Financial Performance - Third quarter revenue increased by 30% to $986.8 million, driven by strong performance in the E&M segment[9, 28] - Total backlog increased 2% year-over-year to $2.95 billion, despite record third-quarter revenue, with T&D backlog growth of 19%[10, 32] - Third quarter EBITDA increased 37% to $89 million, driven by strong revenue growth and margin expansion[9, 30, 32] - EBITDA margin increased by 50 basis points to 90%, reflecting margin growth in both E&M (+110 bps) and T&D (+180 bps) segments[9, 30] Segment Performance - E&M revenues increased 43% to $767.3 million, driven by continued momentum in data center work[13, 35, 41] - E&M EBITDA increased 64% to $66.9 million, with a margin increase of 110 bps to 87%[13, 36, 37, 41] - T&D revenues decreased 2% to $223.4 million, with growth in transportation offset by a decline in utility revenues[13, 38, 41] - T&D EBITDA increased 11% to $33.8 million, driven by a 180 bps margin expansion to 151%[13, 39, 40, 41] Financial Position and Outlook - The company has total unrestricted cash and cash equivalents and revolver availability of $337 million[14, 45, 49] - Net leverage is at 05x, below the long-term target range of 15x-20x[14, 46, 49] - Nine months ended 2025 free cash flow was $748 million, an improvement from $578 million last year[13, 48]

分组1 - Everus Construction Group, Inc. (ECG) reported quarterly earnings of $1.11 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.82 per share a year ago, resulting in an earnings surprise of +79.03% [1] - The company achieved revenues of $986.82 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 20.25%, compared to $760.98 million in the same quarter last year [2] - ECG has outperformed the S&P 500, with shares increasing by approximately 37.2% since the beginning of the year, while the S&P 500 gained 16.5% [3] 分组2 - The earnings outlook for Everus Construction Group, Inc. is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for ECG was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $794.26 million, and for the current fiscal year, it is $2.94 on revenues of $3.36 billion [7] 分组3 - The Building Products - Miscellaneous industry, to which ECG belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, which may impact stock performance [8] - Another company in the same industry, Construction Partners, is expected to report quarterly earnings of $1.08 per share, reflecting a year-over-year change of +86.2%, with revenues projected at $879 million, up 63.3% from the previous year [9][10]

Financial Performance - Revenues increased 29.7% to $986.8 million in Q3 2025, compared to $761.0 million in Q3 2024[9] - Net income rose 36.4% to $57.0 million, with a net income margin of 5.8% in Q3 2025[12] - EBITDA increased 36.9% to $89.0 million, with an EBITDA margin of 9.0% in Q3 2025[14] - Everus reported operating revenues of $986.8 million for Q3 2025, a 29.7% increase from $761.0 million in Q3 2024[51] - Gross profit for Q3 2025 was $124.2 million, compared to $89.9 million in Q3 2024, reflecting a significant increase in profitability[51] - Basic earnings per share for Q3 2025 was $1.12, compared to $0.82 in Q3 2024, indicating strong earnings growth[51] - Operating income for Q3 2025 was $72.4 million, a 34.7% increase from $53.7 million in Q3 2024, highlighting improved operational efficiency[51] - Net income for the nine months ended September 30, 2025, was $146.5 million, up 34.4% from $109.0 million in the same period of 2024[55] - Net income for the twelve months ended September 30, 2025, was $180.9 million, an increase from $143.4 million for the twelve months ended December 31, 2024, representing a growth of 26%[72] - EBITDA for the twelve months ended September 30, 2025, reached $293.3 million, compared to $232.2 million for the twelve months ended December 31, 2024, reflecting a 26% increase[72] Segment Performance - The E&M segment saw revenues grow 42.9% to $767.3 million, driven by strong demand in the data center submarket[16] - The E&M segment generated revenues of $767.3 million in Q3 2025, up 42.9% from $536.9 million in Q3 2024, while the T&D segment saw a slight decline of 2.2% to $223.4 million[57] - The E&M segment contributed $66.9 million to EBITDA for the three months ended September 30, 2025, a significant increase of 64.0% from $40.8 million in the prior year[67] Guidance and Future Outlook - The company raised its 2025 revenue guidance to a range of $3.55 billion to $3.65 billion, up from previous estimates of $3.3 billion to $3.4 billion[39] - Everus has revised its full-year 2025 EBITDA guidance to a range of $290.0 million to $300.0 million, up from the previous guidance of $240.0 million to $255.0 million[69] - Everus plans to discuss its future performance and financial guidance during the Q3 earnings call scheduled for November 5, 2025[43] Cash Flow and Capital Expenditures - Operating cash flows for the nine months ended September 30, 2025, were $108.6 million, up from $82.7 million in the same period of 2024[32] - Free cash flow increased to $74.8 million for the nine months ended September 30, 2025, compared to $57.8 million in the same period of 2024[34] - Capital expenditures for 2025 are expected to be in the range of $65 million to $70 million[36] - Capital expenditures for the nine months ended September 30, 2025, were $42.1 million, compared to $34.5 million in 2024, indicating a 22% increase in investment[77] - The company reported net cash used in investing activities of $33.6 million for the nine months ended September 30, 2025, compared to $25.5 million in 2024[77] Balance Sheet and Leverage - Total assets increased to $1.62 billion as of September 30, 2025, from $1.29 billion at the end of 2024, showing robust asset growth[53] - The company's total liabilities increased to $1.05 billion as of September 30, 2025, compared to $865.9 million at the end of 2024[53] - Net leverage improved to 0.5x as of September 30, 2025, compared to 1.0x as of December 31, 2024[30] - Total net debt decreased to $158.8 million as of September 30, 2025, down from $230.1 million as of December 31, 2024, indicating improved financial leverage[73] - The company's net leverage ratio improved to 0.5x as of September 30, 2025, compared to 1.0x as of December 31, 2024[73] Other Financial Metrics - Cash, cash equivalents, and restricted cash rose to $149.2 million at the end of Q3 2025, up from $86.0 million at the end of 2024[54] - Interest expense, net for the nine months ended September 30, 2025, was $18.8 million, an increase from $14.0 million for the nine months ended December 31, 2024[72] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $108.6 million, up from $82.7 million in 2024, representing a 31% increase[77] - The EBITDA margin for the three months ended September 30, 2025, improved to 9.0%, up from 8.5% in the prior year[67] - The company is unable to provide a reconciliation of full-year 2025 EBITDA margin guidance to its nearest GAAP measure due to the unpredictability of non-GAAP adjustments[78]

Core Viewpoint - Everus Construction Group reported strong financial results for the third quarter of 2025, with significant revenue and EBITDA growth, and raised its guidance for the full year 2025, reflecting robust business momentum and project execution [1][3][6]. Financial Performance - Revenues increased by 29.7% to $986.8 million in Q3 2025, compared to $761.0 million in Q3 2024 [7]. - Net income rose by 36.4% to $57.0 million, with a net income margin of 5.8% [10][11]. - EBITDA grew by 36.9% to $89.0 million, with an EBITDA margin of 9.0% [12][10]. Segment Performance - The Electrical and Mechanical (E&M) segment saw revenues increase by 42.9% to $767.3 million, driven by strong demand in the commercial and renewables markets [14]. - The Transmission and Distribution (T&D) segment experienced a slight revenue decline of 2.2% to $223.4 million, although net income increased by 9.7% to $20.3 million [18][19]. Backlog and Market Activity - Backlog as of September 30, 2025, increased to $2.95 billion, up 6.0% from December 31, 2024 [13]. - Bidding activity remains healthy across commercial, industrial, and utility markets, indicating continued growth opportunities [4]. Guidance and Future Outlook - The company raised its full-year 2025 revenue guidance to a range of $3.55 billion to $3.65 billion and EBITDA guidance to $290 million to $300 million [6][38]. - The company expects ongoing momentum into 2026, focusing on long-term shareholder value [6]. Financial Position - As of September 30, 2025, the company had a net leverage of 0.5 times and approximately $340 million in available liquidity, indicating a strong financial position [5][29]. - Working capital increased to $523.5 million, driven by project timing and workload activity [30]. Cash Flow and Capital Expenditures - Operating cash flows for the nine months ended September 30, 2025, were $108.6 million, up from $82.7 million in the prior year [31]. - Capital expenditures increased to $42.1 million, reflecting investments in vehicles, equipment, and building to support growth [32].

Core Points - Everus Construction Group will release its third quarter 2025 results on November 4, after market close, followed by a webcast on November 5 at 10:30 a.m. EST to discuss the financial results and recent events [1][2] Company Overview - Everus Construction Group, Inc. is a member of the S&P SmallCap 600® index, providing a full spectrum of construction services across the United States, including electrical and mechanical contracting, and transmission and distribution services [3] Financial Performance - The company reported second quarter 2025 revenues of $921.5 million, representing a 31.0% increase year-over-year. Net income for the same period was $52.8 million, up 35.4%, with a net income margin of 5.7% [7]

Core Insights - Everus Construction Group's stock price has more than doubled in the last seven months due to its customer base, which includes electric utilities experiencing growth spurts [1] Company Overview - Everus Construction Group operates as a contractor in two segments: Electrical & Mechanical [1] - The company has a beneficial long position in its shares, indicating confidence in its future performance [1] Industry Context - The growth of electric utilities is a significant factor contributing to the success of Everus Construction Group [1] - The founder and CEO of Starks Energy Economics, LLC, Laura Starks, has extensive experience in the energy sector, covering various segments including utilities and energy service companies [1]

Core Insights - Everus Construction Group, Inc. (ECG) has shown strong year-to-date performance, gaining approximately 33.5% compared to the average return of 4.1% for the Construction sector [4] - ECG currently holds a Zacks Rank of 1 (Strong Buy), indicating positive analyst sentiment and a favorable earnings outlook [3][4] - The Zacks Consensus Estimate for ECG's full-year earnings has increased by 16.2% over the past quarter, reflecting improved analyst expectations [4] Company Performance - ECG is one of 92 stocks in the Construction sector, which ranks 15 in the Zacks Sector Rank [2] - Within the Building Products - Miscellaneous industry, ECG is outperforming its peers, as this industry has only gained about 1.3% year-to-date [6] - Another notable stock in the Construction sector, Frontdoor (FTDR), has also outperformed with a year-to-date return of 19.5% and a Zacks Rank of 2 (Buy) [5][6] Analyst Sentiment - The Zacks Rank system emphasizes earnings estimates and revisions, which has positively influenced ECG's ranking and performance [3] - The improvement in ECG's earnings outlook is supported by a significant increase in the consensus EPS estimate over the last three months [5][4]

Core Insights - Middle Coast Investing's third-quarter 2025 investor letter indicates a favorable performance, with its portfolio outperforming the S&P 500, returning 9.6% compared to the S&P 500's 7.8% [1] - The Core U.S. portfolios returned 10%, while the Russell 2000 returned 12%, the S&P 600 returned 8.7%, and the Nasdaq generated 11.2% during the same period [1] - European Portfolios appreciated by 5.5% in Q3 2025 [1] Company Focus: Everus Construction Group, Inc. (NYSE:ECG) - Everus Construction Group, Inc. is highlighted as a strong investment, with a one-month return of 4.084% and a year-to-date gain of 21.78% [2] - As of October 3, 2025, Everus Construction Group's stock closed at $80.07 per share, with a market capitalization of $4.084 billion [2] - The company is noted for its role in the construction sector, particularly benefiting from the data center boom driven by AI [3] Performance and Market Position - Everus Construction Group reported second-quarter net sales of $921.5 million, marking a 31% increase from Q2 2024 [4] - The number of hedge funds holding Everus Construction Group decreased from 29 to 25 from the previous quarter [4] - Despite the potential of Everus Construction Group, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk [4]

Group 1 - Everus Construction Group, Inc. (ECG) is currently ranked 13 in the Zacks Sector Rank among 88 companies in the Construction group [2] - ECG has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for ECG's full-year earnings has increased by 15.4% in the past quarter, reflecting stronger analyst sentiment [4] Group 2 - ECG has returned approximately 19.9% year-to-date, outperforming the average return of 5.5% for Construction companies [4] - ECG belongs to the Building Products - Miscellaneous industry, which is ranked 146 in the Zacks Industry Rank, with an average gain of 0.6% this year [6] - In comparison, MasTec (MTZ), another Construction stock, has returned 42% year-to-date and belongs to the Building Products - Heavy Construction industry, currently ranked 4 with a year-to-date increase of 34.1% [5][7]

Group 1 - Everus Construction Group, Inc. (ECG) is outperforming its peers in the Construction sector with a year-to-date return of approximately 19.3%, compared to the sector average of 6.6% [4] - ECG currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for ECG's full-year earnings has increased by 15.4% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - ECG is part of the Building Products - Miscellaneous industry, which has seen an average gain of 2% year-to-date, indicating that ECG is performing better than its industry peers [6] - MasTec (MTZ), another Construction stock, has returned 33.5% since the beginning of the year and also holds a Zacks Rank of 1 (Strong Buy) [5] - The Building Products - Heavy Construction industry, to which MasTec belongs, is currently ranked 7 and has increased by 31.1% year-to-date [6]