Everus Construction Group, Inc. Q4 FY2025 earnings call

Jeff highlighted transformational year, record full-year results. Key accomplishments include strong revenue and EBITDA growth, backlog growth. Strategic priorities focus on employees, customers/shareholders, execution, relationships. Operational excellence with strong execution, prefabrication/modular construction. Capital allocation focused on organic growth, acquisitions, financial flexibility. Max provided detailed financials, liquidity, and balance sheet info.

Fourth quarter revenues were over $1,000,000,000, up 33% y-o-y. Full-year revenues increased 32%. Fourth quarter EBITDA was $84,800,000, up 45% y-o-y. Full-year EBITDA was $319,800,000. Backlog at end of 2025 was $3,230,000,000, up 16% y-o-y. E&M segment: Q4 revenues $791,600,000, up 44% y-o-y; EBITDA $67,100,000, up 57% y-o-y. T&D segment: Q4 revenues $227,700,000, up 6.8% y-o-y; EBITDA $30,500,000, essentially flat y-o-y.

Forecasts 2026 revenues $4.1 - $4.2 billion and EBITDA $320,000,000 - $335,000,000. Midpoint revenue growth 11%, EBITDA growth 5%. EBITDA margin midpoint just under 8%, reflecting scale benefits and execution upside.

Q: On guidance and margins, any non-repeatable execution in 2025?

A: Exceptional margin upside from multiple markets, focus on operational excellence for 2026 margins.

Q: On leverage and M&A, optimal leverage?

A: 1.5 - 2.0 times net leverage long-term, actively looking for M&A.

Q: On backlog and capacity constraints, lead times?

A: 80% backlog burns off in 12 months, clear line of sight 2026 with some into 2027.

Q: On satellite expansions and T&D opportunities?

A: Selective on satellite expansions, selective on T&D projects.

Q: On labor costs and M&A multiples?

A: Labor costs factored into pricing, M&A deals around 9-10x multiples.

Q: On margins through cycle and backlog composition?

A: Margins not strictly cycle-dependent, data center and semiconductor exposure increasing in backlog.