10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ______________

Commission file number 001-42276

Everus Construction Group, Inc.

(Exact name of Registrant as specified in its charter)

Delaware	99-1952207
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

1730 Burnt Boat Drive Bismarck, North Dakota	58503
(Address of principal executive offices)	(Zip code)

(701) 221-6400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of exchange on which  registered
Common Stock, par value $0.01 per share	ECG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of November 18, 2024: 50,972,059 shares.

INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	Page
Industry Information	2
Part I -- Financial Information	3
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Statements of Income -- Three and Nine Months Ended September 30, 2024 and 2023	3
Condensed Consolidated Statements of Comprehensive Income -- Three and Nine Months Ended September 30, 2024 and 2023	4
Condensed Consolidated Balance Sheets -- September 30, 2024 and December 31, 2023	5
Condensed Consolidated Statements of Equity -- Three and Nine Months Ended September 30, 2024 and 2023	6
Condensed Consolidated Statements of Cash Flows -- Nine Months Ended September 30, 2024 and 2023	7
Notes to the Condensed Consolidated Financial Statements	8
1. Background and Nature of Operations	8
2. Basis of Presentation	8
3. Summary of Significant Accounting Policies	10
4. Revenue from Contracts with Customers	13
5. Goodwill and Other Intangible Assets	18
6. Fair Value Measurements	19
7. Leases	20
8. Earnings Per Share	22
9. Accumulated Other Comprehensive Loss	23
10. Income Taxes	24
11. Supplemental Cash Flow Information	24
12. Business Segment Data	25
13. Employee Benefit Plans	26
14. Commitments and Contingencies	27
15. Related-Party Transactions	28
16. Subsequent Events	30
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3. Quantitative and Qualitative Disclosures About Market Risk	47
Item 4. Controls and Procedures	49
Part II -- Other Information	50
Item 1. Legal Proceedings	50
Item 1A. Risk Factors	50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 5. Other Information	50
Item 6. Exhibits	53
Signatures	55

1

Industry Information

Any industry data included in this Quarterly Report on Form 10-Q (“Quarterly Report”) regarding industry size and/or relative industry position is derived from a variety of sources, including company research, third-party studies and surveys, industry and general publications, and estimates based on Everus Construction Group, Inc.’s (“Everus”) knowledge and experience in the industries in which it operates. Everus’ estimates, if any, have been based on information obtained from its customers, suppliers, trade and business organizations, and other contacts in the industry. Everus is responsible for all the disclosures contained in this Quarterly Report, and Everus believes that any third-party data is generally reliable and that its estimates are accurate as of the date of this Quarterly Report. Further, Everus’ estimates and assumptions involve risks and uncertainties and are subject to change based on various factors, including those discussed in the “Risk Factors” in Everus’ Registration Statement on Form 10, which is not incorporated by reference herein. These and other factors could cause results to differ materially from those expressed in the estimates and assumptions.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Everus Construction Group, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands, except per share amounts)
Operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672
Cost of sales	671,085		632,499		1,836,853		1,976,534
Gross profit	89,900		84,907		253,194		242,138
Selling, general and administrative expenses	36,191		34,816		109,292		102,519
Operating income	53,709		50,091		143,902		139,619
Interest expense	2,851		4,596		8,823		13,483
Other income	1,071		1,208		3,683		2,705
Income before income taxes and income from equity method investments	51,929		46,703		138,762		128,841
Income taxes	13,995		11,423		37,606		32,822
Income from equity method investments	3,833		734		7,797		4,718
Net income	$	41,767	$	36,014	$	108,953	$	100,737
Earnings per share:
Basic	$	0.82	$	0.71	$	2.14	$	1.98
Diluted	$	0.82	$	0.71	$	2.14	$	1.98
Weighted average common shares outstanding(1):
Basic	50,972		50,972		50,972		50,972
Diluted	50,972		50,972		50,972		50,972

__________________

(1)     Prior to the Separation (as defined below), Everus Construction had 1,000 common shares issued and outstanding. On October 31, 2024, as part of the Distribution (as defined below), 50,972,059 shares of Everus common stock were issued and outstanding. Basic and diluted earnings per share for periods prior to the Separation and Distribution have been retrospectively adjusted to reflect the Everus shares outstanding on the Distribution date. Refer to Note 1 and Note 2 for more information.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

Everus Construction Group, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Net income	$	41,767	$	36,014	$	108,953	$	100,737
Other comprehensive income:
Reclassification adjustment for loss on derivative instruments included in net income, net of tax benefit of $0 for each of the three and nine months ended September 30, 2024, and $0 and $1 for the three and nine months ended September 30, 2023, respectively	—		—		—		35
Other comprehensive income	—		—		—		35
Comprehensive income attributable to common stockholders	$	41,767	$	36,014	$	108,953	$	100,772

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Everus Construction Group, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2024		December 31, 2023
	(In thousands, except share and per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	553	$	1,567
Receivables, net of allowances of $7,300 and $7,967, respectively	632,131		534,100
Costs and estimated earnings in excess of billings	174,102		158,529
Due from related-party	12,270		11,507
Inventories	46,923		42,709
Prepayments and other current assets	20,553		17,651
Total current assets	886,532		766,063
Noncurrent assets:
Property, plant and equipment, net of accumulated depreciation of $153,272 and $143,831, respectively	129,361		116,018
Goodwill	143,224		143,224
Other intangible assets, net of accumulated amortization of $9,984 and $8,738, respectively	466		2,004
Operating lease right-of-use assets	68,852		53,233
Noncurrent retention receivable	32,849		21,355
Investments	17,648		8,413
Other	360		272
Total noncurrent assets	392,760		344,519
Total assets	$	1,279,292	$	1,110,582
Liabilities and Stockholder’s Equity
Current liabilities:
Billings in excess of costs and estimated earnings	$	221,662	$	198,231
Accounts payable	160,873		116,573
Taxes payable	14,006		8,557
Due to related-party	15,870		14,615
Accrued compensation	66,960		44,721
Current portion of operating lease liabilities	26,110		21,143
Accrued payroll-related liabilities	37,292		35,342
Other accrued liabilities	16,788		13,001
Total current liabilities	559,561		452,183
Noncurrent liabilities:
Related-party notes payable	214,525		168,531
Deferred income taxes	965		6,535
Operating lease liabilities	43,247		32,504
Other	7,691		1,979
Total noncurrent liabilities	266,428		209,549
Total liabilities	$	825,989	$	661,732
Commitments and contingencies
Common stockholder’s equity:
Common Stock, stated value $1, no par value; 1,000 shares authorized, issued and outstanding	$	1	$	1
Other paid-in capital	137,947		136,184
Retained earnings	315,355		312,665
Total stockholder’s equity	453,303		448,850
Total liabilities and stockholder’s equity	$	1,279,292	$	1,110,582

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Everus Construction Group, Inc.

Condensed Consolidated Statements of Equity

(Unaudited)

	Common Stock
(In thousands, except shares)	Shares	Amount		Other Paid-in Capital		Retained Earnings		Total
Balance as of December 31, 2023	1,000	$	1	$	136,184	$	312,665	$	448,850
Net income	—	—		—		28,214		28,214
Net transfers from (to) Centennial	—	—		1,006		(13,764)		(12,758)
Balance as of March 31, 2024	1,000	1		137,190		327,115		464,306
Net income	—	—		—		38,972		38,972
Net transfers from (to) Centennial	—	—		463		(13,750)		(13,287)
Balance as of June 30, 2024	1,000	1		137,653		352,337		489,991
Net income	—	—		—		41,767		41,767
Net transfers from (to) Centennial	—	—		294		(78,749)		(78,455)
Balance as of September 30, 2024	1,000	$	1	$	137,947	$	315,355	$	453,303

	Common Stock							Accumulated Other Comprehensive Loss
(In thousands, except shares)	Shares	Amount		Other Paid-in Capital		Retained Earnings				Total
Balance as of December 31, 2022	1,000	$	1	$	136,327	$	245,954	$	(35)	$	382,247
Net income	—	—		—		26,074		—		26,074
Other comprehensive loss	—	—		—		—		(11)		(11)
Net transfers from (to) Centennial	—	—		(1,207)		(12,508)		—		(13,715)
Balance as of March 31, 2023	1,000	1		135,120		259,520		(46)		394,595
Net income	—	—		—		38,649		—		38,649
Other comprehensive income	—	—		—		—		46		46
Net transfers from (to) Centennial	—	—		398		(13,001)		—		(12,603)
Balance as of June 30, 2023	1,000	1		135,518		285,168		—		420,687
Net income	—	—		—		36,014		—		36,014
Net transfers from (to) Centennial	—	—		201		(12,506)		—		(12,305)
Balance as of September 30, 2023	1,000	$	1	$	135,719	$	308,676	$	—	$	444,396

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

Everus Construction Group, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine months ended September 30,
	2024		2023
	(in thousands)
Operating activities:
Net income	$	108,953	$	100,737
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	16,961		15,658
Amortization	1,538		1,575
Deferred income taxes	(5,570)		(734)
Provision for credit losses	(51)		4,385
Stock-based compensation costs	1,034		517
Unrealized gain on investments	(531)		—
Gain on sale of assets	(5,513)		(6,297)
Equity in earnings of unconsolidated affiliates, net of distributions	(4,788)		(4,718)
Changes in current assets and liabilities, net of acquisitions:
Receivables	(97,980)		(5,828)
Due from related-party	(763)		1,381
Costs and estimated earnings in excess of billings	(15,573)		(44,802)
Inventories	(4,214)		(8,984)
Other current assets	(2,303)		(2,512)
Accounts payable	44,265		(11,125)
Due to related-party	10		356
Billings in excess of costs and estimated earnings	23,431		12,566
Other current liabilities	32,760		6,540
Other noncurrent changes	(8,984)		2,647
Net cash provided by operating activities	82,682		61,362
Investing activities:
Capital expenditures	(34,506)		(28,134)
Net proceeds from sale or disposition of property	9,587		12,247
Investments	(570)		(535)
Net cash used in investing activities	(25,489)		(16,422)
Financing activities:
Repayment of related-party notes payable	—		(45,000)
Repayment of related-party short-term notes payable	—		(27,000)
Net amounts received from related-party cash management program	45,994		62,527
Transfers to Centennial	(104,201)		(37,026)
Net cash used in financing activities	(58,207)		(46,499)
Decrease in cash and cash equivalents	(1,014)		(1,559)
Cash and cash equivalents - beginning of period	1,567		2,112
Cash and cash equivalents - end of period	$	553	$	553

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

Everus Construction Group, Inc.

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 1 – Background and Nature of Operations

Everus Construction, Inc. (formerly known as MDU Construction Services Group, Inc.) (“Everus Construction”) is incorporated under the laws of the State of Delaware and operated historically as a wholly owned subsidiary of CEHI, LLC (“Centennial”), which is a wholly owned subsidiary of MDU Resources Group, Inc. (“MDU Resources” or “MDU”).

On November 2, 2023, MDU Resources announced its intent to pursue a tax-free spinoff of Everus Construction from MDU Resources (the “Separation”). In anticipation of the Separation, MDU Resources formed a new wholly owned subsidiary, Everus Construction Group, Inc. (the “Company” or “Everus”), that would become the new parent company of Everus Construction.

On October 31, 2024, MDU Resources completed the Separation by transferring Everus Construction, inclusive of all its assets and liabilities, to Everus and distributing 50,972,059 shares of Everus common stock ($0.01 par value) to MDU Resources stockholders of record as of October 21, 2024 (the “Distribution”). The Distribution was structured as a pro rata distribution of one share of Everus common stock for every four shares of MDU Resources common stock (such ratio, the “Distribution Ratio”). MDU Resources did not distribute any fractional shares of Everus common stock to its stockholders as part of the Distribution. Instead, MDU Resources’ stockholders will receive cash in lieu of any fractional shares of Everus common stock that they would have received after application of the Distribution Ratio.

As a result of the Separation and Distribution, Everus is now a separate, independent publicly traded company and its common stock is listed under the symbol “ECG” on the New York Stock Exchange. More information on the Separation and Distribution, as well as the Company's historical results, can be found within the Company's Registration Statement on Form 10 (“Form 10”), which is not incorporated by reference herein.

The Separation was completed pursuant to a separation and distribution agreement and other agreements with MDU Resources related to the Separation, including, but not limited to, a transition services agreement, a tax matters agreement and an employee matters agreement. The Company has incurred costs in establishing itself as an independent public entity and expects additional ongoing expenses related to its continued operations as such.

Prior to the Separation, Everus Construction was the construction services segment of MDU Resources. The Company provides specialty contracting services to a diverse set of end markets across the United States, which are provided to utilities and manufacturing, transportation, commercial, industrial, institutional, renewables and governmental customers. The Company operates throughout most of the United States through two operating segments, which represent its two reportable segments:

Electrical & Mechanical: Contracting services including construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services to customers in both the public and private sectors.

Transmission & Distribution: Contracting services including construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as design, manufacturing and distribution of overhead and underground transmission line construction equipment and tools.

Note 2 – Basis of Presentation

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. The accompanying unaudited condensed consolidated financial statements and footnotes 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 the Company operated on a standalone basis during the periods presented. However, the unaudited condensed consolidated financial statements do not necessarily reflect what the Company’s results of

8

operations, financial position and cash flows would have been had it operated as a separate, publicly traded company during the periods presented and may not be indicative of its future performance.

The accompanying unaudited condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“GAAP”). Pursuant to GAAP, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements included in the Company’s Form 10. The information includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the unaudited condensed consolidated financial statements and are of a normal recurring nature.

The unaudited condensed consolidated balance sheets reflect the assets and liabilities of Centennial that were specifically identifiable as being directly attributable to the Company for the periods presented prior to the Separation.

All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company were included in the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements also include allocated expenses for certain functions that were provided by MDU Resources and Centennial, including, but not limited to, certain general corporate expenses related to senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit, risk management and other shared services. These general corporate expenses were included in the unaudited condensed consolidated statements of income within Selling, general and administrative expenses. The amounts allocated were $4.9 million and $27.6 million for the three and nine months ended September 30, 2024, respectively, and $4.5 million and $21.5 million for the three and nine months ended September 30, 2023, respectively. These expenses were allocated to the Company on the basis of direct usage where identifiable, with the remainder principally allocated on the basis of percent of total capital invested or other allocation methodologies that were considered to be a reasonable reflection of the utilization of the services provided to the benefits received. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party.

Earnings per share information has been retrospectively adjusted for all periods presented on the unaudited condensed consolidated statements of income to reflect the Distribution. Refer to Note 8 – Earnings Per Share for more information on the share count used in the earnings per share calculations.

Following the Separation, the Company now performs certain functions using its own resources or purchased services. For an interim period of up to 20 months following the Separation, however, certain functions will continue to be provided by MDU Resources under a transition services agreement.

Prior to the Separation, the Company historically participated in MDU Resources’ centralized cash management program through Centennial, including its overall financing arrangements. The Company had related-party agreements in place with Centennial for the financing of its capital needs, which are reflected as Related-party notes payable on the unaudited condensed consolidated balance sheets. Interest expense in the unaudited condensed consolidated statements of income reflected the allocation of interest on borrowing and funding associated with the related-party agreements. Following the Separation, the Company no longer participates in MDU Resources’ centralized cash management program. The Company has implemented its own centralized cash management program and has access to third-party credit facilities to fund day-to-day operations. Refer to Note 15 – Related-Party Transactions and Note 16 – Subsequent Events for additional information.

Prior to the Separation, MDU Resources maintained various benefit and stock-based compensation plans at a corporate level and the Company’s employees participated in these programs. The costs associated with its employees are included in the Company’s unaudited condensed consolidated financial statements. Following the Separation, Everus has its own benefit and stock-based compensation plans at a corporate level that its employees participate in.

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Principles of Consolidation

The unaudited condensed consolidated financial statements were prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed consolidated financial statements.

Related-party transactions between the Company, MDU Resources, Centennial or other MDU Resources subsidiaries, for general operating activities, the Company's participation in MDU Resources’ centralized cash management program through Centennial, and intercompany debt, were included in the unaudited condensed consolidated financial statements. These related-party transactions were historically settled in cash and were reflected in the unaudited condensed consolidated balance sheets as Due from related-party, Due from related-party - noncurrent, Due to related-party or Related-party notes payable. The aggregate net effect of general related-party operating activities was reflected in the unaudited condensed consolidated statements of cash flows within operating activities. The effects of the Company’s participation in MDU Resources’ centralized cash management program and intercompany debt arrangements were reflected in the unaudited condensed consolidated statements of cash flows within investing and financing activities. Refer to Note 15 – Related-Party Transactions for additional information on related-party transactions.

Note 3 – Summary of Significant Accounting Policies

New Accounting Standards

Changes to GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs.

10

The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its financial statements and/or disclosures:

Standard	Description	Effective Date	Impact on Financial Statements/Disclosures
Recently adopted ASUs
ASU 2022-06 – Reference Rate Reform (Topic 848): Deferral of Sunset Date	In December 2022, the FASB included a sunset provision within ASC 848 based on expectations of when the London Inter-Bank Offered Rate (“LIBOR”) would cease to be published. At the time ASU 2020-04 was issued, the UK Financial Conduct Authority had established its intent to cease overnight tenors of LIBOR after December 31, 2021. In March 2021, the UK Financial Conduct Authority announced that the intended cessation date of the overnight tenors of LIBOR would be June 30, 2023, which is beyond the current sunset date of ASC 848. The amendments in this Update defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in ASC 848. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must have identified a replacement rate by June 30, 2023. New contracts will incorporate a new reference rate, which includes the Secured Overnight Financing Rate (“SOFR”).	Effective upon issuance (December 21, 2022) through December 31, 2024.	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR. The Company determined the adoption of the guidance did not have a material impact on its unaudited condensed consolidated financial statements.

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Standard	Description	Effective Date	Impact on Financial Statements/Disclosures
Recently issued ASUs not yet adopted
ASU 2023-05 - Business Combinations - Joint Venture Formations - Recognition and Initial Measurement	In August 2023, the FASB issued guidance on accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statement in order to provide decision useful information to investors and other allocators of capital (collectively investors) in a joint venture's financial statements and reduce diversity in practice. The new basis of accounting will require that a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with the exceptions to fair value measurement that are consistent with the business combinations guidance). A joint venture that was formed before January 1, 2025, may elect to apply the guidance retrospectively if it has sufficient information.	Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.	The Company is currently evaluating the impact the guidance will have on its interim and annual disclosures for the year ended December 31, 2025.
ASU 2023-07 - Segment Reporting - Improvements to Reportable Segment Disclosures	In November 2023, the FASB issued guidance on improving financial reporting by requiring disclosure on incremental segment information, primarily through enhanced disclosures about significant segment expenses on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses.	Effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with prior periods disclosed in the period of adoption.	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024, and future interim periods.
ASU 2023-09 - Income Taxes - Improvements to Income Tax Disclosures	The FASB issued guidance to address investors’ requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income tax paid information and effectiveness of income tax disclosures.	Effective for fiscal years beginning after December 15, 2024.	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the unaudited condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; property depreciable lives; tax provisions; revenue recognized using the cost-to-cost measure of progress for contracts; expected credit losses; loss contingencies; costs on construction contracts; unbilled revenues; actuarially determined benefit costs; lease classification; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation. As additional information becomes available, or actual

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amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. 

Receivables and Allowance for Expected Credit Losses

Receivables consist primarily of trade receivables from the sale of goods and services net of expected credit losses. Receivables, net is summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Trade receivables:
Completed contracts	$	33,425	$	42,467
Contracts in progress	532,513		409,872
Retention receivables	67,279		84,474
Other	6,214		5,254
Receivables, gross	639,431		542,067
Less: expected credit losses	7,300		7,967
Receivables, net	$	632,131	$	534,100

The Company's trade receivables are all due in 12 months or less. The total balance of receivables past due 90 days or more was $74.5 million and $42.0 million as of September 30, 2024 and December 31, 2023, respectively.

Details of the Company's expected credit losses, disclosed within Receivables, net for the respective periods presented below, were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	7,257	$	4,717	$	7,967	$	2,161
Current expected credit loss provision	83		1,734		(51)		4,385
Less: write-offs charged against the allowance	84		27		672		181
Credit loss recoveries collected	44		—		56		59
Balance at end of period	$	7,300	$	6,424	$	7,300	$	6,424

Inventories

Inventories consist primarily of manufactured equipment held for resale and/or rental of $40.6 million and $37.2 million as of September 30, 2024 and December 31, 2023, respectively, and materials and supplies of $6.3 million and $5.5 million as of September 30, 2024 and December 31, 2023, respectively. These inventories are stated at the lower of average cost or net realizable value. The value of inventory may decrease due to obsolescence, physical deterioration, damage, costs to repair or other causes. Inventory valuation write-downs are determined based on specific facts and circumstances and were immaterial as of September 30, 2024 and December 31, 2023.

Note 4 – Revenue from Contracts with Customers

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

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As part of the adoption of Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.

Contract Estimates and Changes in Estimates

Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management's estimates of additional contract revenues that have been earned and are probable of collection.

As of September 30, 2024 and December 31, 2023, $37.8 million and $57.3 million, respectively, of unexecuted change orders were included in contract transaction price and in Costs and estimated earnings in excess of billings on the unaudited condensed consolidated balance sheets. The Company was in the process of negotiating execution of these change orders in the normal course of business and the recognized amounts represent its best estimates of additional contract revenues for which it is not probable that a significant reversal of the revenue amounts will occur in the future.

As of September 30, 2024 and December 31, 2023, in the normal course of business, the Company had additional priced work not approved by the customer to begin project work of approximately $233.1 million and $187.4 million, respectively, with minimal costs incurred. These amounts were excluded from contract transaction price. In addition, claim positions of $42.7 million were excluded from the contract transaction price as of both September 30, 2024 and December 31, 2023. The Company continues to evaluate these claims.

As of September 30, 2024 and December 31, 2023, the Company had recorded loss provisions of $1.2 million and $1.5 million, respectively, in Billings in excess of costs and estimated earnings on the unaudited condensed consolidated balance sheets related to these contracts that are still being completed and remain recorded.

The Company received notification from a customer on a large project with a contract that was billed on a time and materials basis with no stated maximum price, that it is withholding payment of approximately $31.2 million on remaining outstanding billings, including retention. The Company believes it has substantial defenses against these claims based upon the terms of the contract and it has performed under the terms of the contract. Therefore, the Company believes collection of the remaining outstanding billings, including retention is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.

Disaggregation of Revenue

In the following tables, revenues are disaggregated by contract type and customer type for each reportable segment. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. For more information on the Company’s reportable segments, refer to Note 12 – Business Segment Data.

14

The following tables present revenue disaggregated by contract type:

Three months ended September 30, 2024	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	326,972	$	106,936	$	433,908
Unit-price	15,031		46,848		61,879
Cost reimbursable*	194,892		74,720		269,612
Total contract revenues	536,895		228,504		765,399
Eliminations	(2,154)		(2,260)		(4,414)
Total operating revenues	$	534,741	$	226,244	$	760,985

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Three months ended September 30, 2023	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	272,042	$	92,607	$	364,649
Unit-price	18,401		29,590		47,991
Cost reimbursable*	226,490		82,231		308,721
Total contract revenues	516,933		204,428		721,361
Eliminations	(2,555)		(1,400)		(3,955)
Total operating revenues	$	514,378	$	203,028	$	717,406

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Nine months ended September 30, 2024	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	966,035	$	282,582	$	1,248,617
Unit-price	49,254		118,016		167,270
Cost reimbursable*	466,489		223,179		689,668
Total contract revenues	1,481,778		623,777		2,105,555
Eliminations	(5,627)		(9,881)		(15,508)
Total operating revenues	$	1,476,151	$	613,896	$	2,090,047

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Nine months ended September 30, 2023	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	784,334	$	261,457	$	1,045,791
Unit-price	62,488		62,401		124,889
Cost reimbursable*	833,388		225,593		1,058,981
Total contract revenues	1,680,210		549,451		2,229,661
Eliminations	(7,262)		(3,727)		(10,989)
Total operating revenues	$	1,672,948	$	545,724	$	2,218,672

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

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The following table presents revenue disaggregated by customer type:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Commercial	$	327,403	$	266,587	$	860,088	$	947,792
Industrial	76,493		116,013		236,349		367,331
Institutional	93,390		76,276		274,916		195,178
Renewables	10,414		19,244		27,551		43,947
Service & other	29,195		38,813		82,874		125,962
Total Electrical & Mechanical	536,895		516,933		1,481,778		1,680,210
Utility	206,669		188,680		559,922		508,850
Transportation	21,835		15,748		63,855		40,601
Total Transmission & Distribution	228,504		204,428		623,777		549,451
Eliminations	(4,414)		(3,955)		(15,508)		(10,989)
Total operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672

Uncompleted Contracts and Contract Assets and Contract Liabilities

Costs, estimated earnings and billings on uncompleted contracts are summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Costs incurred on uncompleted contracts	$	6,399,940	$	6,390,641
Estimated earnings	875,983		840,994
Costs and estimated earnings on uncompleted contracts	7,275,923		7,231,635
Less: billings to date	7,323,483		7,271,337
Net contract liabilities	$	(47,560)	$	(39,702)

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in contract assets or contract liabilities.

Contract assets, located within Costs and estimated earnings in excess of billings on the unaudited condensed consolidated balance sheets, occur when revenues are recognized under the cost-to-cost measure of progress, which exceed amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. Contract assets are not considered a significant financing component as they are intended to protect the customer in the event the Company does not perform on its obligations under the contract.

Contract liabilities, located within Billings in excess of costs and estimated earnings on the unaudited condensed consolidated balance sheets, occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. Contract liabilities are not considered to have a significant financing component as they are used to meet working capital requirements that generally are higher in the early

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stages of a contract and are intended to protect the Company from the counterparty failing to meet its obligations under the contract.

Contract assets and contract liabilities consisted of the following:

	September 30, 2024		December 31, 2023
	(In thousands)
Unbilled revenue	$	174,102	$	158,529
Contract assets	$	174,102	$	158,529
Deferred revenue	$	220,478	$	196,686
Accrued loss provision	1,184		1,545
Contract liabilities	$	221,662	$	198,231

The following table presents the opening and closing balances of contract assets and contract liabilities as of:

	September 30, 2024						December 31, 2023
	Contract Assets		Contract Liabilities		Net Contract Liabilities		Contract Assets		Contract Liabilities		Net Contract Liabilities
	(In thousands)
Balance at beginning of period	$	158,529	$	(198,231)	$	(39,702)	$	153,907	$	(166,189)	$	(12,282)
Change during period	15,573		(23,431)		(7,858)		4,622		(32,042)		(27,420)
Balance at end of period	$	174,102	$	(221,662)	$	(47,560)	$	158,529	$	(198,231)	$	(39,702)

Contract assets and contract liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and unapproved change orders and contract claims recognized as revenues. The primary driver of the difference between the Company's opening and closing contract asset and contract liability balances is the timing of the Company's billings in relation to its performance of work.

The Company recognized a net increase in revenues of $47.4 million and $167.0 million for the three and nine months ended September 30, 2024, respectively, related previously recognized deferred revenues that were included in contract liabilities as of December 31, 2023. The Company a net increase in revenues of $6.3 million and $162.6 million for the three and nine months ended September 30, 2023, respectively, related to previously recognized deferred revenues that were included in contract liabilities as of December 31, 2022.

The Company recognized a net increase in revenues of $25.8 million and $71.5 million for the three and nine months ended September 30, 2024, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $20.2 million and $41.4 million for the three and nine months ended September 30, 2023, respectively, from performance obligations satisfied in prior periods.

Retainage under terms of the Company’s contracts was $100.1 million and $105.8 million as of September 30, 2024 and December 31, 2023, respectively. Retainage represents amounts that have been contractually invoiced to customers and where payments have been partially withheld pending the achievement of certain milestones, satisfaction of other contractual conditions, or completion of the project. As of September 30, 2024, the Company estimated that approximately 67 percent of the retainage outstanding will be collected within the next 12 months.

Remaining Performance Obligations

The remaining performance obligations, also referred to as backlog, include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues 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

17

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. The majority of the Company's contracts for contracting services have an original duration of less than one year.

As of September 30, 2024 and December 31, 2023, the aggregate amount of the transaction price allocated to the Company's remaining performance obligations was $2.88 billion and $2.01 billion, respectively. The table below shows additional information regarding the Company’s remaining performance obligations as of September 30, 2024, including an estimate of when the Company expects to recognize its remaining performance obligations as revenues:

	Within 12 months		Greater than 12 months
	(In thousands)
Remaining performance obligations:
Electrical & Mechanical	$	1,913,264	$	654,607
Transmission & Distribution	270,415		46,547
Total	$	2,183,679	$	701,154

Note 5 – Goodwill and Other Intangible Assets

Goodwill

The Company’s carrying amount of goodwill remained unchanged at $143.2 million as of both September 30, 2024 and December 31, 2023. The Company has determined that its reporting units are Electrical & Mechanical, Transmission & Distribution, and Wagner Smith Equipment (“WSE”). WSE is within the Transmission & Distribution reportable segment. Goodwill also remained unchanged for each reportable segment as of both September 30, 2024 and December 31, 2023, with $115.9 million for Electrical & Mechanical and $27.3 million for Transmission & Distribution. No impairments of goodwill were recorded for the three and nine months ended September 30, 2024 and 2023.

Other Intangible Assets

Other amortizable intangible assets were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Noncompete agreements	$	—	$	292
Less: accumulated amortization	—		292
Net noncompete agreements	—		—
Customer relationships	10,450		10,450
Less: accumulated amortization	9,984		8,446
Net customer relationships	466		2,004
Total	$	466	$	2,004

Amortization expense for finite-lived intangible assets was $0.5 million and $1.5 million for the three and nine months ended September 30, 2024, respectively. Amortization expense for finite-lived intangible assets was $0.5 million and $1.6 million for the three and nine months ended September 30, 2023, respectively. Amortization expense is recognized in Selling, general and administrative expenses in the unaudited condensed consolidated statements of income. No impairments of finite-lived intangible assets were recorded for the three and nine months ended September 30, 2024 and 2023.

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Future amortization expense for finite-lived intangible assets as of September 30, 2024 is estimated to be as follows:

	Remainder of 2024		2025
	(In thousands)
Amortization expense	$	349	$	117

Note 6 – Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value ASC 820 establishes a three-tier hierarchy for grouping assets and liabilities, based on the significance and availability of inputs in active markets. The estimated fair values of the Company's assets and liabilities measured on a recurring basis are determined using the market approach.

In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are “unobservable data points” for the asset or liability and include situations where there is little, if any, market activity for the asset or liability.

The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in the unaudited condensed consolidated statements of income. The Company anticipates using these investments, which consist of insurance contracts, to satisfy its obligations as a participant in MDU Resources’ unfunded, nonqualified defined benefit plans for the Company's executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $4.4 million and $5.0 million as of September 30, 2024 and December 31, 2023, respectively, are included in Investments on the unaudited condensed consolidated balance sheets. The Company recognized net unrealized gains on these investments of $0.2 million and $0.5 million, respectively, for the three and nine months ended September 30, 2024. The net unrealized losses on these investments were immaterial for each of the three and nine months ended September 30, 2023. The change in fair value, which is considered part of the cost of the plan, is classified in Other income on the unaudited condensed consolidated statements of income.

The Company’s Level 2 money market funds are included as a part of Investments on the unaudited condensed consolidated balance sheets and are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets or using other known sources, including pricing from outside sources. The estimated fair value of the Company’s Level 2 insurance contracts is based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data.

Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in different estimates of fair value.

The estimated fair values of the Company’s cash and cash equivalents, receivables, accounts payable and other accrued liabilities approximate their carrying value due to the short-term maturities of these instruments.

The carrying value of the Company’s long-term debt, classified as related-party notes payable, approximates fair value based on a comparison with current prevailing market rates for borrowings of similar risks and maturities.

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The Company’s assets measured at fair value on a recurring basis were as follows:

	Fair Value Measurements as of September 30, 2024, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2024
	(In thousands)
Assets:
Insurance contracts	$	—	$	4,448	$	—	$	4,448
Total assets measured at fair value	$	—	$	4,448	$	—	$	4,448

	Fair Value Measurements as of December 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2023
	(In thousands)
Assets:
Money market funds	$	—	$	1,725	$	—	$	1,725
Insurance contracts	—		5,005		—		5,005
Total assets measured at fair value	$	—	$	6,730	$	—	$	6,730

Note 7 – 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 Company has entered into operating leases as part of its ongoing operations. The corresponding lease costs are included in Cost of sales and Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.

Generally, leases for vehicles and equipment have a term of five years or less and buildings have a longer term of up to 35 years or more. The Company has previously guaranteed the residual value under certain of its equipment operating leases and could in the future, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded the residual value guarantees. The Company currently does not have any residual value guarantee amounts probable of being owed to a lessor, for financing leases or material agreements with related parties.

In March 2024, in anticipation of the Separation, the Company entered into a 60 months lease for a new corporate headquarters, with a lease term of August 1, 2024 through July 31, 2029. The new corporate headquarters, which is located in Bismarck, North Dakota, is for 16,188 square feet with average annual rent payments and average annual common area maintenance (“CAM”) charges totaling approximately $303 thousand and $102 thousand, respectively, for the duration of the lease.

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The following table provides a summary of the Company's lease costs for operating leases:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Lease costs:
Operating lease cost	$	8,156	$	6,693	$	22,769	$	19,448
Variable lease cost(1)	319		296		917		892
Short-term lease cost(1)	27,965		25,889		75,703		72,803
Total lease costs	$	36,440	$	32,878	$	99,389	$	93,143

__________________

(1)Subsequent to the filing of the audited consolidated financial statements for the year ended December 31, 2023 and the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024 in the Form 10, the Company’s management determined that the Company incorrectly presented variable lease cost and short-term lease cost due to a clerical error when preparing the financial statements, including the related footnotes. The amounts in the preceding table have been revised to correct the impact of this classification error for the nine months ended September 30, 2024 and 2023. The classification error will be corrected in future filings for the historical periods. The reclassification error had no impact to results of operations, balance sheets, or cash flows for any of the periods within the Form 10.

The following is a summary of the lease terms and discount rates for operating leases:

	September 30, 2024		December 31, 2023
Weighted average remaining lease term	1.38 years		1.34 years
Weighted average discount rate	5.51	%	4.94	%

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

	Nine months ended September 30,
	2024		2023
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities	$	22,653	$	19,745
Right-of-use assets obtained in exchange for new operating lease liabilities	$	38,454	$	21,164

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 sheets was as follows:

	September 30, 2024
	(In thousands)
Remainder of 2024	$	7,963
2025	26,851
2026	18,202
2027	11,052
2028	6,087
Thereafter	6,043
Total	76,198
Less: discount	6,841
Total operating lease liabilities	$	69,357

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The Company has entered into operating leases for land, buildings, equipment and office space with certain members of management and officers of the Company in connection with acquisitions of subsidiaries that were previously owned and operated by such management. Refer to Note 15 – Related-Party Transactions for additional information.

Lessor Accounting

The Company leases certain equipment to third parties. These leases are considered short-term operating leases with terms of less than 12 months. The Company recognizes revenue 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 Company recognized revenue from operating leases of $10.2 million and $30.0 million for the three and nine months ended September 30, 2024, respectively, and $11.0 million and $34.0 million for the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024 and December 31, 2023, the Company had $8.6 million and $9.3 million, respectively, of lease receivables with a majority due within 12 months or less from the respective balance sheet dates.

The components of certain equipment leased to third parties under operating leases, which are included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Machinery and equipment	$	56,367	$	56,186
Less: accumulated depreciation	29,427		29,134
Property, plant and equipment, net	$	26,940	$	27,052

Note 8 – Earnings Per Share

Prior to the Separation, Everus Construction had 1,000 common shares issued and outstanding. On October 31, 2024, as part of the Distribution, 50,972,059 shares of Everus common stock were issued and outstanding. Basic and diluted earnings per share for periods prior to the Separation and Distribution have been retrospectively adjusted to reflect the Everus shares outstanding on the Distribution date. For the three and nine months ended September 30, 2024 and 2023, there were no dilutive or anti-dilutive equity instruments as there were no Everus stock-based awards outstanding during those periods.

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of any dilutive securities.

22

Basic and diluted earnings per share were calculated as follows, based on a reconciliation of the weighted average common shares outstanding on a basic and diluted basis:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands, except per share amounts)
Net income	$	41,767	$	36,014	$	108,953	$	100,737
Weighted average common shares outstanding - basic	50,972		50,972		50,972		50,972
Weighted average common shares outstanding - diluted	50,972		50,972		50,972		50,972
Earnings per share - basic	$	0.82	$	0.71	$	2.14	$	1.98
Earnings per share - diluted	$	0.82	$	0.71	$	2.14	$	1.98

Note 9 – Accumulated Other Comprehensive Loss

Comprehensive income is the sum of net income as reported and other comprehensive income (loss). The Company's accumulated other comprehensive loss was comprised of gains (losses) on derivative instruments qualifying as hedges.

There were no changes in the components of accumulated other comprehensive loss for the three and nine months ended September 30, 2024 and the three months ended September 30, 2023. Therefore, the after-tax changes in the components of accumulated other comprehensive loss through the nine months ended September 30, 2023 were as follows:

	Net Unrealized Loss on Derivative Instruments Qualifying as Hedges		Total Accumulated Other Comprehensive Loss
	(In thousands)
As of December 31, 2022	$	(35)	$	(35)
Amounts reclassified from accumulated other comprehensive loss	(11)		(11)
Net current-period other comprehensive loss	(11)		(11)
As of March 31, 2023	(46)		(46)
Amounts reclassified from accumulated other comprehensive loss	46		46
Net current-period other comprehensive income	46		46
As of June 30, 2023	—		—
Amounts reclassified from accumulated other comprehensive loss	—		—
Net current-period other comprehensive income	—		—
As of September 30, 2023	$	—	$	—

23

There were no amounts reclassified out of accumulated other comprehensive loss into net income for the three and nine months ended September 30, 2024 and the three months ended September 30, 2023. Therefore, the following amounts were reclassified out of accumulated other comprehensive loss into net income for the nine months ended September 30, 2023:

	Nine months ended September 30, 2023		Location on Unaudited Condensed Consolidated Statement of Income
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	36	Interest expense
Reclassification tax benefit for loss on derivative instruments included in net income	(1)		Income taxes
Total reclassifications	$	35

Note 10 – 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, 2024, income tax expense was $14.0 million and $37.6 million, respectively, resulting in an effective tax rate of 25.1% and 25.7%, respectively. The effective tax rates for the three and nine months ended September 30, 2024 differed from the 2024 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.

For the three and nine months ended September 30, 2023, income tax expense was $11.4 million and $32.8 million, respectively, resulting in an effective tax rate of 24.1% and 24.6%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 differed from the 2023 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 market performance as well as meals and entertainment expenses.

The effective tax rates for the three and nine months ended September 30, 2024 differed from the effective tax rates for the three and nine months ended September 30, 2023 due to changes in the Company’s permanent book-tax differences between those periods, specifically increased permanent add-back for meals and entertainment expenses.

Note 11 – Supplemental Cash Flow Information

Cash expenditures for interest and income taxes were as follows:

	Nine months ended September 30,
	2024		2023
	(In thousands)
Interest paid	$	8,825	$	12,848
Income taxes paid	$	39,183	$	42,979

Non-cash investing transactions were as follows:

	September 30, 2024		September 30, 2023
	(In thousands)
Purchases of property, plant and equipment included in Accounts payable	$	293	$	314

24

Note 12 – Business Segment Data

The Company’s reportable segments are those that are based on the Company’s method of internal reporting and management of the business. The Company provides a full spectrum of construction services across most of the United States through two operating segments, which represent its two reportable segments:

Electrical & Mechanical: The E&M segment provides services for the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services.

Transmission & Distribution: The T&D segment provides services for the construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as design, manufacturing and distribution of overhead and underground transmission line construction equipment and tools.

These segments are reflective of how the Company’s chief executive officer, who is the Company’s Chief Operating Decision Maker (“CODM”), evaluates performance and allocates resources. The CODM analyzes and uses segment operating income as a profitability measure, which helps drive decision-making.

Information on the Company’s segments was as follows:

	Three months ended,
	September 30, 2024				September 30, 2023
	E&M		T&D		E&M		T&D
	(In thousands)
External operating revenues	$	534,741	$	226,244	$	514,378	$	203,028
Elimination operating revenues	2,154		2,260		2,555		1,400
Depreciation and amortization expense	1,618		4,753		1,557		4,412
Operating income	34,943		25,258		31,076		23,015
Interest expense (benefit)	(54)		982		1,391		1,367
Income tax expense	9,806		6,249		7,509		5,587
Capital expenditures*	$	2,701	$	15,256	$	823	$	6,583

__________________

*Capital expenditures for the three months ended September 30, 2024 and 2023 included noncash transactions for capital expenditure-related Accounts payable.

	Nine months ended,
	September 30, 2024				September 30, 2023
	E&M		T&D		E&M		T&D
	(In thousands)
External operating revenues	$	1,476,151	$	613,896	$	1,672,948	$	545,724
Elimination operating revenues	5,627		9,881		7,262		3,727
Depreciation and amortization expense	4,794		13,848		4,643		12,697
Operating income	100,771		60,082		100,268		51,314
Interest expense	117		3,030		4,645		3,239
Income tax expense	28,478		14,596		25,214		11,996
Capital expenditures*	$	5,641	$	28,726	$	3,714	$	23,983

__________________

*Capital expenditures for the nine months ended September 30, 2024 and 2023 included noncash transactions for capital expenditure-related Accounts payable.

All intercompany balances and transactions between the businesses comprising the Company have been eliminated in the unaudited condensed consolidated financial statements.

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A reconciliation of reportable segment operating revenues to consolidated operating revenues was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
E&M operating revenue	$	536,895	$	516,933	$	1,481,778	$	1,680,210
T&D operating revenue	228,504		204,428		623,777		549,451
Total reportable segment operating revenues	765,399		721,361		2,105,555		2,229,661
Eliminations	(4,414)		(3,955)		(15,508)		(10,989)
Total consolidated operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672

No customer accounted for more than 10% of total Operating revenues for the three or nine months ended September 30, 2024. Operating revenues from a single customer accounted for 14.6% and 18.4% of total Operating revenues for the three and nine months ended September 30, 2023, respectively, which were included in the E&M segment.

No customer accounted for more than 10% of total trade receivables as of September 30, 2024. Trade receivables from a single customer accounted for 14.1% of total trade receivables as of December 31, 2023.

A reconciliation of reportable segment assets to consolidated assets was as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
E&M segment assets	$	828,937	$	712,691
T&D segment assets	426,404		376,780
Total reportable segment assets	1,255,341		1,089,471
Other assets	44,832		43,628
Elimination of receivables	(20,881)		(22,517)
Total consolidated assets	$	1,279,292	$	1,110,582

A reconciliation of reportable segment operating income to consolidated income before income taxes and income from equity method investments was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
E&M operating income	$	34,943	$	31,076	$	100,771	$	100,268
T&D operating income	25,258		23,015		60,082		51,314
Total reportable segment operating income	60,201		54,091		160,853		151,582
Other operating loss	(6,492)		(4,000)		(16,951)		(11,963)
Interest expense	2,851		4,596		8,823		13,483
Other income	1,071		1,208		3,683		2,705
Total consolidated income before income taxes and income from equity method investments	$	51,929	$	46,703	$	138,762	$	128,841

Note 13 – Employee Benefit Plans

Nonqualified Deferred Compensation Plans

In 2012, MDU Resources established a nonqualified deferred compensation plan for certain key management employees, including certain employees of the Company. In 2020, the plan was frozen to new participants and no

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new Company contributions were made to the plan after December 31, 2020. Vesting for participants not fully vested was retained. To replace the plan originally established in 2012, a new nonqualified deferred compensation plan, with similar provisions, was adopted by MDU Resources in 2020 and became effective January 1, 2021. Expenses incurred by the Company under these plans were $0.4 million and $0.9 million for the three and nine months ended September 30, 2024, respectively. The Company recognized an immaterial benefit and an expense of $1.0 million for the three and nine months ended September 30, 2023, respectively.

Note 14 – Commitments and Contingencies

The Company is a party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage; personal injury; and environmental, contractual, statutory and regulatory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue a liability when the likelihood of an incurrence of a loss is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss.

Litigation

As of September 30, 2024 and December 31, 2023, the Company accrued for litigation-related contingent liabilities that have not been discounted of $1.4 million and $0.1 million, respectively, in Other accrued liabilities on the unaudited condensed consolidated balance sheets. As of September 30, 2024 and December 31, 2023, the Company also recorded corresponding insurance claim receivables of $1.4 million and $0.1 million, respectively, related to the accrued liabilities in Prepayments and other current assets on the unaudited condensed consolidated balance sheets. The Company determined that the outcome of the outstanding litigation cases should be covered by the Company’s insurance carrier, and any amounts due related to the litigation are expected to be paid directly by the Company’s insurance carrier. As such, the contingency liability and corresponding insurance claim receivables as of September 30, 2024 and December 31, 2023, reflect the fact that the Company would not be responsible for amounts resulting from the litigation.

The Company will continue to monitor each matter and adjust accruals as necessary based on new information and further developments. Management believes that the outcomes with respect to probable and reasonably possible losses in excess of the amounts accrued, net of insurance recoveries, while uncertain, either cannot be estimated or will not have a material effect upon the Company’s financial position, results of operations or cash flows. Unless otherwise required by GAAP, legal costs are expensed as they are incurred and are included in Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.

Guarantees

In the normal course of business, the Company has surety bonds related to construction contracts of its subsidiaries. These bonds relate to certain public and private sector contracts to secure contractual performance, including completion of agreed upon contract terms, timing and price, payments to subcontractors and suppliers, and protection for customers from fraudulent practices. In the event a subsidiary of the Company does not fulfill a bonded obligation, the Company would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds are expected to expire within the next 12 months; however, the Company likely will continue to enter into surety bonds for its subsidiaries in the future. As of September 30, 2024 and December 31, 2023, the maximum potential amount of payments the Company would be required to make under the outstanding surety bonds was approximately $845.3 million and $299.9 million, respectively, which were not reflected on the unaudited condensed consolidated balance sheets.

The Company has outstanding guarantees to third parties that guarantee the performance of certain subsidiaries of the Company. These guarantees are related to contracts for contracting services. As of September 30, 2024 and December 31, 2023, the fixed maximum amounts guaranteed under these agreements aggregated to $557.5 million

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and $341.4 million, respectively. The scheduled expiration of the maximum amounts guaranteed aggregate to $13.3 million for the remainder of 2024, $186.7 million in 2025, $312.6 million in 2026, $43.5 million in 2027, $1.0 million in 2028 and $0.4 million thereafter. There were no amounts outstanding under the previously mentioned guarantees and the maximum amounts guaranteed were not reflected on the unaudited condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023. However, in the event of default under these guarantee obligations, the Company would be required to make payments to satisfy its guarantees.

The Company also has outstanding letters of credit to third parties. As of September 30, 2024 and December 31, 2023, the fixed maximum amounts guaranteed under these letters of credit aggregated to $2.2 million and $0.2 million, respectively, all of which expire within the next 12 months. There were no amounts outstanding under the previously mentioned letters of credit as of September 30, 2024 or December 31, 2023. In the event of default under these letter-of-credit obligations, the Company would be obligated for reimbursement of payments made under the letters of credit.

In addition, the Company has issued guarantees to third parties related to the routine purchase of maintenance items, materials and lease obligations for which no fixed maximum amounts have been specified. These guarantees have no scheduled maturity date. In the event a subsidiary of the Company defaults under these obligations, the Company would be required to make payments to satisfy these guarantees. An immaterial amount of outstanding guarantees by the Company were reflected on the unaudited condensed consolidated balance sheets in Operating lease right-of-use assets, Current portion of operating lease liabilities and/or Operating lease liabilities as of September 30, 2024 and December 31, 2023.

Note 15 – Related-Party Transactions

Allocation of Corporate Expenses

Centennial and MDU Resources allocated expenses for corporate services provided to the Company, including costs related to senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit, risk management and other shared services. The Company was allocated $4.9 million and $27.6 million for the three and nine months ended September 30, 2024, respectively, and $4.5 million and $21.5 million for the three and nine months ended September 30, 2023, respectively, for these corporate services. These expenses were allocated to the Company on the basis of direct usage where identifiable, with the remainder allocated on the basis of percent of total capital invested, the percent of total average cash management program borrowings at MDU Resources, the percent of total average commercial paper borrowings at Centennial or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. Some of the utilization factors considered include the following: number of employees paid and stated as cost per check; number of employees served; weighted factor of travel, managed units, national account spending, equipment and fleet acquisitions; purchase order dollars spent and purchase order line count; number of payments, vouchers or unclaimed property reports; labor hours; time tracked; and projected workload.

These cost allocations were a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. However, the allocations may not be indicative of the actual expenses that would have been incurred had the Company operated as a standalone company. Actual costs as a standalone company depend on a number of factors, including the chosen organizational structure, whether functions are outsourced or performed by Company employees, and strategic decisions made in areas such as selling and marketing, information technology and infrastructure. For an interim period of up to 20 months following the Separation, certain of these functions will continue to be provided by MDU Resources to the Company under a transition services agreement. Refer to Note 2 – Basis of Presentation and Note 16 – Subsequent Events for additional information.

Cash Management and Financing

Prior to the second quarter of 2023, Centennial had a commercial paper program and long-term borrowing arrangements in which the Company and certain of its subsidiaries participated. Centennial repaid all of its outstanding debt in the second quarter of 2023, and subsequently MDU Resources supported the Company’s borrowing needs through Centennial. The Company accounted for cash receipts and disbursements from MDU

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Resources and Centennial, through related-party receivables and payables. The Company had related-party agreements in place with Centennial for the financing of its capital needs and Centennial had a related-party agreement in place with MDU Resources. The Company’s cash that it legally owns and was not included in the commercial paper program is classified as Cash and cash equivalents on the unaudited condensed consolidated balance sheets.

MDU Resources’ debt instruments contain restrictive and financial covenants and cross-default provisions. In order to borrow under the respective debt instruments and historically help finance the capital needs of the Company, MDU Resources must be in compliance with the applicable covenants and certain other conditions, all of which MDU Resources, as applicable, was in compliance with as of September 30, 2024. The borrowings under the commercial paper program with Centennial did not have stated maturities. MDU Resources committed to continue funding the Company through Centennial using its cash management program and revolving credit facility to allow the Company to meet its obligations as they became due prior to the Separation, thus the entire amount of Related-party notes payable was classified as noncurrent liabilities in the unaudited condensed consolidated balance sheets.

Related-party notes payable was as follows:

	Weighted Average Interest Rate as of September 30, 2024		September 30, 2024		December 31, 2023
			(In thousands)
Borrowing arrangements with MDU Resources	6.10	%	$	214,525	$	168,531
Total related-party notes payable			$	214,525	$	168,531

The Company was allocated interest based on borrowings from or lending to the cash management and financing program as well as the funding related to these agreements as described above. The related-party interest expense associated with the Company’s participation in the cash management and financing program was $3.0 million and $9.1 million for the three and nine months ended September 30, 2024, respectively, and $4.7 million and $13.5 million for the three and nine months ended September 30, 2023, respectively.

Other Related-Party Transactions

The Company provided contracting services and equipment sales and short-term rentals to MDU Resources and affiliated companies. The amount charged for these services was $0.3 million for each of the nine months ended September 30, 2024 and 2023. There were no related services for each of the three months ended September 30, 2024 and 2023. Related-party transactions that were expected to be settled in cash were included as related-party receivables or payables in the unaudited condensed consolidated balance sheets as Due from related-party, Due from related-party - noncurrent, Due to related-party or Related-party notes payable. Related-party transactions that were not expected to be settled in cash were included within Other paid-in capital in the unaudited condensed consolidated balance sheets. Refer to Note 1 – Background and Nature of Operations for additional information on the Company’s service operations.

The Company has entered into operating leases for land, buildings, equipment and office space with certain members of management and officers of the Company. Operating lease information for related-party leases was as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Operating lease right-of-use assets	$	68	$	136
Current portion of operating lease liabilities	68		90
Operating lease liabilities	$	—	$	46

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Total rent expense related to related-party leases is included in Selling, general and administrative expenses on the unaudited condensed consolidated statements of income. Rent expense was $0.2 million and $0.5 million for each of the three and nine months ended September 30, 2024 and 2023. Refer to Note 7 – Leases for additional information.

Note 16 – Subsequent Events

On October 31, 2024, the Separation was completed through MDU Resources’ Distribution of all of the outstanding shares of Everus common stock to holders of MDU Resources common stock. As a result of the Distribution, stockholders of MDU Resources received one share of the Company's common stock for every four shares of MDU Resources' common stock held at the close of business on October 21, 2024, the record date for the Distribution. Following the Separation, Everus is now a separate independent, publicly traded company under the ticker symbol “ECG” on the New York Stock Exchange.

In connection with the Separation, which was governed by the separation and distribution agreement, the Company entered into various other agreements with MDU Resources to effect the Separation and provide a framework for its relationship with MDU Resources after the Separation, including a transition services agreement, a tax matters agreement and an employee matters agreement. The separation and distribution agreement, the tax matters agreement and the employee matters agreement determine the allocation of assets and liabilities between the companies following the Separation for those respective areas and include any necessary indemnifications related to liabilities and obligations. The transition services agreement provides for the performance of certain services by MDU Resources for the benefit of the Company, or in some cases certain services provided by the Company for the benefit of MDU Resources, for a limited period of up to 20 months following the Separation.

On October 31, 2024, the Company entered into a five-year senior secured credit agreement (“the Credit Agreement”), whereby it has the capacity to incur indebtedness of up to $525.0 million, consisting of $300.0 million in aggregate principal amount of term loans and a $225.0 million revolving credit facility. Letters of credit are available under the Credit Agreement in an aggregate amount of up to $50.0 million. Everus drew $40.0 million under the revolving credit facility on the Separation date due to projected working capital needs. As of November 21, 2024, the date these financial statements were available to be issued, $40.0 million was still outstanding.

The Company received net proceeds of $332.1 million, net of $7.9 million of debt issuance costs. In connection with the borrowings, the Company used $290.0 million of the net proceeds of such indebtedness to repay its $230.0 million outstanding indebtedness with Centennial and to pay a $60.0 million dividend to MDU Resources, with the remaining $42.1 million being retained by the Company. After the Separation, the Company will no longer rely on MDU Resources’ central cash management and financing program and will instead rely on its own credit and financing arrangements.

The Company also entered into a captive insurance arrangement in order to manage its operational risk in connection with the Separation. The Company is in the process of assessing impacts that the captive insurance arrangement may have on its business, financial condition and/or financial results.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following information should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”). The following discussion may contain forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances.

Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those factors discussed in the following and elsewhere in this Quarterly Report, particularly in the section entitled “Cautionary Note Regarding Forward-Looking Statements”. Refer to the section titled “Risk Factors” included in our Registration Statement on Form 10 (“Form 10”), which is not incorporated by reference herein, for more information concerning our risk factors. References to the “Company,” “Everus,” “we,” “us,” and “our” refer to Everus Construction Group, Inc. and its consolidated subsidiaries, unless otherwise stated or indicated by context.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report contains certain “forward-looking statements” within the meaning of the securities laws. 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” of this Quarterly Report contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in any forward-looking statements we make are based on reasonable assumptions as of the date they are made, we can give no assurance that the expectation will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.

Such risks and uncertainties include, but are not limited to:

•seasonality and adverse weather conditions;

•competition in our industry;

•the failure to retain current customers and obtain new customer contracts;

•changes in prices for commodities, labor, or other production and delivery inputs;

•our inability to hire, develop and retain key personnel and skilled labor forces;

•exposure to warranty claims;

•economic volatility;

•our inability to provide surety bonds;

•our backlog not accurately representing future revenue;

•supply chain disruptions;

•capital market and interest rates;

•increased financing costs due to possible Everus credit ratings;

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•increased insurance costs or inability to obtain certain insurance coverages;

•negative impacts from pending and/or future litigation, claims or investigations;

•liability resulting from our participation in multiemployer defined benefit pension plans;

•increased health care plan costs;

•risks associated with the nonpayment and/or nonperformance of our customers and counterparties;

•increases or changes in income tax rates or tax-related laws;

•risks associated with import tariffs and/or other government mandates;

•new interpretations of or changes in the enforcement of the government regulatory framework;

•a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches;

•artificial intelligence presents challenges that can impact our business by posing security risks to confidential or proprietary information and personal data;

•the COVID-19 pandemic and possible future pandemics and the potential impacts on the United States, including the customer submarkets we serve and governmental responses to such pandemics;

•the expected benefits of the Separation (as defined below) from MDU Resources Group, Inc. (“MDU Resources”);

•the risk of increased costs from dis-synergies, costs of restructuring transactions and other costs incurred in connection with the Separation;

•retention of existing management team members and the ability to obtain the necessary personnel as a result of the Separation;

•the impact of the Separation on our business, reaction of customers, employees and other parties to the Separation;

•our leverage;

•risks associated with financing transactions undertaken in connection with the Separation and risks associated with indebtedness incurred in connection with the Separation;

•any failure by us or MDU Resources to perform certain obligations under the various separation agreements entered into in connection with the Separation and Distribution (as defined below);

•a determination by the Internal Revenue Service that the Distribution or certain related transactions are taxable; and

•the risk that the Separation may be more difficult, time consuming or costly than expected, including the impact on our resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties.

The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under “Risk Factors” in our Form 10.

You should read this Quarterly Report completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this Quarterly Report are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this Quarterly

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Report, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.

Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data.

Overview

We offer specialty contracting services under two reportable segments, Electrical & Mechanical and Transmission & Distribution, which provide services to a diverse set of end markets across most of the United States. 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.

We provide specialty contracting services to commercial, industrial, institutional, service, renewables, utilities, transportation, manufacturing and governmental customers, among others. We operate throughout most of the United States through two operating segments:

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.

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

Economic and Industry Factors Impacting Our Business

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 recently completed the renewal process for our insurance lines, which are on a standalone basis due to the Separation, and we experienced these aforementioned impacts. However, we are formulating strategies to minimize these costs and/or ensuring these costs are built into our bidding opportunities going forward.

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.

Market Conditions and Outlook

The U.S. construction services industry is highly fragmented. It includes a wide spectrum of players, from small, private companies whose activities are geographically concentrated to larger public companies with nationwide capabilities. Competition within the industry is influenced by various elements such as technical expertise, service pricing, financial and operational resources, track record for safety, industry reputation and dependability.

The U.S. construction services industry serves a diverse customer base that includes federal, state and municipal governmental agencies, commercial and residential developers and private parties. The mix of customers varies by region and economic conditions.

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The main factors and trends in the U.S. construction services industry include:

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

•Industry fragmentation. There are thousands of construction services providers of varying scope and size. Market participants may enter new geographies or expand existing positions through organic growth or the acquisition of existing providers.

•Seasonality. Activity in certain areas is seasonal due to the effects of weather, which can impact safety and efficiency of operations. At the same time, effects of weather can lead to increased demand for services in other areas. Our national footprint and service mix, particularly in our T&D segment, ensures exposure to a diverse set of geographies, climates and project work, mitigating the seasonality risk while providing opportunities across the United States.

•Cyclicality. The demand for construction services is significantly influenced by the cyclical nature of the economy.

•Regulations. Operations are subject to extensive laws and regulations relating to the maintenance of safe conditions in the workplace.

•Production inputs. Cost of labor, equipment and other inputs can vary over time based on macroeconomic factors and impact profitability of operations.

•Personnel. Ability to maintain productivity and operating performance is heavily dependent on the ability to employ, train and retain qualified personnel necessary to operate efficiently.

The American Rescue Plan provides $1.9 trillion in COVID-19 relief funding for states, schools and local governments, including broadband infrastructure. States are beginning to move forward with allocating these funds based on federal criteria and state needs, and in some cases, funding of infrastructure projects which could positively impact us. Additionally, the Infrastructure Investment and Jobs Act, was enacted in 2021 and is providing long-term opportunities by designating funds for investments in upgrades to electric and grid infrastructure, transportation systems, airports and electric vehicle infrastructure, all industries we support. In addition, the Inflation Reduction Act provides $369 billion in new funding for clean energy programs. These programs include new tax incentives for solar, battery storage and hydrogen development along with funding to expand the production of electric vehicles and the build out of infrastructure to support electric vehicles. Finally, the CHIPS and Science Act is expected to provide up to $53 billion of investment in the U.S. semiconductor industry, with approximately $39 billion of the CHIPS funding earmarked for the construction of semiconductor fabrication plants over the next five years. We will continue to monitor the implementation of these legislative initiatives.

We continue to have bidding opportunities in the specialty contracting markets we have operated in during 2024, as evidenced by our backlog. Although bidding remains highly competitive in all areas, we expect relationships with existing customers, safe and skilled workforce, quality of service and effective cost management will continue to provide a benefit in securing and executing profitable projects in the future. We also have seen rapidly growing needs for services across the electric vehicle charging, renewable energy generation and energy storage markets that complement existing renewables projects performed by us.

The Separation and Distribution

Everus Construction, Inc. (formerly known as MDU Construction Services Group, Inc.) (“Everus Construction”) operated historically as a wholly owned subsidiary of CEHI, LLC (“Centennial”), which is a wholly owned subsidiary of MDU Resources Group, Inc. (“MDU Resources” or “MDU”).

On November 2, 2023, MDU Resources announced its intention to pursue a tax-free spinoff of Everus Construction from MDU Resources (the “Separation”). In anticipation of the Separation, MDU Resources formed a

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new wholly owned subsidiary, Everus Construction Group, Inc., that would become the new parent company of Everus Construction.

On October 31, 2024, MDU Resources completed the Separation by transferring Everus Construction, inclusive of all its assets and liabilities, to Everus and distributing 50,972,059 shares of Everus common stock ($0.01 par value) to MDU Resources stockholders of record as of October 21, 2024 (the “Distribution”). The Distribution was structured as a pro rata distribution of one share of Everus common stock for every four shares of MDU Resources common stock (such ratio, the “Distribution Ratio”). MDU Resources did not distribute any fractional shares of Everus common stock to its stockholders as part of the distribution. Instead, MDU Resources’ stockholders will receive cash in lieu of any fractional shares of Everus common stock that they would have received after application of the Distribution Ratio.

As a result of the Separation and Distribution, Everus is now a separate, independent publicly traded company and its common stock is listed under the symbol “ECG” on the New York Stock Exchange. More information on the Separation and Distribution, as well as the our historical results, can be found within our Form 10.

The Separation was completed pursuant to a separation and distribution agreement and other agreements with MDU Resources related to the Separation, including, but not limited to, a transition services agreement, a tax matters agreement and an employee matters agreement. We have incurred costs related to becoming an independent public entity and expect additional ongoing expenses related to our continued operations as such.

Prior to the Separation, Everus Construction was the construction services segment of MDU Resources.

For a complete discussion of all the conditions, pursuant to the separation and distribution agreement, and the associated risks and uncertainties, associated with the separation and distribution, see “The Separation and Distribution—Conditions to the Distribution” and “Risk Factors—Risks Related to the Separation and Distribution” in our Form 10.

Basis of Presentation

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. The accompanying unaudited condensed consolidated financial statements and footnotes included in 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 unaudited condensed consolidated financial statements 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 during the periods presented and may not be indicative of our future performance. For additional information related to our basis of presentation, see Note 2 – Basis of Presentation in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Prior to 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. Interest expense in the unaudited condensed consolidated statements of income reflected the allocation of interest on borrowing and funding associated with the related-party agreements.

Cash-settled related-party transactions between Everus, MDU Resources, Centennial, and other MDU Resources subsidiaries were included in the unaudited condensed consolidated financial statements. For additional information regarding the agreements between us, MDU Resources and Centennial, see “Certain Relationships and Related Person Transactions” in our Form 10.

All intercompany balances and transactions between the businesses comprising Everus have been eliminated in the accompanying unaudited condensed consolidated financial statements.

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Consolidated Results of Operations For the Three and Nine Months Ended September 30, 2024 and 2023

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

	Three months ended September 30,						Nine months ended September 30,
	2024		2023		% change		2024		2023		% change
	(In millions, except percentages)
Operating revenues	$	761.0	$	717.4	6.1	%	$	2,090.0	$	2,218.7	(5.8)	%
Cost of sales	671.1		632.5		6.1	%	1,836.8		1,976.6		(7.1)	%
Gross profit	89.9		84.9		5.9	%	253.2		242.1		4.6	%
Selling, general and administrative expenses	36.2		34.8		4.0	%	109.3		102.5		6.6	%
Operating income	53.7		50.1		7.2	%	143.9		139.6		3.1	%
Interest expense	2.8		4.7		(40.4)	%	8.8		13.5		(34.8)	%
Other income	1.1		1.2		(8.3)	%	3.7		2.7		37.0	%
Income before income taxes and income from equity method investments	52.0		46.6		11.6	%	138.8		128.8		7.8	%
Income taxes	14.0		11.4		22.8	%	37.6		32.8		14.6	%
Income from equity method investments	3.8		0.8		NM		7.8		4.8		62.5	%
Net income	$	41.8	$	36.0	16.1	%	$	109.0	$	100.8	8.1	%

__________________

*NM - Not Meaningful

Three Months Ended September 30, 2024, Compared to Three Months Ended September 30, 2023

Operating Revenues

Operating revenues for the three months ended September 30, 2024, were $761.0 million, an increase of $43.6 million, or 6.1%, from $717.4 million for the three months ended September 30, 2023. E&M revenues grew $20.0 million, or 3.9%, and T&D revenues rose $24.0 million, or 11.7%.

E&M revenues increased $20.0 million, or 3.9%, as a result of higher revenues for the commercial and institutional end markets, partially offset by lower revenues for the industrial, service & other and renewables end markets.

•Commercial revenues increased due to submarket activity, including higher data center workloads, partially offset by softening hospitality activity from the completion of large projects during 2023.

•Higher institutional revenues were driven by workload activity across submarkets, including increases for education and government, partially offset by dips in healthcare.

•Lower industrial revenues, due to softening in the general industrial, high tech and government submarkets, partially offset by higher workloads in manufacturing.

•Service & other and renewables had lower revenues due to decreased repair and maintenance demand and the timing of projects, respectively.

T&D revenues increased $24.0 million, or 11.7%, due to higher utility and transportation end-market revenues.

•Utility revenues increased from higher workloads and submarket activity across transmission, underground, telecommunication and substation, partially offset by lower distribution workloads due to timing of project availability.

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•Transportation revenues were higher due to increased submarket workloads, such as project timing in traffic signalization and street lighting.

Cost of Sales

Cost of sales for the three months ended September 30, 2024, was $671.1 million, an increase of $38.6 million, or 6.1%, from $632.5 million for the three months ended September 30, 2023. This increase primarily related to higher operating costs from increased E&M and T&D workloads, partially offset by project efficiencies. Subcontractor costs, material costs and other job expenses increased $25.2 million, $10.0 million and $6.4 million, respectively, partially offset by lower labor costs of $3.0 million.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended September 30, 2024, were $36.2 million, an increase of $1.4 million, or 4.0%, from $34.8 million for the three months ended September 30, 2023. The increase was driven primarily by higher professional service-related expenses of $1.5 million and higher general expenses of $2.6 million including office, rent and insurance expense. Partially offsetting these increases was lower provision for expected credit losses of $1.6 million and lower payroll-related expenses of $1.1 million.

Operating Income

Operating income for the three months ended September 30, 2024, was $53.7 million, an increase of $3.6 million, or 7.2%, from $50.1 million for the three months ended September 30, 2023. The increase was primarily driven by increased gross profit due to higher revenues, partially offset by increased selling, general and administrative expenses as discussed above. Operating income, as a percentage of revenues, remained relatively consistent at 7.1% for the three months ended September 30, 2024 compared to 7.0% for the three months ended September 30, 2023.

Interest Expense

Interest expense for the three months ended September 30, 2024, was $2.8 million, a decrease of $1.9 million, or 40.4%, from $4.7 million for the three months ended September 30, 2023. This decrease primarily related to lower average debt balances for working capital needs in the current period compared to the prior year period in connection with the cash management program.

Other Income

Other income for the three months ended September 30, 2024, was $1.1 million, a decrease of $0.1 million, or 8.3%, from $1.2 million for the three months ended September 30, 2023. This decrease primarily related to miscellaneous income activity, including rebates and bank fees.

Income Taxes

Income taxes for the three months ended September 30, 2024, were $14.0 million, an increase of $2.6 million, or 22.8%, from $11.4 million for the three months ended September 30, 2023, reflecting higher income before taxes for the period. The effective tax rate was 25.1% for the three months ended September 30, 2024, compared to 24.1% for the three months ended September 30, 2023.

Income from Equity Method Investments

Income from equity method investments for the three months ended September 30, 2024, was $3.8 million, an increase of $3.0 million, from $0.8 million for three months ended September 30, 2023. This increase primarily related to increased progress on joint venture activity.

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Nine Months Ended September 30, 2024, Compared to Nine Months Ended September 30, 2023

Operating Revenues

Operating revenues for the nine months ended September 30, 2024, were $2,090.0 million, a decrease of $128.7 million, or 5.8%, from $2,218.7 million for the nine months ended September 30, 2023. E&M revenues declined $198.5 million, or 11.8%, partially offset by growth in T&D revenues of $74.3 million, or 13.5%.

E&M revenues decreased $198.5 million, or 11.8%, as a result of lower revenues for the commercial, industrial, service & other and renewables end markets, partially offset by higher revenues from the institutional end market.

•Commercial had revenue shifts within the hospitality submarket from completion of large projects during 2023, partially offset by higher data center activity due to increased workloads.

•Softening industrial revenues from lower workloads in the general industrial, high tech and government submarkets were partially offset by higher workloads in manufacturing.

•Service & other and renewables had lower revenues due to decreased repair and maintenance demand and the timing of projects, respectively.

•Partially offsetting were increased institutional revenues, driven from higher workloads in the government, education and healthcare submarkets.

T&D revenues increased $74.3 million, or 13.5%, due to higher utility and transportation end-market revenues.

•Utility revenues increased from higher workloads and submarket activity across transmission, telecommunication and substation, partially offset by lower workloads due to timing of project availability in the storm and government submarkets.

•Transportation had higher revenues due to submarket activity, with higher workloads in traffic signalization and street lighting.

Cost of Sales

Cost of sales for the nine months ended September 30, 2024, was $1,836.8 million, a decrease of $139.8 million, or 7.1%, from $1,976.6 million for the nine months ended September 30, 2023. This decrease primarily related to lower operating costs from decreased E&M workloads and project efficiencies, partially offset by higher T&D operating costs from increased workloads. Labor and material costs decreased by $143.9 million and $77.9 million, respectively, partially offset by higher subcontractor costs and other job expenses of $66.9 million and $15.1 million, respectively.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended September 30, 2024, were $109.3 million, an increase of $6.8 million, or 6.6%, from $102.5 million for the nine months ended September 30, 2023. The increase was driven primarily by higher payroll-related expenses of $1.8 million to support the operational growth of the business, higher professional service-related expenses of $4.2 million and higher general expenses of $5.2 million including office, rent and insurance expense. Partially offsetting these increases was lower provision for expected credit losses of $4.4 million.

Operating Income

Operating income for the nine months ended September 30, 2024 was $143.9 million, an increase of $4.3 million, or 3.1%, from $139.6 million for the nine months ended September 30, 2023. The increase was primarily driven by increased gross profit due to project efficiencies, partially offset by increased selling, general and administrative expenses as discussed above. Operating income, as a percentage of revenues, increased to 6.9% for the nine months ended September 30, 2024 compared to 6.3% for the nine months ended September 30, 2023.

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Interest Expense

Interest expense for the nine months ended September 30, 2024, was $8.8 million, a decrease of $4.7 million, or 34.8%, from $13.5 million for the nine months ended September 30, 2023. This decrease primarily related to interest expense recognized for the nine months ended September 30, 2023 for short and long-term related-party notes payable that were repaid to Centennial during the second quarter of 2023, as well as lower average debt balances in the cash management program for working capital needs during the current period compared to the prior year period.

Other Income

Other income for the nine months ended September 30, 2024, was $3.7 million, an increase of $1.0 million, or 37.0%, from $2.7 million for the nine months ended September 30, 2023. This increase primarily related to miscellaneous income activity, including settlements, rebates and bank fees.

Income Taxes

Income taxes for the nine months ended September 30, 2024, were $37.6 million, an increase of $4.8 million, or 14.6%, from $32.8 million for the nine months ended September 30, 2023, reflecting higher income before taxes for the period. The effective tax rate was 25.7% for the nine months ended September 30, 2024, compared to 24.6% for the nine months ended September 30, 2023.

Income from Equity Method Investments

Income from equity method investments for the nine months ended September 30, 2024, was $7.8 million, an increase of $3.0 million, or 62.5%, from $4.8 million for the nine months ended September 30, 2023. This increase primarily related to increased progress on joint venture activity.

Segment Results of Operations For the Three and Nine Months Ended September 30, 2024 and 2023

We report our results under two reportable segments: Electrical & Mechanical, and Transmission & Distribution. The following table sets forth segment revenues and segment operating income for the periods indicated, as well as the percentage change from the prior comparative interim periods:

	Three months ended September 30,						Nine months ended September 30,
	2024		2023		% Change		2024		2023		% Change
	(In millions, except percentages)
Operating revenues:
Electrical & Mechanical	$	536.9	$	516.9	3.9	%	$	1,481.7	$	1,680.2	(11.8)	%
Transmission & Distribution	228.5		204.5		11.7	%	623.8		549.5		13.5	%
Eliminations	(4.4)		(4.0)		10.0	%	(15.5)		(11.0)		40.9	%
Consolidated revenues	$	761.0	$	717.4	6.1	%	$	2,090.0	$	2,218.7	(5.8)	%
Operating income:
Electrical & Mechanical	$	34.9	$	31.1	12.2	%	$	100.8	$	100.3	0.5	%
Transmission & Distribution	25.3		23.0		10.0	%	60.1		51.3		17.2	%
Corporate and other	(6.5)		(4.0)		(62.5)	%	(17.0)		(12.0)		(41.7)	%
Consolidated operating income	$	53.7	$	50.1	7.2	%	$	143.9	$	139.6	3.1	%

Three Months Ended September 30, 2024, Compared to Three Months Ended September 30, 2023

Operating Revenues

E&M segment revenues for the three months ended September 30, 2024, were $536.9 million, an increase of $20.0 million, or 3.9%, from $516.9 million for the three months ended September 30, 2023. The increase primarily

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related to higher revenues for the commercial and institutional end markets, partially offset by lower revenues for the industrial, service & other, and renewables end markets.

•Commercial revenues increased $60.8 million due to submarket activity in data centers from higher workloads, partially offset by reduced activity within hospitality from completion of large projects during 2023.

•Institutional revenues increased $17.1 million, driven by submarket activity in education and government from increased workloads, partially offset by lower workloads in healthcare.

•Industrial revenues decreased $39.5 million, due to reduced activity in the general industrial, high tech and government submarkets, partially offset by higher workloads in manufacturing.

•Service & other revenues softened by $9.6 million, largely the result of lower workloads due to dips in repair and maintenance demand.

•Renewables revenues eased by $8.8 million due to the timing of projects.

T&D segment revenues for the three months ended September 30, 2024, were $228.5 million, an increase of $24.0 million, or 11.7%, from $204.5 million for the three months ended September 30, 2023. The increase primarily related to increased revenues for both the utility and transportation end markets.

•Utility revenues increased $17.9 million due to higher workloads and submarket activity in transmission, underground, telecommunication, and substation, partially offset by softened workloads in distribution due to the timing of project availability.

•Transportation revenues increased $6.1 million with higher workloads across the traffic signalization and street lighting submarkets.

Operating Income

E&M segment operating income for the three months ended September 30, 2024, was $34.9 million, an increase of $3.8 million, or 12.2%, from $31.1 million for the three months ended September 30, 2023. The increase was primarily driven by end market activity with higher gross profit for institutional, industrial and service & other due to project mix, partially offset by gross profit dips in commercial and renewables due to the timing of projects. E&M gross profit percentage for the three months ended September 30, 2024 remained consistent with the three months ended September 30, 2023. Operating income was also impacted by lower provision for expected credit losses of $1.7 million and lower labor costs of $1.9 million, partially offset by cost increases for professional services of $0.6 million and general expenses of $1.2 million. Operating income, as a percentage of revenues, for our E&M segment increased to 6.5% for the three months ended September 30, 2024 compared to 6.0% for the three months ended September 30, 2023.

T&D segment operating income for the three months ended September 30, 2024, was $25.3 million, an increase of $2.3 million, or 10.0%, from $23.0 million for the three months ended September 30, 2023. The increase was the result of higher gross profit for utility, traffic signalization and street lighting projects due to project mix. However, T&D gross profit percentage slightly reduced due to project mix for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. Operating income was also impacted by cost increases for professional services of $0.5 million and general expenses of $0.4 million, partially offset by decreases in labor costs of $0.4 million. Operating income, as a percentage of revenues, for our T&D segment remained relatively consistent at 11.1% for the three months ended September 30, 2024 compared to 11.3% for the three months ended September 30, 2023.

The increase in corporate and other costs during the three months ended September 30, 2024 was primarily due to higher labor costs of $1.2 million to support the operational growth of the business, higher professional services of $0.4 million and general expenses of $0.9 million including office, charitable contribution and insurance expense.

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Nine Months Ended September 30, 2024, Compared to Nine Months Ended September 30, 2023

Operating Revenues

E&M segment revenues for the nine months ended September 30, 2024, were $1,481.7 million, a decrease of $198.5 million, or 11.8%, from $1,680.2 million for the nine months ended September 30, 2023. The decrease primarily related to lower revenues for the industrial, commercial, service & other, and renewables end markets, partially offset by higher revenues for the institutional end market.

•Industrial revenues decreased $131.0 million from reduced activity in the general industrial, high tech and government submarkets, partially offset by higher workloads in manufacturing.

•Commercial revenues eased $87.7 million with softened activity in the hospitality submarket from completion of large projects during 2023, partially offset by increased data center activity due to higher workloads.

•Service & other revenues dipped $43.1 million, largely the result of lower workloads due to decreased repair and maintenance demand.

•Renewables revenues were $16.4 million lower due to timing of projects.

•Institutional revenues increased $79.7 million with higher workloads in the government, education and healthcare submarkets.

T&D segment revenues for the nine months ended September 30, 2024, were $623.8 million, an increase of $74.3 million, or 13.5%, from $549.5 million for the nine months ended September 30, 2023. The increase primarily related to higher utility and transportation end-market revenues.

•Utility revenues increased $51.1 million due to higher workloads and submarket activity in transmission, telecommunication and substation, partially offset by softening workloads in the storm and government submarkets from the timing of project availability.

•Transportation revenues increased $23.2 million with higher workloads in the traffic signalization and street lighting submarkets.

Operating Income

E&M segment operating income for the nine months ended September 30, 2024, was $100.8 million, an increase of $0.5 million, or 0.5%, from $100.3 million for the nine months ended September 30, 2023. The increase was primarily driven by higher gross profit for institutional and renewables projects due to timing of project completion and project starts, largely offset by a dip in gross profit in the commercial, industrial and service & other end markets due to project mix. E&M gross profit percentage increased from lower overall operating costs due to lower workloads and project efficiencies. Operating income was also impacted by lower provision for expected credit losses of $4.4 million and lower labor costs of $1.1 million, largely offset by cost increases for professional services of $2.1 million and general expenses of $3.1 million. Operating income, as a percentage of revenues, for our E&M segment increased to 6.8% for the nine months ended September 30, 2024 compared to 6.0% for the nine months ended September 30, 2023.

Operating income in the T&D segment for the nine months ended September 30, 2024, was $60.1 million, an increase of $8.8 million, or 17.2%, from $51.3 million for the nine months ended September 30, 2023. The increase was the result of higher gross profit in the utility end market due to project mix and efficiencies, as well as higher gross profit for street lighting and traffic signalization projects. T&D gross profit percentage for the nine months ended September 30, 2024 remained consistent with the nine months ended September 30, 2023. Operating income was also impacted by higher professional services of $1.2 million, labor costs of $0.3 million and general expenses of $0.5 million. Operating income, as a percentage of revenues, for our T&D segment increased to 9.6% for the nine months ended September 30, 2024 compared to 9.3% for the nine months ended September 30, 2023.

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The increase in corporate and other costs during the nine months ended September 30, 2024 was primarily due to higher labor costs of $2.5 million to support the operational growth of the business, higher professional services of $0.9 million and general expenses of $1.6 million including office, charitable contribution and insurance expense.

Backlog

Backlog is a common measurement in the construction services industry. Our determination of backlog consists of the uncompleted portion of services to be performed under job-specific contracts. 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, 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 year may not be indicative of the revenue or net income expected to be realized in the following year. Backlog should not be relied upon as a standalone indicator of future results. Factors noted in “Risk Factors” included in our Form 10 could cause revenues to be realized in periods and at levels that are different from originally projected.

Subject to the foregoing discussions, the following table provides estimated backlog as of the dates indicated and the amounts we reasonably estimate will be recognized within the next 12 months following September 30, 2024:

	Amounts estimated to be recognized within 12 months		Total backlog as of September 30, 2024		Total backlog as of December 31, 2023		Total backlog as of September 30, 2023
	(In millions)
Electrical & Mechanical	$	1,913.3	$	2,567.9	$	1,685.6	$	1,526.0
Transmission & Distribution	270.4		316.9		325.3		324.0
Total	$	2,183.7	$	2,884.8	$	2,010.9	$	1,850.0

Changes in backlog from period to period are primarily the result of fluctuations in the timing of revenue recognition of contracts.

The increase in E&M backlog from September 30, 2024, compared to December 31, 2023 and September 30, 2023, primarily reflected additional commercial, institutional and renewables projects, partially offset by completed or near completion projects during the period.

The decrease in T&D backlog from September 30, 2024, compared to December 31, 2023 and September 30, 2023, primarily reflected completed or near completion utility and transportation projects, partially offset by additional projects added during the period.

Non-GAAP Financial Measures

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.

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EBITDA and EBITDA Margin

We utilize EBITDA and EBITDA margin to consistently assess our operating performance and as a basis for strategic planning and forecasting since we believe that EBITDA closely correlates to long-term enterprise value. We believe that measuring performance on an EBITDA basis is useful to investors because it enables a more consistent evaluation of our operational performance period to period. We also believe these non-GAAP financial measures, in addition to the corresponding GAAP measures of net income and net income margin, are useful to investors to provide meaningful information about operational efficiency by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Investors also may use EBITDA to calculate leverage as a multiple of EBITDA. We use EBITDA and EBITDA margin, in addition to GAAP metrics, to evaluate our operating results, calculate compensation packages and determine leverage as a multiple of EBITDA to establish the appropriate funding of operations.

EBITDA is calculated by adding back interest expense, 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.

The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin.

	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
	(In millions, except percentages)
Net income	$	41.8		$	36.0		$	109.0		$	100.8
Interest expense	2.8			4.7			8.8			13.5
Income taxes	14.0			11.4			37.6			32.8
Depreciation and amortization	6.4			5.9			18.5			17.3
EBITDA	$	65.0		$	58.0		$	173.9		$	164.4
Operating revenues	$	761.0		$	717.4		$	2,090.0		$	2,218.7
Net income margin	5.5		%	5.0		%	5.2		%	4.5		%
EBITDA margin	8.5		%	8.1		%	8.3		%	7.4		%

Free Cash Flow

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.

Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures.

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The following table reconciles cash provided by operating activities to free cash flow.

	Nine months ended September 30,
	2024		2023
	(In millions)
Net cash provided by operating activities	$	82.7	$	61.4
Purchases of property, plant and equipment	(34.5)		(28.1)
Cash proceeds from sale of property, plant and equipment	9.6		12.2
Free cash flow	$	57.8	$	45.5

Liquidity and Capital Resources

As of September 30, 2024 and December 31, 2023, we had cash and cash equivalents of $0.6 million and $1.6 million, respectively. We historically participated in MDU Resources’ centralized cash management program through Centennial, including its overall financing arrangements. After the Separation, we no longer rely on MDU Resources’ central cash management and financing program and instead rely on our own credit and financing arrangements. We have implemented our own centralized cash management model and will use cash on hand and third-party credit facilities to fund day-to-day operations.

Our ability to fund our cash needs depends on the ongoing ability to generate cash from operations and obtain debt financing with competitive rates. We rely on access to capital markets as sources of liquidity for capital requirements not satisfied by cash flows from operations.

Our principal uses of cash are to fund our operations, working capital needs, capital expenditures, repayment of borrowings and strategic business development transactions.

On October 31, 2024, we entered into a five-year senior secured credit agreement (“the Credit Agreement”), whereby we have the capacity to incur indebtedness of up to $525.0 million, consisting of $300.0 million in aggregate principal amount of term loans and a $225.0 million revolving credit facility. Letters of credit are available under the Credit Agreement in an aggregate amount of up to $50.0 million. The term loans and the revolving credit facility will both bear interest at an annual rate equal to adjusted term Secured Overnight Financing Rate, defined in a customary manner (“Term SOFR”) plus an applicable rate. The Credit Agreement contains financial covenants requiring us to maintain a maximum consolidated total net leverage ratio of 3.00:1.00 and a minimum interest coverage ratio of 3.00:1.00, in each case measured as of the last day of each fiscal quarter. The consolidated total net leverage ratio may be increased at our option to 3.50:1.00 in connection with certain qualifying material acquisitions. The covenants also include restrictions on the sale of certain assets, loans and investments.

We received net proceeds of $332.1 million, which included the term loans and $40.0 million drawn under the revolving credit facility, net of $7.9 million of debt issuance costs. In connection with the borrowings, we used $290.0 million of the net proceeds of such indebtedness to repay $230.0 million of outstanding indebtedness with Centennial and to pay a $60.0 million dividend to MDU Resources, with the remaining $42.1 million being retained by us.

Working Capital

Working capital, as defined as current assets minus current liabilities, was $327.0 million and $313.9 million as of September 30, 2024 and December 31, 2023, 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, 2024, we expect that

44

substantially all unbilled receivables will be billed to customers in the normal course of business within the next 12 months.

Capital Expenditures

Our cash capital expenditures for the nine months ended September 30, 2024, were $34.5 million, or $24.9 million net of proceeds from asset disposals, compared to $28.1 million, or $15.9 million net of proceeds from asset disposals, for the nine months ended September 30, 2023. Capital expenditures were funded by internal sources, and related-party borrowings from MDU Resources and Centennial. Capital expenditures for the nine months ended September 30, 2024 and 2023, were primarily used for vehicle and equipment additions to support the growth of our business.

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 capital expenditures for the year ended December 31, 2024, to be approximately $52.0 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.

We also continue to evaluate the potential for future acquisitions and other growth opportunities that would be incremental to our capital program; however, they are dependent on the availability of opportunities and, as a result, capital expenditures may vary significantly from the estimates provided.

Cash Flows

The following table summarizes our net cash provided by (used in) operating, investing and financing activities for the nine months ended September 30, 2024 and 2023:

Nine months ended September 30,	2024		2023
	(In millions)
Net cash provided by (used in):
Operating activities	$	82.7	$	61.4
Investing activities	(25.5)		(16.4)
Financing activities	(58.2)		(46.5)
Decrease in cash and cash equivalents	(1.0)		(1.5)
Cash and cash equivalents - beginning of period	1.6		2.1
Cash and cash equivalents - end of period	$	0.6	$	0.6

Operating Activities

Cash provided by operating activities totaled $82.7 million in the nine months ended September 30, 2024, compared to $61.4 million in the nine months ended September 30, 2023, an increase of $21.3 million. The change in cash provided by operating activities was the result of increased earnings and changes in working capital components which resulted in a use of $20.4 million in the nine months ended September 30, 2024, compared to a use of $52.4 million in the nine months ended September 30, 2023. The working capital changes were primarily driven by project timing, workload activity and billing fluctuations, with increases in accounts payable, net contract liabilities and other current liabilities of $55.4 million, $40.1 million and $26.2 million, respectively, partially offset by an increase in accounts receivable of $92.2 million.

45

Investing Activities

Cash used in investing activities totaled $25.5 million in the nine months ended September 30, 2024, compared to $16.4 million in the nine months ended September 30, 2023, an increase of $9.1 million in cash used for investing. The increase in cash used for investing activities was primarily due to higher capital expenditures of $6.4 million and lower proceeds from the sale of property of $2.7 million.

Financing Activities

Cash used in financing activities totaled $58.2 million in the nine months ended September 30, 2024, compared to $46.5 million in the nine months ended September 30, 2023, an increase of $11.7 million in cash used for financing. The increase in cash used for financing activities was primarily the result of higher cash outflows of $67.2 million for transfers to Centennial and lower net cash inflows of $16.5 million from the related-party cash management program. Partially offsetting these increased uses of cash were $72.0 million of repayments of short- and long-term related-party debt during the nine months ended September 30, 2023. There were no such repayments made during the nine months ended September 30, 2024.

Material Cash Requirements

There were no material changes in our contractual obligations from those reported in our Form 10 other than as set forth below.

In the normal course of business, we enter into contracts and commitments that oblige us to make payments in the future. Information regarding our obligations under related-party debt and lease arrangements are provided in Note 15 – Related-Party Transactions and Note 7 – Leases, respectively, in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

In addition, we participate in certain multiemployer defined benefit pension plans. We cannot reasonably estimate future payments for our obligation to these plans, which are dependent on a number of factors.

In connection with the Separation, we used net proceeds of $332.1 million from the Credit Agreement, including $40.0 million drawn under the revolving credit facility, to repay $230.0 million of outstanding indebtedness with Centennial and to pay a $60.0 million dividend to MDU Resources.

Under the Credit Agreement, we will be required to make quarterly amortization payments of 5% per annum of the original principal term loans balance of $300.0 million in addition to regularly required interest payments. As a result, we will need to repay at least $15.0 million per year toward the outstanding principal term loans balance.

Off-Balance Sheet Arrangements

As is common in our industry, we have entered into certain off-balance sheet arrangements in the ordinary course of business that result in risks not directly reflected on our balance sheet. Our significant off-balance sheet transactions include surety guarantees, performance guarantees, letters of credit obligations and firm purchase commitments for maintenance items, materials and lease obligations.

Some of our customers require us to post performance bonds issued by a surety. Those bonds guarantee the customer that we will perform under the terms of a contract. In the event that we fail to perform under a contract, the customer may demand the surety to pay or perform under our bond. Surety bonds expire at various times ranging from final completion of a project to a period extending beyond contract completion in certain circumstances. Such amounts also can fluctuate from period to period based upon the mix and level of our bonded operating activity. Our relationship with our sureties is such that we will indemnify the sureties for any expenses they incur in connection with any of the bonds they issue on our behalf.

As of September 30, 2024 and December 31, 2023, we had approximately $1.40 billion and $1.56 billion in original face amount surety bonds outstanding for projects, respectively. As of September 30, 2024 and December 31, 2023, $1.23 billion and $1.33 billion of bonding was posted for E&M, respectively, and $170.5 million and $224.0 million of bonding was posted for T&D, respectively. These amounts were not reflected on the unaudited

46

condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023. As of September 30, 2024 and December 31, 2023, the maximum potential amount of payments we would be required to make under the outstanding surety bonds was $845.3 million and $299.9 million, respectively.

To date, we are not aware of any losses in connection with surety bonds that have been posted on our behalf, and we do not expect to incur significant losses in the foreseeable future. If we experience changes in our bonding relationships or if there are adverse changes in the surety industry, there would be no assurance that we would be able to effectuate alternatives to providing surety bonds to our customers or to obtain, on favorable terms, sufficient additional work that does not require surety bonds. Accordingly, a reduction in the availability of surety bonds could have a material adverse effect on our financial position, financial results and cash flows.

We also guarantee obligations of our subsidiaries under certain contracts. Generally, we are liable under such an arrangement only if our subsidiary fails to perform its obligations under the contract. As of September 30, 2024 and December 31, 2023, the fixed maximum amounts guaranteed under these agreements aggregated to $557.5 million and $341.4 million, respectively. Historically, we have not incurred any substantial liabilities as a consequence of these guarantees. However, in the event of default under these guarantee obligations, the Company would be required to make payments to satisfy its guarantees.

In addition, some of our customers and vendors may require us to post letters of credit as a means of guaranteeing performance under our contracts and ensuring payment by us to subcontractors and vendors. If our customer has reasonable cause to effect payment under a letter of credit, we would be required to reimburse our creditor for the letter of credit and we may be required to record a charge to earnings for the reimbursement. As of September 30, 2024 and December 31, 2023, the fixed maximum amounts guaranteed under these letters of credit aggregated to $2.2 million and $0.2 million, respectively, all of which expire within the next 12 months. In the event of default under these letter-of-credit obligations, we would be obligated for reimbursement of payments made under the letters of credit. We believe it is unlikely that any material claims will be made under these letters of credit.

Furthermore, we have issued guarantees to third parties related to the routine purchase of maintenance items, materials and lease obligations for which no fixed maximum amounts have been specified and these guarantees have no scheduled maturity date. In the event we default under these obligations, we would be required to make payments to satisfy these guarantees.

We do not have any other material financial guarantees or off-balance sheet arrangements other than those disclosed herein. For more information on the circumstances regarding our guarantees and off-balance sheet arrangements, refer to Note 14 – Commitments and Contingencies in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Recently Issued Accounting Pronouncements

For a discussion of recently issued accounting standards, see Note 3 – Summary of Significant Accounting Policies in the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report.

Critical Accounting Estimates

Our critical accounting estimates include revenue recognized using the cost-to-cost measure of progress for contracts; impairment testing of goodwill; and tax provisions. There were no material changes in our critical accounting estimates from those that were previously reported in our Form 10.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks in the ordinary course of our business, including the effects of interest rate changes, inflation and labor risk. Information relating to quantitative and qualitative disclosures about these market risks is set forth below. For more information on our risk factors, including market risk factors, that could be materially harmful to our business, prospects, financial condition and/or financial results if they occur, please refer to our Form 10.

47

Interest Rate Risk

The primary objective of our investment activities is to maintain cash reserves to meet captive insurance obligations, employee benefit obligations and contractual obligations. A mismatch between the duration of liabilities and the duration of investments could expose us to interest rate risk. If interest rates fluctuate, the value of assets may not adequately cover liabilities. And if our investments mature during a period of lower interest rates, we may face reinvestment risk and potentially earn less income on reinvested funds. In future periods, we will continue to evaluate our investments in order to ensure that we continue to meet our overall objectives. As part of the Separation, we have our own captive insurance arrangement in order to manage our operational risk. Refer to Note 16 – Subsequent Events of the unaudited condensed consolidated financial statements for more information regarding the new captive insurance arrangement.

Through MDU Resources, Centennial operated under a centralized cash management program and was the legal obligor of our historical debt and borrowings. The debt and interest allocation directly attributable to Everus was reflected in the unaudited condensed consolidated balance sheets and statements of income.

In connection with the Separation, we entered into a five-year senior secured credit agreement, consisting of term loans and a revolving credit facility. The term loans and the revolving credit facility will both bear interest at Term SOFR plus an applicable rate exposing us to higher interest rate risk. The level of our interest rate risk will depend on our utilization of the revolving credit facility and will be sensitive to changes in the general level of interest rates. Refer to Note 16 – Subsequent Events of the unaudited condensed consolidated financial statements for more information regarding our credit facilities.

Inflation Risk

Inflation rates continue to have an effect on worldwide economies. Inflation generally affects us by increasing our cost of labor and also may increase transportation and construction costs due to higher fuel, material and/or supply prices. We do not believe that inflation has had a material effect on our business, financial condition, or financial results for the periods included in our unaudited condensed consolidated financial statements. We continue to monitor the impact of inflation in order to minimize its effects through our pricing strategies, productivity improvements and cost reductions. If our costs were to become subject to significant inflationary pressures, we may be unable to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and financial results.

Labor Risk

Increases in minimum wage, health care and other benefit costs may have a material adverse effect on our labor costs. The market for labor in the United States is competitive and has resulted in pressure on wages and may continue to do so in the future. Increases in minimum wage and market pressure also may result in increases in the wage rates paid for non-minimum wage positions.

A significant portion of our employees are unionized and our business and financial results could be adversely affected if future labor negotiations or contracts were to increase our costs or further restrict our ability to maximize the efficiency of our operations, or if more of our employees were to become unionized. In addition, if we are unable to negotiate labor contracts on reasonable terms, if we experience significant labor unrest or other business interruptions in connection with labor negotiations or otherwise, our ability to produce and deliver our services could be impaired.

48

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. The Company's disclosure controls and other procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. The Company's disclosure controls and other procedures are designed to provide reasonable assurance that information required to be disclosed is accumulated and communicated to management, including the Company's chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure. The Company's management, with the participation of the Company's chief executive officer and chief financial officer, has evaluated the effectiveness of the Company's disclosure controls and other procedures as of the end of the period covered by this report. Based upon that evaluation, the chief executive officer and the chief financial officer have concluded that, as of the end of the period covered by this report, such controls and procedures were effective at a reasonable assurance level.

Changes in Internal Controls

There have been no changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

49

PART II -- OTHER INFORMATION

Item 1. Legal Proceedings

As of September 30, 2024, there were no material changes to the Company's legal proceedings that were previously reported in the Company’s Registration Statement on Form 10 (“Form 10”), which became effective with the SEC on October 17, 2024 and is not incorporated by reference herein.

Item 1A. Risk Factors

As of September 30, 2024, there were no material changes to the Company's risk factors provided in the Company’s Form 10. Please refer to the Company's risk factors that are disclosed within the Company’s Form 10 that could be materially harmful to the Company's business, prospects, financial condition and/or financial results if they occur.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Rule 10b5-1 Trading Arrangements

During the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Leases Reclassification

Subsequent to the filing of the Company’s financial statements on Form 10, filed with the Securities and Exchange Commission on September 12, 2024, which is not incorporated by reference herein, for the three and six months ended June 30, 2024 and 2023 and for the year ended December 31, 2023, the Company’s management determined that the Company incorrectly presented variable lease cost and short-term lease cost due to a clerical error when preparing the financial statements, including the related footnotes. The Company determined that this classification error is immaterial to the previously issued financial statements.

As such, the Company intends to correct these disclosures in its audited consolidated financial statements for the year ended December 31, 2023 in the Company’s Annual Report on Form 10-K for the year ending December 31, 2024 and unaudited condensed consolidated financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ending June 30, 2025. The financial information and footnotes contained in this Quarterly Report on Form 10-Q reflect the correction of the aforementioned classification error. The reclassification had no impact to results of operations, balance sheets, or cash flows for any of the periods described.

50

The following table summarizes the effects of the restatement on Note 8 – Leases for the Company’s operating leases for the year ended December 31, 2023:

	As Previously Reported		Adjustments		As Restated
	(In thousands)
Lease costs:
Operating lease cost	$	26,386	$	—	$	26,386
Variable lease cost	99,964		(98,749)		1,215
Short-term lease cost	1,215		98,749		99,964
Total lease costs	$	127,565	$	—	$	127,565

The following table summarizes the effects of the restatement on Note 7 – Leases for the Company’s operating leases for the three months ended June 30, 2024:

	As Previously Reported		Adjustments		As Restated
	(In thousands)
Lease costs:
Operating lease cost	$	7,484	$	—	$	7,484
Variable lease cost	28,883		(28,592)		291
Short-term lease cost	291		28,592		28,883
Total lease costs	$	36,658	$	—	$	36,658

The following table summarizes the effects of the restatement on Note 7 – Leases for the Company’s operating leases for the three months ended June 30, 2023:

	As Previously Reported		Adjustments		As Restated
	(In thousands)
Lease costs:
Operating lease cost	$	6,449	$	—	$	6,449
Variable lease cost	25,831		(25,533)		298
Short-term lease cost	298		25,533		25,831
Total lease costs	$	32,578	$	—	$	32,578

The following table summarizes the effects of the restatement on Note 7 – Leases for the Company’s operating leases for the six months ended June 30, 2024:

	As Previously Reported		Adjustments		As Restated
	(In thousands)
Lease costs:
Operating lease cost	$	14,613	$	—	$	14,613
Variable lease cost	47,738		(47,140)		598
Short-term lease cost	598		47,140		47,738
Total lease costs	$	62,949	$	—	$	62,949

-51-

The following table summarizes the effects of the restatement on Note 7 – Leases for the Company’s operating leases for the six months ended June 30, 2023:

	As Previously Reported		Adjustments		As Restated
	(In thousands)
Lease costs:
Operating lease cost	$	12,755	$	—	$	12,755
Variable lease cost	46,914		(46,318)		596
Short-term lease cost	596		46,318		46,914
Total lease costs	$	60,265	$	—	$	60,265

-52-

Item 6. Exhibits

				Incorporated by Reference
Exhibit Number	Exhibit Description	Filed Herewith	Furnished Herewith	Form	Exhibit	Filing Date	File Number
2.1	Separation and Distribution Agreement, dated as of October 31, 2024, by and between Everus Construction Group, Inc. and MDU Resources Group, Inc.†			8-K	2.1	11/1/24	001-42276
3.1	Amended and Restated Certificate of Incorporation of Everus Construction Group, Inc.			8-K	3.1	11/1/24	001-42276
3.2	Amended and Restated Bylaws of Everus Construction Group, Inc.			8-K	3.2	11/1/24	001-42276
10.1	Employment Offer Letter with Jeffrey S. Thiede, dated July 11, 2024+			10-12B	10.9	9/12/24	001-42276
10.2	Employment Offer Letter with Thomas D. Nosbusch, dated August 15, 2024+			10-12B	10.10	9/12/24	001-42276
10.3	Employment Offer Letter with Maximillian J Marcy, dated July 11, 2024+			10-12B	10.11	9/12/24	001-42276
10.4	Employment Offer Letter with Paul R. Sanderson, dated July 11, 2024+			10-12B	10.12	9/12/24	001-42276
10.5	Employment Offer Letter with Jon B. Hunke, dated July 11, 2024+			10-12B	10.13	9/12/24	001-42276
10.6	Retention Bonus Letter with Jon B. Hunke, dated July 11, 2024+			10-12B	10.14	9/12/24	001-42276
10.7	Form of Everus Construction Group, Inc. Director and Officer Indemnification Agreement+			10-12B	10.15	9/12/24	001-42276
10.8	Transition Services Agreement, dated as of October 31, 2024, by and between Everus Construction Group, Inc. and MDU Resources Group, Inc.†			8-K	10.1	11/1/24	001-42276
10.9	Tax Matters Agreement, dated as of October 31, 2024, by and between Everus Construction Group, Inc. and MDU Resources Group, Inc.			8-K	10.2	11/1/24	001-42276
10.10	Employee Matters Agreement, dated as of October 31, 2024, by and between Everus Construction Group, Inc. and MDU Resources Group, Inc.			8-K	10.3	11/1/24	001-42276
10.11	Credit Agreement, dated as of October 31, 2024, by and among Everus Construction Group, Inc., JPMorgan Chase Bank, N.A. and Lenders and L/C Issuers party thereto.†			8-K	10.4	11/1/24	001-42276
10.12	Everus Construction Group, Inc. Long-Term Performance-Based Incentive Plan.+			8-K	10.5	11/1/24	001-42276
10.13	Everus Construction Group, Inc. Executive Incentive Compensation Plan, including Rules and Regulations.+			8-K	10.6	11/1/24	001-42276
10.14	Everus Construction Group, Inc. Deferred Compensation Plan—Plan Document and Adoption Agreement.+			8-K	10.7	11/1/24	001-42276
10.15	Everus Construction Group, Inc. Director Compensation Policy.+			8-K	10.8	11/1/24	001-42276
10.16	Everus Construction Group, Inc. Deferred Compensation Plan for Directors.+			8-K	10.9	11/1/24	001-42276
10.17	Everus Construction Group, Inc., 401(k) Retirement Plan, effective September 1, 2024+	X
31.1	Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Chief Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X

-53-

				Incorporated by Reference
Exhibit Number	Exhibit Description	Filed Herewith	Furnished Herewith	Form	Exhibit	Filing Date	File Number
32.1	Certification of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		X
32.2	Certification of Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		X
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

+ Management contract, compensatory plan or arrangement.

† Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon its request

-54-

Signatures

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Everus Construction Group, Inc.
Dated:	November 21, 2024	By:	/s/ Maximillian J Marcy
			Name:	Maximillian J Marcy
			Title:	Vice President, Chief Financial Officer and Treasurer
				(Principal Financial Officer)
		By:	/s/ Jon B. Hunke
			Name:	Jon B. Hunke
			Title:	Vice President and Chief Accounting Officer
				(Principal Accounting Officer)

-55-

EX-10.17

EVERUS 401(K) PLAN

Effective September 1, 2024

TABLE OF CONTENTS

			Page
INTRODUCTION			1
ARTICLE I DEFINITIONS			2
ARTICLE II PARTICIPATION			8
	2.1	Participation Requirements	8
	2.2	Termination of Participation	8
	2.3	Reemployment	9
ARTICLE Ill CONTRIBUTIONS			10
	3.1	Deferral Contributions	10
	3.2	Changing Deferral Contribution Election	11
	3.3	In-Plan Roth Conversion	11
	3.4	Matching Contributions	11
	3.5	Employer Contributions	12
	3.6	Special Limitations on Deferral Contributions	13
	3.7	Special Matching Contribution Limitations	16
	3.8	Contribution Limitation	17
	3.9	Rollover Contributions	19
ARTICLE IV ACCOUNTS; VESTING; DISTRIBUTIONS			21
	4.1	Participants' Accounts	21
	4.2	Vesting	21
	4.3	Distribution	23
	4.4	Method of Payment	23
	4.5	Withdrawals by Participants	23
	4.6	Timing of Distributions	25
	4.7	Distributions Made in Accordance with Code Section 401(a)(31)	27
	4.8	Loans to Participants	28
ARTICLE IV A MINIMUM DISTRIBUTION REQUIREMENTS			31
	4A.1	General Rules	31
	4A.2	Time and Manner of Distribution	31
	4A.3	Required Minimum Distributions During Participant's Lifetime	33
	4A.4	Required Minimum Distributions After Participant's Death	33
	4A.5	Definitions	35
ARTICLE V INVESTMENT OF CONTRIBUTIONS			37
	5.1	Making of Contributions	37
	5.2	Investment	37
	5.3	Voting of Common Stock of the Company	39
	5.4	Tendering of Stock	40
	5.5	Dividend Election	40
ARTICLE VI PLAN ADMINISTRATION; CLAIMS FOR BENEFITS			42
	6.1	Named Fiduciaries	42

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167624341.2

TABLE OF CONTENTS

(continued)

			Page
	6.2	Administrative Powers and Duties	42
	6.3	Claims Procedures	43
	6.4	Applications and Forms	43
	6.5	Facility of Distribution and Payment	44
	6.6	Beneficiary Designations	44
	6.7	Form and Method of Designation	44
	6.8	Administrative Expenses	45
ARTICLE VII TRUST FUND			46
	7.1	Trust Agreement.	46
	7.2	Reversion	46
ARTICLE VIII AMENDMENT AND TERMINATION			47
	8.1	Amendments	47
	8.2	Right to Terminate	48
	8.3	Action by the Company	48
	8.4	Distribution of Accounts upon Plan Termination	48
ARTICLE IX ADOPTION OF THE PLAN BY AFFILIATES			49
	9.1	Adoption	49
	9.2	Withdrawal	49
ARTICLE X GENERAL			50
	10.1	No Guarantee of Employment.	50
	10.2	Nonalienation of Benefits	50
	10.3	Missing Persons	50
	10.4	Governing Law	50
	10.5	Merger or Consolidation of Plan	50
	10.6	Distribution to Alternate Payees	51
	10.7	Construction	51
ARTICLE XI TOP-HEAVY PROVISIONS			52
	11.1	Top-Heavy Plan	52
	11.2	Operative Provisions	52
ARTICLE XII SPECIAL RULES FOR CERTAIN OFFICERS			54
EXECUTION			55
SCHEDULE A SPINOFF PROVISIONS			56
SCHEDULE B MATCHING CONTRIBUTIONS			58
SCHEDULE C PROFIT SHARING CONTRIBUTIONS			59
SCHEDULE D RETIREMENT CONTRIBUTIONS— CERTAIN PARTICIPATING AFFILIATES			60

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167624341.2

TABLE OF CONTENTS

(continued)

	Page
SCHEDULE E RETIREMENT CONTRIBUTIONS— CERTAIN PENSION PLAN PARTICIPANTS	61
SCHEDULE F PRIOR PLAN MERGERS	63

-iii-

167624341.2

INTRODUCTION

The Company hereby establishes the Everus 401(k) Plan (the "Plan") effective September 1, 2024, as a spinoff of a portion of the MDU Resources Group, Inc. 401(k) Retirement Plan (the "MDU 401(k) Plan") in connection with the planned corporate spinoff of MDU Resources Group, lnc.'s construction services business that includes Everus Construction, Inc., and certain other Affiliates. Plan provisions related to the spinoff are mainly set forth in Schedule A herein and supersede other provisions of the Plan to the extent necessary to eliminate inconsistencies between Schedule A and the other provisions. The Plan is intended to provide a means for deferred savings and investment by Eligible Employees and to afford security for their retirement. The Plan is intended to comply with the requirements of ERISA and Sections 401(a) and 401(k) of the Code. The provisions of the Plan effective September 1, 2024, relating to eligibility, vesting, and benefits entitlement, shall apply solely to any person who completes an Hours of Service as an Eligible Employee on or after such date. The rights and benefits of any person generally shall be governed by the terms of the Plan as in effect at the time such person ceases to be an Eligible Employee.

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ARTICLE I

DEFINITIONS

The following terms, when used herein, shall have the meanings stated below unless a different meaning is otherwise indicated or required by the context.

Account - The Pretax Deferral Account, Roth Deferral Account, In-Plan Roth Conversion Account, Matching Contribution Account, ESOP Account, Rollover Account, Profit Sharing Account, and Retirement Contribution Account, respectively, maintained for a Participant (or an Eligible Employee), as applicable. In addition, the Committee may establish additional accounts and subaccounts as it may deem necessary for the proper administration of the Plan, and "Account" may also refer to any or all such additional accounts and subaccounts.

Affiliate - The Company and any other corporation, trade or business that, together with the Company, is treated as a single employer with the Company pursuant to Code Section 414(b), (c), (m), or (o), except that with respect to Section 3.8, "pursuant to Code Section 414(b), (c), (m), or (o), as modified by Code Section 415(h)" shall be substituted for the preceding reference to "pursuant to Code Section 414(b), (c), (m), or (o).

Code - The Internal Revenue Code of 1986, as amended. Reference to any specific Code section shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing, or superseding such section.

Committee - The MDU Resources Group, Inc. Employee Benefits Committee appointed to administer the Plan pursuant to Article VI or its delegate, as applicable, prior to the Distribution Date. Effective as of the Distribution Date, the Committee means the Everus Construction Group, Inc. Employee Benefits Committee appointed to administer the Plan pursuant to Article VI or its delegate, as applicable.

Common Stock - Common stock of the Company.

Company - MDU Resources Group, Inc., prior to the Distribution Date. Effective as of the Distribution Date, the Company means Everus Construction Group, Inc., or any successor thereto.

Compensation - The total compensation paid to an Eligible Employee by the Employer (not in excess of $345,000 for the 2024 Plan Year, as adjusted by the Secretary of the Treasury to reflect increases in the cost of living), unreduced by any deferral contributions of the Eligible Employee to the Plan, and any amount that is contributed by the Employer pursuant to a salary reduction agreement and that is not

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includible in the gross income of an Employee under Code Sections 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(8), 402(k), or 457(b), including any differential wage payment (as defined in Code Section 3401(h)(2)), but excluding other contributions to the Plan, contributions to other employee benefit plans, relocation allowances, club membership reimbursements, the cost of group life insurance that is added to taxable income of the Eligible Employee, and any other extra or additional compensation from the Employer that does not constitute base compensation, such as bonuses and other incentive compensation.

Disability - A physical or mental condition of an Eligible Employee that results in permanent and total disability as defined by the Social Security Administration.

Distributee - Distributee means an Employee or former Employee. In addition, the Employee's (or former Employee's) surviving Spouse and the Employee's (or former Employee's) Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are Distributees with regard to the interest of the Spouse or former Spouse. A Distributee also means the Employee's (or former Employee's) non-Spouse designated beneficiary, in which case, the distribution can only be transferred to a traditional IRA or Roth IRA established on behalf of the non-Spouse designated beneficiary for the purpose of receiving the distribution.

Distribution Date - The Distribution Date defined in the Separation and Distribution Agreement between MDU Resources Group, Inc., and Everus Construction Group, Inc., that provides for the spinoff of MDU Resources Group, lnc.'s construction services business. Effective as of the Distribution Date, the Everus Affiliates (defined in Section A-2) shall cease to be a single employer with MDU Resources Group, Inc., pursuant to Code Section 414(b), (c), (m), or (o).

Effective Date - The Effective Date of the Plan is September 1, 2024.

Eligible Employee - Eligible Employee means each Employee who is at least 18 years of age and actively employed by the Employer. Notwithstanding the foregoing, unless specifically approved as an Eligible Employee by the Committee, an Employee of an Employer shall not be an Eligible Employee during any time when such Employee is (1) eligible to participate in a multiemployer plan as defined in ERISA Section 3(37) to which the Employer contributes, or (2) covered by a collectively bargained unit that has not bargained for the Plan for such Employee. A Leased Employee shall not be an Eligible Employee.

Eligible Retirement Plan - Eligible Retirement Plan means (1) an individual retirement account described in Code Section 408(a) or 408A, (2) an individual retirement annuity described in Code Section

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408(b), (3) an annuity plan described in Code Section 403(a), (4) an annuity contract described in Code Section 403(b), (5) an eligible plan under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to separately account for amounts transferred into such plan from this Plan, or (6) a qualified plan described in Code Section 401(a) that accepts the Distributee's Eligible Rollover Distribution. This definition shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p). If any portion of an Eligible Rollover Distribution is attributable to payments or distributions from a Roth Deferral Account, an Eligible Retirement Plan with respect to such portion shall include only another designated Roth account of the individual from whose Account the payments or distributions were made or a Roth IRA of such individual.

Eligible Rollover Distribution - Eligible Rollover Distribution means any distribution of all or any portion of the balance to the credit of the Distributes, except that an Eligible Rollover Distribution does not include (1) any distribution that is one of a series of substantially equal periodic payments made (not less frequently than annually) for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated beneficiary, or for a specified period of ten years or more, (2) any distribution to the extent such distribution is required under Code Section 401(a)(9), (3) any hardship distribution described in Code Section 401(k)(2)(B)(i)(iv), (4) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities), or (5) a distribution excluded from the definition of an "Eligible Rollover Distribution" under applicable Treasury rulings or regulations.

A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be paid only to an individual retirement account or annuity described in Code Section 408(a) or 408(b), a Roth IRA described in Code Section 408A, a qualified retirement plan (either a defined contribution plan or a defined benefit plan) described in Code Section 401(a) or 403(a), or an annuity contract described in Code Section 403(b) that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not so includible.

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Employee - An individual shall be an Employee of or be employed by the Employer for any Plan Year only if such individual is treated by the Employer for such Plan Year as its employee for purposes of employment taxes and wage withholding for federal income taxes, regardless of any subsequent reclassification by the Employer, any governmental agency, or court.

Employer - The Participating Affiliates.

ERISA - The Employee Retirement Income Security Act of 1974, as amended. Reference to any specific ERISA section shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing, or superseding such section.

ESOP - The portion of the Plan that is designed to invest primarily in Common Stock and is intended to satisfy the requirements of a non-leveraged employee stock ownership plan set forth in Code Sections 401(a), 409, and 4975(e)(7). Prior to the Distribution Date, the ESOP consists of all amounts credited to Participants' Accounts that are invested in Common Stock of MDU Resources, Group, Inc., from time to time. Effective as of the Distribution Date, the ESOP consists of all amounts credited to Participants' Accounts that are invested in Common Stock of Everus Construction Group, Inc., from time to time.

ESOP Account - The separate Account or Accounts maintained for a Participant to which is credited the Participant's interest in the ESOP from time to time.

Highly Compensated Employee or HCE - Includes highly compensated active Employees and highly compensated former Employees. "Highly compensated active Employee" means any Employee who

(1) was a 5% owner (as defined in Code Section 416(i)(I)) of the Employer at any time during the current or the preceding year, or (2) for the preceding year had compensation from the Employer in excess of the amount specified in Code Section 414(q)(1)(B)(i) adjusted pursuant to Code Section 415(d)).

A former Employee shall be treated as a Highly Compensated Employee if (A) such Employee was a Highly Compensated Employee when he or she separated from service, or (B) such Employee was a Highly Compensated Employee at any time after attaining age 55.

The determination of who is a Highly Compensated Employee will be made in accordance with Code Section 414(q).

For purposes of this definition, the term "compensation" means Section 415 compensation (as defined in Section 3.8).

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Hour of Service - Any hour for which an Employee is directly or indirectly paid or entitled to payment by an Employer (1) for the performance of duties, or (2) on account of a period of time during which no duties are performed due to paid vacation, paid holidays, paid illness or incapacity, paid jury duty, or other authorized paid leaves of absence, or (3) for which back pay irrespective of mitigation of damages is either awarded or agreed to by an Employer. The number of Hours of Service, and the period to which such hours shall be credited, will be determined in accordance with Department of Labor Regulations Section 2530.200b-2.

In-Plan Roth Conversion Account - An Account created to hold amounts under the Plan that a Participant, spousal alternate payee, or spousal beneficiary elects to convert to the In-Plan Roth Conversion Account in accordance with Section 3.3. The Committee may establish subaccounts based on the source of the in-Plan Roth conversion.

Investment Funds - Each of the investment funds designated by the Committee in which a Participant's Accounts may be invested, in accordance with Section 5.2.

Leased Employee - An individual, not otherwise an Employee, who, pursuant to an agreement between an Affiliate and a leasing organization, has performed, on a substantially full-time basis, for a period of at least 12 months, services under the primary direction or control of the Affiliate unless (1) the individual is covered by a money purchase pension plan maintained by the leasing organization and meeting the requirements of Code Section 414(n)(5)(B), and (2) Leased Employees do not constitute more than 20% of the nonhighly compensated workforce of all Affiliates (within the meaning of Code Section 414(n)(5)(C)(ii)).

Matching Contribution Account - The separate Account to which Employer matching contributions under Section 3.4 are credited.

MDU 401(k) Plan - MDU Resources Group, Inc. 401(k) Retirement Plan, which was initially effective January 1, 1984, and from which the Plan is spun off from as described in Schedule A.

Normal Retirement Age - The date a Participant attains age 60.

Participant - An Eligible Employee who participates in the Plan pursuant to Article II.

Participating Affiliate - An Affiliate to which the Committee has extended the Plan and which adopts the Plan by its board of directors or other governing body.

Plan - The Everus 401(k) Plan as set forth herein and as amended from time to time.

Plan Year - The calendar year.

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Pretax Deferral Account - The separate Account to which pretax deferral contributions under Section 3.1 are credited.

Profit Sharing Account - A separate account to which profit sharing contributions under Section 3.5(a) are credited.

Retirement Contribution Account - A separate account to which retirement contributions under Section 3.5(b) are credited.

Rollover Account - The separate Account maintained for an Eligible Employee to hold amounts contributed pursuant to Section 3.9.

Roth Deferral Account - The separate Account to which Roth deferral contributions under Section

1.1are credited.

Section 16 Officer - An officer as described in Section 16 of the Securities Exchange Act of 1934 and the rules thereunder.

Spouse - The person to whom an individual is married for purposes of federal income taxes.

Trust Agreement - The Trust Agreement between the Company and the Trustee pursuant to which the Trust Fund is maintained, as such agreement may be amended from time to time. The Trust Agreement constitutes a part of the Plan and its terms are incorporated herein by reference.

Trust Fund - The Trust Fund under the Plan in which Plan assets are retained by the Trustee.

Trustee - The Trustee of the Trust Fund, and any successor thereto.

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ARTICLE II

PARTICIPATION

2.1Participation Requirements. Each Employee shall become a Participant on the date that he or she becomes an Eligible Employee, provided that such Eligible Employee complies with any enrollment procedures established by the Committee.

2.2Termination of Participation

(a)A Participant shall terminate active participation in the Plan upon any of the following

events:

(i)death,

(ii)retirement,

(iii)Disability, or

(iv)other termination of employment with all Affiliates.

(b)A Participant who elects, pursuant to Section 4.5(b), to make a complete or partial withdrawal from the Pre-tax Deferral Account, Roth Deferral Account, Matching Contribution Account, and Rollover Account after age 59½ shall not be deemed to terminate participation in the Plan by such election alone.

(c)A Participant who ceases to be an Eligible Employee (other than by termination of employment), discontinues deferral contributions under Section 3.1, or enters the military service of the United States, shall also be an inactive Participant with respect to the deferral contribution feature of the Plan; provided, however, that, notwithstanding any provision of the Plan to the contrary, (i) contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Code Section 414(u), and

(ii) in the case of a Participant who dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Participant resumed and then terminated employment on account of death. Any interest of an inactive Participant in the Plan may be allowed to remain in the Trust Fund, subject to payment as provided in Article IV. Inactive Participants may apply for a

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hardship withdrawal in accordance with Section 4.5(a) but shall not be eligible for loans under Section 4.8.

2.3Reemployment. An Eligible Employee or Participant who terminates employment with the Employer and who is subsequently reemployed as an Eligible Employee shall become a Participant on the date of his or her reemployment, provided that such Eligible Employee complies with any enrollment procedure established by the Committee.

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ARTICLE Ill

CONTRIBUTIONS

3.1Deferral Contributions

(a)Maximum. A Participant may contribute, by payroll deduction, any whole percentage of the Participant's Compensation not exceeding 75% of Compensation for each pay period to the Participant's Pretax Deferral Account and/or Roth Deferral Account. The Participant must specify whether the deferral contributions shall be pretax deferral contributions, Roth deferral contributions, or a combination of both. If a Participant fails to specify, then his or her deferral contributions shall be treated as pretax deferral contributions. The election shall be made in such manner and with such advance notice as prescribed by the Committee.

(b)Deferral contributions on behalf of a Participant shall be credited to such Participant's Pretax Deferral Account and/or Roth Deferral Account, as applicable and subject to Section 3.6.

(c)Upon becoming a Participant, and at any time thereafter, each Participant may elect the percentage of Compensation to be contributed as deferral contributions to the Plan. Any such election will take effect as soon as administratively feasible. Each election by a Participant under this Section 3.1(c) shall be made pursuant to the method established by the Committee for this purpose.

(d)If a Participant fails to make an election within 30 days of becoming a Participant, the Participant shall be deemed to have elected to have 6% of Compensation (the "automatic deferral rate") withheld and contributed to the Plan as pretax deferral contributions, effective as soon as administratively feasible following the 30-day period. Within a reasonable period prior to the date an automatic deferral election is effective and the first day of each Plan Year thereafter, the Participant shall receive a notice that explains the automatic deferral feature (including the applicable automatic deferral rate and how automatic contributions will be invested in the absence of the Participant's investment election), the Participant's right to elect not to have automatic contributions made on the Participant's behalf, and the procedure for making an alternate election. Automatic contributions being made on behalf of a Participant will cease as soon as administratively feasible after the Participant makes an affirmative election regarding deferral contributions.

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(e)A Participant's deemed election under Section 3.1(d) shall be automatically increased by 1% as of the January 1 following the Participant's initial deferral contribution (or as soon as administratively feasible thereafter) and each subsequent January 1 (or as soon as administratively feasible thereafter) until the Participant's deferral rate equals 15% of Compensation or when the Participant makes an affirmative election regarding deferral contributions, if earlier.

(f)Deferral contributions must be contributed to the Trust Fund as soon as they can reasonably be segregated from the Employer's general assets, but in no event later than the 15th business day of the month following the month in which such amounts otherwise would have been payable to the Participant in cash. Deferral contributions shall be invested pursuant to Section 5.2(a).

3.2Changing Deferral Contribution Election. A Participant may change his or her deferral contribution election at any time as provided in Section 3.1(c). Such change will take effect as soon as administratively feasible.

3.3In-Plan Roth Conversion. A Participant, spousal alternate payee, or spousal beneficiary may elect to convert vested amounts from any Account, other than an Account holding Roth Contributions, to an In-Plan Roth Conversion Account in such manner and subject to such rules as the Committee may establish consistent with this Section 3.3 and Code Section 402A(c)(4)(E). The Plan permits conversion of any amounts permissible under the Code, including amounts that are not otherwise distributable. Amounts that are so converted will be subject to the taxation provisions and separate accounting requirements that apply to designated Roth contributions and any distribution constraints applicable to such amounts prior to the conversion. An in-Plan Roth conversion is not a Plan distribution. Accordingly, the Plan may not withhold or distribute any amounts for income tax withholding.

3.4Matching Contributions. The Employer shall make a matching contribution for each pay period equal to 50% of the deferral contribution made by the Participant for such pay period; provided, however, that a Participant's deferral contributions in excess of 6% of Compensation for such pay period shall not be eligible for matching contributions. Notwithstanding the immediately preceding sentence, an Employer, by resolution of its board of directors or other governing body and subject to the approval

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of the Committee, may provide for a matching contribution on behalf of Participants employed by such Employer that differs from the matching contribution stated above. In such a case, the matching contribution so adopted by such Employer and approved by the Committee shall be set forth in Schedule B and shall be applicable to such Employer in lieu of the matching contribution stated above until changed by action of such Employer's board of directors or other governing body and approved by the Committee. Matching contributions on behalf of a Participant shall be made in cash and credited to the Participant's Matching Contribution Account.

The Employer shall make a true-up matching contribution for each Plan Year on behalf of each Participant who made deferral contributions during such Plan Year. The true-up matching contribution shall be in the amount that, when aggregated with all matching contributions made during the Plan Year on behalf of the Participant, equals 50% of the Participant's deferral contributions for the Plan Year that do not exceed 6% of the Participant's Compensation for the Plan Year. A Participant whose employment is terminated during the Plan Year may receive a true­ up matching contribution prior to the end of the Plan Year, as determined in the sole discretion of the Participant's Employer. Notwithstanding the foregoing, for any Participant employed by an Employer who provides a matching contribution that differs from the matching contribution formula stated above, as set forth in Schedule B, the amount of true-up matching contribution shall not exceed the maximum matching contribution made pursuant to Schedule B as determined on a Plan Year basis.

Matching contributions described in this Section 3.4 without regard to any matching contributions described in Schedule B are referred to herein as the "standard matching contributions."

3.5Employer Contributions. Each Employer, in its sole discretion, may make either or both of the following types of contributions to the Plan on behalf of Participants employed by that Employer.

(a)Profit Sharing. Each Employer may establish a profit sharing feature by which a

contribution to the Plan may be allocated to Participants pursuant to criteria related to the Employer's annual performance, as established by resolution of its governing body and subject to the approval of the Committee. Each profit sharing feature shall be set forth in Schedule C and shall be applicable to the Employer that established the feature until changed by action of such Employer's governing body and approved by the Committee. Any

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such contribution will be made in accordance with Section 5.1 and will be invested pursuant to the Participant's investment election.

(b)Retirement Contribution. Each Employer may establish a retirement contribution feature by which a contribution to the Plan will be allocated to Participants pursuant to a specific formula established by resolution of its governing body and subject to the approval of the Committee. Each retirement contribution feature shall be set forth in Schedule D or E and shall be applicable to the Employer that established the feature until changed by action of such Employer's governing body and approved by the Committee. Any such contribution will be made in accordance with Section 5.1 and will be invested pursuant to the Participant's investment election.

3.6Special Limitations on Deferral Contributions

(a)For each Plan Year, the Plan shall comply with Code Section 401(k)(3). Specifically, if the actual deferral percentage or ADP (as defined in Section 3.6(c)) of Compensation for Participants who are HCEs is more than the amount permitted under the special limitations' set forth in Section 3.6(b), the deferral contributions made by the HCEs will be reduced (in the order of those HCEs with the highest dollar contribution amount) to the extent necessary to meet the requirements of Section 3.6(b). The Employer shall pay directly to the Participant any excess amounts withheld for contribution. Any excess deferral contributions made to the Trust Fund, plus any related earnings thereon, shall be distributed to the Participants before the end of the Plan Year following the Plan Year in which such excess deferral contributions are made. Amounts to be distributed to a Participant pursuant to the previous sentence shall be reduced by the amounts (if any) to be distributed to that Participant pursuant to Section 3.6(g).

In addition, if the Employer or the Committee determines that contributions would be in excess of the special limitations set forth in Section 3.6(b), the Employer may in its sole discretion suspend, in whole or in part, deferral contributions to the Plan made on behalf of Participants who are HCEs. In such case the deferral contributions that would ordinarily be contributed to the Trust Fund on the Participants' behalf in a payroll period shall be paid directly to such Participants.

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(a)The ADP for any Plan Year of all Eligible Employees who are HCEs shall not exceed, alternatively (i) 125% of the ADP for all Eligible Employees who are not HCEs, or (ii) 200% of the ADP for Eligible Employees who are not HCEs, provided that the ADP for all HCEs does not exceed the ADP for all other Eligible Employees by more than 2%.

(b)For purposes of this Section 3.6, the "actual deferral percentage" or "ADP" for a Plan Year shall be the average of the ratios, calculated separately for each Eligible Employee in each group, of the amount of deferral contributions credited to the Pretax Deferral Account and Roth Deferral Account on behalf of each Eligible Employee for such Plan Year to the Eligible Employee's Section 415 compensation (as defined in Section 3.8) for such Plan Year.

(c)If a reduction in the amount of deferral contributions on behalf of a Participant is required because of the application of Section 3.6(a), the reduction shall be treated as taxable earnings to the Participant for the pay period in which the reduction occurs, and the Employer shall withhold any taxes required by law on such taxable earnings.

(d)If a distribution of excess deferral contributions (and related earnings) is required because of the application of Section 3.6(a), the Employer shall withhold any taxes required by law on such distribution.

(e)In the event that an active Participant is required to reduce deferral contributions to the Plan as a result of the application of Section 3.6(a), the matching contribution under Section 3.4 made on behalf of the Participant for the remainder of the Plan Year shall be applied to the reduced amount of deferral contributions.

(f)Notwithstanding the foregoing provisions of this Section 3.6, the maximum amount of deferral contributions credited to the Pretax Deferral Account and Roth Deferral Account on behalf of a Participant in any calendar year may not exceed $23,000, as may be adjusted in accordance with regulations prescribed by the Secretary of the Treasury to reflect increases in the cost of living, and any such contributions made to the Pretax Deferral Account and Roth Deferral Account in excess of such limit (as adjusted), plus any related earnings on the excess, shall be distributed to the Participant by no later than April 15 following the close of the calendar year in which the excess deferral contributions are made. The amount of deferral contributions distributed to a Participant pursuant to the immediately preceding

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sentence shall be reduced by the amount of deferral contributions distributed to such Participant pursuant to Section 3.6(a) for the same Plan Year.

Deferral contributions exceeding the limits of this Section 3.6(g) shall mean the amount of deferral contributions for a calendar year that the Participant designates to the Plan pursuant to the following procedure. The Participant's designation shall (i) be submitted to the Committee in writing no later than March 1, (ii) specify the Participant's deferral contributions exceeding the limits of this Section 3.6(g) for the preceding calendar year, and (iii) be accompanied by the Participant's written statement that if such excess deferral contribution is not distributed, it will, when added to amounts deferred under other plans or arrangements described in Code Section 401(k), 408(k), or 403(b), exceed the limit imposed on the Participant by Code Section 402(g) for the year in which the deferral occurred. Deferral contributions exceeding the limits of this Section 3.6(g) are includible in a Participant's gross income under Code Section 402(g) to the extent that such Participant's deferral contributions for a taxable year exceed the dollar limitation under such Code section. Such excess deferral contributions, and the income or loss allocable thereto, may be distributed before the end of the calendar year in which the deferral contributions were made. A Participant who has such excess deferral contributions for a taxable year, taking into account only such deferral contributions under the Plan or any other plan of the Affiliates, shall be deemed to have designated the entire amount of such excess deferral contributions.

(a)The earnings allocable to distributions of deferral contributions exceeding the limits of Section 3.6(b) or 3.6(g) shall be the sum of (i) the earnings attributable to the Participant's deferral contributions for the year multiplied by a fraction, the numerator of which is the applicable excess amount, and the denominator of which is the balances in the Pretax Deferral Account and Roth Deferral Account of the Participant on the last day of such year reduced by gains (or increased by losses) attributable to such Accounts for the year; and

(ii) 10% of the amount determined under clause (i) multiplied by the number of whole calendar months between the end of the Plan Year and the date of distribution, counting the month of distribution if distribution occurs after the 15th day of such month.

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(b)All Employees who are eligible to make deferral contributions under the Plan and who have attained age 50 before the close of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Code Section 414(v). Such catch-up contributions shall not be taken into account for purposes of implementing the required limitations of Code Sections 402(g) and 415. The Plan shall not be treated as failing to satisfy the requirements of Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of the making of such catch-up contributions. Deferral contributions are matched up to the maximum deferral limit for the Plan Year, including excess deferrals that are reclassified as catch-up contributions.

3.7Special Matching Contribution Limitations

(a)For each Plan Year, the Plan shall comply with Code Section 401(m)(2). Specifically, if the actual contribution percentage or ACP (as defined in Section 3.7(c)) for Participants who are HCEs is more than the amount permitted under the special limitations set forth under Section 3.7(b), the matching contributions credited to the Matching Contribution Accounts of those Participants who are HCEs shall be reduced (in the order of the HCEs with the highest dollar amount of matching contributions) to the extent necessary to meet the requirements of Section 3.7(b). Any excess matching contributions made to the Trust Fund, plus any related earnings thereof, shall be distributed to such Participants before the end of the Plan Year following the Plan Year in which such excess matching contributions are made. The earnings allocable to distributions of deferral contributions exceeding the limits of Section 3.7(b) shall be the sum of (i) the earnings attributable to the Participant's deferral contributions for the year multiplied by a fraction, the numerator of which is the applicable excess amount and the denominator of which is the balance in the Pretax Deferral Account and Roth Deferral Account of the Participant on the last day of such year reduced by gains (or increased by losses) attributable to such Accounts for the year; and (ii) 10% of the amount determined under clause (i) multiplied by the number of whole calendar months between the end of the Plan Year and the date of distribution, counting the month of distribution if distribution occurs after the 15th day of such month. In addition, if the Employer or the Committee determines that contributions or matching contributions would

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be in excess of the special limitations set forth under Section 3.7(b), the Employer may, in its sole discretion, suspend, in whole or in part, deferral contributions to the Plan made on behalf of Participants who are HCEs and, therefore, related matching contributions with respect to such Participants, in which case the deferral contributions that would ordinarily be contributed to the Trust Fund on the Participants' behalf in a payroll period shall be paid directly to such Participants.

(b)The ACP for any Plan Year of all Eligible Employees who are HCEs shall not exceed, alternatively (i) 125% of the ACP for all Eligible Employees who are not HCEs, or (ii) 200% of the ACP for Eligible Employees who are not HCEs, provided that the ACP for all HCEs does not exceed the ACP for all other Eligible Employees by more than 2%.

(c)For purposes of this Section 3.7, the "actual contribution percentage" or "ACP" for a Plan Year shall be the average of the ratios, calculated separately for each Eligible Employee in each group, of the amount of matching contributions to the Matching Contribution Account on behalf of each Eligible Employee for such Plan Year to the Eligible Employee's Section 415 compensation (as defined in Section 3.8) for such Plan Year.

(d)If a reduction in the amount of deferral contributions on behalf of a Participant is required because of the application of Section 3.7(a), the reduction shall be treated as taxable earnings to the Participant for the pay period in which the reduction occurs, and the Employer shall withhold any taxes required by law on such taxable earnings.

(e)If a distribution of excess deferral contributions or excess matching contributions (and related earnings) is required because of the application of Section 3.7(a), the Employer shall withhold any taxes required by law on such distribution.

(f)In the event that an active Participant is required to reduce deferral contributions to the Plan as a result of the application of Section 3.7(a), the matching contribution made on behalf of the Participant for the remainder of the Plan Year shall be applied to the reduced amount of deferral contributions.

3.8Contribution Limitation. Notwithstanding any provision of the Plan to the contrary, and except to the extent permitted under Code Section 414(v), the annual additions (as defined below) to a Participant's Accounts shall not exceed the lesser of (a) 100% of the Participant's total Section 415

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compensation (as defined below) or (b) $69,000, as adjusted for cost-of-living increases under Code Section 415(d). Plan benefits shall be paid in accordance with Code Section 415 and applicable Treasury Regulations issued thereunder, the requirements of which are incorporated herein by reference to the extent not specifically provided herein.

"Annual addition" for any Plan Year means the sum of (a) the deferral contributions, matching contributions, and profit sharing contributions, if any, credited to a Participant's Accounts for that year, and (b) the contributions made by an Affiliate on behalf of such Participant (including contributions made by such Participant pursuant to an election to defer earnings), and any remainders to be credited to his or her Account under any other defined contribution plan maintained by the Affiliates in which such Participant participates. The Committee shall take any actions it deems advisable to avoid an annual addition in excess of the limitations set forth in Code Section 415; provided, however, if a Participant's annual addition for a Plan Year actually exceeds the limitations of this Section 3.8, the Committee shall correct such excess in accordance with applicable Treasury Regulations or applicable guidance issued by the Internal Revenue Service.

The term "Section 415 compensation" shall mean the total of all of the wages, salaries, and other amounts received by the Participant from the Employer for services rendered to the Employer as reflected on Form W-2, but only to the extent such amounts are includible as compensation under Code Section 415(c)(3) and the regulations thereunder (including any amounts includible in a Participant's income under the rules of Code Section 409A or because the amounts are constructively received by the Participant for any year), and any differential wage payment (as defined in Code Section 3401(h)), plus any elective deferrals (as defined in Code Section 402(g)(3)) and any amount contributed or deferred by the Employer at the Participant's election that is excludable from income under Code Sections 125, 132(f)(4), or 457.

Notwithstanding the foregoing, Section 415 compensation for a Plan Year shall include compensation paid to the Participant by the later of 2½ months after the Participant's severance from employment with the Employer or the end of the Plan Year that includes the date of such severance from employment if (i) the payments are regular compensation for services during the Participant's regular working hours or compensation for services outside the Participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, and,

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absent a severance from employment, the payments would have been paid to the Participant while the Participant continued in employment with the Employer; (ii) the payments are for unused accrued bona fide vacation time that the Participant would have been able to use if employment had continued; or (iii) the payment is received by the Participant pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid at the same time if employment had continued and only to the extent the payments are includible in gross income. Payments other than those described above shall not be considered compensation if paid after severance from employment, even if they are paid by the later of 2½ months after the date of severance from employment or the end of the Plan Year that includes the date of severance from employment, except (i) payments to an individual who does not currently perform services for the Employer by reason of qualified military service (within the meaning of Code Section 414(u)(1)) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service; or (ii) compensation paid to a Participant who is permanently and totally disabled, as defined in Code Section 22(e)(3), provided that either salary continuation applies to all Participants who are permanently and totally disabled for a fixed or determinable period or the Participant was not an HCE immediately before becoming disabled. Notwithstanding any provision of the Plan to the contrary, Section 415 compensation shall not include amounts in excess of the limitation under Code Section 401(a)(17) in effect for the Plan Year.

3.9Rollover Contributions. At the direction of the Committee, and in accordance with such uniform rules as the Committee may from time to time establish, rollovers described in Code Section 402(c), rollovers from an annuity contract described in Code Section 403(b), rollovers from an eligible plan under Code Section 457(b) that is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that is not tax-exempt, and rollovers from another plan that meets the requirements of Code Section 401(a) or 403(a), including after-tax employee contributions and designated Roth accounts, may be received by the Trustee and will be credited to an Account established in the name of the Eligible Employee. Any rollover contribution made in accordance with the preceding sentence must be made in cash; rollover contributions of property other than cash will not be accepted. Any amount received by the Trustee

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for an Eligible Employee in accordance with this Section 3.9 shall be adjusted during each accounting period for their pro rata share of any change in the value of the Investment Funds. Eligible Employees shall be fully vested in their Rollover Account. Loans from a terminated plan of an acquired company may be accepted.

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ARTICLE IV

ACCOUNTS: VESTING: DISTRIBUTIONS

4.1Participants' Accounts

(a)The Employer shall maintain, or cause to be maintained, records that reflect the interest of each Participant's Pretax Deferral Account, Roth Deferral Account, In-Plan Roth Conversion Account, Matching Contribution Account, ESOP Account, Rollover Account, Profit Sharing Account, and Retirement Contribution Account, as applicable, including all contributions, income, gains or losses, and withdrawals with respect to such Accounts. Records for the Participants' Accounts shall be maintained in accordance with procedural rules as determined by the Committee. As of such valuation dates as the Committee shall determine, but not less frequently than once each Plan Year, the Committee shall determine the value of each Participant's Accounts.

(b)At least once each Plan Year (and as frequently as ERISA requires), the Employer shall cause to be furnished to each Participant a statement of the contributions made by the Employer on the Participant's behalf, and the value of the Participant's Accounts, as well as such information as may be necessary to set forth earnings, gains, or losses with respect to the Participant's Accounts.

4.2Vesting

(a)A Participant will, at all times, have a fully vested right to the value of the Participant's Pretax Deferral Account, Roth Deferral Account, Matching Contribution Account, Rollover Account, and ESOP Account. As described in Schedule C, D, or E (which add a profit sharing feature or retirement contribution feature), a number of years of service may be required for the Participant to be fully vested in his or her Profit Sharing Account or Retirement Contribution Account, as applicable. If a Participant terminates employment before becoming fully or partially vested in his or her Profit Sharing Account or Retirement Contribution Account, the non-vested portion in such Account shall be forfeited as of the last day of the Plan Year in which the Participant terminates employment with all Affiliates. Any forfeitures that arise under the terms of this Section 4.2(a) shall be used for any of the following: (i) to reinstate the profit sharing contributions or retirement contributions of any reemployed Participants

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pursuant to the terms of the Plan, (ii) to reduce Employer contributions to the Plan, and (iii) to reduce administrative expenses incurred by the Plan. A Participant who dies while performing qualified military service (as defined in Code Section 414(u)) will receive service credit for vesting purposes for the period of qualified military service.

(b)If a Participant's employment with all Affiliates terminates before the Participant becomes vested in his or her Profit Sharing Account or Retirement Contribution Account, and such Participant is subsequently reemployed by an Affiliate, the following special rules shall apply:

(i)A "One-Year Break In Service" means a Plan Year in which a terminated Participant completes less than 500 Hours of Service.

(ii)If the Participant was not vested in his or her Profit Sharing Account or Retirement Contribution Account as of termination of employment, the Participant's years of vesting service prior to the termination of employment shall be aggregated with years of vesting service accrued upon reemployment only if the number of his or her consecutive One-Year Breaks In Service is less than five.

(iii)In the case of a maternity or paternity absence (as defined below), a Participant shall be credited, for the first Plan Year in which he or she otherwise would have incurred a One-Year Break In Service (and solely for purposes of determining whether such a One-Year Break In Service has occurred), with the Hours of Service that normally would have been credited to the Participant but for such absence (or, if the Committee is unable to determine the hours that would have been so credited, 8 hours for each work day of such absence), but in no event more than 501 hours for any one absence. A "maternity or paternity absence" means an Employee's absence from work because of the pregnancy of the Employee or birth of a child of the Employee, because of the placement of a child with the Employee in connection with the adoption of such child by the Employee, or for purposes of caring for the child immediately following such birth or placement. The Committee may require the Employee to furnish such information as the Committee considers necessary to establish that the Employee's absence was for one of the reasons specified above.

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(iv)If a Participant terminated employment with all Affiliates before the Participant was fully vested in the Participant's Profit Sharing Account or Retirement Contribution Account, and is reemployed by an Affiliate before incurring five consecutive One-Year Breaks In Service, the forfeiture that resulted from the Participant's earlier termination of employment (unadjusted by subsequent gains or losses if the Participant received a prior distribution from the Plan) shall be recredited to the Participant's Profit Sharing Account or Retirement Contribution Account, as applicable, as of the accounting date coincident with or next following the date of

his or her reemployment.

4.3Distribution. The amount credited to a Participant's Accounts, to the extent such Participant is vested in such Accounts, shall become payable to the Participant (or the beneficiary, as applicable) subject to Section 4.6 upon any of the following events:

(a)retirement;

(b)Disability;

(c)death;

(d)other termination of employment with all Affiliates;

(e)as a hardship withdrawal under Section 4.5(a); or

(f)as an age 59½ withdrawal under Section 4.5(b).

4.4Method of Payment. Participants (or their beneficiaries), in accordance with such uniform rules as the Committee may establish, shall elect distribution of their Accounts in one of the following methods:

(a)as a single-sum distribution; or

(b)in flexible installments not exceeding nine years.

Distributions shall generally be paid in cash; provided, however, that distributions from a Participant's ESOP Account may, at the Participant's election, be paid in the form of Common Stock.

4.5Withdrawals by Participants

(a)Hardship Withdrawal. A Participant may apply for a hardship withdrawal at any time. The withdrawal must be for an immediate and heavy financial need of the Participant for which funds are not reasonably available from other resources of the Participant. If approved, such

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withdrawal shall equal the lesser of (i) the amount required to be distributed to meet the need created by the hardship, (including any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the withdrawal), or (ii) the value of the vested portion of the Participant's Accounts. Immediate and heavy financial needs are limited to amounts necessary for:

(i)Unreimbursed medical expenses (as defined in Code Section 213, determined without regard to whether the expense exceeds 7½% of adjusted gross income) incurred by the Participant, the Participant's Spouse, or the Participant's dependents (as defined in Code Section 152 without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)).

(ii)Preventing foreclosure on or eviction from the Participant's principal residence.

(iii)Costs directly related to the purchase of the Participant's principal residence, not including mortgage payments.

(iv)Tuition, room and board, and related educational fees for the next 12 months of post-secondary education for the Participant or the Participant's Spouse, children, or dependents.

(v)Funeral or burial expenses for the Participant's deceased parent, Spouse, children, or dependents.

(vi)Expenses for repair of damages to the Participant's principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to Code Section 165(h) and whether the loss exceeds 10% of adjusted gross income).

(vii)Expenses and losses (including loss of income) incurred by the Participant on account of a disaster declared by the Federal Emergency Management Agency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100-707, provided that the Participant's principal residence or principal place of employment at the time of the disaster was located in an area designated by the Federal Emergency Management Agency for individual assistance with respect to the disaster.

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In addition, a hardship withdrawal may be made only if the following conditions are met:

(i)The Participant has obtained all other currently available distributions (including distributions of ESOP dividends under Code Section 404(k), but not hardship withdrawals or nontaxable loans) under the Plan and all other plans of deferred compensation (whether qualified or nonqualified) maintained by the Affiliates.

(ii)The Participant has provided to the Committee a representation in writing (including by using an electronic medium as defined in Treasury Regulation

§ 1.401(a)-21(e)(3)), or in such other form as may be prescribed by the Commissioner of the Internal Revenue Service, that he or she has insufficient cash or other liquid assets reasonably available to satisfy the need.

(iii)The Committee does not have actual knowledge that is contrary to the representation described above.

(iv)Any additional conditions, such as those described in Treasury Regulation

§ 1.401(k)-1(d)(3)(iii)(C).

A hardship withdrawal shall be paid to the Participant in cash as soon as practicable after approval of the Participant's written request.

(b)Age 59½ Withdrawal. A Participant who has attained age 59½ may withdraw, by written election to the Committee once per Plan Year, all or any portion of the Participant's vested Accounts in cash or in the form of Common Stock.

(c)Rollover Withdrawal. A Participant may withdraw, at any time by written election, all or any portion of the Participant's Rollover Account.

4.6Timing of Distributions

(a)When Distributions May Commence. If a Participant has incurred a distribution event described in Section 4.3 and requests a distribution of his or her Account, amounts credited to such Participant's Account will be paid as soon as practicable after such amounts are ascertained. In accordance with Code Section 414(u)(12), a Participant receiving a differential wage payment (as defined in Code Section 3401(h)(2)) shall be treated as having been severed from employment with all Affiliates for purposes of taking a distribution of his or her Account during any period the Participant performs service in the uniformed services

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while on active duty for a period of more than 30 days. If a Participant elects to receive a distribution pursuant to the preceding sentence, such Participant shall not be permitted to make deferral contributions under Section 3.1 during the six-month period beginning on the date of the distribution.

(b)When Distributions Must Commence

(i)Accounts Not Exceeding $7,000. If a Participant incurs a distribution event described in Section 4.3(a)-(f) and his or her vested Accounts do not exceed $7,000, such vested Accounts shall be distributed as soon as practicable after such amounts are ascertained without the need for the Participant's consent to such distribution. If the Participant's vested Accounts exceed $1,000 but do not exceed $7,000, the vested Accounts shall be distributed in a direct rollover to an individual retirement account designated by the Committee unless the Participant elects otherwise. If the Participant's vested Accounts are $1,000 or less, the vested Accounts shall be distributed to the Participant in a lump sum unless the Participant elects otherwise.

(ii)Accounts in Excess of $7,000. If a Participant incurs a distribution event described in Section 4.3(a)-(f) and his or her vested Accounts exceed $7,000, then payment of the Participant's vested Accounts shall commence not later than the 60th day after the end of the calendar year in which the latest of the following events occurs:

(A)the Participant attains Normal Retirement Age;

(B)the tenth anniversary of the year in which the Participant commenced participation in the Plan occurs; or

(C)the Participant terminates employment with all Affiliates.

Notwithstanding the foregoing, the Participant may elect to defer distribution of his or her Accounts (by not requesting a distribution) until attainment of age 73. As a result, if the Participant's vested Accounts exceed $7,000, a distribution will not be made to the Participant before attainment of age 73 without the Participant's consent. Upon a Participant's attainment of age 73, distribution of the Accounts shall commence as soon as practicable after such amounts are ascertained. If a Participant dies before age 73 and the Participant's surviving Spouse is the

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beneficiary, the surviving Spouse may elect to defer distribution of the Participant's Accounts until the Participant would have attained age 73.

For purposes of determining the value of the Participant's vested Accounts under Sections 4.6(b){i)-(ii), the Participant's Rollover Account (if any) shall be included.

(c)Minimum Distribution Rules for Employees Who Continue in Service After Attaining

Age 73. All distributions under the Plan shall be made in accordance with Code Section 401(a)(9).

(i)5% Owners in Service After Attaining Age 73. With regard to a Participant who is a 5% owner (as defined in Code Section 416), payment of a benefit under the Plan shall commence no later than the April 1 next following the calendar year in which such Participant attains age 73, regardless of whether the Participant has retired or otherwise terminated employment as of such date.

(ii)All Other Participants in Service After Attaining Age 73. With regard to Participants other than 5% owners who continue to be active Employees after attaining age 73, distribution of their Accounts is not required until they terminate employment.

4.7Distributions Made in Accordance with Code Section 401(a)(31). Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee's election under this Section 4.7, a Distributee may elect, at the time and in the manner prescribed by the Committee, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a direct rollover. With respect to any portion of a distribution from the Plan on behalf of a deceased Participant, if a direct trustee-to-trustee transfer is made to an individual retirement plan described in Code Section 408(a) or (b) (an "IRA"), which IRA is established for the purpose of receiving the distribution on behalf of an individual who is a designated beneficiary (as defined by Code Section 401(a)(9)(E)) of the Participant and who is not the surviving Spouse of the Participant, then the transfer shall be treated as an Eligible Rollover Distribution for purposes of this Plan and Code Section 402(c). For purposes of this Section 4.7, the IRA of the non-Spouse beneficiary is treated as an inherited IRA within the meaning of Code Section 408(d)(3)(C). The Plan may make a direct rollover to an IRA on behalf of a trust where the trust is the designated beneficiary of a Participant, provided that (a) the beneficiaries of the trust meet the requirements of a

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designated beneficiary described above; (b) the IRA is established in accordance with Internal Revenue Service guidance, with the trust identified as the beneficiary; and (c) the trust meets the requirements set forth in Treasury Regulation § 1.401(a)(9)-4, Q&A-5. The rules of this Section

4.7 shall be interpreted in a manner consistent with regulations or other guidance prescribed by the Internal Revenue Service under Code Section 402(c)(11). Solely to the extent permitted in Code Sections 408A(c)(3)(B), (d)(3) and (e), an eligible Distributee may elect to roll over any portion of an Eligible Rollover Distribution to a Roth IRA (as defined by Code Section 408A), provided that the rollover requirements of Code Section 402(c) are met, and provided further that, in the case of an Eligible Rollover Distribution to a non-Spouse beneficiary, the Roth IRA is treated as an inherited IRA (within the meaning of Code Section 408(d)(3)(C)).

4.8Loans to Participants. While it is the primary purpose of the Plan to accumulate retirement funds for Participants, it is recognized that under some circumstances it is in the best interest of Participants to permit loans to be made to them while they continue in the active service of the Employer. Accordingly, the Committee, pursuant to such rules as it may from time to time establish and upon application by a Participant supported by such evidence as the Committee requests, may make loans to Participants subject to the following:

(a)Funding, Number, and Amount. Loans are available pro rata from a Participant's vested Accounts. For each Participant, no more than two loans may be approved and no more than two loans may be outstanding at any time during a Plan Year, except that a third loan may have been approved during the period beginning April 1, 2020 and ending September 30, 2020 under the MDU 401(k) Plan, and such a loan that is transferred to the Plan in connection with the Plan spinoff (described in Schedule A) may remain outstanding until it is fully repaid according to its terms and this Section 4.8. The minimum amount of each loan is $1,000. The maximum amount of each loan, when added to the outstanding balance of all other loans made to the Participant from all qualified plans maintained by the Affiliates, shall not exceed the lesser of:

(i)$50,000, reduced by the excess (if any) of:

(A)the highest outstanding balance of plan loans during the one-year period ending immediately preceding the date of the loan, over

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(B)the outstanding balance of plan loans on the date the loan is made; or

(ii)one-half of the Participant's total vested Account balances under the Plan.

(b)Documentation and Interest Rate. Each loan must be evidenced by a promissory note prepared in a form approved by the Committee and shall bear a reasonable rate of interest equal to the Wall Street Journal Prime Rate plus 1% or such other commercially reasonable interest rate as determined by the Committee from time to time; provided however, that the applicable interest rate shall not exceed 6% during any period that the Participant receiving the loan is on military leave, in accordance with the Service Members Civil Relief Act. Interest paid by a Participant on a loan made under this Section 4.8 shall be credited to the Participant's Account as of the accounting date that ends the accounting period of the Plan during which such interest payment is made.

(c)Repayment and Leaves of Absence. The repayment of any loan must be made in at least quarterly installments of principal and interest; provided, however, that this quarterly amortization requirement shall not apply while a Participant is on a leave of absence for a period not longer than one year, if the following conditions are met: (i) the Participant is on leave either without pay from the Employer, or at a rate of pay (after income and employment tax withholding) that is less than the amount of the installment payments required under the terms of the loan; (ii) the loan must be repaid by the latest date permitted under Section 4.8(e) or 4.8(f), as applicable, and (iii) the installments due after the leave of absence ends (or if earlier, upon the expiration of the first year of the leave of absence) must not be less than those required under the terms of the original loan. The Committee may allow for suspension of loan repayments under the Plan as permitted under Code Section 414(u)(4).

(d)Term of Loan. Each loan shall specify a repayment period that shall not extend beyond five years. If a Participant's employment is involuntarily terminated in connection with the sale, outsourcing or other divestiture of an Employer, then the Committee may establish uniform rules pursuant to which a Participant may elect a rollover of his or her outstanding loan to an Eligible Retirement Plan. However, the five-year limit shall not apply to any loan used to acquire any dwelling unit that, within a reasonable time, is to be used (determined at the

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time the loan is made) as the principal residence of the Participant, in which event the time limit shall be 15 years.

(e)Retirement or Termination of Employment. If upon a Participant's retirement or other termination of employment, any loan or portion of a loan made to the Participant under the

Plan, together with the accrued interest thereon, remains unpaid, an amount equal to such loan or any part thereof, together with the accrued interest thereon, shall be charged to the Participant's Account as soon as practicable after 60 days following the Participant's retirement or termination of employment.

(f)Failure to Repay. If a Participant fails to make a loan payment by its due date (other than as described in Section 4.8(e)), the total outstanding amount of the loan, together with the accrued interest thereon, shall be defaulted as soon as practicable after 90 days following the loan payment due date.

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ARTICLE IV

A MINIMUM DISTRIBUTION REQUIREMENTS

4A.1    General Rules

(a)Precedence. The requirements of this Article IV A will take precedence over any inconsistent provisions of the Plan; provided, however, that this Article IV A shall not require the Plan to provide any form of benefit, or any option, not otherwise provided under the Plan.

(b)Requirements of Treasury Regulations Incorporated. All distributions required under this Article IV A will be determined and made in accordance with Code Section 401(a)(9),

including the incidental death benefit requirement in Code Section 401(a)(9)(G), and the Treasury Regulations thereunder.

(c)TEFRA Section 242(b) Elections. Notwithstanding the other provisions of this Article IV A,

distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act ("TEFRA") and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

(d)Definitions. For purposes of this Article IV A, capitalized terms shall have the meanings provided in Article I, unless an alternate definition is provided in Section 4A.5, in which case the definition in Section 4A.5 shall control.

4A.2    Time and Manner of Distribution

(a)Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's Required Beginning Date.

(b)Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows:

(i)If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 73, if later.

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(ii)If the Participant's surviving Spouse is not the Participant's sole Designated Beneficiary, and if distribution is to be made over the life or over a certain period not exceeding the Life Expectancy of the Designated Beneficiary, distribution to the Designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.

(iii)If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant's death, or if the provisions of Sections 4A.2(b)(i) and (ii) do not otherwise apply, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

(iv)If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary and the surviving Spouse dies after the Participant but before distributions to the surviving Spouse begin, this Section 4A.2(b), other than Section 4A.2(b)(i), will apply as if the surviving Spouse were the Participant.

For purposes of Sections 4A.2 and 4A.4, unless Section 4A.2(b)(iv) applies, distributions are considered to begin on the Participant's Required Beginning Date. If Section 4A.2(b)(iv) applies, distributions are considered to begin on the date distributions are required to begin to the surviving Spouse under Section 4A.2(b)(i). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's Required Beginning Date (or to the Participant's surviving Spouse before the date distributions are required to begin to the surviving Spouse under Section 4A.2(b)(i)), the date distributions are considered to begin is the date distributions actually commence.

(c)Forms of Distribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first Distribution Calendar Year, distributions will be made in accordance with Sections 4A.3 and 4A.4. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and the Treasury Regulations thereunder.

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4A.3    Required Minimum Distributions During Participant's Lifetime

(a)Amount of Required Minimum Distribution for Each Distribution Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed for each Distribution Calendar Year is the lesser of:

(i)the quotient obtained by dividing the Participant's Account Balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant's age as of the Participant's birthday in the Distribution Calendar Year; or

(ii)if the Participant's sole Designated Beneficiary for the Distribution Calendar Year is the Participant's Spouse, the quotient obtained by dividing the Participant's Account Balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's birthdays in the Distribution Calendar Year.

(b)Lifetime Required Minimum Distributions Continue Through Year of Participant's Death.

Required minimum distributions will be determined under this Section 4A.3 beginning with the first Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the Participant's date of death.

4A.4    Required Minimum Distributions After Participant's Death

(a)Death on or After Date Distributions Begin.

(i)Participant Survived by Designated Beneficiary. Subject to the provisions of this Article IV A, if the Participant dies on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the longer of the remaining Life Expectancy of the Participant or the remaining Life Expectancy of the Participant's Designated Beneficiary, determined as follows:

(ii)The Participant's remaining Life Expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

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(iii)If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary, the remaining Life Expectancy of the surviving Spouse is calculated for each Distribution Calendar Year after the year of the Participant's death using the surviving Spouse's age as of the Spouse's birthday in that year. For Distribution Calendar Years after the year of the surviving Spouse's death, the remaining Life Expectancy of the surviving Spouse is calculated using the age of the surviving Spouse as of the Spouse's birthday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year.

(iv)If the Participant's surviving Spouse is not the Participant's sole Designated Beneficiary, the Designated Beneficiary's remaining Life Expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year.

(b)No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no Designated Beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the Participant's remaining Life Expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

(c)Death Before Date Distributions Begin.

(i)Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the remaining Life Expectancy of the Participant's Designated Beneficiary, determined as provided in Section 4A.4(a).

(ii)No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be

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completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

(iii)Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required

to Begin. If the Participant dies before the date distributions begin, the Participant's surviving Spouse is the Participant's sole Designated Beneficiary, and the surviving Spouse dies before distributions are required to begin to the surviving Spouse under Section 4A.2(b)(i), this Section 4A.4(b) will apply as if the surviving Spouse were the Participant.

4A.5    Definitions

(a)Designated Beneficiary. The individual who is designated as the Beneficiary under Section

6.6 and is the designated Beneficiary under Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9)-1, Q&A-4.

(b)Distribution Calendar Year. A calendar year for which a minimum distribution is required.

For distributions beginning before the Participant's death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year that contains the Participant's Required Beginning Date. For distributions beginning after the Participant's death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under Section 4A.2(b). The required minimum distribution for the Participant's first Distribution Calendar Year will be made on or before the Participant's Required Beginning Date. The required minimum distribution for other Distribution Calendar Years, including the required minimum distribution for the Distribution Calendar Year in which the Participant's Required Beginning Date occurs, will be made on or before December 31 of that Distribution Calendar Year.

(c)Life Expectancy. Life expectancy as computed by use of the Single Life Table in Q&A-1 of Section 1.401(a)(9)-9 of the Treasury Regulations.

(d)Participant's Account Balance. The Account balance as of the last valuation date in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the valuation calendar year after the valuation date and

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decreased by distributions made in the valuation calendar year after the valuation date. The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the Distribution Calendar Year if distributed or transferred in the valuation calendar year.

(e)Required Beginning Date. The date specified in Section 4.6(b).

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ARTICLE V

INVESTMENT OF CONTRIBUTIONS

5.1Making of Contributions. Once each month, or as otherwise determined by the Committee subject to the Employer's consent, the Employer will pay over contributions to the Trustee to be held in trust and invested as herein provided and as set out more fully in the Trust Agreement. The Employer's matching contributions, profit sharing contributions, and retirement contributions for each Plan Year, if any, shall not be made later than the due date for filing the Employer's federal income tax return for the taxable year with or within which such Plan Year ends, including extensions thereof. The contributions to this Plan when taken together with all other contributions made by the Employer to other qualified retirement plans shall not exceed the maximum amount deductible under Code Section 404.

5.2Investment

(a)Each Participant's Accounts and earnings credited to such Accounts on and after the Effective Date will be invested in one or more of the Investment Funds. Each Participant will designate the proportion (expressed as a percentage in multiples of 1%) of such Participant's Accounts to be invested in each Investment Fund. Such designation, once made, can be changed at any time, and will take effect as soon as administratively feasible. Participants may also, at any time and independent of changing their election of investment of future deferral contributions, transfer the amount equivalent to the Participant's interest or any partial interest (expressed as a percentage in multiples of 1% or in dollars) from one Investment Fund to another. Any designation made under this Section 5.2(a) shall be made pursuant to the method established by the Committee for this purpose.

Notwithstanding any other provision herein to the contrary, during any period in which a Participant has not made an initial election as to the investment of his or her Accounts, the Participant shall be deemed to have elected to have his or her Accounts invested in the age appropriate target date fund, as determined by the Committee. The investment described in the preceding sentence is referred to as the default fund and is intended to constitute a qualified default investment alternative within the meaning of ERISA Section 404(c) and the regulations issued thereunder.

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(a)Each Participant shall have an interest in each Investment Fund in which the Participant has elected to have invested all or any part of the Participant's deferral contributions under Section 3.1. The Participant's interest at any time in the Investment Funds shall be equal to such contributions, adjusted from time to time to reflect the proportionate share of the income and losses realized by such Investment Funds and of the net appreciation or depreciation in the value of such Investment Funds.

(b)In accordance with Code Section 401(a)(35), for any period in which the Plan holds publicly traded employer securities, the following rules shall apply.

(i)Subject to Section 1.401(a)(35)-1(f)(2)(iv)(B) of the Treasury Regulations, if the Company or any member of the controlled group of corporations (as defined in Section 1.401(a)(35)-1(f)(2)(iv)(A) of the Treasury Regulations) that includes the Company has issued a class of stock that is a publicly traded employer security, and the Plan holds employer securities that are not publicly traded employer securities, then the Plan shall be treated as holding publicly traded employer securities.

(ii)With respect to a Participant, an alternate payee with an Account under the Plan, or a Participant's beneficiary, if any portion of such individual's Account under the Plan attributable to employee contributions and elective deferrals (as described in Code Section 402(g)(3)(A)) is invested in publicly traded employer securities, then such individual must be offered the opportunity to elect to divest those employer securities and reinvest an equivalent amount in other investment options as described in Section 5.2(c)(iv).

(iii)With respect to a Participant who has completed three years of vesting service, an alternate payee of such Participant with an account under the Plan, or a Participant's beneficiary, if any portion of such individual's account attributable to employer contributions is invested in publicly traded employer securities, then such individual must be offered the opportunity to elect to divest those employer securities and reinvest an equivalent amount in other investment options as described in Section 5.2(c)(iv).

(iv)With respect to individuals described in Sections 5.2(c)(ii) and (iii):

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(A)At least three investment options (other than employer securities) shall be offered to such individuals;

(B)Each investment option shall be diversified and have materially different risk and return characteristics; and

(C)Periodic reasonable divestment and reinvestment opportunities shall be provided at least quarterly.

(v)Except as provided in Sections 1.401(a)(35)-1(e)(2) and (3) of the Treasury Regulations, restrictions (either direct or indirect) or conditions will not be imposed on the investment of publicly traded employer securities if such restrictions or conditions are not imposed on the investment of other Plan assets.

(c)One of the Investment Funds shall be a fund invested primarily in Common Stock (the "Common Stock Investment Fund"). The Common Stock Investment Fund is intended to be a permanent Investment Fund under the Plan, unless the Committee concludes that it is clearly imprudent to continue the Common Stock Investment Fund as an Investment Fund under the Plan. The Committee will evaluate the prudence of maintaining the Common Stock Investment Fund not on the basis of the risk of the Common Stock Investment Fund standing alone but in light of the availability of other Investment Funds under the Plan and the ability of Participants and beneficiaries to construct a diversified investment portfolio consistent with their individual desired level of risk and return.

5.3Voting of Common Stock of the Company. Each Participant shall have the right to direct the Trustee as to the manner in which shares of Common Stock allocated to the Participant's Accounts are to be voted. The Company shall furnish the Trustee and the Participants with notices and information statements when voting rights are to be exercised, in such time and manner as may be required by applicable law and the Certificate of Incorporation and Bylaws of the Company. Such statements shall be substantially the same for Participants as for holders of Common Stock in general. The Participant may, in the Participant's discretion, grant proxies for the exercise of the Participant's voting rights under this Section 5.3 in accordance with proxy provisions of general application. The Trustee shall vote such Common Stock in accordance with the direction of the Participant. Fractional shares of Common Stock allocated to Participants' Accounts shall be combined to the largest number of whole shares and voted

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by the Trustee to the extent possible to reflect the voting direction of the Participants holding fractional shares. Subject to the terms of the immediately following sentence, the Trustee shall vote allocated shares of the Company's Common Stock for which it has not received valid direction proxies and any shares that have not been allocated to Participants' Accounts in accordance with the recommendation of the Company's board of directors on all of the matters.

5.4Tendering of Stock. A Participant (or in the event of the Participant's death, the beneficiary) shall have the right to instruct the Trustee in writing as to the manner in which to respond to a tender or exchange offer in any and all shares of Common Stock credited to such Participant's Accounts. The Employer shall notify each Participant (or beneficiary) and utilize its best efforts to distribute or cause to be distributed in a timely fashion such information as will be distributed to shareholders of the Employer in connection with any such tender or exchange offer, together with a form requesting confidential instruction to the Trustee as to the manner in which to respond to the tender or exchange offer for any or all shares of Common Stock credited to such Participant's Accounts. Upon its receipt of such instructions, the Trustee shall tender such shares of such Common Stock as and to the extent so instructed. If the Trustee does not receive instructions from a Participant (or beneficiary) regarding any such tender or exchange offer for Common Stock, the Trustee shall have no discretion in such matter and shall take no action with respect thereto.

5.5Dividend Election. Each Participant (or, where applicable, a Participant's beneficiary or an alternate payee) will have the right to elect to receive a cash payment of the dividends, if any, paid on all shares (vested or unvested) of Common Stock in the Participant's ESOP Account or to reinvest such vested dividends in Common Stock in the Participant's ESOP Account. Participants shall be fully vested in all dividends, if any, paid on the shares of Common Stock held in the Participant's ESOP Account. If a Participant (or the Participant's beneficiary or an alternate payee) does not make an affirmative election under this Section 5.5, the Participant will be deemed to have elected to reinvest vested dividends in the ESOP Account. The Committee will establish rules and procedures for the election, including the procedures for determining the number of shares of Common Stock in each Participant's ESOP Account on the record date of the dividend. Reinvested dividends will be paid to the Plan and credited to the Participant's ESOP Account. If a Participant elects to receive dividends in cash, such dividends shall be paid to the Participant by the Plan and shall not constitute Eligible Rollover

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Distributions under Section 4.7. Partial elections (i.e., electing to receive part of a dividend in cash and to reinvest part) shall not be permitted.

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ARTICLE VI

PLAN ADMINISTRATION; CLAIMS FOR BENEFITS

6.1Named Fiduciaries. The Plan shall be administered by the Committee, which initially shall consist of the Chief Financial Officer of the Company and four to ten other individuals appointed by the Chief Executive Officer of the Company who are employed by the Company or an Affiliate.

The Committee shall be the "plan administrator" under Section 3(16)(A) of ERISA and shall have all of the powers, rights, and duties necessary or advisable in order to fully perform the applicable responsibilities imposed by ERISA upon plan administrators, including the authority to delegate or allocate any of those powers in writing in a prudent and reasonable manner consistent with ERISA. The Committee shall be a "named fiduciary" under ERISA. The Company agrees to maintain adequate fiduciary liability insurance with respect to the Committee and any member or delegate thereof by reason of any act or failure to act on behalf of the Plan or Participants in carrying out the fiduciary obligations.

6.2Administrative Powers and Duties. In administering the Plan, the Committee shall have such duties and powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following:

(a)To construe and interpret the provisions of the Plan and make factual determinations thereunder, including the discretionary power to determine the rights or eligibility of Employees, Participants, and any other persons, as well as the amounts of their benefits under the Plan, and to remedy ambiguities, inconsistencies, or omissions, with such determinations to be binding on all parties;

(b)To prescribe procedures to be followed for the proper and efficient administration of the Plan;

(c)To prepare and distribute information explaining the Plan;

(d)To receive from the Employer and from all Participants such information as shall be necessary for the proper administration of the Plan;

(e)To prepare such reports with respect to the administration of the Plan as are reasonable and appropriate, including the power and authority to cause to be prepared, to execute, and to

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deliver any governmental filings related to the Plan including, without limitation, annual reports (Form 5500 series) and Internal Revenue Service determination letter filings;

(f)To furnish each Participant a statement showing the status of that Participant's Accounts;

(g)To appoint or employ individuals to assist in the administration of the Plan, including the power and authority to establish one or more committees to handle Participant claims under the Plan and to appoint or remove, for any reason, members of any such committee;

(h)To monitor the Plan to meet the applicable nondiscrimination rules of the Code;

(i)To keep such accounts and records as the Committee may deem necessary or proper in the performance of its duties under the Plan; and

(j)    As described in Article IX, to extend the Plan to Affiliates.

6.3Claims Procedures. As required under Section 2560.503-1(b)(2) of the Department of Labor Regulations, the claims procedures are set forth in the Plan's Summary Plan Description, which claims procedures are incorporated by reference into the Plan. A Participant or a beneficiary, or the authorized representative of either (the "claimant"), may not bring an action under ERISA Section 502(a) or otherwise with respect to his or her claim until he or she has exhausted the claims procedures. Any such action must be filed in a court of competent jurisdiction within 12 months after the date on which the claimant receives the Committee's written denial of the claimant's claim on appeal or, if earlier, 12 months after the date of the alleged facts or conduct giving rise to the claim (including, without limitation, the date the claimant alleges he or she became entitled to Plan benefits requested in the suit or legal action), or it shall be forever barred. Any further review, judicial or otherwise, of the Committee's decision on the claimant's claim shall be limited to whether, in the particular instance, the Committee abused its discretion. In no event shall such further review, judicial or otherwise, be on a de novo basis, as the Committee has discretionary authority to determine eligibility and benefits and to. construe and interpret the terms of the Plan.

6.4Applications and Forms. Any action permitted or required to be taken by a Participant or a Participant's beneficiary shall be made pursuant to one of the following methods: (a) by filing a

written election, (b) by telephone through a telephone system established by the Committee for this purpose, or (c) by any other method designated by the Committee. A Participant or a Participant's beneficiary shall furnish all pertinent information requested by the Committee.

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6.5Facility of Distribution and Payment. Whenever, in the Committee's opinion, a person entitled to receive any distribution or payment under the Plan is under a legal disability or is so incapacitated as to be unable to manage financial affairs, the Committee may make a distribution or payment to such person or the person's legal representative or to a relative of such person in such manner as the Committee considers appropriate. Any distribution or payment of a benefit in accordance with the provisions of this Section 6.5 shall be a complete discharge of any liability for the making of such distribution or payment under the provisions of the Plan.

6.6Beneficiary Designations. A Participant shall designate a beneficiary or multiple or contingent beneficiaries to whom distribution of the Participant's interest in the Plan shall be made in the event of the Participant's death prior to the full receipt thereof; provided, however, that in the event that the Participant is married on the date of death, such beneficiary shall be deemed to be the Participant's surviving Spouse. The Participant may elect to change or revoke a designated beneficiary at any time; provided, however, that in the event that the beneficiary is the Participant's surviving Spouse, such election shall not be effective unless such surviving Spouse provides written consent that acknowledges the effect of such election and is witnessed by a Plan representative or a notary public. The affirmative designation of any beneficiary and any elected change or revocation thereof by a Participant shall be made on forms provided by the Committee and shall not in any event be effective unless and until filed with the Committee. If no designated or deemed beneficiary survives the Participant or former Participant, or if any unmarried Participant or former Participant fails to designate a beneficiary under the Plan, the amount payable upon the death of the Participant or former Participant shall be paid to the Participant's estate.

6.7Form and Method of Designation. The affirmative designation of any beneficiary and any elected change or revocation thereof by a Participant shall be made on forms provided by the Committee and shall, not in any event, be effective unless and until filed with the Committee. The Committee and all other parties involved in making payment to a beneficiary may rely on the latest beneficiary designation on file with the Committee at the time of payment or may make payment pursuant to Section 6.6 if an effective designation is not on file, shall be fully protected in doing so, and shall have no liability whatsoever to any person making claim for such payment under a subsequently filed designation of beneficiary or from any other reason.

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6.8Administrative Expenses. Unless paid by the Company and except as otherwise provided below, all reasonable costs, charges, and expenses incurred in the administration of the Plan, including expenses incurred by the Committee, compensation to the Trustee, compensation to an investment manager, and any compensation to agents, attorneys, actuaries, accountants, recordkeepers, and other persons performing services on behalf of this Plan or for the Committee will be paid from the Trust Fund in such portions as the Committee may direct. As directed by the Committee, expenses to be paid from the Trust Fund may be drawn from (a) Participants' Accounts, in the form of a flat fee, charges for specific services, or a percentage of the value of each Account, (b) earnings or gains in each Investment Fund or (c) forfeitures under Section 4.2. Expenses directly related to the investment of a particular Investment Fund (such as brokerage, postage, express and insurance charges, and transfer taxes) shall be paid from that Investment Fund. The Company, in its discretion, may decide to pay the expenses incurred in operating and administering the Plan for certain Participating Affiliates or certain Participants.

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ARTICLE VII

TRUST FUND

7.1Trust Agreement. All assets of the Plan shall be held under the Trust Agreement between the Company and the Trustee designated by the Company, which shall serve at the pleasure thereof. The Trust Agreement shall provide, among other things, for a Trust Fund to be administered by the Trustee to which all contributions shall be paid, and the Trustee shall have such rights, powers, and duties as the Company shall from time to time determine. All assets of the Trust Fund shall be held, invested, and reinvested in accordance with the provisions of the Trust Agreement.

7.2Reversion. At no time, prior to the satisfaction of all liabilities with respect to Participants and their beneficiaries, shall any part of the assets of the Plan be used for or diverted to purposes other than for the exclusive benefit of such persons; provided, however, Employer contributions may be returned to the Employer (a) if made by the Employer by a mistake of fact, within one year after the payment of the contribution, or (b) if a contribution is conditioned upon the deductibility of such contribution under Code Section 404, then to the extent the deduction is disallowed, within one year of the disallowance of the deduction. The amount of any contribution that may be returned to the Employer must be reduced by any portion thereof previously distributed from the Trust Fund and by any losses of the Trust Fund allocable thereto, and in no event may the return of such contribution cause any Participant's Account balances to be less than the amount of such balances had the contribution not been made under the Plan.

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ARTICLE VIII

AMENDMENT AND TERMINATION

8.1Amendments. The Company reserves the right to make, from time to time, any amendments to the Plan that do not cause any part of the Accounts to be used for or diverted to any purpose other than the exclusive benefit of Participants or their beneficiaries and that do not operate retroactively so as to adversely affect the rights of any Participant or beneficiary prior to such action. The Company has delegated to the Committee the authority to cause to be prepared, to approve, and to execute any amendments, including for the purpose of merging, consolidating, freezing, or completing the termination of the Plan or Trust; provided, however, approval of the board of directors of the Company is necessary for any amendment that would result in:

(a)The greater of a 5% or $500,000 increase in the cost of funding or administering the Plan, unless:

(i)the Committee reasonably believes that such amendment or action is necessary to bring the Plan into compliance with ERISA, or any other applicable law, or to maintain the Plan's qualification under, or compliance with, provisions of the Code, or

(ii)such amendment or action is necessary to implement the provisions of any collective bargaining or other agreement validly executed by any Employer;

(b)Disqualification, termination, or partial termination of the Plan or loss of tax-exempt status of the Trust;

(c)Violation of the terms and conditions of any collective bargaining agreement for the Plan subject to such agreement;

(d)The appointment or removal of the Trustee, investment manager, custodian, or other professional firm engaged by the Committee in connection with the investment or management of the Plan's assets;

(e)A change in the membership or structure, or a material change in the powers, duties, or responsibilities, of the Committee or a change in the indemnification of any fiduciary of the Plan (except that the Committee may amend the Plan to transfer to the Committee any or all of the powers, rights, responsibilities, and duties described in Section 6.2 that are currently

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granted by the Plan to none of the Committee, the Company, or the Company's board of directors); or

(f)An increase in the duties or responsibilities of the Company's board of directors under the Plan.

No person has the authority to modify the terms of the Plan, except by means of authorized written amendments to the Plan. No verbal or written representations contrary to the terms of the Plan and its written amendments shall be binding upon the Employer or the Plan.

8.2Right to Terminate. The Company expects to continue the Plan indefinitely, but the continuance of the Plan and the payment of contributions are not assumed as contractual obligations. If the Plan shall be terminated, the Trustee shall continue to hold, invest, and administer the Trust Fund in accordance with the provisions of the Trust Agreement and shall make distributions therefrom in accordance with the provisions of the Plan, as then in effect, pursuant to instructions filed with the Trustee by the Committee upon such termination or from time to time thereafter, subject to Section 8.4.

8.3Action by the Company. Any action by the Company to amend or terminate the Plan may be taken

by resolution of its board of directors or by any person or persons duly authorized by resolution of its board of directors to take such action.

8.4Distribution of Accounts upon Plan Termination. The distribution of Participants' Accounts after termination of the Plan may, in the Company's discretion, be deferred until a reasonable time after the Company's receipt of a favorable Internal Revenue Service determination letter regarding the Plan's termination if the Company applies to the Internal Revenue Service for such letter.

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ARTICLE IX

ADOPTION OF THE PLAN BY AFFILIATES

9.1Adoption. In the event the Plan is adopted by appropriate action of an Affiliate that the Committee authorizes to adopt the Plan, the Committee may determine the effective date of the Plan as to any such Affiliate, and each such Affiliate shall thereupon be a Participating Affiliate and included within the term "Employer." The Committee may also determine the extent to which service of the employees of any such Affiliate prior to such effective date, including with a predecessor employer, shall be counted as credited service and may otherwise determine the terms and conditions upon which any such Affiliate may adopt the Plan.

9.2Withdrawal. The Company may withdraw from the Plan at any time by action of its board of

directors. Any Participating Affiliate may withdraw from the Plan by giving at least 30 days' written notice of its intention to withdraw to the Committee.

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ARTICLE X

GENERAL

10.1No Guarantee of Employment. Nothing contained in the Plan shall be construed as a contract of employment between the Employer and any Eligible Employee or Participant, as a right of any Eligible Employee or Participant to be continued in the employment of the Employer, or as a limitation of the right of the Employer to discharge any of its Employees.

10.2Nonalienation of Benefits. Except to the extent otherwise provided by Code Section 401(a)(13)(C) or by the issuance of a qualified domestic relations order (within the meaning of Code Section 414(p)), benefits payable under the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary, including any such liability that is for alimony or other payments for the support of a Spouse or former Spouse, or for any other relative of the Participant, prior to actually being received by the person entitled to the benefit under the terms of the Plan; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any right to benefits payable under the Plan, shall be void.

10.3Missing Persons. If the Committee is unable to locate a Participant or beneficiary whose Account

becomes distributable under the Plan or if the Plan has made a distribution, but the Participant or beneficiary for any reason does not cash the distribution check, such Account shall be administered according to the Plan's missing persons process as then in effect, which is made a part of the Plan and incorporated herein by reference.

10.4Governing Law. Except as preempted by federal law, the provisions of the Plan will be construed in accordance with the laws of the State of North Dakota.

10.5Merger or Consolidation of Plan. In the event of any merger or consolidation of the Plan with, or transfer in whole or in part of the assets and liabilities of the Plan to, another plan, the assets and liabilities of the Plan shall be transferred to the other plan only if each Participant would, if the Plan or the other plan then terminated, receive a benefit immediately after the merger, consolidation, or transfer that is equal to or greater than the benefit the Participant would have been entitled to receive if the Plan had been terminated immediately before the merger, consolidation, or transfer.

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10.6Distribution to Alternate Payees. Benefits may be distributed to an alternate payee on the earliest date specified in a qualified domestic relations order, without regard to whether such distribution is made or commences prior to the Participant's earliest retirement age (as defined in Code Section 414(p)(4)(B)) or the earliest date that the Participant could commence receiving benefits under the Plan.

10.7Construction. Whenever any words are used herein in the singular or plural, they shall be construed as though they were used in the plural or singular, as the case may be. The words "hereof," "herein," "hereunder," and other similar compounds containing the word "here" shall mean and refer to this entire document and not to any particular article or section. Headings are included for reading convenience. The text shall control if any ambiguity or inconsistency exists between the headings and the text. References to "Participant" shall include alternate payee or beneficiary when appropriate and even if not otherwise already expressly stated.

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ARTICLE XI

TOP-HEAVY PROVISIONS

11.1Top-Heavy Plan. The Plan shall be deemed "Top-Heavy" with respect to any Plan Year if, as of the last day of the preceding Plan Year (the "Determination Date"), the present value of the cumulative account balances for "Key Employees," as defined in Code Section 416(i), under the Plan and all other plans in the "Aggregation Group," as defined below, exceeds 60% of the present value, as of the Determination Date, of the cumulative account balances under all such plans for all employees of the Affiliates. For purposes of this Article XI, (a) the term "Aggregation Group" shall mean each plan of the Affiliates in which a Key Employee participates and each other plan of the Affiliates that enables such plan to meet the requirements of Code Section 401(a)(4) or 410; (b) the present value of such account balances shall be computed in accordance with Code Section 416(g); and (c) the above percentage ratio shall be determined as of the Determination Date by a fraction, the numerator of which is the sum of the present value of the account balances of Key Employees under the Plan and all other plans in the Aggregation Group and the denominator of which is the sum of the present value of the account balances under all such plans, including the Plan, for all employees of the Affiliates. The accrued benefits of a Participant who did not perform any services for an Employer during the one-year period ending on the Determination Date shall be disregarded.

11.2Operative Provisions

(a)For any Plan Year with respect to which the Plan is deemed Top-Heavy, the Employer shall make a special Employer contribution on behalf of each Participant who is not a Key Employee with respect to such Plan Year in an amount that, when added to the matching contribution, if any, made under the Plan on behalf of such Participant for such Plan Year, equals 3% of the Participant's Section 415 compensation (as defined in Section 3.8). Any such special Employer contributions that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of Code Section 401(m). Notwithstanding the foregoing provisions of this Section 11.2, if a Participant in the Plan is also a Participant in a defined benefit plan of the Employer, then for each Plan Year with respect to which the Plan is Top-Heavy, such Participant's accrual of a minimum benefit

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under such other defined benefit plan in accordance with Code Section 416(c)(1) shall be deemed to satisfy the special Employer contribution requirements of this Section 11.2(a).

(b)In the event the Plan is deemed "Top-Heavy" pursuant to Section 11.1, each Participant shall have a nonforfeitable right to the Participant's entire Account balances, including those amounts attributable to the special Employer contributions under this Section 11.2.

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ARTICLE XII

SPECIAL RULES FOR CERTAIN OFFICERS

Notwithstanding the provisions set forth herein, Section 16 Officers are subject to special limitations on their ability to effect certain transactions under the Plan, as follows: The Section 16 Officer may effect "Discretionary Transactions," as defined below, only in compliance with Rule 16b-3(f) of the Securities Exchange Act of 1934, as amended.

A "Discretionary Transaction" is a transaction pursuant to the Plan that (a) is at the volition of the Participant; (b) is not made in connection with the Participant's death, retirement, or termination of employment; (c) is not required to be made available to the Participant pursuant to a provision of the Code; and (d) results in either an intra-Plan transfer involving an issuer equity securities fund, or a cash distribution funded by a volitional disposition of an issuer equity security. A Discretionary Transaction shall be exempt from Section 16(b) of the Securities and Exchange Act of 1934, as amended, only if effected pursuant to an election made at least six months following the date of the most recent election, with respect to any plan of the Company that effected a Discretionary Transaction that was (i) an acquisition, if the transaction to be exempted would be a disposition; or (ii) a disposition, if the transaction to be exempted would be an acquisition.

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EXECUTION

The Plan is established effective as of September 1, 2024, and executed by a duly authorized individual on the date set forth below.

		MDU RESOURCES GROUP, INC.
Date:	July 19, 2024	By:	/s/ Jason L. Vollmer
			Jason L. Vollmer, Chairman
			Employee Benefits Committee

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SCHEDULE A

SPINOFF PROVISIONS

A-1Spinoff and Establishment of the Plan. The Plan is established as a spinoff of the portion of the MDU 401(k) Plan attributable to the Everus Affiliates (defined in Section A-2) in accordance with Code Section 414(l) effective as of September 1, 2024, or as soon as administratively practicable thereafter (the "Spinoff Effective Date"). The participants and beneficiaries whose accounts make up the portion of the MDU 401(k) Plan that is spun off into the Plan are referred to in this Schedule A as the "Spinoff Participants." The Spinoff Participants' accounts (including loans) under the MDU 401(k) Plan shall transfer in-kind from the MDU 401(k) Plan to the Plan effective as of the Spinoff Effective Date. The Spinoff Participants' benefits under the MDU 401(k) Plan and their rights and obligations with respect to such benefits shall be governed by the Plan, as modified by this Schedule A, effective as of the Spinoff Effective Date, provided that any protected benefits applicable to the Spinoff Participants' accounts under the MDU 401(k) Plan shall remain in effect as to their Accounts under the Plan. Each Spinoff Participant who is an Eligible Employee on the Spinoff Effective Date shall participate in the Plan as of the Spinoff Effective Date. The terms of this Schedule A supersede the other provisions of the Plan to the extent necessary to eliminate inconsistencies between this Schedule A and such other provisions.

A-2Everus Affiliates. The Everus Affiliates include the following Affiliates that shall commence participation in the Plan beginning on the Spinoff Effective Date:

▪Bell Electric Contractors, a division of Capital Electric Construction Company, Inc.

▪Bombard Electric, LLC

▪Bombard Mechanical, LLC

▪Capital Electric Construction Company, Inc.

▪Capital Electric Line Builders, LLC

▪Desert Fire Protection, LLC (dba Allstate Fire Protection)

▪Desert Fire Protection, LP

▪Duro Electric Company

▪E.S.I., Inc.

▪Everus Construction, Inc.

▪International Line Builders, Inc.

▪Lone Mountain Excavation & Utilities, LLC

▪Loy Clark Pipeline Co.

▪OEG, Inc.

▪PerLectric, Inc.

▪Rocky Mountain Contractors, Inc.

▪Sun Valley

▪USI Industrial Services, LLC

▪Wagner-Smith Equipment Co.

The Everus Affiliates shall make up the initial Participating Affiliates in the Plan.

A-3Deferral and Catch-Up Contribution Elections. A Spinoff Participant's elections for deferral contributions (including deemed elections under an automatic contribution arrangement) and catch­ up contributions in effect under the MDU 401(k) Plan immediately prior to the Spinoff Effective Date shall transfer to the Plan as of the Spinoff Effective Date and shall remain in effect under the Plan until the Spinoff Participant changes his or her elections in accordance with Section 3.2.

A-4Matching Contributions. The matching contribution adopted by an Everus Affiliate that is in effect under the MDU 401(k) Plan immediately prior to the Spinoff Effective Date shall continue to be provided by the Everus Affiliate under the Plan on and after the Spinoff Effective Date as set forth in Section 3.4 or Schedule B until changed by the Everus Affiliate and approved by the Committee in accordance with Section 3.4.

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A-5Profit Sharing Contributions. The profit sharing contribution adopted by an Everus Affiliate that is in effect under the MDU 401(k) Plan immediately prior to the Spinoff Effective Date shall continue to be provided by the Everus Affiliate under the Plan on and after the Spinoff Effective Date as set forth in Schedule C until changed by the Everus Affiliate and approved by the Committee in accordance with Section 3.5(a).

A-6Retirement Contributions. The retirement contribution adopted by an Everus Affiliate that is in effect under the MDU 401(k) Plan immediately prior to the Spinoff Effective Date shall continue to be provided by the Everus Affiliate under the Plan on and after the Spinoff Effective Date as set forth in Schedule D or E until changed by the Everus Affiliate and approved by the Committee in accordance with Section 3.5(b).

A-7Investment Designations. A Spinoff Participant's investment designations in effect under the MDU 401(k) Plan immediately prior to the Spinoff Effective Date shall transfer to the Plan effective as of the Spinoff Effective Date and shall remain in effect under the Plan until the Spinoff Participant changes such designations in accordance with Section 5.2(a). Notwithstanding the foregoing, a Participant shall not be permitted to increase holdings in the Common Stock of MDU Resources Group, Inc., in his or her Account, and any existing investment designations in the Common Stock of MDU Resources Group, Inc., with respect to future contributions shall be mapped to the Plan's default fund described in Section 5.2(a) effective as of the Spinoff Effective Date. A Participant may, however, elect to transfer any or all of his or her Account out of the Common Stock of MDU Resources, Group, Inc., and into other Investment Funds at any time in accordance with Section 5.2(a).

A-8Beneficiary Designations. A Spinoff Participant's Beneficiary designations in effect under the MDU 401(k) Plan immediately prior to the Spinoff Effective Date shall transfer to the Plan as of the Spinoff Effective Date and shall remain in effect under the Plan until the Spinoff Participant changes such designations in accordance with Section 6.6.

A-9Transfer Employees. The employment of certain Employees will be transferred from an Affiliate other than an Everus Affiliate (a "Non-Everus Affiliate") to an Everus Affiliate on or after the Spinoff Effective Date and before the Distribution Date. For purposes of this Section A-9, an Employee whose employment is so transferred is referred to as a "Transfer Employee," and the date his or her employment is so transferred is referred to as the "Transfer Date."

A Transfer Employee shall become a Participant in the Plan effective as of his or her Transfer Date, provided that he or she is an Eligible Employee on such date. A Transfer Employee's deferral contribution election, catch-up contribution election, investment designations, and beneficiary designations in effect under the MDU 401(k) Plan immediately prior to his or her Transfer Date shall transfer to the Plan effective as of the Transfer Date or as soon as administratively practicable thereafter and shall remain in effect under the Plan until the Transfer Employee changes such elections or designations in accordance with the relevant terms of the Plan, provided that investment designations are subject to Section A-7 above. The Transfer Employee's accounts (including loans) under the MDU 401(k) Plan shall transfer in-kind to the Plan as of the Transfer Date or as soon as administratively practicable thereafter in accordance with Code Section 414(l), and his or her benefits under the MDU 401(k) Plan and his or her rights and obligations with respect to such benefits shall then be governed by the Plan, as modified by this Section A-9 (and other provisions of this Schedule A, as applicable), provided that any protected benefits applicable to the Transfer Employee's accounts under the MDU 401(k) Plan shall remain in effect as to his or her Accounts under the Plan.

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SCHEDULE B

MATCHING CONTRIBUTIONS

Each Employer identified in this Schedule B provides for matching contributions in lieu of the standard matching contributions provided in Section 3.4 to the extent described in this Schedule B.

B-1Desert Fire Protection, LLC (dba Allstate Fire Protection). The Employer shall not make matching contributions.

B-2OEG, Inc. The Employer shall make matching contributions equal to 100% of deferral contributions limited to 2% of Compensation each pay period.

B-3USI Industrial Services, LLC. The Employer shall not make matching contributions on behalf of its maintenance group Employees, other than such Employees included in payroll group 976 who are eligible for the standard matching contributions.

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SCHEDULE C

PROFIT SHARING CONTRIBUTIONS

C-1Introduction. Pursuant to Section 3.5(a) of the Plan, certain Participating Affiliates hereby establish profit sharing features as described in this Schedule C and will hereafter be referred to individually as a "Schedule C Employer" and collectively as "Schedule C Employers." The profit sharing features shall be in addition to all other contributions provided pursuant to the Plan. The terms of this Schedule C supersede the other provisions of the Plan to the extent necessary to eliminate inconsistencies between this Schedule C and such other provisions.

C-2Eligibility. Participation in the profit sharing features for any Plan Year is limited to Employees of the Schedule C Employers who satisfy the Plan's definition of Eligible Employee (unless otherwise specified below). Schedule C Employers include:

▪Capital Electric Line Builders, LLC (Eligible Employees participating in the executive incentive compensation plan are not eligible for a profit sharing contribution)

▪E.S.I., Inc.

▪OEG, Inc. (requirement to be an active Employee on the last day of the Plan Year does not apply)

▪Wagner-Smith Equipment Co.

To share in the allocation of any profit sharing contribution made by a Schedule C Employer for a Plan Year, Participants employed by a Schedule C Employer must (i) be credited with 1,000 Hours of Service in that Plan Year, (ii) be an active Employee of the Schedule C Employer on the last day of the Plan Year, and (iii) not be covered by a collectively bargained unit to which the profit sharing feature has not been extended.

For purposes of this Schedule C, "active Employee" means an Employee who is still on the payroll, has been temporarily laid off, or who terminated employment due to Disability, death, or after attaining Normal Retirement Age during the Plan Year, but does not mean an Employee whose employment has been otherwise terminated effective on or before December 31 of the Plan Year. In addition, for purposes of applying the requirement of completing 1,000 Hours of Service for the Plan Year, such requirement shall not apply to Employees terminating after attaining Normal Retirement Age, provided they are not terminated for cause.

Participants who meet the preceding requirements are referred to herein as "Schedule C Participants."

C-3Amount and Allocation. For each Plan Year, the governing body of each Schedule C Employer, in its discretion, shall determine the amount (if any) of profit sharing contributions to be made to the Plan based upon its own profitability. The amount of any such contribution for a Plan Year by any Schedule C Employer shall be allocated to its Schedule C Participants based on such Participants' Compensation, excluding bonuses, received while employed by the Schedule C Employer for the Plan Year.

C-4Vesting. Notwithstanding anything in Section 4.2 to the contrary, Schedule C Participants shall be vested in their Profit Sharing Accounts upon completing three Years of Vesting Service. For this purpose, A "Year of Vesting Service" means a Plan Year in which the Schedule C Participant is credited with at least 1,000 Hours of Service. Service with a Schedule C Employer and Affiliates shall be recognized for purposes of this Section C-4, including, but not limited to, service that occurred prior to the Spinoff Effective Date, applying these rules as if the Schedule C Employer (and its affiliates at that time) were Affiliates under the Plan. Notwithstanding the foregoing, a Schedule C Participant shall be fully vested in his or her Profit Sharing Account upon death, Disability, or attainment of Normal Retirement Age.

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SCHEDULE D

RETIREMENT CONTRIBUTIONS—

CERTAIN PARTICIPATING AFFILIATES

D-1Introduction. Participating Affiliates identified in Section D-2 (each a "Schedule D Employer" and collectively "Schedule D Employers") hereby establish retirement contribution features as described in this Schedule D. The retirement contribution features shall be in addition to all other contributions provided pursuant to the Plan.

D-2Eligibility. Participation in the retirement contributions listed below for any Plan Year is limited to Eligible Employees of the corresponding Schedule D Employers as follows:

Schedule D Employer	Retirement Contribution Amount as a Percentage of Compensation
Capital Electric Line Builders, LLC	3%
Everus Construction, lnc.1	5%
OEG, Inc.	6%
Rocky Mountain Contractors, Inc.	5%

1Limited to Eligible Employees hired after December 31, 2005.

To share in the allocation of any retirement contribution made by a Schedule D Employer for a Plan Year, Eligible Employees described above must be credited with at least 1,000 Hours of Service in the Plan Year and must not be covered by a collectively bargained unit to which the retirement contribution feature has not been extended. However, if the Participant's failure to be credited with 1,000 Hours of Service in that Plan Year is due to the Participant's (i) Disability, (ii) death, or

(iii) termination of employment on or after attaining Normal Retirement Age during such Plan Year (provided that the Participant is not terminated for cause), such Participant shall nevertheless be entitled to share in the allocation of the retirement contributions for such Plan Year. A Participant who is not a Highly Compensated Employee who has met the above eligibility requirements as of June 30 each Plan Year shall receive a pro rata allocation mid-year based on Compensation paid through June 30. The final annual allocation shall be reduced by any such mid-year allocation. Participants who meet the requirements of this Section D-2 are referred to herein as "Schedule D Participants."

D-3Amount and Allocation. For each Plan Year, each Schedule D Employer shall make retirement contributions on behalf of its Schedule D Participants in an amount equal to the applicable percentage of Compensation (excluding bonuses) listed in the table in Section D-2.

D-4Vesting. Notwithstanding anything in Section 4.2 to the contrary, Schedule D Participants shall be vested in their Retirement Contribution Accounts upon completing three Years of Vesting Service. For this purpose, a "Year of Vesting Service" means a Plan Year in which the Schedule D Participant is credited with at least 1,000 Hours of Service. Service with a Schedule D Employer and Affiliates shall be recognized for purposes of this Section D-4, including, but not limited to, service that occurred prior to the Spinoff Effective Date (defined in Section A-1), applying these rules as if the Schedule D Employer (and its affiliates at that time) were Affiliates under the Plan. Notwithstanding the foregoing, a Schedule D Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

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SCHEDULE E

RETIREMENT CONTRIBUTIONS—

CERTAIN PENSION PLAN PARTICIPANTS

E-1Introduction. Participating Affiliates that employ the individuals described in Section E-2 (each a "Schedule E Employer" and collectively "Schedule EEmployers") hereby establish a retirement contribution feature as described in this ScheduleE. The retirement contribution feature shall be in addition to all other contributions provided pursuant to the Plan.

E-2Eligibility. Participation in the retirement contribution for a Plan Year is limited to Eligible Employees who were active participants in the MDU Resources Group, Inc. Pension Plan for Non-Bargaining Unit Employees as of December 31, 2009 (who became eligible to participate in this retirement contribution feature under the MDU 401(k) Plan effective January 1, 2010) or as of June 30, 2011 (who became eligible to participate in this retirement contribution feature under the MDU 401(k) Plan effective July 1, 2011).

To share in the allocation of any retirement contribution made by a Schedule E Employer for a Plan Year, Eligible Employees described above must be credited with at least 1,000 Hours of Service in the Plan Year; provided, however, that if the Participant's failure to be credited with 1,000 Hours of Service in the Plan Year is due to the Participant's (i) Disability, (ii) death, or (iii) termination of employment on or after attaining Normal Retirement Age during the Plan Year (provided the Participant is not terminated for cause), such Participant shall nevertheless be entitled to a retirement contribution for such Plan Year. Any Participant who is not a Highly Compensated Employee who has met the above eligibility requirements as of June 30 each Plan Year shall receive a pro rata allocation mid-year based on compensation paid through June 30. The final annual allocation shall be reduced by any such mid-year allocation. Participants who meet the requirements of this Section E-2 are referred to herein as "Schedule E Participants."

E-3Amount and Allocation. For each Plan Year, Schedule E Participants eligible to participate in this feature on January 1, 2010, will be credited with the following retirement contribution based on their age as of December 31, 2009, and Schedule E Participants eligible to participate in this feature on July 1, 2011, will be credited with the following contribution based on their age as of June 30, 2011. The retirement contribution is also based on such a Participant's Compensation, excluding bonuses for the Plan Year, paid on and after the initial effective date of the provision.

Age as of December 31, 2009, or June 30, 2011	Retirement Contribution Percentage
Less than 30	5.0%
30 but less than 35	7.0%
35 but less than 40	9.0%
40 but less than 45	10.5%
45 and over	11.5%

Notwithstanding the foregoing, if the retirement contribution percentage above for Participants who are Highly Compensated Employees is more than the amount permitted under Code Section 415, the Participant's retirement contributions shall be reduced to the extent necessary to comply with Code Section 415. The retirement contribution percentage above may also be reduced for Participants who are Highly Compensated Employees, as necessary, to pass nondiscrimination testing.

E-4Vesting. Notwithstanding anything in Section 4.2 to the contrary, Schedule E Participants shall be vested in their Retirement Contribution Accounts upon completing three years of Vesting Service. For this purpose, a "Year of Vesting Service" means a Plan Year in which the Schedule E.

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Participant is credited with at least 1,000 Hours of Service. Service with a Schedule E Employer and Affiliates shall be recognized for purposes of this Section E, including, but not limited to, service that occurred prior to the Spinoff Effective Date (defined in Section A-1), applying these rules as if the Schedule E Employer (and its affiliates at that time) were Affiliates under the Plan. Notwithstanding the foregoing, a Schedule E Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

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SCHEDULE F

PRIOR PLAN MERGERS

The plans identified in this Schedule F (each a "merged plan") merged with and into the MDU 401(k) Plan as of the merger dates provided below. Each plan merger and resulting transfer of assets were designed to comply with Code Sections 401(a)(12), 411(d)(6), and 414(l). This Schedule F sets forth the special provisions of the merged plans that may affect a Participant on or after the Spinoff Effective Date (defined in Section A-1) of the Plan to the extent the Participant participated in the merged plan and his or her accounts in the merged plan transferred to the MDU 401(k) Plan in connection with the plan merger (identified in this Schedule F) and then transferred from the MDU 401(k) Plan to the Plan in connection with the spinoff of the Plan from the MDU 401(k) Plan (described in Section A-1) or the Participant's employment transfer (described in Section A-9).

F-1Pouk & Steinle Retirement Savings Plan

(a)Merger Date: September 1, 2004.

(b)Vesting: The affected Participant shall be fully vested in their Accounts.

(c)Distribution: For an affected Participant whose entire vested Account was in excess of

$5,000 and who terminated employment and requested distribution prior to December 31, 2004, distribution may have been made in the form of an annuity, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect as of the merger date (the applicable terms of the merged plan are incorporated herein by this reference) and Code Section 401(a)(11).

(d)Hardship Withdrawals: An affected Participant who requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan shall have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

F-2Northwest AGC Chapters 401(k) Profit Sharing Plan, as Adopted by Oregon ElectronicConstruction, Inc.

(a)Merger Date: September 1, 2004.

(b)Vesting: The affected Participants shall be fully vested in their Accounts.

(c)Distribution: For an affected Participant whose entire vested Account was in excess of

$5,000 and who terminated employment and requested distribution prior to December 31, 2004, distribution may have been made in the form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect as of the merger date (the applicable terms of the merged plan are incorporated herein by this reference).

d) Hardship Withdrawals: An affected Participant who requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan shall have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

F-3Loy Clark Pipeline Company 401(k) Plan

(a)Merger Date: December 29, 2004.

(b)Vesting: The affected Participants shall be fully vested in their Accounts.

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(c)Distribution: An affected Participant whose entire vested Account was in excess of $5,000 and who terminated employment and requested distribution prior to March 31, 2005, distribution may have been made in the form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect on the merger date (the applicable terms of the merged plan being incorporated herein by this reference).

F-4Rocky Mountain Contractors Employees' Profit Sharing Plan and Rocky Mountain ContractorsEmployees' Pension Plan (the "Pension Plan"), as Adopted by Rocky Mountain Contractors, Inc., and Hamlin Electric Company

(a)Merger Date: December 31, 2004.

(b)Vesting: Notwithstanding anything in Section 4.2 to the contrary and except as otherwise provided with respect to Normal Retirement Age or Disability, affected Participants shall be vested in their employer contributions transferred from the merged plans as follows:

Years of Vesting Service	Vested Percentage
Less than 2 years	0%
2 years but less than 3 years	20%
3 years or more	100%

For this purpose, a "Year of Vesting Service" means a Plan Year in which the affected Participant is compensated for 1,000 or more Hours of Service. An affected Participant shall be credited with any years of vesting service credited under the merged plans.

(c)Hardship and Age 59½ Withdrawals: An affected Participant who requests and is approved for a withdrawal pursuant to Section 4.5(a) or 4.5(b) of the Plan shall have excluded from the available amount any portion of the affected Participant's Account that was transferred from the Pension Plan in connection with the plan merger. In addition, if the affected Participant is married and a portion of the Account is attributable to the Pension Plan, the affected Participant must obtain spousal written consent, which consent must either be notarized or witnessed by a Plan representative.

(d)Loans: If an affected Participant is married and a portion of the Account is attributable to the Pension Plan, the affected Participant must obtain spousal written consent in order to obtain a loan under Section 4.8 of the Plan, which consent must either be notarized or witnessed by a Plan representative.

(e)Distribution: For an affected Participant whose entire vested Account is in excess of$5,000 and who terminated employment and requested distribution prior to March 15, 2005, distribution may have been made in the normal form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plans as in effect on the merger date (the applicable terms of the merged plans being incorporated herein by this reference). Any distribution requests made on or after March 15, 2005 shall be made in accordance with Section 4.4 of the MDU 401(k) Plan prior to the Spinoff Effective Date (defined in Section A-1) or Section 4.4 of the Plan on or after the Spinoff Effective Date; provided, however, an affected Participant's Account attributable to the Pension Plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Jeffrey S. Thiede, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Everus Construction Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 21, 2024	/s/ Jeffrey S. Thiede
		Name:	Jeffrey S. Thiede
		Title:	President and Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Maximillian J Marcy, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Everus Construction Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 21, 2024	/s/ Maximillian J Marcy
		Name:	Maximillian J Marcy
		Title:	Vice President, Chief Financial Officer and Treasurer
			(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Everus Construction Group, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey S. Thiede, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

    1.  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

    2.  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 21, 2024	/s/ Jeffrey S. Thiede
		Name:	Jeffrey S. Thiede
		Title:	President and Chief Executive Officer
			(Principal Executive Officer)

The certification set forth above is being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report, or as a separate disclosure document of the Company or the certifying officers.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Everus Construction Group, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Maximillian J Marcy, Vice President, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

    1.  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

    2.  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 21, 2024	/s/ Maximillian J Marcy
		Name:	Maximillian J Marcy
		Title:	Vice President, Chief Financial Officer and Treasurer
			(Principal Financial Officer)

The certification set forth above is being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report, or as a separate disclosure document of the Company or the certifying officers.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Nov. 18, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-42276
Entity Registrant Name	Everus Construction Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	99-1952207
Entity Address, Address Line One	1730 Burnt Boat Drive
Entity Address, City or Town	Bismarck
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58503
City Area Code	701
Local Phone Number	221-6400
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ECG
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		50,972,059
Entity Central Index Key	0002015845
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Condensed Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Operating revenues		$ 760,985	$ 717,406	$ 2,090,047	$ 2,218,672
Cost of sales		671,085	632,499	1,836,853	1,976,534
Gross profit		89,900	84,907	253,194	242,138
Selling, general and administrative expenses		36,191	34,816	109,292	102,519
Operating income		53,709	50,091	143,902	139,619
Interest expense		2,851	4,596	8,823	13,483
Other income		1,071	1,208	3,683	2,705
Income before income taxes and income from equity method investments		51,929	46,703	138,762	128,841
Income taxes		13,995	11,423	37,606	32,822
Income from equity method investments		3,833	734	7,797	4,718
Net income		$ 41,767	$ 36,014	$ 108,953	$ 100,737
Earnings per share:
Basic (in dollars per share)		$ 0.82	$ 0.71	$ 2.14	$ 1.98
Diluted (in dollars per share)		$ 0.82	$ 0.71	$ 2.14	$ 1.98
Weighted average common shares outstanding:
Basic (in shares)	[1]	50,972,000	50,972,000	50,972,000	50,972,000
Diluted (in shares)	[1]	50,972,000	50,972,000	50,972,000	50,972,000

[1]     Prior to the Separation (as defined below), Everus Construction had 1,000 common shares issued and outstanding. On October 31, 2024, as part of the Distribution (as defined below), 50,972,059 shares of Everus common stock were issued and outstanding. Basic and diluted earnings per share for periods prior to the Separation and Distribution have been retrospectively adjusted to reflect the Everus shares outstanding on the Distribution date. Refer to Note 1 and Note 2 for more information.

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Condensed Consolidated Statements of Income (Parenthetical) - shares	Oct. 31, 2024	Oct. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Common stock, issued (in shares)			1,000	1,000
Common stock, outstanding (in shares)			1,000	1,000
Subsequent event
Common stock, issued (in shares)	50,972,059	1,000
Common stock, outstanding (in shares)	50,972,059	1,000

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 41,767	$ 36,014	$ 108,953	$ 100,737
Other comprehensive income:
Reclassification adjustment for loss on derivative instruments included in net income, net of tax benefit of $0 for each of the three and nine months ended September 30, 2024, and $0 and $1 for the three and nine months ended September 30, 2023, respectively	0	0	0	35
Other comprehensive income	0	0	0	35
Comprehensive income attributable to common stockholders	$ 41,767	$ 36,014	$ 108,953	$ 100,772

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Reclassification adjustment for loss on derivative instruments included in net income, tax	$ 0	$ 0	$ 0	$ 1

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 553	$ 1,567
Costs and estimated earnings in excess of billings	174,102	158,529
Inventories	46,923	42,709
Prepayments and other current assets	20,553	17,651
Total current assets	886,532	766,063
Noncurrent assets:
Property, plant and equipment, net of accumulated depreciation of $153,272 and $143,831, respectively	129,361	116,018
Goodwill	143,224	143,224
Other intangible assets, net of accumulated amortization of $9,984 and $8,738, respectively	466	2,004
Operating lease right-of-use assets	68,852	53,233
Noncurrent retention receivable	32,849	21,355
Investments	17,648	8,413
Other	360	272
Total noncurrent assets	392,760	344,519
Total assets	1,279,292	1,110,582
Current liabilities:
Contract liabilities	221,662	198,231
Accounts payable	160,873	116,573
Taxes payable	14,006	8,557
Accrued compensation	66,960	44,721
Current portion of operating lease liabilities	26,110	21,143
Accrued payroll-related liabilities	37,292	35,342
Total current liabilities	559,561	452,183
Noncurrent liabilities:
Related-party notes payable	214,525	168,531
Deferred income taxes	965	6,535
Operating lease liabilities	43,247	32,504
Other	7,691	1,979
Total noncurrent liabilities	266,428	209,549
Total liabilities	825,989	661,732
Commitments and contingencies
Common stockholder’s equity:
Common Stock, stated value $1, no par value; 1,000 shares authorized, issued and outstanding	1	1
Other paid-in capital	137,947	136,184
Retained earnings	315,355	312,665
Total stockholder’s equity	453,303	448,850
Total liabilities and stockholder’s equity	1,279,292	1,110,582
Nonrelated party
Current assets:
Receivables, net	632,131	534,100
Current liabilities:
Other accrued liabilities	16,788	13,001
Related party
Current assets:
Receivables, net	12,270	11,507
Noncurrent assets:
Operating lease right-of-use assets	68	136
Current liabilities:
Other accrued liabilities	15,870	14,615
Current portion of operating lease liabilities	68	90
Noncurrent liabilities:
Operating lease liabilities	$ 0	$ 46

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for receivables	$ 7,300	$ 7,967
Accumulated depreciation	153,272	143,831
Accumulated amortization	$ 9,984	$ 8,738
Common stock, stated value (in dollars per share)	$ 1	$ 1
Common stock, authorized (in shares)	1,000	1,000
Common stock, issued (in shares)	1,000	1,000
Common stock, outstanding (in shares)	1,000	1,000

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Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Other Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2022		1,000
Beginning balance at Dec. 31, 2022	$ 382,247	$ 1	$ 136,327	$ 245,954	$ (35)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,074			26,074
Other comprehensive income (loss)	(11)				(11)
Net transfers from (to) Centennial	(13,715)		(1,207)	(12,508)
Ending balance (in shares) at Mar. 31, 2023		1,000
Ending balance at Mar. 31, 2023	394,595	$ 1	135,120	259,520	(46)
Beginning balance (in shares) at Dec. 31, 2022		1,000
Beginning balance at Dec. 31, 2022	382,247	$ 1	136,327	245,954	(35)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	100,737
Other comprehensive income (loss)	35
Ending balance (in shares) at Sep. 30, 2023		1,000
Ending balance at Sep. 30, 2023	444,396	$ 1	135,719	308,676	0
Beginning balance (in shares) at Mar. 31, 2023		1,000
Beginning balance at Mar. 31, 2023	394,595	$ 1	135,120	259,520	(46)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,649			38,649
Other comprehensive income (loss)	46				46
Net transfers from (to) Centennial	(12,603)		398	(13,001)
Ending balance (in shares) at Jun. 30, 2023		1,000
Ending balance at Jun. 30, 2023	420,687	$ 1	135,518	285,168	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,014			36,014
Other comprehensive income (loss)	0
Net transfers from (to) Centennial	(12,305)		201	(12,506)
Ending balance (in shares) at Sep. 30, 2023		1,000
Ending balance at Sep. 30, 2023	$ 444,396	$ 1	135,719	308,676	$ 0
Beginning balance (in shares) at Dec. 31, 2023	1,000	1,000
Beginning balance at Dec. 31, 2023	$ 448,850	$ 1	136,184	312,665
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,214			28,214
Net transfers from (to) Centennial	(12,758)		1,006	(13,764)
Ending balance (in shares) at Mar. 31, 2024		1,000
Ending balance at Mar. 31, 2024	$ 464,306	$ 1	137,190	327,115
Beginning balance (in shares) at Dec. 31, 2023	1,000	1,000
Beginning balance at Dec. 31, 2023	$ 448,850	$ 1	136,184	312,665
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	108,953
Other comprehensive income (loss)	$ 0
Ending balance (in shares) at Sep. 30, 2024	1,000	1,000
Ending balance at Sep. 30, 2024	$ 453,303	$ 1	137,947	315,355
Beginning balance (in shares) at Mar. 31, 2024		1,000
Beginning balance at Mar. 31, 2024	464,306	$ 1	137,190	327,115
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,972			38,972
Net transfers from (to) Centennial	(13,287)		463	(13,750)
Ending balance (in shares) at Jun. 30, 2024		1,000
Ending balance at Jun. 30, 2024	489,991	$ 1	137,653	352,337
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	41,767			41,767
Other comprehensive income (loss)	0
Net transfers from (to) Centennial	$ (78,455)		294	(78,749)
Ending balance (in shares) at Sep. 30, 2024	1,000	1,000
Ending balance at Sep. 30, 2024	$ 453,303	$ 1	$ 137,947	$ 315,355

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Operating activities:
Net income	$ 41,767	$ 28,214	$ 36,014	$ 26,074	$ 108,953	$ 100,737
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation					16,961	15,658
Amortization					1,538	1,575
Deferred income taxes					(5,570)	(734)
Provision for credit losses	83		1,734		(51)	4,385
Stock-based compensation costs					1,034	517
Unrealized gain on investments	(200)		0		(531)	0
Gain on sale of assets					(5,513)	(6,297)
Equity in earnings of unconsolidated affiliates, net of distributions					(4,788)	(4,718)
Changes in current assets and liabilities, net of acquisitions:
Receivables					(97,980)	(5,828)
Due from related-party					(763)	1,381
Costs and estimated earnings in excess of billings					(15,573)	(44,802)	$ (4,622)
Inventories					(4,214)	(8,984)
Other current assets					(2,303)	(2,512)
Accounts payable					44,265	(11,125)
Due to related-party					10	356
Billings in excess of costs and estimated earnings					23,431	12,566	32,042
Other current liabilities					32,760	6,540
Other noncurrent changes					(8,984)	2,647
Net cash provided by operating activities					82,682	61,362
Investing activities:
Capital expenditures					(34,506)	(28,134)
Net proceeds from sale or disposition of property					9,587	12,247
Investments					(570)	(535)
Net cash used in investing activities					(25,489)	(16,422)
Financing activities:
Repayment of related-party notes payable					0	(45,000)
Repayment of related-party short-term notes payable					0	(27,000)
Net amounts received from related-party cash management program					45,994	62,527
Transfers to Centennial					(104,201)	(37,026)
Net cash used in financing activities					(58,207)	(46,499)
Decrease in cash and cash equivalents					(1,014)	(1,559)
Cash and cash equivalents - beginning of period		$ 1,567		$ 2,112	1,567	2,112	2,112
Cash and cash equivalents - end of period	$ 553		$ 553		$ 553	$ 553	$ 1,567

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Background and Nature of Operations

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Background and Nature of Operations

Background and Nature of Operations

Everus Construction, Inc. (formerly known as MDU Construction Services Group, Inc.) (“Everus Construction”) is incorporated under the laws of the State of Delaware and operated historically as a wholly owned subsidiary of CEHI, LLC (“Centennial”), which is a wholly owned subsidiary of MDU Resources Group, Inc. (“MDU Resources” or “MDU”).

On November 2, 2023, MDU Resources announced its intent to pursue a tax-free spinoff of Everus Construction from MDU Resources (the “Separation”). In anticipation of the Separation, MDU Resources formed a new wholly owned subsidiary, Everus Construction Group, Inc. (the “Company” or “Everus”), that would become the new parent company of Everus Construction.

On October 31, 2024, MDU Resources completed the Separation by transferring Everus Construction, inclusive of all its assets and liabilities, to Everus and distributing 50,972,059 shares of Everus common stock ($0.01 par value) to MDU Resources stockholders of record as of October 21, 2024 (the “Distribution”). The Distribution was structured as a pro rata distribution of one share of Everus common stock for every four shares of MDU Resources common stock (such ratio, the “Distribution Ratio”). MDU Resources did not distribute any fractional shares of Everus common stock to its stockholders as part of the Distribution. Instead, MDU Resources’ stockholders will receive cash in lieu of any fractional shares of Everus common stock that they would have received after application of the Distribution Ratio.

As a result of the Separation and Distribution, Everus is now a separate, independent publicly traded company and its common stock is listed under the symbol “ECG” on the New York Stock Exchange. More information on the Separation and Distribution, as well as the Company's historical results, can be found within the Company's Registration Statement on Form 10 (“Form 10”), which is not incorporated by reference herein.

The Separation was completed pursuant to a separation and distribution agreement and other agreements with MDU Resources related to the Separation, including, but not limited to, a transition services agreement, a tax matters agreement and an employee matters agreement. The Company has incurred costs in establishing itself as an independent public entity and expects additional ongoing expenses related to its continued operations as such.

Prior to the Separation, Everus Construction was the construction services segment of MDU Resources. The Company provides specialty contracting services to a diverse set of end markets across the United States, which are provided to utilities and manufacturing, transportation, commercial, industrial, institutional, renewables and governmental customers. The Company operates throughout most of the United States through two operating segments, which represent its two reportable segments:

Electrical & Mechanical: Contracting services including construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services to customers in both the public and private sectors.

Transmission & Distribution: Contracting services including construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as design, manufacturing and distribution of overhead and underground transmission line construction equipment and tools.

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Basis of Presentation

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

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. The accompanying unaudited condensed consolidated financial statements and footnotes 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 the Company operated on a standalone basis during the periods presented. However, the unaudited condensed consolidated financial statements do not necessarily reflect what the Company’s results of

operations, financial position and cash flows would have been had it operated as a separate, publicly traded company during the periods presented and may not be indicative of its future performance.

The accompanying unaudited condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“GAAP”). Pursuant to GAAP, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements included in the Company’s Form 10. The information includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the unaudited condensed consolidated financial statements and are of a normal recurring nature.

The unaudited condensed consolidated balance sheets reflect the assets and liabilities of Centennial that were specifically identifiable as being directly attributable to the Company for the periods presented prior to the Separation.

All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company were included in the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements also include allocated expenses for certain functions that were provided by MDU Resources and Centennial, including, but not limited to, certain general corporate expenses related to senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit, risk management and other shared services. These general corporate expenses were included in the unaudited condensed consolidated statements of income within Selling, general and administrative expenses. The amounts allocated were $4.9 million and $27.6 million for the three and nine months ended September 30, 2024, respectively, and $4.5 million and $21.5 million for the three and nine months ended September 30, 2023, respectively. These expenses were allocated to the Company on the basis of direct usage where identifiable, with the remainder principally allocated on the basis of percent of total capital invested or other allocation methodologies that were considered to be a reasonable reflection of the utilization of the services provided to the benefits received. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party.

Earnings per share information has been retrospectively adjusted for all periods presented on the unaudited condensed consolidated statements of income to reflect the Distribution. Refer to Note 8 – Earnings Per Share for more information on the share count used in the earnings per share calculations.

Following the Separation, the Company now performs certain functions using its own resources or purchased services. For an interim period of up to 20 months following the Separation, however, certain functions will continue to be provided by MDU Resources under a transition services agreement.

Prior to the Separation, the Company historically participated in MDU Resources’ centralized cash management program through Centennial, including its overall financing arrangements. The Company had related-party agreements in place with Centennial for the financing of its capital needs, which are reflected as Related-party notes payable on the unaudited condensed consolidated balance sheets. Interest expense in the unaudited condensed consolidated statements of income reflected the allocation of interest on borrowing and funding associated with the related-party agreements. Following the Separation, the Company no longer participates in MDU Resources’ centralized cash management program. The Company has implemented its own centralized cash management program and has access to third-party credit facilities to fund day-to-day operations. Refer to Note 15 – Related-Party Transactions and Note 16 – Subsequent Events for additional information.

Prior to the Separation, MDU Resources maintained various benefit and stock-based compensation plans at a corporate level and the Company’s employees participated in these programs. The costs associated with its employees are included in the Company’s unaudited condensed consolidated financial statements. Following the Separation, Everus has its own benefit and stock-based compensation plans at a corporate level that its employees participate in.

Principles of Consolidation

The unaudited condensed consolidated financial statements were prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed consolidated financial statements.

Related-party transactions between the Company, MDU Resources, Centennial or other MDU Resources subsidiaries, for general operating activities, the Company's participation in MDU Resources’ centralized cash management program through Centennial, and intercompany debt, were included in the unaudited condensed consolidated financial statements. These related-party transactions were historically settled in cash and were reflected in the unaudited condensed consolidated balance sheets as Due from related-party, Due from related-party - noncurrent, Due to related-party or Related-party notes payable. The aggregate net effect of general related-party operating activities was reflected in the unaudited condensed consolidated statements of cash flows within operating activities. The effects of the Company’s participation in MDU Resources’ centralized cash management program and intercompany debt arrangements were reflected in the unaudited condensed consolidated statements of cash flows within investing and financing activities. Refer to Note 15 – Related-Party Transactions for additional information on related-party transactions.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

New Accounting Standards

Changes to GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs.

The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its financial statements and/or disclosures:

Standard	Description	Effective Date	Impact on Financial Statements/Disclosures
Recently adopted ASUs
ASU 2022-06 – Reference Rate Reform (Topic 848): Deferral of Sunset Date	In December 2022, the FASB included a sunset provision within ASC 848 based on expectations of when the London Inter-Bank Offered Rate (“LIBOR”) would cease to be published. At the time ASU 2020-04 was issued, the UK Financial Conduct Authority had established its intent to cease overnight tenors of LIBOR after December 31, 2021. In March 2021, the UK Financial Conduct Authority announced that the intended cessation date of the overnight tenors of LIBOR would be June 30, 2023, which is beyond the current sunset date of ASC 848. The amendments in this Update defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in ASC 848. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must have identified a replacement rate by June 30, 2023. New contracts will incorporate a new reference rate, which includes the Secured Overnight Financing Rate (“SOFR”).	Effective upon issuance (December 21, 2022) through December 31, 2024.	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR. The Company determined the adoption of the guidance did not have a material impact on its unaudited condensed consolidated financial statements.

Standard	Description	Effective Date	Impact on Financial Statements/Disclosures
Recently issued ASUs not yet adopted
ASU 2023-05 - Business Combinations - Joint Venture Formations - Recognition and Initial Measurement	In August 2023, the FASB issued guidance on accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statement in order to provide decision useful information to investors and other allocators of capital (collectively investors) in a joint venture's financial statements and reduce diversity in practice. The new basis of accounting will require that a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with the exceptions to fair value measurement that are consistent with the business combinations guidance). A joint venture that was formed before January 1, 2025, may elect to apply the guidance retrospectively if it has sufficient information.	Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.	The Company is currently evaluating the impact the guidance will have on its interim and annual disclosures for the year ended December 31, 2025.
ASU 2023-07 - Segment Reporting - Improvements to Reportable Segment Disclosures	In November 2023, the FASB issued guidance on improving financial reporting by requiring disclosure on incremental segment information, primarily through enhanced disclosures about significant segment expenses on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses.	Effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with prior periods disclosed in the period of adoption.	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024, and future interim periods.
ASU 2023-09 - Income Taxes - Improvements to Income Tax Disclosures	The FASB issued guidance to address investors’ requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income tax paid information and effectiveness of income tax disclosures.	Effective for fiscal years beginning after December 15, 2024.	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the unaudited condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; property depreciable lives; tax provisions; revenue recognized using the cost-to-cost measure of progress for contracts; expected credit losses; loss contingencies; costs on construction contracts; unbilled revenues; actuarially determined benefit costs; lease classification; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation. As additional information becomes available, or actual

amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. 

Receivables and Allowance for Expected Credit Losses

Receivables consist primarily of trade receivables from the sale of goods and services net of expected credit losses. Receivables, net is summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Trade receivables:
Completed contracts	$	33,425	$	42,467
Contracts in progress	532,513		409,872
Retention receivables	67,279		84,474
Other	6,214		5,254
Receivables, gross	639,431		542,067
Less: expected credit losses	7,300		7,967
Receivables, net	$	632,131	$	534,100

The Company's trade receivables are all due in 12 months or less. The total balance of receivables past due 90 days or more was $74.5 million and $42.0 million as of September 30, 2024 and December 31, 2023, respectively.

Details of the Company's expected credit losses, disclosed within Receivables, net for the respective periods presented below, were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	7,257	$	4,717	$	7,967	$	2,161
Current expected credit loss provision	83		1,734		(51)		4,385
Less: write-offs charged against the allowance	84		27		672		181
Credit loss recoveries collected	44		—		56		59
Balance at end of period	$	7,300	$	6,424	$	7,300	$	6,424

Inventories

Inventories consist primarily of manufactured equipment held for resale and/or rental of $40.6 million and $37.2 million as of September 30, 2024 and December 31, 2023, respectively, and materials and supplies of $6.3 million and $5.5 million as of September 30, 2024 and December 31, 2023, respectively. These inventories are stated at the lower of average cost or net realizable value. The value of inventory may decrease due to obsolescence, physical deterioration, damage, costs to repair or other causes. Inventory valuation write-downs are determined based on specific facts and circumstances and were immaterial as of September 30, 2024 and December 31, 2023.

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Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

As part of the adoption of Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.

Contract Estimates and Changes in Estimates

Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management's estimates of additional contract revenues that have been earned and are probable of collection.

As of September 30, 2024 and December 31, 2023, $37.8 million and $57.3 million, respectively, of unexecuted change orders were included in contract transaction price and in Costs and estimated earnings in excess of billings on the unaudited condensed consolidated balance sheets. The Company was in the process of negotiating execution of these change orders in the normal course of business and the recognized amounts represent its best estimates of additional contract revenues for which it is not probable that a significant reversal of the revenue amounts will occur in the future.

As of September 30, 2024 and December 31, 2023, in the normal course of business, the Company had additional priced work not approved by the customer to begin project work of approximately $233.1 million and $187.4 million, respectively, with minimal costs incurred. These amounts were excluded from contract transaction price. In addition, claim positions of $42.7 million were excluded from the contract transaction price as of both September 30, 2024 and December 31, 2023. The Company continues to evaluate these claims.

As of September 30, 2024 and December 31, 2023, the Company had recorded loss provisions of $1.2 million and $1.5 million, respectively, in Billings in excess of costs and estimated earnings on the unaudited condensed consolidated balance sheets related to these contracts that are still being completed and remain recorded.

The Company received notification from a customer on a large project with a contract that was billed on a time and materials basis with no stated maximum price, that it is withholding payment of approximately $31.2 million on remaining outstanding billings, including retention. The Company believes it has substantial defenses against these claims based upon the terms of the contract and it has performed under the terms of the contract. Therefore, the Company believes collection of the remaining outstanding billings, including retention is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.

Disaggregation of Revenue

In the following tables, revenues are disaggregated by contract type and customer type for each reportable segment. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. For more information on the Company’s reportable segments, refer to Note 12 – Business Segment Data.

The following tables present revenue disaggregated by contract type:

Three months ended September 30, 2024	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	326,972	$	106,936	$	433,908
Unit-price	15,031		46,848		61,879
Cost reimbursable*	194,892		74,720		269,612
Total contract revenues	536,895		228,504		765,399
Eliminations	(2,154)		(2,260)		(4,414)
Total operating revenues	$	534,741	$	226,244	$	760,985

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Three months ended September 30, 2023	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	272,042	$	92,607	$	364,649
Unit-price	18,401		29,590		47,991
Cost reimbursable*	226,490		82,231		308,721
Total contract revenues	516,933		204,428		721,361
Eliminations	(2,555)		(1,400)		(3,955)
Total operating revenues	$	514,378	$	203,028	$	717,406

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Nine months ended September 30, 2024	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	966,035	$	282,582	$	1,248,617
Unit-price	49,254		118,016		167,270
Cost reimbursable*	466,489		223,179		689,668
Total contract revenues	1,481,778		623,777		2,105,555
Eliminations	(5,627)		(9,881)		(15,508)
Total operating revenues	$	1,476,151	$	613,896	$	2,090,047

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Nine months ended September 30, 2023	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	784,334	$	261,457	$	1,045,791
Unit-price	62,488		62,401		124,889
Cost reimbursable*	833,388		225,593		1,058,981
Total contract revenues	1,680,210		549,451		2,229,661
Eliminations	(7,262)		(3,727)		(10,989)
Total operating revenues	$	1,672,948	$	545,724	$	2,218,672

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

The following table presents revenue disaggregated by customer type:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Commercial	$	327,403	$	266,587	$	860,088	$	947,792
Industrial	76,493		116,013		236,349		367,331
Institutional	93,390		76,276		274,916		195,178
Renewables	10,414		19,244		27,551		43,947
Service & other	29,195		38,813		82,874		125,962
Total Electrical & Mechanical	536,895		516,933		1,481,778		1,680,210
Utility	206,669		188,680		559,922		508,850
Transportation	21,835		15,748		63,855		40,601
Total Transmission & Distribution	228,504		204,428		623,777		549,451
Eliminations	(4,414)		(3,955)		(15,508)		(10,989)
Total operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672

Uncompleted Contracts and Contract Assets and Contract Liabilities

Costs, estimated earnings and billings on uncompleted contracts are summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Costs incurred on uncompleted contracts	$	6,399,940	$	6,390,641
Estimated earnings	875,983		840,994
Costs and estimated earnings on uncompleted contracts	7,275,923		7,231,635
Less: billings to date	7,323,483		7,271,337
Net contract liabilities	$	(47,560)	$	(39,702)

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in contract assets or contract liabilities.

Contract assets, located within Costs and estimated earnings in excess of billings on the unaudited condensed consolidated balance sheets, occur when revenues are recognized under the cost-to-cost measure of progress, which exceed amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. Contract assets are not considered a significant financing component as they are intended to protect the customer in the event the Company does not perform on its obligations under the contract.

Contract liabilities, located within Billings in excess of costs and estimated earnings on the unaudited condensed consolidated balance sheets, occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. Contract liabilities are not considered to have a significant financing component as they are used to meet working capital requirements that generally are higher in the early

stages of a contract and are intended to protect the Company from the counterparty failing to meet its obligations under the contract.

Contract assets and contract liabilities consisted of the following:

	September 30, 2024		December 31, 2023
	(In thousands)
Unbilled revenue	$	174,102	$	158,529
Contract assets	$	174,102	$	158,529
Deferred revenue	$	220,478	$	196,686
Accrued loss provision	1,184		1,545
Contract liabilities	$	221,662	$	198,231

The following table presents the opening and closing balances of contract assets and contract liabilities as of:

	September 30, 2024						December 31, 2023
	Contract Assets		Contract Liabilities		Net Contract Liabilities		Contract Assets		Contract Liabilities		Net Contract Liabilities
	(In thousands)
Balance at beginning of period	$	158,529	$	(198,231)	$	(39,702)	$	153,907	$	(166,189)	$	(12,282)
Change during period	15,573		(23,431)		(7,858)		4,622		(32,042)		(27,420)
Balance at end of period	$	174,102	$	(221,662)	$	(47,560)	$	158,529	$	(198,231)	$	(39,702)

Contract assets and contract liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and unapproved change orders and contract claims recognized as revenues. The primary driver of the difference between the Company's opening and closing contract asset and contract liability balances is the timing of the Company's billings in relation to its performance of work.

The Company recognized a net increase in revenues of $47.4 million and $167.0 million for the three and nine months ended September 30, 2024, respectively, related previously recognized deferred revenues that were included in contract liabilities as of December 31, 2023. The Company a net increase in revenues of $6.3 million and $162.6 million for the three and nine months ended September 30, 2023, respectively, related to previously recognized deferred revenues that were included in contract liabilities as of December 31, 2022.

The Company recognized a net increase in revenues of $25.8 million and $71.5 million for the three and nine months ended September 30, 2024, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $20.2 million and $41.4 million for the three and nine months ended September 30, 2023, respectively, from performance obligations satisfied in prior periods.

Retainage under terms of the Company’s contracts was $100.1 million and $105.8 million as of September 30, 2024 and December 31, 2023, respectively. Retainage represents amounts that have been contractually invoiced to customers and where payments have been partially withheld pending the achievement of certain milestones, satisfaction of other contractual conditions, or completion of the project. As of September 30, 2024, the Company estimated that approximately 67 percent of the retainage outstanding will be collected within the next 12 months.

Remaining Performance Obligations

The remaining performance obligations, also referred to as backlog, include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues 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. The majority of the Company's contracts for contracting services have an original duration of less than one year.

As of September 30, 2024 and December 31, 2023, the aggregate amount of the transaction price allocated to the Company's remaining performance obligations was $2.88 billion and $2.01 billion, respectively. The table below shows additional information regarding the Company’s remaining performance obligations as of September 30, 2024, including an estimate of when the Company expects to recognize its remaining performance obligations as revenues:

	Within 12 months		Greater than 12 months
	(In thousands)
Remaining performance obligations:
Electrical & Mechanical	$	1,913,264	$	654,607
Transmission & Distribution	270,415		46,547
Total	$	2,183,679	$	701,154

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The Company’s carrying amount of goodwill remained unchanged at $143.2 million as of both September 30, 2024 and December 31, 2023. The Company has determined that its reporting units are Electrical & Mechanical, Transmission & Distribution, and Wagner Smith Equipment (“WSE”). WSE is within the Transmission & Distribution reportable segment. Goodwill also remained unchanged for each reportable segment as of both September 30, 2024 and December 31, 2023, with $115.9 million for Electrical & Mechanical and $27.3 million for Transmission & Distribution. No impairments of goodwill were recorded for the three and nine months ended September 30, 2024 and 2023.

Other Intangible Assets

Other amortizable intangible assets were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Noncompete agreements	$	—	$	292
Less: accumulated amortization	—		292
Net noncompete agreements	—		—
Customer relationships	10,450		10,450
Less: accumulated amortization	9,984		8,446
Net customer relationships	466		2,004
Total	$	466	$	2,004

Amortization expense for finite-lived intangible assets was $0.5 million and $1.5 million for the three and nine months ended September 30, 2024, respectively. Amortization expense for finite-lived intangible assets was $0.5 million and $1.6 million for the three and nine months ended September 30, 2023, respectively. Amortization expense is recognized in Selling, general and administrative expenses in the unaudited condensed consolidated statements of income. No impairments of finite-lived intangible assets were recorded for the three and nine months ended September 30, 2024 and 2023.

Future amortization expense for finite-lived intangible assets as of September 30, 2024 is estimated to be as follows:

	Remainder of 2024		2025
	(In thousands)
Amortization expense	$	349	$	117

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Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value ASC 820 establishes a three-tier hierarchy for grouping assets and liabilities, based on the significance and availability of inputs in active markets. The estimated fair values of the Company's assets and liabilities measured on a recurring basis are determined using the market approach.

In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are “unobservable data points” for the asset or liability and include situations where there is little, if any, market activity for the asset or liability.

The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in the unaudited condensed consolidated statements of income. The Company anticipates using these investments, which consist of insurance contracts, to satisfy its obligations as a participant in MDU Resources’ unfunded, nonqualified defined benefit plans for the Company's executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $4.4 million and $5.0 million as of September 30, 2024 and December 31, 2023, respectively, are included in Investments on the unaudited condensed consolidated balance sheets. The Company recognized net unrealized gains on these investments of $0.2 million and $0.5 million, respectively, for the three and nine months ended September 30, 2024. The net unrealized losses on these investments were immaterial for each of the three and nine months ended September 30, 2023. The change in fair value, which is considered part of the cost of the plan, is classified in Other income on the unaudited condensed consolidated statements of income.

The Company’s Level 2 money market funds are included as a part of Investments on the unaudited condensed consolidated balance sheets and are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets or using other known sources, including pricing from outside sources. The estimated fair value of the Company’s Level 2 insurance contracts is based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data.

Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in different estimates of fair value.

The estimated fair values of the Company’s cash and cash equivalents, receivables, accounts payable and other accrued liabilities approximate their carrying value due to the short-term maturities of these instruments.

The carrying value of the Company’s long-term debt, classified as related-party notes payable, approximates fair value based on a comparison with current prevailing market rates for borrowings of similar risks and maturities.

The Company’s assets measured at fair value on a recurring basis were as follows:

	Fair Value Measurements as of September 30, 2024, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2024
	(In thousands)
Assets:
Insurance contracts	$	—	$	4,448	$	—	$	4,448
Total assets measured at fair value	$	—	$	4,448	$	—	$	4,448

	Fair Value Measurements as of December 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2023
	(In thousands)
Assets:
Money market funds	$	—	$	1,725	$	—	$	1,725
Insurance contracts	—		5,005		—		5,005
Total assets measured at fair value	$	—	$	6,730	$	—	$	6,730

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Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

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 Company has entered into operating leases as part of its ongoing operations. The corresponding lease costs are included in Cost of sales and Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.

Generally, leases for vehicles and equipment have a term of five years or less and buildings have a longer term of up to 35 years or more. The Company has previously guaranteed the residual value under certain of its equipment operating leases and could in the future, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded the residual value guarantees. The Company currently does not have any residual value guarantee amounts probable of being owed to a lessor, for financing leases or material agreements with related parties.

In March 2024, in anticipation of the Separation, the Company entered into a 60 months lease for a new corporate headquarters, with a lease term of August 1, 2024 through July 31, 2029. The new corporate headquarters, which is located in Bismarck, North Dakota, is for 16,188 square feet with average annual rent payments and average annual common area maintenance (“CAM”) charges totaling approximately $303 thousand and $102 thousand, respectively, for the duration of the lease.

The following table provides a summary of the Company's lease costs for operating leases:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Lease costs:
Operating lease cost	$	8,156	$	6,693	$	22,769	$	19,448
Variable lease cost(1)	319		296		917		892
Short-term lease cost(1)	27,965		25,889		75,703		72,803
Total lease costs	$	36,440	$	32,878	$	99,389	$	93,143

__________________

(1)Subsequent to the filing of the audited consolidated financial statements for the year ended December 31, 2023 and the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024 in the Form 10, the Company’s management determined that the Company incorrectly presented variable lease cost and short-term lease cost due to a clerical error when preparing the financial statements, including the related footnotes. The amounts in the preceding table have been revised to correct the impact of this classification error for the nine months ended September 30, 2024 and 2023. The classification error will be corrected in future filings for the historical periods. The reclassification error had no impact to results of operations, balance sheets, or cash flows for any of the periods within the Form 10.

The following is a summary of the lease terms and discount rates for operating leases:

	September 30, 2024		December 31, 2023
Weighted average remaining lease term	1.38 years		1.34 years
Weighted average discount rate	5.51	%	4.94	%

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

	Nine months ended September 30,
	2024		2023
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities	$	22,653	$	19,745
Right-of-use assets obtained in exchange for new operating lease liabilities	$	38,454	$	21,164

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 sheets was as follows:

	September 30, 2024
	(In thousands)
Remainder of 2024	$	7,963
2025	26,851
2026	18,202
2027	11,052
2028	6,087
Thereafter	6,043
Total	76,198
Less: discount	6,841
Total operating lease liabilities	$	69,357

The Company has entered into operating leases for land, buildings, equipment and office space with certain members of management and officers of the Company in connection with acquisitions of subsidiaries that were previously owned and operated by such management. Refer to Note 15 – Related-Party Transactions for additional information.

Lessor Accounting

The Company leases certain equipment to third parties. These leases are considered short-term operating leases with terms of less than 12 months. The Company recognizes revenue 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 Company recognized revenue from operating leases of $10.2 million and $30.0 million for the three and nine months ended September 30, 2024, respectively, and $11.0 million and $34.0 million for the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024 and December 31, 2023, the Company had $8.6 million and $9.3 million, respectively, of lease receivables with a majority due within 12 months or less from the respective balance sheet dates.

The components of certain equipment leased to third parties under operating leases, which are included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Machinery and equipment	$	56,367	$	56,186
Less: accumulated depreciation	29,427		29,134
Property, plant and equipment, net	$	26,940	$	27,052

Leases

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 Company has entered into operating leases as part of its ongoing operations. The corresponding lease costs are included in Cost of sales and Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.

Generally, leases for vehicles and equipment have a term of five years or less and buildings have a longer term of up to 35 years or more. The Company has previously guaranteed the residual value under certain of its equipment operating leases and could in the future, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded the residual value guarantees. The Company currently does not have any residual value guarantee amounts probable of being owed to a lessor, for financing leases or material agreements with related parties.

In March 2024, in anticipation of the Separation, the Company entered into a 60 months lease for a new corporate headquarters, with a lease term of August 1, 2024 through July 31, 2029. The new corporate headquarters, which is located in Bismarck, North Dakota, is for 16,188 square feet with average annual rent payments and average annual common area maintenance (“CAM”) charges totaling approximately $303 thousand and $102 thousand, respectively, for the duration of the lease.

The following table provides a summary of the Company's lease costs for operating leases:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Lease costs:
Operating lease cost	$	8,156	$	6,693	$	22,769	$	19,448
Variable lease cost(1)	319		296		917		892
Short-term lease cost(1)	27,965		25,889		75,703		72,803
Total lease costs	$	36,440	$	32,878	$	99,389	$	93,143

__________________

(1)Subsequent to the filing of the audited consolidated financial statements for the year ended December 31, 2023 and the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024 in the Form 10, the Company’s management determined that the Company incorrectly presented variable lease cost and short-term lease cost due to a clerical error when preparing the financial statements, including the related footnotes. The amounts in the preceding table have been revised to correct the impact of this classification error for the nine months ended September 30, 2024 and 2023. The classification error will be corrected in future filings for the historical periods. The reclassification error had no impact to results of operations, balance sheets, or cash flows for any of the periods within the Form 10.

The following is a summary of the lease terms and discount rates for operating leases:

	September 30, 2024		December 31, 2023
Weighted average remaining lease term	1.38 years		1.34 years
Weighted average discount rate	5.51	%	4.94	%

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

	Nine months ended September 30,
	2024		2023
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities	$	22,653	$	19,745
Right-of-use assets obtained in exchange for new operating lease liabilities	$	38,454	$	21,164

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 sheets was as follows:

	September 30, 2024
	(In thousands)
Remainder of 2024	$	7,963
2025	26,851
2026	18,202
2027	11,052
2028	6,087
Thereafter	6,043
Total	76,198
Less: discount	6,841
Total operating lease liabilities	$	69,357

The Company has entered into operating leases for land, buildings, equipment and office space with certain members of management and officers of the Company in connection with acquisitions of subsidiaries that were previously owned and operated by such management. Refer to Note 15 – Related-Party Transactions for additional information.

Lessor Accounting

The Company leases certain equipment to third parties. These leases are considered short-term operating leases with terms of less than 12 months. The Company recognizes revenue 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 Company recognized revenue from operating leases of $10.2 million and $30.0 million for the three and nine months ended September 30, 2024, respectively, and $11.0 million and $34.0 million for the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024 and December 31, 2023, the Company had $8.6 million and $9.3 million, respectively, of lease receivables with a majority due within 12 months or less from the respective balance sheet dates.

The components of certain equipment leased to third parties under operating leases, which are included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Machinery and equipment	$	56,367	$	56,186
Less: accumulated depreciation	29,427		29,134
Property, plant and equipment, net	$	26,940	$	27,052

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Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Prior to the Separation, Everus Construction had 1,000 common shares issued and outstanding. On October 31, 2024, as part of the Distribution, 50,972,059 shares of Everus common stock were issued and outstanding. Basic and diluted earnings per share for periods prior to the Separation and Distribution have been retrospectively adjusted to reflect the Everus shares outstanding on the Distribution date. For the three and nine months ended September 30, 2024 and 2023, there were no dilutive or anti-dilutive equity instruments as there were no Everus stock-based awards outstanding during those periods.

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of any dilutive securities.

Basic and diluted earnings per share were calculated as follows, based on a reconciliation of the weighted average common shares outstanding on a basic and diluted basis:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands, except per share amounts)
Net income	$	41,767	$	36,014	$	108,953	$	100,737
Weighted average common shares outstanding - basic	50,972		50,972		50,972		50,972
Weighted average common shares outstanding - diluted	50,972		50,972		50,972		50,972
Earnings per share - basic	$	0.82	$	0.71	$	2.14	$	1.98
Earnings per share - diluted	$	0.82	$	0.71	$	2.14	$	1.98

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Comprehensive income is the sum of net income as reported and other comprehensive income (loss). The Company's accumulated other comprehensive loss was comprised of gains (losses) on derivative instruments qualifying as hedges.

There were no changes in the components of accumulated other comprehensive loss for the three and nine months ended September 30, 2024 and the three months ended September 30, 2023. Therefore, the after-tax changes in the components of accumulated other comprehensive loss through the nine months ended September 30, 2023 were as follows:

	Net Unrealized Loss on Derivative Instruments Qualifying as Hedges		Total Accumulated Other Comprehensive Loss
	(In thousands)
As of December 31, 2022	$	(35)	$	(35)
Amounts reclassified from accumulated other comprehensive loss	(11)		(11)
Net current-period other comprehensive loss	(11)		(11)
As of March 31, 2023	(46)		(46)
Amounts reclassified from accumulated other comprehensive loss	46		46
Net current-period other comprehensive income	46		46
As of June 30, 2023	—		—
Amounts reclassified from accumulated other comprehensive loss	—		—
Net current-period other comprehensive income	—		—
As of September 30, 2023	$	—	$	—

There were no amounts reclassified out of accumulated other comprehensive loss into net income for the three and nine months ended September 30, 2024 and the three months ended September 30, 2023. Therefore, the following amounts were reclassified out of accumulated other comprehensive loss into net income for the nine months ended September 30, 2023:

	Nine months ended September 30, 2023		Location on Unaudited Condensed Consolidated Statement of Income
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	36	Interest expense
Reclassification tax benefit for loss on derivative instruments included in net income	(1)		Income taxes
Total reclassifications	$	35

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Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

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, 2024, income tax expense was $14.0 million and $37.6 million, respectively, resulting in an effective tax rate of 25.1% and 25.7%, respectively. The effective tax rates for the three and nine months ended September 30, 2024 differed from the 2024 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.

For the three and nine months ended September 30, 2023, income tax expense was $11.4 million and $32.8 million, respectively, resulting in an effective tax rate of 24.1% and 24.6%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 differed from the 2023 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 market performance as well as meals and entertainment expenses.

The effective tax rates for the three and nine months ended September 30, 2024 differed from the effective tax rates for the three and nine months ended September 30, 2023 due to changes in the Company’s permanent book-tax differences between those periods, specifically increased permanent add-back for meals and entertainment expenses.

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Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2024

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Cash expenditures for interest and income taxes were as follows:

	Nine months ended September 30,
	2024		2023
	(In thousands)
Interest paid	$	8,825	$	12,848
Income taxes paid	$	39,183	$	42,979

Non-cash investing transactions were as follows:

	September 30, 2024		September 30, 2023
	(In thousands)
Purchases of property, plant and equipment included in Accounts payable	$	293	$	314

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Business Segment Data

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Business Segment Data

Business Segment Data

The Company’s reportable segments are those that are based on the Company’s method of internal reporting and management of the business. The Company provides a full spectrum of construction services across most of the United States through two operating segments, which represent its two reportable segments:

Electrical & Mechanical: The E&M segment provides services for the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services.

Transmission & Distribution: The T&D segment provides services for the construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as design, manufacturing and distribution of overhead and underground transmission line construction equipment and tools.

These segments are reflective of how the Company’s chief executive officer, who is the Company’s Chief Operating Decision Maker (“CODM”), evaluates performance and allocates resources. The CODM analyzes and uses segment operating income as a profitability measure, which helps drive decision-making.

Information on the Company’s segments was as follows:

	Three months ended,
	September 30, 2024				September 30, 2023
	E&M		T&D		E&M		T&D
	(In thousands)
External operating revenues	$	534,741	$	226,244	$	514,378	$	203,028
Elimination operating revenues	2,154		2,260		2,555		1,400
Depreciation and amortization expense	1,618		4,753		1,557		4,412
Operating income	34,943		25,258		31,076		23,015
Interest expense (benefit)	(54)		982		1,391		1,367
Income tax expense	9,806		6,249		7,509		5,587
Capital expenditures*	$	2,701	$	15,256	$	823	$	6,583

__________________

*Capital expenditures for the three months ended September 30, 2024 and 2023 included noncash transactions for capital expenditure-related Accounts payable.

	Nine months ended,
	September 30, 2024				September 30, 2023
	E&M		T&D		E&M		T&D
	(In thousands)
External operating revenues	$	1,476,151	$	613,896	$	1,672,948	$	545,724
Elimination operating revenues	5,627		9,881		7,262		3,727
Depreciation and amortization expense	4,794		13,848		4,643		12,697
Operating income	100,771		60,082		100,268		51,314
Interest expense	117		3,030		4,645		3,239
Income tax expense	28,478		14,596		25,214		11,996
Capital expenditures*	$	5,641	$	28,726	$	3,714	$	23,983

__________________

*Capital expenditures for the nine months ended September 30, 2024 and 2023 included noncash transactions for capital expenditure-related Accounts payable.

All intercompany balances and transactions between the businesses comprising the Company have been eliminated in the unaudited condensed consolidated financial statements.

A reconciliation of reportable segment operating revenues to consolidated operating revenues was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
E&M operating revenue	$	536,895	$	516,933	$	1,481,778	$	1,680,210
T&D operating revenue	228,504		204,428		623,777		549,451
Total reportable segment operating revenues	765,399		721,361		2,105,555		2,229,661
Eliminations	(4,414)		(3,955)		(15,508)		(10,989)
Total consolidated operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672

No customer accounted for more than 10% of total Operating revenues for the three or nine months ended September 30, 2024. Operating revenues from a single customer accounted for 14.6% and 18.4% of total Operating revenues for the three and nine months ended September 30, 2023, respectively, which were included in the E&M segment.

No customer accounted for more than 10% of total trade receivables as of September 30, 2024. Trade receivables from a single customer accounted for 14.1% of total trade receivables as of December 31, 2023.

A reconciliation of reportable segment assets to consolidated assets was as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
E&M segment assets	$	828,937	$	712,691
T&D segment assets	426,404		376,780
Total reportable segment assets	1,255,341		1,089,471
Other assets	44,832		43,628
Elimination of receivables	(20,881)		(22,517)
Total consolidated assets	$	1,279,292	$	1,110,582

A reconciliation of reportable segment operating income to consolidated income before income taxes and income from equity method investments was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
E&M operating income	$	34,943	$	31,076	$	100,771	$	100,268
T&D operating income	25,258		23,015		60,082		51,314
Total reportable segment operating income	60,201		54,091		160,853		151,582
Other operating loss	(6,492)		(4,000)		(16,951)		(11,963)
Interest expense	2,851		4,596		8,823		13,483
Other income	1,071		1,208		3,683		2,705
Total consolidated income before income taxes and income from equity method investments	$	51,929	$	46,703	$	138,762	$	128,841

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2024

Deferred Compensation Arrangements [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Nonqualified Deferred Compensation Plans

In 2012, MDU Resources established a nonqualified deferred compensation plan for certain key management employees, including certain employees of the Company. In 2020, the plan was frozen to new participants and no

new Company contributions were made to the plan after December 31, 2020. Vesting for participants not fully vested was retained. To replace the plan originally established in 2012, a new nonqualified deferred compensation plan, with similar provisions, was adopted by MDU Resources in 2020 and became effective January 1, 2021. Expenses incurred by the Company under these plans were $0.4 million and $0.9 million for the three and nine months ended September 30, 2024, respectively. The Company recognized an immaterial benefit and an expense of $1.0 million for the three and nine months ended September 30, 2023, respectively.

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Commitment and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company is a party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries, which may include, but are not limited to, matters involving property damage; personal injury; and environmental, contractual, statutory and regulatory obligations. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue a liability when the likelihood of an incurrence of a loss is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss.

Litigation

As of September 30, 2024 and December 31, 2023, the Company accrued for litigation-related contingent liabilities that have not been discounted of $1.4 million and $0.1 million, respectively, in Other accrued liabilities on the unaudited condensed consolidated balance sheets. As of September 30, 2024 and December 31, 2023, the Company also recorded corresponding insurance claim receivables of $1.4 million and $0.1 million, respectively, related to the accrued liabilities in Prepayments and other current assets on the unaudited condensed consolidated balance sheets. The Company determined that the outcome of the outstanding litigation cases should be covered by the Company’s insurance carrier, and any amounts due related to the litigation are expected to be paid directly by the Company’s insurance carrier. As such, the contingency liability and corresponding insurance claim receivables as of September 30, 2024 and December 31, 2023, reflect the fact that the Company would not be responsible for amounts resulting from the litigation.

The Company will continue to monitor each matter and adjust accruals as necessary based on new information and further developments. Management believes that the outcomes with respect to probable and reasonably possible losses in excess of the amounts accrued, net of insurance recoveries, while uncertain, either cannot be estimated or will not have a material effect upon the Company’s financial position, results of operations or cash flows. Unless otherwise required by GAAP, legal costs are expensed as they are incurred and are included in Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.

Guarantees

In the normal course of business, the Company has surety bonds related to construction contracts of its subsidiaries. These bonds relate to certain public and private sector contracts to secure contractual performance, including completion of agreed upon contract terms, timing and price, payments to subcontractors and suppliers, and protection for customers from fraudulent practices. In the event a subsidiary of the Company does not fulfill a bonded obligation, the Company would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds are expected to expire within the next 12 months; however, the Company likely will continue to enter into surety bonds for its subsidiaries in the future. As of September 30, 2024 and December 31, 2023, the maximum potential amount of payments the Company would be required to make under the outstanding surety bonds was approximately $845.3 million and $299.9 million, respectively, which were not reflected on the unaudited condensed consolidated balance sheets.

The Company has outstanding guarantees to third parties that guarantee the performance of certain subsidiaries of the Company. These guarantees are related to contracts for contracting services. As of September 30, 2024 and December 31, 2023, the fixed maximum amounts guaranteed under these agreements aggregated to $557.5 million

and $341.4 million, respectively. The scheduled expiration of the maximum amounts guaranteed aggregate to $13.3 million for the remainder of 2024, $186.7 million in 2025, $312.6 million in 2026, $43.5 million in 2027, $1.0 million in 2028 and $0.4 million thereafter. There were no amounts outstanding under the previously mentioned guarantees and the maximum amounts guaranteed were not reflected on the unaudited condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023. However, in the event of default under these guarantee obligations, the Company would be required to make payments to satisfy its guarantees.

The Company also has outstanding letters of credit to third parties. As of September 30, 2024 and December 31, 2023, the fixed maximum amounts guaranteed under these letters of credit aggregated to $2.2 million and $0.2 million, respectively, all of which expire within the next 12 months. There were no amounts outstanding under the previously mentioned letters of credit as of September 30, 2024 or December 31, 2023. In the event of default under these letter-of-credit obligations, the Company would be obligated for reimbursement of payments made under the letters of credit.

In addition, the Company has issued guarantees to third parties related to the routine purchase of maintenance items, materials and lease obligations for which no fixed maximum amounts have been specified. These guarantees have no scheduled maturity date. In the event a subsidiary of the Company defaults under these obligations, the Company would be required to make payments to satisfy these guarantees. An immaterial amount of outstanding guarantees by the Company were reflected on the unaudited condensed consolidated balance sheets in Operating lease right-of-use assets, Current portion of operating lease liabilities and/or Operating lease liabilities as of September 30, 2024 and December 31, 2023.

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Related Party Transactions

9 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Related-Party Transactions

Allocation of Corporate Expenses

Centennial and MDU Resources allocated expenses for corporate services provided to the Company, including costs related to senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit, risk management and other shared services. The Company was allocated $4.9 million and $27.6 million for the three and nine months ended September 30, 2024, respectively, and $4.5 million and $21.5 million for the three and nine months ended September 30, 2023, respectively, for these corporate services. These expenses were allocated to the Company on the basis of direct usage where identifiable, with the remainder allocated on the basis of percent of total capital invested, the percent of total average cash management program borrowings at MDU Resources, the percent of total average commercial paper borrowings at Centennial or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. Some of the utilization factors considered include the following: number of employees paid and stated as cost per check; number of employees served; weighted factor of travel, managed units, national account spending, equipment and fleet acquisitions; purchase order dollars spent and purchase order line count; number of payments, vouchers or unclaimed property reports; labor hours; time tracked; and projected workload.

These cost allocations were a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. However, the allocations may not be indicative of the actual expenses that would have been incurred had the Company operated as a standalone company. Actual costs as a standalone company depend on a number of factors, including the chosen organizational structure, whether functions are outsourced or performed by Company employees, and strategic decisions made in areas such as selling and marketing, information technology and infrastructure. For an interim period of up to 20 months following the Separation, certain of these functions will continue to be provided by MDU Resources to the Company under a transition services agreement. Refer to Note 2 – Basis of Presentation and Note 16 – Subsequent Events for additional information.

Cash Management and Financing

Prior to the second quarter of 2023, Centennial had a commercial paper program and long-term borrowing arrangements in which the Company and certain of its subsidiaries participated. Centennial repaid all of its outstanding debt in the second quarter of 2023, and subsequently MDU Resources supported the Company’s borrowing needs through Centennial. The Company accounted for cash receipts and disbursements from MDU

Resources and Centennial, through related-party receivables and payables. The Company had related-party agreements in place with Centennial for the financing of its capital needs and Centennial had a related-party agreement in place with MDU Resources. The Company’s cash that it legally owns and was not included in the commercial paper program is classified as Cash and cash equivalents on the unaudited condensed consolidated balance sheets.

MDU Resources’ debt instruments contain restrictive and financial covenants and cross-default provisions. In order to borrow under the respective debt instruments and historically help finance the capital needs of the Company, MDU Resources must be in compliance with the applicable covenants and certain other conditions, all of which MDU Resources, as applicable, was in compliance with as of September 30, 2024. The borrowings under the commercial paper program with Centennial did not have stated maturities. MDU Resources committed to continue funding the Company through Centennial using its cash management program and revolving credit facility to allow the Company to meet its obligations as they became due prior to the Separation, thus the entire amount of Related-party notes payable was classified as noncurrent liabilities in the unaudited condensed consolidated balance sheets.

Related-party notes payable was as follows:

	Weighted Average Interest Rate as of September 30, 2024		September 30, 2024		December 31, 2023
			(In thousands)
Borrowing arrangements with MDU Resources	6.10	%	$	214,525	$	168,531
Total related-party notes payable			$	214,525	$	168,531

The Company was allocated interest based on borrowings from or lending to the cash management and financing program as well as the funding related to these agreements as described above. The related-party interest expense associated with the Company’s participation in the cash management and financing program was $3.0 million and $9.1 million for the three and nine months ended September 30, 2024, respectively, and $4.7 million and $13.5 million for the three and nine months ended September 30, 2023, respectively.

Other Related-Party Transactions

The Company provided contracting services and equipment sales and short-term rentals to MDU Resources and affiliated companies. The amount charged for these services was $0.3 million for each of the nine months ended September 30, 2024 and 2023. There were no related services for each of the three months ended September 30, 2024 and 2023. Related-party transactions that were expected to be settled in cash were included as related-party receivables or payables in the unaudited condensed consolidated balance sheets as Due from related-party, Due from related-party - noncurrent, Due to related-party or Related-party notes payable. Related-party transactions that were not expected to be settled in cash were included within Other paid-in capital in the unaudited condensed consolidated balance sheets. Refer to Note 1 – Background and Nature of Operations for additional information on the Company’s service operations.

The Company has entered into operating leases for land, buildings, equipment and office space with certain members of management and officers of the Company. Operating lease information for related-party leases was as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Operating lease right-of-use assets	$	68	$	136
Current portion of operating lease liabilities	68		90
Operating lease liabilities	$	—	$	46

Total rent expense related to related-party leases is included in Selling, general and administrative expenses on the unaudited condensed consolidated statements of income. Rent expense was $0.2 million and $0.5 million for each of the three and nine months ended September 30, 2024 and 2023. Refer to Note 7 – Leases for additional information.

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Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 31, 2024, the Separation was completed through MDU Resources’ Distribution of all of the outstanding shares of Everus common stock to holders of MDU Resources common stock. As a result of the Distribution, stockholders of MDU Resources received one share of the Company's common stock for every four shares of MDU Resources' common stock held at the close of business on October 21, 2024, the record date for the Distribution. Following the Separation, Everus is now a separate independent, publicly traded company under the ticker symbol “ECG” on the New York Stock Exchange.

In connection with the Separation, which was governed by the separation and distribution agreement, the Company entered into various other agreements with MDU Resources to effect the Separation and provide a framework for its relationship with MDU Resources after the Separation, including a transition services agreement, a tax matters agreement and an employee matters agreement. The separation and distribution agreement, the tax matters agreement and the employee matters agreement determine the allocation of assets and liabilities between the companies following the Separation for those respective areas and include any necessary indemnifications related to liabilities and obligations. The transition services agreement provides for the performance of certain services by MDU Resources for the benefit of the Company, or in some cases certain services provided by the Company for the benefit of MDU Resources, for a limited period of up to 20 months following the Separation.

On October 31, 2024, the Company entered into a five-year senior secured credit agreement (“the Credit Agreement”), whereby it has the capacity to incur indebtedness of up to $525.0 million, consisting of $300.0 million in aggregate principal amount of term loans and a $225.0 million revolving credit facility. Letters of credit are available under the Credit Agreement in an aggregate amount of up to $50.0 million. Everus drew $40.0 million under the revolving credit facility on the Separation date due to projected working capital needs. As of November 21, 2024, the date these financial statements were available to be issued, $40.0 million was still outstanding.

The Company received net proceeds of $332.1 million, net of $7.9 million of debt issuance costs. In connection with the borrowings, the Company used $290.0 million of the net proceeds of such indebtedness to repay its $230.0 million outstanding indebtedness with Centennial and to pay a $60.0 million dividend to MDU Resources, with the remaining $42.1 million being retained by the Company. After the Separation, the Company will no longer rely on MDU Resources’ central cash management and financing program and will instead rely on its own credit and financing arrangements.

The Company also entered into a captive insurance arrangement in order to manage its operational risk in connection with the Separation. The Company is in the process of assessing impacts that the captive insurance arrangement may have on its business, financial condition and/or financial results.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income	$ 41,767	$ 38,972	$ 28,214	$ 36,014	$ 38,649	$ 26,074	$ 108,953	$ 100,737

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

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. The accompanying unaudited condensed consolidated financial statements and footnotes 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 the Company operated on a standalone basis during the periods presented. However, the unaudited condensed consolidated financial statements do not necessarily reflect what the Company’s results of

operations, financial position and cash flows would have been had it operated as a separate, publicly traded company during the periods presented and may not be indicative of its future performance.

The accompanying unaudited condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“GAAP”). Pursuant to GAAP, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements included in the Company’s Form 10. The information includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the unaudited condensed consolidated financial statements and are of a normal recurring nature.

The unaudited condensed consolidated balance sheets reflect the assets and liabilities of Centennial that were specifically identifiable as being directly attributable to the Company for the periods presented prior to the Separation.

All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company were included in the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements also include allocated expenses for certain functions that were provided by MDU Resources and Centennial, including, but not limited to, certain general corporate expenses related to senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit, risk management and other shared services. These general corporate expenses were included in the unaudited condensed consolidated statements of income within Selling, general and administrative expenses.These expenses were allocated to the Company on the basis of direct usage where identifiable, with the remainder principally allocated on the basis of percent of total capital invested or other allocation methodologies that were considered to be a reasonable reflection of the utilization of the services provided to the benefits received. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party.

Earnings per share information has been retrospectively adjusted for all periods presented on the unaudited condensed consolidated statements of income to reflect the Distribution. Refer to Note 8 – Earnings Per Share for more information on the share count used in the earnings per share calculations.

Following the Separation, the Company now performs certain functions using its own resources or purchased services. For an interim period of up to 20 months following the Separation, however, certain functions will continue to be provided by MDU Resources under a transition services agreement.

Prior to the Separation, the Company historically participated in MDU Resources’ centralized cash management program through Centennial, including its overall financing arrangements. The Company had related-party agreements in place with Centennial for the financing of its capital needs, which are reflected as Related-party notes payable on the unaudited condensed consolidated balance sheets. Interest expense in the unaudited condensed consolidated statements of income reflected the allocation of interest on borrowing and funding associated with the related-party agreements. Following the Separation, the Company no longer participates in MDU Resources’ centralized cash management program. The Company has implemented its own centralized cash management program and has access to third-party credit facilities to fund day-to-day operations.

Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements were prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed consolidated financial statements.

Related-party transactions between the Company, MDU Resources, Centennial or other MDU Resources subsidiaries, for general operating activities, the Company's participation in MDU Resources’ centralized cash management program through Centennial, and intercompany debt, were included in the unaudited condensed consolidated financial statements. These related-party transactions were historically settled in cash and were reflected in the unaudited condensed consolidated balance sheets as Due from related-party, Due from related-party - noncurrent, Due to related-party or Related-party notes payable. The aggregate net effect of general related-party operating activities was reflected in the unaudited condensed consolidated statements of cash flows within operating activities. The effects of the Company’s participation in MDU Resources’ centralized cash management program and intercompany debt arrangements were reflected in the unaudited condensed consolidated statements of cash flows within investing and financing activities.

New Accounting Standards

New Accounting Standards

Changes to GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs.

The following table provides a brief description of the accounting pronouncements applicable to the Company and the potential impact on its financial statements and/or disclosures:

Standard	Description	Effective Date	Impact on Financial Statements/Disclosures
Recently adopted ASUs
ASU 2022-06 – Reference Rate Reform (Topic 848): Deferral of Sunset Date	In December 2022, the FASB included a sunset provision within ASC 848 based on expectations of when the London Inter-Bank Offered Rate (“LIBOR”) would cease to be published. At the time ASU 2020-04 was issued, the UK Financial Conduct Authority had established its intent to cease overnight tenors of LIBOR after December 31, 2021. In March 2021, the UK Financial Conduct Authority announced that the intended cessation date of the overnight tenors of LIBOR would be June 30, 2023, which is beyond the current sunset date of ASC 848. The amendments in this Update defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in ASC 848. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must have identified a replacement rate by June 30, 2023. New contracts will incorporate a new reference rate, which includes the Secured Overnight Financing Rate (“SOFR”).	Effective upon issuance (December 21, 2022) through December 31, 2024.	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR. The Company determined the adoption of the guidance did not have a material impact on its unaudited condensed consolidated financial statements.

Standard	Description	Effective Date	Impact on Financial Statements/Disclosures
Recently issued ASUs not yet adopted
ASU 2023-05 - Business Combinations - Joint Venture Formations - Recognition and Initial Measurement	In August 2023, the FASB issued guidance on accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statement in order to provide decision useful information to investors and other allocators of capital (collectively investors) in a joint venture's financial statements and reduce diversity in practice. The new basis of accounting will require that a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with the exceptions to fair value measurement that are consistent with the business combinations guidance). A joint venture that was formed before January 1, 2025, may elect to apply the guidance retrospectively if it has sufficient information.	Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.	The Company is currently evaluating the impact the guidance will have on its interim and annual disclosures for the year ended December 31, 2025.
ASU 2023-07 - Segment Reporting - Improvements to Reportable Segment Disclosures	In November 2023, the FASB issued guidance on improving financial reporting by requiring disclosure on incremental segment information, primarily through enhanced disclosures about significant segment expenses on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses.	Effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with prior periods disclosed in the period of adoption.	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2024, and future interim periods.
ASU 2023-09 - Income Taxes - Improvements to Income Tax Disclosures	The FASB issued guidance to address investors’ requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income tax paid information and effectiveness of income tax disclosures.	Effective for fiscal years beginning after December 15, 2024.	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2025.

Use of Estimates

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the unaudited condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; property depreciable lives; tax provisions; revenue recognized using the cost-to-cost measure of progress for contracts; expected credit losses; loss contingencies; costs on construction contracts; unbilled revenues; actuarially determined benefit costs; lease classification; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation. As additional information becomes available, or actual

amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.

Revenue from Contracts with Customers

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

As part of the adoption of Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.

Contract Estimates and Changes in Estimates

Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management's estimates of additional contract revenues that have been earned and are probable of collection.

Fair Value Measurements

The Company’s Level 2 money market funds are included as a part of Investments on the unaudited condensed consolidated balance sheets and are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets or using other known sources, including pricing from outside sources. The estimated fair value of the Company’s Level 2 insurance contracts is based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data.

Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in different estimates of fair value.

The estimated fair values of the Company’s cash and cash equivalents, receivables, accounts payable and other accrued liabilities approximate their carrying value due to the short-term maturities of these instruments.

The carrying value of the Company’s long-term debt, classified as related-party notes payable, approximates fair value based on a comparison with current prevailing market rates for borrowings of similar risks and maturities.

Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of any dilutive securities.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Receivables, Net

Receivables consist primarily of trade receivables from the sale of goods and services net of expected credit losses. Receivables, net is summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Trade receivables:
Completed contracts	$	33,425	$	42,467
Contracts in progress	532,513		409,872
Retention receivables	67,279		84,474
Other	6,214		5,254
Receivables, gross	639,431		542,067
Less: expected credit losses	7,300		7,967
Receivables, net	$	632,131	$	534,100

Schedule of Receivables Current Excepted Credit Losses

Details of the Company's expected credit losses, disclosed within Receivables, net for the respective periods presented below, were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	7,257	$	4,717	$	7,967	$	2,161
Current expected credit loss provision	83		1,734		(51)		4,385
Less: write-offs charged against the allowance	84		27		672		181
Credit loss recoveries collected	44		—		56		59
Balance at end of period	$	7,300	$	6,424	$	7,300	$	6,424

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Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of the Disaggregation of Revenue

The following tables present revenue disaggregated by contract type:

Three months ended September 30, 2024	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	326,972	$	106,936	$	433,908
Unit-price	15,031		46,848		61,879
Cost reimbursable*	194,892		74,720		269,612
Total contract revenues	536,895		228,504		765,399
Eliminations	(2,154)		(2,260)		(4,414)
Total operating revenues	$	534,741	$	226,244	$	760,985

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Three months ended September 30, 2023	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	272,042	$	92,607	$	364,649
Unit-price	18,401		29,590		47,991
Cost reimbursable*	226,490		82,231		308,721
Total contract revenues	516,933		204,428		721,361
Eliminations	(2,555)		(1,400)		(3,955)
Total operating revenues	$	514,378	$	203,028	$	717,406

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Nine months ended September 30, 2024	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	966,035	$	282,582	$	1,248,617
Unit-price	49,254		118,016		167,270
Cost reimbursable*	466,489		223,179		689,668
Total contract revenues	1,481,778		623,777		2,105,555
Eliminations	(5,627)		(9,881)		(15,508)
Total operating revenues	$	1,476,151	$	613,896	$	2,090,047

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

Nine months ended September 30, 2023	Electrical & Mechanical		Transmission & Distribution		Total
	(In thousands)
Fixed-price	$	784,334	$	261,457	$	1,045,791
Unit-price	62,488		62,401		124,889
Cost reimbursable*	833,388		225,593		1,058,981
Total contract revenues	1,680,210		549,451		2,229,661
Eliminations	(7,262)		(3,727)		(10,989)
Total operating revenues	$	1,672,948	$	545,724	$	2,218,672

__________________

*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.

The following table presents revenue disaggregated by customer type:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Commercial	$	327,403	$	266,587	$	860,088	$	947,792
Industrial	76,493		116,013		236,349		367,331
Institutional	93,390		76,276		274,916		195,178
Renewables	10,414		19,244		27,551		43,947
Service & other	29,195		38,813		82,874		125,962
Total Electrical & Mechanical	536,895		516,933		1,481,778		1,680,210
Utility	206,669		188,680		559,922		508,850
Transportation	21,835		15,748		63,855		40,601
Total Transmission & Distribution	228,504		204,428		623,777		549,451
Eliminations	(4,414)		(3,955)		(15,508)		(10,989)
Total operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672

Summary of Uncompleted Contracts and Contract Assets and Contract Liabilities

Costs, estimated earnings and billings on uncompleted contracts are summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Costs incurred on uncompleted contracts	$	6,399,940	$	6,390,641
Estimated earnings	875,983		840,994
Costs and estimated earnings on uncompleted contracts	7,275,923		7,231,635
Less: billings to date	7,323,483		7,271,337
Net contract liabilities	$	(47,560)	$	(39,702)

Contract assets and contract liabilities consisted of the following:

	September 30, 2024		December 31, 2023
	(In thousands)
Unbilled revenue	$	174,102	$	158,529
Contract assets	$	174,102	$	158,529
Deferred revenue	$	220,478	$	196,686
Accrued loss provision	1,184		1,545
Contract liabilities	$	221,662	$	198,231

The following table presents the opening and closing balances of contract assets and contract liabilities as of:

	September 30, 2024						December 31, 2023
	Contract Assets		Contract Liabilities		Net Contract Liabilities		Contract Assets		Contract Liabilities		Net Contract Liabilities
	(In thousands)
Balance at beginning of period	$	158,529	$	(198,231)	$	(39,702)	$	153,907	$	(166,189)	$	(12,282)
Change during period	15,573		(23,431)		(7,858)		4,622		(32,042)		(27,420)
Balance at end of period	$	174,102	$	(221,662)	$	(47,560)	$	158,529	$	(198,231)	$	(39,702)

Summary of Remaining Performance Obligations and Expected Revenue Recognition

The table below shows additional information regarding the Company’s remaining performance obligations as of September 30, 2024, including an estimate of when the Company expects to recognize its remaining performance obligations as revenues:

	Within 12 months		Greater than 12 months
	(In thousands)
Remaining performance obligations:
Electrical & Mechanical	$	1,913,264	$	654,607
Transmission & Distribution	270,415		46,547
Total	$	2,183,679	$	701,154

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Other Intangible Assets

Other amortizable intangible assets were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Noncompete agreements	$	—	$	292
Less: accumulated amortization	—		292
Net noncompete agreements	—		—
Customer relationships	10,450		10,450
Less: accumulated amortization	9,984		8,446
Net customer relationships	466		2,004
Total	$	466	$	2,004

Schedule of Amortization Expense for Finite-Lived Intangible Assets

Future amortization expense for finite-lived intangible assets as of September 30, 2024 is estimated to be as follows:

	Remainder of 2024		2025
	(In thousands)
Amortization expense	$	349	$	117

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets Measured on a Recurring Basis

The Company’s assets measured at fair value on a recurring basis were as follows:

	Fair Value Measurements as of September 30, 2024, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2024
	(In thousands)
Assets:
Insurance contracts	$	—	$	4,448	$	—	$	4,448
Total assets measured at fair value	$	—	$	4,448	$	—	$	4,448

	Fair Value Measurements as of December 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2023
	(In thousands)
Assets:
Money market funds	$	—	$	1,725	$	—	$	1,725
Insurance contracts	—		5,005		—		5,005
Total assets measured at fair value	$	—	$	6,730	$	—	$	6,730

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Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Summary of Operating Leases, Including Lease Terms, Discount Rates and Supplemental Cash Flow Information

The following table provides a summary of the Company's lease costs for operating leases:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
Lease costs:
Operating lease cost	$	8,156	$	6,693	$	22,769	$	19,448
Variable lease cost(1)	319		296		917		892
Short-term lease cost(1)	27,965		25,889		75,703		72,803
Total lease costs	$	36,440	$	32,878	$	99,389	$	93,143

__________________

(1)Subsequent to the filing of the audited consolidated financial statements for the year ended December 31, 2023 and the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024 in the Form 10, the Company’s management determined that the Company incorrectly presented variable lease cost and short-term lease cost due to a clerical error when preparing the financial statements, including the related footnotes. The amounts in the preceding table have been revised to correct the impact of this classification error for the nine months ended September 30, 2024 and 2023. The classification error will be corrected in future filings for the historical periods. The reclassification error had no impact to results of operations, balance sheets, or cash flows for any of the periods within the Form 10.

The following is a summary of the lease terms and discount rates for operating leases:

	September 30, 2024		December 31, 2023
Weighted average remaining lease term	1.38 years		1.34 years
Weighted average discount rate	5.51	%	4.94	%

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

	Nine months ended September 30,
	2024		2023
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities	$	22,653	$	19,745
Right-of-use assets obtained in exchange for new operating lease liabilities	$	38,454	$	21,164

Reconciliation of Future Undiscounted Cash Flows to Operating Lease Liabilities

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 sheets was as follows:

	September 30, 2024
	(In thousands)
Remainder of 2024	$	7,963
2025	26,851
2026	18,202
2027	11,052
2028	6,087
Thereafter	6,043
Total	76,198
Less: discount	6,841
Total operating lease liabilities	$	69,357

Components of Certain Equipment Leased to Third Parties Under Operating Leases

The components of certain equipment leased to third parties under operating leases, which are included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Machinery and equipment	$	56,367	$	56,186
Less: accumulated depreciation	29,427		29,134
Property, plant and equipment, net	$	26,940	$	27,052

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings per Share

Basic and diluted earnings per share were calculated as follows, based on a reconciliation of the weighted average common shares outstanding on a basic and diluted basis:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands, except per share amounts)
Net income	$	41,767	$	36,014	$	108,953	$	100,737
Weighted average common shares outstanding - basic	50,972		50,972		50,972		50,972
Weighted average common shares outstanding - diluted	50,972		50,972		50,972		50,972
Earnings per share - basic	$	0.82	$	0.71	$	2.14	$	1.98
Earnings per share - diluted	$	0.82	$	0.71	$	2.14	$	1.98

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Schedule of After-Tax Changes in Components of AOCL

Therefore, the after-tax changes in the components of accumulated other comprehensive loss through the nine months ended September 30, 2023 were as follows:

	Net Unrealized Loss on Derivative Instruments Qualifying as Hedges		Total Accumulated Other Comprehensive Loss
	(In thousands)
As of December 31, 2022	$	(35)	$	(35)
Amounts reclassified from accumulated other comprehensive loss	(11)		(11)
Net current-period other comprehensive loss	(11)		(11)
As of March 31, 2023	(46)		(46)
Amounts reclassified from accumulated other comprehensive loss	46		46
Net current-period other comprehensive income	46		46
As of June 30, 2023	—		—
Amounts reclassified from accumulated other comprehensive loss	—		—
Net current-period other comprehensive income	—		—
As of September 30, 2023	$	—	$	—

Summary of Reclassifications

Therefore, the following amounts were reclassified out of accumulated other comprehensive loss into net income for the nine months ended September 30, 2023:

	Nine months ended September 30, 2023		Location on Unaudited Condensed Consolidated Statement of Income
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	36	Interest expense
Reclassification tax benefit for loss on derivative instruments included in net income	(1)		Income taxes
Total reclassifications	$	35

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Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2024

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

Cash expenditures for interest and income taxes were as follows:

	Nine months ended September 30,
	2024		2023
	(In thousands)
Interest paid	$	8,825	$	12,848
Income taxes paid	$	39,183	$	42,979

Non-cash investing transactions were as follows:

	September 30, 2024		September 30, 2023
	(In thousands)
Purchases of property, plant and equipment included in Accounts payable	$	293	$	314

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Business Segment Data (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Information on the Company’s segments was as follows:

	Three months ended,
	September 30, 2024				September 30, 2023
	E&M		T&D		E&M		T&D
	(In thousands)
External operating revenues	$	534,741	$	226,244	$	514,378	$	203,028
Elimination operating revenues	2,154		2,260		2,555		1,400
Depreciation and amortization expense	1,618		4,753		1,557		4,412
Operating income	34,943		25,258		31,076		23,015
Interest expense (benefit)	(54)		982		1,391		1,367
Income tax expense	9,806		6,249		7,509		5,587
Capital expenditures*	$	2,701	$	15,256	$	823	$	6,583

__________________

*Capital expenditures for the three months ended September 30, 2024 and 2023 included noncash transactions for capital expenditure-related Accounts payable.

	Nine months ended,
	September 30, 2024				September 30, 2023
	E&M		T&D		E&M		T&D
	(In thousands)
External operating revenues	$	1,476,151	$	613,896	$	1,672,948	$	545,724
Elimination operating revenues	5,627		9,881		7,262		3,727
Depreciation and amortization expense	4,794		13,848		4,643		12,697
Operating income	100,771		60,082		100,268		51,314
Interest expense	117		3,030		4,645		3,239
Income tax expense	28,478		14,596		25,214		11,996
Capital expenditures*	$	5,641	$	28,726	$	3,714	$	23,983

__________________

*Capital expenditures for the nine months ended September 30, 2024 and 2023 included noncash transactions for capital expenditure-related Accounts payable.

Reconciliation of Revenue from Segments to Consolidated

A reconciliation of reportable segment operating revenues to consolidated operating revenues was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
E&M operating revenue	$	536,895	$	516,933	$	1,481,778	$	1,680,210
T&D operating revenue	228,504		204,428		623,777		549,451
Total reportable segment operating revenues	765,399		721,361		2,105,555		2,229,661
Eliminations	(4,414)		(3,955)		(15,508)		(10,989)
Total consolidated operating revenues	$	760,985	$	717,406	$	2,090,047	$	2,218,672

Reconciliation of Assets from Segments to Consolidated

A reconciliation of reportable segment assets to consolidated assets was as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
E&M segment assets	$	828,937	$	712,691
T&D segment assets	426,404		376,780
Total reportable segment assets	1,255,341		1,089,471
Other assets	44,832		43,628
Elimination of receivables	(20,881)		(22,517)
Total consolidated assets	$	1,279,292	$	1,110,582

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

A reconciliation of reportable segment operating income to consolidated income before income taxes and income from equity method investments was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
	(In thousands)
E&M operating income	$	34,943	$	31,076	$	100,771	$	100,268
T&D operating income	25,258		23,015		60,082		51,314
Total reportable segment operating income	60,201		54,091		160,853		151,582
Other operating loss	(6,492)		(4,000)		(16,951)		(11,963)
Interest expense	2,851		4,596		8,823		13,483
Other income	1,071		1,208		3,683		2,705
Total consolidated income before income taxes and income from equity method investments	$	51,929	$	46,703	$	138,762	$	128,841

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Related-party notes payable was as follows:

	Weighted Average Interest Rate as of September 30, 2024		September 30, 2024		December 31, 2023
			(In thousands)
Borrowing arrangements with MDU Resources	6.10	%	$	214,525	$	168,531
Total related-party notes payable			$	214,525	$	168,531

Operating lease information for related-party leases was as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Operating lease right-of-use assets	$	68	$	136
Current portion of operating lease liabilities	68		90
Operating lease liabilities	$	—	$	46

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Background and Nature of Operations - Narrative (Details)	9 Months Ended
	Sep. 30, 2024 segment $ / shares shares	Oct. 31, 2024 $ / shares shares	Oct. 30, 2024 shares	Dec. 31, 2023 $ / shares shares
Product Information [Line Items]
Common stock, issued (in shares)	1,000			1,000
Common stock, outstanding (in shares)	1,000			1,000
Par value (in dollars per share) | $ / shares	$ 1			$ 1
Number of operating segments | segment	2
Number of reportable segments | segment	2
Subsequent event
Product Information [Line Items]
Common stock, issued (in shares)		50,972,059	1,000
Common stock, outstanding (in shares)		50,972,059	1,000
Par value (in dollars per share) | $ / shares		$ 0.01

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Basis of Presentation - Narrative (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Oct. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Product Information [Line Items]
General corporate expenses					$ 21.5
Subsequent event
Product Information [Line Items]
Transition services agreement period	20 months
Related party
Product Information [Line Items]
General corporate expenses		$ 4.9	$ 4.5	$ 27.6	$ 21.5

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Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Product Information [Line Items]
Retention receivables	$ 67,279	$ 84,474
Other	6,214	5,254
Receivables, gross	639,431	542,067
Less: expected credit losses	7,300	7,967
Completed contracts
Product Information [Line Items]
Trade receivables	33,425	42,467
Contracts in progress
Product Information [Line Items]
Trade receivables	532,513	409,872
Nonrelated party
Product Information [Line Items]
Receivables, net	$ 632,131	$ 534,100

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Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Product Information [Line Items]
Receivables past due 90 days or more	$ 74.5	$ 42.0
Manufactured equipment held for resale and/or rental
Product Information [Line Items]
Inventories	40.6	37.2
Materials and supplies
Product Information [Line Items]
Materials and supplies	$ 6.3	$ 5.5

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Summary of Significant Accounting Policies - Schedule of Receivables Current Expected Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 7,257	$ 4,717	$ 7,967	$ 2,161
Current expected credit loss provision	83	1,734	(51)	4,385
Less: write-offs charged against the allowance	84	27	672	181
Credit loss recoveries collected	44	0	56	59
Balance at end of period	$ 7,300	$ 6,424	$ 7,300	$ 6,424

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Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Unexecuted change orders	$ 37,800		$ 37,800		$ 57,300
Change orders not approved by the customer	233,100		233,100		187,400
Claim position	42,700		42,700		42,700
Loss provision	1,184		1,184		1,545
Remaining outstanding billings on large project	31,200		31,200
Operating revenue recognized	47,400	$ 6,300	167,000	$ 162,600
Net increase in revenues from performance obligations satisfied in prior periods	25,800	$ 20,200	71,500	$ 41,400
Remaining performance obligation	2,880,000		2,880,000		2,010,000
Retention receivables	$ 100,100		$ 100,100		$ 105,800
Percentage of retainage outstanding expected to be collected within the next twelve months	67.00%		67.00%

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Revenue from Contracts with Customers - Schedule of the Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Operating revenue	$ 760,985	$ 717,406	$ 2,090,047	$ 2,218,672
Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	765,399	721,361	2,105,555	2,229,661
Eliminations
Disaggregation of Revenue [Line Items]
Operating revenue	(4,414)	(3,955)	(15,508)	(10,989)
Fixed-price | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	433,908	364,649	1,248,617	1,045,791
Unit-price | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	61,879	47,991	167,270	124,889
Cost reimbursable | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	269,612	308,721	689,668	1,058,981
Electrical & Mechanical
Disaggregation of Revenue [Line Items]
Operating revenue	534,741	514,378	1,476,151	1,672,948
Electrical & Mechanical | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	536,895	516,933	1,481,778	1,680,210
Electrical & Mechanical | Eliminations
Disaggregation of Revenue [Line Items]
Operating revenue	(2,154)	(2,555)	(5,627)	(7,262)
Electrical & Mechanical | Commercial | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	327,403	266,587	860,088	947,792
Electrical & Mechanical | Industrial | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	76,493	116,013	236,349	367,331
Electrical & Mechanical | Institutional | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	93,390	76,276	274,916	195,178
Electrical & Mechanical | Renewables | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	10,414	19,244	27,551	43,947
Electrical & Mechanical | Service & other | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	29,195	38,813	82,874	125,962
Electrical & Mechanical | Fixed-price | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	326,972	272,042	966,035	784,334
Electrical & Mechanical | Unit-price | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	15,031	18,401	49,254	62,488
Electrical & Mechanical | Cost reimbursable | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	194,892	226,490	466,489	833,388
Transmission & Distribution
Disaggregation of Revenue [Line Items]
Operating revenue	226,244	203,028	613,896	545,724
Transmission & Distribution | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	228,504	204,428	623,777	549,451
Transmission & Distribution | Eliminations
Disaggregation of Revenue [Line Items]
Operating revenue	(2,260)	(1,400)	(9,881)	(3,727)
Transmission & Distribution | Utility | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	206,669	188,680	559,922	508,850
Transmission & Distribution | Transportation | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	21,835	15,748	63,855	40,601
Transmission & Distribution | Fixed-price | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	106,936	92,607	282,582	261,457
Transmission & Distribution | Unit-price | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	46,848	29,590	118,016	62,401
Transmission & Distribution | Cost reimbursable | Operating segments
Disaggregation of Revenue [Line Items]
Operating revenue	$ 74,720	$ 82,231	$ 223,179	$ 225,593

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Revenue from Contracts with Customers - Summary of Uncompleted Contracts and Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Costs incurred on uncompleted contracts	$ 6,399,940	$ 6,390,641
Estimated earnings	875,983	840,994
Costs and estimated earnings on uncompleted contracts	7,275,923	7,231,635
Less: billings to date	7,323,483	7,271,337
Net contract assets (liabilities)	$ (47,560)	$ (39,702)	$ (12,282)

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Revenue from Contracts with Customers - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Contract assets
Unbilled revenue	$ 174,102	$ 158,529
Contract assets	174,102	158,529	$ 153,907
Contract liabilities
Deferred revenue	220,478	196,686
Accrued loss provision	1,184	1,545
Contract liabilities	$ 221,662	$ 198,231	$ 166,189

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Revenue from Contracts with Customers - Contract Assets and Liabilities Rollforward (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Contract Assets
Balance at beginning of period	$ 158,529	$ 153,907	$ 153,907
Change during period	15,573	44,802	4,622
Balance at end of period	174,102		158,529
Contract Liabilities
Balance at beginning of period	(198,231)	(166,189)	(166,189)
Change during period	(23,431)	(12,566)	(32,042)
Balance at end of period	(221,662)		(198,231)
Net Contract Assets (Liabilities)
Balance at beginning of period	(39,702)	$ (12,282)	(12,282)
Change during period	(7,858)		(27,420)
Balance at end of period	$ (47,560)		$ (39,702)

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Revenue from Contracts with Customers - Summary of Remaining Performance Obligations and Expected Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 2,880,000	$ 2,010,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 2,183,679
Performance obligation satisfaction period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Electrical & Mechanical
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,913,264
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Transmission & Distribution
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	270,415
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 701,154
Performance obligation satisfaction period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | Electrical & Mechanical
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 654,607
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | Transmission & Distribution
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 46,547

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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill [Line Items]
Goodwill	$ 143,224,000		$ 143,224,000		$ 143,224,000
Goodwill impairment	0	$ 0	0	$ 0
Amortization expense for finite-lived intangible assets	500,000	500,000	1,500,000	1,600,000
Impairments of finite-lived intangible assets	0	$ 0	0	$ 0
Electrical & Mechanical
Goodwill [Line Items]
Goodwill	115,900,000		115,900,000		115,900,000
Transmission & Distribution
Goodwill [Line Items]
Goodwill	$ 27,300,000		$ 27,300,000		$ 27,300,000

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Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible assets, less accumulated amortization	$ 9,984	$ 8,738
Intangible assets, net (excluding goodwill)	466	2,004
Noncompete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	0	292
Intangible assets, less accumulated amortization	0	292
Finite-Lived Intangible Assets, Net	0	0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	10,450	10,450
Intangible assets, less accumulated amortization	9,984	8,446
Finite-Lived Intangible Assets, Net	$ 466	$ 2,004

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Goodwill and Other Intangible Assets - Schedule of Amortization Expense for Finite-Lived Intangible Assets (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 349
2025	$ 117

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain (loss) on investments	$ 200	$ 0	$ 531	$ 0
Fair value, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value	4,448		4,448		$ 5,005
Insurance contracts | Fair value, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value	$ 4,400		$ 4,400		$ 5,000

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Fair Value Measurements - Schedule of Assets Measured on a Recurring Basis (Details) - Fair value, recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Insurance contracts	$ 4,448	$ 5,005
Money market funds		1,725
Total assets measured at fair value	4,448	6,730
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Insurance contracts	0	0
Money market funds		0
Total assets measured at fair value	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Insurance contracts	4,448	5,005
Money market funds		1,725
Total assets measured at fair value	4,448	6,730
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Insurance contracts	0	0
Money market funds		0
Total assets measured at fair value	$ 0	$ 0

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Leases - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 31, 2024 USD ($) ft²	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Revenue recognized from operating leases		$ 10,200	$ 11,000	$ 30,000	$ 34,000
Lease receivables		$ 8,600		$ 8,600		$ 9,300
Bismarck, ND headquarters
Lessee, Lease, Description [Line Items]
Operating lease term	60 months
Area of real estate property (in square feet) | ft²	16,188
Average annual rent payments	$ 303
Average annual common area maintenance charges	$ 102
Vehicles | Maximum
Lessee, Lease, Description [Line Items]
Operating lease term		5 years		5 years
Equipment | Maximum
Lessee, Lease, Description [Line Items]
Operating lease term		5 years		5 years
Building | Maximum
Lessee, Lease, Description [Line Items]
Operating lease term		35 years		35 years

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Leases - Summary of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 8,156	$ 6,693	$ 22,769	$ 19,448
Variable lease cost	319	296	917	892
Short-term lease cost	27,965	25,889	75,703	72,803
Total lease costs	$ 36,440	$ 32,878	$ 99,389	$ 93,143

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Leases - Lease Term, Discount Rate and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Leases [Abstract]
Weighted average remaining lease term	1 year 4 months 17 days		1 year 4 months 2 days
Weighted average discount rate	5.51%		4.94%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities	$ 22,653	$ 19,745
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 38,454	$ 21,164

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Leases - Reconciliation of Future Undiscounted Cash Flows to Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Leases [Abstract]
Remainder of 2024	$ 7,963
2025	26,851
2026	18,202
2027	11,052
2028	6,087
Thereafter	6,043
Total	76,198
Less: discount	6,841
Total operating lease liabilities	$ 69,357

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Leases - Components of Certain Equipment Leased to Third Parties Under Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Machinery and equipment	$ 56,367	$ 56,186
Less: accumulated depreciation	29,427	29,134
Property, plant and equipment, net	$ 26,940	$ 27,052

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Earnings Per Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Oct. 31, 2024	Oct. 30, 2024	Dec. 31, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common stock, issued (in shares)	1,000		1,000				1,000
Common stock, outstanding (in shares)	1,000		1,000				1,000
Anti-dilutive securities excluded for the computation of earnings per share (in shares)	0	0	0	0
Everus stock-based awards outstanding (in shares)	0	0	0	0
Subsequent event
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common stock, issued (in shares)					50,972,059	1,000
Common stock, outstanding (in shares)					50,972,059	1,000

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Earnings Per Share - Schedule of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended						9 Months Ended
		Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net income		$ 41,767	$ 38,972	$ 28,214	$ 36,014	$ 38,649	$ 26,074	$ 108,953	$ 100,737
Weighted average common shares outstanding - basic (in shares)	[1]	50,972,000			50,972,000			50,972,000	50,972,000
Weighted average common shares outstanding - diluted (in shares)	[1]	50,972,000			50,972,000			50,972,000	50,972,000
Earnings per share - basic (in dollars per share)		$ 0.82			$ 0.71			$ 2.14	$ 1.98
Earnings per share - diluted (in dollars per share)		$ 0.82			$ 0.71			$ 2.14	$ 1.98

[1]     Prior to the Separation (as defined below), Everus Construction had 1,000 common shares issued and outstanding. On October 31, 2024, as part of the Distribution (as defined below), 50,972,059 shares of Everus common stock were issued and outstanding. Basic and diluted earnings per share for periods prior to the Separation and Distribution have been retrospectively adjusted to reflect the Everus shares outstanding on the Distribution date. Refer to Note 1 and Note 2 for more information.

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Accumulated Other Comprehensive Loss - Schedule of After-Tax Changes in Components of AOCL (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 489,991	$ 420,687	$ 394,595	$ 382,247	$ 448,850	$ 382,247
Amounts reclassified from accumulated other comprehensive loss		0	46	(11)
Net current-period other comprehensive income (loss)	0	0	46	(11)	0	35
Ending balance	$ 453,303	444,396	420,687	394,595	$ 453,303	444,396
Total Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		0	(46)	(35)		(35)
Net current-period other comprehensive income (loss)			46	(11)
Ending balance		0	0	(46)		0
Net Unrealized Loss on Derivative Instruments Qualifying as Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		0	(46)	(35)		(35)
Amounts reclassified from accumulated other comprehensive loss		0	46	(11)
Net current-period other comprehensive income (loss)		0	46	(11)
Ending balance		$ 0	$ 0	$ (46)		$ 0

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Accumulated Other Comprehensive Loss - Summary of Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	$ 2,851			$ 4,596			$ 8,823	$ 13,483
Income taxes	13,995			11,423			37,606	32,822
Net income	$ 41,767	$ 38,972	$ 28,214	$ 36,014	$ 38,649	$ 26,074	$ 108,953	100,737
Reclassification out of accumulated other comprehensive income | Reclassification adjustment for loss on derivative instruments included in net income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense								36
Income taxes								(1)
Net income								$ 35

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income taxes	$ 13,995	$ 11,423	$ 37,606	$ 32,822
Effective income tax rate (as a percent)	25.10%	24.10%	25.70%	24.60%

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Supplemental Cash Flow Information - Summary of Supplemental Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Supplemental Cash Flow Information [Abstract]
Interest paid	$ 8,825	$ 12,848
Income taxes paid	39,183	42,979
Purchases of property, plant and equipment included in Accounts payable	$ 293	$ 314

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Business Segment Data - Narrative (Details) - segment	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Number of operating segments		2
Number of reportable segments		2
Single customer | Customer concentration risk | Operating revenue
Segment Reporting Information [Line Items]
Concentration risk (as a percentage)	14.60%		18.40%
Single customer | Customer concentration risk | Trade receivables
Segment Reporting Information [Line Items]
Concentration risk (as a percentage)				14.10%

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Business Segment Data - Summary of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Operating revenue	$ (760,985)	$ (717,406)	$ (2,090,047)	$ (2,218,672)
Operating income	53,709	50,091	143,902	139,619
Interest expense (benefit)	2,851	4,596	8,823	13,483
Income tax expense	13,995	11,423	37,606	32,822
Operating segments
Segment Reporting Information [Line Items]
Operating revenue	(765,399)	(721,361)	(2,105,555)	(2,229,661)
Operating income	60,201	54,091	160,853	151,582
Eliminations
Segment Reporting Information [Line Items]
Operating revenue	4,414	3,955	15,508	10,989
Electrical & Mechanical
Segment Reporting Information [Line Items]
Operating revenue	(534,741)	(514,378)	(1,476,151)	(1,672,948)
Electrical & Mechanical | Operating segments
Segment Reporting Information [Line Items]
Operating revenue	(536,895)	(516,933)	(1,481,778)	(1,680,210)
Depreciation and amortization expense	1,618	1,557	4,794	4,643
Operating income	34,943	31,076	100,771	100,268
Interest expense (benefit)	(54)	1,391	117	4,645
Income tax expense	9,806	7,509	28,478	25,214
Capital expenditures	2,701	823	5,641	3,714
Electrical & Mechanical | Eliminations
Segment Reporting Information [Line Items]
Operating revenue	2,154	2,555	5,627	7,262
Transmission & Distribution
Segment Reporting Information [Line Items]
Operating revenue	(226,244)	(203,028)	(613,896)	(545,724)
Transmission & Distribution | Operating segments
Segment Reporting Information [Line Items]
Operating revenue	(228,504)	(204,428)	(623,777)	(549,451)
Depreciation and amortization expense	4,753	4,412	13,848	12,697
Operating income	25,258	23,015	60,082	51,314
Interest expense (benefit)	982	1,367	3,030	3,239
Income tax expense	6,249	5,587	14,596	11,996
Capital expenditures	15,256	6,583	28,726	23,983
Transmission & Distribution | Eliminations
Segment Reporting Information [Line Items]
Operating revenue	$ 2,260	$ 1,400	$ 9,881	$ 3,727

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Business Segment Data - Summary of Segment Operating Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Operating revenue	$ 760,985	$ 717,406	$ 2,090,047	$ 2,218,672
Operating segments
Segment Reporting Information [Line Items]
Operating revenue	765,399	721,361	2,105,555	2,229,661
Eliminations
Segment Reporting Information [Line Items]
Operating revenue	(4,414)	(3,955)	(15,508)	(10,989)
Electrical & Mechanical
Segment Reporting Information [Line Items]
Operating revenue	534,741	514,378	1,476,151	1,672,948
Electrical & Mechanical | Operating segments
Segment Reporting Information [Line Items]
Operating revenue	536,895	516,933	1,481,778	1,680,210
Electrical & Mechanical | Eliminations
Segment Reporting Information [Line Items]
Operating revenue	(2,154)	(2,555)	(5,627)	(7,262)
Transmission & Distribution
Segment Reporting Information [Line Items]
Operating revenue	226,244	203,028	613,896	545,724
Transmission & Distribution | Operating segments
Segment Reporting Information [Line Items]
Operating revenue	228,504	204,428	623,777	549,451
Transmission & Distribution | Eliminations
Segment Reporting Information [Line Items]
Operating revenue	$ (2,260)	$ (1,400)	$ (9,881)	$ (3,727)

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Business Segment Data - Summary of Segment Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Segment Reporting Information [Line Items]
Total assets	$ 1,279,292	$ 1,110,582
Operating segments
Segment Reporting Information [Line Items]
Total assets	1,255,341	1,089,471
Operating segments | Electrical & Mechanical
Segment Reporting Information [Line Items]
Total assets	828,937	712,691
Operating segments | Transmission & Distribution
Segment Reporting Information [Line Items]
Total assets	426,404	376,780
Other reconciling items
Segment Reporting Information [Line Items]
Total assets	44,832	43,628
Eliminations
Segment Reporting Information [Line Items]
Total assets	$ (20,881)	$ (22,517)

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Business Segment Data - Summary of Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Operating income (loss)	$ 53,709	$ 50,091	$ 143,902	$ 139,619
Interest expense	2,851	4,596	8,823	13,483
Other income	1,071	1,208	3,683	2,705
Income before income taxes and income from equity method investments	51,929	46,703	138,762	128,841
Operating segments
Segment Reporting Information [Line Items]
Operating income (loss)	60,201	54,091	160,853	151,582
Other reconciling items
Segment Reporting Information [Line Items]
Operating income (loss)	(6,492)	(4,000)	(16,951)	(11,963)
Electrical & Mechanical | Operating segments
Segment Reporting Information [Line Items]
Operating income (loss)	34,943	31,076	100,771	100,268
Interest expense	(54)	1,391	117	4,645
Transmission & Distribution | Operating segments
Segment Reporting Information [Line Items]
Operating income (loss)	25,258	23,015	60,082	51,314
Interest expense	$ 982	$ 1,367	$ 3,030	$ 3,239

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Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Deferred Compensation Arrangements [Abstract]
Deferred compensation expense	$ 0.4	$ 0.0	$ 0.9	$ 1.0

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Commitment and Contingencies - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Loss contingency accrual	$ 1,400,000	$ 100,000
Loss contingency receivable	1,400,000	100,000
Fixed maximum amounts guaranteed remainder of year	13,300,000
Fixed maximum amounts guaranteed by year 2025	186,700,000
Fixed maximum amounts guaranteed by year 2026	312,600,000
Fixed maximum amounts guaranteed by year 2027	43,500,000
Fixed maximum amounts guaranteed by year 2028	1,000,000
Fixed maximum amounts guaranteed by thereafter	400,000
Guarantor obligations outstanding	0	0
Surety Bond
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure, undiscounted	845,300,000	299,900,000
Performance Guarantee
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure, undiscounted	557,500,000	341,400,000
Letter of credit
Loss Contingencies [Line Items]
Maximum borrowing capacity	$ 2,200,000	200,000
Letters of credit, term	12 months
Outstanding letters of credit	$ 0	$ 0

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Related Party Transactions - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
General corporate expenses				$ 21,500,000
Operating lease cost	$ 8,156,000	$ 6,693,000	$ 22,769,000	19,448,000
Related party
Related Party Transaction [Line Items]
General corporate expenses	4,900,000	4,500,000	27,600,000	21,500,000
Operating lease cost	200,000	200,000	500,000	500,000
Cash management and financing program | Related party
Related Party Transaction [Line Items]
Interest expense	3,000,000	4,700,000	9,100,000	13,500,000
MDU Resources, Services, Sales, and Rental Transactions | Related party
Related Party Transaction [Line Items]
Related party transaction	$ 0	$ 0	$ 300,000	$ 300,000

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Related Party Transactions - Intercompany Long-Term Borrowing Arrangements (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Related-party notes payable	$ 214,525	$ 168,531
Notes payable | Cash management and financing program | Related party
Related Party Transaction [Line Items]
Weighted Average Interest Rate as of September 30, 2024	6.10%
Related-party notes payable	$ 214,525	$ 168,531

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Related Party Transactions - Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Operating lease right-of-use assets	$ 68,852	$ 53,233
Current portion of operating lease liabilities	26,110	21,143
Operating lease liabilities	43,247	32,504
Related party
Related Party Transaction [Line Items]
Operating lease right-of-use assets	68	136
Current portion of operating lease liabilities	68	90
Operating lease liabilities	$ 0	$ 46

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Subsequent Events - Narrative (Details) $ in Millions		9 Months Ended
	Oct. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)	Nov. 21, 2024 USD ($)	Dec. 31, 2023 USD ($)
Letter of credit
Subsequent Event [Line Items]
Letters of credit, term		12 months
Maximum borrowing capacity		$ 2.2		$ 0.2
Subsequent event
Subsequent Event [Line Items]
Transition services agreement period	20 months
Proceeds from debt	$ 332.1
Debt issuance costs	7.9
Repayments of debt and payment of dividends	290.0
Cash retained from debt agreement	$ 42.1
Subsequent event | MDU Resources
Subsequent Event [Line Items]
Common stock distribution ratio	0.25
Subsequent event | MDU Resources
Subsequent Event [Line Items]
Payments of dividends	$ 60.0
Subsequent event | Centennial
Subsequent Event [Line Items]
Debt repayment	$ 230.0
Subsequent event | Line of credit | Senior secured credit agreement
Subsequent Event [Line Items]
Letters of credit, term	5 years
Maximum borrowing capacity	$ 525.0
Subsequent event | Term loan | Line of credit | Senior secured credit agreement
Subsequent Event [Line Items]
Face amount	300.0
Subsequent event | Revolving credit facility | Line of credit | Senior secured credit agreement
Subsequent Event [Line Items]
Maximum borrowing capacity	225.0
Outstanding balance	40.0		$ 40.0
Subsequent event | Letter of credit | Line of credit | Senior secured credit agreement
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 50.0