Everus Construction Group, Inc. Q1 FY2026 earnings call

• Strong start to the year with record revenues, 25% revenue growth, 44% EBITDA increase, 110 basis points EBITDA margin increase. - Acquisition of SE and M, first transaction as standalone public company. - Backlog at $3.7 billion, up 20% from prior year. - Focus on strategic priorities: commercial growth with diversified end markets, operational excellence with balanced project size and contract type, disciplined capital allocation with acquisition of SCNM. - SCNM acquisition expands geographic footprint, diversifies business, deepens market presence, led by experienced management team, integration on track.

First quarter revenues were $1 billion, up 25% from prior-year period. E and M segment: Q1 revenues increased 29% to $835.1 million, EBITDA $75.3 million, up 52%, margin 9% (up 140 basis points). T and D segment: Q1 revenues $204.4 million, up 10.5%, EBITDA $27.1 million, up 35%, margin 13.3% (up 240 basis points). Backlog at end of first quarter was $3.7 billion, up 20% from same period last year, with strong growth in both T and D and E and M segments.

• Raising 2026 guidance based on strong first quarter results and inclusion of SCNM. - Forecasts 2026 revenues in range of $4.3 billion to $4.4 billion and EBITDA in range of $345 million to $360 million. - Midpoint implies EBITDA margins of 8.1%, with legacy business guidance assuming EBITDA margins around 8% for balance of the year. - SCNM forecasted to contribute mid-teens to high-teens EBITDA margin for 2026, covering most of guidance lift.

Q: Jeff, you mentioned first award associated with new geographic expansion. Does that imply visibility into additional awards with high-tech customer or more awards in new region? Also, on strong cash flow, extent of better payment terms driving strength and if to expect to sustain.

A: Jeff expects more awards as project develops, looking for additional business in new geography; on payment terms, focus on negotiating good terms, seen improvement, results from operational excellence initiative. Max adds cash quarter due to timing, more normalized as year progresses.

Q: Analyst on backlog composition, percent for data centers, hospitality, high-tech.

A: Jeff says competition similar to past, ability to target and select projects key; Max says don't break out data center percentage in backlog, growth across commercial and industrial segments.

Q: Analyst on contract mix, risk discipline, SCNM guidance.

A: Max says appreciate contract mix, goal to balance cost plus and fixed price; Jeff adds medium and small projects important, service group backlog increase; Max says SCNM forecasted mid-teens to high-teens EBITDA margin for 2026, no seasonality factors.

Q: Christopher Senyek on E and M backlog, T and D pull-through demand, labor availability.

A: Jeff says early in year, will reevaluate; on T and D, increased opportunities, selective; on labor, qualified labor challenge, emphasis on outreach, training; Max says guidance margins revert to core for remainder of year due to timing.