Everus Construction Group's Q1 2025: Discrepancies in Backlog, M&A Strategies, and Market Predictions

Backlog conversion and project durations, M&A and prefab investments, and high-tech manufacturing end market and semiconductor support are the key contradictions discussed in Everus Construction Group, Inc.'s latest 2025Q1 earnings call.



Strong Revenue and EBITDA Growth:
- Everus Construction Group reported a 32% increase in revenue to $826.6 million for Q1 2025, with EBITDA also rising 32% to $61.8 million.
- The growth was driven by a 47% increase in E&M revenue, strong backlog growth, and successful project execution.

Backlog Growth and Diversification:
- The company's total backlog at the end of Q1 was up 10% from year-end and 41% from the prior year period, reaching $3.1 billion.
- Growth was driven by increased E&M backlog, particularly in data centers, manufacturing, government, and hospitality sectors, indicating diverse exposure and strong customer relationships.

Strategic Investments in Prefabrication and M&A:
- Everus made significant capital investments in Q1, including the purchase of a new prefabrication facility in Kansas City.
- The company also added Tim Sznewajs to its team as Vice President of Corporate Development and Strategy, highlighting its commitment to strategic M&A and growth opportunities.

Profitability Amid Market Uncertainties:
- Despite tariff and trade uncertainties, Everus maintained consistent EBITDA margins, with a Q1 margin of 7.5%, consistent with the prior year.
- The company's disciplined approach, proactive material procurement, and early pricing lock-ins contributed to stable profitability during challenging market conditions.