Can ECG sustain its Q4 2024 EPS momentum into Q1 2025?

**Everus Construction Group (ECG) is likely to sustain its Q4 2024 EPS momentum into Q1 2025**, based on several key factors:

1. **Consistent Growth Trajectory**: ECG has demonstrated strong growth in its core segments, with revenues increasing by 19.5% YoY in Q4 2024. This consistent growth trajectory suggests that the company's underlying business is robust and capable of sustaining its performance.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|ECG|ECG.N|Everus Construction|2024 Q2|0.8357266682191|38972|169|
|ECG|ECG.N|Everus Construction|2024 Q3|15.492957746478872|0.82|169|

2. **Positive Market Trends**: The construction industry, including ECG's specialized services, is benefiting from favorable market trends such as the resurgence of industrial and manufacturing capacity in the US, often referred to as "re-shoring". This trend is expected to continue, providing a positive backdrop for ECG's growth into Q1 2025.
3. **Strong Backlog and Project Pipeline**: ECG's backlog has increased significantly, with a 38% year-over-year growth at the end of 2024. This substantial backlog indicates a strong pipeline of projects that will translate into revenue and EPS growth in the coming quarters.
4. **Strategic Focus and Operational Efficiency**: ECG's focus on its "4EVER" strategy and disciplined operational execution have been key drivers of its success. The company's ability to execute projects efficiently and maintain a strong safety record positions it well for continued growth.
5. **Financial Flexibility**: ECG's financial position, with a net leverage ratio well below its long-term target, provides the company with the flexibility to invest in organic growth and strategic acquisitions, which are essential for sustaining momentum in a dynamic industry like construction.
6. **Industry Position and Competitive Advantage**: Everus's position as a leading provider of specialized construction services, including electrical and mechanical maintenance and transmission and distribution projects, gives it a competitive edge. This advantage is likely to translate into continued market share gains and revenue growth.

In conclusion, while there may be challenges, including higher selling, general, and administrative expenses and interest expense related to the spinoff from MDU Resources, the overall indicators suggest that ECG is well-positioned to sustain its Q4 2024 EPS momentum into Q1 2025.