Everus Construction (ECG) Investor Day 2024 summary

Strategic direction and business positioning

• Spin-off effective October 31 will create a standalone, publicly traded company focused on specialty construction services, enabling sharper strategic focus and tailored capital allocation.

• 4EVER strategy centers on employees, value creation, execution excellence, and customer relationships, with a people-first culture and strong union relationships supporting over 9,000 employees.

• National platform with 20 market-leading local brands, diversified across electrical & mechanical (E&M) and transmission & distribution (T&D) segments, serving commercial, utility, industrial, and renewables markets.

• Leadership team and board have deep industry and public company experience, averaging 28 years, with strong local brand management.

• Emphasis on industry-leading safety, systematic knowledge sharing, and high customer retention, with top 10 customers averaging 30+ year relationships.

Financial guidance and performance

• 2024 revenue guidance is $2.65–$2.85 billion, with EBITDA of $220–$240 million and margins higher than 2023.

• Long-term targets include 5–7% organic revenue CAGR and 7–9% EBITDA CAGR, with capital spending at 2–2.5% of revenue and net leverage targeted at 1.5–2x.

• Backlog reached a record $2.4 billion as of June 30, 2024, up 18% since 2019, supporting confidence in future growth.

• Business model is capital-light, with low fixed costs, 89% variable cost structure, and strong cash flow, providing flexibility for growth investments and M&A.

• Standalone public company costs (dyssynergies) are expected to be $28 million in 2024, with plans to absorb these over time.

Operational excellence and competitive advantages

• Proven, repeatable execution playbook ensures consistent, high-quality outcomes and margin resilience, supported by industry-leading safety programs.

• Prefabrication and modular construction drive cost savings and margin improvement, with a 21% CAGR in customer cost savings since 2019.

• Deep, long-term customer relationships and strong union partnerships enable scalable workforce and repeat business.

• Diversified revenue base across 25 sub-markets and 3,700+ customers, with top 10 customers accounting for 36% of revenue.

• Focus on complex, high-growth end markets (e.g., data centers, utilities, high-tech manufacturing) and disciplined project selection to manage risk and drive margin stability.