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