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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

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