Q4 2024 Everus Construction Group Inc Earnings Call

And mute to prevent any background noise. After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Revpar win again. Thank you I would now like to turn the call over to Paul Barthel, I've ever <unk> Investor Relations.

Please go ahead.

Speaker Change: Thank you welcome to Everest construction groups fourth quarter 2024 results conference call.

Jeff: Leading the call today are CEO, Jeff <unk> and CFO Max Mercy.

Jeff: We issued a news release yesterday detailing our fourth quarter and full year 2020 for operational and financial results.

Jeff: This release together with the accompanying presentation materials are publicly available on our website at investors <unk> com.

Jeff: I would like to remind you that management's commentary and responses to questions. On today's conference call May include forward looking statements, which by their nature are uncertain and outside of the Companys control.

Jeff: Although these forward looking statements are based on management's current expectations and beliefs actual results could differ materially.

Jeff: For a discussion of some of the factors that could cause actual results to differ please refer to the risk factors section.

Jeff: Latest filings with the SEC.

Jeff: Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the news release issued yesterday and you can pay mix of todays presentation.

Jeff: Today's call will begin with prepared remarks from Jeff who will provide a review of our recent business performance followed.

Jeff: Followed by a financial update for Max.

Speaker Change: At the conclusion of these prepared remarks, we will open the line for your questions with that I will turn the call over to Jeff.

Jeff: Thank you Paul and good morning to everyone joining us on the call today.

Speaker Change: We are very excited to be here with you all today as we report our fourth quarter and our full year 2024 results, which wraps up a transformational year in our company's history highlighted by our spinoff from MDU resources that was completed at the end of October.

Speaker Change: Over the past 28 years, we have built <unk> into a leading specialty construction solutions provider.

Speaker Change: Through our dedicated focus on our people execution and customer relationships. The key pillars of our <unk> strategy, we have developed strong competitive positions and a wide range of diversified end markets.

Speaker Change: We have demonstrated a history of delivering consistent attractive financial results and based on the favorable demand trends benefiting many of our key end markets combined with our disciplined execution of our strategic framework. We look forward to further building on our track record of success.

Speaker Change: With that let's begin with our fourth quarter performance, which we highlight on slide four.

Speaker Change: We generated solid fourth quarter results highlighted by strong revenue growth consistent project execution continued financial discipline and strong backlog positioning us for continued positive momentum in 2025.

Speaker Change: Our fourth quarter revenue increased 20% driven by balanced growth across our diversified end markets driven by commercial data center growth.

Speaker Change: Institutional and utility.

Speaker Change: Our electrical and mechanical revenues increased 21%.

Speaker Change: While our transmission and distribution revenues grew 15%.

Speaker Change: Our fourth quarter EBITDA remained relatively flat as higher revenues were largely offset by incremental public company standup costs.

Speaker Change: As Max will discuss in more detail, while our consolidated fourth quarter EBITDA was essentially flat from last year due to dis synergy costs. Our segment EBITDA showed strong year over year growth.

Speaker Change: Our total backlog at the end of the fourth quarter was $2 8 billion, an increase of 38% from the end of the fourth quarter last year.

Our backlog was consistent with the third quarter, reflecting the strong fourth quarter revenue performance and typical seasonality and timing factors.

Speaker Change: Our year over year backlog growth highlights, our deep customer relationships and our strong strategic positioning in markets that are benefiting from favorable secular demand drivers.

Speaker Change: Our current backlog remains at a extremely healthy level and provides us with good visibility into our near term growth outlook.

Speaker Change: Based on our solid fourth quarter performance and our strict financial discipline. We ended the year with net leverage of one times, which is nicely below our long term target.

Speaker Change: This gives us significant financial flexibility to continue executing on our strategic growth objectives.

Speaker Change: We are very pleased with our solid fourth quarter financial and operational results and based on our backlog strength favorable end market trends and continued focus on execution, we expect strong momentum to continue into 2025.

Speaker Change: Based on these factors, we are providing 2025 financial guidance that calls for revenue to be in a range of three to $3 1 billion and EBITDA in a range of $210 million to $225 million.

Speaker Change: Now, let me shift gears, a bit and remind you of our fore River strategy, which forms the foundation for our value creation framework and as detailed on slide five of today's presentation.

Speaker Change: I spent quite a bit of time, describing our forever strategy last quarter. So I won't go into too much detail today, but as you can see our four of our strategy is focused on attracting retaining and training our most critical asset our employees, creating value for our customers and shareholders delivering safety and high quality.

Speaker Change: The execution and maintaining and growing our customer relationships.

Speaker Change: Our forever strategy is the basis for everything we do and is designed to deliver value creation through sustained profitable growth.

Speaker Change: Operational excellence and disciplined capital allocation.

Speaker Change: Our value creation framework as highlighted on slide six in todays presentation.

Speaker Change: We made important progress against these key pillars during 2024, and we remain committed to our framework as we look to drive value creation for our shareholders in the coming years.

Speaker Change: During 2024, we made key advancements on our growth priorities as demonstrated by our year end backlog growth of nearly 40%.

Speaker Change: Our long term customer relationships and history of strong execution enabled us to take advantage of the favorable demand drivers in our key end markets, resulting in meaningful backlog growth and positioning us for continued momentum in 2025.

Speaker Change: Importantly, a key aspect of our growth strategy is to expand geographically through satellite projects and during 2024, we continue to follow our long term partners into new markets.

Speaker Change: This enabled us to further strengthen our key customer relationships and allows us to expand our reach.

Speaker Change: Okay.

Speaker Change: 2024 was a strong year when we think about our operations execution is the second E and our forever strategy and it is always an important priority. During 2024, we benefited from very strong execution on several projects, which resulted in excellent margin capture during the year.

Speaker Change: Despite lower full year revenue, we actually exceeded the midpoint of our EBITDA guidance during 2024 due in large part to our strong project execution.

Speaker Change: Max will discuss our 2025 guidance in more detail.

Max: While we always strive for this level of execution. It is not the baseline assumption, where we start the year.

Speaker Change: So while we work hard to repeat our performance during 2025.

Speaker Change: Our guidance assumes a more normal level of project execution.

Speaker Change: During 2025, a key priority of our growth strategy will be strategic M&A, we will remain disciplined and look for the right deal, but as we've discussed in prior presentations following our spinoff from MDU resources, a key opportunity is the ability to have full discretion over our free.

Speaker Change: Cash flow to ramp up investments in both organic and inorganic opportunities.

Speaker Change: Timing is difficult to predict but we are excited to ramp up our M&A efforts.

Speaker Change: Our business benefits from an asset light model that generates strong free cash flow conversion and enables us to execute on our capital allocation strategy.

Speaker Change: We have entered 2025 and a very attractive financial position with a net leverage well below our targeted one five to two times range, which allows us ample flexibility to execute on our growth strategy.

Speaker Change: As a reminder, our capital allocation strategy prioritize investments in organic growth the pursuit of strategic acquisitions.

Speaker Change: And maintaining financial flexibility.

Speaker Change: Our full year 2020 for Capex increase from 2023, which reflects our desire to step up our investment in organic growth and as I. Just covered we are focused on ramping up our M&A efforts.

Speaker Change: We do not have a dividend policy or share repurchase authorization in place. However, we will work with our board to decide whether those returns are prudent in the future.

Speaker Change: As a new Standalone company with meaningful growth opportunities, we feel it's best to invest in ourselves to drive maximum shareholder value.

Speaker Change: As we highlight on slide seven of today's presentation, we expect our forever strategy to drive us toward our financial framework of compound annual revenue organic growth in a range of 5% to 7%, which combined with our disciplined focus on operational excellence will enable compound annual EBITDA growth of.

Speaker Change: 7% to 9%.

Speaker Change: We remain committed to these targets and are confident that we are in a strong position to deliver on these promises.

Speaker Change: Before I turn it over to Max I would like to spend just a few minutes discussing some key end market trends, especially given the new administration and some of the recent activity in the market.

Speaker Change: Overall, we continue to be encouraged by the demand drivers and our key end markets when.

Max: When we look at our T&D business the demand outlook remains favorable.

David: Difficult investments are needed by our customers to simply maintain reliability of the existing infrastructure, which as David.

David: The investment needed to modernize and update the grid is meaningful when you combine that baseline investment with utilities need to invest in meeting the projected load growth expected in the coming years from factors such as Evs, the electrification of industrial economy and increased power needs coming from data.

David: Centers, we see a very attractive market environment.

David: These factors will not only benefit our T&D business.

David: But also our E&S business as the electrification of our economy at data center construction will continue to be growth drivers.

David: There's clearly been a lot of noise that deep seek may impact the pace and magnitude of capex spending from domestic technology companies.

David: We are in the early stages and the potential impact from deep seek or any other emerging technologies remains to be seen.

David: Industry participants in the data center space have recently made positive comments about their future Capex plans. It did not signal any expected changes in their spending outlook.

We will of course continue to work with our customers and closely monitor the situation, but we are not expecting any material changes in the pace of investments at this time.

David: That said an important driver of our success has been our ability to quickly pivot when we see market trends evolving.

David: We benefit from a very diversified business and there are several favorable market drivers benefiting our business beyond data centers, including high Tech reassuring government and industrial projects and infrastructure investments.

David: We continuously monitor the market and adjust our resources as needed in order to drive growth and generate the highest return on our assets.

David: We remain optimistic about our key end markets. There are several factors that we continue to closely monitor including potential market impacts from the new administration in Washington.

David: In general we expect the administration to be positive for our industry given the probe business strategy and the promise of fewer regulatory headwinds. However, there are factors such as tariffs potentially higher inflation and higher interest rates that could impact economic growth and therefore our business.

David: We believe the favorable secular drivers will more than offset any potential headwinds and we will remain diligent in managing our business and focusing on maximizing our resources.

David: In summary, we are extremely excited about the opportunities in front of us as we begin our first full year as a stand alone public company.

We are in an excellent competitive position to take advantage of the favorable secular trends benefiting our end markets.

David: We are in an advantageous financial position that provides opportunities to invest in growth.

David: And we are committed to executing on our strategic framework and delivering value for all our key stakeholders.

Max: With that I'll turn it over to Max.

Thank you, Jeff and good morning, everyone I will provide additional details on the quarter give an update on our liquidity and balance sheet and wrap up with some additional details on our guidance.

Max: Beginning on slide nine in today's presentation.

Max: Net revenue for the fourth quarter of 2024 was $760 million, an increase of 19, 5% compared to the same period last year.

Max: The increase in revenue during the quarter was driven by <unk> revenues, increasing 21% and TD revenues increasing 15%.

Max: The growth was highlighted by our E N M commercial market led by the data Center Submarket.

Max: And momentum in our T&D utility end market led by the storm underground and substation sub markets.

Max: Total EBITDA was $58 million during the fourth quarter.

Max: A modest increase from the same period last year that was driven by solid revenue growth and increased income from joint ventures.

Max: Largely offset by incremental public company standup costs of $6 $3 million during the fourth quarter.

Max: This resulted in fourth quarter EBITDA margins of seven 7% down 150 basis points from last year.

Max: As for our full year 2024 results net revenue was $2 $85 billion on par with last year.

Max: <unk> revenues softened, 5%, while T&D revenues rose 14%.

The E&S segment saw increased revenue growth in the back half of the year, particularly in the data Center Submarket.

Max: The T&D segment continued its momentum throughout the year.

Max: The T&D utility end market was led by the transmission distribution and substation submarkets.

Max: The T&D transportation end market saw increases in traffic signal ovation and street lighting Submarket.

Max: Total EBITDA was $232 million in the 2020 for fiscal year up from $223 million last year. The increase in EBITDA was driven by increased income from joint ventures, and solid project execution.

Max: Partially offset by higher selling general and administrative expenses.

Max: EBITDA was also negatively impacted by $6 $3 million of public company cost.

Max: This all resulted in EBITDA margin of eight 1% up 30 basis points from last fiscal year.

Max: At December 31, total backlog was $2 8 billion in line with the third quarter and up 38% from backlog of $2 billion at the end of last year.

Our backlog growth reflects strong momentum in our E&S business.

Max: Bind with the impact of project timing as we had seen some <unk> projects get pushed out a bit.

Max: As a reminder, our backlog burn can move around from quarter to quarter based on the type and size of projects. Additionally.

Max: Additionally, a portion of our revenues, including our MSA work do not go through backlog.

Max: Given our current mix of our backlog, which includes some larger multiyear projects our backlog conversion may be extended relative to our historical pattern over the coming quarters.

Max: Now turning to our segment results, let's first look at A&M, where our fourth quarter revenue increased nearly 21% to about $550 million.

The increase was driven by higher workloads in our commercial institutional and service and other end markets, particularly in the data Center Submarket.

Max: Partially offset by decreased workloads in the industrial and renewables and markets.

Max: Our EBITDA was $42 7 million in the fourth quarter up from $36 4 million in the fourth quarter last year, which is an increase of 17%.

Max: This was the result of strong revenue growth and increased income from joint ventures, partially offset by increased selling general and administrative expenses and higher Standalone insurance costs.

Max: As a result, our EBIT margin was seven 8% down 20 basis points from last year.

Max: Our fourth quarter T&D revenue was $213 3 million up from $185 $1 million last year or an increase of 15% driven by growth in our storm underground and substation submarkets within utility end market, partially offset by timing of <unk>.

Max: Work in our distribution business.

Max: We also benefited from growth in our transportation end market due to higher workloads in our traffic signal inflation and street lighting services.

Max: T&D EBITDA was $30 6 million during the fourth quarter of 2024 up from $27 million last year.

Max: Our T&D EBITDA margin was 14, 3% during the fourth quarter down 30 basis points from last year, primarily as a result of additional standup insurance costs.

Max: Now, let's turn to our balance sheet liquidity and free cash flow.

As a reminder, in October 2024, we entered into a senior secured credit agreement with our bank group consisting of a $300 million term loan a.

Max: And a $225 million revolving credit facility.

Max: We drew down $40 million under the credit facility as of October 31 to fund projected working capital needs, which we fully repaid one month later in November of 2024.

Max: As of December 31, we had $70 million of unrestricted cash $300 million of gross debt and $209 million available under the revolving credit facility net of letters of credit.

Max: Net leverage therefore was approximately 1.0 times.

Max: We generated free cash flow of $129 million during 2024 down from $152 million in 2023.

Max: Our full year Capex was $48 3 million or approximately one 7% of revenue versus capex of $35 million in 2023 or approximately one 3% of revenue.

Max: The increase in Capex during 2024, and the resulting decline in free cash flow reflects our strategy increasing investments in growth to support our organic growth strategy.

Max: Wrapping up with guidance as Jeff said, we're providing 2025 guidance that calls for revenues in the range of 3% to $3 $1 billion.

Max: EBITDA in the range of $210 million to $225 million with $65 million to $70 million invested in capital expenditures.

Max: When looking at our revenue guidance. There are a couple of factors I would like to highlight first as we have discussed we are seeing a slightly longer backlog conversion cycle given that we're often being brought into projects earlier and we are winning larger projects.

Max: We expect this will continue which we view as a positive because it gives us increased visibility and is reflected in our guidance. Additionally project timing is always difficult to predict because it often shifts and we have continued to take a cautious approach in our modeling of project timing.

Max: As it relates towards EBIT guidance, we continue to forecast dis synergy costs of $28 million on a full year basis.

Speaker Change: As Jeff highlighted our 2024 results benefited from strong project execution with positive project efficiencies on several jobs.

Speaker Change: We of course strive for upside execution benefit every year.

Speaker Change: Our 2025 guidance assumes more normal levels of project execution.

Speaker Change: Overall, we're very pleased by our fourth quarter and full year 2024 financial results. We continued to benefit from favorable market trends, we are executing at a high level and our prudent financial management has put us in a strong financial position to execute on our strategic growth.

Speaker Change: Plan and remain on track to deliver on our long term financial targets.

Speaker Change: That completes our prepared remarks, operator, we're now ready for a question and answer portion of our call.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session again as a reminder, if you have dialed in and we would like to ask a question. Please press star followed by the number one on your telephone keypad. If you would like to withdraw your question. Please press star one again, we kindly ask everyone to limit themselves.

Speaker Change: The one question, we will pause for a moment to compile the Q&A roster. Thank you.

Speaker Change: Your first question comes from the line of Brent Thielman with D. A Davidson companies. Please go ahead.

Brent Thielman: Great. Thanks, Good morning, Jeff Max.

Speaker Change: I guess Mike.

Speaker Change: Hey, Good morning, just my question would be maybe digging a little more into how you approach the revenue guidance for 2025.

Speaker Change: Are there areas of the business that you won't typically embed into that forecast and then I guess just trying that.

Speaker Change: <unk>.

Speaker Change: Maxim talked about longer kind of backlog conversion and then the past are there any figures you can provide around that just in terms of your mix of large larger and longer duration projects today, maybe versus a few years ago. Thank you.

Speaker Change: Yes, Brent this is Jeff I'll start with the answer and then turn it over to Matt for additional comments as we built our company up and trained our people.

Speaker Change: Cross-trade are people, we've been able to build large complex projects. We've got more projects that are large and so with those large projects that we get involved with the owner and the general contractor early on our A&M side, we are able to plan procure materials.

Speaker Change: And because those drops are so complex they are taking longer to build because they are big and so.

We like that area.

Speaker Change: And market, especially in the data centers or hospitality or even industrial.

Speaker Change: Continue to be able to look where our resources maps of.

Speaker Change: The needs of our customers and build upon our success with large complex projects with a very qualified workforce.

Speaker Change: Yes.

Brent Thielman: Brent in terms of what the what the numbers are I mean, I don't think we're going to give any numbers today on what that looks like from a burn percentage, but it can be.

Brent Thielman: Upwards of 10 different from what it has been in the past so.

Speaker Change: As these jobs are big in.

Speaker Change: All of them are getting started now they just take a take longer to get completed so I.

Speaker Change: I think that's as much as we can comment on the burn.

Speaker Change: Got it okay I'll get back in queue. Thanks, guys.

Brent Thielman: Thanks Brent.

Speaker Change: Your next question comes from the line of Brian <unk> with Stifel. Please go ahead.

Brian: Yeah. Thanks, good morning, everybody.

Brian: Curious the latest you're seeing from a project pipeline perspective here and how youre thinking about backlog trends given given what youre seeing on the pipeline side.

Brian: Yes, we still see strong demand for our services in the commercial area, which includes data centers, which is a large largest part of our backlog.

Brian: Also in hospitality, which is within commercial market steady growth there.

Brian: So we're looking at similar workloads in 2025 as we saw in 2024, if you take a look at our industrial.

Brian: Market and also our institutional markets were seeing.

Brian: Some more water projects, we're seeing.

Brian: Manufacturing and battery plants.

Brian: Now that complements our T&D work, which of course high demand for transmission distribution substation, where things that we do very very well so power gas communications and also under grounding of utilities.

<unk> is a strong part of our business that lines up with our capabilities and based upon what we're hearing from our customers and what we're reading as far as market trends.

Brian: Very much aligned for doing that work in growing our business.

Speaker Change: Okay. That's helpful. And then I guess on the backlog, obviously, there was a little bit of a slowdown sequentially, New New awards slowed as well.

Speaker Change: Any comments on some of the drivers here and is this a reflection of any sort of changing demand environment at this point.

Speaker Change: And I think what you're seeing if you are talking about the third quarter backlog versus fourth quarter.

Speaker Change: That's really timing and we've got some of those projects secured in the third quarter, it's always better if those commitments earlier than later, so I think it's mostly timing and if you look at year over year from the end of last year to the prior year and it's up 38%. So we do see momentum in demand for our services is.

Speaker Change: Far as mix is fairly consistent with what we had over prior recent periods.

Speaker Change: Okay and then.

Speaker Change: Then.

Speaker Change: One I guess on corporate expenses, they were a little bit higher than we were expecting this quarter, the fourth quarter, even including the $6 million of the synergies that you touched on.

Speaker Change: Is there anything that's more one time in there and I guess, how should we be thinking about corporate expenses going forward.

Speaker Change: Yes.

Speaker Change: So nothing really one time and we do have some timing of things like our audit fee for the year ahead I'll be.

Speaker Change: Last two months of the year.

Speaker Change: But nothing really one time I mean, we're just kind of building our corporate teams here as we're standing ourselves up so I mean, we still feel really good about that $28 million number for the full year.

Speaker Change: And other than the RFP, nothing really different timing maybe of some contracts we sign as a new public company, but I think all of that would be included in our $28 million number for the for a full year basis. So.

Speaker Change: Okay. That's helpful.

Speaker Change: Yeah, just to say you can't really take the $6 three to two and extrapolate that right. So.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Then I guess just one more for me excluding dis synergies it appears that the mid point.

Speaker Change: EBITDA margin guide is down about 30 basis points from 2024, I guess can you talk about what is driving that.

Speaker Change: Yes.

Speaker Change: A very close look at our backlog timing of our backlog.

Speaker Change: And also.

Speaker Change: Taking a look at 2025 versus 2024 so.

Speaker Change: We are looking to continue to build upon our our year, we added 2024.

Speaker Change: Took a very.

Speaker Change: Thorough look at what those numbers look like for us and landed where we did on our guidance.

I think we know Jeff and I, both touched on it during our portions of the script rather than we had really good execution.

Speaker Change: In 2024 and in the fourth quarter, as well and I think where we're assuming more normal kind of execution based on where we are holding our backlog on the 25 fiscal year, but your numbers are correct.

Speaker Change: Okay I appreciate it thank you I'll pass it on.

Speaker Change: Thank you. Thank you.

Speaker Change: Your next question comes from the line of Ian Zaffino with Oppenheimer. Please go ahead.

Ian Zaffino: Great. Thank you.

Ian Zaffino: As far as the backlog taking longer or are we still kind of at that 75% deliver over the next 12 months.

Ian Zaffino: What would be your assumptions for kind of the non backlog business. So like the book and burn the Msas.

Ian Zaffino: Year over year.

Ian Zaffino: Yeah.

Ian Zaffino: Yeah, So as I mentioned earlier, the average project sizes is getting slightly larger and.

Ian Zaffino: Our ability to handle those projects and get onboard early with our customers is really adjusting or changing.

Ian Zaffino: Slightly the backlog burn as those projects are larger more complex.

Ian Zaffino: And longer that has changed in the mix of all of our work, which is fairly diversified as far as the <unk>.

Ian Zaffino: MSA work the non backlog work still still very strong for our business. We've got dozens of Msas and you take a look at our.

Ian Zaffino: The work that we do for our utility customers and in the forecast and our ability to be able to continue building projects for them.

Ian Zaffino: Especially with the customers that we have relationships with for 2030 years. So.

Ian Zaffino: We will continue to be able to leverage our performance through our execution and strengthen those relationships and build that backlog and continue to diversify.

Ian Zaffino: Our business.

Ian Zaffino: Okay. So I guess the way I'm looking at I'm, using like a 75%, adding $1 billion or so for.

Ian Zaffino: The non backlog and getting higher than where you guys arent, but.

Ian Zaffino: Regardless.

Ian Zaffino: Maybe we shift the M&A what are your thinking on the M&A side.

Ian Zaffino: How large do you need is it.

Ian Zaffino: Listen to.

Ian Zaffino: Tools, what is it and then as you invest on the prefab side when do we expect to see sort of the benefits of the investment in the brief thoughts. Thanks.

Ian Zaffino: Okay Great question.

Speaker Change: I'll start and have Max add to my comments. So on the M&A side, we're really excited about that and we've got the financial capabilities to.

Speaker Change: Have a disciplined M&A approach, we're going to look for companies. We are looking for companies that have high integrity.

Speaker Change: Get their work not price based.

Speaker Change: Based upon overall value and relationships looking for companies that have strong leadership and a very strong culture of safety are also looking for the geographic expansion in both our T&D and A&M segments. So M&A is something that we're very excited about and we've got a strategy and approach to them.

Speaker Change: As far as pre fab, we have expanded our pre fab facilities and we are leveraging our prefab our customers care about what we do in pre fabrication because it helps reduce congestion on the projects thats. Good for US that's good for the other sub trades on the project so.

Speaker Change: We will continue to grow our prefab capabilities and.

Speaker Change: For buyback capital support and that is part of our plan in 2025 and beyond that yeah. So for me.

And so I think.

Speaker Change: Is your question part of your question there.

Speaker Change: I mean, the reality is we're at one times net leverage today and I think we've been pretty public about where our leverage targets are so.

Speaker Change: Turn of EBITDA still gets us keeps us within those long term targets.

Speaker Change: When you look at the cash flow that we.

Speaker Change: Spit out this year over $100 million of free cash flow.

Speaker Change: You can kind of see the magnitude of what we could accomplish and still be within our long term goals from.

Speaker Change: From the Capex side again, we want to continue to invest in us.

Speaker Change: As we grow our fleet and vehicles bucket trucks, Derek Derek Diggers right. So I mean, all these things help.

Speaker Change: Us be more efficient and effective.

Speaker Change: For the long term.

Speaker Change: From a pre fab perspective, when is that going on really showing the results. I mean this is a multiyear thing right. The goal is to continue to build more and more prefab facilities closer to some of these larger projects and as those get completed.

Speaker Change: And we're very efficient and.

Speaker Change: And execute well on those projects with those prefab facilities, they start to show up in our results. So.

It's more of a multi year year opportunity for us and then it should should continue to expand as we continue to add those.

Speaker Change: Okay. Thank you very much.

Ann: Thanks Ann.

Speaker Change: Your next question comes from the line of Chris send yet with Wolfe Research. Please go ahead.

Speaker Change: Yes, hi, guys good morning.

Ann: Quick question.

Speaker Change: Max on the dis synergies cost of $28 million kind of using that as a run rate is that something that we should just expect to continue as we look at modeling some of the outer years or do you expect there to be some type of synergies that develop over time, where that number might fall or.

Speaker Change: Or and maybe even if there's duplicate costs right now with TSA is going on at the same time that you're trying to build stuff out yourself, how should we be thinking about that.

Speaker Change: Yes.

Speaker Change: Fair question.

Speaker Change: I think what we're really looking at is thats more of kind of our standup costs that that stays around.

Speaker Change: You know again I don't know what happens with insurance markets as we've talked about Standalone insurances, probably the bigger biggest component of all of that so I'm not sure what happens with insurance costs. Hopefully, we continued to do better and get ourselves as a player in the market and and hope to do better on that but.

Speaker Change: Given where we're at in the World and what's transpired in the last several months I don't know insurance is going to be going down anytime in the future.

Speaker Change: And in terms of the rest of the costs. The reality is we're kind of building this corporate team right and until we can make sure we have the the mass and the right people in the right places I don't think we're looking at cutting cutting some of those costs.

Speaker Change: As we go forward.

Speaker Change: Specifically talked about.

Speaker Change: The service agreements TSA right I mean, I think we actually have a pretty well planned, whereas the TSA tails off we're adding people full time, so I don't think theres, a big opportunity for savings there, but I mean, yes. The reality is we want to do the most with the available labor.

Speaker Change: And the available people, but the reality is we want to make sure we're servicing and supporting and growing and as we grow and become a larger and larger company you might have to add another incremental corporate position three years four years down the road right. So.

Speaker Change: I would model. It is that is kind of in there the $28 million of run rate and then as we get bigger that should become a smaller and smaller percentage of our revenue.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thanks, Chris.

Speaker Change: Your next question comes from the line of Chris <unk> House with Siebert Williams Cheng. Please go ahead.

Speaker Change: Hey, guys how are you.

Speaker Change: Chris.

Speaker Change: Jeff you did a good job of sort of.

Speaker Change: Walking through the new administration.

Speaker Change: I wanted to get some thoughts I would agree it seems like if anything the data center Capex is really just balloons.

Speaker Change: But on the downside what are your thoughts of areas, where you might have some concerns maybe renewables battery storage or something along those lines. If you got any thoughts there.

Speaker Change: And we're paying very close attention to that and especially with our customers listening to what their plans are I think its early so its.

Speaker Change: The election and to see where those will play out renewables was small part of our business, but it's actually up this past year or so.

Speaker Change: And that diversification strategy that we have for our business, we're going to be able to pivot.

Speaker Change: Capture market set are increasing and also redeploy our cross screen people from markets that may be cooled off so we have some concern over tariffs, but we're watching that closely.

As.

Speaker Change: It looks a little bit like Coca Cola brought to us.

Speaker Change: We mitigated our risk and our customers' risk by being very close to our suppliers and <unk>.

Speaker Change: Spending more time.

Speaker Change: Evaluating procurement providing alternative.

Speaker Change: Products and solutions to be able to stay.

Speaker Change: Stay on schedule, we accurately.

Speaker Change: Over the year 2020, we had a record year. So we'll continue to be anticipatory mitigate the risks and communicate with our customers on the T&D and EAM side too.

Speaker Change: Two.

Speaker Change: Avoid any sort of impacts that we have for our business into our customers' business.

Speaker Change: Okay.

Speaker Change: You touched on this a little bit.

Speaker Change: But I'm kind of curious on a couple of levels.

Speaker Change: We just had the big wildfire disaster in California.

Speaker Change: Are you seeing.

Speaker Change: Geographically broader under grounding I don't know what the right word is momentum from some of your T&D customers and also.

Speaker Change: Some of the data centers are fairly remote.

Speaker Change: Are you seeing under grounding, becoming a feature of the data center design for their interconnection.

Speaker Change: Interconnections.

Speaker Change: Yes.

Talk about the California, wildfires first and we were honored to be able to answer the call from our utility customers.

Speaker Change: Provide restoration and repair of AV services. So we've got businesses in southern California, We do primarily underground work and we deployed many crews over to help those in need so.

Speaker Change: Under grounding has been a big part of our business on the T&D side, we've been doing it for decades. So we do see continued trend for more underground work from our customers as far as the data center side.

Speaker Change: Really seen.

Speaker Change: On the underground ing changes from what.

Speaker Change: As designed as far as getting services over to primarily electric to our customers. So.

Speaker Change: Don't know about any changes on the datacenter side, but certainly with the risk there I believe our customers are looking at that as a option. There's a cost element to it Chris as you know and I think we.

Speaker Change: We will be involved with providing those constructive ability reviews as we get on board early with these projects.

Speaker Change: Look at best methods and best opportunities to be able to provide the customers what they need.

Speaker Change: Okay Lastly.

Speaker Change: Lastly.

Speaker Change: You sort of.

Speaker Change: Touched on this very briefly about storm restoration work in the fourth quarter, obviously there was some.

Speaker Change: California work recently.

Speaker Change: But it was a pretty stormy fourth quarter can you give us any kind of.

Speaker Change: Color on what storm restoration work in the fourth quarter looked like year over year.

Speaker Change: High margin quarter for you.

Speaker Change: Yes, typically we don't give the detail on our storm work.

Speaker Change: Again were available.

Speaker Change: Available to go do the recovery work in store work so.

Speaker Change: California, I mentioned earlier, but also some of the other related rather whether work.

Speaker Change: It's an important for our business, it's more important that we're able to help those in need to be able to restore and repair and get them back on their feet. So.

Speaker Change: I'll go to that level of detail, we do that work and we don't necessarily plan for that because we can't predict.

Speaker Change: The nature and the.

Speaker Change: The weather so.

Speaker Change: The storm work is something that we're we're honored to do to help and answer the Colbert utility customers.

Speaker Change: Okay.

Speaker Change: I get it it's difficult to sort of plan for storm.

Speaker Change: <unk> work in general but.

Speaker Change: Given the outlook for wildfire.

Proclivity, let's say and storm activity sort of expecting to gain momentum over time is that an area, where you'd like to have more resources available.

Speaker Change: Yes.

Speaker Change: We definitely want to be able to respond to our customers and to be able to help out and get those services back.

Speaker Change: And in place so we've got the capital necessary to be able to build up our equipment and our people.

Speaker Change: Yes, we want to be able to help those would need and we look for the readiness for our crews and our equipment to be able to do any of that work going forward. The most recent storm work or storm that we had in in the east.

Speaker Change: We didn't have a lot of storm work associated with that.

Speaker Change: Typical type of weather conditions type of snow dryer snow versus.

Speaker Change: Ice.

Speaker Change: Teardown lines and pulls so.

Speaker Change: We've got a good.

Speaker Change: Planned to be able to deploy quickly and when you think about margin to under the margin. We're taking crews away from or are fixed price at MSA work. So there could be some trade off there so.

Speaker Change: Just want to emphasize that.

Speaker Change: Pleased to go do the work it takes us off of our plan of doing our normal work and when we get back to our regular work.

Speaker Change: We're back we're back to our core of what we do.

Ian Zaffino: Got you. Thanks, so much I appreciate the detail Jeff.

Speaker Change: Thanks, Greg Thank you Chris.

Your next question comes from the line of Brent Thielman with D. A Davidson <unk> company. Please go ahead.

Speaker Change: Alright, thanks, guys.

Speaker Change: Yeah.

Speaker Change: Look at the business over the last number of years you have had a book positive book to burn or at least one times or greater.

Speaker Change: As you think about everything that's happening in your end markets and the pipeline over the course of <unk>.

25 is there any reason to think your book to Bill would be less than one times of your bookings can't grow.

This year again with all the activity in the space.

Speaker Change: I think theres a lot of optimism about our side as far as the work that we have in our backlog and our ability to be able to execute that work.

Speaker Change: And also on backlog work so well.

Speaker Change: Sort of excitement and.

Speaker Change: In the economy and I think we're.

Speaker Change: We see.

Speaker Change: Some enthusiasm and optimism on our on our on our side of the.

Speaker Change: And look forward to be able to be able to.

Speaker Change: Beat those expectations.

Yes.

And maybe just one more from a seasonality perspective. This is something different to the cadence and revenue you are expecting this year, maybe versus just looking at it in the past because you've talked about these large projects and the timing of that so I don't know.

Is it more backend loaded than usual type of year, but if you could just comment on that that'd be great.

Speaker Change: Yes.

Speaker Change: With most of our work in our <unk> segment, we are.

Speaker Change: Not as affected by weather as we could be in our T&D and work year round with both segments.

Speaker Change: And have had some impact with weather, but usually not that impacted overall by weather, especially when those projects are planned in those particular regions and accordance with weather patterns.

Speaker Change: Thanks, guys.

Speaker Change: Yeah.

Speaker Change: As there are no further questions at this time that concludes today's Q&A session I would now like to turn the call over to Jeff for closing remarks.

Jeff: All right. Thank you operator, and thank you all again for joining US today, we are very excited about the opportunities ahead for Everest, where scale for success and we're built for growth and we are confident that we are well positioned to create long term value as a standalone public company.

Jeff: We've enjoyed the opportunity to meet with many of you over the last few months since our spin and we look forward to continuing the conversation in the coming quarters.

Jeff: Thank you for your time and interest in <unk> and this concludes today's call.

Jeff: That concludes today's meeting thank you for your participation you may now disconnect.

Operator: Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star followed by the number one on your telephone keypad. If you would like to withdraw your question, press Star one again. Thank you. I would now like to turn the call over to Paul Bartolai, Everus Investor Relations. Please go ahead.

Operator: Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star followed by the number one on your telephone keypad. If you would like to withdraw your question, press Star one again. Thank you. I would now like to turn the call over to Paul Bartolai, Everus Investor Relations. Please go ahead.

Today, we are very excited about the opportunities ahead for Everest.

Our scale for success and we're built for growth and we are confident that we are well positioned to create long term value as a standalone public company.

We've enjoyed the opportunity to meet with many of you over the last few months since our spin and we look forward to continuing the conversation in the coming quarters.

Paul Bartolai: Thank you. Welcome to Everus Construction Group's Q4 2024 results conference call. Leading the call today are CEO Jeffrey Thiede and CFO Maximillian Marcy. We issued a news release yesterday detailing our Q4 and full year 2024 operational and financial results. This release, together with the accompanying presentation materials, is publicly available on our website at investors.everus.com. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results could differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest filings with the SEC.

Paul Bartolai: Thank you. Welcome to Everus Construction Group's Q4 2024 results conference call. Leading the call today are Chief Executive Officer Jeffrey Thiede and CFO Maximillian Marcy. We issued a news release yesterday detailing our Q4 and full year 2024 operational and financial results. This release, together with the accompanying presentation materials, is publicly available on our website at investors.everus.com. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results could differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest filings with the SEC.

Thank you for your time and interest in <unk> and this concludes today's call.

That concludes today's CD. Thank you for your participation you may now disconnect.

[music].

Okay.

Paul Bartolai: Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the news release issued yesterday, and in the appendix of today's presentation. Today's call will begin with prepared remarks from Jeff, who will provide a review of our recent business performance, followed by a financial update from Max. At the conclusion of these prepared remarks, we will open the line for your questions. With that, I'll turn the call over to Jeff.

Paul Bartolai: Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the news release issued yesterday, and in the appendix of today's presentation. Today's call will begin with prepared remarks from Jeff, who will provide a review of our recent business performance, followed by a financial update from Max. At the conclusion of these prepared remarks, we will open the line for your questions. With that, I'll turn the call over to Jeff.

Jeffrey Thiede: Thank you, Paul, and good morning to everyone joining us on the call today. We are very excited to be here with you all today as we report our Q4 and our full year 2024 results, which wraps up a transformational year in our company's history, highlighted by our spin-off from MDU Resources that was completed at the end of October. Over the past 28 years, we have built Everus into a leading specialty construction solutions provider. Through our dedicated focus on our people, execution, and customer relationships, the key pillars of our Forever Strategy, we have developed strong competitive positions in a wide range of diversified end markets. We have demonstrated a history of delivering consistent, attractive financial results.

Jeffrey Thiede: Thank you, Paul, and good morning to everyone joining us on the call today. We are very excited to be here with you all today as we report our Q4 and our full year 2024 results, which wraps up a transformational year in our company's history, highlighted by our spin-off from MDU Resources that was completed at the end of October. Over the past 28 years, we have built Everus into a leading specialty construction solutions provider. Through our dedicated focus on our people, execution, and customer relationships, the key pillars of our Forever Strategy, we have developed strong competitive positions in a wide range of diversified end markets. We have demonstrated a history of delivering consistent, attractive financial results.

Jeffrey Thiede: Based on the favorable demand trends benefiting many of our key end markets, combined with our disciplined execution of our strategic framework, we look forward to further building on our track record of success. With that, let's begin with our Q4 performance, which we highlight on slide 4. We generated solid Q4 results highlighted by strong revenue growth, consistent project execution, continued financial discipline, and strong backlog, positioning us for continued positive momentum in 2025. Our Q4 revenue increased 20%, driven by balanced growth across our diversified end markets, driven by commercial data center growth, institutional and utility. Our electrical and mechanical revenues increased 21%, while our transmission and distribution revenues grew 15%. Our Q4 EBITDA remained relatively flat as higher revenues were largely offset by incremental public company standup costs.

Jeffrey Thiede: Based on the favorable demand trends benefiting many of our key end markets, combined with our disciplined execution of our strategic framework, we look forward to further building on our track record of success. With that, let's begin with our Q4 performance, which we highlight on slide 4. We generated solid Q4 results highlighted by strong revenue growth, consistent project execution, continued financial discipline, and strong backlog, positioning us for continued positive momentum in 2025. Our Q4 revenue increased 20%, driven by balanced growth across our diversified end markets, driven by commercial data center growth, institutional and utility. Our electrical and mechanical revenues increased 21%, while our transmission and distribution revenues grew 15%. Our Q4 EBITDA remained relatively flat as higher revenues were largely offset by incremental public company standup costs.

Jeffrey Thiede: As Max will discuss in more detail, while our consolidated Q4 EBITDA was essentially flat from last year due to dissynergy costs, our segment EBITDA showed strong year-over-year growth. Our total backlog at the end of Q4 was $2.8 billion, an increase of 38% from the end of Q4 last year. Our backlog was consistent with Q3, reflecting the strong Q4 revenue performance, typical seasonality, and timing factors. Our year-over-year backlog growth highlights our deep customer relationships and our strong strategic positioning in markets that are benefiting from favorable secular demand drivers. Our current backlog remains at an extremely healthy level and provides us with good visibility into our near-term growth outlook.

Jeffrey Thiede: As Max will discuss in more detail, while our consolidated Q4 EBITDA was essentially flat from last year due to dissynergy costs, our segment EBITDA showed strong year-over-year growth. Our total backlog at the end of Q4 was $2.8 billion, an increase of 38% from the end of Q4 last year. Our backlog was consistent with Q3, reflecting the strong Q4 revenue performance, typical seasonality, and timing factors. Our year-over-year backlog growth highlights our deep customer relationships and our strong strategic positioning in markets that are benefiting from favorable secular demand drivers. Our current backlog remains at an extremely healthy level and provides us with good visibility into our near-term growth outlook.

Jeffrey Thiede: Based on our solid Q4 performance and our strict financial discipline, we ended the year with net leverage of 1x, which is nicely below our long-term target. This gives us significant financial flexibility to continue executing on our strategic growth objectives. We are very pleased with our solid Q4 financial and operational results. Based on our backlog strength, favorable end market trends, and continued focus on execution, we expect strong momentum to continue into 2025. Based on these factors, we are providing 2025 financial guidance that calls for revenue to be in a range of $3 to 3.1 billion and EBITDA in a range of $210 to 225 million.

Jeffrey Thiede: Based on our solid Q4 performance and our strict financial discipline, we ended the year with net leverage of 1x, which is nicely below our long-term target. This gives us significant financial flexibility to continue executing on our strategic growth objectives. We are very pleased with our solid Q4 financial and operational results. Based on our backlog strength, favorable end market trends, and continued focus on execution, we expect strong momentum to continue into 2025. Based on these factors, we are providing 2025 financial guidance that calls for revenue to be in a range of $3 to 3.1 billion and EBITDA in a range of $210 to 225 million.

Jeffrey Thiede: Now, let me shift gears a bit and remind you of our Forever Strategy, which forms the foundation for our value creation framework and is detailed on slide five of today's presentation. I spent quite a bit of time describing our Forever Strategy last quarter, so I won't go into too much detail today. As you can see, our Forever Strategy is focused on attracting, retaining, and training our most critical asset, our employees, creating value for our customers and shareholders, delivering safety and high-quality execution, and maintaining and growing our customer relationships. Our Forever Strategy is the basis for everything we do and is designed to deliver value creation through sustained profitable growth, operational excellence, and disciplined capital allocation. Our value creation framework is highlighted on slide six in today's presentation.

Jeffrey Thiede: Now, let me shift gears a bit and remind you of our Forever Strategy, which forms the foundation for our value creation framework and is detailed on slide five of today's presentation. I spent quite a bit of time describing our Forever Strategy last quarter, so I won't go into too much detail today. As you can see, our Forever Strategy is focused on attracting, retaining, and training our most critical asset, our employees, creating value for our customers and shareholders, delivering safety and high-quality execution, and maintaining and growing our customer relationships. Our Forever Strategy is the basis for everything we do and is designed to deliver value creation through sustained profitable growth, operational excellence, and disciplined capital allocation. Our value creation framework is highlighted on slide six in today's presentation.

Jeffrey Thiede: We made important progress against these key pillars during 2024, and we remain committed to our framework as we look to drive value creation for our shareholders in the coming years. During 2024, we made key advancements on our growth priorities, as demonstrated by our year-end backlog growth of nearly 40%. Our long-term customer relationships and history of strong execution enabled us to take advantage of the favorable demand drivers in our key end markets, resulting in meaningful backlog growth and positioning us for continued momentum in 2025. Importantly, a key aspect of our growth strategy is to expand geographically through satellite projects. During 2024, we continued to follow our long-term partners into new markets. This enabled us to further strengthen our key customer relationships and allows us to expand our reach. 2024 was a strong year when we think about our operations.

Jeffrey Thiede: We made important progress against these key pillars during 2024, and we remain committed to our framework as we look to drive value creation for our shareholders in the coming years. During 2024, we made key advancements on our growth priorities, as demonstrated by our year-end backlog growth of nearly 40%. Our long-term customer relationships and history of strong execution enabled us to take advantage of the favorable demand drivers in our key end markets, resulting in meaningful backlog growth and positioning us for continued momentum in 2025. Importantly, a key aspect of our growth strategy is to expand geographically through satellite projects. During 2024, we continued to follow our long-term partners into new markets.

Jeffrey Thiede: This enabled us to further strengthen our key customer relationships and allows us to expand our reach. 2024 was a strong year when we think about our operations.

Jeffrey Thiede: Execution is the second E in our Forever Strategy, and it is always an important priority. During 2024, we benefited from very strong execution on several projects, which resulted in excellent margin capture during the year. Despite lower full-year revenue, we actually exceeded the midpoint of our EBITDA guidance during 2024, due in large part to our strong project execution. Max will discuss our 2025 guidance in more detail. While we always strive for this level of execution, it is not the baseline assumption when we start the year. While we work hard to repeat our performance during 2025, our guidance assumes a more normal level of project execution. During 2025, a key priority of our growth strategy will be strategic M&A.

Jeffrey Thiede: Execution is the second E in our Forever Strategy, and it is always an important priority. During 2024, we benefited from very strong execution on several projects, which resulted in excellent margin capture during the year. Despite lower full-year revenue, we actually exceeded the midpoint of our EBITDA guidance during 2024, due in large part to our strong project execution. Max will discuss our 2025 guidance in more detail. While we always strive for this level of execution, it is not the baseline assumption when we start the year. While we work hard to repeat our performance during 2025, our guidance assumes a more normal level of project execution. During 2025, a key priority of our growth strategy will be strategic M&A.

Jeffrey Thiede: We will remain disciplined and look for the right deal, but as we've discussed in prior presentations following our spin-off from MDU Resources, a key opportunity is the ability to have full discretion over our free cash flow to ramp up investments in both organic and inorganic opportunities. Timing is difficult to predict, but we are excited to ramp up our M&A efforts. Our business benefits from an asset-light model that generates strong free cash flow conversion and enables us to execute on our capital allocation strategy. We have entered 2025 in a very attractive financial position with a net leverage well below our targeted 1.5 to 2 times range, which allows us ample flexibility to execute on our growth strategy. As a reminder, our capital allocation strategy prioritizes investments in organic growth, the pursuit of strategic acquisitions, and maintaining financial flexibility.

Jeffrey Thiede: We will remain disciplined and look for the right deal, but as we've discussed in prior presentations following our spin-off from MDU Resources, a key opportunity is the ability to have full discretion over our free cash flow to ramp up investments in both organic and inorganic opportunities. Timing is difficult to predict, but we are excited to ramp up our M&A efforts. Our business benefits from an asset-light model that generates strong free cash flow conversion and enables us to execute on our capital allocation strategy. We have entered 2025 in a very attractive financial position with a net leverage well below our targeted 1.5 to 2 times range, which allows us ample flexibility to execute on our growth strategy. As a reminder, our capital allocation strategy prioritizes investments in organic growth, the pursuit of strategic acquisitions, and maintaining financial flexibility.

Jeffrey Thiede: Our full year 2024 CapEx increased from 2023, which reflects our desire to step up our investment in organic growth. As I just covered, we are focused on ramping up our M&A efforts. We do not have a dividend policy or share repurchase authorization in place. However, we will work with our board to decide when those returns are prudent in the future. As a new standalone company with meaningful growth opportunities, we feel it's best to invest in ourselves to drive maximum shareholder value. As we highlight on slide 7 of today's presentation, we expect our Forever Strategy to drive us toward a financial framework of compound annual revenue organic growth in a range of 5% to 7%, which combined with our discipline focused on operational excellence, will enable compound annual EBITDA growth of 7% to 9%.

Jeffrey Thiede: Our full year 2024 CapEx increased from 2023, which reflects our desire to step up our investment in organic growth. As I just covered, we are focused on ramping up our M&A efforts. We do not have a dividend policy or share repurchase authorization in place. However, we will work with our board to decide when those returns are prudent in the future. As a new standalone company with meaningful growth opportunities, we feel it's best to invest in ourselves to drive maximum shareholder value. As we highlight on slide 7 of today's presentation, we expect our Forever Strategy to drive us toward a financial framework of compound annual revenue organic growth in a range of 5% to 7%, which combined with our discipline focused on operational excellence, will enable compound annual EBITDA growth of 7% to 9%.

Jeffrey Thiede: We remain committed to these targets and are confident that we are in a strong position to deliver on these promises. Before I turn it over to Max, I would like to spend just a few minutes discussing some key end market trends, especially given the new administration and some of the recent activity in the market. Overall, we continue to be encouraged by the demand drivers in our key end markets. When we look at our T&D business, the demand outlook remains favorable. Significant investments are needed by our customers to simply maintain reliability of the existing infrastructure, which is dated. The investment needed to modernize and update the grid is meaningful.

Jeffrey Thiede: We remain committed to these targets and are confident that we are in a strong position to deliver on these promises. Before I turn it over to Max, I would like to spend just a few minutes discussing some key end market trends, especially given the new administration and some of the recent activity in the market. Overall, we continue to be encouraged by the demand drivers in our key end markets. When we look at our T&D business, the demand outlook remains favorable. Significant investments are needed by our customers to simply maintain reliability of the existing infrastructure, which is dated. The investment needed to modernize and update the grid is meaningful.

Jeffrey Thiede: When you combine that baseline investment with utilities needing to invest in meeting the projected load growth expected in the coming years from factors such as EVs, the electrification of industrial economy, and increased power needs coming from data centers, we see a very attractive market environment. These factors will not only benefit our T&D business, but also our E&M business as the electrification of our economy and data center construction will continue to be growth drivers. There's clearly been a lot of noise that DeepSeek may impact the pace and magnitude of CapEx spending from domestic technology companies. We are in the early stages, and the potential impact from DeepSeek or any other emerging technologies remains to be seen. Industry participants in the data center space have recently made positive comments about their future CapEx plans. It did not signal any expected changes in their spending outlook.

Jeffrey Thiede: When you combine that baseline investment with utilities needing to invest in meeting the projected load growth expected in the coming years from factors such as EVs, the electrification of industrial economy, and increased power needs coming from data centers, we see a very attractive market environment. These factors will not only benefit our T&D business, but also our E&M business as the electrification of our economy and data center construction will continue to be growth drivers. There's clearly been a lot of noise that DeepSeek may impact the pace and magnitude of CapEx spending from domestic technology companies. We are in the early stages, and the potential impact from DeepSeek or any other emerging technologies remains to be seen.

Jeffrey Thiede: Industry participants in the data center space have recently made positive comments about their future CapEx plans. It did not signal any expected changes in their spending outlook.

Jeffrey Thiede: We will, of course, continue to work with our customers and closely monitor the situation, but we are not expecting any material changes in the pace of investments at this time. That said, an important driver of our success has been our ability to quickly pivot when we see market trends evolving. We benefit from a very diversified business, and there are several favorable market drivers benefiting our business beyond data centers, including high tech reshoring, government and industrial projects, and infrastructure investments. We continuously monitor the market and adjust our resources as needed in order to drive growth and generate the highest return on our assets. We remain optimistic about our key end markets. There are several factors that we continue to closely monitor, including potential market impacts from the new administration in Washington.

Jeffrey Thiede: We will, of course, continue to work with our customers and closely monitor the situation, but we are not expecting any material changes in the pace of investments at this time. That said, an important driver of our success has been our ability to quickly pivot when we see market trends evolving. We benefit from a very diversified business, and there are several favorable market drivers benefiting our business beyond data centers, including high tech reshoring, government and industrial projects, and infrastructure investments. We continuously monitor the market and adjust our resources as needed in order to drive growth and generate the highest return on our assets. We remain optimistic about our key end markets. There are several factors that we continue to closely monitor, including potential market impacts from the new administration in Washington.

Jeffrey Thiede: In general, we expect the administration to be positive for our industry, given the pro-business strategy and the promise of fewer regulatory headwinds. However, there are factors such as tariffs, potentially higher inflation, and higher interest rates that could impact economic growth and therefore our business. We believe the favorable secular drivers will more than offset any potential headwinds, and we will remain diligent in managing our business and focusing on maximizing our resources. In summary, we are extremely excited about the opportunities in front of us as we begin our first full year as a standalone public company. We are in an excellent competitive position to take advantage of the favorable secular trends benefiting our end markets. We are in an advantageous financial position that provides opportunities to invest in growth, and we are committed to executing on our strategic framework and delivering value for all our key stakeholders.

Jeffrey Thiede: In general, we expect the administration to be positive for our industry, given the pro-business strategy and the promise of fewer regulatory headwinds. However, there are factors such as tariffs, potentially higher inflation, and higher interest rates that could impact economic growth and therefore our business. We believe the favorable secular drivers will more than offset any potential headwinds, and we will remain diligent in managing our business and focusing on maximizing our resources. In summary, we are extremely excited about the opportunities in front of us as we begin our first full year as a standalone public company. We are in an excellent competitive position to take advantage of the favorable secular trends benefiting our end markets.

Jeffrey Thiede: We are in an advantageous financial position that provides opportunities to invest in growth, and we are committed to executing on our strategic framework and delivering value for all our key stakeholders. With that, I'll turn it over to Max.

Jeffrey Thiede: With that, I'll turn it over to Max.

Maximillian Marcy: Thank you, Jeff, and good morning, everyone. I will provide additional details on the quarter, give an update on our liquidity and balance sheet, and wrap up with some additional details on our guidance. Beginning on slide 9 in today's presentation, net revenue for Q4 2024 was $760 million, an increase of 19.5% compared to the same period last year. The increase in revenue during the quarter was driven by E&M revenues increasing 21% and T&D revenues increasing 15%. The growth was highlighted by our E&M commercial market, led by the data center sub-market, and momentum in our T&D utility end market, led by the storm, underground, and substation sub-markets.

Maximillian Marcy: Thank you, Jeff, and good morning, everyone. I will provide additional details on the quarter, give an update on our liquidity and balance sheet, and wrap up with some additional details on our guidance. Beginning on slide 9 in today's presentation, net revenue for Q4 2024 was $760 million, an increase of 19.5% compared to the same period last year. The increase in revenue during the quarter was driven by E&M revenues increasing 21% and T&D revenues increasing 15%. The growth was highlighted by our E&M commercial market, led by the data center sub-market, and momentum in our T&D utility end market, led by the storm, underground, and substation sub-markets.

Maximillian Marcy: Total EBITDA was $58 million during Q4, a modest increase from the same period last year that was driven by solid revenue growth and increased income from joint ventures, largely offset by incremental public company standup costs of $6.3 million during Q4. This resulted in Q4 EBITDA margins of 7.7%, down 150 basis points from last year. As for our full year 2024 results, net revenue was $2.85 billion on par with last year. E&M revenues softened 5%, while T&D revenues rose 14%. The E&M segment saw increased revenue growth in the back half of the year, particularly in the data center sub-market. The T&D segment continued its momentum throughout the year. The T&D utility end market was led by the transmission, distribution, and substation sub-markets.

Maximillian Marcy: Total EBITDA was $58 million during Q4, a modest increase from the same period last year that was driven by solid revenue growth and increased income from joint ventures, largely offset by incremental public company standup costs of $6.3 million during Q4. This resulted in Q4 EBITDA margins of 7.7%, down 150 basis points from last year. As for our full year 2024 results, net revenue was $2.85 billion on par with last year. E&M revenues softened 5%, while T&D revenues rose 14%. The E&M segment saw increased revenue growth in the back half of the year, particularly in the data center sub-market. The T&D segment continued its momentum throughout the year. The T&D utility end market was led by the transmission, distribution, and substation sub-markets.

Maximillian Marcy: The T&D transportation end market saw increases in traffic signalization and street lighting sub-market. Total EBITDA was $232 million in the 2024 fiscal year, up from $223 million last year. The increase in EBITDA was driven by increased income from joint ventures and solid project execution, partially offset by higher selling, general, and administrative expenses. EBITDA was also negatively impacted by $6.3 million of public company cost. This all resulted in EBITDA margin of 8.1%, up 30 basis points from last fiscal year. At December 31, total backlog was $2.8 billion, in line with the Q3 and up 38% from backlog of $2 billion at the end of last year.

Maximillian Marcy: The T&D transportation end market saw increases in traffic signalization and street lighting sub-market. Total EBITDA was $232 million in the 2024 fiscal year, up from $223 million last year. The increase in EBITDA was driven by increased income from joint ventures and solid project execution, partially offset by higher selling, general, and administrative expenses. EBITDA was also negatively impacted by $6.3 million of public company cost. This all resulted in EBITDA margin of 8.1%, up 30 basis points from last fiscal year. At December 31, total backlog was $2.8 billion, in line with the Q3 and up 38% from backlog of $2 billion at the end of last year.

Maximillian Marcy: Our backlog growth reflects strong momentum in our E&M business, combined with the impact of project timing, as we have seen some E&M projects get pushed out a bit. As a reminder, our backlog burn can move around from quarter to quarter based on the type and size of projects. Additionally, a portion of our revenues, including our MSA work, do not go through backlog. Given the current mix of our backlog, which includes some larger multi-year projects, our backlog conversion may be extended relative to our historical pattern over the coming quarters. Now, turning to our segment results.

Maximillian Marcy: Our backlog growth reflects strong momentum in our E&M business, combined with the impact of project timing, as we have seen some E&M projects get pushed out a bit. As a reminder, our backlog burn can move around from quarter to quarter based on the type and size of projects. Additionally, a portion of our revenues, including our MSA work, do not go through backlog. Given the current mix of our backlog, which includes some larger multi-year projects, our backlog conversion may be extended relative to our historical pattern over the coming quarters. Now, turning to our segment results.

Maximillian Marcy: Let's first look at E&M, where our Q4 revenue increased nearly 21% to about $550 million. The increase was driven by higher workloads in our commercial, institutional, and service in other end markets, particularly in the data center sub-market, partially offset by decreased workloads in the industrial and renewables end markets. Our E&M EBITDA was $42.7 million in the Q4, up from $36.4 million in the Q4 last year, which is an increase of 17%. This was the result of strong revenue growth and increased income from joint ventures, partially offset by increased selling, general, and administrative expenses and higher standalone insurance costs. As a result, our E&M EBITDA margin was 7.8%, down 20 basis points from last year.

Maximillian Marcy: Let's first look at E&M, where our Q4 revenue increased nearly 21% to about $550 million. The increase was driven by higher workloads in our commercial, institutional, and service in other end markets, particularly in the data center sub-market, partially offset by decreased workloads in the industrial and renewables end markets. Our E&M EBITDA was $42.7 million in the Q4, up from $36.4 million in the Q4 last year, which is an increase of 17%. This was the result of strong revenue growth and increased income from joint ventures, partially offset by increased selling, general, and administrative expenses and higher standalone insurance costs. As a result, our E&M EBITDA margin was 7.8%, down 20 basis points from last year.

Maximillian Marcy: Our Q4 T&D revenue was $213.3 million, up from $185.1 million last year, or an increase of 15%, driven by growth in our storm, underground, and substation submarkets within the utility end market, partially offset by timing of work in our distribution business. We also benefited from growth in our transportation end market due to higher workloads in our traffic signalization and street lighting services. T&D EBITDA was $30.6 million during Q4 2024, up from $27 million last year. Our T&D EBITDA margin was 14.3% during Q4, down 30 basis points from last year, primarily as a result of additional stand-up insurance costs. Now let's turn to our balance sheet liquidity and free cash flow.

Maximillian Marcy: Our Q4 T&D revenue was $213.3 million, up from $185.1 million last year, or an increase of 15%, driven by growth in our storm, underground, and substation submarkets within the utility end market, partially offset by timing of work in our distribution business. We also benefited from growth in our transportation end market due to higher workloads in our traffic signalization and street lighting services. T&D EBITDA was $30.6 million during Q4 2024, up from $27 million last year. Our T&D EBITDA margin was 14.3% during Q4, down 30 basis points from last year, primarily as a result of additional stand-up insurance costs. Now let's turn to our balance sheet liquidity and free cash flow.

Maximillian Marcy: As a reminder, in October 2024, we entered into a senior secured credit agreement with our bank group, consisting of a $300 million term loan A and a $225 million revolving credit facility. We drew down $40 million under the credit facility as of 31 October 2024 to fund projected working capital needs, which we fully repaid one month later in November 2024. As of 31 December 2024, we had $70 million of unrestricted cash, $300 million of gross debt, and $209 million available under the revolving credit facility, net of letters of credit. Net leverage, therefore, was approximately 1.0x. We generated free cash flow of $129 million during 2024, down from $152 million in 2023.

Maximillian Marcy: As a reminder, in October 2024, we entered into a senior secured credit agreement with our bank group, consisting of a $300 million term loan A and a $225 million revolving credit facility. We drew down $40 million under the credit facility as of 31 October 2024 to fund projected working capital needs, which we fully repaid one month later in November 2024. As of 31 December 2024, we had $70 million of unrestricted cash, $300 million of gross debt, and $209 million available under the revolving credit facility, net of letters of credit. Net leverage, therefore, was approximately 1.0x. We generated free cash flow of $129 million during 2024, down from $152 million in 2023.

Maximillian Marcy: Our full year CapEx was $48.3 million or approximately 1.7% of revenue versus CapEx of $35 million in 2023, or approximately 1.3% of revenue. The increase in CapEx during 2024 and the resulting decline in free cash flow reflects our strategy to increase investments in growth to support our organic growth strategy. Wrapping up with guidance. As Jeff said, we are providing 2025 guidance that calls for revenues in the range of $3 to 3.1 billion, EBITDA in the range of $210 to 225 million, with $65 to 70 million invested in capital expenditures. When looking at our revenue guidance, there are a couple of factors I'd like to highlight.

Maximillian Marcy: Our full year CapEx was $48.3 million or approximately 1.7% of revenue versus CapEx of $35 million in 2023, or approximately 1.3% of revenue. The increase in CapEx during 2024 and the resulting decline in free cash flow reflects our strategy to increase investments in growth to support our organic growth strategy. Wrapping up with guidance. As Jeff said, we are providing 2025 guidance that calls for revenues in the range of $3 to 3.1 billion, EBITDA in the range of $210 to 225 million, with $65 to 70 million invested in capital expenditures. When looking at our revenue guidance, there are a couple of factors I'd like to highlight.

Maximillian Marcy: First, as we have discussed, we are seeing a slightly longer backlog conversion cycle, given that we are often being brought into projects earlier and we are winning larger projects. We expect this will continue, which we view as a positive because it gives us increased visibility and is reflected in our guidance. Additionally, project timing is always difficult to predict because it often shifts, and we have continued to take a cautious approach in our modeling of project timing. As it relates to our EBITDA guidance, we continue to forecast dis-synergy costs of $28 million on a full year basis. As Jeff highlighted, our 2024 results benefited from strong project execution with positive project efficiencies on several jobs. While we of course strive for upside execution benefits every year, our 2025 guidance assumes more normal levels of project execution.

Maximillian Marcy: First, as we have discussed, we are seeing a slightly longer backlog conversion cycle, given that we are often being brought into projects earlier and we are winning larger projects. We expect this will continue, which we view as a positive because it gives us increased visibility and is reflected in our guidance. Additionally, project timing is always difficult to predict because it often shifts, and we have continued to take a cautious approach in our modeling of project timing. As it relates to our EBITDA guidance, we continue to forecast dis-synergy costs of $28 million on a full year basis. As Jeff highlighted, our 2024 results benefited from strong project execution with positive project efficiencies on several jobs. While we of course strive for upside execution benefits every year, our 2025 guidance assumes more normal levels of project execution.

Maximillian Marcy: Overall, we are very pleased by our Q4 and full year 2024 financial results. We continue to benefit from favorable market trends. We're executing at a high level, and our prudent financial management has put us in a strong financial position to execute on our strategic growth plan and remain on track to deliver on our long-term financial targets. That completes our prepared remarks. Operator, we are now ready for our question and answer portion of our call.

Maximillian Marcy: Overall, we are very pleased by our Q4 and full year 2024 financial results. We continue to benefit from favorable market trends. We're executing at a high level, and our prudent financial management has put us in a strong financial position to execute on our strategic growth plan and remain on track to deliver on our long-term financial targets. That completes our prepared remarks. Operator, we are now ready for our question and answer portion of our call.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Again, as a reminder, if you have dialed in and would like to ask a question, please press Star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press Star one again. We kindly ask everyone to limit themselves to one question. We will pause for a moment to compile the Q&A roster. Thank you. Your first question comes from the line of Brent Thielman with D.A. Davidson Companies. Please go ahead.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Again, as a reminder, if you have dialed in and would like to ask a question, please press Star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press Star one again. We kindly ask everyone to limit themselves to one question. We will pause for a moment to compile the Q&A roster. Thank you. Your first question comes from the line of Brent Thielman with D.A. Davidson Companies. Please go ahead.

Brent Thielman: Hey, thanks. Good morning, Jeff, Max. I guess just.

Brent Thielman: Hey, thanks. Good morning, Jeff, Max. I guess just.

Jeffrey Thiede: Hey, Brent.

Jeffrey Thiede: Hey, Brent.

Brent Thielman: Hey, morning. Just my question would be, maybe digging a little more into, you know, how you approach the revenue guidance for 2025. Are there areas of the business that you won't typically embed into that forecast? I guess just trying to

Brent Thielman: Hey, morning. Just my question would be, maybe digging a little more into, you know, how you approach the revenue guidance for 2025. Are there areas of the business that you won't typically embed into that forecast? I guess just trying to get a sense, Max, you talked about, you know, longer kind of backlog conversion and in the past. Are there any figures you can provide around that just in terms of your mix of larger, longer duration projects today maybe versus a few years ago? Thank you.

Brent Thielman: Get a sense, Max, you talked about, you know, longer kind of backlog conversion and in the past. Are there any figures you can provide around that just in terms of your mix of larger, longer duration projects today maybe versus a few years ago? Thank you.

Jeffrey Thiede: Yeah, Brent, this is Jeff. I'll start with the answer and then turn it over to Max for additional comments. As we've built our company up and trained our people and cross-trained our people, we've been able to build large, complex projects. We've got more projects that are large. With those large projects that we get involved with the owner and the general contractor early on our E&M side, you know, we are able to plan, procure materials, and because those jobs are so complex, they are taking longer to build because they're big. We like that area of the market, especially in the data centers, hospitality, or even industrial.

Jeffrey Thiede: Yeah, Brent, this is Jeff. I'll start with the answer and then turn it over to Max for additional comments. As we've built our company up and trained our people and cross-trained our people, we've been able to build large, complex projects. We've got more projects that are large. With those large projects that we get involved with the owner and the general contractor early on our E&M side, you know, we are able to plan, procure materials, and because those jobs are so complex, they are taking longer to build because they're big. We like that area of the market, especially in the data centers, hospitality, or even industrial.

Jeffrey Thiede: We'll continue to be able to look where our resources match the needs of our customers and build upon our success with large, complex projects with a very qualified workforce.

Jeffrey Thiede: We'll continue to be able to look where our resources match the needs of our customers and build upon our success with large, complex projects with a very qualified workforce.

Maximillian Marcy: Yeah. You know, Brent, in terms of, you know, what the numbers are, I mean, I don't think we're gonna give any numbers today and what that looks like from a burn percentage. You know, it can be, you know, upwards of 10 points different from what it has been in the past. You know, I just think, you know, as these jobs are big and, you know, a lot of them are getting started now, they just take longer to get completed. I think that's as much as we can comment on the burn.

Maximillian Marcy: Yeah. You know, Brent, in terms of, you know, what the numbers are, I mean, I don't think we're gonna give any numbers today and what that looks like from a burn percentage. You know, it can be, you know, upwards of 10 points different from what it has been in the past. You know, I just think, you know, as these jobs are big and, you know, a lot of them are getting started now, they just take longer to get completed. I think that's as much as we can comment on the burn.

Brent Thielman: Got it. Okay, I'll give back in queue. Thanks, guys.

Brent Thielman: Got it. Okay, I'll give back in queue. Thanks, guys.

Jeffrey Thiede: Thanks, Brent.

Jeffrey Thiede: Thanks, Brent.

Operator: Your next question comes from the line of Brian Brophy with Stifel. Please go ahead.

Operator: Your next question comes from the line of Brian Brophy with Stifel. Please go ahead.

Brian Brophy: Yeah, thanks. Good morning, everybody. Curious, the latest you're seeing from a project pipeline perspective here and how you're thinking about backlog trends, given what you're seeing on the pipeline side.

Brian Brophy [Director: Yeah, thanks. Good morning, everybody. Curious, the latest you're seeing from a project pipeline perspective here and how you're thinking about backlog trends, given what you're seeing on the pipeline side.

Jeffrey Thiede: Yeah. We still see strong demand for our services in the commercial area, which includes data centers, which is the largest part of our backlog. Also in hospitality, which is within commercial market. Steady growth there. I'd say we're looking at similar workloads in 2025 as we saw in 2024. If you take a look at our industrial market and also our institutional markets, we're seeing some more water projects. We're seeing manufacturing of battery plants and you know that complements our T&D work, which of course high demand for transmission and distribution and substation work, things that we do very, very well. Power, gas, communications, and also undergrounding of utilities is a strong part of our business. It lines up with our capabilities.

Jeffrey Thiede: Yeah. We still see strong demand for our services in the commercial area, which includes data centers, which is the largest part of our backlog. Also in hospitality, which is within commercial market. Steady growth there. I'd say we're looking at similar workloads in 2025 as we saw in 2024. If you take a look at our industrial market and also our institutional markets, we're seeing some more water projects. We're seeing manufacturing of battery plants and you know that complements our T&D work, which of course high demand for transmission and distribution and substation work, things that we do very, very well. Power, gas, communications, and also undergrounding of utilities is a strong part of our business. It lines up with our capabilities.

Jeffrey Thiede: Based upon what we're hearing from our customers and what we're reading as far as market trends, we're very much aligned for doing that work and growing our business.

Jeffrey Thiede: Based upon what we're hearing from our customers and what we're reading as far as market trends, we're very much aligned for doing that work and growing our business.

Brian Brophy: That's helpful. I guess on the backlog, obviously, there was a little bit of slowdown sequentially. New awards slowed as well. Any comment on some of the drivers here? Is this a reflection of any sort of changing demand environment at this point?

Brian Brophy [Director: That's helpful. I guess on the backlog, obviously, there was a little bit of slowdown sequentially. New awards slowed as well. Any comment on some of the drivers here? Is this a reflection of any sort of changing demand environment at this point?

Jeffrey Thiede: I think what you see, if you're talking about the Q3 backlog versus Q4, that's really timing. We got some of those projects secured in the Q3. It's always better to get those commitments earlier than later. I think it's mostly timing. If you look at, you know, year-over-year from the end of last year to the prior year, it's up 38%. You know, we do see momentum and demand for our services. As far as mix, it's fairly consistent with what we had over prior recent periods.

Jeffrey Thiede: I think what you see, if you're talking about the Q3 backlog versus Q4, that's really timing. We got some of those projects secured in the Q3. It's always better to get those commitments earlier than later. I think it's mostly timing. If you look at, you know, year-over-year from the end of last year to the prior year, it's up 38%. You know, we do see momentum and demand for our services. As far as mix, it's fairly consistent with what we had over prior recent periods.

Brian Brophy: Okay. Then one, I guess, on corporate expenses, they were a little bit higher than we were expecting this quarter, Q4, even including the $6 million of dissynergies that you touched on. Is there anything that's more of one time in there? I guess how should we be thinking about corporate expenses going forward?

Brian Brophy [Director: Okay. Then one, I guess, on corporate expenses, they were a little bit higher than we were expecting this quarter, Q4, even including the $6 million of dissynergies that you touched on. Is there anything that's more of one time in there? I guess how should we be thinking about corporate expenses going forward?

Maximillian Marcy: Yeah. This is Max. Nothing really one time. I mean, we do have some timing of things like our audit fee for the year had to all be paid in the last, you know, two months of the year. Nothing really one time. I mean, right, we're just kind of building our corporate teams here as we're standing ourselves up. I mean, we still feel really good about that $28 million number for the full year. Other than the audit fee, nothing really one time. Just some timing maybe of some, you know, contracts we sign, as a new public company. I think all that would be included in our $28 million number for a full year basis.

Maximillian Marcy: Yeah. This is Max. Nothing really one time. I mean, we do have some timing of things like our audit fee for the year had to all be paid in the last, you know, two months of the year. Nothing really one time. I mean, right, we're just kind of building our corporate teams here as we're standing ourselves up. I mean, we still feel really good about that $28 million number for the full year. Other than the audit fee, nothing really one time. Just some timing maybe of some, you know, contracts we sign, as a new public company. I think all that would be included in our $28 million number for a full year basis.

Brian Brophy: Okay. That's helpful.

Brian Brophy [Director: Okay. That's helpful.

Maximillian Marcy: Basically saying, yeah, just to say you can't really take the 6.3 divided by two and extrapolate that, right? So.

Maximillian Marcy: Basically saying, yeah, just to say you can't really take the 6.3 divided by two and extrapolate that, right? So.

Brian Brophy: Okay. I guess just one more for me. Excluding dissynergies, it appears that the midpoint of the EBITDA margin guide is down about 30 basis points from 2024. I guess, can you talk about what is driving that?

Brian Brophy [Director: Okay. I guess just one more for me. Excluding dissynergies, it appears that the midpoint of the EBITDA margin guide is down about 30 basis points from 2024. I guess, can you talk about what is driving that?

Jeffrey Thiede: Yeah. I mean, we took a very close look at backlog, timing of our backlog and also taking a look at 2025 versus 2024. We are looking to continue to build upon our year that we had in 2024, and took a very thorough look at what those numbers look like for us and landed where we did on our guidance.

Jeffrey Thiede: Yeah. I mean, we took a very close look at backlog, timing of our backlog and also taking a look at 2025 versus 2024. We are looking to continue to build upon our year that we had in 2024, and took a very thorough look at what those numbers look like for us and landed where we did on our guidance.

Maximillian Marcy: Yeah. I think we, you know, Jeff and I both touched on it during our portions of the script, right? I think we had really good execution in 2024 and in the Q4 as well. I think, you know, we're assuming more normal kind of execution based on where we're holding our backlog on the 2025 fiscal year. Your numbers are correct.

Maximillian Marcy: Yeah. I think we, you know, Jeff and I both touched on it during our portions of the script, right? I think we had really good execution in 2024 and in the Q4 as well. I think, you know, we're assuming more normal kind of execution based on where we're holding our backlog on the 2025 fiscal year. Your numbers are correct.

Brian Brophy: Okay. Appreciate it. Thank you. I'll pass it on.

Brian Brophy [Director: Okay. Appreciate it. Thank you. I'll pass it on.

Maximillian Marcy: Thank you.

Maximillian Marcy: Thank you.

Jeffrey Thiede: Thank you.

Jeffrey Thiede: Thank you.

Operator: Your next question comes from the line of Ian Zaffino with Oppenheimer. Please go ahead.

Operator: Your next question comes from the line of Ian Zaffino with Oppenheimer. Please go ahead.

Ian Zaffino: Hi, great. Thank you. As far as the backlog taking longer, are we still kind of at the 75% delivered over the next 12 months? What would be your assumptions for kind of the non-backlog business of like the book and burn, the MSAs, you know, year-over-year? Thanks.

Ian Zaffino: Hi, great. Thank you. As far as the backlog taking longer, are we still kind of at the 75% delivered over the next 12 months? What would be your assumptions for kind of the non-backlog business of like the book and burn, the MSAs, you know, year-over-year? Thanks.

Jeffrey Thiede: Yeah. As I mentioned earlier, you know, our average project size is getting slightly larger, and our ability to handle those projects and get on board early with our customers is really adjusting or changing slightly the backlog burn. As those projects are larger, more complex, and longer, that has changed in the mix of all of our work, which is fairly diversified. As far as the MSA work, the non-backlog work, still very strong for our business. We've got dozens of MSAs, and you take a look at our work that we do for our utility customers and the forecast and our ability to be able to continue building projects for them, especially with the customers that we have relationships with for, you know, 20 and 30 years.

Jeffrey Thiede: Yeah. As I mentioned earlier, you know, our average project size is getting slightly larger, and our ability to handle those projects and get on board early with our customers is really adjusting or changing slightly the backlog burn. As those projects are larger, more complex, and longer, that has changed in the mix of all of our work, which is fairly diversified. As far as the MSA work, the non-backlog work, still very strong for our business. We've got dozens of MSAs, and you take a look at our work that we do for our utility customers and the forecast and our ability to be able to continue building projects for them, especially with the customers that we have relationships with for, you know, 20 and 30 years.

Jeffrey Thiede: We'll continue to be able to leverage our performance through our execution and strengthen those relationships and build that backlog and continue to diversify our business.

Jeffrey Thiede: We'll continue to be able to leverage our performance through our execution and strengthen those relationships and build that backlog and continue to diversify our business.

Ian Zaffino: Okay. 'Cause I guess the way I'm looking at it is if I'm using like the 75%, you know, and adding $1 billion or so for, you know, the non-backlog, it just. I'm getting higher than where you guys are. Maybe we shift to M&A. You know, what are you thinking on the M&A side? You know, how large? What do you need? Is it, you know, people? Is it trucks? Is it tools? You know, what is it? As you invest on the prefab side, you know, when do we expect to see sort of the benefits of the investment in the prefab side? Thanks.

Ian Zaffino: Okay. 'Cause I guess the way I'm looking at it is if I'm using like the 75%, you know, and adding $1 billion or so for, you know, the non-backlog, it just. I'm getting higher than where you guys are. Maybe we shift to M&A. You know, what are you thinking on the M&A side? You know, how large? What do you need? Is it, you know, people? Is it trucks? Is it tools? You know, what is it? As you invest on the prefab side, you know, when do we expect to see sort of the benefits of the investment in the prefab side? Thanks.

Jeffrey Thiede: Okay. Great questions. I'll start, and I have Max add to my comments. On the M&A side, we're really excited about that. I mean, we've got the financial capabilities to have a disciplined M&A approach. We're looking for companies that have high integrity and get their work not price-based and really based upon overall value and relationships. Looking for companies that have strong leadership and a very strong culture of safety. We're also looking for the geographic expansion in both our T&D and E&M segments. M&A is something that we're very excited about, and we've got a strategy and approach to that. As far as prefab, we have expanded our prefab facilities, and we are leveraging our prefab.

Jeffrey Thiede: Okay. Great questions. I'll start, and I have Max add to my comments. On the M&A side, we're really excited about that. I mean, we've got the financial capabilities to have a disciplined M&A approach. We're looking for companies that have high integrity and get their work not price-based and really based upon overall value and relationships. Looking for companies that have strong leadership and a very strong culture of safety. We're also looking for the geographic expansion in both our T&D and E&M segments. M&A is something that we're very excited about, and we've got a strategy and approach to that. As far as prefab, we have expanded our prefab facilities, and we are leveraging our prefab.

Jeffrey Thiede: Our customers care about what we do in prefabrication because it helps reduce congestion on the projects. That's good for us. That's good for the other subtrades on the project. We'll continue to grow our prefab capabilities and to provide that capital support. That is part of our plan in 2025 and beyond. Max.

Jeffrey Thiede: Our customers care about what we do in prefabrication because it helps reduce congestion on the projects. That's good for us. That's good for the other subtrades on the project. We'll continue to grow our prefab capabilities and to provide that capital support. That is part of our plan in 2025 and beyond. Max.

Maximillian Marcy: Yeah. From a size, you know, I think is your question, part of your question there, and I mean, the reality is we're at 1x net leverage today. I think we've been pretty public about where our leverage targets are. You know, a turn of EBITDA. That still gets us, keeps us within those long-term targets, right? You know, when you look at the cash flow that we spit out this year, over $100 million of free cash flow, you can kind of see, you know, the magnitude of what we could accomplish and still be within our long-term goals. From the CapEx side, you know, again, we wanna continue to invest in, as we grow our fleet and vehicles, bucket trucks, dirt diggers, right?

Maximillian Marcy: Yeah. From a size, you know, I think is your question, part of your question there, and I mean, the reality is we're at 1x net leverage today. I think we've been pretty public about where our leverage targets are. You know, a turn of EBITDA. That still gets us, keeps us within those long-term targets, right? You know, when you look at the cash flow that we spit out this year, over $100 million of free cash flow, you can kind of see, you know, the magnitude of what we could accomplish and still be within our long-term goals. From the CapEx side, you know, again, we wanna continue to invest in, as we grow our fleet and vehicles, bucket trucks, dirt diggers, right?

Maximillian Marcy: I mean, all these things help us be more efficient and effective for the long term. From a prefab perspective, you know, when is that gonna really show in the results? I mean, this is a multi-year thing, right? The goal is to continue to build more and more prefab facilities closer to some of these larger projects. As those get completed, and we're very efficient, and execute well on those projects with those prefab facilities, they start to show up in the results. It's more of a multi-year opportunity for us. Then it should continue to expand as we continue to add those.

Maximillian Marcy: I mean, all these things help us be more efficient and effective for the long term. From a prefab perspective, you know, when is that gonna really show in the results? I mean, this is a multi-year thing, right? The goal is to continue to build more and more prefab facilities closer to some of these larger projects. As those get completed, and we're very efficient, and execute well on those projects with those prefab facilities, they start to show up in the results. It's more of a multi-year opportunity for us. Then it should continue to expand as we continue to add those.

Ian Zaffino: Okay. Thank you very much.

Ian Zaffino: Okay. Thank you very much.

Maximillian Marcy: Thanks, Ian.

Maximillian Marcy: Thanks, Ian.

Operator: Your next question comes from the line of Chris Senyek with Wolfe Research. Please go ahead.

Operator: Your next question comes from the line of Chris Senyek with Wolfe Research. Please go ahead.

Chris Senyek: Yeah. Hi, guys. Good morning.

Chris Senyek: Yeah. Hi, guys. Good morning.

Maximillian Marcy: Morning.

Maximillian Marcy: Morning.

Chris Senyek: Quick question, Max, on the dis-synergies cost of $28 million and kinda using that as a run rate. Is that something that we should just expect to continue as we look at modeling some of the out years? Or do you expect there to be some type of synergies that develop over time where that number might fall, or and maybe even if there's duplicate costs right now with TSAs going on at the same time that you're trying to build stuff out yourself, how should we be thinking about that?

Chris Senyek: Quick question, Max, on the dis-synergies cost of $28 million and kinda using that as a run rate. Is that something that we should just expect to continue as we look at modeling some of the out years? Or do you expect there to be some type of synergies that develop over time where that number might fall, or and maybe even if there's duplicate costs right now with TSAs going on at the same time that you're trying to build stuff out yourself, how should we be thinking about that?

Maximillian Marcy: Yeah. Fair question. You know, I think what we're really looking at is that's more of kind of our standalone cost that stays around. You know, again, I don't know what happens with insurance markets, as we've talked about. Standalone insurance is probably the biggest component of all that. So I'm not sure what happens with insurance costs. Hopefully, we continue to do better, get ourselves as a player in the market, and hope to do better on that. You know, given where we're at in the world and what's transpired and even in the last several months, I don't know if insurance is gonna be going down anytime in the future. In terms of the rest of the costs, the reality is we're kind of building this corporate team, right?

Maximillian Marcy: Yeah. Fair question. You know, I think what we're really looking at is that's more of kind of our standalone cost that stays around. You know, again, I don't know what happens with insurance markets, as we've talked about. Standalone insurance is probably the biggest component of all that. So I'm not sure what happens with insurance costs. Hopefully, we continue to do better, get ourselves as a player in the market, and hope to do better on that. You know, given where we're at in the world and what's transpired and even in the last several months, I don't know if insurance is gonna be going down anytime in the future. In terms of the rest of the costs, the reality is we're kind of building this corporate team, right?

Jeffrey Thiede: Until we can, you know, make sure we have the mass and the right people in the right places, I don't think we're looking at cutting some of those costs as we go forward. You specifically talked about the service agreements, TSA, right? I mean, I think we actually have a pretty well plan, whereas the TSA tails off, we're adding people full time. I don't think there's a big opportunity for savings there. I mean, yes, the reality is we wanna do the most with the available labor and the available people. The reality is, you know, we wanna make sure we're servicing, supporting, and growing.

Jeffrey Thiede: Until we can, you know, make sure we have the mass and the right people in the right places, I don't think we're looking at cutting some of those costs as we go forward. You specifically talked about the service agreements, TSA, right? I mean, I think we actually have a pretty well plan, whereas the TSA tails off, we're adding people full time. I don't think there's a big opportunity for savings there. I mean, yes, the reality is we wanna do the most with the available labor and the available people. The reality is, you know, we wanna make sure we're servicing, supporting, and growing.

Jeffrey Thiede: You know, as we grow and become a larger and larger company, you might have to add another incremental corporate position three, four years down the road, right? I would model it as that is kind of in there as a $28 million run rate. Then as we get bigger, that should become a smaller and smaller percentage of our revenue.

Jeffrey Thiede: You know, as we grow and become a larger and larger company, you might have to add another incremental corporate position three, four years down the road, right? I would model it as that is kind of in there as a $28 million run rate. Then as we get bigger, that should become a smaller and smaller percentage of our revenue.

Chris Senyek: Okay, great. Thank you.

Chris Senyek: Okay, great. Thank you.

Jeffrey Thiede: Thanks, Chris.

Jeffrey Thiede: Thanks, Chris.

Operator: Your next question comes from the line of Chris Ellinghaus with Siebert Williams Shank. Please go ahead.

Operator: Your next question comes from the line of Chris Ellinghaus with Siebert Williams Shank. Please go ahead.

Chris Ellinghaus (Siebert W: Hey, guys. How are you?

Chris Ellinghaus (Siebert W: Hey, guys. How are you?

Jeffrey Thiede: Hey, Chris. Doing fine.

Jeffrey Thiede: Hey, Chris. Doing fine.

Chris Ellinghaus (Siebert W: Jeff, you did a good job of sort of walking through the new administration. I wanted to get some thoughts. I would agree it seems like if anything, the data center CapEx has really just ballooned. On the downside, you know, what are your thoughts of areas where you might have some concerns, like maybe renewables or battery storage or something along those lines? Have you got any thoughts there?

Chris Ellinghaus (Siebert W: Jeff, you did a good job of sort of walking through the new administration. I wanted to get some thoughts. I would agree it seems like if anything, the data center CapEx has really just ballooned. On the downside, you know, what are your thoughts of areas where you might have some concerns, like maybe renewables or battery storage or something along those lines? Have you got any thoughts there?

Jeffrey Thiede: We're paying very close attention to that and, especially with our customers, listening to what their plans are. I think it's early since the election and to see where those will play out. Our renewables is a small part of our business, but it's actually up this past year. In that diversification strategy that we have for our business, you know, we're going to be able to pivot and capture markets that are increasing and also redeploy our cross-trained people from markets that have maybe cooled off. We have some concern over tariffs, but we're watching that closely.

Jeffrey Thiede: We're paying very close attention to that and, especially with our customers, listening to what their plans are. I think it's early since the election and to see where those will play out. Our renewables is a small part of our business, but it's actually up this past year. In that diversification strategy that we have for our business, you know, we're going to be able to pivot and capture markets that are increasing and also redeploy our cross-trained people from markets that have maybe cooled off. We have some concern over tariffs, but we're watching that closely.

Jeffrey Thiede: It looks a little bit like what COVID brought to us, and we mitigated our risk and our customers' risk by being very close to our suppliers and spending more time evaluating procurement, providing alternative products and solutions to be able to, you know, stay on schedule. We actually in COVID year 2020 had a record year. We'll continue to be anticipatory, mitigate the risks, and communicate with our customers on the T&D and E&M side to avoid any sort of impacts that we have to our business and to our customers' business.

Jeffrey Thiede: It looks a little bit like what COVID brought to us, and we mitigated our risk and our customers' risk by being very close to our suppliers and spending more time evaluating procurement, providing alternative products and solutions to be able to, you know, stay on schedule. We actually in COVID year 2020 had a record year. We'll continue to be anticipatory, mitigate the risks, and communicate with our customers on the T&D and E&M side to avoid any sort of impacts that we have to our business and to our customers' business.

Chris Ellinghaus (Siebert W: Okay. You touched on this a little bit, but I'm kind of curious on a couple levels. We just had the big wildfire disaster in California. You know, are you seeing geographically broader undergrounding, I don't know what the right word is, momentum from some of your T&D customers? Also, you know, some of the data centers are fairly remote. Are you seeing undergrounding becoming a feature of the data center design for their interconnections?

Chris Ellinghaus (Siebert W: Okay. You touched on this a little bit, but I'm kind of curious on a couple levels. We just had the big wildfire disaster in California. You know, are you seeing geographically broader undergrounding, I don't know what the right word is, momentum from some of your T&D customers? Also, you know, some of the data centers are fairly remote. Are you seeing undergrounding becoming a feature of the data center design for their interconnections?

Jeffrey Thiede: Yeah. Let's talk about the California wildfires first. We were honored to be able to answer the call from our utility customers and provide restoration and repair of services. We've got businesses in Southern California. We do primarily underground work, and we deployed many crews over to help those in need. Undergrounding has been a big part of our business on the T&D side. We've been doing it for decades. We do see a continued trend for more undergrounding work from our customers. As far as the data center side, haven't really seen much on the undergrounding changes from what is designed as far as getting services over to primarily electric to our customers.

Jeffrey Thiede: Yeah. Let's talk about the California wildfires first. We were honored to be able to answer the call from our utility customers and provide restoration and repair of services. We've got businesses in Southern California. We do primarily underground work, and we deployed many crews over to help those in need. Undergrounding has been a big part of our business on the T&D side. We've been doing it for decades. We do see a continued trend for more undergrounding work from our customers. As far as the data center side, haven't really seen much on the undergrounding changes from what is designed as far as getting services over to primarily electric to our customers.

Jeffrey Thiede: Don't know about any changes on the data center side, but certainly with the risk there, I believe our customers are looking at that as a option. There's a cost element to it, Chris, as you know, and I think, you know, we'll be involved with providing those constructability reviews as we get on board early with these projects and look at best methods and best opportunities to be able to provide the customers what they need.

Jeffrey Thiede: Don't know about any changes on the data center side, but certainly with the risk there, I believe our customers are looking at that as a option. There's a cost element to it, Chris, as you know, and I think, you know, we'll be involved with providing those constructability reviews as we get on board early with these projects and look at best methods and best opportunities to be able to provide the customers what they need.

Chris Ellinghaus (Siebert W: Okay. Lastly, you sort of touched on this very briefly about storm restoration work in Q4. Obviously, there was some California work recently, but it was a pretty stormy Q4. Can you give us any kind of color on what storm restoration work in Q4 looked like year-over-year, or, you know, was it a particularly high margin quarter for you?

Chris Ellinghaus (Siebert W: Okay. Lastly, you sort of touched on this very briefly about storm restoration work in Q4. Obviously, there was some California work recently, but it was a pretty stormy Q4. Can you give us any kind of color on what storm restoration work in Q4 looked like year-over-year, or, you know, was it a particularly high margin quarter for you?

Jeffrey Thiede: Yeah. Typically, we don't give the detail on our storm work. Again, we're available to go do the recovery work and storm work. California I mentioned earlier, but also some of the other related weather work. It's important for our business. It's more important that we're able to help those in need to be able to restore, repair, and get them back on their feet. Don't go to that level of detail. We do that work, and we don't necessarily plan for that because we can't predict the nature and the weather. The storm work is something that we're honored to do to help and answer the call of our utility customers.

Jeffrey Thiede: Yeah. Typically, we don't give the detail on our storm work. Again, we're available to go do the recovery work and storm work. California I mentioned earlier, but also some of the other related weather work. It's important for our business. It's more important that we're able to help those in need to be able to restore, repair, and get them back on their feet. Don't go to that level of detail. We do that work, and we don't necessarily plan for that because we can't predict the nature and the weather. The storm work is something that we're honored to do to help and answer the call of our utility customers.

Chris Ellinghaus (Siebert W: I get it. It's difficult to sort of plan for storm and restoration work in general. You know, given the outlook for wildfire proclivity, let's say, and storm activity sort of expecting to gain momentum over time, is that an area where you'd like to have more resources available?

Chris Ellinghaus (Siebert W: I get it. It's difficult to sort of plan for storm and restoration work in general. You know, given the outlook for wildfire proclivity, let's say, and storm activity sort of expecting to gain momentum over time, is that an area where you'd like to have more resources available?

Jeffrey Thiede: Yeah. We definitely want to be able to respond to our customers and to be able to help out and get those services back in place. We've got the capital necessary to be able to build up our equipment and our people. Yes, we wanna be able to help those in need, and we look for the readiness for our crews and our equipment to be able to do any of that work going forward. The most recent storm work or storm that we had in the east, we didn't have a lot of storm work associated with that. Just typical type of weather conditions, type of snow, drier snow versus ice that could tear down lines and poles.

Jeffrey Thiede: Yeah. We definitely want to be able to respond to our customers and to be able to help out and get those services back in place. We've got the capital necessary to be able to build up our equipment and our people. Yes, we wanna be able to help those in need, and we look for the readiness for our crews and our equipment to be able to do any of that work going forward. The most recent storm work or storm that we had in the east, we didn't have a lot of storm work associated with that. Just typical type of weather conditions, type of snow, drier snow versus ice that could tear down lines and poles.

Jeffrey Thiede: We've got a good plan to be able to deploy quickly. When you think about margin too, I mean, the margin, we're taking crews away from our fixed price at MSA work. There could be some trade-off there. I just wanna emphasize that we're pleased to go do the work. It takes us off of our plan of doing our normal work, and then we get back to our regular work. You know, we're back to our core of what we do.

Jeffrey Thiede: We've got a good plan to be able to deploy quickly. When you think about margin too, I mean, the margin, we're taking crews away from our fixed price at MSA work. There could be some trade-off there. I just wanna emphasize that we're pleased to go do the work. It takes us off of our plan of doing our normal work, and then we get back to our regular work. You know, we're back to our core of what we do.

Chris Ellinghaus (Siebert W: Gotcha. Thanks so much. Appreciate the details, Jeff. Thanks, Chris.

Chris Ellinghaus (Siebert W: Gotcha. Thanks so much. Appreciate the details, Jeff. Thanks, Chris.

Jeffrey Thiede: Thank you, Chris.

Jeffrey Thiede: Thank you, Chris.

Operator: Your next question comes from the line of Brent Thielman with the D.A. Davidson Companies. Please go ahead.

Operator: Your next question comes from the line of Brent Thielman with the D.A. Davidson Companies. Please go ahead.

Brent Thielman: Hey, thanks, guys. Hey, Jeff. I mean, if I look at the business over the last number of years, you've had a positive book-to-bill or at least 1 times or greater. As you think about everything that's happening in your end markets and the pipeline over the course of 2025, is there any reason to think, you know, your book-to-bill would be less than 1 times or your bookings can't grow this year again with all the activity in the space?

Brent Thielman: Hey, thanks, guys. Hey, Jeff. I mean, if I look at the business over the last number of years, you've had a positive book-to-bill or at least 1 times or greater. As you think about everything that's happening in your end markets and the pipeline over the course of 2025, is there any reason to think, you know, your book-to-bill would be less than 1 times or your bookings can't grow this year again with all the activity in the space?

Jeffrey Thiede: Yeah. I think there's a lot of optimism on our side as far as the work that we have in our backlog, our ability to be able to execute that work, and also the non-backlog work. A lot of excitement in the economy. We see some enthusiasm and optimism on our side, and look forward to be able to beat those expectations.

Jeffrey Thiede: Yeah. I think there's a lot of optimism on our side as far as the work that we have in our backlog, our ability to be able to execute that work, and also the non-backlog work. A lot of excitement in the economy. We see some enthusiasm and optimism on our side, and look forward to be able to beat those expectations.

Brent Thielman: Yeah. Maybe just one more from a seasonality perspective. Is there something different to the cadence in revenue you're expecting this year, maybe versus just looking at it in the past? 'Cause you've talked about these large projects and the timing of those. I don't know if, you know, this is a more back-end loaded than usual type of year. If you could just comment on that'd be great.

Brent Thielman: Yeah. Maybe just one more from a seasonality perspective. Is there something different to the cadence in revenue you're expecting this year, maybe versus just looking at it in the past? 'Cause you've talked about these large projects and the timing of those. I don't know if, you know, this is a more back-end loaded than usual type of year. If you could just comment on that'd be great.

Jeffrey Thiede: Yeah. With most of our work in our E&M segment, we are not as affected by weather as we could be in our T&D. We work year-round with both segments and have had some impact with weather. Usually not that impacted overall by weather, especially when those projects are planned in those particular regions in accordance with weather patterns.

Jeffrey Thiede: Yeah. With most of our work in our E&M segment, we are not as affected by weather as we could be in our T&D. We work year-round with both segments and have had some impact with weather. Usually not that impacted overall by weather, especially when those projects are planned in those particular regions in accordance with weather patterns.

Brent Thielman: Thanks, guys.

Brent Thielman: Thanks, guys.

Operator: As there are no further questions at this time, that concludes today's Q&A session. I would now like to turn the call over to Jeff Thiede for closing remarks.

Operator: As there are no further questions at this time, that concludes today's Q&A session. I would now like to turn the call over to Jeff Thiede for closing remarks.

Jeffrey Thiede: All right. Thank you, operator, and thank you all again for joining us today. We are very excited about the opportunities ahead for Everus. We are scaled for success, and we're built for growth, and we are confident that we are well-positioned to create long-term value as a standalone public company. We've enjoyed the opportunity to meet with many of you over the last few months since our spin, and we look forward to continuing the conversation in the coming quarters. Thank you for your time and interest in Everus, and this concludes today's call.

Jeffrey Thiede: All right. Thank you, operator, and thank you all again for joining us today. We are very excited about the opportunities ahead for Everus. We are scaled for success, and we're built for growth, and we are confident that we are well-positioned to create long-term value as a standalone public company. We've enjoyed the opportunity to meet with many of you over the last few months since our spin, and we look forward to continuing the conversation in the coming quarters. Thank you for your time and interest in Everus, and this concludes today's call.

Operator: That concludes today's meeting. Thank you for your participation. You may now disconnect.

Operator: That concludes today's meeting. Thank you for your participation. You may now disconnect.