Everus Construction Group, Inc.

Case Overview
46 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 06/03/2025 |
Status: | Status: Investigating |
Company Name: | Company Name: Everus Construction Group, Inc. |
Court: | Court: Southern District of New York |
Case Number: | Case Number: 1:25cv02835 |
Class Period: | Class Period: 10/31/2024 - 02/11/2025 |
Ticker: | Ticker: ECG |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Everus Construction Group, Inc. (“Everus” or the “Company”) (NYSE:ECG) securities during the period from October 31, 2024, through February 11, 2025 (“the Class Period”), including investors who held MDU Resources Group, Inc. (“MDU Resources”) common stock as of October 21, 2024 and acquired Everus common stock issued in connection with the spinoff of Everus Construction on or about October 31, 2024. Investors have until June 3, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Everus Construction (formerly known as MDU Construction Services Group, Inc.) operated historically as a wholly owned subsidiary of CEHI, LLC, which is a wholly owned subsidiary of MDU Resources. On October 31, 2024, the Company’s stock began trading on the NYSE in connection with the spinoff.
On February 11, 2025, a little over 3 months after the spinoff, Everus released its fourth quarter and full year 2024 financial results, revealing that “[g]iven the current mix of [the Company's] backlog,” its “backlog conversion” would be “extended relative to [the] historical pattern over the coming quarters.” The Company explained its average project size had been getting “larger, more complex and longer.” The Company further revealed that, because of this shift in backlog composition, “heading into 2025” the Company “expect[s] revenue in the range of $3.0 billion to $3.1 billion and EBITDA in the range of $210 million to $225 million for the year.” On this news, the price of Everus shares declined by $12.43 per share, or approximately 18%, from $68.42 per share on February 11, 2025, to close at $55.99 on February 12, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) the Company’s backlog conversion cycle had become elongated due to larger, more complex projects; and (2) as a result, the Company's revenue recognition would be delayed.
Everus Construction (formerly known as MDU Construction Services Group, Inc.) operated historically as a wholly owned subsidiary of CEHI, LLC, which is a wholly owned subsidiary of MDU Resources. On October 31, 2024, the Company’s stock began trading on the NYSE in connection with the spinoff.
On February 11, 2025, a little over 3 months after the spinoff, Everus released its fourth quarter and full year 2024 financial results, revealing that “[g]iven the current mix of [the Company's] backlog,” its “backlog conversion” would be “extended relative to [the] historical pattern over the coming quarters.” The Company explained its average project size had been getting “larger, more complex and longer.” The Company further revealed that, because of this shift in backlog composition, “heading into 2025” the Company “expect[s] revenue in the range of $3.0 billion to $3.1 billion and EBITDA in the range of $210 million to $225 million for the year.” On this news, the price of Everus shares declined by $12.43 per share, or approximately 18%, from $68.42 per share on February 11, 2025, to close at $55.99 on February 12, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) the Company’s backlog conversion cycle had become elongated due to larger, more complex projects; and (2) as a result, the Company's revenue recognition would be delayed.