Everus Construction Group, Inc.

Previous wording

This Quarterly Report contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical facts, including, without limitation, statements regarding plans, trends, objectives, goals, business strategies, market potential, future financial performance and other matters are considered forward-looking statements. The words “believe,” “expect,” “estimate,” “could,” “should,” “would,” “intend,” “may,” “plan,” “predict,” “seek,” “anticipate,” “project” and similar expressions generally identify forward-looking statements, which speak only as of the date the statements were made. In particular, information included under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 3. Quantitative and Qualitative Disclosures about Market Risk” of this Quarterly Report contains forward-looking statements.

Current wording

This Quarterly Report contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical facts, including, without limitation, statements regarding plans, trends, objectives, goals, business strategies, market potential, future financial performance and other matters are considered forward-looking statements. The words “believe,” “expect,” “estimate,” “could,” “should,” “would,” “intend,” “may,” “plan,” “predict,” “seek,” “anticipate,” “project” and similar expressions generally identify forward-looking statements, which speak only as of the date the statements were made. In particular, information included under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 3. Quantitative and Qualitative Disclosures about Market Risk” of this Quarterly Report contains forward-looking statements.

Previous wording

We focus on safely executing projects; providing a superior return on investment by building new and strengthening existing customer relationships; ensuring quality service; effectively managing costs; retaining, developing and recruiting talented employees; growing through organic and strategic acquisition opportunities; and focusing efforts on projects that will permit higher margins while properly managing risk. The growth we have experienced in recent years is due in part to the project awards in the end markets and submarkets served and the ability to support national customers in most of the regions in which we operate. Our strong presence in the Western, Midwestern and Eastern regions of the United States has driven opportunities in data centers, high tech, hospitality and utilities, while customer expansion nationwide continues to extend our reach through partnerships through our 15 wholly owned operating companies. At Everus, people are our core, and we prioritize integrity, safety and growth through comprehensive training, hands-on development, safety compliance metrics and strong union partnerships to instill a safety first culture and ethical leadership across all levels.

Current wording

We focus on safely executing projects; providing a superior return on investment by building new and strengthening existing customer relationships; ensuring quality service; effectively managing costs; retaining, developing and recruiting talented employees; growing through organic and strategic acquisition opportunities; and focusing efforts on projects that will permit higher margins while properly managing risk. The growth we have experienced in recent years is due in part to the project awards in the end markets and submarkets served and the ability to support national customers in most of the regions in which we operate. Our strong presence in the Western, Midwestern and Eastern regions of the United States has driven opportunities in data centers, high tech, hospitality and utilities, while customer expansion nationwide continues to extend our reach through partnerships through our 16 wholly owned operating companies, including SE&M, which was acquired on April 1, 2026. SE&M expands our geographic footprint in the Southeast region of the United States.

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 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.

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 again saw increases in insurance costs during our latest renewal cycle, partially due to our revenue growth during 2025 at the time of renewal. However, we are continuing to formulate strategies to minimize these costs and/or ensuring these costs are built into our bidding opportunities going forward.

Previous wording

Despite these increased costs, we are focused on growing our total revenues, expanding margins, managing costs and generating cash, all of which would result in increased operating income.

Current wording

Despite these increased costs, we are focused on growing our total revenues, expanding gross margins, managing costs and generating cash, all of which would result in increased operating income.

Previous wording

•Key economic factors. Many factors affect product demand, including public spending on infrastructure projects, general economic conditions, including population growth and employment levels, imposed and proposed tariffs, and prevailing interest rates.

Current wording

•Key economic factors. Many factors affect product demand, including public spending on infrastructure projects, general economic conditions, including population growth and employment levels, imposed and proposed tariffs, U.S. involvement or indirect effects from global conflicts and prevailing interest rates.

Previous 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.

Current wording

We continued to have bidding opportunities in the specialty contracting markets we have operated in during 2026, as evidenced by our backlog, even with our revenue growth during the fiscal year thus far. We believe our backlog supports our strong project pipeline across our diverse service offerings, particularly for data center, hospitality and high tech 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 believe 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

Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted revenues and accounted for approximately 5.2% of revenues for the three months ended September 30, 2025, compared to 3.4% of revenues for the three months ended September 30, 2024.

Current wording

Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted revenues and accounted for approximately 5.4% of revenues for the three months ended March 31, 2026, compared to 4.6% of revenues for the three months ended March 31, 2025.

Previous wording

For the three months ended September 30, 2025, the changes in estimates mentioned above favorably accounted for approximately 7.1% of revenues, compared to 5.7% of revenues for the three months ended September 30, 2024. Favorable impacts to revenues were primarily due to project pull forward, labor efficiencies and favorable impacts from projected cost changes, including material costs, project risk mitigation and change orders. However, these changes in estimates unfavorably accounted for approximately 1.9% of revenues for the three months ended September 30, 2025, compared to 2.3% of revenues for the three months ended September 30, 2024. Unfavorable impacts to revenues were primarily due to labor inefficiencies related to sequencing on projects and unfavorable impacts from project delays and cost overruns.

Current wording

For the three months ended March 31, 2026, the changes in estimates mentioned above favorably accounted for approximately 6.4% of revenues, compared to 6.0% of revenues for the three months ended March 31, 2025. Favorable impacts to revenues were primarily due to project pull forward, labor efficiencies and favorable impacts from projected cost changes, including material costs, project risk mitigation and change orders. However, these changes in estimates unfavorably accounted for approximately 1.0% of revenues for the three months ended March 31, 2026, compared to 1.4% of revenues for the three months ended March 31, 2025. Unfavorable impacts to revenues were primarily due to labor inefficiencies related to sequencing on projects and unfavorable impacts from project delays and cost overruns.

Previous 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.

Current wording

Cost of sales for the three months ended March 31, 2026, was $906.2 million, an increase of $172.1 million, or 23.4%, from $734.1 million for the three months ended March 31, 2025. This increase primarily related to higher E&M and T&D operating costs due to increased workloads and changes in project mix, partially offset by efficient project execution. Subcontractor, labor, material, and equipment and tools costs increased $53.5 million, $51.6 million, $35.2 million and $17.4 million, respectively, along with higher other job expenses of $14.4 million.

Previous 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.

Current wording

Gross profit for the three months ended March 31, 2026, was $130.7 million, an increase of $38.2 million, or 41.3%, from $92.5 million for the three months ended March 31, 2025. The increase was primarily due to continued revenue growth from increased workloads, project timing and efficient project execution, partially offset by changes in project mix. Gross margin improved to 12.6% for the three months ended March 31, 2026, compared to 11.2% for the three months ended March 31, 2025.

Previous 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.

Current wording

Operating income for the three months ended March 31, 2026 was $77.7 million, an increase of $26.7 million, or 52.4%, from $51.0 million for the three months ended March 31, 2025. The increase was primarily driven by increased gross profit, partially offset by increased SG&A expenses, both of which are discussed above. Operating income margin increased to 7.5% for the three months ended March 31, 2026, compared to 6.2% for the three months ended March 31, 2025. See “Segment Results of Operations–Three Months Ended March 31, 2026, Compared to Three Months Ended March 31, 2025” for further comparative analysis of segment operating income and “Corporate and Other” category operating income for the periods indicated.

Previous wording

For the three months ended September 30, 2025, we earned interest income of$1.3 million, including$1.2 million from our central cash management program, including daily cash sweep and money market deposit account programs, and $0.1 million from our Captive Cell. There was no such activities earning interest income for the three months ended September 30, 2024.

Current wording

Interest income for the three months ended March 31, 2026 was$2.3 million, an increase of $1.4 million, from $0.9 million forthe three months ended March 31, 2025. The increase was primarily driven by increased interest income of $1.3 million from our central cash management program, including daily cash sweep and money market deposit account programs, as well as $0.1 million of earned interest income from our captive insurance arrangementfor thethree months ended March 31, 2026.

Previous 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.

Current wording

Interest expense for the three months ended March 31, 2026, was $4.6 million, a decrease of $1.0 million, or 17.9%, from $5.6 million for the three months ended March 31, 2025. The decrease is primarily related to average lower debt balances under the Term Loan (as defined below) and average lower interest rates during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Previous 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.

Current wording

Income taxes for the three months ended March 31, 2026, were $20.3 million, an increase of $6.7 million, or 49.3%, from $13.6 million for the three months ended March 31, 2025, reflecting higher income taxes from greater pretax income for the period. The effective tax rate was 25.8% for the three months ended March 31, 2026, compared to 27.0% for the three months ended March 31, 2025.

Previous 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.

Current wording

Income from equity method investments for the three months ended March 31, 2026, was $2.6 million, a decrease of $0.8 million, or 23.5%, from $3.4 million for the three months ended March 31, 2025. The decrease primarily related to decreased activity on joint ventures for the period.

Previous 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.

Current wording

Net income for the three months ended March 31, 2026, was $58.3 million, an increase of $21.6 million, or 58.9%, from $36.7 million for the three months ended March 31, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses, and higher taxes on greater pretax income. Net income margin increased to 5.6% for the three months ended March 31, 2026, compared to 4.4% for the three months ended March 31, 2025.

Previous wording

Corporate and Other operating income percentage of revenues was calculated by dividing Corporate and Other operating income by consolidated revenues for the interim periods indicated.

Current wording

Corporate and Other operating income percentage of revenues was calculated by dividing Corporate and Other operating income by consolidated revenues for the periods indicated.

Previous wording

E&M segment revenues for the three months ended September 30, 2025, were $767.3 million, an increase of $230.4 million, or 42.9%, from $536.9 million for the three months ended September 30, 2024. The increase was primarily driven by higher workloads in the commercial, renewables and service & other end markets, particularly continued growth in the data center submarket, partially offset by lower industrial and institutional submarket activity.

Current wording

E&M segment revenues for the three months ended March 31, 2026, were $835.1 million, an increase of $186.9 million, or 28.8%, from $648.2 million for the three months ended March 31, 2025. The increase was primarily driven by higher revenues in the commercial and renewables end markets, particularly continued growth in the data center submarket, partially offset by decreased revenues in the institutional, industrial and service & other end markets.

Previous wording

•Renewables revenues increased $9.0 million with increased submarket activity across generation and commercial due to the timing of projects.

Current wording

•Renewables revenues increased $2.8 million with increased project activity within the commercial submarket, partially offset by lower project activity in the generation submarket due to the timing of projects.

Previous 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.

Current wording

•Industrial revenues decreased $8.0 million with reduced project activity in the oil & gas and manufacturing submarkets, partially offset by higher workloads in the high tech submarket.

Previous wording

•Service & other revenues increased $2.9 million due to increased repair and maintenance demand.

Current wording

•Service & other revenues were lower by $1.8 million due to decreased repair and maintenance demand.

Previous wording

Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted E&M revenues and accounted for approximately 3.8% of E&M revenues for the three months ended September 30, 2025, compared to 2.7% of E&M revenues for the three months ended September 30, 2024.

Current wording

Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted E&M revenues and accounted for approximately 5.6% of E&M revenues for the three months ended March 31, 2026, compared to 4.6% of E&M revenues for the three months ended March 31, 2025.

Previous wording

T&D segment revenues for the three months ended September 30, 2025, were $223.4 million, a decrease of $5.1 million, or 2.2%, from $228.5 million for the three months ended September 30, 2024. The modest decline was driven by lower utility end-market revenues, partially offset by increased workloads in the transportation end market.

Current wording

T&D segment revenues for the three months ended March 31, 2026, were $204.4 million, an increase of $19.4 million, or 10.5%, from $185.0 million for the three months ended March 31, 2025. The increase was primarily driven by increased workloads in the utility end market.

Previous 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.

Current wording

•Utility revenues increased $19.3 million from increased project activity across the transmission and storm submarkets due to timing of project availability.

Previous wording

•Transportation revenues increased $5.1 million with higher workloads in the traffic signalization submarket, partially offset by reduced project activity in the street lighting submarket.

Current wording

•Transportation revenues were relatively flat with higher workloads in the traffic signalization submarket, partially offset by reduced project activity in the street lighting submarket.

Previous wording

Changes in estimates associated with performance obligations that were satisfied or partially satisfied prior to the previous year end positively net impacted T&D revenues and accounted for approximately 1.4% of T&D revenues for the three months ended September 30, 2025, compared to 0.7% of T&D revenues for the three months ended September 30, 2024.

Current wording

Changes in estimates associated with performance obligations that were satisfied or partially satisfied in prior periods positively net impacted T&D revenues and accounted for approximately 4.4% of T&D revenues for the three months ended March 31, 2026, compared to 4.3% of T&D revenues for the three months ended March 31, 2025.

Previous wording

Operating income was also impacted by higher selling, general and administrative expenses, particularly increases in labor expenses of $7.8 million, as well as higher general expenses of $1.2 million. Operating income margin for our E&M segment increased to 7.4% for the three months ended September 30, 2025 compared to 6.5% for the three months ended September 30, 2024.

Current wording

Operating income was also impacted by higher SG&A expenses, primarily including increased labor expenses of $3.3 million and lower expected credit loss reversals of $1.6 million. Operating income margin for our E&M segment increased to 8.5% for the three months ended March 31, 2026, compared to 6.8% for the three months ended March 31, 2025.

Previous 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.

Current wording

Operating income in the T&D segment for the three months ended March 31, 2026, was $20.3 million, an increase of $5.8 million, or 40.0%, from $14.5 million for the three months ended March 31, 2025. The increase was the result of higher gross profit due to T&D segment revenue growth and efficient project execution, particularly within the utility end market, with T&D gross margin expansion of 14.7% for the three months ended March 31, 2026, compared to 12.7% for the three months ended March 31, 2025.

Previous 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.

Current wording

The increase in Corporate and Other costs during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily due to higher labor expenses of $1.6 million to support the operational growth of the business and $2.4 million of acquisition-related costs during the current period, along with higher other general SG&A expenses of $2.1 million.

Previous wording

Backlog is a common measurement in the construction services industry. Our determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog may also be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond our control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the backlog table below, we did not experience any material impacts related to delays or cancellations of planned projects that were included in backlog. The timing of contract awards, including contracts awarded pursuant to master service agreements, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any given point in time may not accurately represent the revenue or net income that is realized in any period, and backlog as of the end of the period may not be indicative of the revenue or net income expected to be realized within the next 12 months. Backlog should not be relied upon as a standalone indicator of future results. Factors noted in “Item 1A. Risk Factors” included in our 2024 Annual Report could cause revenues to be realized in periods and at levels that are different from originally projected.

Current wording

Backlog is a common measurement in the construction services industry. Our determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog may also be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond our control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the backlog table below, we did not experience any material impacts related to delays or cancellations of planned projects that were included in backlog. The timing of contract awards, including contracts awarded underneath master service agreements, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any given point in time may not accurately represent the revenue or net income that is realized in any period, and backlog as of the end of the period may not be indicative of the revenue or net income expected to be realized within the next 12 months. Backlog should not be relied upon as a standalone indicator of future results. See “Item 1A. Risk Factors” included in our 2025 Annual Report for factors that could cause revenues to be realized in periods and at levels that are different from originally projected.

Previous wording

All financial information presented in this Quarterly Report has been prepared in U.S. dollars in accordance with generally accepted accounting principles in the United States (“GAAP”), except for the presentation of the following non-GAAP financial measures: EBITDA, EBITDA margin and free cash flow. We evaluate our operating performance using EBITDA and EBITDA margin and evaluate our liquidity using free cash flow. These non-GAAP financial measures are not intended as alternatives to GAAP financial measures and have limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Because of these limitations, EBITDA, EBITDA margin and free cash flow should not be considered as replacements for net income, net income margin or cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ EBITDA, EBITDA margin and free cash flow having the same or similar names.

Current wording

All financial information presented in this Quarterly Report has been prepared in U.S. dollars in accordance with generally accepted accounting principles in the United States (“GAAP”), except for the presentation of the following non-GAAP financial measures: EBITDA, EBITDA margin and free cash flow. We evaluate our operating performance using EBITDA and EBITDA margin, and we evaluate our liquidity using free cash flow. These non-GAAP financial measures are not intended as alternatives to GAAP financial measures and have limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Because of these limitations, EBITDA, EBITDA margin and free cash flow should not be considered as replacements for net income, net income margin or cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ EBITDA, EBITDA margin and free cash flow having the same or similar names.

Previous wording

EBITDA is calculated by adding back interest expense, net of interest income, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues.

Current wording

EBITDA is calculated by adding back interest expense, net of interest income, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues. EBITDA and EBITDA margin are considered non-GAAP financial measures and are comparable to the corresponding GAAP measures of net income and net income margin, respectively.

Previous wording

We use free cash flow as a measure of liquidity that indicates how much cash we can produce after taking cash outflows from operations and assets into consideration. We believe this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about our financial health and our ability to generate cash, support additional debt obligations, pay future dividends and fund growth. Free cash flow does not represent our residual cash flow available for discretionary purposes.

Current wording

We use free cash flow as a measure of liquidity that indicates how much cash we can produce after taking cash outflows from operations and assets into consideration. We believe this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about our financial health and our ability to generate cash, support additional debt obligations, pay potential future dividends and fund growth. Free cash flow does not represent our residual cash flow available for discretionary purposes.

Previous wording

As of September 30, 2025 and December 31, 2024, we had $149.2 million and $86.0 million of cash, cash equivalents and restricted cash, respectively, including $19.3 million and $16.1 million of restricted cash held by the Captive Cell, respectively.

Current wording

As of March 31, 2026 and December 31, 2025, we had $293.4 million and $170.5 million of cash, cash equivalents and restricted cash, respectively, including $18.4 million and $17.8 million of restricted cash held by the Captive Cell, respectively.

Previous wording

The Term Loan requires quarterly amortization payments of 5.00% per annum of the original principal amount thereof. We repaid our required quarterly amortization payments totaling $11.3 million of the Term Loan during the nine months ended September 30, 2025.

Current wording

The Term Loan requires quarterly amortization payments of 5.00% per annum of the original principal amount thereof. We repaid our required quarterly amortization payments totaling $3.8 million of the Term Loan during each of the three months ended March 31, 2026 and 2025.

Previous wording

As of September 30, 2025 and December 31, 2024, we had $288.7 million and $300.0 million outstanding under the Term Loan, respectively, with $207.4 million and $209.4 million of available capacity under the Revolving Credit Facility, respectively, net of $17.6 million and $15.6 million of outstanding standby letters of credit, respectively.

Current wording

As of March 31, 2026 and December 31, 2025, we had $281.2 million and $285.0 million outstanding under the Term Loan, respectively, with $228.2 million of available capacity under the Revolving Credit Facility, net of $2.2 million of outstanding standby letters of credit, for each period presented.

Previous wording

In order to borrow under the debt instruments, we must be in compliance with the applicable covenants and certain other conditions, all of which we were in compliance with as of both September 30, 2025 and December 31, 2024. Non-compliance with applicable covenants or conditions may constitute an event of default under the loan agreement. Subject to any applicable cure periods, failure to remedy such a default may require the Company to pursue alternative sources of funding. For additional information on our debt arrangements, refer to Note 6 – Debt in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Current wording

In order to borrow under the debt instruments, we must be in compliance with the applicable covenants and certain other conditions, all of which we were in compliance with as of March 31, 2026. Non-compliance with applicable covenants or conditions may constitute an event of default under the Credit Agreement. Subject to any applicable cure periods, failure to remedy such a default may require us to pursue alternative sources of funding. For additional information on our debt arrangements, refer to Note 6 – Debt in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Previous wording

Working capital, defined as current assets minus current liabilities, was $523.5 million and $403.9 million as of September 30, 2025 and December 31, 2024, respectively. Our working capital requirements may increase when we commence multiple projects or particularly large projects because labor, subcontractor, inventory and certain other costs typically become payable before the receivables resulting from work performed are collected. Working capital may also increase when we incur costs for work that is the subject of unpaid retainage, change orders and claims. The typical payment billing terms are due within 30 days but may differ depending on contract terms. Retention on receivables can impact the cash collection cycle beyond expenses incurred. The timing of billings and project completions can contribute to changes in unbilled revenue. As of September 30, 2025, we expect that substantially all unbilled receivables will be billed to customers in the normal course of business within the next 12 months.

Current wording

Working capital, defined as current assets minus current liabilities, was $617.2 million and $560.2 million as of March 31, 2026 and December 31, 2025, respectively. Our working capital requirements may increase when we commence multiple projects or particularly large projects because labor, subcontractor, inventory and certain other costs typically become payable before the receivables resulting from work performed are collected. Working capital may also increase when we incur costs for work that is the subject of unpaid retainage, change orders and claims. The typical payment billing terms are due within 30 days but may differ depending on contract terms. Retention on receivables can impact the cash collection cycle beyond expenses incurred. The timing of billings and project completions can contribute to changes in unbilled revenue. As of March 31, 2026, we expect that substantially all unbilled receivables will be billed to customers in the normal course of business within the next 12 months.

Previous wording

Our cash capital expenditures for thenine months ended September 30, 2025, were$42.1 million, or $33.8 million net of proceeds from asset disposals, compared to$34.5 million, or$24.9 million net of proceeds from asset disposals, for thenine months ended September 30, 2024. Capital expenditures were primarily used for vehicle, equipment and building investments to support the growth of our business. For thenine months ended September 30, 2025, capital expenditures were funded by internal sources and borrowings under our credit and financing arrangements. Whereas, for thenine months ended September 30, 2024, capital expenditures were funded by internal sources and related-party borrowings from MDU Resources and Centennial.

Current wording

Our cash capital expenditures for thethree months ended March 31, 2026, were$15.5 million, or $11.8 million net of proceeds from asset disposals, compared to$18.5 million, or$15.2 million net of proceeds from asset disposals, for thethree months ended March 31, 2025. Capital expenditures were primarily used for vehicle, equipment and building investments to support the growth of our business. For the three months ended March 31, 2026 and 2025, capital expenditures were funded by internal sources and borrowings under our credit and financing arrangements.

Previous wording

We expect capital expenditures and commitments for equipment purchase, lease and rental arrangements to be necessary for the foreseeable future in order to meet anticipated demand for our services. We still expect gross capital expenditures for full-year 2025 to be in the range of $65.0 million to $70.0 million. Actual capital expenditures may increase or decrease depending upon business activity levels, as well as ongoing assessments of equipment leasing versus purchasing decisions based on short- and long-term equipment requirements. We continuously monitor our capital expenditures for project delays and changes in economic viability and adjust as necessary. We anticipate that the combination of cash on hand, cash flows from operations, credit facilities and issuances of debt and equity securities, if necessary, will provide sufficient funding to enable us to meet the need of future capital expenditures.

Current wording

We expect capital expenditures and commitments for equipment purchase, lease and rental arrangements to be necessary for the foreseeable future in order to meet anticipated demand for our services. We still expect gross capital expenditures for full-year 2026 to be in the range of $90.0 million to $100.0 million. Actual capital expenditures may increase or decrease depending upon business activity levels, as well as ongoing assessments of equipment leasing versus purchasing decisions based on short- and long-term equipment requirements. We continuously monitor our capital expenditures for project delays and changes in economic viability and adjust, as necessary. We anticipate that the combination of cash on hand, cash flows from operations, credit facilities and issuances of debt and equity securities, if necessary, will provide sufficient funding to enable us to meet the need of future capital expenditures.