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- **Record Financial Performance**: Q3 2025 revenue of $986.8 million (+30% YoY) and EBITDA of $89 million (+37% YoY) highlight strong execution across E&M and T&D segments.
- **Sustained Growth Drivers**: Data center demand, utility infrastructure upgrades, and disciplined project selection drive 2% YoY backlog growth to $2.95 billion.
- **Margin Expansion**: EBITDA margin improved 50 basis points to 9%, with E&M segment margin up 110 basis points to 8.7%.
- **M&A and Capital Allocation**: Low net leverage (0.5x) positions the company to pursue strategic acquisitions and invest in growth infrastructure.
- **2026 Outlook**: Updated guidance reflects confidence in demand across data centers, utilities, and industrial markets, with free cash flow generation expected to continue.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 2025 revenue reached $986.8 million, up 30% year-over-year, driven by 43% growth in the Electrical & Mechanical (E&M) segment, particularly in data centers.
- **Margin Expansion**: EBITDA rose 37% to $89 million, with a 50 basis point improvement in EBITDA margin to 9%. E&M segment margin increased 110 basis points to 8.7%.
- **Backlog Strength**: Total backlog of $2.95 billion reflects 2% year-over-year growth, despite strong revenue burn. T&D backlog surged 19% due to utility undergrounding projects.
- **Strategic Focus**: Emphasis on the 4EVER strategy, including talent retention, project execution excellence, and disciplined project selection. Expansion into new geographies like the Southwest and Pacific Northwest for data center work.

**【CFO Financial Commentary】**
- **Updated Guidance**: Full-year 2025 revenue raised to $3.55–$3.65 billion (vs. prior $3.3–$3.4 billion), EBITDA to $290–$300 million (vs. $240–$255 million). Free cash flow for first 9 months of 2025 was $74.8 million, up 29% year-over-year.
- **Balance Sheet Health**: Net leverage of 0.5x, with $129.9 million in unrestricted cash and $207.4 million available under the credit facility. Capital expenditures of $42.1 million reflect investments in growth infrastructure.
- **Segment Performance**: T&D segment EBITDA margin improved 180 basis points to 15.1%, driven by project mix and execution. Stand-up costs remain on track for $28 million annualized.

**【Q&A Key Highlights】**
- **Margins and Execution**: CEO Jeff Thiede emphasized that while margin upside is unpredictable, strong execution in 2025 (e.g., project pull-forward) will set a baseline for 2026. CFO Max Marcy noted Q4 2025 EBITDA margin may be lower due to typical seasonality but remains confident in long-term trends.
- **Data Center Growth**: Expansion into new regions (Southwest, Pacific Northwest) and diversification of end markets (industrial, semiconductor) support sustained demand. Backlog visibility extends into 2026.
- **Vegas Market Resilience**: Despite hospitality sector challenges, diversification into data centers and correctional facilities in Las Vegas maintains growth. Workforce fungibility allows resource allocation to high-demand markets.
- **M&A Strategy**: With a strengthened balance sheet (0.5x net leverage), the company is actively pursuing acquisitions in T&D and E&M segments to expand geographic and service offerings.

Everus Construction Group, Inc. (ECG) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: 31% revenue growth ($921.5M) and 36% EBITDA increase ($84.2M), driven by E&M strength and T&D diversification.
- **Backlog Expansion**: $3B backlog (+24% YoY), with balanced growth across segments and strong data center demand.
- **Updated Guidance**: 2025 revenue raised to $3.0-3.4B and EBITDA to $240-255M, reflecting first-half outperformance.
- **Strategic Focus**: Prefabrication investments, disciplined project selection, and M&A pipeline support long-term 5-7% revenue growth target.
- **Second-Half Outlook**: Margin visibility tempered by early-stage projects, but confident in long-term execution and 2026 upside.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 revenue reached $921.5 million, up 31% YoY, driven by 42% growth in Electrical & Mechanical (E&M) and 3% in Transmission & Distribution (T&D). EBITDA rose 36% to $84.2 million.
- **Backlog Expansion**: Total backlog of $3 billion (up 24% YoY) reflects balanced growth across E&M (+24%) and T&D (+21%).
- **Strategic Momentum**: Data center demand remains strong, with underground utility work leading T&D growth. The company added $900 million in revenue for the first time, supported by 4EVER strategy execution.
- **Long-Term Targets**: Aiming for 5-7% CAGR in organic revenue and 7-9% CAGR in EBITDA, with 2025 performance exceeding long-term framework.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $42.3 million, Non-GAAP EPS of $1.08. EBITDA margin improved to 9.1% (vs. 8.8% YoY), driven by project execution and cost control.
- **Balance Sheet**: $64.5 million cash, $292.5 million debt, and 0.8x net leverage. CapEx increased to $31.6 million (vs. $16.5 million YoY) for growth investments.
- **Updated Guidance**: Raised 2025 revenue to $3.0-3.4 billion (prev. $3.0-3.1B) and EBITDA to $240-255 million (prev. $210-225M), reflecting strong first-half execution.
- **Second-Half Outlook**: Higher mix of early-stage projects may temper margin visibility, with potential upside in 2026.

**【Q&A Key Highlights】**
- **Project Execution**: Record Q2 revenue due to project pull-forward and strong execution. Prefabrication investments support safety, efficiency, and schedule acceleration.
- **Market Trends**: Hospitality backlog shows improvement, though not yet at pre-2023 levels. T&D growth driven by underground utility and transportation signalization.
- **M&A Pipeline**: Active pipeline for inorganic growth, with focus on geographic expansion and strategic fit. Free cash flow expected to remain strong despite working capital needs.
- **Book-to-Bill**: Year-to-date book-to-bill of 1.1 reflects strong backlog conversion, though Q2 was slightly below 1 due to project timing.


Everus Construction Group, Inc. (ECG) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 2025 revenue up 32% YoY, driven by E&M segment expansion and strategic capital allocation.
- **Backlog Strength**: Total backlog +41% YoY, with E&M backlog surging 46% YoY across key sub-markets.
- **Margin Resilience**: EBITDA margin held steady at 7.5% despite cost headwinds, T&D margin improved 80bps.
- **Strategic Moves**: New M&A leader and prefab facility investment signal long-term growth orientation.
- **Macro Mitigation**: Proactive procurement and contract terms protect against tariff volatility.

**【CEO Summary Section】**
- Q1 2025 revenue increased 32% YoY to $826.6 million, driven by 47% growth in E&M segment and 5.8% EBITDA growth in T&D despite 2% revenue decline.
- 4EVER strategy focuses on talent acquisition (hiring 20+ years M&A expert Tim Sznewajs) and capital allocation (new $128k sq ft prefab facility in Kansas City).
- Backlog up 10% QoQ and 41% YoY ($3.1B), with E&M backlog surging 46% YoY across data centers, manufacturing, and hospitality.
- Highlighted macro resilience through early material procurement and contract risk mitigation in tariff-volatile environment.

**【CFO Financial Commentary】**
- EBITDA $61.8M (+32% YoY), margin stable at 7.5% despite $28M incremental costs.
- T&D EBITDA margin improved 80bps to 10.9%, offsetting revenue decline.
- CapEx $18.5M (+99% YoY) for growth infrastructure, with net leverage at 1x trailing EBITDA.
- 2025 guidance reaffirmed: $3B-$3.1B revenue, $210M-$225M EBITDA.

**【Q&A Highlights】**
- E&M demand resilience in data centers, high-tech reshoring, and pharmaceutical manufacturing.
- T&D outlook positive with undergrounding expertise and 30+ year customer relationships.
- Tariff mitigation strategies include long-lead procurement and contract terms protecting margins.
- Non-backlog business managed via resource allocation to high-margin projects.
- 2025 revenue cadence cautious due to project timing and macro uncertainty.

Everus Construction Group, Inc. (ECG) Q1 2025 Earnings Call Transcript

- **Revenue Growth**: 20% Q4 YoY to $760 million, driven by 21% E&M and 15% T&D growth. 2025 guidance: $3.0-3.1 billion (+10-12%).
- **Backlog Strength**: $2.8 billion (38% YoY), with 38% E&M growth and multi-year projects extending conversion cycle.
- **Financial Flexibility**: 1.0x net leverage, $70 million cash. 2025 CapEx $65-70 million for growth investments.
- **Strategic Moves**: M&A pipeline active; $28 million annual dis-synergies cost stable. Prefabrication to drive efficiency over 3+ years.
- **Market Resilience**: Data center, utility, and government project demand offset macro risks; 2024 EBITDA +4% YoY despite headwinds.

**【CEO Summary Section】**
- **Transformational Year Post-Spinoff**: Highlighted 2024 as a record year with $2.8 billion backlog (38% YoY growth) and strong execution across E&M and T&D segments.
- **Q4 2024 Financials**: Revenue up 20% YoY to $760 million, driven by 21% growth in E&M (data centers, institutional projects) and 15% in T&D (utility, transportation). EBITDA flat due to $6.3 million public company costs.
- **2025 Guidance**: Revenue $3.0-3.1 billion (10-12% YoY growth), EBITDA $210-225 million (4-8% YoY growth). Capital allocation prioritizes M&A and organic growth with $65-70 million CapEx.
- **Strategic Focus**: Expand into new markets via satellite projects, ramp up M&A, and invest in prefab capabilities for efficiency gains.

**【CFO Financial Commentary】**
- **Q4 2024 Details**: E&M EBITDA $42.7 million (+17% YoY), T&D EBITDA $30.6 million (+13% YoY). Full-year free cash flow $129 million vs. $152 million prior year due to higher CapEx ($48.3 million vs. $35 million).
- **Balance Sheet Strength**: $70 million cash, $300 million debt, 1.0x net leverage (target 1.5-2.0x). No dividend policy; reinvesting in growth.
- **2025 Outlook**: Dis-synergies $28 million (flat run rate). Guidance assumes normalized project execution vs. 2024's overperformance.

**【Q&A Highlights】**
- **Backlog Conversion Timing**: Larger, multi-year projects (e.g., data centers) extend backlog burn rate, with 2025 conversion rate ~75% vs. historical 80-85%.
- **M&A Strategy**: Seeking high-integrity firms with strong safety cultures and geographic expansion potential. Prefabrication investments to yield multi-year efficiency gains.
- **Market Trends**: Resilient demand in data centers, utility infrastructure, and government projects. Monitoring tariffs and interest rates but confident secular trends offset risks.
- **Storm Work**: 2024 Q4 storm restoration work in California underscores T&D utility segment resilience. Margins offset by diverting crews from core projects.

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