market, with T&D gross margin expansion of 15.4% for the nine months ended September 30, 2025, compared to 14.3% for the nine months ended September 30, 2024.

Previous wording

The increase in corporate and other costs during the three months ended June 30, 2025 was primarily due to higher labor and professional service-related expenses of $2.9 million and $0.8 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, along with higher general expenses of $1.6 million, including higher corporate overhead expenses.

Current wording

The increase in Corporate and Other costs during the nine months ended September 30, 2025 was primarily due to higher labor and professional service-related expenses of $8.5 million and $2.0 million, respectively, including incremental stand-alone operating costs, to support the operational growth of the business, along with higher general expenses of $3.2 million, including higher corporate overhead expenses.