Core Viewpoint - A class action lawsuit has been filed against Everus Construction Group, Inc. on behalf of investors who purchased its common stock during the specified Class Period, alleging misleading statements regarding the company's business operations and revenue recognition [1][5]. Group 1: Lawsuit Details - The lawsuit covers purchasers of Everus Construction common stock between October 31, 2024, and February 11, 2025, including those who held MDU Resources common stock and acquired Everus shares during its spinoff [1]. - Allegations include that Everus Construction's backlog conversion cycle has elongated due to larger, more complex projects, leading to delayed revenue recognition and materially misleading positive statements about the company's prospects [5]. Group 2: Participation Information - Investors who purchased Everus Construction stock during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm directly [3][6]. Group 3: Law Firm Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [4]. - The firm has recovered hundreds of millions of dollars for investors, with notable achievements in 2019 and 2020 [4].

Group 1 - A class action has been filed on behalf of investors who purchased Everus Construction Group, Inc. common stock between October 31, 2024, and February 11, 2025, including those who held MDU Resources Group, Inc. common stock as of October 21, 2024, and acquired Everus stock during its spinoff [1] - Allegations against Everus include misleading investors about the backlog conversion cycle, which became elongated due to larger, more complex projects, leading to delayed revenue recognition [2] - Following the release of Everus's fourth quarter and full year 2024 financial results on February 11, 2025, the company's stock price fell by $18.88, or 27.6%, closing at $49.54 per share on February 13, 2025 [2] Group 2 - Shareholders interested in serving as lead plaintiff in the class action against Everus should contact Robbins LLP, although participation is not required to be eligible for recovery [3] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [4] - The firm has been dedicated to helping shareholders recover losses and improve corporate governance since 2002 [4]

Group 1 - A class action has been filed against Everus Construction Group, Inc. on behalf of investors who purchased its common stock between October 31, 2024, and February 11, 2025 [1] - The allegations state that Everus misled investors regarding its backlog conversion cycle, which became elongated due to larger and more complex projects, leading to delayed revenue recognition [2] - Following the release of its fourth quarter and full year 2024 financial results on February 11, 2025, Everus' stock price dropped by $18.88, or 27.6%, closing at $49.54 per share on February 13, 2025 [2] Group 2 - Shareholders interested in participating in the class action can contact Robbins LLP, with the option to serve as lead plaintiff or remain an absent class member [3] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [4] - The firm has been dedicated to helping shareholders recover losses and improve corporate governance since 2002 [4]

Financial Performance - In 2024, the Electrical & Mechanical (E&M) segment generated approximately 71% of total contract revenues with an operating income of 6.7% of segment contract revenues, while the Transmission & Distribution (T&D) segment accounted for 29% of total contract revenues with an operating income of 10.2%[39]. - In 2024, the company served approximately 3,900 customers across more than 43,000 projects, with total operating revenues of $2.85 billion, where the top 10 customers contributed about 33% of revenues[47]. - Fixed-price contracts accounted for approximately 59% of total 2024 contract revenues, while cost-reimbursable contracts made up about 34%[59]. - As of December 31, 2024, the company had approximately $2.05 billion in original face amount of bonds outstanding for projects, with $1.75 billion for E&M and $296.3 million for T&D[67]. - As of December 31, 2024, the company had $300.0 million outstanding under the Term Loan with an interest rate of 6.84%[365]. Company Structure and Operations - The company operates through two reportable segments: E&M and T&D, with a total of 15 wholly-owned operating companies[32]. - Everus Construction was spun off from MDU Resources on October 31, 2024, becoming an independent publicly traded company listed on the New York Stock Exchange under the ticker symbol "ECG"[31]. - The company has expanded its capabilities significantly since its establishment in 1997 through targeted entry into new geographies and over 25 acquisitions[32]. - Approximately 83% of the company's employees were represented by labor unions as of December 31, 2024, providing flexibility to scale workforce according to project needs[76]. Market and Industry Trends - The U.S. construction services industry is highly fragmented, with competition influenced by technical expertise, service pricing, and operational resources[41]. - The T&D services industry is expected to grow due to factors such as grid modernization, additional renewable power sources, and increased government support for infrastructure[46]. - Regulatory initiatives supporting renewable energy and infrastructure investment are expected to drive long-term demand for the company's services[71]. - The hospitality industry has seen growth due to increased domestic travel and higher disposable incomes, renewing demand for hospitality construction[48]. Risk Factors - Supply chain interruptions have become common, leading to longer lead times for certain components, which may result in project inefficiencies[53]. - The T&D segment's operations can be affected by seasonal weather conditions, impacting revenue and profitability[55]. - The company is exposed to fluctuations in commodity prices, which can increase transportation and construction costs due to higher fuel or material prices[366]. - Labor costs may also rise due to inflation and other economic factors, potentially impacting the company's financial results[367]. - The company is exposed to interest rate volatility related to its long-term debt obligations, which bear interest at variable rates[365]. - The company continues to monitor market risks, including interest rate changes and inflation, to mitigate potential impacts on its financial condition[367]. Employee and Corporate Culture - The company emphasizes a full-service project approach supported by experienced project managers and a skilled workforce, focusing on safety, quality, and operational excellence[35]. - Employee development and training are prioritized, focusing on a safety-first culture and ethical leadership[79]. - The company maintains a 401(k) plan with a matching contribution policy for eligible employees[78]. - The company emphasizes pay-for-performance in its compensation programs to align employee incentives with market practices and performance[77]. - The company has a code of conduct and ethics, known as the Leading With Integrity Guide, to ensure compliance with laws and ethical standards[80]. Recognition and Rankings - The company was ranked 9th on Engineering News-Record magazine's 2024 Top 600 Specialty Contractors list and 5th on Electrical Construction & Maintenance magazine's 2024 Top 50 Electrical Contractors list[32].

Group 1 - Kirby McInerney LLP is investigating potential claims against Everus Construction Group, Inc. regarding possible violations of federal securities laws and unlawful business practices [1] - Everus recently released its fourth quarter 2024 financial results, indicating that backlog conversion may be extended compared to historical patterns due to larger, more complex, and longer average project sizes [3] - Following the financial results announcement, Everus shares dropped by $12.43, or approximately 18%, from $68.42 to $55.99 per share [3] Group 2 - The investigation by Kirby McInerney LLP is aimed at shareholders who may have purchased or acquired Everus securities and are encouraged to contact the firm for more information [4] - Kirby McInerney LLP specializes in securities litigation and has achieved recoveries totaling billions of dollars for shareholders [6]

Forward-Looking Statements This presentation, and oral comments that Everus may make, contain or incorporate by reference certain "forward-looking statements" within the meaning of the securities laws. All statements that reflect Everus' 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 ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter revenue increase of 20%, reaching $760 million, driven by balanced growth across diversified end markets [10][32] - Fourth quarter EBITDA remained relatively flat at $58 million, primarily due to public company stand-up costs of $6.3 million [11][33] - The total backlog at the end of the fourth quarter was $2.8 billion, reflecting a 38% increase year-over-year [11][37] - For the full year 2024, net revenue was $2.85 billion, consistent with the previous year, while total EBITDA increased to $232 million from $223 million [34][36] Business Line Data and Key Metrics Changes - Electrical and Mechanical (E&M) revenues increased by 21% in the fourth quarter, while Transmission and Distribution (T&D) revenues grew by 15% [10][32] - E&M segment revenue for the fourth quarter was approximately $550 million, with EBITDA of $42.7 million, up 17% year-over-year [39] - T&D segment revenue for the fourth quarter was $213.3 million, with EBITDA of $30.6 million, reflecting a 15% increase [40] Market Data and Key Metrics Changes - The demand outlook for the T&D business remains favorable, driven by significant investments needed to modernize existing infrastructure [24][25] - The company noted strong demand in commercial markets, particularly in data centers and hospitality, contributing to a robust project pipeline [60] Company Strategy and Development Direction - The company is focused on its 4EVER strategy, which emphasizes employee development, customer value creation, and operational excellence [14][15] - A key aspect of the growth strategy includes geographic expansion through satellite projects and strategic M&A opportunities [16][20] - The company aims for compound annual revenue growth of 5% to 7% and EBITDA growth of 7% to 9% [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable demand drivers in key end markets, despite potential headwinds from tariffs and inflation [29][30] - The company is well-positioned financially, with net leverage at approximately 1.0 times, allowing for flexibility in executing growth strategies [21][42] Other Important Information - The company does not currently have a dividend policy or share repurchase authorization, focusing instead on reinvesting in growth opportunities [22] - Full year 2024 CapEx increased to $48.3 million, reflecting a commitment to organic growth investments [43] Q&A Session Summary Question: How do you approach revenue guidance for 2025? - Management indicated that larger, complex projects are taking longer to complete, impacting backlog conversion [52][54] Question: What is the latest on project pipeline and backlog trends? - Management noted strong demand in commercial areas, particularly data centers, and emphasized that backlog trends are primarily a matter of timing [59][64] Question: What are the expectations for corporate expenses going forward? - Management clarified that corporate expenses are primarily related to building corporate teams and are not expected to decrease significantly in the near term [65][66] Question: What is the outlook for M&A activity? - Management expressed excitement about M&A opportunities, focusing on companies with strong leadership and safety cultures [83][84] Question: How is the company addressing potential impacts from the new administration? - Management is monitoring the situation closely, noting that the administration's pro-business strategy could be beneficial for the industry [29][110]

Company Overview - Everus Construction Group operates under two segments: Electrical & Mechanical and Transmission & Distribution, focusing on diverse end markets across the U.S.[171] - The Separation from MDU Resources was completed on October 31, 2024, resulting in Everus becoming an independent publicly traded company listed under the symbol "ECG" on the NYSE[190]. - The Distribution involved transferring 50,972,059 shares of Everus common stock to MDU Resources stockholders at a ratio of one share of Everus for every four shares of MDU Resources[189]. Financial Performance - Operating revenues for Q3 2024 were $761.0 million, a 6.1% increase from $717.4 million in Q3 2023[200]. - E&M revenues grew by $20.0 million, or 3.9%, while T&D revenues increased by $24.0 million, or 11.7%[200]. - Operating income for Q3 2024 was $53.7 million, a 7.2% increase from $50.1 million in Q3 2023[210]. - Net income for Q3 2024 was $41.8 million, a 16.1% increase from $36.0 million in Q3 2023[199]. - Operating revenues for the nine months ended September 30, 2024, were $2,090.0 million, a decrease of 5.8% from $2,218.7 million in the same period of 2023[215]. - Selling, general and administrative expenses for the nine months ended September 30, 2024, were $109.3 million, an increase of 6.6% from $102.5 million in the same period of 2023[220]. - Income from equity method investments for the nine months ended September 30, 2024, was $7.8 million, a 62.5% increase from $4.8 million in the same period of 2023[226]. - Income taxes for the nine months ended September 30, 2024, were $37.6 million, a 14.6% increase from $32.8 million in the same period of 2023[225]. - EBITDA for the nine months ended September 30, 2024, was $173.9 million, up from $164.4 million in the same period of 2023, reflecting an increase of 5.7%[255]. - Free cash flow for the nine months ended September 30, 2024, was $57.8 million, compared to $45.5 million for the same period in 2023, an increase of 27.0%[260]. - Cash provided by operating activities totaled $82.7 million for the nine months ended September 30, 2024, an increase of $21.3 million from $61.4 million in the same period of 2023[272]. - Cash used in investing activities increased to $25.5 million for the nine months ended September 30, 2024, from $16.4 million in the same period of 2023, a rise of 55.5%[274]. - Cash used in financing activities totaled $58.2 million for the nine months ended September 30, 2024, compared to $46.5 million in the same period of 2023, an increase of 25.0%[275]. Segment Performance - Electrical & Mechanical (E&M) segment revenues for Q3 2024 were $536.9 million, a 3.9% increase from $516.9 million in Q3 2023[228]. - Transmission & Distribution (T&D) segment revenues for Q3 2024 were $228.5 million, an 11.7% increase from $204.5 million in Q3 2023[231]. - E&M segment operating income for Q3 2024 was $34.9 million, a 12.2% increase from $31.1 million in Q3 2023[233]. - T&D segment operating income for Q3 2024 was $25.3 million, a 10.0% increase from $23.0 million in Q3 2023[234]. - E&M segment revenues for the nine months ended September 30, 2024, were $1,481.7 million, an 11.8% decrease from $1,680.2 million in the same period of 2023[237]. - T&D segment revenues for the nine months ended September 30, 2024, were $623.8 million, a 13.5% increase from $549.5 million in the same period of 2023[240]. - E&M segment operating income for the nine months ended September 30, 2024, was $100.8 million, a slight increase of 0.5% from $100.3 million in the same period of 2023[242]. - T&D segment operating income for the nine months ended September 30, 2024, was $60.1 million, an increase of 17.2% from $51.3 million in the same period of 2023[243]. Market Conditions and Opportunities - The U.S. construction services industry is highly fragmented, with competition influenced by technical expertise, service pricing, and operational resources[176]. - The American Rescue Plan provides $1.9 trillion in COVID-19 relief funding, which may positively impact infrastructure projects relevant to Everus[184]. - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are expected to provide long-term opportunities for investments in electric and grid infrastructure, benefiting Everus[184]. - Everus has a backlog indicating ongoing bidding opportunities in specialty contracting markets, despite competitive bidding conditions[185]. - The company is monitoring legislative initiatives that could impact its operations and market opportunities, particularly in renewable energy and electric vehicle infrastructure[184]. Cost and Risk Management - The company anticipates continued increases in insurance costs due to economic inflation and rising losses in the insurance industry, particularly related to wildfire risks[174]. - Everus is focused on growing total revenues, expanding margins, and managing costs to increase operating income despite rising insurance costs[175]. - Inflation has increased costs, particularly in labor and transportation, but the company has not seen a material effect on its financial results[296]. - Labor costs may increase due to competitive market pressures and union negotiations, potentially affecting financial results[297][298]. - The company has a capacity to incur indebtedness of up to $525.0 million under a new credit agreement, which includes $300.0 million in term loans and a $225.0 million revolving credit facility[263]. - As of September 30, 2024, the fixed maximum amounts guaranteed under certain contracts aggregated to $557.5 million, up from $341.4 million as of December 31, 2023[285]. - The fixed maximum amounts guaranteed under letters of credit were $2.2 million as of September 30, 2024, compared to $0.2 million as of December 31, 2023[286]. - The company has issued guarantees related to routine purchases and lease obligations, with no fixed maximum amounts specified[287]. - The company does not have any other material financial guarantees or off-balance sheet arrangements beyond those disclosed[288]. - The company is exposed to interest rate risk due to a five-year senior secured credit agreement, which includes term loans and a revolving credit facility[295].