Everus Construction Group, Inc. Q3 FY2025 earnings call

• Jeff highlighted strong financial performance with record quarterly revenue, net income, and EBITDA. The team's execution of complex projects while maintaining safety and quality was emphasized. - Key markets: T&D business受益于客户的强劲支出计划，数据中心子市场需求强劲，工业领域也有拓展。 - Focus on 4EVER strategy: Emphasis on attracting and retaining talent, efficient execution, project selection, bidding discipline, safety, and execution. - Max provided details on revenues, EBITDA, backlog, liquidity, and balance sheet, noting stand-up costs trending in line with expectations.

For the third quarter, revenue was $986.8 million, up 30% year-over-year. The Electrical and Mechanical (E&M) segment saw revenues increase 43% to $767.3 million, with EBITDA of $66.9 million (up 64%) and an EBITDA margin of 8.7% (up 110 basis points). The T&D segment had revenues of $223.4 million (modestly down year-over-year), with T&D EBITDA of $33.8 million (up 11%) and an EBITDA margin of 15.1% (up 180 basis points). Total backlog at September 30th was $2.95 billion, up 2% from the prior year.

• Raised 2025 guidance: Revenues now expected in the range of $3.55 billion to $3.65 billion (up from prior $3.3 billion to $3.4 billion). - EBITDA now expected in the range of $290 million to $300 million (up from prior $240 million to $255 million). - Midpoint of revised range reflects 26% revenue growth and 40% EBITDA growth adjusted for incremental standalone costs.

Q: On margins, how sustainable is margin improvement and rethought potential margins?

A: Jeff noted execution upside is hard to forecast, but focus on margin uplift on projects going forward when labor, materials, and schedules align.

Q: On data center strength, regions and project timelines?

A: Jeff mentioned key regions for data center work include Upper Midwest, Midwest, Southwest, and Pacific Northwest; data center work is a significant part of business with strong backlog growth.

Q: On organic growth and backlog for next year?

A: Jeff stated strong demand for services continues, backlog is strong, and they will navigate cyclicality through anticipatory communication and disciplined project selection.

Q: On E&M data center end market progression?

A: Jeff noted data centers are a big part of business with strong demand, long runway, and diversification efforts.

Q: On M&A opportunities?

A: Jeff mentioned strong balance sheet positions them for meaningful acquisitions, expanded corporate development team, and focus on acquiring companies with high integrity, similar services, and geographical expansion in T&D and E&M segments