Latest news with #EverusConstructionGroup
Business Wire
29-05-2025
- Business
- Business Wire
Everus Announces Dismissal of Securities Class Action Against Company
BISMARCK, N.D.--(BUSINESS WIRE)--Everus Construction Group (NYSE: ECG) today announced that a recently filed securities class action against the company and certain of its directors and officers has been voluntarily dismissed. As disclosed in the company's first quarter 2025 Form 10-Q filed April 4, 2025, with the Securities and Exchange Commission, John Scofield filed a lawsuit in the U.S. District Court for the Southern District of New York against the company on behalf of himself and a putative class seeking to recover damages for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On May 28, 2025, Scofield filed a Notice of Voluntary Dismissal, dismissing the case without prejudice. About Everus Construction Group Everus Construction Group, Inc., a member of the S&P SmallCap 600®, 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 or email investors@
Business Wire
23-05-2025
- Business
- Business Wire
ECG Deadline: Rosen Law Firm Urges Everus Construction Group, Inc. (NYSE: ECG) Stockholders with Losses in Excess of $100K to Contact the Firm for Information About Their Rights
NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, reminds investors that a shareholder filed a class action on behalf of purchasers of common stock of Everus Construction Group, Inc. (NYSE: ECG) between October 31, 2024 and February 11, 2025, both dates inclusive (the 'Class Period'), including investors who held MDU Resources Group, Inc. ('MDU Resources') common stock as of October 21, 2024 and acquired Everus Construction common stock issued in connection with the spinoff of Everus Construction on or about October 31, 2024 (the 'Spinoff'). Everus Construction describes itself as a company that 'provides utility construction services.' For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653. The Allegations: Rosen Law Firm is Investigating the Allegations that Everus Construction Group, Inc. (NYSE: ECG) Misled Investors Regarding its Business Operations. According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Everus Construction's backlog conversion cycle had become elongated due to larger, more complex projects; (2) ) as a result, Everus Construction's revenue recognition would be delayed; and (3) as a result of the foregoing, defendants' positive statements about Everus Construction's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages. What Now: You may be eligible to participate in the class action against Everus Construction Group, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by June 3, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome.
Business Wire
23-05-2025
- Business
- Business Wire
Everus to Participate in Upcoming Investor Conferences
BISMARCK, N.D.--(BUSINESS WIRE)--Everus Construction Group (NYSE: ECG) today announced that President and CEO Jeffrey S. Thiede and Chief Financial Officer Maximillian J. Marcy will participate in these investor conferences: KeyBanc Capital Markets Industrials & Basic Materials Conference Date: May 29 Venue: InterContinental Boston Stifel 2025 Cross Sector Insight Conference Date: June 3 Venue: InterContinental Boston J.P. Morgan Energy, Power & Renewables Conference Date: June 24 Venue: InterContinental New York Barclay In conjunction with these events, Everus executives will be available to participate in one-on-one meetings with investors registered to attend the conferences. For more information, please contact the respective representatives. About Everus Construction Group Everus Construction Group, Inc., a member of the S&P SmallCap 600®, 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 or email investors@
Yahoo
15-05-2025
- Business
- Yahoo
Everus Construction Group, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
A week ago, Everus Construction Group, Inc. (NYSE:ECG) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Statutory revenue of US$827m and earnings of US$0.72 both blasted past expectations, beating expectations by 22% and 67%, respectively, ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, Everus Construction Group's three analysts currently expect revenues in 2025 to be US$3.01b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 16% to US$2.50 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$3.01b and earnings per share (EPS) of US$2.49 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results. See our latest analysis for Everus Construction Group The consensus price target rose 5.8% to US$61.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Everus Construction Group's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Everus Construction Group, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$55.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 1.7% annualised decline to the end of 2025. That is a notable change from historical growth of 10% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.7% per year. It's pretty clear that Everus Construction Group's revenues are expected to perform substantially worse than the wider industry. The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Everus Construction Group's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Everus Construction Group going out to 2026, and you can see them free on our platform here.. You still need to take note of risks, for example - Everus Construction Group has 2 warning signs (and 1 which is concerning) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Wire
13-05-2025
- Business
- Business Wire
Everus Reports First Quarter Results, Affirms Guidance for 2025
BISMARCK, N.D.--(BUSINESS WIRE)--Everus Construction Group (NYSE: ECG) today reported financial results for first quarter 2025. (all comparisons versus the prior-year period unless otherwise noted) Revenues of $826.6 million, up 32.1%. Net income of $36.7 million, up 30.1%; net income margin of 4.4%. Diluted earnings per share of 72 cents, up 30.9%. Earnings before interest, taxes, depreciation and amortization of $61.8 million, up 31.8%; EBITDA margin of 7.5%. Backlog of $3.1 billion, up 10.0% from Dec. 31, 2024, and up 40.5% from March 31, 2024. Affirms estimated full-year guidance for 2025. See the Non-GAAP Measures sections for definitions and reconciliations of the non-GAAP financial measures used in this news release. Management Commentary 'Everus' strong first quarter results reflect robust opportunities across our diverse end markets, efficient project execution and record backlog,' said Jeffrey S. Thiede, president and CEO of Everus. 'Our electrical and mechanical segment increased revenues 47% with growth across all end markets, particularly data center work, and our transmission and distribution segment also had solid results with strong project execution. 'Our record backlog was up 10% from year-end and more than 40% compared to first quarter last year, with growth in both the E&M and T&D segments. We saw continued strong project opportunities across our diverse service offerings, particularly for data center, hospitality, undergrounding and high-tech work. With our successful track record of executing on complex projects and our long-term customer relationships, we remain well-positioned to benefit from favorable secular demand drivers, including high-tech reshoring, data center construction and utility infrastructure investments, giving us the opportunity to continue growing backlog. 'Based on our strong first quarter results and continued favorable market outlook, balanced against economic uncertainties and typical project timing movement, we are maintaining our guidance for 2025. We are confident with our favorable backlog trends, attractive financial position and our focus on our 4EVER strategy that we remain on track to execute on our long-term financial targets to drive value for shareholders.' First Quarter 2025 Consolidated Results Revenues increased 32.1% to $826.6 million in the first quarter of 2025, compared to $625.7 million in the first quarter of 2024. Electrical and mechanical revenues grew $207.2 million, or 47.0%, and transmission and distribution revenues declined $3.5 million, or 1.9%. Gross profit increased 23.8% to $92.5 million in the first quarter of 2025, compared to $74.7 million in the first quarter of 2024. The increase was primarily driven by higher revenues due to project timing and efficiency gains on certain projects, partially offset by higher operating costs and lower gross profit margin from changes in project mix. Gross profit margin was 11.2% in the first quarter of 2025, compared to 11.9% in the first quarter of 2024. Selling, general and administrative expenses increased to $41.5 million in the first quarter of 2025, compared to $35.8 million in the first quarter of 2024. The increase was primarily driven by higher labor and professional service-related expenses, including incremental stand-alone operating costs, to support the operational growth of the business. Net income increased 30.1% to $36.7 million, or diluted EPS of 72 cents, in the first quarter of 2025, compared to $28.2 million, or diluted EPS of 55 cents, in the first quarter of 2024. The increase was primarily from increased gross profit and higher income from joint ventures, partially offset by higher selling, general and administrative expenses, including incremental stand-alone operating costs, and interest expense related to the company's borrowing arrangements. Net income margin was 4.4% in the first quarter of 2025, compared to 4.5% in the first quarter of 2024. EBITDA increased 31.8% to $61.8 million in the first quarter of 2025, compared to $46.9 million in the first quarter of 2024. The increase was primarily from higher revenues and higher income from joint ventures, partially offset by higher selling, general and administrative expenses, including stand-alone operating costs. EBITDA margin was 7.5%, consistent with the first quarter of 2024. Backlog increased to $3.1 billion as of March 31, 2025, up 10.0% compared to $2.8 billion as of Dec. 31, 2024, and up 40.5% compared to $2.2 billion as of March 31, 2024. First Quarter 2025 Segment Results Electrical and Mechanical E&M segment revenues increased 47.0% to $648.2 million in the first quarter of 2025, compared to $441.0 million in the first quarter of 2024. The increase was driven by higher workloads in each of the E&M end markets, particularly growth in the data center submarket. E&M segment net income increased to $36.6 million during the first quarter of 2025, compared to $23.0 million in the first quarter of 2024. E&M segment net income margin was 5.6%, up compared to 5.2% in the first quarter of 2024. E&M segment EBITDA increased 50.9% to $49.5 million in the first quarter of 2025, compared to $32.8 million in the first quarter of 2024. The increase was driven by higher revenues, higher income from joint ventures and efficiency gains on certain projects, partially offset by changes in project mix and higher selling, general and administrative expenses. E&M segment EBITDA margin was 7.6%, up compared to 7.4% in the first quarter of 2024. E&M backlog increased to $2.7 billion as of March 31, 2025, up 7.9% compared to $2.5 billion as of Dec. 31, 2024, and up 46.3% compared to $1.8 billion as of March 31, 2024. Transmission and Distribution T&D segment revenues were $185.0 million during the first quarter of 2025, compared to $188.5 million in the first quarter of 2024. The utility end market experienced slightly lower workloads due in part to weather-related impacts and reductions in the storm and distribution submarkets, partially offset by growth in the underground submarket. The utility end market declines were partially offset by increased workloads in the transportation end market, particularly in the traffic signalization submarket. T&D segment net income increased to $10.5 million during the first quarter of 2025, compared to $10.2 million in the first quarter of 2024. T&D segment net income margin was 5.7%, up compared to 5.4% in the first quarter of 2024. T&D segment EBITDA increased 5.8% to $20.1 million in the first quarter of 2025, compared to $19.0 million in the first quarter of 2024. The modest increase was primarily from solid project execution and lower selling, general and administrative expenses, partially offset by lower revenues. T&D segment EBITDA margin was 10.9%, up compared to 10.1% in the first quarter of 2024. T&D backlog increased to $353.1 million as of March 31, 2025, up 29.1% compared to $273.6 million as of Dec. 31, 2024, and up 7.9% compared to $327.1 million as of March 31, 2024. Balance Sheet and Cash Flow Commentary Balance Sheet As of March 31, 2025, the company had $54.3 million of unrestricted cash and cash equivalents and $296.2 million of gross debt, compared to $69.9 million and $300.0 million as of Dec. 31, 2024. As of both March 31, 2025, and Dec. 31, 2024, the company had $209.4 million available under the revolving credit facility, net of $15.6 million of outstanding standby letters of credit. Net leverage, defined as net debt-to-trailing 12-month EBITDA, was 1.0x as of both March 31, 2025, and Dec. 31, 2024. Working capital, defined as current assets minus current liabilities, was $425.0 million as of March 31, 2025, compared to $403.9 million as of Dec. 31, 2024. Cash Flow Operating cash flows were $7.1 million for the first quarter of 2025, compared to $21.8 million for the first quarter of 2024. The decrease was primarily related to higher working capital needs. Capital expenditures were $18.5 million for the first quarter of 2025, compared to $9.2 million for the first quarter of 2024. The increase was primarily from vehicle, equipment and building investments to support the company's growth. Everus had negative free cash flow of $8.1 million for the first quarter of 2025, compared to positive free cash flow of $15.4 million for the first quarter of 2024. The decrease was primarily from lower operating cash flows and higher net capital expenditures. Forecast for 2025 Everus is affirming its estimated full-year guidance for 2025. Revenue is expected to be in the range of $3.0 billion to $3.1 billion. EBITDA is expected to be in the range of $210 million to $225 million, with EBITDA margins expected to be lower than in 2024 due to stand-alone operating costs and associated dis-synergies. Gross capital expenditures for 2025 are expected to be in the range of $65 million to $70 million. Basis of Presentation Prior to the spinoff from MDU Resources Group, Inc. on Oct. 31, 2024, Everus Construction, Inc., including its subsidiaries, operated as a wholly owned subsidiary of CEHI, LLC (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, for periods prior to the separation, Everus' financial information, including the results of operations, financial condition, cash flows, and the accompanying unaudited condensed consolidated financial statements, was prepared on a 'carve-out' basis in connection with the spinoff and was derived from the unaudited condensed consolidated financial statements of MDU Resources as if Everus operated on a stand-alone basis. The calculation of basic and diluted earnings per share for periods presented prior to the spinoff 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 as of Oct. 31 because there were no Everus stock-based awards outstanding for periods prior to the separation. Non-GAAP Financial Measures Throughout this news release, Everus presents financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), as well as non-GAAP financial measures, including EBITDA, EBITDA margin, net debt, net leverage and free cash flow, and, in some cases, applicable measures by segment. The use of these non-GAAP financial measures should not be construed as alternatives to net income, net income margin, total debt, gross leverage and cash provided by (used in) operating activities. 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 sections contained in this news release for additional information. Conference Call Management will discuss Everus' first quarter 2025 results on a webcast at 10:30 a.m. EDT May 14. The webcast and accompanying presentation materials can be accessed at by selecting 'Events & Presentations' and 'Everus Q1 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, service 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 in both the public and private sectors. Its T&D contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as design, manufacturing and distribution of overhead and underground transmission line construction equipment and tools. For more information about Everus, visit or email investors@ 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 the company's 4EVER strategy, future performance, financial guidance, 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 segments. 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. Readers are encouraged to 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 most recent Annual Report on Form 10-K 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 Balance Sheets (Unaudited) March 31, 2025 December 31, 2024 (In thousands, except share and per share amounts) Assets Current assets: Cash, cash equivalents and restricted cash $ 73,981 $ 86,012 Receivables, net of allowances of $3,064 and $7,097, respectively 592,809 590,028 Contract assets 221,910 167,049 Inventories 47,413 43,750 Prepayments and other current assets 34,854 30,390 Total current assets 970,967 917,229 Noncurrent assets: Property, plant and equipment, net of accumulated depreciation of $161,545 and $157,278, respectively 145,801 134,409 Goodwill 143,224 143,224 Other intangible assets, net of accumulated amortization of $6,990 and $10,334, respectively — 116 Operating lease right-of-use assets 67,742 67,045 Investments 23,504 21,286 Other 4,609 5,154 Total noncurrent assets 384,880 371,234 Total assets $ 1,355,847 $ 1,288,463 Liabilities and Stockholder's Equity Current liabilities: Current portion of long-term debt $ 15,000 $ 15,000 Contract liabilities, net 186,571 207,304 Accounts payable 182,335 138,097 Taxes payable 24,508 6,768 Accrued compensation 52,864 67,815 Current portion of operating lease liabilities 27,762 26,354 Accrued payroll-related liabilities 43,544 38,995 Other accrued liabilities 13,355 13,037 Total current liabilities 545,939 513,370 Noncurrent liabilities: Long-term debt 277,123 280,648 Deferred income taxes 9,209 8,161 Operating lease liabilities 40,473 41,200 Other 22,904 22,472 Total noncurrent liabilities 349,709 352,481 Total liabilities $ 895,648 $ 865,851 Commitments and contingencies Common stockholder's equity: Common stock, 300,000,000 shares authorized, $0.01 par value, 50,999,228 and 50,980,924 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively $ 510 $ 510 Other paid-in capital 139,045 138,130 Retained earnings 320,644 283,972 Total stockholder's equity 460,199 422,612 Total liabilities and stockholder's equity $ 1,355,847 $ 1,288,463 Expand Everus Construction Group, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three months ended March 31, 2025 2024 (in thousands) Operating activities: Net income $ 36,672 $ 28,214 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 6,774 5,461 Amortization of intangible assets 116 522 Deferred income taxes 1,048 193 Provision for credit losses (1,729 ) (411 ) Amortization of debt issuance costs 394 — Stock-based compensation costs 1,747 344 Net unrealized (gains) losses on investments 117 — Gain on sale of assets (2,371 ) (1,283 ) Equity in earnings of unconsolidated affiliates, net of distributions (2,743 ) 1,544 Changes in current assets and liabilities, net of acquisitions: Receivables (1,052 ) (14,891 ) Due from related-party — (2,140 ) Contract assets (54,861 ) 1,110 Inventories (3,663 ) (937 ) Other current assets (4,464 ) 270 Accounts payable 43,625 2,318 Due to related-party — 590 Contract liabilities, net (20,733 ) 202 Other current liabilities 7,579 (421 ) Other noncurrent changes 672 1,171 Net cash provided by operating activities 7,128 21,856 Investing activities: Capital expenditures (18,539 ) (9,222 ) Net proceeds from sale or disposition of property 3,310 2,810 Proceeds from insurance contracts 2,174 — Investments (1,766 ) — Net cash used in investing activities (14,821 ) (6,412 ) Financing activities: Repayment of long-term debt (3,750 ) — Tax withholding on stock-based compensation (588 ) — Net amounts received from related-party cash management program — (4,650 ) Transfers to Centennial and MDU Resources — (11,818 ) Net cash used in financing activities (4,338 ) (16,468 ) (Decrease) increase in cash, cash equivalents and restricted cash (12,031 ) (1,024 ) Cash, cash equivalents and restricted cash - beginning of period 86,012 1,567 Cash, cash equivalents and restricted cash - end of period $ 73,981 $ 543 Expand 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: Backlog Backlog is a common measurement in the construction services industry. Everus' determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. 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 following backlog table, Everus did not experience any material impacts related to delays or cancellations of planned projects included in backlog. The timing of contract awards, including contracts awarded pursuant to Master Service Agreements, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any given 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: 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 EBITDA, EBITDA margin, net debt and net leverage, and, in some cases, 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, EBITDA, EBITDA margin, net debt, net leverage and free cash flow should not be considered as replacements for net income, net income margin, total debt, gross leverage 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' EBITDA, EBITDA margin, net debt, net leverage and free cash flow having the same or similar names. 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 period-to-period operational performance. 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, net of interest income, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues. The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin. The following table reconciles net income to EBITDA by segment. Three months ended March 31, 2025 Three months ended March 31, 2024 E&M T&D Corporate and Other Total E&M T&D Corporate and Other Total (In millions) (In millions) Net income $ 36.6 $ 10.5 $ (10.4 ) $ 36.7 $ 23.0 $ 10.2 $ (5.0 ) $ 28.2 Interest expense, net (1.8 ) 0.7 5.8 4.7 (0.1 ) 0.9 1.9 2.7 Income taxes 13.3 3.4 (3.1 ) 13.6 8.3 3.4 (1.7 ) 10.0 Depreciation and amortization 1.4 5.5 (0.1 ) 6.8 1.6 4.5 (0.1 ) 6.0 EBITDA $ 49.5 $ 20.1 $ (7.8 ) $ 61.8 $ 32.8 $ 19.0 $ (4.9 ) $ 46.9 Expand The following table provides EBITDA and the calculation of EBITDA margin by segment. The following table provides EBITDA guidance reconciliation for full-year 2025. Net Debt and Net Leverage Everus uses net debt and net leverage as a measure of assessing its borrowing capacity and achieving its optimal capital structure. The company believe these non-GAAP financial measures, in addition to the corresponding GAAP measures of total debt and gross leverage, are useful to investors because they provide insight into how long it would take the company to pay back its debt if net debt and EBITDA were constant. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing 12-month EBITDA. The following table provides the reconciliation of trailing 12-month EBITDA as of March 31, 2025, and Dec. 31, 2024. Twelve months ended March 31, 2025 Three months ended March 31, 2025 Twelve months ended December 31, 2024 Three months ended March 31, 2024 (In millions) (In millions) Net income $ 151.9 $ 36.7 $ 143.4 $ 28.2 Interest expense, net 16.0 4.7 14.0 2.7 Income taxes 53.1 13.6 49.5 10.0 Depreciation and amortization 26.1 6.8 25.3 6.0 EBITDA $ 247.1 $ 61.8 $ 232.2 $ 46.9 Expand The following table provides the reconciliation of net leverage calculation of net debt-to-trailing 12-month EBITDA as of March 31, 2025, and Dec. 31, 2024. 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 cash provided by operating activities to free cash flow. Non-GAAP Financial Guidance The company is unable to reconcile forward-looking non-GAAP financial guidance relating to full-year 2025 EBITDA margin to its 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 the reconciliation of full-year 2025 EBITDA margin guidance without unreasonable efforts.
