Everus Construction Group, Inc.

Note 12 –Income Taxes

The Company’s quarterly income tax provision is measured using an estimate of its consolidated annual effective tax rate, adjusted in the current period for discrete income tax items, within the periods presented.

For the three and nine months ended September 30, 2026, income tax expense was $29.4 million and $79.0 million, respectively, resulting in effective tax rates of 24.2% and 25.2%, respectively. The effective tax rates for the three and nine months ended September 30, 2026 differed from the 2026 statutory tax rate of 21% primarily due to state income taxes, net of federal income taxes, and certain unfavorable permanent book-tax differences due to meals and entertainment expenses and non-deductible employee compensation, partially offset by research & development tax credits.

For the three and nine months ended September 30, 2025, income tax expense was $20.6 million and $53.6 million, respectively, resulting in an effective tax rate of 26.6% and 26.8%, respectively. The effective tax rates for the three and nine months ended September 30, 2025 differed from the 2025 statutory tax rate of 21% primarily due to state income taxes, net of federal income taxes, and certain unfavorable permanent book-tax differences due to meals and entertainment expenses and non-deductible employee compensation.

The effective tax rates for the three and nine months ended September 30, 2026 differed from the effective tax rates for the three and nine months ended September 30, 2025 due to changes in the Company’s permanent book-tax differences between those periods, specifically changes in the Company’s state income taxes and increased non-deductible employee compensation, partially offset by a favorable stock compensation book-tax difference and increased research & development tax credits.