Everus Construction (ECG) Q4 2024 earnings summary

Executive summary

• Completed a transformational spinoff from MDU Resources in October 2024, establishing a strong foundation as a standalone public company.

• Fourth quarter 2024 revenue grew 19.5% year-over-year to $760 million, with backlog up 38% to $2.8 billion, driven by both E&M and T&D segments.

• EBITDA for Q4 was $58 million, flat year-over-year, as incremental public company costs offset revenue gains.

• Free cash flow for 2024 was $128.8 million, down from $152 million in 2023, with CapEx at $48.3 million (1.7% of revenue).

• Financial position remains strong with $279 million in cash and revolver availability and net leverage at 1.0x.

Financial highlights

• Fourth quarter 2024 net revenue was $760 million, up 19.5% year-over-year; full year revenue was $2.85 billion, flat versus 2023.

• Q4 EBITDA was $58.3 million, margin at 7.7% (down 150 bps year-over-year); full year EBITDA was $232.2 million, margin at 8.1% (up 30 bps).

• Q4 net income was $34.4 million, down 5.5% year-over-year; full-year net income was $143.4 million, up 4.5%.

• Backlog at year-end was $2.8 billion, up 38% year-over-year.

• Free cash flow for 2024 was $128.8 million; CapEx for 2024 was $48.3 million (1.7% of revenue).

Outlook and guidance

• 2025 revenue guidance: $3.0–$3.1 billion; EBITDA guidance: $210–$225 million; CapEx: $65–$70 million.

• Guidance reflects a longer backlog conversion cycle due to larger, more complex projects and assumes normalized project execution levels.

• EBITDA margin expected to be lower in 2025 due to public company stand-up costs and project mix shift.

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