Forward-Looking Statements This presentation, and oral comments that Everus may make, contain or incorporate by reference certain "forward-looking statements" within the meaning of the securities laws. All statements that reflect Everus' expectations, assumptions or projections about the future, other than statements of historical facts, including, without limitation, statements regarding plans, trends, objectives, goals, business strategies, market potential, future financial performance and other matters ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter revenue increase of 20%, reaching $760 million, driven by balanced growth across diversified end markets [10][32] - Fourth quarter EBITDA remained relatively flat at $58 million, primarily due to public company stand-up costs of $6.3 million [11][33] - The total backlog at the end of the fourth quarter was $2.8 billion, reflecting a 38% increase year-over-year [11][37] - For the full year 2024, net revenue was $2.85 billion, consistent with the previous year, while total EBITDA increased to $232 million from $223 million [34][36] Business Line Data and Key Metrics Changes - Electrical and Mechanical (E&M) revenues increased by 21% in the fourth quarter, while Transmission and Distribution (T&D) revenues grew by 15% [10][32] - E&M segment revenue for the fourth quarter was approximately $550 million, with EBITDA of $42.7 million, up 17% year-over-year [39] - T&D segment revenue for the fourth quarter was $213.3 million, with EBITDA of $30.6 million, reflecting a 15% increase [40] Market Data and Key Metrics Changes - The demand outlook for the T&D business remains favorable, driven by significant investments needed to modernize existing infrastructure [24][25] - The company noted strong demand in commercial markets, particularly in data centers and hospitality, contributing to a robust project pipeline [60] Company Strategy and Development Direction - The company is focused on its 4EVER strategy, which emphasizes employee development, customer value creation, and operational excellence [14][15] - A key aspect of the growth strategy includes geographic expansion through satellite projects and strategic M&A opportunities [16][20] - The company aims for compound annual revenue growth of 5% to 7% and EBITDA growth of 7% to 9% [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable demand drivers in key end markets, despite potential headwinds from tariffs and inflation [29][30] - The company is well-positioned financially, with net leverage at approximately 1.0 times, allowing for flexibility in executing growth strategies [21][42] Other Important Information - The company does not currently have a dividend policy or share repurchase authorization, focusing instead on reinvesting in growth opportunities [22] - Full year 2024 CapEx increased to $48.3 million, reflecting a commitment to organic growth investments [43] Q&A Session Summary Question: How do you approach revenue guidance for 2025? - Management indicated that larger, complex projects are taking longer to complete, impacting backlog conversion [52][54] Question: What is the latest on project pipeline and backlog trends? - Management noted strong demand in commercial areas, particularly data centers, and emphasized that backlog trends are primarily a matter of timing [59][64] Question: What are the expectations for corporate expenses going forward? - Management clarified that corporate expenses are primarily related to building corporate teams and are not expected to decrease significantly in the near term [65][66] Question: What is the outlook for M&A activity? - Management expressed excitement about M&A opportunities, focusing on companies with strong leadership and safety cultures [83][84] Question: How is the company addressing potential impacts from the new administration? - Management is monitoring the situation closely, noting that the administration's pro-business strategy could be beneficial for the industry [29][110]

Company Overview - Everus Construction Group operates under two segments: Electrical & Mechanical and Transmission & Distribution, focusing on diverse end markets across the U.S.[171] - The Separation from MDU Resources was completed on October 31, 2024, resulting in Everus becoming an independent publicly traded company listed under the symbol "ECG" on the NYSE[190]. - The Distribution involved transferring 50,972,059 shares of Everus common stock to MDU Resources stockholders at a ratio of one share of Everus for every four shares of MDU Resources[189]. Financial Performance - Operating revenues for Q3 2024 were $761.0 million, a 6.1% increase from $717.4 million in Q3 2023[200]. - E&M revenues grew by $20.0 million, or 3.9%, while T&D revenues increased by $24.0 million, or 11.7%[200]. - Operating income for Q3 2024 was $53.7 million, a 7.2% increase from $50.1 million in Q3 2023[210]. - Net income for Q3 2024 was $41.8 million, a 16.1% increase from $36.0 million in Q3 2023[199]. - Operating revenues for the nine months ended September 30, 2024, were $2,090.0 million, a decrease of 5.8% from $2,218.7 million in the same period of 2023[215]. - Selling, general and administrative expenses for the nine months ended September 30, 2024, were $109.3 million, an increase of 6.6% from $102.5 million in the same period of 2023[220]. - Income from equity method investments for the nine months ended September 30, 2024, was $7.8 million, a 62.5% increase from $4.8 million in the same period of 2023[226]. - Income taxes for the nine months ended September 30, 2024, were $37.6 million, a 14.6% increase from $32.8 million in the same period of 2023[225]. - EBITDA for the nine months ended September 30, 2024, was $173.9 million, up from $164.4 million in the same period of 2023, reflecting an increase of 5.7%[255]. - Free cash flow for the nine months ended September 30, 2024, was $57.8 million, compared to $45.5 million for the same period in 2023, an increase of 27.0%[260]. - Cash provided by operating activities totaled $82.7 million for the nine months ended September 30, 2024, an increase of $21.3 million from $61.4 million in the same period of 2023[272]. - Cash used in investing activities increased to $25.5 million for the nine months ended September 30, 2024, from $16.4 million in the same period of 2023, a rise of 55.5%[274]. - Cash used in financing activities totaled $58.2 million for the nine months ended September 30, 2024, compared to $46.5 million in the same period of 2023, an increase of 25.0%[275]. Segment Performance - Electrical & Mechanical (E&M) segment revenues for Q3 2024 were $536.9 million, a 3.9% increase from $516.9 million in Q3 2023[228]. - Transmission & Distribution (T&D) segment revenues for Q3 2024 were $228.5 million, an 11.7% increase from $204.5 million in Q3 2023[231]. - E&M segment operating income for Q3 2024 was $34.9 million, a 12.2% increase from $31.1 million in Q3 2023[233]. - T&D segment operating income for Q3 2024 was $25.3 million, a 10.0% increase from $23.0 million in Q3 2023[234]. - E&M segment revenues for the nine months ended September 30, 2024, were $1,481.7 million, an 11.8% decrease from $1,680.2 million in the same period of 2023[237]. - T&D segment revenues for the nine months ended September 30, 2024, were $623.8 million, a 13.5% increase from $549.5 million in the same period of 2023[240]. - E&M segment operating income for the nine months ended September 30, 2024, was $100.8 million, a slight increase of 0.5% from $100.3 million in the same period of 2023[242]. - T&D segment operating income for the nine months ended September 30, 2024, was $60.1 million, an increase of 17.2% from $51.3 million in the same period of 2023[243]. Market Conditions and Opportunities - The U.S. construction services industry is highly fragmented, with competition influenced by technical expertise, service pricing, and operational resources[176]. - The American Rescue Plan provides $1.9 trillion in COVID-19 relief funding, which may positively impact infrastructure projects relevant to Everus[184]. - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are expected to provide long-term opportunities for investments in electric and grid infrastructure, benefiting Everus[184]. - Everus has a backlog indicating ongoing bidding opportunities in specialty contracting markets, despite competitive bidding conditions[185]. - The company is monitoring legislative initiatives that could impact its operations and market opportunities, particularly in renewable energy and electric vehicle infrastructure[184]. Cost and Risk Management - The company anticipates continued increases in insurance costs due to economic inflation and rising losses in the insurance industry, particularly related to wildfire risks[174]. - Everus is focused on growing total revenues, expanding margins, and managing costs to increase operating income despite rising insurance costs[175]. - Inflation has increased costs, particularly in labor and transportation, but the company has not seen a material effect on its financial results[296]. - Labor costs may increase due to competitive market pressures and union negotiations, potentially affecting financial results[297][298]. - The company has a capacity to incur indebtedness of up to $525.0 million under a new credit agreement, which includes $300.0 million in term loans and a $225.0 million revolving credit facility[263]. - As of September 30, 2024, the fixed maximum amounts guaranteed under certain contracts aggregated to $557.5 million, up from $341.4 million as of December 31, 2023[285]. - The fixed maximum amounts guaranteed under letters of credit were $2.2 million as of September 30, 2024, compared to $0.2 million as of December 31, 2023[286]. - The company has issued guarantees related to routine purchases and lease obligations, with no fixed maximum amounts specified[287]. - The company does not have any other material financial guarantees or off-balance sheet arrangements beyond those disclosed[288]. - The company is exposed to interest rate risk due to a five-year senior secured credit agreement, which includes term loans and a revolving credit facility[295].