Financial Data and Key Metrics Changes - For Q3 2025, revenue increased by 30% year-over-year, reaching $986.8 million, driven by strong performance in the electrical and mechanical (E&M) segment [15][5] - EBITDA for the third quarter rose by 37% from the previous year, totaling $89 million, with an EBITDA margin of 9%, up 50 basis points from 8.5% [15][16] - Total backlog at the end of Q3 was $2.95 billion, up 2% from the same period last year and up 6% from the end of 2024 [7][16] Business Line Data and Key Metrics Changes - E&M segment revenues increased by 43% to $767.3 million, primarily driven by growth in commercial and renewables markets, particularly data centers [15][17] - T&D segment revenues were $223.4 million, a slight decrease from $228.5 million last year, attributed to timing and a decline in utility work [15][18] - T&D backlog increased by 19% year-over-year, reflecting strong demand in the utility end market [16] Market Data and Key Metrics Changes - The company noted robust demand for power transmission infrastructure upgrades in the U.S., driven by factors such as data centers and electric vehicle adoption [9][10] - The data center submarket continues to show strong demand with no signs of weakening, contributing significantly to revenue and backlog growth [9][10] Company Strategy and Development Direction - The company is focused on disciplined project selection and maintaining a strong pipeline of opportunities that align with strategic objectives [8][10] - The "Forever strategy" emphasizes attracting and retaining talent, which is critical for supporting growth objectives and operational excellence [11][12] - The company is actively evaluating M&A opportunities to expand geographically and enhance service offerings in both T&D and E&M segments [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain growth momentum into 2026, supported by a strong backlog and favorable market trends [22][23] - The company anticipates a solid finish to the year, raising its full-year revenue guidance to a range of $3.55 billion to $3.65 billion [21][22] Other Important Information - Operating cash flows for the first nine months of 2025 were $108.6 million, up from $82.7 million in the same period last year [19] - The company plans to invest between $65 million and $70 million in capital expenditures for 2025 [19] Q&A Session Summary Question: Margin sustainability and future expectations - Management indicated that while margin expansion is challenging to forecast, strong execution has led to improved margins this quarter, and they will continue to focus on margin uplift [27][28] Question: Data center project strength and timelines - Management highlighted strong demand for data center projects in regions like the Upper Midwest and Southwest, with ongoing visibility into future projects [29][31] Question: Organic growth expectations for next year - Management remains optimistic about organic growth, citing strong demand and a diversified end market strategy [36][37] Question: Pre-construction projects and backlog conversion - Some projects in pre-construction have accelerated, contributing to solid revenue this quarter, while others remain in early phases, providing visibility for the next year [40][42] Question: Las Vegas market activity and resource allocation - Management noted diversification in the Las Vegas market, with ongoing projects in hospitality and data centers, and the ability to pivot resources as needed [44][45] Question: Data center end market revenue progression - Data centers have become a significant part of the business, with strong demand and a long runway for opportunities [48][49] Question: M&A opportunities and capital deployment - The company is actively pursuing M&A opportunities, with a broader and deeper funnel than a year ago, focusing on high-integrity companies that align with their strategic priorities [51]

Financial Data and Key Metrics Changes - For Q3 2025, revenue increased by 30% year-over-year, reaching $986.8 million, driven by strong performance in the electrical and mechanical (E&M) segment [15][5] - EBITDA for the third quarter rose by 37% compared to the previous year, totaling $89 million, with an EBITDA margin of 9%, up 50 basis points from 8.5% [15][16] - Total backlog at the end of Q3 was $2.95 billion, reflecting a 2% increase from the same period last year and a 6% increase from the end of 2024 [7][16] Business Line Data and Key Metrics Changes - E&M segment revenues increased by 43% to $767.3 million, primarily driven by growth in commercial and renewables markets, particularly in the data center submarket [15][17] - T&D segment revenues were $223.4 million, a slight decrease from $228.5 million last year, attributed to timing and reduced storm work, while T&D backlog increased by 19% year-over-year [15][18] Market Data and Key Metrics Changes - The demand for power transmission infrastructure upgrades in the U.S. is unprecedented, driven by factors such as data centers, electric vehicle adoption, and industrial reshoring, creating a multi-year tailwind for T&D services [9][10] - The data center submarket continues to show strong demand with no signs of weakening, with significant projects located in the Upper Midwest, Southwest, and Pacific Northwest [31][49] Company Strategy and Development Direction - The company is focused on maintaining a disciplined approach to project selection, emphasizing opportunities that align with strategic objectives and offer attractive returns [8][10] - The "Forever strategy" aims to attract and retain key talent, with significant investments in training and development to support growth objectives [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue building backlog momentum, citing robust underlying demand drivers across key markets [7][9] - The company raised its 2025 revenue guidance to a range of $3.55 billion to $3.65 billion, reflecting strong business momentum and elevated backlog levels [21][22] Other Important Information - Operating cash flows for the first nine months of 2025 were $108.6 million, up from $82.7 million in the same period last year, with CapEx increasing to $42.1 million [19] - The company is actively evaluating M&A opportunities, with a broader and deeper funnel than a year ago, focusing on companies that align with its strategic priorities [51] Q&A Session Summary Question: Margin sustainability and future expectations - Management acknowledged that while margin expansion is challenging to forecast, strong execution has led to improved margins this fiscal year, and they will continue to focus on margin uplift [27][28] Question: Data center project strength and timelines - Management highlighted strong demand for data center projects in specific regions and noted that larger projects are entering the backlog earlier than expected [29][31] Question: Organic growth expectations for next year - Management remains optimistic about strong demand for services and believes they can secure sufficient backlog to support growth, despite potential cyclicality [36][37] Question: Pre-construction projects and backlog conversion - Some projects in pre-construction have accelerated, contributing to solid revenue, while others remain in early phases, providing visibility for the next year [40][42] Question: Local market activity in Las Vegas - Management reported a diversified approach in Las Vegas, with ongoing projects in hospitality and data centers, and noted that their backlog in these areas has increased [44][45] Question: Data center end market revenue progression - Management confirmed that data centers have become a significant part of their business, with strong demand and a long runway for opportunities [48][49] Question: M&A opportunities and capital deployment - The company is in a strong position to pursue meaningful acquisitions, with an active corporate development team and a focus on strategic alignment [51]

Financial Data and Key Metrics Changes - For Q3 2025, revenue reached $986.8 million, a 30% increase compared to the same period last year, driven by strong growth in the electrical and mechanical (E&M) segment [15][6] - EBITDA for the third quarter was $89 million, reflecting a 37% increase from the prior year, with an EBITDA margin of 9%, up 50 basis points from 8.5% in the previous year [15][16] - Total backlog at the end of Q3 was $2.95 billion, up 2% year-over-year and 6% from the end of 2024, indicating solid growth despite strong revenue performance [7][16] Business Line Data and Key Metrics Changes - E&M segment revenues increased 43% to $767.3 million, primarily driven by growth in commercial and renewables markets, particularly in the data center submarket [15][17] - T&D segment revenues were $223.4 million, a slight decrease from $228.5 million last year, attributed to timing and a decline in utility work, although T&D EBITDA increased 11% to $33.8 million [15][18] Market Data and Key Metrics Changes - The T&D backlog increased by 19% year-over-year, driven by utility end market growth, particularly in undergrounding and substation work [16][18] - The company is experiencing strong demand in the data center submarket, with no signs of weakening, and is strategically positioned in key geographic locations for data center development [9][10] Company Strategy and Development Direction - The company is focused on maintaining a disciplined approach to project selection, emphasizing opportunities that align with strategic objectives and offer attractive returns [8][10] - The "Forever" strategy continues to underpin sustainable growth, with a strong emphasis on attracting and retaining talent, which is critical for supporting growth objectives [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue building backlog momentum, citing robust underlying demand drivers across key markets [7][9] - The company anticipates ongoing strong momentum into 2026, supported by favorable trends in core markets and a solid backlog position [20][22] Other Important Information - The company raised its 2025 guidance, now forecasting revenues between $3.55 billion and $3.65 billion, and EBITDA between $290 million and $300 million, reflecting strong business momentum [20][21] - Operating cash flows for the first nine months of 2025 were $108.6 million, up from $82.7 million in the same period last year, indicating strong operational results [19] Q&A Session Summary Question: Thoughts on margin sustainability - Management noted that execution upside is hard to forecast, but strong execution has led to margin improvements this fiscal year, with a focus on maintaining this uplift going forward [27][28] Question: Data center project strength and timelines - Management highlighted strong demand for data center projects, particularly in the Upper Midwest and Southwest regions, with ongoing visibility into future projects [29][30] Question: Organic growth expectations for next year - Management remains optimistic about strong demand for services and the ability to secure backlog to support growth, despite potential cyclicality [35][36] Question: Status of pre-construction projects - Some projects in pre-construction have accelerated, contributing to solid revenue, while others remain in early phases, providing visibility for the next year [39][40] Question: Las Vegas market activity - Management indicated a diversified approach in Las Vegas, with ongoing projects in hospitality and data centers, and a positive outlook for 2025 despite potential slowdowns [42][44] Question: Data center end market revenue progression - Data centers have become a significant part of the business, with strong demand and a long runway for opportunities, while maintaining diversification to mitigate risks [48][49] Question: M&A opportunities and strategy - The company is actively evaluating M&A opportunities, with a broader and deeper funnel than a year ago, focusing on companies that align with strategic priorities [51][52]

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]