Group 1 - Everus Construction Group, Inc. (ECG) is outperforming its peers in the Construction sector with a year-to-date return of approximately 19.3%, compared to the sector average of 6.6% [4] - ECG currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for ECG's full-year earnings has increased by 15.4% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - ECG is part of the Building Products - Miscellaneous industry, which has seen an average gain of 2% year-to-date, indicating that ECG is performing better than its industry peers [6] - MasTec (MTZ), another Construction stock, has returned 33.5% since the beginning of the year and also holds a Zacks Rank of 1 (Strong Buy) [5] - The Building Products - Heavy Construction industry, to which MasTec belongs, is currently ranked 7 and has increased by 31.1% year-to-date [6]

Group 1: Everus Construction Group, Inc. (ECG) - Everus Construction provides a full spectrum of construction services, focusing on electrical, mechanical, and transmission and distribution specialty contracting services primarily in the United States [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a Zacks Consensus Estimate for current year earnings increase by 8.3% over the last 60 days [1] - Everus Construction's shares have gained 23% over the last three months, outperforming the S&P 500's gain of 9.3%, and it possesses a Momentum Score of A [2] Group 2: nVent Electric (NVT) - nVent Electric specializes in electrical connection and protection solutions, including design, manufacturing, marketing, installation, and servicing [3] - The company holds a Zacks Rank of 1 and has experienced a 6.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - nVent Electric's shares have increased by 34.7% over the last three months, significantly outperforming the S&P 500's gain of 9.3%, and it has a Momentum Score of B [3] Group 3: Harrow, Inc. (HROW) - Harrow is an eyecare pharmaceutical company focused on the discovery, development, and commercialization of innovative ophthalmic pharmaceutical products primarily for the U.S. market [4] - The company has a Zacks Rank of 1 and has seen a substantial increase of 47.4% in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - Harrow's shares have surged by 56.2% over the last three months, greatly exceeding the S&P 500's gain of 9.3%, and it possesses a Momentum Score of B [4]

Group 1 - Babcock International Group PLC (BCKIY) is currently outperforming its peers in the Construction sector, with a year-to-date gain of approximately 121.4% compared to the sector average of 8.9% [4] - The company holds a Zacks Rank of 2 (Buy), indicating a positive analyst sentiment and a stronger earnings outlook, with a 3.7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Babcock International Group PLC is part of the Engineering - R and D Services industry, which has an average gain of 10.4% this year, further highlighting BCKIY's superior performance [6] Group 2 - The Construction sector includes 88 individual stocks and has a Zacks Sector Rank of 11, indicating its relative performance compared to other sectors [2] - Another notable stock in the Construction sector is Everus Construction Group, Inc. (ECG), which has gained 14.5% year-to-date and holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Building Products - Miscellaneous industry, to which Everus belongs, has a current Zacks Industry Rank of 89 and has moved +10.1% this year [7]

Part I — Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) The company reported significant year-over-year growth in revenues and net income for the three and six months ended June 30, 2025. Total assets increased to **$1.48 billion** from **$1.29 billion** at year-end 2024, driven by higher receivables and contract assets. Net cash provided by operating activities improved substantially to **$32.5 million** for the first six months of 2025, compared to **$3.7 million** in the prior year period, reflecting higher net income Condensed Consolidated Statements of Income (Unaudited) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | | (In thousands, except per share amounts) | **2025** | **2024** | **2025** | **2024** | | **Operating revenues** | $921,466 | $703,373 | $1,748,095 | $1,329,062 | | **Gross profit** | $119,869 | $88,577 | $212,362 | $163,294 | | **Operating income** | $72,507 | $51,309 | $123,491 | $90,193 | | **Net income** | $52,843 | $38,972 | $89,515 | $67,186 | | **Diluted EPS** | $1.03 | $0.76 | $1.75 | $1.32 | Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,089,026 | $917,229 | | **Total assets** | $1,481,377 | $1,288,463 | | **Total current liabilities** | $614,314 | $513,370 | | **Total liabilities** | $966,968 | $865,851 | | **Total stockholders' equity** | $514,409 | $422,612 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | (In thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $32,470 | $3,751 | | **Net cash used in investing activities** | ($25,686) | ($11,496) | | **Net cash provided by (used in) financing activities** | ($8,088) | $6,500 | | **Decrease in cash, cash equivalents and restricted cash** | ($1,304) | ($1,245) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's operations, its recent separation from MDU Resources, and key accounting policies. Revenue is primarily driven by the Electrical & Mechanical (E&M) and Transmission & Distribution (T&D) segments, with significant growth in the E&M segment's commercial customer base. The company has a **$300 million** term loan and a **$225 million** revolving credit facility established post-separation. As of June 30, 2025, remaining performance obligations (backlog) stood at **$2.68 billion**. The company also discloses significant off-balance sheet arrangements, including surety bonds and performance guarantees - The company operates through two reportable segments: Electrical & Mechanical (E&M) and Transmission & Distribution (T&D)[29](index=29&type=chunk)[30](index=30&type=chunk) - The company completed its separation from MDU Resources on October 31, 2024, and is now an independent publicly traded company under the ticker 'ECG'. Financials for periods prior to the separation were prepared on a 'carve-out' basis[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) Remaining Performance Obligations (Backlog) as of June 30, 2025 | (In thousands) | Within 12 months | Greater than 12 months | | :--- | :--- | :--- | | **Electrical & Mechanical** | $1,944,794 | $392,232 | | **Transmission & Distribution** | $266,529 | $73,500 | | **Total** | **$2,211,323** | **$465,732** | - As of June 30, 2025, the company had **$292.5 million** outstanding on its term loan and a borrowing capacity of **$209.4 million** under its revolving credit facility[106](index=106&type=chunk)[108](index=108&type=chunk) - The company has significant off-balance sheet commitments, including potential maximum payments under surety bonds of approximately **$739.2 million** and job performance guarantees of **$659.8 million** as of June 30, 2025[165](index=165&type=chunk)[166](index=166&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the strong Q2 2025 performance to significant growth in the Electrical & Mechanical (E&M) segment, driven by data center and hospitality projects. Operating revenues increased **31.0%** to **$921.5 million**, and net income rose **35.4%** to **$52.8 million** year-over-year for the quarter. The company's backlog grew to **$2.98 billion**. Liquidity remains strong with **$209.4 million** available under the revolving credit facility. Management expects full-year 2025 capital expenditures to be between **$65.0 million** and **$70.0 million** - The company sees strong project opportunities, particularly for data center, underground, and hospitality work, driven by high tech reshoring and utility infrastructure investments[189](index=189&type=chunk) Consolidated Results of Operations - Q2 Comparison | (In millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Operating revenues** | $921.5 | $703.3 | 31.0% | | **Gross profit** | $119.9 | $88.5 | 35.5% | | **Operating income** | $72.5 | $51.3 | 41.3% | | **Net income** | $52.8 | $39.0 | 35.4% | - The E&M segment was the primary growth driver, with revenues increasing **41.6%** in Q2 2025, largely due to higher activity in the commercial end market (data centers, hospitality)[202](index=202&type=chunk)[203](index=203&type=chunk) Backlog Trend | (In millions) | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Total Backlog** | $2,978.2 | $2,780.6 | $2,403.4 | - Working capital increased to **$474.7 million** as of June 30, 2025, from **$403.9 million** at year-end 2024, supporting project growth[263](index=263&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company is exposed to market risks from interest rate changes, commodity price fluctuations, and inflation. The primary interest rate risk stems from its **$292.5 million** variable-rate term loan; a **1%** increase in the rate would raise annual interest expense by approximately **$2.9 million**. Commodity price volatility for materials like copper, aluminum, and steel, along with rising labor costs, could impact project profitability, though the company aims to mitigate these through pricing and efficiency strategies - The company has **$292.5 million** in variable-rate debt outstanding. A hypothetical **1%** increase in the interest rate would increase annual interest expense by approximately **$2.9 million**[284](index=284&type=chunk) - Operations are affected by fluctuations in commodity prices for materials such as copper, aluminum, and steel, as well as potential increases in labor costs due to inflation[285](index=285&type=chunk)[286](index=286&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025. They concluded that these controls and procedures were effective at a reasonable assurance level. No material changes were made to the company's internal control over financial reporting during the second quarter of 2025 - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[287](index=287&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[288](index=288&type=chunk) Part II — Other Information [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings.) The company reports no material changes to legal proceedings disclosed in its 2024 Annual Report. A previously filed securities class action lawsuit, Scofield v. Everus Construction Group, Inc., et al., which alleged false and misleading statements related to the company's backlog, was voluntarily dismissed on May 29, 2025 - A securities class action lawsuit filed on April 4, 2025, alleging misleading statements about the company's backlog, was voluntarily dismissed on May 29, 2025[292](index=292&type=chunk) - As of June 30, 2025, there were no other material changes to the legal proceedings disclosed in the company's 2024 Annual Report[291](index=291&type=chunk) [Item 1A. Risk Factors & Other Items](index=50&type=section&id=Item%201A.%20Risk%20Factors.) The company states there were no material changes to the risk factors previously disclosed in its 2024 Annual Report. Additionally, the report confirms no unregistered sales of equity securities, no defaults upon senior securities, and no new Rule 10b5-1 trading arrangements by directors or officers during the quarter - There were no material changes to the company's risk factors as of June 30, 2025, from those disclosed in the 2024 Annual Report[293](index=293&type=chunk) - The company reported no unregistered sales of equity securities or defaults on senior securities[294](index=294&type=chunk)[295](index=295&type=chunk)

Financial Data and Key Metrics Changes - The company's second quarter revenue increased by 31% to $921.5 million compared to the same period last year, driven by strong performance in both Electrical and Mechanical (E and M) and Transmission and Distribution (T and D) segments [6][15] - EBITDA for the second quarter rose by 36% to $84.2 million, with EBITDA margins improving to 9.1% from 8.8% in the prior year [7][16] - Total backlog at the end of the second quarter was $3 billion, up 24% year-over-year and 7% from the previous quarter [7][16] Business Line Data and Key Metrics Changes - E and M segment revenues increased by 42% to $713.6 million, with EBITDA rising by 53% to $63.7 million, resulting in an EBITDA margin of 8.9% [19] - T and D segment revenues grew by 3% to $212.4 million, with EBITDA increasing by 19% to $30.4 million, leading to an EBITDA margin of 14.3% [20] Market Data and Key Metrics Changes - The company noted strong demand trends in key end markets, particularly in data centers and hospitality, with favorable growth opportunities across various submarkets [11][36] - The utility end market showed strength, especially in the underground submarket, driven by increased spending plans from key customers [9][10] Company Strategy and Development Direction - The company aims for organic revenue growth of 5% to 7% compounded annually, with EBITDA growth of 7% to 9% on a compound annual basis [13] - The focus remains on attracting and retaining key talent to support growth objectives, with a record employment level achieved [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate continued backlog growth, citing strong competitive positioning and favorable demand drivers [10][18] - The outlook for the second half of the year is tempered due to a higher mix of large projects in early stages, impacting margin visibility [23][26] Other Important Information - The company raised its 2025 guidance, forecasting revenues between $3.3 billion and $3.4 billion and EBITDA between $240 million and $255 million [22] - The company is focused on maintaining strong execution and anticipates potential upside as new projects progress [25] Q&A Session Summary Question: Capability to convert backlog and fill gaps with book and burn work - Management highlighted the importance of timing and resource planning, stating they are well positioned to support growth and continue adding headcount [28][30] Question: Weather impact on T and D and hospitality outlook - Management confirmed no weather impacts in the second quarter and noted an uptick in hospitality work in Las Vegas, although not yet at pre-pandemic levels [34][36] Question: Sustainability of gross margin improvements - Management attributed margin improvements to efficiency gains and prefab investments, emphasizing ongoing investments in prefab facilities [40][41] Question: Book to bill ratio and demand environment - Management indicated that the book to bill ratio was affected by backlog lumpiness, but expressed optimism about year-to-date performance [45][46] Question: Growth rates in the back half by segment - Management suggested that growth rates may be tempered in the second half due to tougher comparisons but expected T and D to maintain its growth rate [51][52] Question: Pipeline for M&A and inorganic growth - Management is actively pursuing M&A opportunities and expanding their pipeline, focusing on companies with strong reputations and commitment to safety [56][58] Question: Cash flow and working capital impact - Management expressed confidence in their ability to generate cash flow in the second half, despite increased working capital needs for new projects [60][61]

Financial Data and Key Metrics Changes - The company's second quarter revenue increased by 31% year-over-year, reaching $921.5 million, driven by strong performance in the Electrical and Mechanical (E and M) segment and improved results in the Transmission and Distribution (T and D) segment [5][14] - EBITDA for the second quarter rose by 36% to $84.2 million, with EBITDA margins increasing to 9.1% from 8.8% in the prior year [6][14] - Total backlog at the end of the second quarter was $3 billion, up 24% from the same period last year [6][15] Business Line Data and Key Metrics Changes - E and M segment revenues increased by 42% to $713.6 million, with EBITDA rising by 53% to $63.7 million, resulting in an EBITDA margin of 8.9% [17] - T and D segment revenues grew by 3% to $212.4 million, with EBITDA increasing by 19% to $30.4 million, leading to an EBITDA margin of 14.3% [18] Market Data and Key Metrics Changes - The company noted strong demand trends in key end markets, particularly in data centers and hospitality, with no significant weather impacts reported during the quarter [10][32] - The utility end market showed increased activity, especially in the underground submarket, contributing to the growth in the T and D segment [7][18] Company Strategy and Development Direction - The company aims for long-term organic revenue growth of 5% to 7% compounded annually, with EBITDA growth of 7% to 9% on a compound annual basis [12] - The focus remains on attracting and retaining key talent, with a record employment level achieved during the quarter [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate continued backlog growth, citing strong customer relationships and favorable trends in key markets [7][23] - The company raised its 2025 revenue guidance to a range of $3.3 billion to $3.4 billion, reflecting strong execution and favorable demand drivers [20] Other Important Information - The company is pursuing several larger projects in the T and D segment, indicating a shift in trend and potential for growth [45] - The company is actively exploring inorganic growth opportunities, with a focus on companies that align with its values and operational standards [54] Q&A Session Summary Question: Capability to convert backlog and fill gaps with book and burn work - Management highlighted the importance of timing and resource allocation in project execution, emphasizing their strong position to support growth [26][27] Question: Weather impact on T and D and hospitality outlook - No weather impacts were reported in the second quarter, and there was an uptick in hospitality work in Las Vegas, although it has not yet returned to pre-pandemic levels [32] Question: Sustainability of gross margin improvements - Management noted that efficiency gains from prefab investments and strong project execution contributed to gross margin improvements, with ongoing investments planned [38] Question: Book to bill ratio and demand environment - The book to bill ratio was slightly below one, attributed to the lumpiness of backlog and timing of project awards, with a year-to-date ratio of 1.1 indicating strong demand [41][42] Question: Growth rates in the back half of the year - Management indicated that growth rates may be tempered in the second half due to tougher comparisons, with E and M expected to grow at a faster rate than T and D [48] Question: Pipeline for M&A opportunities - The company is actively pursuing M&A opportunities, bolstered by the hiring of a new vice president of corporate development, with a focus on geographic expansion [54] Question: Cash flow and working capital management - Management expressed confidence in their ability to generate cash flow in the second half of the year, despite increased working capital needs for new projects [57]

Second Quarter 2025 Performance - Revenue grew by 31% year-over-year, reaching $921.5 million in the second quarter of 2025, driven by strong performance in the E&M segment[29] - Backlog increased by 24% year-over-year, reaching $30 billion, with E&M backlog up 24% and T&D backlog up 21%[30, 34] - EBITDA increased by 36% year-over-year, reaching $842 million in the second quarter of 2025, driven by strong revenue growth and margin expansion[31, 34] - EBITDA margin expanded by 30 basis points to 91% in the second quarter of 2025[10, 33] Segment Performance - E&M revenues increased by 42% in the second quarter of 2025, driven by continued momentum in data center work, reaching $7136 million[13, 37] - E&M EBITDA increased by 53% with a 70 bps margin expansion[13, 39] - T&D revenues increased by 3% in the second quarter of 2025, driven by growth in both transportation and utility end markets, reaching $2124 million[13, 40] - T&D EBITDA increased by 19%, driven by a 200 bps margin expansion[13, 43] Financial Position and Guidance - The company had $274 million in total unrestricted cash and cash equivalents and revolver availability as of June 30, 2025, with a net leverage of 08x[14, 52] - The company is raising its 2025 revenue guidance to $33 billion - $34 billion and EBITDA guidance to $240 million - $255 million[53]

[Everus Q2 2025 Earnings Release](index=1&type=section&id=Everus%20Q2%202025%20Earnings%20Release) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong Q2 results to market momentum and project execution, highlighting significant growth and raising full-year 2025 guidance - CEO Jeffrey S. Thiede attributed the strong Q2 performance to end-market momentum, excellent project execution, and long-term customer relationships[5](index=5&type=chunk) - Backlog grew **24% year-over-year**, with balanced growth in both Transmission & Distribution (T&D) and Electrical & Mechanical (E&M) segments, driven by opportunities in commercial, utility, renewables, and institutional markets[6](index=6&type=chunk) - The company **raised its 2025 guidance** based on strong first-half results, efficient project execution, and favorable project timing[7](index=7&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) The company reported record Q2 and H1 2025 results, with significant year-over-year growth in revenue, net income, and EBITDA [Second Quarter 2025 Consolidated Results](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Results) Q2 2025 saw record results with revenue up 31.0% to $921.5 million and net income growing 35.4% to $52.8 million Q2 2025 Consolidated Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $921.5M | $703.3M | +31.0% | | Gross Profit | $119.9M | $88.5M | +35.5% | | Net Income | $52.8M | $39.0M | +35.4% | | Diluted EPS | $1.03 | $0.76 | +35.5% | | EBITDA | $84.2M | $62.1M | +35.6% | | Backlog (as of June 30) | $3.0B | $2.4B | +23.9% | - Gross profit margin improved to **13.0%** from 12.6% in Q2 2024, primarily due to project timing and efficiency gains[8](index=8&type=chunk) - Selling, general and administrative (SG&A) expenses increased to **$47.4 million**, up from $37.2 million, to support operational growth[9](index=9&type=chunk) [Second Quarter 2025 Segment Results](index=2&type=section&id=Second%20Quarter%202025%20Segment%20Results) The Electrical & Mechanical segment drove growth with a 41.6% revenue increase, while the Transmission & Distribution segment also saw solid growth E&M Segment Q2 2025 Results (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $713.6M | $503.8M | +41.6% | | Net Income | $47.3M | $29.3M | +61.4% | | EBITDA | $63.7M | $41.5M | +53.5% | | Backlog | $2.6B | $2.1B | +24.4% | T&D Segment Q2 2025 Results (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $212.4M | $206.8M | +2.7% | | Net Income | $17.8M | $14.8M | +20.3% | | EBITDA | $30.4M | $25.5M | +19.2% | | Backlog | $410.1M | $339.6M | +20.8% | [Six Months Ended June 30, 2025 Consolidated Results](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Consolidated%20Results) First-half 2025 revenues grew 31.5% to $1.75 billion, with net income rising 33.2% to $89.5 million compared to the prior year First Half 2025 Consolidated Financial Highlights (vs. H1 2024) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1.75B | $1.33B | +31.5% | | Gross Profit | $212.4M | $163.3M | +30.1% | | Net Income | $89.5M | $67.2M | +33.2% | | Diluted EPS | $1.75 | $1.32 | +32.6% | | EBITDA | $146.0M | $108.9M | +34.1% | [Financial Position and Cash Flow](index=3&type=section&id=Financial%20Position%20and%20Cash%20Flow) The company maintained a strong financial position with reduced net leverage, and operating cash flow increased substantially year-over-year Balance Sheet and Leverage Summary | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Unrestricted Cash | $64.5M | $69.9M | | Gross Debt | $292.5M | $300.0M | | Working Capital | $474.7M | $403.9M | | Net Leverage | 0.8x | 1.0x | Cash Flow Summary (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Operating Cash Flow | $32.5M | $3.7M | | Capital Expenditures | $31.6M | $16.5M | | Free Cash Flow | $6.5M | ($7.4M) | [Business Outlook](index=3&type=section&id=Business%20Outlook) Everus raised its full-year 2025 guidance for revenue and EBITDA, reflecting confidence in its project pipeline and operational execution Updated Full-Year 2025 Guidance | Metric | New Guidance | Previous Guidance | | :--- | :--- | :--- | | Revenues | $3.3B - $3.4B | $3.0B - $3.1B | | EBITDA | $240M - $255M | $210M - $225M | - The company affirmed its full-year 2025 gross capital expenditures guidance to be in the range of **$65 million to $70 million**[35](index=35&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The unaudited condensed consolidated financial statements detail significant year-over-year growth in revenue, profitability, and cash generation [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement details significant revenue and net income growth for both the second quarter and first half of 2025 Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $921,466 | $703,373 | $1,748,095 | $1,329,062 | | Gross Profit | $119,869 | $88,577 | $212,362 | $163,294 | | Operating Income | $72,507 | $51,309 | $123,491 | $90,193 | | Net Income | $52,843 | $38,972 | $89,515 | $67,186 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects growth in total assets to $1.48 billion, driven by higher business activity and increased stockholders' equity Balance Sheet Highlights (in thousands) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,089,026 | $917,229 | | Total Assets | $1,481,377 | $1,288,463 | | Total Current Liabilities | $614,314 | $513,370 | | Total Liabilities | $966,968 | $865,851 | | Total Stockholders' Equity | $514,409 | $422,612 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities improved significantly to $32.5 million for the first half of 2025, driven by higher net income Cash Flow Highlights (Six Months Ended June 30, in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32,470 | $3,751 | | Net cash used in investing activities | ($25,686) | ($11,496) | | Net cash provided by (used in) financing activities | ($8,088) | $6,500 | | Decrease in cash, cash equivalents and restricted cash | ($1,304) | ($1,245) | [Supplementary Information](index=8&type=section&id=Supplementary%20Information) This section provides detailed segment performance data and reconciliations of GAAP to non-GAAP financial measures like EBITDA and Free Cash Flow [Segment and Other Financial Information](index=8&type=section&id=Segment%20and%20Other%20Financial%20Information) Total backlog grew 23.9% year-over-year to nearly $3.0 billion, with the E&M segment contributing the majority at $2.6 billion Revenues by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Electrical & Mechanical | $713.6 | $503.8 | +41.6% | | Transmission & Distribution | $212.4 | $206.8 | +2.7% | Backlog by Segment (in millions) | Segment | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Electrical & Mechanical | $2,568.1 | $2,507.0 | $2,063.8 | | Transmission & Distribution | $410.1 | $273.6 | $339.6 | | **Total** | **$2,978.2** | **$2,780.6** | **$2,403.4** | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics, including EBITDA, Net Debt, Net Leverage, and Free Cash Flow Reconciliation of Net Income to EBITDA (Q2 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net income | $52.8 | | Interest expense, net | $4.8 | | Income taxes | $19.4 | | Depreciation and amortization | $7.2 | | **EBITDA** | **$84.2** | Calculation of Net Leverage (as of June 30, 2025, in millions) | Line Item | Amount | | :--- | :--- | | Total gross debt | $292.5 | | Less: cash and cash equivalents | ($64.5) | | **Total net debt** | **$228.0** | | Trailing 12-month EBITDA | $269.3 | | **Net leverage** | **0.8x** | Reconciliation to Free Cash Flow (H1 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $32.5 | | Purchases of property, plant and equipment | ($31.6) | | Cash proceeds from sale of property | $5.6 | | **Free cash flow** | **$6.5** |

Group 1: TransMedics Group - TransMedics Group reported Q1 2025 sales of over $143 million, exceeding analyst expectations by approximately 16% [2] - The company achieved adjusted earnings per share (EPS) of $0.70, more than double the expected amount [3] - TransMedics increased its full-year revenue guidance by $34 million, now forecasting $575 million, which implies a growth of 30% compared to 2024 [4] Group 2: Everus - Everus reported Q1 sales of nearly $827 million, beating forecasts by over $150 million, resulting in a sales beat of over 22% [6] - The company's non-adjusted EPS rose by 31% to $0.72, contrary to analyst expectations of a decline [6] - Everus's order backlog increased by 41% to $3.1 billion, providing a solid revenue floor for future growth [8] Group 3: Excelerate Energy - Excelerate Energy's Q1 sales reached $315 million, surpassing estimates by over 51% [11] - Revenues grew by over 57%, significantly higher than the expected growth of just 4% [11] - The company is positioned to benefit from rising global demand for LNG, with Jefferies initiating coverage with a $39 price target [11]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased common stock of Everus Construction Group, Inc. during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][2]. Group 1: Class Action Details - The Class Period for the lawsuit is defined as October 31, 2024, to February 11, 2025, and includes those who held MDU Resources common stock and acquired Everus Construction common stock during the spinoff [1]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by June 3, 2025 [3]. Group 2: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. Group 3: Case Allegations - The lawsuit alleges that during the Class Period, Everus Construction made false or misleading statements regarding its backlog conversion cycle, which had become elongated due to larger, more complex projects [5]. - It is claimed that this led to delays in revenue recognition and that the positive statements made by the defendants about the company's business and prospects were materially misleading [5].