Q1 2025 Everus Construction Group Inc Earnings Call

May 14, 2025

Yeah.

Ian: Thank you for standing by. My name is Ian and I will be your conference operator.

Ian: Thank you for standing by my name is Ian and I'll be your conference operator today.

Ian: At this time, I would like to welcome everyone to the Everest Q1 2025 earnings call. All lines have been placed on mute to prevent any background noise.

Ian: At this time I would like to welcome everyone to the Everest Q1 2025 earnings call.

Ian: All lines have been placed on mute to prevent any background noise.

Ian: 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, again, press star one. Thank you.

Ian: 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 again press Star one.

Paul Bartolai: I will now turn the call over to Paul Bartolai, Head of Investor Relations. Thank you.

Paul: I will now turn the call over to Paul <unk> head of Investor Relations. Please go ahead.

Paul Bartolai: Thank you. Good morning, everyone, welcome to Everus Construction Group's Q1 2025 Results Conference Call. Leading the call today are CEO, Jeff Thiede, and CFO, Max Marcy. We issued a news release yesterday detailing our Q1 2025 operational and financial results. This release, together with the accompanying presentation materials, are 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.

Speaker Change: Thank you good morning, everyone and welcome to Everest construction groups first quarter 2025 results conference call.

Jeff Seed: Good morning, everyone, and welcome to Everest Construction Group's first quarter 2025 results conference call.

Jeff Seed: Leading the call today are CEO Jeff Seed and CFO Max Marcy. We issued a news release yesterday detailing our first quarter 2025 operational and financial results. This release together with the accompanying presentation materials are publicly available on our website at investors.Everus.com.

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

Jeff: We issued a news release yesterday detailing our first quarter 2025 operational and financial results.

Jeff: This release together with the accompanying presentation materials.

Jeff: Available on our website at investors that have risk dot com.

Jeff Seed: 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 Factor section of our latest filings with the SEC. 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.

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 company's 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 of our latest filings with the SEC.

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'll 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.

Jeff: 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.

Jeff Seed: Today's call will begin with prepared marks from Jeff who will provide a review of our recent business performance, followed by a financial update for At the conclusion of these prepared remarks, we will open the line for your questions.

Jeff: Today's call will begin with prepared remarks from Jeff will provide a review of our recent business performance 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'll turn the call over to Jeff.

Jim: With that, I'll turn the call over to Jim. Thank you, Paul. And good morning to everyone joining us on the call today.

Jeff Thiede: Thank you, Paul. 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 Q1 2025 results. During my prepared remarks, I will provide a brief overview of our strong Q1 results, give an update on our end market trends, and highlight some of our key accomplishments against our strategic priorities. Beginning with slide four, we are off to a strong start in 2025 with our Q1 results. Our performance reflects the drive and determination of our team, the ongoing favorable trends in key markets, and our continued focus on our 4EVER Strategy. Our Q1 revenue increased 32%, driven by continued strength in our Electrical & Mechanical segment.

Paul: You, Paul and good morning to everyone joining us on the call today.

Jeff Seed: We are very excited to be here with you all today as we report our first quarter 2025 results. During my prepared remarks, I will provide a brief overview of our strong first quarter results, give an update on our end market trends, and highlight some of our key accomplishments against our strategic priorities. Beginning with slide four, we are off to a strong start in 2025. with our first quarter results. Our performance reflects the drive and determination of our team, the ongoing favorable trends in key markets, and our continued focus on our forever strategy. Our first quarter revenue increased 32% driven by continued strength in our electrical and mechanical segment.

Paul: We are very excited to be here with you all today as we report our first quarter 2025 results.

Paul: During my prepared remarks, I will provide a brief overview of our strong first quarter results given update on our end market trends and highlight some of our key accomplishments against our strategic priorities.

Paul: Beginning with slide four we are off to a strong start in 2025.

Paul: With our first quarter results.

Paul: Our performance reflects the drive and determination of our team.

Paul: Ongoing favorable trends in key markets and our continued focus on our four of our strategy.

Paul: Our first quarter revenue increased 32% driven by continued strength in our electrical and mechanical segments.

Jeff Seed: The diversification of our business was on full display as we generated revenue growth across each of our E&M and market. highlighted by the continued strength in key sub-markets, including our data center business. While revenues declined slightly in our transmission and distribution segment as we faced some weather related delays in certain markets, our T&D project execution was solid, enabling us to grow our T&D segment EBITDA during the quarter, even with the revenue decline. Our first quarter EBITDA increased 32% with margins consistent to last year, even with the incremental stand-alone operating costs, highlighting our strong project execution during the quarter and our ability to operate effectively even during uneven market environments.

Jeff Thiede: The diversification of our business was on full display as we generated revenue growth across each of our E&M end markets, highlighted by the continued strength in key submarkets, including our data center business. While revenues declined slightly in our transmission and distribution segment as we faced some weather-related delays in certain markets, our T&D project execution was solid, enabling us to grow our T&D segment EBITDA during the quarter, even with the revenue decline. Our Q1 EBITDA increased 32%, with margins consistent to last year, even with the incremental standalone operating costs, highlighting our strong project execution during the quarter and our ability to operate effectively even during uneven market environments. The tariff and trade uncertainties are creating very dynamic operating conditions, but we are well equipped to manage through these challenges.

Paul: The diversification of our business was on full display as we generated revenue growth across each of our end markets highlighted by the continued strength in key submarkets, including our datacenter business.

Paul: While revenues declined slightly in our transmission and distribution segment as we face some weather related delays in certain markets. Our T&D project execution was solid enabling us to grow our T&D segment EBITDA during the quarter, even with the revenue decline.

Paul: Our first quarter EBITDA increased 32% with margins consistent to last year, even with the incremental standalone operating costs, highlighting our strong project execution during the quarter and our ability to operate effectively even during uneven market environments.

Jeff Seed: The tariff and trade uncertainties are creating very dynamic operating conditions, but we are well equipped to manage through these challenges.

Paul: Tariff and trade uncertainties are creating very dynamic operating conditions, but we are well equipped to manage through these challenges.

Jeff Seed: During times like these, it is critical we remain disciplined and stick to our Everest playbook, which has helped us successfully execute during economic volatility in the past, such as during the COVID pandemic. In these market environments, we increase our dialogue with our customers. We look to early material procurement and lock-in pricing when possible. And we ensure our contracts include terms that enable us to successfully execute on our commitments to our customers. We have processes in place to manage through these conditions and we are confident that we will successfully navigate the uncertainties and continue to safely and efficiently execute for our clients.

Jeff Thiede: During times like these, it is critical we remain disciplined and stick to our Everus playbook, which has helped us successfully execute during economic volatility in the past, such as during the COVID pandemic. In these market environments, we increase our dialogue with our customers. We look to early material procurement and lock in pricing when possible, and we ensure our contracts include terms that enable us to successfully execute on our commitments to our customers. We have processes in place to manage through these conditions, and we are confident that we will successfully navigate the uncertainties and continue to safely and efficiently execute for our clients. We are very pleased to see momentum from favorable secular demand trends continuing into 2025.

Paul: During times like these it is critical we remain disciplined and stick to our Everest playbook, which has helped us successfully execute during economic volatility in the past such as during the Covid pandemic.

Paul: These market environments, we increased our dialogue with our customers, we look to early material procurement and lock in pricing when possible and we ensure our contracts include terms that enable us to successfully execute on our commitments to our customers.

Paul: We have processes in place to manage through these conditions and we are confident we will successfully navigate the uncertainties and continue to safely and efficiently execute for our clients.

Jeff Seed: We are very pleased to see momentum from favorable secular demand trends continuing into 2025. Our total backlog at the end of the first quarter was up 10% from year-end and up 41% from the prior year period, with growth in both E&M and T&D. Our strong backlog growth is a direct reflection of our track record of successful execution and the trust that our customers place in Everest to complete jobs on time, on budget, and consistent with the exacting specification that our partners demand. Importantly, our E&M backlog. which increased 46% from the prior year period was driven by growth in several of our key submarkets including data center, manufacturing, government, and hospitality.

Paul: We are very pleased to see momentum from favorable secular demand trends continuing into 2025, our total backlog at the end of the first quarter was up 10% from year end and up 41% from the prior year period with growth in both E N M and T&D.

Jeff Thiede: Our total backlog at the end of the first quarter was up 10% from year-end and up 41% from the prior year period, with growth in both E&M and T&D. Our strong backlog growth is a direct reflection of our track record of successful execution and the trust that our customers place in Everus to complete jobs on time, on budget, and consistent with the exacting specification that our partners demand. Importantly, our E&M backlog, which increased 46% from the prior year period, was driven by growth in several of our key submarkets, including data center, manufacturing, government, and hospitality. This broad strength highlights the diversity in our business and the attractive industry fundamentals across many of our key end markets.

Paul: Our strong backlog growth is a direct reflection of our track record of successful execution and the trust that our customers place in Everest to complete jobs on time on budget and consistent with the exacting specification that our partners demand.

Paul: Importantly, our E&S backlog.

Paul: Which increased 46% from the prior year period was driven by growth in several of our key submarkets, including data Center manufacturing.

Paul: Government and hospitality.

Jeff Seed: This broad spring highlights the diversity in our business and the attractive industry fundamentals across many of our key end markets. While there will likely continue to be quarter-to-quarter fluctuations, We have a demonstrated track record of successfully growing our backlog over time, which we highlight on the bottom of slide four. We are confident we can continue this trend moving forward. While there is a lot of macro uncertainty in the broader economy, we remain encouraged by the trends in several of our key end markets, and we are well positioned to benefit from several favorable sector drivers. Our positioning within these markets is a critical aspect of our strategy, ensuring we are identifying the next growth drivers and favorable market opportunities, and ensuring we have the people and resources in place to take advantage of these opportunities.

Paul: This broad strength highlights the diversity in our business and the attractive industry fundamentals across many of our key end markets.

Jeff Thiede: While there will likely continue to be quarter-to-quarter fluctuations, we have a demonstrated track record of successfully growing our backlog over time, which we highlight on the bottom of slide four. We are confident we can continue this trend moving forward. While there is a lot of macro uncertainty in the broader economy, we remain encouraged by the trends in several of our key end markets, and we are well-positioned to benefit from several favorable secular drivers. Our positioning within these markets is a critical aspect of our strategy, ensuring we are identifying the next growth drivers and favorable market opportunities and ensuring we have the people and resources in place to take advantage of these opportunities. We have successfully done this throughout our history, and we are continually evaluating our markets to make sure we are positioned for growth.

Paul: While there will likely continue to be quarter to quarter fluctuations, we have a demonstrated track record of successfully growing our backlog over time, which we highlight on the bottom of slide four.

Paul: We are confident we can continue this trend moving forward.

Paul: Well there is a lot of macro uncertainty in the broader economy. We remain encouraged by the trends in several of our key end markets and we are well positioned to benefit from several favorable secular drivers.

Paul: Our positioning within these markets is a critical aspect of our strategy, ensuring we are identifying the next growth drivers and favorable market opportunities and ensuring we have the people and resources in place to take advantage of these opportunities.

Jeff Seed: We have successfully done this throughout our history, and we are continually evaluating our markets to make sure we are positioned for growth. As we look across our business, we continue to see favorable trends in key submarkets, including data center, hospitality, and high-tech reshoring. As it relates to data center work, our message has not really changed. While there has been a lot of noise in the market and it will likely continue to be more going forward, we continue to see very strong demand trends and have not seen any meaningful change in our customers' plans. We benefit from our diverse geographic footprint and our strong team of operating companies in key markets.

Paul: We have successfully done this throughout our history and we are continually evaluating our markets to make sure we are positioned for growth.

Jeff Thiede: As we look across our business, we continue to see favorable trends in key submarkets, including data center, hospitality, and high-tech reshoring. As it relates to data center work, our message has not really changed. While there has been a lot of noise in the market, and there will likely continue to be more going forward, we continue to see very strong demand trends and have not seen any meaningful change in our customers' plans. We benefit from our diverse geographic footprint and our strong team of operating companies in key markets, which put us in a favorable position to take advantage of the favorable trends in the data center market. The demand environment is robust, and we remain well-positioned as one of the small handful of service providers with the track record, expertise, and people to successfully execute on these complex jobs.

Paul: As we look across our business, we continue to see favorable trends in key submarkets, including data center hospitality and high Tech re short.

Paul: As it relates to data center work, our message has not really changed.

Paul: There has been a lot of noise in the market.

Paul: We'll likely continue to be more going forward, we continue to see very strong demand trends they have not seen any meaningful change in our customers' plants.

We benefit from our diverse geographic footprint and our strong team of operating companies in key markets, which put us in a favorable position to take advantage of the favorable trends in the data center market.

Jeff Seed: put us in a favorable position to take advantage of the favorable trends in the data center market. The demand environment is robust, and we remain well positioned as one of the small handful of service providers with the track record, expertise, and people to successfully execute on these complex jobs. As we have discussed, we are coming off a very strong few years from our hospitality business. However, we continue to see additional opportunities for growth. Through the first quarter, we continue to secure projects with a number of additional exciting opportunities in Las Vegas. We continue to be confident in our hospitality.

Paul: The demand environment is robust and we remain well positioned as one of the small handful of service providers with a track record expertise and people to successfully execute on these complex jobs.

Jeff Thiede: As we have discussed, we are coming off a very strong few years from our hospitality business. However, we continue to see additional opportunities for growth. Through the Q1, we continued to secure projects with a number of additional exciting opportunities in Las Vegas. We continue to be confident in our hospitality business. High-tech reshoring has been a strong submarket for Everus, and we are happy to see that momentum continue into 2025. During the Q1, we continued to see favorable trends in the high-tech submarket. While we continue to closely monitor the macro landscape, we are optimistic about our opportunities to continue growing backlog based on the demand trends in our markets, our deep customer relationships, our diverse end market exposure, and our highly skilled team across the country.

Paul: As we have discussed we are coming off a very strong few years from our hospitality business. However, we continue to see additional opportunities for growth.

Paul: Through the first quarter, we continued to secure projects with a number of additional exciting opportunities in Las Vegas.

Paul: We continue to be confident in our hospitality business.

Jeff Seed: High-tech reshoring has been a strong submarket for Everest, and we are happy to see that momentum continue into 2025. During the first quarter, we continue to see favorable trends in the high-tech submarket. While we continue to closely monitor the macro landscape, we are optimistic about our opportunities to continue growing backlog based on the demand trends in our market. our deep customer relationships, our diverse end market exposure, and our highly skilled team across the country.

Paul: Hi Tech re shoring has been a strong sub market for Everest and we are happy to see that momentum continue into 2025.

Paul: During the first quarter, we continued to see favorable trends in the high Tech sub market.

Paul: While we continue to closely monitor the macro landscape, we are optimistic about our opportunities to continue growing backlog based on the demand trends in our markets, our deep customer relationships, our diverse end market exposure and our highly skilled team across the country.

Jeff Seed: Now, let me shift gears a bit and provide an update on our forever strategy and some of our key accomplishments during the quarter. As a quick reminder, our Forever strategy, which is detailed on slide six of today's presentation, is focused on attracting, retaining, and training our most critical asset, our employee. creating value for our customers and shareholders. delivering safe and high-quality execution. and maintaining and growing our customer relationship. During the first quarter, we continued our focus on attracting and retaining key talent. We were able to add to our skilled labor headcount during the quarter, which is critical to supporting our long-term growth objectives.

Jeff Thiede: Let me shift gears a bit and provide an update on our 4EVER Strategy and some of our key accomplishments during the quarter. As a quick reminder, our 4EVER Strategy, which is detailed on slide 6 of today's presentation, is focused on attracting, retaining, and training our most critical asset, our employees, creating value for our customers and shareholders, delivering safe and high-quality execution, and maintaining and growing our customer relationships. During Q1, we continued our focus on attracting and retaining key talent. We were able to add to our skilled labor headcount during the quarter, which is critical to supporting our long-term growth objectives. We had another quarter of strong execution, which positively impacted results during the quarter. As I already discussed, leveraging our talented workforce and long-term customer relationships is critical to execution during uneven market environments such as the one we are witnessing now.

Paul: Now, let me shift gears, a bit and provide an update on our forever strategy and some of our key accomplishments during the quarter.

Paul: As a quick reminder, our forever strategy, which is detailed on slide six of today's presentation is focused on.

Paul: <unk>, retaining and training our most critical asset our employees.

Paul: Creating value for our customers and shareholders.

Paul: Delivering safe and high quality execution.

Paul: And maintaining and growing our customer relationships.

Paul: During the first quarter, we continued our focus on attracting and retaining key talent, we were able to add to our skilled labor head count during the quarter, which is critical to supporting our long term growth objectives.

Jeff Seed: We had another quarter of strong execution, which positively impacted results during the quarter. As I already discussed, leveraging our talented workforce and long-term customer relationships is critical to execution during uneven market environments such as the one we are witnessing now. So we were extremely pleased with our positive execution during the quarter.

Paul: We had another quarter of strong execution, which positively impacted results during the quarter.

Paul: As I already discussed leveraging our talented workforce and long term customer relationships is critical to execution during uneven market environments such as the one we are witnessing now so.

Jeff Thiede: We were extremely pleased with our positive execution during the quarter. Our 4EVER Framework forms 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 seven in today's presentation. I've already discussed our progress on our growth and execution initiatives, I'd like to now highlight some of our accomplishments as it relates to our disciplined capital allocation framework. As we have discussed since our spin, a key priority of our strategy is to step up our capital spending to take advantage of the attractive organic growth opportunities we see in our markets. Max will provide more detail, a significant portion of the increase in our CapEx during the Q1 was to purchase a new prefabrication facility in Kansas City.

Paul: So we were extremely pleased with our positive execution during the quarter.

Jeff Seed: Our forever framework forms 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 7 in today's presentation.

Paul: Our forever framework forms the basis for everything we do and is designed to deliver value creation through sustained profitable growth operational excellence and disciplined capital allocation.

Paul: Our value creation framework as highlighted on slide seven in today's presentation.

Jeff Seed: I've already discussed our progress on our growth and execution initiatives, so I'd like to now highlight some of our accomplishments as it relates to our Disciplined Capital Allocation Framework. As we have discussed since our spin, a key priority of our strategy is to step up our capital spending to take advantage of the attractive organic growth opportunities we see in our market. Max will provide more detail, but a significant portion of the increase in our CapEx during the first quarter was to purchase a new prefabrication facility in Kansas City. Having a robust network of prefab facilities is critical in our business, so we are excited by the progress of our newest facility.

Paul: I've already discussed our progress on our growth and execution initiatives. So I would like to now highlight some of our accomplishments as it relates to our disciplined capital allocation framework.

Paul: As we have discussed since our spin a key priority of our strategy is to step up our capital spending to take advantage of the attractive organic growth opportunities, we see in our markets.

Paul: Max will provide more detail, but a significant portion of the increase in our capex. During the first quarter was to purchase a new pre fabrication facility in Kansas City.

Jeff Thiede: Having a robust network of prefab facilities is critical in our business, so we are excited by the progress of our newest facility. We are consolidating several facilities into one new facility while expanding the total footprint by approximately 128,000 sq ft. Another key aspect of our capital allocation strategy is strategic M&A. We were very excited about our recent announcement that we added Tim Sznewajs to our team as Vice President of Corporate Development and Strategy. Tim will play a critical role in our growth strategy, and he is uniquely positioned to help build out our M&A capabilities in partnership with our established internal team. Tim brings over 20 years of experience in middle market construction services investment banking. Tim has deep industry knowledge, relationships, and transaction experience with a particular focus on both the E&M and T&D markets.

Paul: Having a robust network of pre fab facilities is critical in our business. So we are excited by the progress of our newest facility.

Jeff Seed: We are consolidating several facilities into one new facility while expanding the total footprint by approximately 128,000 square feet.

Paul: We are consolidating several facilities into one new facility, while expanding the total footprint by approximately 128000 square feet.

Jeff Seed: Another key aspect of our Capital Allocation Strategy is Strategic M&A, so we were very excited about our recent announcement that we added Tim Svevice to our team as Vice President of Corporate Development and Strategy. Jim will play a critical role in our growth strategy, and he is uniquely positioned to help build out our M&A capabilities in partnership with our established internal team. Tim brings over 20 years of experience in Middle Market Construction Services Investment Banking. Tim has deep industry knowledge, relationships, and transaction experience with a particular focus on both the E&M and T&D markets. We are thrilled to have Tim on the team and look forward to his contribution to our forever strategy.

Paul: Another key aspect of our capital allocation strategy is strategic M&A. So.

Paul: So we were very excited about our recent announcement that we added <unk> to our team as vice president of corporate development and strategy.

Paul: Kim will play a critical role in our growth strategy and he is uniquely positioned to help build out our M&A capabilities and partnership with our established internal team.

Tim: Tim brings over 20 years of experience in middle market construction services investment banking.

Tim: Tim has deep industry knowledge relationships and transaction experience with a particular focus on both the A&M and T&D markets, where it is.

Jeff Thiede: We are thrilled to have Tim on the team and look forward to his contribution to our 4EVER Strategy. As we highlight on slide 8 of today's presentation, we expect our 4EVER Strategy to drive us toward a long-term financial framework of organic revenue growth in a range of 5 to 7% compound annual growth, which combined with our disciplined focus on operational excellence, should drive EBITDA growth of 7 to 9% on a compound annual basis. We are encouraged by the strong start to the year, favorable backlog trends, and high performance of our team. We are confident we will remain on track to execute on our long-term financial targets, driving value for our shareholders. With that, I'll turn it over to Max.

Tim: Thrilled to have him on the team and I look forward to his contribution to our forever strategy.

Jeff Seed: As we highlight on slide 8 of today's presentation, we expect our forever strategy to drive us toward a long-term financial framework of organic revenue growth in a range of 5 to 7% compound annual growth. which combined with our disciplined focus on operational excellence should drive EBITDA growth of 7 to 9% on a compound annual basis. We are encouraged by the strong start to the year, favorable backlog trends, and high performance of our team, and we are confident we will remain on track to execute on our long-term financial targets, driving value for our shareholders.

Tim: As we highlight on slide eight of today's presentation, we expect our four of our strategy to drive us towards a long term financial framework of organic revenue growth in a range of 5% to 7% compound annual growth.

Tim: Which combined with our disciplined focus on operational excellence should drive EBITDA growth of 7% to 9% on a compound annual basis.

Tim: We are encouraged by the strong start to the year favorable backlog trends and high performance of our team and we are confident we will remain on track to execute on our long term financial targets driving value for our shareholders.

Matt: With that, I'll turn it over to Matt. Thank you, Jeff, and good morning, everyone. I will provide additional details on the quarter, give an update on our liquidity and balance and wrap up with some additional details on our guide. Beginning on slide 10 in today's presentation, revenues for the 1st quarter of 2025 were 826.6 million dollars. An increase of 32% compared to the same period last year. The increase was driven by E&M revenue increasing 47%. partially offset by a 2% decline in T&D. Total EBITDA was $61.8 million during the first quarter. An increase of 32% from the same period last year that was driven by solid revenue growth and increases in segment level margins in both E&M and T&D.

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

Max 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 10 in today's presentation, revenues for Q1 2025 were $826.6 million, an increase of 32% compared to the same period last year. The increase was driven by E&M revenue increasing 47%, partially offset by a 2% decline in T&D. Total EBITDA was $61.8 million during Q1, an increase of 32% from the same period last year that was driven by solid revenue growth and increases in segment-level margins in both E&M and T&D, partially offset by the incremental stand-alone operating costs.

Max: Thank you, Jeff and good morning, everyone.

Max: 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 10 in today's presentation revenues for the first quarter of 2025 were $826 6 million, an increase of 32% compared to the same period last year.

Max: The increase was driven by E&S revenue increasing 47%.

Max: Partially offset by a 2% decline in T&D.

Max: Total EBITDA was $61 $8 million during the first quarter.

Max: An increase of 32% from the same period last year that was driven by solid revenue growth and increases in segment level margins in both <unk> and T&D, partially offset by the incremental standalone operating costs.

Matt: partially offset by the incremental stand-alone operating Our standalone operating costs continue to trend in line with our expectation for full year run rate incremental costs of $28 million. As a result of all this, our first quarter EBITDA margin was 7.5%, consistent with the prior year period. At March 31st, total backlog was 3.1 billion dollars, up 10% from December 31, and up 41% from March 31 of 2024. We saw solid year-over-year and sequential growth in both our segments with E&M backlog up 46% from the prior year period and T&D up 8% from the prior year period.

Max Marcy: Our stand-alone operating costs continue to trend in line with our expectation for full-year run rate incremental costs of $28 million. As a result of all this, our Q1 EBITDA margin was 7.5%, consistent with the prior year period. At 31 March, total backlog was $3.1 billion, up 10% from 31 December and up 41% from 31 March 2024. We saw solid year-over-year and sequential growth in both our segments, with E&M backlog up 46% from the prior year period and T&D up 8% from the prior year period. While data center work was a key driver, we saw growth in several key submarkets, highlighting the diversity in our business.

Max: Our stand alone operating costs continuing to trend in line with our expectation for full year run rate incremental cost of $28 million.

Max: As a result of all this our first quarter EBIT margin was seven 5% consistent with the prior year period.

Max: At March 31, total backlog was $3 1 billion.

Max: Up 10% from December 31, and up 41% from March 31 of 2024.

Max: We saw solid year over year and sequential growth in both our segments with ENN backlog up 46% from the prior year period, and T&D up 8% from the prior year period.

Matt: While data center work was a key driver, we saw growth in several key submarkets, highlighting the diversity in our business.

Max: While data center work was a key driver we saw growth in several key submarkets.

Max: Letting the diversity in our business.

Matt: As we have discussed in recent quarters, 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 in the coming quarter.

Max Marcy: As we have discussed in recent quarters, 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 in the coming quarters. Now, turning to our segment results. Let's first look at E&M, where our Q1 revenue increased 47% to $648.2 million, compared to $441 million in the prior year period. The increase was driven by growth across each of our end markets, once again highlighting the diversity of our business. Our E&M EBITDA was $49.5 million in Q1, up from $32.8 million in the same period last year, or an increase of 51%.

Max: As we have discussed in recent quarters, given the current mix of our backlog, which includes some larger multiyear projects our backlog conversion may be extended relative to our historical pattern in the coming quarters.

Matt: Now, turning to our segment results, let's first look at E&M where our first quarter revenue increased 47% to $648.2 million compared to $441 million in the prior year period. The increase was driven by growth across each of our end markets. Once again, highlighting the diversity of our business.

Max: Now turning to our segment results, let's first look at E&S.

Max: While our first quarter revenue increased 47% to $648 2 million compared to $441 million in the prior year period.

The increase was driven by growth across each of our end markets. Once again, highlighting the diversity of our business.

Matt: Our E&M EBITDA was $49.5 million in the first quarter, up from $32.8 million in the same period last year, or an increase of 51%. The increase was driven by higher revenues and higher income from joint ventures, partially offset by changes in project mix and higher selling general and administrative expenses. As a result, our E&M EBITDA margin was 7.6%, up 20 basis points from last year.

Max: Our <unk> EBITDA was $49 $5 million in the first quarter up from $32 8 million in the same period last year or an increase of 51%.

Max Marcy: The increase was driven by higher revenues and higher income from joint ventures, partially offset by changes in project mix and higher selling, general, and administrative expenses. As a result, our E&M EBITDA margin was 7.6%, up 20 basis points from last year. Our Q1 T&D revenue was $185 million, down modestly from $188.5 million last year. The 2% decline was the result of lower revenue in our utility business, due in part to weather-related delays. This was partially offset by increased workloads in the transportation end market, particularly in the traffic signalization submarket. T&D EBITDA was $20.1 million during the Q1 of 2025, up 5.8% from $19 million last year.

Max: The increase was driven by higher revenues and higher income from joint ventures, partially offset by changes in project mix and higher selling general and administrative expenses.

Max: As a result, our <unk> EBITDA margin was seven 6% up 20 basis points from last year.

Matt: Our first quarter T&D revenue was $185 million, down modestly from $188.5 million last year. The 2% decline was the result of lower revenue in our utility business. due in part to weather-related delays. This was partially offset by increased workloads in the transportation and market, particularly in the traffic signalization sub market. T&D EBITDA was $20.1 million during the first quarter of 2025, up 5.8% from $19 million last We were able to increase our T&D EBITDA, despite the modest revenue decline, as a result of our strong project execution and lower SG&A costs. As a result, our T&D EBITDA margin was 10.9% of 80 basis points from last year.

Max: Our first quarter T&D revenue was $185 million.

Max: <unk> modestly from $188 $5 million last year.

Max: A 2% decline was the result of lower revenue in our utility business due in part to weather related delays.

Max: This was partially offset by increased workloads in the transportation end market, particularly in the traffic signals Asian sub market.

Max: T&D EBITDA was $20 1 million during the first quarter of 2025 up five 8% from $19 million last year.

Max Marcy: We were able to increase our T&D EBITDA despite the modest revenue decline as a result of our strong project execution and lower SG&A costs. As a result, our T&D EBITDA margin was 10.9%, up 80 basis points from last year.

Max: We were able to increase our T&D EBITDA. Despite the modest revenue decline as a result of our strong project execution and lower SG&A costs.

Max: As a result, our team the EBITDA margin was 10, 9% up 80 basis points from last year.

Matt: Turning to our balance sheet and liquidity. As of March 31, we had $54.3 million of unrestricted cash and cash equivalents. $296.2 million of gross debt and $209.4 million available under the credit facility, net of $15.6 million of standby letters of credit. Net leverage, defined as net debt to shrilling 12-month EBITDA, was approximately one-time. CapEx was $18.59 during the first order. Up from $9.2 million in the first quarter last As Jeff discussed, the increase in CapEx reflects our strategy to increase investments that support our organic growth. The increase in CapEx went to support the purchase of our newest prefab facility, as well as additional vehicles and equipment to support the growth of our business.

Jeff Thiede: Turning to our balance sheet and liquidity. As of March 31, we had $54.3 million of unrestricted cash and cash equivalents, $296.2 million of gross debt, and $209.4 million available under the credit facility, net of $15.6 million of standby letters of credit. Net leverage, defined as net debt to trailing twelve-month EBITDA, was approximately 1x. CapEx was $18.5 million during Q1, up from $9.2 million in Q1 of last year. As Jeff discussed, the increase in CapEx reflects our strategy to increase investments that support our organic growth. The increase in CapEx went to support the purchase of our newest prefab facility, as well as additional vehicles and equipment to support the growth of our business.

Max Marcy: Turning to our balance sheet and liquidity. As of March 31, we had $54.3 million of unrestricted cash and cash equivalents, $296.2 million of gross debt, and $209.4 million available under the credit facility, net of $15.6 million of standby letters of credit. Net leverage, defined as net debt to trailing twelve-month EBITDA, was approximately 1x. CapEx was $18.5 million during Q1, up from $9.2 million in Q1 of last year. As Jeff discussed, the increase in CapEx reflects our strategy to increase investments that support our organic growth. The increase in CapEx went to support the purchase of our newest prefab facility, as well as additional vehicles and equipment to support the growth of our business.

Max: Turning to our balance sheet and liquidity.

Max: As of March 31, we had $54 $3 million of unrestricted cash and cash equivalents.

Max: $296 2 million of gross debt.

Max: And $209 $4 million available under the credit facility net of $15 $6 million of standby letters of credit.

Max: Net leverage defined as net debt to trailing 12 month EBITDA was approximately one times.

Max: Capex was $18 $5 million during the first quarter.

Max: Up from $9 $2 million in the first quarter last year.

Max: As Jeff discussed the increase in Capex reflects our strategy to increase investments that support our organic growth.

Max: The increase in Capex went to support the purchase of our newest prefab facility as well as additional vehicles and equipment to support the growth of our business.

Matt: Wrapping up with guidance, we are very pleased with our solid start to the year and are encouraged by our healthy backlog levels, favorable demand drivers, and strong execution. That said, it is early in the year and project timing is always difficult to predict. Additionally, the current macro environment adds another layer of uncertainty that is very difficult to quantify given the news flow that seems to change daily.

Jeff Thiede: Wrapping up with guidance, we are very pleased with our solid start to the year and are encouraged by our healthy backlog levels, favorable demand drivers, and strong execution. That said, it is early in the year and project timing is always difficult to predict. Additionally, the current macro environment adds another layer of uncertainty that is very difficult to quantify given the news flow that seems to change daily. As a result, we are affirming our 2025 guidance that calls for revenues in the range of $3 to 3.1 billion and EBITDA in the range of $210 to 225 million. That completes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call.

Max Marcy: Wrapping up with guidance, we are very pleased with our solid start to the year and are encouraged by our healthy backlog levels, favorable demand drivers, and strong execution. That said, it is early in the year and project timing is always difficult to predict. Additionally, the current macro environment adds another layer of uncertainty that is very difficult to quantify given the news flow that seems to change daily. As a result, we are affirming our 2025 guidance that calls for revenues in the range of $3 to 3.1 billion and EBITDA in the range of $210 to 225 million. That completes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call.

Max: Wrapping up with guidance, we are very pleased with our solid start to the year and are encouraged by our healthy backlog levels favorable demand drivers and strong execution.

Max: That said it is early in the year and project timing is always difficult to predict.

Additionally, the current macro environment adds another layer of uncertainty that is very difficult to quantify given the news flow that seems to change daily.

Matt: As a result, we are affirming our 2025 guidance that calls for revenues in the range of $3 to $3.1 billion and EBITDA in the range of $210 to $225 million.

Max: As a result, we are affirming our 2025 guidance that calls for revenues in the range of 3% to $3 1 billion in EBITDA in the range of $210 million to $225 million.

Ian: That completes our prepared remarks. Operator, we are now ready for the question and answer portion of our. Thank you. As a reminder, to ask a question, please press star followed by the number one on your telephone keypad to enter the question queue. We'll pause for just a moment to compile the Q&A.

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

Operator: Thank you. As a reminder, to ask a question, please press star followed by the number one on your telephone keypad to enter the question queue. We'll pause for just a moment to compile the Q&A roster. Our first question comes from the line of Brent Thielman with D.A. Davidson. Your line is opened.

Max: Thank you as a reminder to ask a question. Please press star followed by the number one on your telephone keypad to enter the question queue, we'll pause for just a moment to compile the Q&A roster.

Brett Thielman: Our first question comes from the line of Brett Thielman with D.A. Davidson. Your line is open. Hey, thanks. Good morning. Congrats on a great first quarter. Thanks, Brent.

Speaker Change: Our first question comes from the line of Brent Thielman.

Speaker Change: D. A Davidson your line is opened.

Brent Thielman: Hey, thanks. Good morning. Congrats on a great Q1.

Speaker Change: Hey, Thanks, good morning, Congrats on a great first quarter.

Jeff Thiede: Thanks, Brent.

Brian: Thanks, Brian.

Brent Thielman: Jeff or Max, I mean, you talked about this kind of larger mix of longer lead time projects before. I guess, as you're sitting here in May and planning for the remainder of the year, is it that there's a handful of specific projects you're executing on now that, you know, may still be swing factors in terms of revenue timing this year? Or is it more so kind of the ramp of new business, maybe not as much a contributor to the Q1, but maybe some element of uncertainty in terms of how that progresses this year? Just wanted to get a sense around kind of schedules.

Jeff Seed: Jeff or Max, I mean, you've talked about this kind of larger mix of longer lead time projects before. I guess as you're sitting here in May and planning for the remainder of the year, is it that there's a handful of specific projects you're executing on now that, you know, may still be swing factors in terms of revenue timing this year, or is it more so kind of the ramp of new business, maybe not as much a contributor to the first quarter, but maybe some element of uncertainty in terms of how that progresses this year? Just wanted to get a sense around kind of schedule.

Brian: Jeff for Max and you talked about this and a larger mix of longer lead time projects before I guess as Youre sitting here in May and planning for the remainder of the year is it is it that there is a handful of specific projects youre executing on now that you have.

Brian: May still be swing factors in terms of revenue timing this year or is it more so kind of the ramp of new business, maybe not as much you contributed in the first quarter, but you may be some element of uncertainty in terms of how that progresses. This year just wanted to get a sense around kind of schedules.

Jeff Seed: Yeah, thanks for the question, Brent. This is Jeff. As we've mentioned before, our backlog could be bumpy.

Jeff Thiede: Yeah. Thanks for the question, Brent. This is Jeff. As we've mentioned before, our backlog could be bumpy. As we've been able to build upon our expertise to be able to win these large, complex projects, some of these projects have a longer front end. That's why we get selected on these projects early to be involved in constructability reviews as a partner and also as an extension of design team. When we have these large projects that we win, we're able to be able to add that value, and sometimes that extends the duration of the project on the front end.

Brian: Yes. Thanks for the question Brad This is Jeff.

Brian: Mentioned before our backlog can be bumpy and as we've been able to build upon our expertise to be able to.

Jeff Seed: And as we've been able to build upon our expertise to be able to When these large complex projects, some of these projects have a longer front end, and that's why we get selected on these projects early to be involved in constructability reviews as a partner and also as an extension of the design team. So when we have these large projects that we win, we're able to be able to add that value and sometimes that extends the duration of the project on the front end.

Brian: When these large complex projects some of these projects have a lager front end.

Brian: That's why we get selected on these projects early to be involved and construct ability reviews as a partner.

Brian: Also as an extension of the design team. So when we have these large projects that we win.

Brian: We are able to be able to add that value and sometimes that extends the duration of the project on the front end.

Jeff Seed: OK, and then on the transmission and distribution side, sounds like there were some seasonal factors that worked against the revenue here in the business group to some degree.

Brent Thielman: Okay. On the transmission and distribution side, sounds like there were some seasonal factors that worked against the revenue here in the business group to some degree. Jeff or Max, can you talk about the outlook for the rest of the year just in terms of how kind of workloads look to be shaping up? Looks like the backlog picked up nicely.

Speaker Change: Okay, and then on the transmission and distribution side. It sounds like there were some seasonal factors that.

Brian: Worked against that.

Brian: The revenue here in the business group to some degree.

Jeff Seed: Jeff or Max, can you talk about the outlook for the rest of the year, just in terms of how kind of workloads look to be shaping up? Looks like the backlog picked up. Yes, it did, especially with the undergrounding where we're seeing a lot more opportunities. We've got a lot of expertise with undergrounding in addition to overhead transmission distribution work. You know, the T&D segment is a very important part of our business, and we love to build upon our success with our customers. Many of our customers we've been working with for over 30 years, so we're very well positioned with the expertise of our field and management teams to be able to build upon our success and take on more work.

Speaker Change: Jeff for Max can you talk about the outlook for the rest of the year just in terms of how kind of workload slipped to be shaping up it looks like the backlog ticked up nicely.

Jeff Thiede: Yes, it did, especially with the undergrounding, where we're seeing a lot more opportunities. We've got a lot of expertise with undergrounding in addition to overhead transmission and distribution work. You know, the T&D segment is a very important part of our business, and we look to build upon our success with our customers. Many of our customers we've been working with for over 30 years, so we're very well-positioned with the expertise of our field and management teams to be able to build upon our success and take on more work.

Jeff: Yes, it did especially with the underground where we're seeing a lot more opportunities and we've got a lot of expertise with underground. In addition to overhead transmission and distribution work. The T&D segment is a very important part of our business and we look to build upon our success with our customers many of our customers.

Jeff: We've been working with for over 30 years. So we're very well positioned with the expertise of our field management teams to be able to build upon our success and take on more work.

Jeff Seed: Okay, just the last one. The high-tech manufacturing and market, could you just talk about the status of that for you? I know there's been some selective kind of reductions in CapEx among some participants out there. It sounds like in the commentary, business as usual there.

Brent Thielman: Okay. Just a last one. The high-tech manufacturing end market, could you just talk about the status of that for you? I know there's been some selective kind of reductions in CapEx among some participants out there. It sounds like in the commentary business as usual there. Jeff, maybe you could just comment on that market?

Jeff: Okay, just a last one.

Jeff: The high Tech manufacturing and market.

Jeff: Can you just talk about the status of that for you I know there's been some selective kind of reductions in capex. Among some participants out there it sounds like in the commentary business as usual there, but Jeff maybe you could just comment on that market.

Jeff Seed: But Jeff, maybe you could just comment on that, Mark. Sure. We've got a 30-plus year relationship with one of our large semiconductor manufacturers, and we've experienced some cyclicality of capital allocated to construction and maintenance. Nevertheless, we are still going to support this customer and other semiconductor manufacturing customers. These are very sophisticated factories, and we're relied upon for the services that we provide. The projects with these customers are difficult and with the track record that we have and the ability to deliver safely, this has benefited us in the past and it keeps us in great position for continuing our success.

Jeff Thiede: Sure. We've got a 30-plus year relationship with one of our large semiconductor manufacturers, and we've experienced some cyclicality of capital allocated to construction and maintenance. Nevertheless, we are still going to support this customer and other semiconductor manufacturing customers. These are very sophisticated factories, and we're relied upon for the services that we provide. With the projects with these customers are difficult and with the track record that we have and the ability to deliver safely, this has benefited us in the past, and it keeps us in great position for continuing our success.

Jeff: Sure, We've got 30, plus year relationship with one of our large semiconductor manufacturers.

Jeff: Experienced some cyclicality of capital allocated to construction and maintenance Nevertheless.

Jeff: We are still going to support this customer or at other semiconductor manufacturing customers. These are very sophisticated factories and we're relied upon for the services that we provide.

Jeff: Projects with these customers are difficult and with the track record that we have and the ability to deliver safely. This has benefited us in the past and it keeps us in great position for continuing our success.

Jeff: Okay.

Brent Thielman: Okay. Thanks. I'll pass it on.

Brett Thielman: Okay, thanks.

Jeff: Okay. Thanks, I'll pass it on.

Ian Zaffino: So I'll pass it on. Thank you.

Jeff Thiede: Thank you, Brent.

Jeff: Thank you Brad.

Ian Zaffino: Our next question comes from the line of Ian Zaffino with Oppenheimer. Thank you very much and have a very good quarter.

Operator: Our next question comes from the line of Ian Zaffino with Oppenheimer. Your line is opened.

Speaker Change: Our next question comes from the line of Ian Zaffino with Oppenheimer. Your line is opened.

Operator: Hi, great. Thank you very much and very good quarter.

Ian Zaffino: Hi, great. Thank you very much and very good quarter.

Jeff Thiede: Thanks.

Operator: Can you guys maybe talk about the outlook for the non-backlog business? You know, backlog's up a lot. You know, is this kind of a one-to-one thing where backlog's going way up and non-backlog goes way down? Is there maybe potential to keep non-backlog from declining as much, are you hiring new workers? You know, how do we think about that relationship between those two and, you know, your outlook for non-backlog? Thanks.

Ian Zaffino: Can you guys maybe talk about the outlook for the non-backlog business? You know, backlog's up a lot. You know, is this kind of a one-to-one thing where backlog's going way up and non-backlog goes way down? Is there maybe potential to keep non-backlog from declining as much, are you hiring new workers? You know, how do we think about that relationship between those two and, you know, your outlook for non-backlog? Thanks.

Speaker Change: Can you guys, maybe talk about the outlook for the non backlog of business backlog is up a lot or is this kind of a one to one thing where backlog is going way up and non backlog goes way down is there may be potential to.

Ian Zaffino: So, how do you keep non-backlogging from declining as much? Are you hiring new workers? You know, how do we think about that relationship between those two and, you know, your outlook for non-backlog? Yeah, the non-backlog work is very, very important to us, especially the MSA work. We have looked to diversify our business, not just in the markets that we serve, but also our customer base and also the size of projects.

Speaker Change: Keith non backlog declining as much are you hiring new workers.

Speaker Change: How do we think about that relationship between those two.

Speaker Change: And your outlook for for non backlog. Thanks.

Jeff Thiede: Yeah, the non-backlog work is very, very important to us, especially the MSA work. You know, we have looked to diversify our business, not just in the markets that we serve, but also our customer base and also the size of projects. I'm gonna ask Max to add to that answer.

Ian Zaffino: Yeah. The non backlog work is very very important to us, especially the MSA work.

Ian Zaffino: We look to.

Ian Zaffino: To diversify our business not just in the markets that we serve but also our customer base and also the size of projects. So I'm going to ask Max to add to that answer yes, Ian Thanks, So I think.

Max: So I'm going to ask Max to add to that answer. Yeah, Ian, thanks. So I think, you know, as we take a look at this, you know, that kind of book and burn, if you will, business, I mean, you know, I think that kind of ebbs and flows based on how we've deployed our assets and our resources and our people. And as you can see, we've got a pretty healthy backlog. We're working on a lot of good projects and have our resources pretty fully deployed on burning off that backlog in which we have visibility. So I think, you know, it's really about resource allocation.

Max Marcy: Yeah, Ian, thanks. I think, you know, as we take a look at this, you know, that kind of book and burn, if you will, business. I mean, you know, I think that kinda ebbs and flows based on how we've deployed our assets and our resources and our people. As you can see, we've got a pretty healthy backlog. We're working on a lot of good projects and have our resources pretty fully deployed on burning off that backlog in which we have visibility. I think, you know, it's really about resource allocation. We feel really good about, you know, deploying those resources to our backlog and how that translates to results for the rest of the year in our guidance.

Speaker Change: As we've as we take a look at this that kind of book and burn if you will business I mean, I think that kind of ebbs and flows based on how we've deployed our assets and our resources and our people.

Speaker Change: And as you can see we've got a pretty healthy backlog, where we're working on a lot of good projects and have our resources pretty fully deployed on burning off that backlog in which we have visibility. So I think it's really about resource allocation, we feel really good about deploy.

Max: We feel really good about, you know, deploying those resources to our backlog and how that translates to results for the rest of the year in our guidance.

Speaker Change: Deploying those resources to our backlog and then what how that translates to results for the rest of the year in our guidance.

Ian Zaffino: Okay, thank you.

Operator: Okay. Thank you. Then if I could ask a follow-up here. You know, I guess two parts. You know, first one, you commented on hospitality and some nice wins. Where are you in relationship to kind of, you know, the robust environment you had, you know, several years ago? Where are we there? 'Cause I know in the past you had said that that's sort of not at the level you want to be, but now you've had some wins. Maybe help us understand where you are there. Then if I was to sneak in another one, the weather delays in T&D, does that just get pushed into Q2 and Q3, the full year is kind of unchanged, or is that business actually kind of lost? Thanks.

Ian Zaffino: Okay. Thank you. Then if I could ask a follow-up here. You know, I guess two parts. You know, first one, you commented on hospitality and some nice wins. Where are you in relationship to kind of, you know, the robust environment you had, you know, several years ago? Where are we there? 'Cause I know in the past you had said that that's sort of not at the level you want to be, but now you've had some wins. Maybe help us understand where you are there. Then if I was to sneak in another one, the weather delays in T&D, does that just get pushed into Q2 and Q3, the full year is kind of unchanged, or is that business actually kind of lost? Thanks.

Speaker Change: Okay. Thanks. Thank you and then if I can ask a follow up here.

Ian Zaffino: And then, if I can ask a follow-up here, you know, I guess two parts. You know, the first one, you commented on hospitality and some nice winds. Where are you in a relationship to kind of, you know, the robust environment you had, you know, several years ago? You know, so where are we there? Because I know in the past, you said that that's sort of not at the level you want to be, but now you've had some winds, so maybe help us understand where you are there.

Speaker Change: I guess two parts first one you commented on hospitality and some nice wins, where are your relationship to kind of the robust environment you had.

Speaker Change: Several years ago.

Speaker Change:

Speaker Change: So where are we there because I know in the past you said that thats sort of not at the level you wanted a theme I know you've had some wins.

Speaker Change: Maybe help us understand where you are there and then France to sneak in another one.

Jeff Seed: And then if I was to sneak in another one, the weather delays in T&D, does that just get pushed into the second and third quarters, so the full year is kind of unchanged, or is that business actually kind of lost? Okay, thanks for the question, Ian. As far as Las Vegas, we have four great companies in this market. Our ability to provide the electrical, low voltage, mechanical HVAC, plumbing, fire protection, underground utilities for our customers. With many of them, we've had great relationships developed through a very long track record of successful execution. This contributes to a very strong position to capture future opportunities in this market.

Speaker Change: The weather delays in T&D does that just get pushed into the second and third quarters. So the full year is kind of unchanged or is that business actually kind of lost.

Jeff Thiede: Okay. thanks for the question, Ian. As far as Las Vegas, we have four great companies in this market. Our ability to provide the electrical, low voltage, mechanical HVAC, plumbing, fire protection, underground utilities for our customers, with many of them we've had great relationships developed through a very long track record of successful execution. This contributes to a very strong position to capture future opportunities in this market. As we've seen, through the end of Q1 compared to the end of last year, our backlog has increased in Las Vegas. As far as T&D, you know, with the weather issues that we mentioned earlier in our comments, you know, we believe that there is strong demand for the services of our companies and through the MSAs and also some fixed price work.

Ian Zaffino: Okay. Thanks for the question Ian as far as Las Vegas, we have four great companies in this market and our ability to provide the electrical low voltage mechanical HVAC plumbing fire protection underground utilities for our customers, but many of them. We've had great relationships developed through a very long track record.

Speaker Change: A successful execution this contributes to a very strong position to capture future opportunities in this market and as we've seen through the end of the first quarter compared to the end of last year, our backlog has increased in Las Vegas.

Jeff Seed: And as we've seen through the end of the first quarter compared to the end of last year, our backlog has increased in Las Vegas. And as far as T&D, with the weather issues that we mentioned earlier in our comments, we believe that there is strong demand for the services of our companies. And through the MSAs and also some fixed price work, we see this as a great opportunity to be able to have more projects in the T&D segment for Everest in the remainder of the year and beyond.

Speaker Change: And as far as T&D with the weather issues that we mentioned earlier in our comments.

Speaker Change: We believe that there is strong demand for the services of our companies.

Speaker Change: Through the Msas that also some fixed price work, we see this as a great opportunity to be able to have.

Jeff Thiede: We see this as great opportunity to be able to have more projects in the T&D segment for Everus in the remainder of the year and beyond.

Speaker Change: More projects in the T&D segment.

Speaker Change: Our efforts in the remainder of the year and beyond.

Ian Zaffino: Okay, thank you very much.

Operator: Okay. Thank you very much.

Ian Zaffino: Okay. Thank you very much.

Speaker Change: Okay. Thank you very much.

Quintin Helmer: Our next question comes from the line of Brian Brothy with Stifle. Your line is open. Hello, congrats on the quarter.

Operator: Our next question comes from the line of Brian Brophy with Stifel. Your line is opened.

Brian <unk>: Our next question comes from the line of Brian <unk> with Stifel. Your line is opened.

Quinten Helmer: Hello. Congrats on the quarter. This is Quinten Helmer on behalf of Brian Brophy with Stifel. Can you, can you talk about your capabilities in pharmaceutical manufacturing in the E&M segment and kinda touch on how you are thinking about opportunities in that part of the market? Thank you.

Quentin Helmer: Hello, Congrats on the quarter. This is Quentin helmer on behalf of Bryan <unk> with Stifel.

Quintin Helmer: This is Quintin Helmer on behalf of Brian Brophy with Stiefel. Can you talk about your capabilities in pharmaceutical manufacturing in the E&M segment and kind of touch on how you are thinking about opportunities in that part of the market? Thank you. Yes, great question. And it is one of the markets that we are focusing on to be able to deploy resources and position ourselves to grow. There's opportunity for us there. And as we look through organic growth, and we're positioned with our current companies and then also M&A that does fold into the mix of where we will geographically expand our services to align with markets that we see increasing opportunities and biopharmaceutical is one of those markets.

Quentin Helmer: Can you can you talk about your capabilities in pharmaceutical manufacturing in the E&S segment and kind of touch on how you are thinking about opportunities in that part of the market. Thank you.

Jeff Thiede: Yes, great question. It is one of the markets that we are focusing on to be able to deploy resources and position ourselves to grow. There's opportunity for us there. As we look through organic growth and where we're positioned with our current companies and then also M&A, that does fold into the mix of where we will geographically expand our services to align with markets that we see increasing opportunities. Biopharmaceutical is one of those markets.

Speaker Change: Yes, great question and it is one of the markets that we are focusing on to be able to deploy resources and position ourselves to grow theres opportunity for us there and as we look through organic growth and where we're positioned with our current.

Quentin Helmer: Companies and then also M&A that does fall into the mix of where we will geographically expand our services to align with markets that we see.

Quentin Helmer: Increasing opportunities and biopharmaceutical is one of those markets.

Quentin Helmer: Okay.

Quintin Helmer: Yeah, one follow up. Another question.

Quinten Helmer: Yeah, 1 follow-up, another question. Sorry, I was on mute. Kinda on the ongoing discussion on driver of LA wildfires, it sounds like there's an increased acknowledgement from the local utility on the involvement. Can you remind us the work you do in that region, whether you are seeing any near-term impact on spending there as a result, and kinda how we should be thinking about the longer-term opportunity there as well? Thank you.

Allison: One follow up another question, sorry, Allison mute kind.

Quintin Helmer: Sorry, I was on mute. Kind of an ongoing discussion on driver of LA wildfires. It sounds like there's an increased acknowledgement from the local utility on the involvement.

Allison: Ongoing discussion on driver of La wildfires to challenge sluggish and increased acknowledgment from the local utility on the involvement can you remind us. The work you do in that region, whether you are seeing any near term impact on spending gas result, and kind of how we should be thinking about the longer term opportunity there as well.

Jeff Seed: Can you remind us the work you do in that region, whether you are seeing any near term impact on spending there as a result and kind of how we should be thinking about the longer term opportunity there as well. Thank you.

Allison: Thank you.

Jeff Seed: Thank you for the question. We are very well positioned with a long history of success with this type of work on undergrounding, and we were able to help our customer and communities in the Palisades area in Southern California, and we've also renewed some MSAs with this longstanding customer, so it's an area of expertise for us. We've got great people, terrific safety record, and we will continue to pursue this work and have this complement our success.

Jeff Thiede: Thank you for the question. We are very well positioned with a long history of success with this type of work on undergrounding. We are able to help our customer and communities in the Palisades area in Southern California, and we've also renewed some MSAs with this long-standing customer. It's an area of expertise for us. We've got great people, terrific safety record, and we will continue to pursue this work and have this complement our success.

Allison: Thank you for the question, we are very well positioned with a long history of success with this type work on underground.

Allison: We were able to help our customer and communities and the Palisades area in Southern California, and we've also renewed some msas with this long standing customers. So that's an area of expertise for US we've got great people a terrific safety record.

Allison: We will continue to pursue this work and have this complement our success.

Chris Senek: Our next question comes from the line of Chris Senek with Wolf Research. Yeah. Hi, guys. Good morning. And really solid quarter. A couple questions.

Operator: Our next question comes from the line of Chris Senyek with Wolfe Research. Your line is opened.

Speaker Change: Our next question comes from the line up Chris <unk> with Wolfe Research. Your line is open.

Chris Senyek: Yeah. Hi, guys. Good morning, and really solid quarter. Couple questions. How should we be thinking about 2025 guidance in light of the strong Q1 revenue? I think if memory serves me, the Q1 tends to be a little bit softer seasonally. Was there some Q2 revenue that got pulled forward? How should we be thinking about the cadence of it quarterly? I know you don't give quarterly guidance, but just in helping us kinda thinking about the rest of the year.

Chris: Yes, hi, guys, good morning, and a really solid quarter.

Speaker Change: Couple of questions.

Matt: How should we be thinking about 2025 guidance in light of the strong first quarter revenue? And I think if memory serves me, the first quarter tends to be a little bit softer, seasonally. Was there some Q2 revenue that got pulled forward? How should we be thinking about the cadence of it quarterly? And I know you don't give quarterly guidance, but just in helping us kind of thinking about the rest of the year. Yes, we did have some pull forward to the first quarter. And you take a look at our forecast. It's early in the year.

Speaker Change: How should we be thinking about 2025 guidance in light of the strong first quarter revenue and I think if memory serves me the first quarter tends to be a little bit softer seasonally was there. Some Q2 revenue that got pulled forward how should we be thinking about the cadence of it quarterly.

Speaker Change: I know you don't give quarterly guidance, but just in helping us kind of thinking about the rest of the year.

Jeff Thiede: Yes, we did have some pull forward into Q1. If you take a look at our forecast, it's early in the year. We're very proud of what we've been able to produce in Q1. If you take a look at some of the macroeconomic uncertainties or some of the tariffs. We're working very closely with our customers and our business units. We will continue to do that through Q2 and provide that update in our next call.

Speaker Change: Yes, we did have some pull forward to the first quarter.

Speaker Change: We take a look at our forecast it's early in the year.

Matt: We're very proud of what we've been able to produce in the first quarter, you take a look at some of the macro economic uncertainties or some of the tariffs. But we're working very closely with our customers and our business units.

Speaker Change: Very proud of what we've been able to produce in the first quarter are you take a look at some of the macroeconomic uncertainties, where some of the tariffs, but we're working very closely with our customers and our business units.

Matt: And we will continue to do that through the second quarter and provide that update in our next call.

Speaker Change: We will continue to do that through second quarter and provide that update in our next call.

Matt: Okay, great. And then a separate question on tariffs. I don't know if you've really fully addressed it in the past, but what's the direct impact on tariffs to your business, particularly as it relates to the fixed price contracts? I know tariffs are clearly a moving target each day, but how should we be thinking about that?

Chris Senyek: Okay, great. A separate question on tariffs. I don't know if you've really fully addressed it in the past. What's the direct impact on tariffs to your business, particularly as it relates to the fixed price contracts? I know tariffs are clearly a moving target each day. How should we be thinking about that? Could we start to see some margin pressure as we get in the year if some of the components and other items do have price increases and other things that stick?

Speaker Change: Okay, Great and then a separate question on tariffs I don't know if you've really fully addressed it in the past, but what's the direct impact on tariffs to your business, particularly as it relates to the fixed price contracts I know tariffs are clearly a moving target each day, but how should it.

Speaker Change: Thinking about that.

Jeff Seed: Could we start to see some margin pressures we get in the year if some of the components and other items do have price increases and other things that stick? There's been a lot of noise in regards to tariffs, and we've received... letters from our suppliers almost every day on potential increases in prices and we're very proactive when it comes to procuring long-lead equipment and materials. We mitigate the potential exposure to tariffs by working closely with our suppliers and our business partners and we do secure specific pricing and availability in our quotes. We've really taken a look and analyzed our exposure on fixed price contracts in addition to cost plus and MSA contracts to identify if there are any issues that could impact our business.

Speaker Change: Could we start to see some margin pressure as we get in the year, if some of the components and other items.

Speaker Change: You have price increases and other things that stick.

Jeff Thiede: Yeah, there's been a lot of noise in regards to tariffs, and we've received letters from our suppliers almost every day on potential increases in prices. We're very proactive when it comes to procuring long lead equipment and materials. We mitigate the potential exposure to tariffs by working closely with our suppliers and our business partners, and we do secure specific pricing and availability in our quotes. We've really taken a look and analyzed our exposure on fixed price contracts in addition to cost plus and MSA contracts to identify if there are any issues that could impact our business. Because of our anticipatory proactive ability to procure these long lead equipment items, we believe we've mitigated that risk for our customers.

Speaker Change: And theres been a lot of noise regards to tariffs.

Speaker Change: We received.

Speaker Change: Letters from our suppliers almost every day on potential increases in prices, we're very proactive when it comes to procuring long lead equipment and materials, we mitigate the potential exposure to tariffs by working closely with our suppliers and our business partners and we do.

Speaker Change: Secure specific pricing and availability in our quotes we've really taken a look and analyzed our exposure on fixed price contracts. In addition to cost Boston MSA contracts to identify if there are any issues that could impact our business because of our anticipatory proactive ability to procure.

Jeff Seed: Because of our anticipatory proactive ability to procure these long-lead equipment items and we believe we've mitigated that risk for our customers.

Speaker Change: Sure. These long lead equipment items, and we believe we mitigated that risk for our customers. When there are any types of challenges we come up with solutions, whether it's an alternative product or it's a different means of method and this is what any examples of what we provide in our construct ability.

Jeff Seed: When there are any types of challenges we come up with whether it's an alternative product or it's a different means of method and this is one of the examples of what we provide in our constructability on these projects where our customers look to us as a partner. We also look to secure contractual terms that protect us as much as possible with regards to tariffs.

Jeff Thiede: When there are any types of challenges, we come up with solutions, whether it's an alternative product or it's a different means of method. This is one of the examples of what we provide in our constructability on these projects where our customers look to us as a partner. We also look to secure contractual terms that protect us as much as possible with regards to tariffs.

Speaker Change: On these projects for our customers look to us as a partner we also.

Speaker Change: Look to secure contractual terms.

Speaker Change: Protect us as much as possible with regards to tariffs.

Max: OK, thanks and then one question for Max in terms of corporate costs ran about 8 million in the fourth quarter. Is that a good number to think about as a run rate going forward? I know last year there was some incremental costs that might have been in there from the from the separation. Yeah, so on that number, so we maybe were a little light on some, you know, some some potential agreements that are coming up, you know, to stand up some of our some of our departments. So that'll that'll probably go up a little bit for the remainder of the year, you know, kind of getting us to, you know, holistically all in the numbers that we've been talking.

Chris Senyek: Okay, thanks. One question for Max. In terms of corporate costs, they ran about $8 million in Q1. Is that a good number to think about as a run rate going forward? I know last year there was some incremental costs that might have been in there from the, from the separation.

Speaker Change: Okay. Thanks, and then one question for Max in terms of corporate costs.

Speaker Change: Ran about $8 million in the fourth quarter is that a good number to think about as a run rate going forward.

Speaker Change: I know last year, there was some incremental costs that might have been in there from the from the separation.

Max Marcy: Yeah. On that number, so we maybe were a little light on some, you know, some potential agreements that are coming up, you know, to stand up some of our departments. That'll probably go up a little bit for the remainder of the year, you know, kind of getting us to, you know, holistically all in the numbers that we've been talking about. You won't see that $20 million on that line. The increase overall, between our insurance, which hits a different line, in that you'll see the $20 million in total. No change to the overall number.

Speaker Change: Yes so.

Speaker Change: So we might be were a little light on some.

Speaker Change: Some potential agreements that are coming up to standup some of our some of our department. So that will that will probably go up a little bit for the remainder of the year.

Speaker Change: And are getting us to.

Speaker Change: Ah Holistically all in the numbers that we've been talking about.

Max: So, you won't see that $20 million on that line, but the increase overall between our insurance, which hits a different line, and that, you'll see the $28 million in total. No change to the overall amount. Gotcha, but it sounds like Q1 might have been slightly soft relative to what we'll see the rest of the year, but it's different from the income statement. Yep, incrementally less, yes. Gotcha. Okay.

Speaker Change: So.

Speaker Change: You won't see that $20 million on that line.

Speaker Change: <unk>.

Speaker Change: But the increase overall between our insurance, which hits a different line and that Youll see obviously, the $28 million in total no change to the overall number.

Chris Senyek: Got you. It sounds like Q1 might have been slightly soft relative to what we'll see the rest of the year. It's different parts of the income statement.

Speaker Change: Got you so it sounds like Q1 might be slightly soft relative to what we'll see the rest of the year, but the incremental income statement.

Max Marcy: Yeah. Incrementally less, yes.

Speaker Change: Incrementally yes.

Chris Senyek: Got you. Okay. Fantastic. Thanks. Those were all my questions.

Speaker Change: Got you Okay fantastic. Thanks.

Max: Fantastic. Thanks. That's for all my questions. Thank you.

Speaker Change: Those were all my questions.

Jeff Thiede: Thank you.

Speaker Change: Thank you.

Ian: There are no further questions at this time.

Operator: There are no further questions at this time. I would like to hand things back to Jeff Thiede for closing remarks.

Speaker Change: There are no further questions at this time I would like to hand things back to Jeff Thiede for closing remarks.

Jeff Seed: I would like to hand things back to Jeff Deed for closing. Thank you, Operator, and thank you all again for joining us today. We are very excited about the opportunities ahead for Everest. We are confident we have the right strategy in place and the right team to execute on our plan. We will be attending several investor events during the quarter, including the Stiefel Cross-Sector Conference, the KeyBank Industrials and Basic Materials Conferences, and the J.P. Morgan Energy, Power, and Renewables Conference. If we are not able to connect during this quarter, we look forward to speaking with you at our next quarterly earnings call.

Jeff Thiede: Thank you, operator. Thank you all again for joining us today. We are very excited about the opportunities ahead for Everus. We are confident we have the right strategy in place and the right team to execute on our plan. We will be attending several investor events during the quarter, including the Stifel Cross Sector Insight Conference, the KeyBanc Industrials and Basic Materials Conferences, and the J.P. Morgan Energy, Power, Renewables & Mining Conference. If we are not able to connect during this quarter, we look forward to speaking with you on our next quarterly earnings call. Thank you for your time and interest in Everus. This concludes today's call.

Jeff Thiede: Thank you operator, and thank you all again for joining US today, we're very excited about the opportunities ahead for Everest. We are confident we have the right strategy in place and the right team to execute on our plan we.

Jeff Thiede: We will be attending several investor events during the quarter, including the Stifel Cross sector conference the Keybanc industrials and basic materials conferences, and the J P. Morgan energy power and renewables conference.

Jeff Thiede: We are not able to connect during this quarter. We look forward to speaking with you on our next quarterly earnings call.

Jeff Seed: Thank you for your time and interest in Everest.

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

Ian: This concludes today's call.

Jeff Thiede: [music].

Jeff Thiede: Okay.

Jeff Thiede: Sure.

Jeff Thiede: [music].

Jeff Thiede: Sure.

Jeff Thiede: [music].

Jeff Thiede: Okay.

Jeff Thiede: [music].

Jeff Thiede: Okay.

Jeff Thiede: Yes.

Jeff Thiede: [music].

Q1 2025 Everus Construction Group Inc Earnings Call

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