Everus Construction Group, Inc.(ECG) - 2025 Q2 - Quarterly Results

Everus Q2 2025 Earnings Release Management Commentary Management attributes strong Q2 results to market momentum and project execution, highlighting significant growth and raising full-year 2025 guidance - CEO Jeffrey S. Thiede attributed the strong Q2 performance to end-market momentum, excellent project execution, and long-term customer relationships[5] - Backlog grew 24% year-over-year, with balanced growth in both Transmission & Distribution (T&D) and Electrical & Mechanical (E&M) segments, driven by opportunities in commercial, utility, renewables, and institutional markets[6] - The company raised its 2025 guidance based on strong first-half results, efficient project execution, and favorable project timing[7] Financial Performance The company reported record Q2 and H1 2025 results, with significant year-over-year growth in revenue, net income, and EBITDA Second Quarter 2025 Consolidated Results Q2 2025 saw record results with revenue up 31.0% to $921.5 million and net income growing 35.4% to $52.8 million Q2 2025 Consolidated Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $921.5M | $703.3M | +31.0% | | Gross Profit | $119.9M | $88.5M | +35.5% | | Net Income | $52.8M | $39.0M | +35.4% | | Diluted EPS | $1.03 | $0.76 | +35.5% | | EBITDA | $84.2M | $62.1M | +35.6% | | Backlog (as of June 30) | $3.0B | $2.4B | +23.9% | - Gross profit margin improved to 13.0% from 12.6% in Q2 2024, primarily due to project timing and efficiency gains[8] - Selling, general and administrative (SG&A) expenses increased to $47.4 million, up from $37.2 million, to support operational growth[9] Second Quarter 2025 Segment Results The Electrical & Mechanical segment drove growth with a 41.6% revenue increase, while the Transmission & Distribution segment also saw solid growth E&M Segment Q2 2025 Results (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $713.6M | $503.8M | +41.6% | | Net Income | $47.3M | $29.3M | +61.4% | | EBITDA | $63.7M | $41.5M | +53.5% | | Backlog | $2.6B | $2.1B | +24.4% | T&D Segment Q2 2025 Results (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $212.4M | $206.8M | +2.7% | | Net Income | $17.8M | $14.8M | +20.3% | | EBITDA | $30.4M | $25.5M | +19.2% | | Backlog | $410.1M | $339.6M | +20.8% | Six Months Ended June 30, 2025 Consolidated Results First-half 2025 revenues grew 31.5% to $1.75 billion, with net income rising 33.2% to $89.5 million compared to the prior year First Half 2025 Consolidated Financial Highlights (vs. H1 2024) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1.75B | $1.33B | +31.5% | | Gross Profit | $212.4M | $163.3M | +30.1% | | Net Income | $89.5M | $67.2M | +33.2% | | Diluted EPS | $1.75 | $1.32 | +32.6% | | EBITDA | $146.0M | $108.9M | +34.1% | Financial Position and Cash Flow The company maintained a strong financial position with reduced net leverage, and operating cash flow increased substantially year-over-year Balance Sheet and Leverage Summary | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Unrestricted Cash | $64.5M | $69.9M | | Gross Debt | $292.5M | $300.0M | | Working Capital | $474.7M | $403.9M | | Net Leverage | 0.8x | 1.0x | Cash Flow Summary (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Operating Cash Flow | $32.5M | $3.7M | | Capital Expenditures | $31.6M | $16.5M | | Free Cash Flow | $6.5M | ($7.4M) | Business Outlook Everus raised its full-year 2025 guidance for revenue and EBITDA, reflecting confidence in its project pipeline and operational execution Updated Full-Year 2025 Guidance | Metric | New Guidance | Previous Guidance | | :--- | :--- | :--- | | Revenues | $3.3B - $3.4B | $3.0B - $3.1B | | EBITDA | $240M - $255M | $210M - $225M | - The company affirmed its full-year 2025 gross capital expenditures guidance to be in the range of $65 million to $70 million[35] Financial Statements The unaudited condensed consolidated financial statements detail significant year-over-year growth in revenue, profitability, and cash generation Condensed Consolidated Statements of Income The income statement details significant revenue and net income growth for both the second quarter and first half of 2025 Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $921,466 | $703,373 | $1,748,095 | $1,329,062 | | Gross Profit | $119,869 | $88,577 | $212,362 | $163,294 | | Operating Income | $72,507 | $51,309 | $123,491 | $90,193 | | Net Income | $52,843 | $38,972 | $89,515 | $67,186 | Condensed Consolidated Balance Sheets The balance sheet reflects growth in total assets to $1.48 billion, driven by higher business activity and increased stockholders' equity Balance Sheet Highlights (in thousands) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,089,026 | $917,229 | | Total Assets | $1,481,377 | $1,288,463 | | Total Current Liabilities | $614,314 | $513,370 | | Total Liabilities | $966,968 | $865,851 | | Total Stockholders' Equity | $514,409 | $422,612 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities improved significantly to $32.5 million for the first half of 2025, driven by higher net income Cash Flow Highlights (Six Months Ended June 30, in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32,470 | $3,751 | | Net cash used in investing activities | ($25,686) | ($11,496) | | Net cash provided by (used in) financing activities | ($8,088) | $6,500 | | Decrease in cash, cash equivalents and restricted cash | ($1,304) | ($1,245) | Supplementary Information This section provides detailed segment performance data and reconciliations of GAAP to non-GAAP financial measures like EBITDA and Free Cash Flow Segment and Other Financial Information Total backlog grew 23.9% year-over-year to nearly $3.0 billion, with the E&M segment contributing the majority at $2.6 billion Revenues by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Electrical & Mechanical | $713.6 | $503.8 | +41.6% | | Transmission & Distribution | $212.4 | $206.8 | +2.7% | Backlog by Segment (in millions) | Segment | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Electrical & Mechanical | $2,568.1 | $2,507.0 | $2,063.8 | | Transmission & Distribution | $410.1 | $273.6 | $339.6 | | Total | $2,978.2 | $2,780.6 | $2,403.4 | Non-GAAP Financial Measures This section provides reconciliations for key non-GAAP metrics, including EBITDA, Net Debt, Net Leverage, and Free Cash Flow Reconciliation of Net Income to EBITDA (Q2 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net income | $52.8 | | Interest expense, net | $4.8 | | Income taxes | $19.4 | | Depreciation and amortization | $7.2 | | EBITDA | $84.2 | Calculation of Net Leverage (as of June 30, 2025, in millions) | Line Item | Amount | | :--- | :--- | | Total gross debt | $292.5 | | Less: cash and cash equivalents | ($64.5) | | Total net debt | $228.0 | | Trailing 12-month EBITDA | $269.3 | | Net leverage | 0.8x | Reconciliation to Free Cash Flow (H1 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $32.5 | | Purchases of property, plant and equipment | ($31.6) | | Cash proceeds from sale of property | $5.6 | | Free cash flow | $6.5 |