Everus Construction Group, Inc. Q1 FY2025 earnings call

• Strong first quarter results driven by E&M segment strength, despite T&D revenue decline due to weather delays. EBITDA increased 32% with margins consistent to last year. - End market trends: Data center business strong, hospitality business has additional growth opportunities, high-tech reshoring continues. - 4EVER strategy focus on attracting/retaining/training talent, strong execution, and disciplined capital allocation. Purchased a new prefabrication facility in Kansas City and added Tim Sznewajs for M&A. - Financial update: Revenues $826.6 million, EBITDA $61.8 million, CapEx $18.5 million, net leverage 1x, unrestricted cash $54.3 million.

First quarter revenue increased 32%. Electrical and mechanical (E&M) segment revenue increased 47% to $648.2 million, with E&M EBITDA at $49.5 million (up 51%) and margin 7.6%. Transmission and distribution (T&D) segment revenue was $185 million, down 2% due to weather-related delays, but T&D EBITDA was $20.1 million (up 5.8%) with a margin of 10.9%. Total backlog at end of first quarter was $3.1 billion, up 10% from year-end and 41% from prior year.

• Affirmed 2025 guidance with revenues in the range of $3 billion to $3.1 billion and EBITDA in the range of $210 million to $225 million. - Early in the year with project timing uncertainty and macro environment adding uncertainty.

• Tariff and trade uncertainties creating dynamic operating conditions. - Weather-related delays impacting T&D segment revenue. - Macro-economic uncertainties affecting market conditions and customer CapEx decisions.

Q: Congrats on a great first quarter. Talked about larger mix of longer lead time projects. Is there specific projects affecting revenue timing?

A: Backlog could be bumpy with large complex projects having longer front ends.

Q: Outlook for T&D segment?

A: T&D is important, well-positioned with long-term customers and expertise.

Q: Status of high-tech manufacturing end market?

A: Have 30+ year relationship with semiconductor manufacturer, will support customers despite cyclicality.

Q: Outlook for non-backlog business?

A: Non-backlog work is important, resource allocation key.

Q: Capabilities in pharmaceutical manufacturing?

A: Focusing on deploying resources, opportunity exists with organic growth and M&A.

Q: Impact of LA wildfire driver on spending?

A: Well-positioned with long history, renewed MSAs, expertise in undergrounding.

Q: 2025 guidance in light of strong first quarter?

A: Some pull forward in Q1, early in year with macro uncertainties.

Q: Impact of tariffs?

A: Proactive in procuring materials, mitigate exposure through supplier relationships and contractual terms.

Q: Corporate costs run rate?

A: Q1 was slightly soft, but overall $28 million incremental costs expected to be met.