Everus Construction Group Inc (ECG) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
  • Revenue: $826.6 million, an increase of 32% compared to the same period last year.

  • EBITDA: $61.8 million, an increase of 32% from the same period last year.

  • EBITDA Margin: 7.5%, consistent with the prior year period.

  • Total Backlog: $3.1 billion, up 10% from December 31 and up 41% from March 31, 2024.

  • E&M Revenue: $648.2 million, an increase of 47% from the prior year period.

  • E&M EBITDA: $49.5 million, an increase of 51% from the prior year period.

  • E&M EBITDA Margin: 7.6%, up 20 basis points from last year.

  • T&D Revenue: $185 million, a 2% decline from last year.

  • T&D EBITDA: $20.1 million, up 5.8% from last year.

  • T&D EBITDA Margin: 10.9%, up 80 basis points from last year.

  • Unrestricted Cash and Cash Equivalents: $54.3 million as of March 31.

  • Gross Debt: $296.2 million as of March 31.

  • CapEx: $18.5 million during the first quarter, up from $9.2 million in the first quarter of last year.

  • 2025 Revenue Guidance: $3 billion to $3.1 billion.

  • 2025 EBITDA Guidance: $210 million to $225 million.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Everus Construction Group Inc (NYSE:ECG) reported a strong start to 2025 with a 32% increase in first-quarter revenue, driven by growth in the electrical and mechanical segments.

  • The company's total backlog increased by 10% from the end of the previous year and 41% from the prior year period, indicating strong future business prospects.

  • The E&M segment saw a 47% revenue increase, highlighting the diversity and strength across various end markets.

  • Everus Construction Group Inc (NYSE:ECG) successfully increased its skilled labor headcount, supporting long-term growth objectives.

  • The company maintained consistent EBITDA margins despite incremental operating costs, showcasing effective project execution and cost management.

Negative Points

  • The transmission and distribution (T&D) segment experienced a 2% revenue decline due to weather-related delays, impacting overall performance.

  • There is macroeconomic uncertainty, including tariff and trade challenges, which could affect future operations and profitability.

  • The company faces potential margin pressure from tariffs, particularly concerning fixed-price contracts, which could impact financial performance.

  • The non-backlog business, while important, may face challenges in maintaining its current levels due to resource allocation towards backlog projects.

  • Incremental corporate costs are expected to rise slightly throughout the year, potentially impacting overall profitability.