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Everus Reports Strong Third Quarter 2024 Results

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Everus Construction Group (NYSE: ECG) reported strong Q3 2024 financial results with revenues of $761.0 million, up 6.1% year-over-year. Net income increased 16.1% to $41.8 million, with earnings per share of 82 cents, up 15.5%. EBITDA grew 12.1% to $65.0 million. The company's backlog reached a record $2.88 billion, up 43.5% from prior year-end. Everus completed its spinoff from MDU Resources Group on Oct. 31, 2024, and reiterated its 2024 guidance with expected revenues of $2.65-2.85 billion and EBITDA of $220-240 million.

Everus Construction Group (NYSE: ECG) ha riportato forti risultati finanziari per il terzo trimestre del 2024, con ricavi di $761,0 milioni, in aumento del 6,1% rispetto all'anno precedente. L'utile netto è aumentato del 16,1%, raggiungendo $41,8 milioni, con un utile per azione di 82 centesimi, in crescita del 15,5%. L'EBITDA è cresciuto del 12,1%, arrivando a $65,0 milioni. Il portafoglio commesse dell'azienda ha raggiunto un record di $2,88 miliardi, con un incremento del 43,5% rispetto alla fine dell'anno precedente. Everus ha completato la sua scissione da MDU Resources Group il 31 ottobre 2024 e ha ribadito le sue previsioni per il 2024, con ricavi attesi di $2,65-2,85 miliardi e un EBITDA compreso tra $220-240 milioni.

Everus Construction Group (NYSE: ECG) reportó sólidos resultados financieros en el tercer trimestre de 2024, con ingresos de $761,0 millones, un aumento del 6,1% en comparación con el año anterior. Los ingresos netos aumentaron un 16,1%, alcanzando $41,8 millones, con ganancias por acción de 82 centavos, un incremento del 15,5%. El EBITDA creció un 12,1% hasta $65,0 millones. La cartera de pedidos de la compañía alcanzó un récord de $2,88 mil millones, un aumento del 43,5% en comparación con el cierre del año anterior. Everus completó su escisión de MDU Resources Group el 31 de octubre de 2024 y reiteró su guía para 2024, con ingresos esperados de $2,65 a $2,85 mil millones y un EBITDA de $220 a $240 millones.

Everus Construction Group (NYSE: ECG)는 2024년 3분기 재무 결과를 발표하며 $761.0 백만의 수익을 기록하여 전년 대비 6.1% 증가했다고 보고했습니다. 순이익은 16.1% 증가하여 $41.8 백만에 달하며, 주당 순이익은 82센트로 15.5% 증가했습니다. EBITDA는 12.1% 성장하여 $65.0 백만에 이르렀습니다. 회사의 수주 잔고는 $2.88 억으로 기록을 세우며 지난해 말 대비 43.5% 증가했습니다. Everus는 2024년 10월 31일 MDU Resources Group에서 분리 완료하였고, 2024년 예상 수익을 $2.65-2.85억, EBITDA는 $220-240 백만원으로 재확인했습니다.

Everus Construction Group (NYSE: ECG) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus de $761,0 millions, en hausse de 6,1% par rapport à l'année précédente. Le revenu net a augmenté de 16,1%, atteignant $41,8 millions, avec un bénéfice par action de 82 cents, en hausse de 15,5%. L'EBITDA a crû de 12,1% pour atteindre $65,0 millions. Le carnet de commandes de l'entreprise a atteint un niveau record de $2,88 milliards, en hausse de 43,5% par rapport à la fin de l'année précédente. Everus a complété sa séparation de MDU Resources Group le 31 octobre 2024 et a réitéré ses prévisions pour 2024, avec des revenus attendus entre $2,65 et $2,85 milliards et un EBITDA de $220 à $240 millions.

Everus Construction Group (NYSE: ECG) hat starke Finanzresultate für das dritte Quartal 2024 veröffentlicht, mit Einnahmen von $761,0 Millionen, was einem Anstieg von 6,1% im Jahresvergleich entspricht. Der Nettogewinn stieg um 16,1% auf $41,8 Millionen, mit einem Gewinn pro Aktie von 82 Cent, was einem Anstieg von 15,5% entspricht. Das EBITDA wuchs um 12,1% auf $65,0 Millionen. Der Auftragsbestand des Unternehmens erreichte einen Rekordwert von $2,88 Milliarden, ein Anstieg von 43,5% im Vergleich zum Vorjahr. Everus schloss am 31. Oktober 2024 die Abspaltung von MDU Resources Group ab und bekräftigte seine Prognosen für 2024 mit erwarteten Einnahmen von $2,65-2,85 Milliarden und einem EBITDA von $220-240 Millionen.

Positive
  • Revenue increased 6.1% to $761.0 million
  • Net income grew 16.1% to $41.8 million
  • EBITDA increased 12.1% to $65.0 million
  • Record backlog of $2.88 billion, up 43.5%
  • Operating cash flows improved to $82.7 million from $61.4 million
  • Free cash flow increased to $57.8 million from $45.5 million
Negative
  • T&D segment net income margin declined 20 basis points to 8.1%
  • T&D segment EBITDA margin decreased 50 basis points to 13.3%
  • Drew $40.0 million under credit facility for working capital needs

Insights

The Q3 2024 results demonstrate robust financial performance with several key highlights: revenues increased 6.1% to $761.0 million, net income grew 16.1% to $41.8 million and EBITDA rose 12.1% to $65.0 million. Most impressively, backlog reached $2.88 billion, up 43.5% from prior year-end, indicating strong future growth potential.

The company's successful spinoff from MDU Resources positions it for more focused capital allocation. With a new $525 million credit facility and healthy working capital of $327 million, Everus has substantial financial flexibility for organic growth and M&A opportunities. The data center and grid modernization exposure provides secular growth tailwinds, while margin improvements across both segments demonstrate operational efficiency.

The record backlog of $2.88 billion is particularly noteworthy in the current construction market environment. The E&M segment's strong performance in data centers and commercial projects, coupled with T&D segment's growth in utility and transportation markets, shows strategic positioning in high-growth infrastructure sectors. The 100 basis point improvement in E&M net income margin to 5.5% reflects excellent project execution and operational efficiency.

The company's focus on data center work and grid modernization aligns with major infrastructure investment trends. The reaffirmed guidance of $2.65-2.85 billion in revenue suggests management's confidence in maintaining momentum despite broader market uncertainties.

BISMARCK, N.D.--(BUSINESS WIRE)-- Everus Construction Group (NYSE: ECG) today reported financial results for the quarter ended Sept. 30, 2024.

Third Quarter 2024 Summary
(all comparisons versus the prior-year period unless otherwise noted)

  • Revenues of $761.0 million, +6.1%.
  • Net income of $41.8 million, +16.1%; net income margin of 5.5%, +50 basis points.
  • Earnings of 82 cents per share, +15.5%.
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) of $65.0 million, +12.1%; EBITDA margin of 8.5%, +40 basis points.
  • Backlog of $2.88 billion, +43.5% from prior year-end.
  • Reiterated 2024 full-year guidance.
  • Completed spinoff from MDU Resources Group, Inc. on Oct. 31, 2024.

Management Commentary

“This has been a transformative period in our company’s evolution, highlighted by our successful tax-free spinoff from MDU Resources on Oct. 31,” said Jeffrey S. Thiede, president and CEO of Everus. “I want to thank our team members for their continued efforts and dedication that enabled us to successfully transition to being an independent, public company, which better positions us to effectively allocate capital and drive profitable growth while generating long-term value for our shareholders.

“Our third quarter results demonstrate the strength of our scaled national platform and market-leading local brands that are benefiting from strong secular tailwinds, including data center work,” Thiede said. “Third quarter revenue increased 6% with balanced growth across both our segments. With our all-time record backlog of $2.88 billion at the end of the quarter, which is up $873.9 million since the start of the year, and our disciplined focus on our 4EVER strategy, we are well-positioned to deliver on our long-term targets of 5% to 7% organic revenue growth and 7% to 9% EBITDA growth.”

Thiede said, “Based on our results through the first nine months of the year, continued strong momentum in our end markets and our disciplined focus on execution, we are reiterating our 2024 financial guidance that calls for revenues in the range of $2.65 billion to $2.85 billion and EBITDA in the range of $220 million to $240 million, with EBITDA margins expected to be higher than in 2023. We are encouraged by the opportunities in our key markets, where we are strategically positioned to take advantage of powerful megatrends driving data center growth, grid modernization and re-shoring of high-tech manufacturing. We are excited about our trajectory and are fully focused on delivering long-term value to our shareholders.”

Third Quarter 2024 Consolidated Results

Everus reported revenues increased to $761.0 million in the third quarter of 2024, compared to $717.4 million in the third quarter of 2023. Electrical and mechanical revenues grew $20.0 million, or 3.9%, and transmission and distribution revenues rose $24.0 million, or 11.7%.

The company's gross profit increased to $89.9 million in the third quarter of 2024, compared to $84.9 million in the third quarter of 2023. Higher revenues and consistent gross profit margin of 11.8% drove the increase.

Everus' net income increased to $41.8 million, or 82 cents per share, in the third quarter of 2024, compared to $36.0 million, or 71 cents per share, in the third quarter of 2023. The increase was primarily from higher revenues and income from joint venture activity and lower interest expense, partially offset by higher selling, general and administrative expenses and increased income taxes due to higher income before taxes. Net income margin was 5.5% in the third quarter of 2024, up 50 basis points compared to 5.0% in the third quarter of 2023.

The company's EBITDA increased to $65.0 million in the third quarter of 2024, compared to $58.0 million in the third quarter of 2023. The increase was primarily from higher revenues and income from joint ventures, partially offset by higher selling, general and administrative expenses. EBITDA margin was 8.5% in the third quarter of 2024, up 40 basis points compared to 8.1% in the third quarter of 2023. See the Non-GAAP Measures sections of this news release for definitions and reconciliations of EBITDA and EBITDA margin.

Everus' backlog increased to $2.88 billion at Sept. 30, 2024, compared to $1.85 billion at Sept. 30, 2023. E&M backlog was $2.57 billion, up from $1.53 billion, and T&D backlog was $316.9 million, down from $324.0 million.

Third Quarter 2024 Segment Results

Electrical and Mechanical

The company's E&M segment revenues increased to $536.9 million in the third quarter of 2024, compared to $516.9 million in the third quarter of 2023. The increase was driven by higher workloads in the commercial and institutional end markets, particularly in the data center submarket, partially offset by decreased workloads in the industrial, service and renewables end markets.

E&M segment net income increased to $29.4 million in the third quarter of 2024, compared to $23.1 million in the third quarter of 2023. EBITDA increased to $40.8 million in the third quarter of 2024, compared to $33.6 million in the third quarter of 2023. These increases were driven by higher revenues, strong project execution and project efficiencies. As a result, net income margin was 5.5% in the third quarter of 2024, up 100 basis points from 4.5% in the third quarter of 2023. EBITDA margin was 7.6% in the third quarter of 2024, up 110 basis points from 6.5% in the third quarter of 2023.

Transmission and Distribution

Everus' T&D segment revenues were $228.5 million during the third quarter of 2024, compared to $204.5 million in the third quarter of 2023. The increase was driven by higher workloads in both the utility and transportation end markets. The utility market had higher workloads in the transmission, underground, telecommunication and substation submarkets, and the transportation market had higher workloads in the traffic signalization and street lighting submarkets. These increases were partially offset by lower workloads in the distribution submarket.

T&D segment net income increased to $18.5 million in the third quarter of 2024, compared to $16.9 million in the third quarter of 2023. EBITDA increased to $30.4 million in the third quarter of 2024, compared to $28.2 million in the third quarter of 2023. These increases were primarily from higher utility and transportation end-market revenues. Net income margin was 8.1% in the third quarter of 2024, down 20 basis points from 8.3% in the third quarter of 2023. EBITDA margin was 13.3% in the third quarter of 2024, down 50 basis points from 13.8% in the third quarter of 2023.

Balance Sheet and Cash Flow Commentary

Balance Sheet

On Oct. 31, 2024, Everus entered into a five-year senior secured credit agreement, whereby it has the capacity to incur indebtedness of up to $525.0 million, consisting of $300.0 million in aggregate principal amount of term loans and a $225.0 million revolving credit facility. Letters of credit are available under the credit agreement in an aggregate amount of up to $50.0 million. Everus drew $40.0 million under the credit facility on the spinoff date to meet projected working capital needs. Everus used a portion of the net proceeds to repay its outstanding indebtedness to CEHI, LLC (Centennial), as well as a dividend to MDU Resources. The remaining amount of net proceeds was retained by Everus.

Everus' working capital, defined as current assets minus current liabilities, was $327.0 million at Sept. 30, 2024, compared to $313.9 million at Dec. 31, 2023.

Everus previously reported that its near-term priorities following the spinoff from MDU Resources will be organic growth investments, value-enhancing mergers and acquisitions, and balance sheet optimization.

Cash Flow

The company's operating cash flows were $82.7 million for the nine months ended Sept. 30, 2024, compared to $61.4 million for the nine months ended Sept. 30, 2023. The increase was driven by project timing, workload activity and billing fluctuations, with increases in accounts payable, net contract liabilities and other current liabilities, partially offset by an increase in accounts receivable.

The company's capital expenditures were $34.5 million for the nine months ended Sept. 30, 2024, compared to $28.1 million for the nine months ended Sept. 30, 2023. The increase was primarily from vehicle and equipment investments to support the company's growth.

Everus had free cash flow of $57.8 million for the nine months ended Sept. 30, 2024, compared to $45.5 million for the nine months ended Sept. 30, 2023. The increase was primarily from higher operating cash flows, partially offset by higher net capital expenditures. See the Non-GAAP Financial Measures sections of this news release for the definition and reconciliation of free cash flow.

Forecast for Full Year 2024

Everus is reaffirming previously provided guidance for 2024:

  • Revenue is expected to be in the range of $2.65 billion to $2.85 billion.
  • EBITDA is expected to be in the range $220 million to $240 million, with EBITDA margins expected to be higher than 2023. See the Non-GAAP Financial Measures sections of this news release for further information and reconciliation.

The company's expected results for 2024 are based on these assumptions:

  • Normal operating conditions.
  • Normal economic conditions.
  • Continued availability of labor, necessary equipment and materials.

Basis of Presentation

Prior to the spinoff from MDU Resources on Oct. 31, 2024, Everus Construction, Inc., including its subsidiaries, operated as a wholly owned subsidiary of Centennial and an indirect, wholly owned subsidiary of MDU Resources and not as a stand-alone company. Following the separation, Everus Construction is now a wholly owned subsidiary of Everus. As a result, third quarter 2024 results of operations, financial condition, cash flow and the accompanying unaudited condensed consolidated financial statements were prepared on a “carve-out” basis in connection with the spinoff and were derived from the unaudited condensed consolidated financial statements of MDU Resources as if Everus operated on a stand-alone basis during the periods presented. The calculation of basic and diluted earnings per share for the periods presented have been retrospectively adjusted to the number of shares outstanding on Oct. 31, 2024, the separation and distribution date. It is assumed that there were no dilutive or anti-dilutive equity instruments because there were no Everus stock-based awards outstanding during those periods.

Non-GAAP Financial Measures

Throughout this news release, Everus presents financial information prepared in accordance with U.S. GAAP (GAAP), as well as non-GAAP financial measures, including organic revenue, organic revenue growth, EBITDA, EBITDA margin and free cash flow, including applicable measures by segment. The use of these non-GAAP financial measures should not be construed as alternatives to revenues, earnings, earnings margin or operating cash flows. Everus believes the use of these non-GAAP financial measures are beneficial in evaluating the company's financial performance. Please refer to the "Non-GAAP Financial Measures" section contained in this news release for additional information.

Conference Call

Management will discuss Everus' third quarter results on a webcast at 8:30 a.m. EST Nov. 7, 2024. The webcast and accompanying presentation materials can be accessed at investors.everus.com by selecting “Events & Presentations” and “Everus Q3 Earnings Call.” After the conclusion of the webcast, a replay will be available at the same location.

Participants also can listen to the webcast by phone at 646-307-1963 for toll-based U.S. and international callers or at 800-715-9871 for toll-free U.S. callers, with conference ID 1034822.

About Everus Construction Group

Everus Construction Group, Inc., a member of the S&P SmallCap 600® index, is Building America's Future™ by providing a full spectrum of construction services through its electrical and mechanical, and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Its E&M contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its T&D contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as manufacturing and distribution of transmission line construction equipment and tools. For more information about Everus, visit everus.com or email investors@everus.com.

Forward-Looking Statements

Information in this news release includes certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this news release, including statements about future performance, financial guidance and long-term targets and statements made by the CEO, are expressed in good faith and are believed by the company to have a reasonable basis. This news release highlights key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company’s businesses. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements.” Although the company believes that its expectations are based on reasonable assumptions as of the date they are made, there is no assurance the company’s projections, including estimates for growth, shareholder value creation and financial guidance, will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's recent Form 10 filing and subsequent filings with the Securities and Exchange Commission.

Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake any obligation to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.

Everus Construction Group, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2024

 

2023

 

2024

 

2023

 

(In thousands, except per share amounts)

Operating revenues

$

760,985

 

$

717,406

 

$

2,090,047

 

$

2,218,672

Cost of sales

 

671,085

 

 

632,499

 

 

1,836,853

 

 

1,976,534

Gross profit

 

89,900

 

 

84,907

 

 

253,194

 

 

242,138

Selling, general and administrative expenses

 

36,191

 

 

34,816

 

 

109,292

 

 

102,519

Operating income

 

53,709

 

 

50,091

 

 

143,902

 

 

139,619

Interest expense

 

2,851

 

 

4,596

 

 

8,823

 

 

13,483

Other income

 

1,071

 

 

1,208

 

 

3,683

 

 

2,705

Income before income taxes and income from equity method investments

 

51,929

 

 

46,703

 

 

138,762

 

 

128,841

Income taxes

 

13,995

 

 

11,423

 

 

37,606

 

 

32,822

Income from equity method investments

 

3,833

 

 

734

 

 

7,797

 

 

4,718

Net income

$

41,767

 

$

36,014

 

$

108,953

 

$

100,737

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

0.82

 

$

0.71

 

$

2.14

 

$

1.98

Diluted

$

0.82

 

$

0.71

 

$

2.14

 

$

1.98

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

50,972

 

 

50,972

 

 

50,972

 

 

50,972

Diluted

 

50,972

 

 

50,972

 

 

50,972

 

 

50,972

Everus Construction Group, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

September 30, 2024

 

December 31, 2023

 

(In thousands, except share and per share amounts)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

553

 

$

1,567

Receivables, net of allowances of $7,300 and $7,967, respectively)

 

632,131

 

 

534,100

Costs and estimated earnings in excess of billings

 

174,102

 

 

158,529

Due from related-party

 

12,270

 

 

11,507

Inventories

 

46,923

 

 

42,709

Prepayments and other current assets

 

20,553

 

 

17,651

Total current assets

 

886,532

 

 

766,063

Noncurrent assets:

 

 

 

Property, plant and equipment

 

282,633

 

 

259,849

Less: accumulated depreciation

 

153,272

 

 

143,831

Net property, plant and equipment

 

129,361

 

 

116,018

Goodwill

 

143,224

 

 

143,224

Other intangible assets, net of accumulated amortization of $9,984 and $8,738, respectively

 

466

 

 

2,004

Operating lease right-of-use assets

 

68,852

 

 

53,233

Noncurrent retention receivable

 

32,849

 

 

21,355

Investments

 

17,648

 

 

8,413

Other

 

360

 

 

272

Total noncurrent assets

 

392,760

 

 

344,519

Total assets

$

1,279,292

 

$

1,110,582

Liabilities and Stockholder’s Equity

 

 

 

Current liabilities:

 

 

 

Billings in excess of costs and estimated earnings

$

221,662

 

$

198,231

Accounts payable

 

160,873

 

 

116,573

Taxes payable

 

14,006

 

 

8,557

Due to related-party

 

15,870

 

 

14,615

Accrued compensation

 

66,960

 

 

44,721

Operating lease liabilities due within one year

 

26,110

 

 

21,143

Accrued payroll-related liabilities

 

37,292

 

 

35,342

Other accrued liabilities

 

16,788

 

 

13,001

Total current liabilities

 

559,561

 

 

452,183

Noncurrent liabilities:

 

 

 

Related-party notes payable

 

214,525

 

 

168,531

Deferred income taxes

 

965

 

 

6,535

Operating lease liabilities

 

43,247

 

 

32,504

Other

 

7,691

 

 

1,979

Total noncurrent liabilities

 

266,428

 

 

209,549

Total liabilities

$

825,989

 

$

661,732

Commitments and contingencies

 

 

 

Common stockholder’s equity:

 

 

 

Common Stock, stated value $1, no par value; 1,000 shares authorized, issued and outstanding

$

1

 

$

1

Other paid-in capital

 

137,947

 

 

136,184

Retained earnings

 

315,355

 

 

312,665

Total stockholder’s equity

 

453,303

 

 

448,850

Total liabilities and stockholder’s equity

$

1,279,292

 

$

1,110,582

Everus Construction Group, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

Nine months ended September 30,

 

2024

 

2023

 

(in thousands)

Operating activities:

 

 

 

Net income

$

108,953

 

 

$

100,737

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

 

16,961

 

 

 

15,658

 

Amortization

 

1,538

 

 

 

1,575

 

Deferred income taxes

 

(5,570

)

 

 

(734

)

Provision for credit losses

 

(51

)

 

 

4,385

 

Employee stock-based compensation costs

 

1,034

 

 

 

517

 

Unrealized gain on investments

 

(531

)

 

 

 

Gain on sale of assets

 

(5,513

)

 

 

(6,297

)

Equity in earnings of unconsolidated affiliates, net of distributions

 

(4,788

)

 

 

(4,718

)

Changes in current assets and liabilities, net of acquisitions:

 

 

 

Receivables

 

(97,980

)

 

 

(5,828

)

Due from related-party

 

(763

)

 

 

1,381

 

Costs and estimated earnings in excess of billings

 

(15,573

)

 

 

(44,802

)

Inventories

 

(4,214

)

 

 

(8,984

)

Other current assets

 

(2,303

)

 

 

(2,512

)

Accounts payable

 

44,265

 

 

 

(11,125

)

Due to related-party

 

10

 

 

 

356

 

Billings in excess of costs and estimated earnings

 

23,431

 

 

 

12,566

 

Other current liabilities

 

32,760

 

 

 

6,540

 

Other noncurrent changes

 

(8,984

)

 

 

2,647

 

Net cash provided by operating activities

 

82,682

 

 

 

61,362

 

Investing activities:

 

 

 

Capital expenditures

 

(34,506

)

 

 

(28,134

)

Net proceeds from sale or disposition of property

 

9,587

 

 

 

12,247

 

Investments

 

(570

)

 

 

(535

)

Net cash used in investing activities

 

(25,489

)

 

 

(16,422

)

Financing activities:

 

 

 

Repayment of related-party notes payable

 

 

 

 

(45,000

)

Repayment of related-party short-term notes payable

 

 

 

 

(27,000

)

Net amounts received from related-party cash management program

 

45,994

 

 

 

62,527

 

Transfers to Centennial

 

(104,201

)

 

 

(37,026

)

Net cash used in financing activities

 

(58,207

)

 

 

(46,499

)

Decrease in cash and cash equivalents

 

(1,014

)

 

 

(1,559

)

Cash and cash equivalents - beginning of period

 

1,567

 

 

 

2,112

 

Cash and cash equivalents - end of period

$

553

 

 

$

553

 

Everus Construction Group, Inc.
Segment and Other Financial Information
(Unaudited)

Revenues

The following table sets forth segment revenues for the periods indicated, as well as the percentage change from the prior period:

 

Three months ended September 30,

 

Nine months ended September 30,

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

(In millions, except percentages)

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

Electrical & Mechanical

$

536.9

 

 

$

516.9

 

 

3.9

%

 

$

1,481.7

 

 

$

1,680.2

 

 

(11.8

)%

Transmission & Distribution

 

228.5

 

 

 

204.5

 

 

11.7

%

 

 

623.8

 

 

 

549.5

 

 

13.5

%

Eliminations

 

(4.4

)

 

 

(4.0

)

 

10.0

%

 

 

(15.5

)

 

 

(11.0

)

 

40.9

%

Total operating revenues

$

761.0

 

 

$

717.4

 

 

6.1

%

 

$

2,090.0

 

 

$

2,218.7

 

 

(5.8

)%

Backlog

Backlog is a common measurement in the construction services industry. Everus' determination of backlog consists of the uncompleted portion of services to be performed under job-specific contracts. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog also may be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond Everus' control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the backlog table below, Everus did not experience any material impacts related to delays or cancellations of planned projects included in backlog. The timing of contract awards, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any point in time may not accurately represent revenue or net income realized in any period, and backlog as of the end of the year may not be indicative of revenue or net income expected to be realized in the following year. Backlog should not be relied upon as a stand-alone indicator of future results.

The following table provides estimated backlog as of the dates indicated and backlog that Everus reasonably estimates will be recognized within the next 12 months following Sept. 30, 2024:

 

 

Total backlog as
of September 30,
2024

 

Total backlog as
of December 31,
2023

 

Total backlog as
of September 30,
2023

 

(In millions)

Backlog:

 

 

 

 

 

 

Electrical & Mechanical

 

$

2,567.9

 

$

1,685.6

 

$

1,526.0

Transmission & Distribution

 

 

316.9

 

 

325.3

 

 

324.0

Total backlog

 

$

2,884.8

 

$

2,010.9

 

$

1,850.0

Capital Expenditures

 

 

2024 Estimated

 

 

(In millions)

Total capital expenditures

 

$

52

 

 

 

Note: Total capital expenditures is presented on a gross basis.

Everus Construction Group, Inc.
Non-GAAP Financial Measures

In addition to information prepared in accordance with GAAP, the company evaluates operating performance using the non-GAAP financial measures of organic revenue, organic revenue growth, EBITDA and EBITDA margin, including applicable measures by segment, and evaluates its liquidity using the non-GAAP financial measure of free cash flow. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company's results as reported under GAAP. Because of these limitations, organic revenue, organic revenue growth, EBITDA, EBITDA margin and free cash flow should not be considered as replacements for revenues, net income, net income margin and cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ organic revenue, organic revenue growth, EBITDA, EBITDA margin and free cash flow having the same or similar names.

Organic Revenue and Organic Revenue Growth

Everus uses organic revenue and organic revenue growth to measure its revenue performance on a consistent basis compared to prior years. The company believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of revenue and revenue growth, are useful to investors as they provide a basis for consistently comparing revenue with prior years as well as comparing to other peer companies. Organic revenue is defined as the difference between current year and prior year revenues less the impact of acquired and divested companies in the past 12 months. Organic revenue growth is calculated by dividing organic revenue by prior year revenues.

EBITDA and EBITDA Margin

Everus utilizes EBITDA and EBITDA margin to consistently assess its operating performance and as a basis for strategic planning and forecasting since the company believes EBITDA closely correlates to long-term enterprise value. Everus believes that measuring performance on an EBITDA basis is useful to investors because it enables a more consistent evaluation of its operational performance period to period. Everus also believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of net income and net income margin, are useful to investors and provide meaningful information about operational efficiency by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Investors also may use EBITDA to calculate leverage as a multiple of EBITDA. Management uses EBITDA and EBITDA margin, in addition to GAAP metrics, to evaluate the company's operating results, calculate compensation packages and determine leverage as a multiple of EBITDA to establish the appropriate funding of operations.

EBITDA is calculated by adding back interest expense, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues. EBITDA and EBITDA margin are considered non-GAAP financial measures and are comparable to the corresponding GAAP measures of net income and net income margin, respectively.

The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin.

 

Three months ended September 30,

 

Nine months ended September 30,

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

(In millions, except percentages)

Net income

$

41.8

 

 

$

36.0

 

 

16.1

%

 

$

109.0

 

 

$

100.8

 

 

8.1

%

Interest expense

 

2.8

 

 

 

4.7

 

 

(40.4

)%

 

 

8.8

 

 

 

13.5

 

 

(34.8

)%

Income taxes

 

14.0

 

 

 

11.4

 

 

22.8

%

 

 

37.6

 

 

 

32.8

 

 

14.6

%

Depreciation and amortization

 

6.4

 

 

 

5.9

 

 

8.5

%

 

 

18.5

 

 

 

17.3

 

 

6.9

%

EBITDA

$

65.0

 

 

$

58.0

 

 

12.1

%

 

$

173.9

 

 

$

164.4

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

761.0

 

 

$

717.4

 

 

6.1

%

 

$

2,090.0

 

 

$

2,218.7

 

 

(5.8

)%

Net income margin

 

5.5

%

 

 

5.0

%

 

10.0

%

 

 

5.2

%

 

 

4.5

%

 

15.6

%

EBITDA margin

 

8.5

%

 

 

8.1

%

 

4.9

%

 

 

8.3

%

 

 

7.4

%

 

12.2

%

The following tables reconcile net income to EBITDA by segment.

 

Three months ended September 30, 2024

 

Nine months ended September 30, 2024

 

E&M

T&D

Corporate
and Other

Total

 

E&M

T&D

Corporate
and Other

Total

 

(In millions)

Net income

$

29.4

$

18.5

$

(6.1

)

$

41.8

 

$

81.7

$

43.5

$

(16.2

)

$

109.0

Interest expense

 

 

0.9

 

1.9

 

 

2.8

 

 

0.1

 

3.0

 

5.7

 

 

8.8

Income taxes

 

9.8

 

6.2

 

(2.0

)

 

14.0

 

 

28.5

 

14.6

 

(5.5

)

 

37.6

Depreciation and amortization

 

1.6

 

4.8

 

 

 

6.4

 

 

4.8

 

13.8

 

(0.1

)

 

18.5

EBITDA

$

40.8

$

30.4

$

(6.2

)

$

65.0

 

$

115.1

$

74.9

$

(16.1

)

$

173.9

 

Three months ended September 30, 2023

 

Nine months ended September 30, 2023

 

E&M

T&D

Corporate
and Other

Total

 

E&M

T&D

Corporate
and Other

Total

 

(In millions)

Net income

$

23.1

$

16.9

$

(4.0

)

$

36.0

 

$

75.8

$

37.9

$

(12.9

)

$

100.8

Interest expense

 

1.4

 

1.4

 

1.9

 

 

4.7

 

 

4.7

 

3.2

 

5.6

 

 

13.5

Income taxes

 

7.5

 

5.6

 

(1.7

)

 

11.4

 

 

25.2

 

12.0

 

(4.4

)

 

32.8

Depreciation and amortization

 

1.6

 

4.3

 

 

 

5.9

 

 

4.6

 

12.7

 

 

 

17.3

EBITDA

$

33.6

$

28.2

$

(3.8

)

$

58.0

 

$

110.3

$

65.8

$

(11.7

)

$

164.4

The following table provides EBITDA and the calculation of EBITDA margin by segment.

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

 

(In millions, except percentages)

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Electrical & Mechanical

 

$

536.9

 

 

$

516.9

 

 

3.9

%

 

$

1,481.7

 

 

$

1,680.2

 

 

(11.8

)%

Transmission & Distribution

 

 

228.5

 

 

 

204.5

 

 

11.7

%

 

 

623.8

 

 

 

549.5

 

 

13.5

%

Eliminations

 

 

(4.4

)

 

 

(4.0

)

 

(10.0

)%

 

 

(15.5

)

 

 

(11.0

)

 

(40.9

)%

Total operating revenues

 

$

761.0

 

 

$

717.4

 

 

6.1

%

 

$

2,090.0

 

 

$

2,218.7

 

 

(5.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

Electrical & Mechanical

 

$

29.4

 

 

$

23.1

 

 

27.3

%

 

$

81.7

 

 

$

75.8

 

 

7.8

%

Transmission & Distribution

 

 

18.5

 

 

 

16.9

 

 

9.5

%

 

 

43.5

 

 

 

37.9

 

 

14.8

%

Corporate and other

 

 

(6.1

)

 

 

(4.0

)

 

(52.5

)%

 

 

(16.2

)

 

 

(12.9

)

 

(25.6

)%

Total net income

 

$

41.8

 

 

$

36.0

 

 

16.1

%

 

$

109.0

 

 

$

100.8

 

 

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Electrical & Mechanical

 

$

40.8

 

 

$

33.6

 

 

21.4

%

 

$

115.1

 

 

$

110.3

 

 

4.4

%

Transmission & Distribution

 

 

30.4

 

 

 

28.2

 

 

7.8

%

 

 

74.9

 

 

 

65.8

 

 

13.8

%

Corporate and other

 

 

(6.2

)

 

 

(3.8

)

 

63.2

%

 

 

(16.1

)

 

 

(11.7

)

 

37.6

%

Total EBITDA

 

$

65.0

 

 

$

58.0

 

 

12.1

%

 

$

173.9

 

 

$

164.4

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income margin:

 

 

 

 

 

 

 

 

 

 

 

 

Electrical & Mechanical

 

 

5.5

%

 

 

4.5

%

 

22.2

%

 

 

5.5

%

 

 

4.5

%

 

22.2

%

Transmission & Distribution

 

 

8.1

%

 

 

8.3

%

 

(2.4

)%

 

 

7.0

%

 

 

6.9

%

 

1.4

%

Total net income margin

 

 

5.5

%

 

 

5.0

%

 

10.0

%

 

 

5.2

%

 

 

4.5

%

 

15.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin:

 

 

 

 

 

 

 

 

 

 

 

 

Electrical & Mechanical

 

 

7.6

%

 

 

6.5

%

 

16.9

%

 

 

7.8

%

 

 

6.6

%

 

18.2

%

Transmission & Distribution

 

 

13.3

%

 

 

13.8

%

 

(3.6

)%

 

 

12.0

%

 

 

12.0

%

 

%

Total EBITDA margin

 

 

8.5

%

 

 

8.1

%

 

4.9

%

 

 

8.3

%

 

 

7.4

%

 

12.2

%

The following table provides EBITDA guidance reconciliation for the full year 2024.

 

Low

 

High

 

(In millions)

Net income

$

140.0

 

$

150.0

Interest expense

 

10.0

 

 

15.0

Income taxes

 

45.0

 

 

50.0

Depreciation and amortization

 

25.0

 

 

25.0

EBITDA

$

220.0

 

$

240.0

Free Cash Flow

Everus uses free cash flow as a measure of liquidity that indicates how much cash the company can produce after taking cash outflows from operations and assets into consideration. The company believes this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about the company’s financial health and ability to generate cash, support additional debt obligations, pay future dividends and fund growth. Free cash flow does not represent residual cash flow available for discretionary purposes.

Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures.

The following table reconciles net cash provided by operating activities to free cash flow.

 

Nine months ended September 30,

 

2024

 

2023

 

(In millions)

Net cash provided by operating activities

$

82.7

 

 

$

61.4

 

Purchases of property, plant and equipment

 

(34.5

)

 

 

(28.1

)

Cash proceeds from sale of property, plant and equipment

 

9.6

 

 

 

12.2

 

Free cash flow

$

57.8

 

 

$

45.5

 

Non-GAAP Financial Guidance

The company is unable to reconcile forward-looking non-GAAP financial guidance relating 2024 EBITDA margin and long-term targets of organic revenue, organic revenue growth, and EBITDA to their nearest GAAP measure because the company is unable to predict the timing of these adjustments with a reasonable degree of certainty. By their very nature, non-GAAP adjustments are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact the company and its financial results. Therefore, the company is unable to provide a reconciliation of 2024 EBITDA margin guidance, and reconciliations of long-term organic revenue, organic revenue growth and EBITDA guidance.

Media Contact

Laura Lueder, director of communications, 701-221-6444



Investor Contact

Paul Bartolai, Vallum Advisors, 773-489-5692, investors@everus.com

Source: Everus Construction Group

FAQ

What was Everus Construction Group's (ECG) revenue in Q3 2024?

Everus Construction Group reported revenues of $761.0 million in Q3 2024, representing a 6.1% increase from the same period last year.

When did Everus Construction Group (ECG) complete its spinoff from MDU Resources?

Everus Construction Group completed its spinoff from MDU Resources Group on October 31, 2024.

What is Everus Construction Group's (ECG) backlog value as of Q3 2024?

Everus Construction Group's backlog reached $2.88 billion at the end of Q3 2024, representing a 43.5% increase from the prior year-end.

What is Everus Construction Group's (ECG) revenue guidance for full-year 2024?

Everus Construction Group expects full-year 2024 revenue to be in the range of $2.65 billion to $2.85 billion.

Everus Construction Group, Inc.

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