Everus Construction Group, Inc.

Note 8 –Leases

Most of the leases the Company enters into are for equipment, buildings and vehicles as part of its ongoing operations. The Company also leases certain equipment to third parties.

Lessee Accounting

The leases the Company has entered into as part of its ongoing operations consist of operating leases. Operating leases are included in Operating lease right-of-use assets, Current portion of operating lease liabilities and Operating lease liabilities within the unaudited condensed consolidated balance sheets. The corresponding lease costs are included in Cost of sales and Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.

In addition, the Company has entered into short-term leases to help support its ongoing operations, consisting primarily of short-term equipment and vehicle leases, which generally have lease terms of less than one year.

The following table provides information on the Company's lease costs for operating leases:

The following is summary information of lease terms and discount rates for operating leases as of:

The following is a summary of other information and supplemental cash flow information related to operating leases:

As disclosed in Note 4 – Acquisitions, the Company acquired $38.7 million of operating lease right-of-use assets and operating lease liabilities, respectively, during the nine months ended September 30, 2026, which are included in the disclosure above concerning right-of-use assets obtained in exchange for new lease liabilities for the respective period.

The reconciliation of future undiscounted cash flows to operating lease liabilities, including current portion of operating lease liabilities, presented on the unaudited condensed consolidated balance sheet as of September 30, 2026 was as follows:

Lessor Accounting

The Company leases certain equipment to third parties. These leases are considered short-term operating leases with lease terms of less than 12 months, with the majority being month-to-month leases currently. The Company recognizes revenues from operating leases in Operating revenues in the unaudited condensed consolidated statements of income on a straight-line basis over the respective operating lease terms.

The following table provides information on the Company's lease income for operating leases:

The following table is a maturity analysis of undiscounted cash flows relating to lease payments expected to be received by the Company as a lessor of operating leases as of:

The majority of the total lease payments are currently from month-to-month leases as stated above and are included in Receivables, net on the unaudited condensed consolidated balance sheets as rent receivables due to the timing of billings compared to earned operating lease income.

Equipment under lessor operating leases, which was included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, was as follows as of: