Everus Construction (ECG) Q3 2024 earnings summary

Executive summary

• Reported strong Q3 2024 results as a newly independent public company after spinoff from MDU Resources, with 6.1% revenue growth and 16.1% net income growth, driven by balanced segment performance and robust project execution.

• Achieved record backlog of $2.9B, up 56% year-over-year, reflecting significant momentum in both E&M and T&D segments.

• Free cash flow for the first nine months was $57.8M, up from $45.5M last year.

• Maintained strong financial flexibility with $251M in cash and revolver availability at October 31, 2024.

• Continued execution of value creation strategy, focusing on growth, margin expansion, and cash generation.

Financial highlights

• Q3 2024 revenue was $761.0M, up 6.1% year-over-year; EBITDA was $65.0M, up 12.1%; net income was $41.8M, up 16.1%.

• EBITDA margin expanded 40 bps to 8.5%; net income margin was 5.5%.

• Free cash flow for nine months was $57.8M; capital expenditures for nine months were $34.5M (1.65% of revenue).

• Working capital as of September 30, 2024, was $327.0M.

• Net debt post-separation: $40.0M drawn on a $525.0M credit facility.

Outlook and guidance

• Reaffirmed 2024 guidance: revenue $2.65B–$2.85B, EBITDA $220M–$240M, with margins expected to exceed 2023.

• Long-term targets: 5–7% organic revenue CAGR, 7–9% EBITDA CAGR, CapEx at 2%–2.5% of revenue, and net leverage of 1.5x–2.0x.

• Backlog at $2.88B as of September 30, 2024, with $2.18B expected to be recognized within 12 months.

• Guidance assumes normal operating and economic conditions, and continued resource availability.

• Management anticipates continued growth and margin expansion, supported by federal infrastructure and clean energy legislation.