Everus Construction Group Reports Strong Q1 Earnings

Everus Construction Group, Inc. ((ECG)) has held its Q1 earnings call. Read on for the main highlights of the call.

Everus Construction Group, Inc. recently held its earnings call, revealing a robust performance marked by significant revenue and backlog growth, particularly in the Electrical and Mechanical (E&M) segment. The company is strategically positioned for future growth, despite facing challenges such as weather-related delays in the Transmission and Distribution (T&D) segment and uncertainties from tariffs and trade. Overall, the positives significantly outweigh the negatives, indicating a strong performance and strategic positioning for future growth.

Significant Revenue Growth

Everus Construction Group reported a remarkable 32% increase in first-quarter revenue, amounting to $826.6 million. This growth was primarily driven by a 47% surge in the E&M segment, although the T&D segment saw a slight decline of 2% due to weather-related delays.

Strong Backlog Performance

The company’s total backlog at the end of the first quarter reached $3.1 billion, marking a 10% increase from the end of the previous year and a 41% rise from the prior year period. The E&M backlog alone increased by an impressive 46%.

EBITDA Growth

Everus achieved a 32% increase in first-quarter EBITDA, reaching $61.8 million, with a consistent margin of 7.5%. This growth underscores the company’s strong project execution capabilities.

Strategic Investments and Expansion

The company has increased its capital expenditure to $18.5 million, which includes investment in a new prefabrication facility in Kansas City, expanding its footprint by approximately 128,000 square feet.

Robust Demand in Key Markets

Everus continues to experience strong demand trends in data centers, hospitality, and high-tech reshoring markets, which are key areas for the company’s growth strategy.

Appointment of New VP for Corporate Development

To enhance its M&A capabilities, Everus appointed Tim Sznewajs as Vice President of Corporate Development and Strategy, signaling a strategic focus on growth through acquisitions.

Weather-Related Revenue Decline in T&D

The T&D segment experienced a 2% revenue decline due to weather-related delays in the utility business, highlighting the challenges faced in this segment.

Tariff and Trade Uncertainties

The company is navigating dynamic operating conditions due to tariff and trade uncertainties, necessitating strategic adjustments in procurement and contract terms.

Incremental Stand-Alone Operating Costs

Incremental stand-alone operating costs are trending in line with expectations, with a full-year run rate of $28 million.

Forward-Looking Guidance

Everus reaffirmed its 2025 guidance, expecting revenues between $3 billion and $3.1 billion and EBITDA ranging from $210 million to $225 million. The company emphasized its strategic focus on talent acquisition and capital allocation, including investments in new facilities and enhancing M&A capabilities.

In summary, Everus Construction Group, Inc.’s earnings call highlighted a strong financial performance with significant growth in revenue and backlog. Despite some challenges, the company’s strategic investments and robust demand in key markets position it well for future growth. The reaffirmed guidance further underscores Everus’s confidence in its growth trajectory.