Everus Reports Strong Fourth Quarter and Full Year 2024 Results, Initiates Guidance for 2025

BISMARCK, N.D.--(BUSINESS WIRE)--February 11, 2025-- 

Everus Construction Group $(ECG)$ today reported financial results for the fourth quarter and full year 2024.

Fourth Quarter 2024 Summary

(all comparisons versus the prior-year period unless otherwise noted)

   -- 
 Revenues of $759.7 million, up 19.5%. 
 
 
   -- 
 Net income of $34.4 million; net income margin of 4.5%. 
 
 
   -- 
 Diluted earnings per share of 67 cents. 
 
 
   -- 
 Earnings before interest, taxes, depreciation and amortization (EBITDA) 
      of $58.3 million, up 0.2%; EBITDA margin of 7.7%, down 150 basis points. 
 
 
   -- 
 Completed spinoff from MDU Resources Group, Inc. on Oct. 31, 2024. 
 

Full Year 2024 Summary

(all comparisons versus the prior year unless otherwise noted)

   -- 
 Revenues of $2.85 billion, comparable to $2.85 billion in 2023. 
 
 
   -- 
 Net income of $143.4 million, up 4.5%; net income margin of 5.0%, up 20 
      basis points. 
 
 
   -- 
 Diluted EPS of $2.81, up 4.5%. 
 
 
   -- 
 EBITDA of $232.2 million, up 4.3%; EBITDA margin of 8.1%, up 30 basis 
      points. 
 
 
   -- 
 Backlog of $2.8 billion, up 38.3% from prior year-end. 
 

For definitions and reconciliations of EBITDA and EBITDA margin, see the Non-GAAP Measures sections of this news release.

Management Commentary

"Everus ended 2024 with strong results, including solid fourth quarter revenue and robust backlog. Our disciplined focus on our 4EVER strategy has ensured strong project execution, positive safety results and a year-end net leverage ratio well below our long-term target," said Jeffrey S. Thiede, president and CEO of Everus. "Our 2024 EBITDA of $232 million was up 4% compared to 2023, with growth in both our E&M and T&D segments. With continued strong demand for our services, our backlog at Dec. 31 increased 38%, to $2.8 billion, compared to Dec. 31, 2023.

"We have strong momentum heading into 2025, and with our advantageous competitive position in diversified end markets that have ongoing favorable trends, we expect revenue in the range of $3.0 billion to $3.1 billion and EBITDA in the range of $210 million to $225 million for the year. This guidance reflects typical prudent projection of project timing and a shift in overall project mix compared to 2024. As we enter our first full year as a stand-alone company, we are well-positioned financially to continue executing on our capital allocation strategy that prioritizes investments in organic growth and strategic acquisitions while maintaining financial flexibility. We are extremely proud of our team's dedication and excellent work as we continue safely Building America's Future."

For the definition and reconciliation of net leverage, see the Non-GAAP Measures sections of this news release.

Fourth Quarter 2024 Consolidated Results

Everus' revenues increased to $759.7 million in the fourth quarter of 2024, compared to $635.7 million in the fourth quarter of 2023. Electrical and mechanical revenues grew $95.1 million, or 20.9%, and transmission and distribution revenues rose $28.2 million, or 15.2%.

The company's gross profit increased to $86.3 million in the fourth quarter of 2024, compared to $79.8 million in the fourth quarter of 2023. Higher revenues drove the increase in gross profit. Gross profit margin was 11.4% in the fourth quarter of 2024, compared to 12.6% in the fourth quarter of 2023.

Everus' net income decreased to $34.4 million, or diluted EPS of 67 cents, in the fourth quarter of 2024, compared to $36.4 million, or diluted EPS of 72 cents, in the fourth quarter of 2023. The decrease was primarily from higher selling, general and administrative expenses and interest expense related to the spinoff from MDU Resources, partially offset by increased gross profit and higher income from joint ventures. Net income margin was 4.5% in the fourth quarter of 2024, compared to 5.7% in the fourth quarter of 2023.

The company's EBITDA was $58.3 million in the fourth quarter of 2024, comparable to $58.2 million in the fourth quarter of 2023. The modest increase was primarily from higher revenues and higher income from joint ventures, largely offset by higher selling, general and administrative expenses as expected from stand-alone operating costs. EBITDA margin was 7.7%, down 150 basis points compared to 9.2% in the fourth quarter of 2023.

Fourth Quarter 2024 Segment Results

Electrical and Mechanical

The company's E&M segment revenues increased to $549.8 million in the fourth quarter of 2024, compared to $454.7 million in the fourth quarter of 2023. The increase was driven by higher workloads in the commercial, institutional, and service and other end markets, particularly in the data center submarket, partially offset by decreased workloads in the industrial and renewables end markets.

E&M segment net income increased to $31.9 million during the fourth quarter of 2024, compared to $26.6 million in the fourth quarter of 2023. E&M segment net income margin was 5.8%, compared to 5.9% in the fourth quarter of 2023.

E&M segment EBITDA increased to $42.7 million in the fourth quarter of 2024, compared to $36.4 million in the fourth quarter of 2023. The increase was driven by higher revenues and higher income from joint ventures, partially offset by lower gross profit margin and higher selling, general and administrative expenses. E&M segment EBITDA margin was 7.8%, compared to 8.0% in the fourth quarter of 2023.

Transmission and Distribution

Everus' T&D segment revenues were $213.3 million during the fourth quarter of 2024, compared to $185.1 million in the fourth quarter of 2023. The increase was mostly driven by higher workloads in the utility end market, combined with a modest increase in revenues in the transportation end market. The utility market had higher workloads in the storm, underground, substation and telecommunication submarkets, and the transportation market had higher workloads in the traffic signalization and street lighting submarkets. These increases were partially offset by lower workloads in the distribution submarket.

T&D segment net income increased to $17.9 million during the fourth quarter of 2024, compared to $15.9 million in the fourth quarter of 2023. T&D segment net income margin was 8.4%, compared to 8.6% in the fourth quarter of 2023.

T&D segment EBITDA increased to $30.6 million in the fourth quarter of 2024, compared to $27.0 million in the fourth quarter of 2023. The increase was primarily from higher revenues, partially offset by lower gross profit margin and higher selling, general and administrative expenses. T&D segment EBITDA margin was 14.3%, compared to 14.6% in the fourth quarter of 2023.

Full Year 2024 Consolidated Results

Everus reported revenues of $2.85 billion in 2024, on par with $2.85 billion in 2023. Electrical and mechanical revenues softened $103.4 million, or 4.8%, while transmission and distribution revenues rose $102.5 million, or 14.0%.

The company's gross profit increased to $339.5 million in 2024, compared to $321.9 million in 2023. Relatively consistent revenues, combined with a higher gross profit margin of 11.9% in 2024 as compared to 11.3% in 2023, drove the increase in gross profit.

Everus' net income increased to $143.4 million, or diluted EPS of $2.81, in 2024, compared to $137.2 million, or diluted EPS of $2.69, in 2023. The increase was primarily from higher gross profit, higher income from joint ventures and lower interest expense, partially offset by higher selling, general and administrative expenses and increased income taxes. Net income margin was 5.0% in 2024, compared to 4.8% in 2023.

The company's EBITDA increased to $232.2 million in 2024, compared to $222.6 million in 2023. The increase was primarily from higher gross profit and higher income from joint ventures, partially offset by higher selling, general and administrative expenses. As a result, EBITDA margin was 8.1% in 2024, compared to 7.8% in 2023.

Everus' backlog increased to $2.8 billion at Dec. 31, 2024, compared to $2.0 billion at Dec. 31, 2023. E&M backlog was $2.5 billion, up from $1.7 billion, and T&D backlog was $274 million, down from $325 million.

Balance Sheet and Cash Flow Commentary

Balance Sheet

On Oct. 31, 2024, Everus entered into a five-year senior secured credit agreement whereby it has the capacity to incur indebtedness of up to $525.0 million, consisting of $300.0 million in aggregate principal amount of term loans and a $225.0 million revolving credit facility. Letters of credit are available under the credit agreement in an aggregate amount of up to $50.0 million. Everus drew $40.0 million under the revolving credit facility at the time of the spinoff on Oct. 31 to meet projected working capital needs. Everus used a portion of the net proceeds to repay its outstanding indebtedness to CEHI, LLC (Centennial), as well as a dividend to MDU Resources. Everus retained the remaining net proceeds.

In November 2024, Everus repaid the $40.0 million outstanding under the revolving credit facility and, as of Dec. 31, 2024, there were no amounts outstanding under the revolving credit facility.

As of Dec. 31, 2024, Everus had $69.9 million of unrestricted cash and cash equivalents, $300.0 million of gross debt and $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 months EBITDA, was 1.0x as of Dec. 31, 2024. See the Non-GAAP Measures sections for definitions and reconciliations of net debt and net leverage.

Everus' working capital, defined as current assets minus current liabilities, was $403.9 million at Dec. 31, 2024, compared to $335.2 million at Dec. 31, 2023.

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February 11, 2025 16:39 ET (21:39 GMT)