Q2 2025 Everus Construction Group Inc Earnings Call

Speaker #4: Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Everus second quarter 2025 earnings conference call.

Jordan: Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Everus second quarter 2025 earnings conference 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. Please limit yourself to one question. If you'd like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Paul Bartolai. You may begin.

Speaker #4: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Please limit yourself to one question.

Speaker #4: If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again.

Speaker #4: Thank you. I'd now like to turn the call over to Paul Bartley. You may begin.

Paul Bartolai: Thank you. Welcome to Everus Construction Group's Q2 2025 Results Conference Call. Leading the call today are CEO Jeff Thiede, and CFO Max Marcy. We issued a news release yesterday detailing our Q2 2025 operational and financial results.

Speaker #5: Thank you. Welcome to Everus Construction Group's second quarter 2025 results conference call. Leading the call today are CEO Jeff Feed and CFO Max Marci.

Paul Bartolai: Thank you. Welcome to Everus Construction Group, Inc.'s second quarter 2025 results conference call. Leading the call today are CEO Jeff Steed and CFO Max Marcy. We issued a news release yesterday detailing our second quarter 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 response to the question 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 findings with the SEC.

Speaker #5: We issued a news release yesterday detailing our second quarter 2025 operational and financial results. This release together with the accompanying presentation materials are publicly available on our website at investors dot everus dot com.

Paul Bartolai: 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. Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the news release issued yesterday and the appendix of today's presentation. Today's call will begin with prepared remarks from Jeff, who provided a review of our recent business performance, followed by a financial update from Max.

Paul Bartolai: 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. Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the news release issued yesterday and the appendix of today's presentation. Today's call will begin with prepared remarks from Jeff, who provided a review of our recent business performance, followed by a financial update from Max.

Speaker #6: 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.

Speaker #6: 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 #6: Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the news release issued yesterday and the appendix of today's presentation.

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

Speaker #6: 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.

Speaker #6: 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: At the conclusion of these prepared remarks, we'll open the line for your questions. With that, I'll turn the call over to Jeff. Thank you, Paul, good morning to everyone joining us on the call today. We are very excited to be with you all today as we report our Q2 2025 results. I will provide a brief overview of our results and highlight some of our key accomplishments against our strategic priorities before I turn it over to Max for his financial review. Beginning with Slide 4, I am very pleased with our results through the first half of the year, with our Q2 results further building on our strong Q1 start. Our Q2 revenue increased 31% driven by continued strength in our electrical and mechanical segment, as well as improved results in our transmission and distribution segment.

Paul Bartolai: At the conclusion of these prepared remarks, we'll open the line for your questions. With that, I'll turn the call over to Jeff.

Jeffrey S. Thiede: Thank you, Paul, good morning to everyone joining us on the call today. We are very excited to be with you all today as we report our Q2 2025 results. I will provide a brief overview of our results and highlight some of our key accomplishments against our strategic priorities before I turn it over to Max for his financial review. Beginning with Slide 4, I am very pleased with our results through the first half of the year, with our Q2 results further building on our strong Q1 start. Our Q2 revenue increased 31% driven by continued strength in our electrical and mechanical segment, as well as improved results in our transmission and distribution segment.

Speaker #7: Thank you, Paul. And good morning to everyone joining us on the call today. We are very excited to be with you all today as we report our second quarter 2025 results.

Jeff Steed: Thank you, Paul, and good morning to everyone joining us on the call today. We are very excited to be with you all today as we report our Q2 2025 results. I will provide a brief overview of our results and highlight some of our key accomplishments against our strategic priorities before I turn it over to Max for his financial review. Beginning with slide four, I am very pleased with our results through the first half of the year, with our Q2 results further building on our strong Q1 start. Our Q2 revenue increased 31%, driven by continued strength in our Electrical & Mechanical segment, as well as improved results in our Transmission & Distribution segment. I am very excited by the continued momentum across many of our key end markets, which positions us well for further strength in the coming quarters.

Speaker #7: I will provide a brief overview of our results and highlight some of our key accomplishments against our strategic priorities before I turn it over to Max for his financial review.

Speaker #7: Beginning with slide four, I am very pleased with our results through the first half of the year. With our second quarter results further building on our strong first quarter start, our second quarter revenue increased 31 percent, driven by continued strength in our electrical and mechanical segment, as well as improved results in our transmission and distribution segment.

Speaker #7: I am very excited by the continued momentum across many of our key end markets, which positions us well for further strength in the coming quarters.

Paul Bartolai: I am very excited by the continued momentum across many of our key end markets, which positions us well for further strength in the coming quarters. Our Q2 EBITDA increased 36% on strong revenue growth combined with solid execution by our team members across the organization. As a result, our EBITDA margins were up 30 basis points from last year. Our total backlog at the end of the Q2 was $3 billion, up 24% from the same period last year and up 7% from the end of 2024. We were particularly pleased with the balanced backlog growth across both E&M and T&D, as both segments posted solid 20%-plus growth relative to last year. We are excited by the strong momentum in our business and continue to see favorable trends driving our growth.

Jeffrey S. Thiede: I am very excited by the continued momentum across many of our key end markets, which positions us well for further strength in the coming quarters. Our Q2 EBITDA increased 36% on strong revenue growth combined with solid execution by our team members across the organization. As a result, our EBITDA margins were up 30 basis points from last year. Our total backlog at the end of the Q2 was $3 billion, up 24% from the same period last year and up 7% from the end of 2024. We were particularly pleased with the balanced backlog growth across both E&M and T&D, as both segments posted solid 20%-plus growth relative to last year. We are excited by the strong momentum in our business and continue to see favorable trends driving our growth.

Speaker #7: Our second quarter EBITDA increased 36 percent on strong revenue growth combined with solid execution by our team members across the organization. As a result, our EBITDA margins were up 30 basis points from last year.

Jeff Steed: Our Q2 EBITDA increased 36% on strong revenue growth, combined with solid execution by our team members across the organization. As a result, our EBITDA margins were up 30 basis points from last year. Our total backlog at the end of Q2 was $3 billion, up 24% from the same period last year, and up 7% from the end of 2024. We were particularly pleased with the balanced backlog growth across both E&M and T&D, as both segments posted solid 20% plus growth relative to last year. We are excited by the strong momentum in our business and continue to see favorable trends driving our growth. Our customers look to Everus as a trusted partner and count on us to perform even the most complex projects, giving us confidence that we are well positioned for continued backlog growth.

Speaker #7: Our total backlog at the end of the second quarter was 3 billion, up 24 percent from the same period last year, and up 7 percent from the end of 2024.

Speaker #7: We were particularly pleased with the balanced backlog growth across both E&M and T&D, as both segments posted solid growth of over 20 percent compared to last year.

Speaker #7: We are excited by the strong momentum in our business and continue to see favorable trends driving our growth. Our customers look to Everus as a trusted partner and count on us to perform even the most complex projects.

Paul Bartolai: Our customers look to Everus as a trusted partner and count on us to perform even the most complex projects, giving us confidence that we are well-positioned for continued backlog growth. We were particularly pleased with the favorable trends in our T&D business during the quarter, where our momentum continues to grow driven by strong spending plans of many of our key customers. We are seeing strength across the utility end market, notably in our underground submarket. We continue evaluating several opportunities in our pipeline. The need to upgrade and expand power transmission infrastructure in the US is clear given the projected load growth that is expected in the coming years. With our long-term customer relationships and track record of safety, efficiency, and project execution, we are well-positioned to succeed.

Jeffrey S. Thiede: Our customers look to Everus as a trusted partner and count on us to perform even the most complex projects, giving us confidence that we are well-positioned for continued backlog growth. We were particularly pleased with the favorable trends in our T&D business during the quarter, where our momentum continues to grow driven by strong spending plans of many of our key customers. We are seeing strength across the utility end market, notably in our underground submarket. We continue evaluating several opportunities in our pipeline. The need to upgrade and expand power transmission infrastructure in the US is clear given the projected load growth that is expected in the coming years. With our long-term customer relationships and track record of safety, efficiency, and project execution, we are well-positioned to succeed.

Speaker #7: Giving us confidence that we are well positioned for continued backlog growth. We were particularly pleased with the favorable trends in our T&D business during the quarter.

Jeff Steed: We were particularly pleased with the favorable trends in our T&D business during the quarter, where our momentum continues to grow, driven by strong spending plans of many of our key customers. We are seeing strength across the utility end market, notably in our underground submarket. We continue evaluating several opportunities in our pipeline. The need to upgrade and expand power transmission infrastructure in the U.S. is clear, given the projected loan growth that is expected in the coming years. With our long-term customer relationships and track record of safety, efficiency, and project execution, we are well positioned to succeed. We will remain disciplined as we approach some of the larger projects we are pursuing. We are excited about the outlook. As we look across the rest of our business, we continue to see favorable opportunities in most of our submarkets, including data center and hospitality.

Speaker #7: Where our momentum continues to grow, driven by strong spending plans of many of our key customers, we are seeing strength across the utility end market, notably in our underground sub-market.

Speaker #7: We continue evaluating several opportunities in our pipeline. The need to upgrade and expand power transmission infrastructure in the U.S. is clear, given the projected load growth that is expected in the coming years.

Speaker #7: And with our long-term customer relationships and track record of safety, efficiency, and project execution, we are well positioned to succeed. We will remain disciplined as we approach some of the larger projects we are pursuing.

Paul Bartolai: We will remain disciplined as we approach some of the larger projects we are pursuing, and we are excited about the outlook. As we look across the rest of our business, we continue to see favorable opportunities in most of our submarkets, including data center and hospitality. As it relates to data center work, our message remains the same. We continue to see very strong demand trends and have not seen any meaningful change in our customers' plans. We are deeply involved in the long-term planning with many of our key customers, giving us good visibility into the ongoing strength in the data center submarket. Our operating companies are positioned in key geographic locations, which puts us in a favorable position to take advantage of the attractive trends in the data center submarket.

Jeffrey S. Thiede: We will remain disciplined as we approach some of the larger projects we are pursuing, and we are excited about the outlook. As we look across the rest of our business, we continue to see favorable opportunities in most of our submarkets, including data center and hospitality. As it relates to data center work, our message remains the same. We continue to see very strong demand trends and have not seen any meaningful change in our customers' plans. We are deeply involved in the long-term planning with many of our key customers, giving us good visibility into the ongoing strength in the data center submarket. Our operating companies are positioned in key geographic locations, which puts us in a favorable position to take advantage of the attractive trends in the data center submarket.

Speaker #7: We are excited about the outlook. As we look across the rest of our business, we continue to see favorable opportunities in most of our sub-markets, including data center and hospitality.

Speaker #7: As it relates to data center work, our message remains the same: we continue to see very strong demand trends and have not seen any meaningful change in our customers' plans.

Jeff Steed: As it relates to data center work, our message remains the same. We continue to see very strong demand trends and have not seen any meaningful change in our customers' plans. We are deeply involved in the long-term planning with many of our key customers, giving us good visibility into the ongoing strength in the data center submarket. Our operating companies are positioned in key geographic locations, which puts us in a favorable position to take advantage of the attractive trends in the data center submarket. We remain well positioned as one of only a small handful of service providers with the track record, expertise, and people to successfully execute on these complex jobs. Now, let me shift gears a bit and provide a quick update on some of our key accomplishments during the quarter regarding our Forever strategy.

Speaker #7: We are deeply involved in the long-term planning with many of our key customers, giving us good visibility into the ongoing strength in the data center sub-market.

Speaker #7: Our operating companies are positioned in key geographic locations, which puts us in a favorable position to take advantage of the attractive trends in the data center sub-market.

Speaker #7: We remain well positioned as one of only a small handful of service providers with track record, expertise, and people to successfully execute on these complex jobs.

Paul Bartolai: We remain well-positioned as one of only a small handful of service providers with track record, expertise, and people to successfully execute on these complex jobs. Now, let me shift gears a bit and provide a quick update on some of our key accomplishments during the quarter regarding our 4EVER strategy. During Q2, 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 growth objectives and enabled us to generate more than $900 million in revenue during Q2 for the first time in our history. We had another quarter of excellent execution, which once again positively impacted results during the quarter. This is a direct reflection of our hardworking, highly skilled, and dedicated employees across the organization.

Jeffrey S. Thiede: We remain well-positioned as one of only a small handful of service providers with track record, expertise, and people to successfully execute on these complex jobs. Now, let me shift gears a bit and provide a quick update on some of our key accomplishments during the quarter regarding our 4EVER strategy. During Q2, 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 growth objectives and enabled us to generate more than $900 million in revenue during Q2 for the first time in our history. We had another quarter of excellent execution, which once again positively impacted results during the quarter. This is a direct reflection of our hardworking, highly skilled, and dedicated employees across the organization.

Speaker #7: Now, let me shift gears a bit and provide a quick update on some of our key accomplishments during the quarter regarding our forever strategy.

Speaker #7: During the second 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 growth objectives and enabled us to generate more than $900 million in revenue during the second quarter for the first time in our history.

Jeff Steed: During the second 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 growth objectives and enabled us to generate more than $900 million in revenue during the second quarter for the first time in our history. We had another quarter of excellent execution, which once again positively impacted the results during the quarter. This is a direct reflection of our hardworking, highly skilled, and dedicated employees across the organization. We had favorable variances and project pull forward across several large jobs that were spread across multiple end markets, highlighting the strength and depth of our team. Our focus on project selection, getting discipline, training, safety, and execution are core to everything we do.

Speaker #7: We had another quarter of excellent execution, which once again positively impacted results during the quarter. This is a direct reflection of our hardworking, highly skilled, and dedicated employees across the organization.

Speaker #7: We had favorable variances in project pull-forward across several large jobs that were spread across multiple end markets, highlighting the strength and depth of our team.

Paul Bartolai: We had favorable variances and project pull forward across several large jobs that were spread across multiple end markets, highlighting the strength and depth of our team. Our focus on project selection, bidding discipline, training, safety, and execution are core to everything we do. We are extremely proud of our track record of superior execution and work every day to maintain our success. 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% compounded annually, which combined with our discipline focus and operational excellence should drive EBITDA growth of 7% to 9% on a compound annual basis.

Jeffrey S. Thiede: We had favorable variances and project pull forward across several large jobs that were spread across multiple end markets, highlighting the strength and depth of our team. Our focus on project selection, bidding discipline, training, safety, and execution are core to everything we do. We are extremely proud of our track record of superior execution and work every day to maintain our success. 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% compounded annually, which combined with our discipline focus and operational excellence should drive EBITDA growth of 7% to 9% on a compound annual basis.

Speaker #7: Our focus on project selection, bidding discipline, training, safety, and execution are core to everything we do. We are extremely proud of our track record of superior execution and work every day to maintain our success.

Jeff Steed: We are extremely proud of our track record of superior execution and work every day to maintain our success. As we highlight on slide eight 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% compounded annually, which, combined with our discipline focus and operational excellence, should drive EBITDA growth of 7% to 9% on a compound annual basis. We are confident, based on the strength of our recent results, favorable backlog trends, and high performance of our team, that we will remain on track to successfully execute on our long-term financial targets, delivering more than our long-term framework in 2025, driving value for our shareholders. With that, I will turn it over to Max.

Speaker #7: As we highlight on slide eight 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 percent compounded annually.

Speaker #7: Which, combined with our disciplined focus and operational excellence, should drive EBITDA growth of 7 to 9 percent on a compound annual basis. We are confident, based on the strength of our recent results, favorable backlog trends, and high performance of our team, that we will remain on track to successfully execute our long-term financial targets.

Paul Bartolai: We are confident, based on the strength of our recent results, favorable backlog trends, and high performance of our team, that we will remain on track to successfully execute on our long-term financial targets, delivering more than our long-term framework in 2025, driving value for our shareholders. 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 equity and balance sheet, and wrap up with some details on our guidance. Beginning on Slide 10 in today's presentation, revenues for the Q2 of 2025 were $921.5 million, an increase of 31% compared to the same period last year. The increase was driven by growth in both segments, with E&M revenue increasing 42% and T&D up 3%.

Jeffrey S. Thiede: We are confident, based on the strength of our recent results, favorable backlog trends, and high performance of our team, that we will remain on track to successfully execute on our long-term financial targets, delivering more than our long-term framework in 2025, driving value for our shareholders. With that, I'll turn it over to Max.

Speaker #7: Delivering more than our long-term framework in 2025, driving value for our shareholders. With that, I'll turn it over to Max. Thank you, Jeff, and good morning, everyone.

Max Marcy: Thank you, Jeff, and good morning, everyone. I will provide additional details on the quarter, give an update on our equity and balance sheet, and wrap up with some details on our guidance. Beginning on Slide 10 in today's presentation, revenues for the Q2 of 2025 were $921.5 million, an increase of 31% compared to the same period last year. The increase was driven by growth in both segments, with E&M revenue increasing 42% and T&D up 3%.

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 details on our guidance. Beginning on slide 10 in today's presentation, revenues for the second quarter of 2025 were $921.5 million, an increase of 31% compared to the same period last year. The increase was driven by growth in both segments, with Electrical & Mechanical (E&M) revenue increasing 42% and Transmission & Distribution (T&D) up 3%.

Speaker #7: I will provide additional details on the quarter, give an update on our liquidity and balance sheet, and wrap up with some details on our guidance.

Speaker #7: Beginning on slide ten in today's presentation, revenues for the second quarter of 2025 were $921.5 million, an increase of 31 percent compared to the same period last year.

Speaker #7: The increase was driven by growth in both segments, with E&M revenue increasing 42 percent and T&D up 3 percent. Total EBITDA was 84.2 million dollars during the second quarter, an increase of 36 percent 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.

Paul Bartolai: Total EBITDA was $84.2 million during the Q2, an increase of 36% 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, including continued strong project execution on a number of projects that we completed, which will not likely repeat in the second half of the year. Our standup costs continue to trend in line with our expectation for full-year run-rate incremental costs of $28 million. As a result, our Q2 EBITDA margin was 9.1%, up from 8.8% in the prior year period. At 30 June, total backlog was $3 billion, up 24% from 30 June 2024. We saw solid year-over-year growth in both of our segments, with E&M backlog up 24% from the prior year period and T&D up 21%.

Max Marcy: Total EBITDA was $84.2 million during the Q2, an increase of 36% 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, including continued strong project execution on a number of projects that we completed, which will not likely repeat in the second half of the year. Our standup costs continue to trend in line with our expectation for full-year run-rate incremental costs of $28 million. As a result, our Q2 EBITDA margin was 9.1%, up from 8.8% in the prior year period. At 30 June, total backlog was $3 billion, up 24% from 30 June 2024. We saw solid year-over-year growth in both of our segments, with E&M backlog up 24% from the prior year period and T&D up 21%.

Max Marcy: Total EBITDA was $84.2 million during the second quarter, an increase of 36% from the same period last year that was driven by solid revenue growth and increases in segment-level margins in both Electrical & Mechanical (E&M) and Transmission & Distribution (T&D), including continued strong project execution on a number of projects that we completed, which will not likely repeat in the second half of the year. Our standup costs continue to trend in line with our expectation for full-year run rate incremental costs of $28 million. As a result, our second quarter EBITDA margin was 9.1%, up from 8.8% in the prior year period. At June 30th, total backlog was $3 billion, up 24% from June 30th of 2024. We saw solid year-over-year growth in both of our segments, with Electrical & Mechanical (E&M) backlog up 24% from the prior year period and Transmission & Distribution (T&D) up 21%.

Speaker #7: Including continued strong project execution on a number of projects that we completed which will not likely repeat in the second half of the year.

Speaker #7: Our standup costs continue to trend in line with our expectation for full year run rate incremental costs of $28 million. As a result, our second quarter EBITDA margin was 9.1 percent, up from 8.8 percent in the prior year period.

Speaker #7: As of June 30th, total backlog was $3 billion, up 24 percent from June 30th of 2024. We saw solid year-over-year growth in both of our segments, with E&M backlog up 24 percent from the prior year period and T&D up 21 percent.

Speaker #7: While data center work was once again a key driver, we continue to see solid growth in several key sub-markets, highlighting the diversity in our business.

Paul Bartolai: While data center work was once again a key driver, we continue to see solid growth in several key submarkets, highlighting the diversity in our business. Given the current mix of our backlog, which includes some larger multi-year projects, many of which are just getting started, our backlog conversion may be extended relative to our historical pattern in the coming quarters. Our backlog at the end of the Q2 was down modestly from our record Q1 levels. As we have previously discussed, our backlog can be lumpy quarter to quarter. In addition, our Q2 revenues were at record levels and up nearly $100 million from the Q1. It is also worth noting that we have several larger projects that are either in the pre-construction phase or early stages of construction. These large projects generally don't have the full scope of work in backlog at these early stages.

Max Marcy: While data center work was once again a key driver, we continue to see solid growth in several key submarkets, highlighting the diversity in our business. Given the current mix of our backlog, which includes some larger multi-year projects, many of which are just getting started, our backlog conversion may be extended relative to our historical pattern in the coming quarters. Our backlog at the end of the Q2 was down modestly from our record Q1 levels. As we have previously discussed, our backlog can be lumpy quarter to quarter. In addition, our Q2 revenues were at record levels and up nearly $100 million from the Q1. It is also worth noting that we have several larger projects that are either in the pre-construction phase or early stages of construction. These large projects generally don't have the full scope of work in backlog at these early stages.

Max Marcy: While data center work was once again a key driver, we continue to see solid growth in several key submarkets, highlighting the diversity in our business. Given the current mix of our backlog, which includes some larger multi-year projects, many of which are just getting started, our backlog conversion may be extended relative to our historical pattern in the coming quarters. Our backlog at the end of the second quarter was down modestly from our record first quarter levels, but as we have previously discussed, our backlog can be lumpy quarter to quarter. In addition, our second quarter revenues were at record levels and up nearly $100 million from the first quarter.

Speaker #7: Given the current mix of our backlog, which includes some larger multi-year projects, many of which are just getting started, our backlog conversion may be extended relative to our historical pattern in the coming quarters.

Speaker #7: Our backlog at the end of the second quarter was down modestly from our record first quarter levels. However, as we have previously discussed, our backlog can be lumpy quarter to quarter.

Speaker #7: In addition, our second-quarter revenues were at record levels, and up nearly $100 million from the first quarter. It is also worth noting that we have several larger projects that are either in the pre-construction phase or early stages of construction, and these large projects generally don't have the full scope of work in backlog at these early stages.

Max Marcy: It is also worth noting that we have several larger projects that are either in the pre-construction phase or early stages of construction, and these large projects generally don't have the full scope of work in backlog at these early stages. This is all to say, given the number of early-stage large projects, combined with our strong competitive positioning and favorable demand drivers, we remain confident in our ability to generate continued backlog growth. Now, turning to our segment results, let us first look at E&M, where our second quarter revenues increased 42% to $713.6 million. The increase was driven by growth across key submarkets, with data center once again a key driver. Our E&M EBITDA was $63.7 million in the second quarter, up from $41.5 million in the same period last year, or an increase of 53%.

Speaker #7: This is all to say, given the number of early stage large projects combined with our strong competitive positioning and favorable demand drivers, we remain confident in our ability to generate continued backlog growth.

Paul Bartolai: This is all to say, given the number of early-stage large projects, combined with our strong competitive positioning and favorable demand drivers, we remain confident in our ability to generate continued backlog growth. Now, turning to our segment results, let's first look at E&M, where our Q2 revenues increased 42% to $713.6 million. The increase was driven by growth across key submarkets, with data center once again a key driver. Our E&M EBITDA was $63.7 million in the Q2, up from $41.5 million in the same period last year, or an increase of 53%. The increase was driven by higher revenues and higher gross profit margin due to project timing pull forward and efficiency gains on certain projects as they came to a close, partially offset by changes in project mix and higher SG&A expenses.

Max Marcy: This is all to say, given the number of early-stage large projects, combined with our strong competitive positioning and favorable demand drivers, we remain confident in our ability to generate continued backlog growth. Now, turning to our segment results, let's first look at E&M, where our Q2 revenues increased 42% to $713.6 million. The increase was driven by growth across key submarkets, with data center once again a key driver. Our E&M EBITDA was $63.7 million in the Q2, up from $41.5 million in the same period last year, or an increase of 53%. The increase was driven by higher revenues and higher gross profit margin due to project timing pull forward and efficiency gains on certain projects as they came to a close, partially offset by changes in project mix and higher SG&A expenses.

Speaker #7: Now, turning to our segment results, let's first look at E&M, where our second quarter revenues increased 42 percent to $733.6 million. The increase was driven by growth across key sub-markets, with data center once again a key driver.

Speaker #7: Our E&M EBITDA was 63.7 million dollars in the second quarter, up from 41.5 million dollars in the same period last year, or an increase of 53 percent.

Speaker #7: The increase was driven by higher revenues and a higher gross profit margin due to project timing pull-forward and efficiency gains on certain projects as they came to a close.

Max Marcy: The increase was driven by higher revenues and higher gross profit margin due to project timing pull forward and efficiency gains on certain projects as they came to a close, partially offset by changes in project mix and higher SG&A expenses. As a result, our E&M segment EBITDA margin was 8.9%, up 70 basis points compared to 8.2% in the second quarter of 2024. Our second quarter T&D revenues were $212.4 million, up from $206.8 million last year, an increase of 3% driven by growth in both the transportation and utility end markets. The transportation end market experienced higher workloads in the traffic signalization submarket, while the utility end market had increased activity in a number of submarkets with underground activity leading the way.

Speaker #7: Partially offset by changes in project mix and higher SG&A expenses. As a result, our E&M segment EBITDA margin was 8.9 percent, up 70 basis points compared to 8.2 percent in the second quarter of 2024.

Paul Bartolai: As a result, our E&M segment EBITDA margin was 8.9%, up 70 basis points compared to 8.2% in the Q2 of 2024. Our Q2 T&D revenues were $212.4 million, up from $206.8 million last year, an increase of 3% driven by growth in both the transportation and utility end markets. The transportation end market experienced higher workloads in the traffic signalization submarket, while the utility end market had increased activity in a number of submarkets, with underground activity leading the way. T&D segment EBITDA increased 19% to $30.4 million in the Q2, driven primarily by the increase in revenues together with higher gross profit margin due to project mix and solid project execution. As a result, T&D segment EBITDA margin was 14.3%, up 200 basis points compared to 12.3% in the same period last year. Turning now to our balance sheet and liquidity.

Max Marcy: As a result, our E&M segment EBITDA margin was 8.9%, up 70 basis points compared to 8.2% in the Q2 of 2024. Our Q2 T&D revenues were $212.4 million, up from $206.8 million last year, an increase of 3% driven by growth in both the transportation and utility end markets. The transportation end market experienced higher workloads in the traffic signalization submarket, while the utility end market had increased activity in a number of submarkets, with underground activity leading the way. T&D segment EBITDA increased 19% to $30.4 million in the Q2, driven primarily by the increase in revenues together with higher gross profit margin due to project mix and solid project execution. As a result, T&D segment EBITDA margin was 14.3%, up 200 basis points compared to 12.3% in the same period last year. Turning now to our balance sheet and liquidity.

Speaker #7: Our second quarter T&D revenues were $212.4 million dollars, up from $206.8 million last year, an increase of 3 percent driven by growth in both the transportation and utility end markets.

Speaker #7: The transportation end market experienced higher workloads in the traffic signalization sub-market, while the utility end market had increased activity in a number of sub-markets with underground activity leading the way.

Speaker #7: T&D segment EBITDA increased 19 percent to $30.4 million in the second quarter, driven primarily by the increase in revenues, together with a higher gross profit margin due to project mix and solid project execution.

Max Marcy: T&D segment EBITDA increased 19% to $30.4 million in the second quarter, driven primarily by the increase in revenues, together with higher gross profit margin due to project mix and solid project execution. As a result, T&D segment EBITDA margin was 14.3%, up 200 basis points compared to 12.3% in the same period last year. Turning now to our balance sheet and liquidity. As of June 30th, we had $64.5 million unrestricted cash and cash equivalents, $292.5 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 12-month EBITDA, was approximately 0.8 times. CapEx was $31.6 million during the first half of 2025, up from $16.5 million in the first half last year.

Speaker #7: As a result, T&D segment EBITDA margin was 14.3 percent, up 200 basis points compared to 12.3 percent in the same period last year. Turning now to our balance sheet and liquidity.

Speaker #7: As of June 30th, we had 64.5 million dollars unrestricted cash and cash equivalents. $292.5 million dollars of gross debt, and $209.4 million dollars available under the credit facility, net of 15.6 million of standby letters of credit.

Paul Bartolai: As of 30 June, we had $64.5 million unrestricted cash and cash equivalents, $292.5 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 12-month EBITDA, was approximately 0.8 times. CapEx was $31.6 million during the first half of 2025, up from $16.5 million in the first half last year. The increase in CapEx reflects our strategy to increase investments that support our organic growth, including the purchase of our new prefab facility that we discussed last quarter, as well as additional vehicles and equipment purchases in T&D to support the growth of our business.

Max Marcy: As of 30 June, we had $64.5 million unrestricted cash and cash equivalents, $292.5 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 12-month EBITDA, was approximately 0.8 times. CapEx was $31.6 million during the first half of 2025, up from $16.5 million in the first half last year. The increase in CapEx reflects our strategy to increase investments that support our organic growth, including the purchase of our new prefab facility that we discussed last quarter, as well as additional vehicles and equipment purchases in T&D to support the growth of our business.

Speaker #7: Net leverage defined as net debt to trillion 12-month EBITDA was approximately 0.8 times. CapEx was 31.6 million dollars during the first half of 2025.

Speaker #7: Up from $16.5 million in the first half last year, the increase in CapEx reflects our strategy to increase investments that support our organic growth, including the purchase of our new prefab facility that we discussed last quarter.

Max Marcy: The increase in CapEx reflects our strategy to increase investments that support our organic growth, including the purchase of our new prefab facility that we discussed last quarter, as well as additional vehicles and equipment purchases in T&D to support the growth of our business. Wrapping up with guidance, we are very pleased with our strong first half results, which reflect the attractive demand drivers in our business and our strong competitive positioning, as well as excellent project execution and the pull forward of revenues and profits on certain projects. Based on these factors, combined with our project mix and expected project cadence for the second half of the year, we are raising our 2025 guidance.

Speaker #7: As well as additional vehicles and equipment purchases in T&D to support the growth of our business. Wrapping up with guidance, we are very pleased with our strong first half results.

Paul Bartolai: Wrapping up with guidance, we are very pleased with our strong first-half results, which reflect the attractive demand drivers in our business and our strong competitive positioning, as well as excellent project execution and the pull forward of revenues and profits on certain projects. Based on these factors, combined with our project mix and expected project cadence for the second half of the year, we are raising our 2025 guidance. We are now forecasting revenues in the range of $3.3 to $3.4 billion, which is up from the prior range of $3 to $3.1 billion, and EBITDA in the range of $240 million to $255 million, up from $210 to $225 million previously. At the midpoint of our updated range, our revenue and EBITDA forecasts represent growth of 18 and 21% adjusted for the incremental standalone costs versus last year.

Max Marcy: Wrapping up with guidance, we are very pleased with our strong first-half results, which reflect the attractive demand drivers in our business and our strong competitive positioning, as well as excellent project execution and the pull forward of revenues and profits on certain projects. Based on these factors, combined with our project mix and expected project cadence for the second half of the year, we are raising our 2025 guidance. We are now forecasting revenues in the range of $3.3 to $3.4 billion, which is up from the prior range of $3 to $3.1 billion, and EBITDA in the range of $240 million to $255 million, up from $210 to $225 million previously. At the midpoint of our updated range, our revenue and EBITDA forecasts represent growth of 18 and 21% adjusted for the incremental standalone costs versus last year.

Speaker #7: This reflects the attractive demand drivers in our business and our strong competitive positioning, as well as excellent project execution and the pull-forward of revenues and profits on certain projects.

Speaker #7: Based on these factors, combined with our project mix and expected project cadence for the second half of the year, we are raising our 2025 guidance.

Speaker #7: We are now forecasting revenues in the range of $3.3 billion to $3.4 billion, which is up from the prior range of $3 billion to $3.1 billion.

Max Marcy: We are now forecasting revenues in the range of $3.3 billion to $3.4 billion, which is up from the prior range of $3 billion to $3.1 billion, and EBITDA in the range of $240 million to $255 million, up from $210 million to $225 million previously. At the midpoint of our updated range, our revenue and EBITDA forecasts represent growth of 18% and 21% adjusted for the incremental standalone costs versus last year. Before wrapping up, I want to provide some additional color as it relates to our outlook for the balance of this year. As we have already discussed, we have benefited from some very strong execution during fiscal 2025. While we always strive to outperform our projected margins, there were several projects where we recognized meaningful upside in the first half.

Speaker #7: An EBITDA in the range of $240 million to $255 million, up from $210 million to $225 million previously. At the midpoint of our updated range, our revenue and EBITDA forecasts represent growth of 18% and 21%, adjusted for the incremental standalone costs versus last year.

Speaker #7: Before wrapping up, I want to provide some additional color as it relates to our outlook for the balance of this year. As we have already discussed, we have benefited from some very strong execution during fiscal 2025.

Paul Bartolai: Before wrapping up, I want to provide some additional color as it relates to our outlook for the balance of this year. As we have already discussed, we have benefited from some very strong execution during Fiscal 2025. While we always strive to outperform our projected margins, there were several projects where we recognized meaningful upside in the first half. If you adjust for the strong execution that has benefited our results this year, our margins have been relatively consistent in the low to mid-7% range over the past several quarters. We expect this trend to continue for the remainder of the year on solid revenue. Additionally, we will be executing on a higher mix of large jobs that are in the engineering phase or in the early stages of construction during the back half of the year.

Max Marcy: Before wrapping up, I want to provide some additional color as it relates to our outlook for the balance of this year. As we have already discussed, we have benefited from some very strong execution during Fiscal 2025. While we always strive to outperform our projected margins, there were several projects where we recognized meaningful upside in the first half. If you adjust for the strong execution that has benefited our results this year, our margins have been relatively consistent in the low to mid-7% range over the past several quarters. We expect this trend to continue for the remainder of the year on solid revenue. Additionally, we will be executing on a higher mix of large jobs that are in the engineering phase or in the early stages of construction during the back half of the year.

Speaker #7: While we always strive to outperform our projected margins, there were several projects where we recognized meaningful upside in the first half. If you adjust for the strong execution that has benefited our results this year, our margins have been relatively consistent in the low to mid 7 percent range over the past several quarters.

Max Marcy: If you adjust for the strong execution that has benefited our results this year, our margins have been relatively consistent in the low to mid-7% range over the past several quarters. We expect this trend to continue for the remainder of the year on solid revenue. Additionally, we will be executing on a higher mix of large jobs that are in the engineering phase or in the early stages of construction during the back half of the year. This makes it more difficult to predict how our workflow will ramp up over the next couple of quarters, which impacts our margin visibility. Furthermore, given we were able to pull some jobs forward in the early part of this year at the request of our clients, we had work that was originally slated for the second half that was completed early.

Speaker #7: We expect this trend to continue for the remainder of the year on solid revenue. Additionally, we will be executing on a higher mix of large jobs that are in the engineering phase or in the early stages of construction during the back half of the year.

Speaker #7: This makes it more difficult to predict how our workflow will ramp up over the next couple of quarters, which impacts our margin visibility. Furthermore, given we were able to pull some jobs forward in the early part of this year, at the request of our clients, we had work that was originally planned for the second half that was completed early.

Paul Bartolai: This makes it more difficult to predict how our workflow will ramp up over the next couple of quarters, which impacts our margin visibility. Furthermore, given we were able to pull some jobs forward in the early part of this year at the request of our clients, we had work that was originally slated for the second half that was completed early. We are working on lining up schedules as we ramp new projects and finalize opportunities with book and burn work, but the timing is tough to predict. Another result of having a higher mix of projects in the early stages is that there are fewer opportunities for significant execution upside in the near term. We are focused on continuing our strong execution and see the potential for additional upside as these jobs progress.

Max Marcy: This makes it more difficult to predict how our workflow will ramp up over the next couple of quarters, which impacts our margin visibility. Furthermore, given we were able to pull some jobs forward in the early part of this year at the request of our clients, we had work that was originally slated for the second half that was completed early. We are working on lining up schedules as we ramp new projects and finalize opportunities with book and burn work, but the timing is tough to predict. Another result of having a higher mix of projects in the early stages is that there are fewer opportunities for significant execution upside in the near term. We are focused on continuing our strong execution and see the potential for additional upside as these jobs progress.

Speaker #7: We are working on lining up schedules as we ramp new projects and finalize opportunities with book and burn work, but the timing is tough to predict.

Max Marcy: We are working on lining up schedules as we ramp new projects and finalize opportunities with book and burn work, but the timing is tough to predict. Another result of having a higher mix of projects in the early stages is that there are fewer opportunities for significant execution upside in the near term. We are focused on continuing our strong execution and see the potential for additional upside as these jobs progress. This will likely be more of a 2026 event as it relates to these projects that are just getting underway. All of this is to say that while we are encouraged by the trends in our core markets and excited by the momentum in our business and backlog growth, there are several factors impacting the outlook for the second half of the year relative to the first half.

Speaker #7: Another result of having a higher mix of projects in the early stages is that there are fewer opportunities for significant execution upside in the near term.

Speaker #7: We are focused on continuing our strong execution and see the potential for additional upside as these jobs progress. This will likely be more of a 2026 event, as it relates to these projects that are just getting underway.

Paul Bartolai: This will likely be more of a 2026 event as it relates to these projects that are just getting underway. Again, all of this is to say that while we are encouraged by the trends in our core markets and excited by the momentum in our business and backlog growth, there are several factors impacting the outlook for the second half of the year relative to the first half. This is nothing more than a timing issue, which is very typical for a business like ours, and we remain confident in our outlook and our ability to deliver on our long-term financial targets. That completes our preparatory remarks. Operator, we are now ready for the question-and-answer portion of our call. Just as a reminder, if you'd like to ask a question, press star followed by 1 on your telephone keypad. Just one moment while we compile the Q&A roster.

Max Marcy: This will likely be more of a 2026 event as it relates to these projects that are just getting underway. Again, all of this is to say that while we are encouraged by the trends in our core markets and excited by the momentum in our business and backlog growth, there are several factors impacting the outlook for the second half of the year relative to the first half. This is nothing more than a timing issue, which is very typical for a business like ours, and we remain confident in our outlook and our ability to deliver on our long-term financial targets. That completes our preparatory remarks. Operator, we are now ready for the question-and-answer portion of our call.

Speaker #7: Again, all of this is to say that while we are encouraged by the trends in our core markets and excited by the momentum in our business and backlog growth, there are several factors impacting the outlook for the second half of the year relative to the first half.

Speaker #7: This is nothing more than a timing issue, which is very typical for a business like ours. And we remain confident in our outlook and our ability to deliver on our long-term financial targets.

Max Marcy: This is nothing more than a timing issue, which is very typical for a business like ours, and we remain confident in our outlook and our ability to deliver on our long-term financial targets. That completes our prepared remarks. Operator, we are now ready for the question and answer portion of our call.

Speaker #7: That completes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call.

Operator: Just as a reminder, if you'd like to ask a question, press star followed by 1 on your telephone keypad. Just one moment while we compile the Q&A roster.

Speaker #8: Just as a reminder, if you'd like to ask a question, press star followed by one on your telephone keypad. Just one moment while we compile the Q&A roster.

Jordan: Just as a reminder, if you would like to ask a question, press star followed by one on your telephone keypad. Just one moment while we compile the Q&A roster. Your first question comes from the line of Brent Thielman from DA Davidson. Your line is live.

Speaker #8: Your first question comes from the line of Brent Fieldman from DA Davidson. Your line is live.

Paul Bartolai: Your first question comes from the line of Brent Thielman from D.A. Davidson. Your line is live. Hey, thanks. Good morning. Congrats on a really strong quarter. Yeah, I mean, I guess my question would be, just considering the success you've had in hiring that you mentioned, Jeff Thiede, through the quarter, and your capability to kind of pull forward some of these projects that you mentioned, maybe if you could just talk about, I guess, your capability going forward to continue to convert the backlog at the rate, you know, you'd experienced here through the first half and/or, you know, be able to fill some of these holes with, you know, kind of more book and burn work. Just be curious around that. Thank you. Yeah, timing's key, Brent.

Operator: Your first question comes from the line of Brent Thielman from D.A. Davidson. Your line is live.

Brent Thielman: Hey, thanks. Good morning. Congrats on a really strong quarter. Yeah, I mean, I guess my question would be, just considering the success you've had in hiring that you mentioned, Jeff Thiede, through the quarter, and your capability to kind of pull forward some of these projects that you mentioned, maybe if you could just talk about, I guess, your capability going forward to continue to convert the backlog at the rate, you know, you'd experienced here through the first half and/or, you know, be able to fill some of these holes with, you know, kind of more book and burn work. Just be curious around that. Thank you.

Speaker #9: Hey, thanks. Good morning. Congrats on a really strong quarter. Yeah, actually, I mean, I guess my question would be, just considering the success you've had in hiring that you mentioned, Jeff, through the quarter, and in your capability to kind of pull forward some of these projects that you mentioned.

Brent Thielman: Hey, thanks. Good morning. Congrats on a really strong quarter. Yeah, I mean, I guess my question would be, just considering the success you have had in hiring that you mentioned, Jeff, through the quarter and your capability to kind of pull forward some of these projects that you mentioned, maybe if you could just talk about, I guess, your capability going forward to continue to convert the backlog at the rate you had experienced here through the first half and/or be able to fill some of these holes with kind of more book and burn work. Just be curious around that. Thank you.

Speaker #9: Maybe if you could just talk about, I guess, your capability going forward to continue to convert the backlog at the rate you experienced here through the first half and, you know, be able to fill some of these holes with, you know, kind of more book-and-burn work. Just be curious around that.

Speaker #9: Thank you.

Jeffrey S. Thiede: Yeah, timing's key, Brent.

Speaker #7: Yeah, timing's key, Brent, and we get on these projects early and, become an extension of the design team, providing a constructability review, so sometimes those pre-construction phases are shorter.

Jeff Steed: Yeah, timing is key, Brent. We get on these projects early and become an extension of the design team, providing our constructability reviews. The subtitles of preconstruction phases are shorter, therefore we get moving quicker than anticipated. That is what happened in the second quarter as far as the pull forward work, which resulted in record revenues for our company. We are always looking at planning our resources and allocating resources and staying ahead so we can continue to build our business, support our growth, and also anticipate where we have to add headcount. We are at record employment today, and we will continue to add people, train people, and support the continued growth. The timing is key on these projects.

Paul Bartolai: We get on these projects early and become an extension of the design team providing our constructability reviews. Sometimes those pre-construction phases are shorter, and therefore we get moving quicker than anticipated. That's what happened in Q2 as far as the pull forward work, which resulted in record revenues for our company. We're always looking at planning our resources and allocating resources and staying ahead so we can continue to build our business, support our growth, and also anticipate where we have to add headcount. We're at record employment today, and we'll continue to add people, train people, and support the continued growth. Timing is key on these projects. Sometimes they're difficult to anticipate, but we're well-positioned. We're partners on many of our projects, especially the large-scale projects, and we think this is a strength of our business.

Jeffrey S. Thiede: We get on these projects early and become an extension of the design team providing our constructability reviews. Sometimes those pre-construction phases are shorter, and therefore we get moving quicker than anticipated. That's what happened in Q2 as far as the pull forward work, which resulted in record revenues for our company. We're always looking at planning our resources and allocating resources and staying ahead so we can continue to build our business, support our growth, and also anticipate where we have to add headcount. We're at record employment today, and we'll continue to add people, train people, and support the continued growth. Timing is key on these projects. Sometimes they're difficult to anticipate, but we're well-positioned. We're partners on many of our projects, especially the large-scale projects, and we think this is a strength of our business.

Speaker #7: and therefore, we, get moving quicker in anticipated, and and that's what happened in the second quarter as far as the pull-forward work, which resulted in record revenues for our company.

Speaker #7: We're always looking at planning our resources and allocating resources and staying ahead so we can continue to build our business, support our growth, and also anticipate where we have to add headcount.

Speaker #7: And we're at record employment today, and we'll continue to add people, train people, and support the continued growth. The timing is key on these projects.

Speaker #7: Sometimes they're difficult to anticipate, but we're well positioned. We're partners on many of our projects, especially the large-scale projects, and we think this is a strength of our business.

Jeff Steed: Sometimes they are difficult to anticipate, but we are well positioned. We are partners on many of our projects, especially the large-scale projects, and we think this is a strength of our business.

Speaker #8: Okay, thank you. Your next question comes from the line of Ian Zaffino from Oppenheimer. Your line is live.

Paul Bartolai: Okay. Thank you. Your next question comes from the line of Ian Zaffino from Oppenheimer. Your line is live. Hi, great. I just wanted to ask, you know, if I could just squeeze in two here. you know, I know you called out weather last quarter, but not this quarter. I was wondering if there was a weather impact at all in T&D. Also, in commercial, can you talk about hospitality and how that did, and what's sort of the outlook for that? I know we had a little bit of a trough previously. Are we coming out of that, and when do we start to see some contribution from hospitality? Thanks. Yeah, well, first part of your question on weather, we didn't really have any weather impacts in the Q2.

Brent Thielman: Okay. Thank you.

Brent Thielman: Okay, thank you.

Operator: Your next question comes from the line of Ian Zaffino from Oppenheimer. Your line is live.

Jordan: Your next question comes from the line of Ian Zaffino from Oppenheimer. Your line is live.

Ian zaffino: Hi, great. I just wanted to ask, you know, if I could just squeeze in two here. you know, I know you called out weather last quarter, but not this quarter. I was wondering if there was a weather impact at all in T&D. Also, in commercial, can you talk about hospitality and how that did, and what's sort of the outlook for that? I know we had a little bit of a trough previously. Are we coming out of that, and when do we start to see some contribution from hospitality? Thanks.

Speaker #10: Hi, I agree. I just wanted to ask, you know, if I could just squeeze in two here. You know, I know you called out weather last quarter, but not this quarter.

Brent Thielman: Hi, great. I just wanted to ask, if I could just squeeze in two here. I know you called that weather last quarter, but not this quarter. I was wondering if there was a weather impact at all in T&D. Also in commercial, can you talk about hospitality and how that did and what is sort of the outlook for that? I know we had a little bit of a trough previously. Are we coming out of that, and when do we start to see some contribution from hospitality? Thanks.

Speaker #10: So I was wondering if there was a weather impact at all, in T&D. and then also, in commercial, can you talk about hospitality and how that did, and and what's sort of the outlook for that?

Speaker #10: I know we had a little bit of a trough previously. Are we coming out of that? And when do we start to see some contribution from the hospitality?

Speaker #10: Thanks.

Jeffrey S. Thiede: Yeah, well, first part of your question on weather, we didn't really have any weather impacts in the Q2.

Speaker #7: Yeah, well, the first part of your question on weather, and we didn't really have any weather impacts in the in the second quarter. And, and Las Vegas, hospitality work, you know, we saw an uptick in our our backlog.

Jeff Steed: Well, the first part of your question on weather, we didn't really have any weather impacts in Q2. In Las Vegas, hospitality work, we saw an uptick in our backlog. We've got four great companies in Las Vegas. We do electrical, low voltage, mechanical plumbing, HVAC, fire protection, underground services. So we are very well positioned with a fantastic reputation to be able to execute large complex projects in Vegas. We've seen an uptick. We haven't seen a return to 2022, 2023, where we had a robust construction on major projects where we were very successful. Nevertheless, with the reputation we have, the experience, and the relationships, we continue to be well positioned to capture this work.

Paul Bartolai: Las Vegas, hospitality work, you know, we saw an uptick in our backlog. We've got four great companies in Las Vegas. We do the electrical, low voltage, mechanical plumbing, HVAC, fire protection, and underground services. We are very well-positioned with a fantastic reputation to be able to execute large, complex projects in Vegas. We've seen an uptick. We haven't seen it return to 2022, 2023, where we had robust construction on major projects where we were very successful. Nevertheless, with the reputation we have, the experience, and the relationships, you know, we continue to be well-positioned to capture this work. Okay. Thank you very much. Your next question comes from the line of Peter Englert from Wolfe Research. Your line is live. Hey, guys. This is Peter on for, Chris Sinnick. Thanks for taking the question, and congrats on the strong quarter.

Jeffrey S. Thiede: Las Vegas, hospitality work, you know, we saw an uptick in our backlog. We've got four great companies in Las Vegas. We do the electrical, low voltage, mechanical plumbing, HVAC, fire protection, and underground services. We are very well-positioned with a fantastic reputation to be able to execute large, complex projects in Vegas. We've seen an uptick. We haven't seen it return to 2022, 2023, where we had robust construction on major projects where we were very successful. Nevertheless, with the reputation we have, the experience, and the relationships, you know, we continue to be well-positioned to capture this work.

Speaker #7: We've got four great companies in Las Vegas. We do the electrical, low voltage, mechanical plumbing, HVAC. Fire protection underground services. So we are very well positioned with a fantastic reputation to be able to execute large complex projects in Vegas.

Speaker #7: So we've seen an uptick. We haven't seen it return to 2022, 2023, where we had a robust construction on major projects where we were very successful.

Speaker #7: Nevertheless, with the reputation we have, the experience, and the relationships, we continue to be well positioned to capture this work.

Ian zaffino: Okay. Thank you very much.

Speaker #10: Okay, thank you very much.

Brent Thielman: Okay, thank you very much.

Operator: Your next question comes from the line of Peter Englert from Wolfe Research. Your line is live.

Speaker #8: Your next question comes from the line of Peter Englert from Wolf Research. Your line is live.

Jordan: Your next question comes from the line of Peter Englert from Wolf Research. Your line is live.

Peter Englert: Hey, guys. This is Peter on for, Chris Sinnick. Thanks for taking the question, and congrats on the strong quarter.

Speaker #11: Hey, guys. This is Peter on for Chris Cynic. Thanks for taking the question and congrats on the strong quarter. So, you guys noted that gross margins have benefited from efficiency gains this quarter.

Paul Bartolai: Hey guys, this is Peter on for Chris Cinnick. Thanks for taking the question and congrats on the strong quarter. You guys noted that gross margins benefited from efficiency gains this quarter. To what extent were those tied to the prefab investments you have made versus factors like project execution or mix? How should we be thinking about the sustainability of those going in the back half of the year? Thanks.

Paul Bartolai: You guys noted that gross margins benefited from efficiency gains this quarter. To what extent were those tied to the prefab investment you've made, versus factors like project execution or mix, and how should we be thinking about the sustainability of those kind of going in the back half of the year? Thanks. You know, prefab certainly does help with our companies being able to execute. It also helps with us getting work. Our customers come into our prefab facilities and give us feedback. The feedback's very positive. Yet we never rest on our laurels when it comes to prefab, offsite manufacturing. We get the benefit of safety, of course, in production, being in a controlled environment. It also helps with reducing congestion on our job sites. Not only helps us, but it helps other trades.

Peter Englert: You guys noted that gross margins benefited from efficiency gains this quarter. To what extent were those tied to the prefab investment you've made, versus factors like project execution or mix, and how should we be thinking about the sustainability of those kind of going in the back half of the year?

Speaker #11: To what extent were those tied to the prefab investments you've made versus factors like project execution or mix? And how should we be thinking about the sustainability of those kinds of factors going into the back half of the year?

Speaker #11: Thanks.

Jeffrey S. Thiede: Thanks. You know, prefab certainly does help with our companies being able to execute. It also helps with us getting work. Our customers come into our prefab facilities and give us feedback. The feedback's very positive. Yet we never rest on our laurels when it comes to prefab, offsite manufacturing. We get the benefit of safety, of course, in production, being in a controlled environment. It also helps with reducing congestion on our job sites. Not only helps us, but it helps other trades.

Speaker #7: Yeah, prefab certainly does help with our company's meal and execute. It also helps with us getting work. Our customers come into our prefab facilities and give us feedback.

Jeff Steed: Prefab certainly does help with our companies being able to execute. It also helps with us getting work. Our customers come into our prefab facilities and give us feedback. The feedback is very positive, yet we never rest on our laurels when it comes to prefab offsite manufacturing. We get the benefit of safety, of course, in production, being in a controlled environment. It also helps with reducing congestion on our job sites. Not only helps us, but it helps other trades. It also gives us an advantage to be able to bring those schedules in and get those projects delivered sooner. We established this prefab initiative many years ago, and we have vastly improved our processes and our output to support the production and the safety and schedule, as I just mentioned. We are going to continue to invest in prefab facilities with our operating companies last quarter.

Speaker #7: And and the feedback's very positive. Yet we never rest on our laurels when it comes to, prefab offsite manufacturing. But we get the benefit of safety, of course, and production, being in a controlled environment.

Speaker #7: It also helps reduce congestion on our job sites. Not only does it help us, but it also assists other trades. Additionally, it gives us an advantage by allowing us to manage those schedules more effectively and get those projects delivered sooner.

Paul Bartolai: Also gives us an advantage to be able to bring those schedules in and get those projects delivered sooner. We established this prefab initiative many years ago, and we've vastly improved our processes and our output to support the production and the safety and schedule, as I just mentioned. We're going to continue to invest in prefab facilities with our operating companies last quarter. Max's opening comments referred to the expansion of our prefab in the Midwest. We go through our strategic planning process with our operating companies to be able to support prefab. It is a contributing factor. The other factors are planning, executing, procurement, and then delivery of production safely in the field. Our teams are really good at that. We can't always forecast for write-ups at upside, but we drive towards that.

Jeffrey S. Thiede: Also gives us an advantage to be able to bring those schedules in and get those projects delivered sooner. We established this prefab initiative many years ago, and we've vastly improved our processes and our output to support the production and the safety and schedule, as I just mentioned. We're going to continue to invest in prefab facilities with our operating companies last quarter. Max's opening comments referred to the expansion of our prefab in the Midwest. We go through our strategic planning process with our operating companies to be able to support prefab. It is a contributing factor. The other factors are planning, executing, procurement, and then delivery of production safely in the field. Our teams are really good at that. We can't always forecast for write-ups at upside, but we drive towards that.

Speaker #7: And we've established this prefab initiative many years ago, and we've vastly improved our processes and our output to support the production, safety, and schedule, as I just mentioned.

Speaker #7: We're going to continue to invest in prefab facilities with our operating companies. Last quarter, in Max's opening comments, we referred to the expansion of our prefab in the Midwest.

Jeff Steed: Max Marcy's opening comments referred to the expansion of our prefab in the Midwest. We go through our strategic planning process with our operating companies to be able to support prefab. It is a contributing factor. The other factors are planning, executing, procurement, and then delivery of production safely in the field. Our teams are really good at that. We cannot always forecast for write-ups at offsite, but we drive towards that. We will continue to have that goal of margin uplift on our projects going forward.

Speaker #7: We go through, our strategic planning process with our operating companies to be able to support prefab. And, it is a contributing factor. The other factors are, planning, executing, procurement, and and then delivery of, production safely in the field.

Speaker #7: And, our teams are really good at that. We can't always forecast for write-ups at upside, but, we derive towards that. And we'll continue to, have that goal of margin uplift on our projects going forward.

Paul Bartolai: We'll continue to have that goal of margin uplift on our projects going forward. Your next question comes from the line of Brian Brophy from Stifel Financial Corp. Your line is live. Yeah, thanks. Good morning, everybody. Congrats on the nice quarter. Just a question on book-to-bill. Obviously, it was a little bit below 1 this quarter. Is there anything notable to call out that's driving? Are you seeing any sort of change in the demand environment outside of data centers, or is this more of a reflection of lumpiness of awards? Thanks. I think, Brian, it's more of a reflection of the lumpiness of our backlog. We're very close to where we ended up on the prior quarter as far as our backlog. We had pull forward, and that contributed to record revenue for the quarter.

Paul Bartolai: We'll continue to have that goal of margin uplift on our projects going forward.

Operator: Your next question comes from the line of Brian Brophy from Stifel Financial Corp. Your line is live.

Speaker #8: Your next question comes from the line of Brian Brophy from Speedful Financial Corp. Your line is live.

Jordan: Your next question comes from the line of Brian Brophy from Stifel Financial Corp. Your line is live.

Brian Brophy: Yeah, thanks. Good morning, everybody. Congrats on the nice quarter. Just a question on book-to-bill. Obviously, it was a little bit below 1 this quarter. Is there anything notable to call out that's driving? Are you seeing any sort of change in the demand environment outside of data centers, or is this more of a reflection of lumpiness of awards? Thanks.

Speaker #9: Yeah, thanks. Good morning, everybody. Congrats on the nice quarter. Just a question on book-to-bill. Obviously, it was a little bit below 1 this quarter.

Brent Thielman: Yeah, thanks. Good morning, everybody. Congrats on the nice quarter. Just a question on book to bill. Obviously, it was a little bit below one this quarter. Is there anything notable to call out that is driving? Are you seeing any sort of change in the demand environment outside of data centers, or is this more a reflection of lumpiness of awards? Thanks.

Speaker #9: Is there anything notable to call out that's driving, are you seeing any sort of change in the demand environment outside of data centers, or is this more of a reflection of lumpiness of awards?

Speaker #9: Thanks.

Jeffrey S. Thiede: I think, Brian, it's more of a reflection of the lumpiness of our backlog. We're very close to where we ended up on the prior quarter as far as our backlog. We had pull forward, and that contributed to record revenue for the quarter.

Speaker #7: I think Brian's, more of a reflection of the the lumpiness of our our backlog. And we're very close to where we ended up on the prior quarter as far as our backlog.

Jeff Steed: I think, Brian, it is more of a reflection of the lumpiness of our backlog. We are very close to where we ended up on the prior quarter as far as our backlog. We had pull forward, and that contributed to record revenue for the quarter. Q2 is our second largest backlog in our history and was a Q2 record. It is timing and project positioning, it is resource availability. If you take a look at our year-to-date book to bill, it is 1.1. We are really excited about our ability to be able to get additional backlog to be able to support our growth.

Speaker #7: We had pull forward, and that contributed to record revenue for the quarter. Q2 is our second largest backlog in our history and was a Q2 record.

Paul Bartolai: Q2 is our second largest backlog in our history and was a Q2 record. It's timing. It's project positioning. It's resource availability. If you take a look at our year-to-date book-to-bill, it's 1.1. We're really excited about our ability to be able to get additional backlog to be able to support our growth. Thanks. That's helpful. In some of your opening comments, you mentioned some activity around large projects in T&D, which seems kind of a unique change of trend relative to historical. I guess just any more color on what you're seeing from a large project perspective on the T&D side. Thanks. Yeah, we're bidding on projects in the T&D space all the time.

Jeffrey S. Thiede: Q2 is our second largest backlog in our history and was a Q2 record. It's timing. It's project positioning. It's resource availability. If you take a look at our year-to-date book-to-bill, it's 1.1. We're really excited about our ability to be able to get additional backlog to be able to support our growth.

Speaker #7: So, it's timing and project positioning. It's resource availability. And if you take a look at our year-to-date book to bill, it's 1.1. So, we're really excited about our ability to be able to get additional backlog to be able to support our growth.

Brian Brophy: Thanks. That's helpful. In some of your opening comments, you mentioned some activity around large projects in T&D, which seems kind of a unique change of trend relative to historical. I guess just any more color on what you're seeing from a large project perspective on the T&D side. Thanks.

Speaker #9: Thanks. That's helpful. And then, in some of your opening comments, you mentioned some activity around large projects in T&D, which seems kind of a unique change of trend relative to historical.

Brent Thielman: Thanks. That is helpful. In some of your opening comments, you mentioned some activity around large projects in T&D, which seems kind of a unique change of trend relative to historical. I guess just any more color on what you are seeing from a large project perspective on the T&D side. Thanks.

Speaker #9: I guess just any more color on what you're seeing from a large project perspective on the T&D side. Thanks.

Jeffrey S. Thiede: Yeah, we're bidding on projects in the T&D space all the time.

Speaker #7: Yeah, we're bidding on projects in the T&D space all the time, and we always go through a disciplined project selection process. We look for those opportunities that are a good fit.

Jeff Steed: We are bidding on projects in the T&D space all the time, and we always go through a disciplined project selection process. We look for those opportunities that are a good fit for our teams and our talent, and we are very selective in the types of projects that we pursue. Of course, it comes down to resource availability and timing. We have an excellent reputation to be able to deliver underground and above-ground distribution and transmission. Our T&D segment is a very important part of our business. We see backlog growth in the quarter and the opportunity to be able to execute and be able to build upon the T&D segment of our business.

Paul Bartolai: We always go through a disciplined project selection process, and we look for those opportunities that are a good fit for our teams and our talent. We're very selective in the types of projects that we pursue. Of course, it comes down to resource availability and timing. We have an excellent reputation to be able to deliver underground and above-ground distribution and transmission. Our T&D segment is a very important part of our business. We see backlog growth in the quarter and the opportunity to be able to execute and be able to build upon the T&D segment of our business. Thanks. Then just thinking about growth rates in the back half, by each segment, anything notable to call out as we should think about adjusting our models, electromechanical versus T&D, from a growth perspective in the back half? Thanks.

Jeffrey S. Thiede: We always go through a disciplined project selection process, and we look for those opportunities that are a good fit for our teams and our talent. We're very selective in the types of projects that we pursue. Of course, it comes down to resource availability and timing. We have an excellent reputation to be able to deliver underground and above-ground distribution and transmission. Our T&D segment is a very important part of our business. We see backlog growth in the quarter and the opportunity to be able to execute and be able to build upon the T&D segment of our business.

Speaker #7: For our teams, and our talent. And we're very selective in the types of projects that we that we pursue. And, of course, it comes down to resource availability and timing.

Speaker #7: We have an excellent reputation to be able to deliver underground and above ground distribution and transmission. And our T&D segment is very important part of our business.

Speaker #7: we see backlog growth in the in the quarter, and the opportunity to be able to execute and be able to build upon the T&D segment of our business.

Brian Brophy: Thanks. Then just thinking about growth rates in the back half, by each segment, anything notable to call out as we should think about adjusting our models, electromechanical versus T&D, from a growth perspective in the back half? Thanks.

Speaker #9: Thanks. And then, just thinking about growth rates in the back half, by each segment, is there anything notable to call out that we should consider adjusting in our models for electromechanical versus T&D, from a growth perspective in the back half?

Brent Thielman: Thanks. Thinking about growth rates in the back half by each segment, anything notable to call out as we think about adjusting our models, Electrical & Mechanical versus Transmission & Distribution from a growth perspective in the back half? Thanks.

Speaker #9: Thanks.

Speaker #7: Yeah, Brian, this is Max. so, you know, I think if you think about the growth rates you've experienced thus far this year, right, I think we've had, you know, some pull forward.

Paul Bartolai: Yeah, Brian, this is Max. You know, I think if you think about the growth rates we have experienced thus far this year, I think we have had some pull forward. I think we have had some good solid growth rates. I think based on our guidance in the back half of the year, you could see maybe those growth rates would be tempered. I think that was kind of always, we always had a very soft first half in 2024. So we have tougher comps as we go forward here. Some of that pull forward will cause the growth rates to be a little bit down. I would say, on balance, you should see T&D to continue at about the rates that it has, with E&M probably maybe growing outside of the T&D.

Paul Bartolai: Yeah, Brian. This is Max. You know, I think if you think about the growth rates we've experienced thus far this year, right, I think we've had, you know, some pull forward. I think we've had some good solid growth rates. I think, based on our guidance in the back half of the year, you could see maybe those growth rates would be tempered. I think that was kind of always we always had a very soft first half in 2024. We have, you know, tougher comps as we go forward here. Some of that pull forward will cause the growth rates to be a little bit down.

Max Marcy: Yeah, Brian. This is Max. You know, I think if you think about the growth rates we've experienced thus far this year, right, I think we've had, you know, some pull forward. I think we've had some good solid growth rates. I think, based on our guidance in the back half of the year, you could see maybe those growth rates would be tempered. I think that was kind of always we always had a very soft first half in 2024. We have, you know, tougher comps as we go forward here. Some of that pull forward will cause the growth rates to be a little bit down.

Speaker #7: So, I think we've had some good solid growth rates. I think based on our guidance in the back half of the year, you could see maybe those growth rates would be tempered.

Speaker #7: I think that was kind of always we always had a a very soft first half in 2024. So we have, you know, tougher comps as we go forward here.

Speaker #7: So, some of that some of that pull forward will cause the growth rates to be a little bit down. I I would say, you know, on on balance, you should see T&D to continue at a in about the rates that it that it has.

Paul Bartolai: I would say, you know, on balance, you should see T&D to continue at a you know, about the rates that it has with E&M probably maybe growing outside of the T&D. That's really helpful. I'll pass it on. Thanks, guys. Your final question comes from the line of Brent Thielman from D.A. Davidson. Your line is live. Hey, thanks, guys. Hey, Jeff, maybe just, kind of bigger picture, several months now since the spend and being a public company, you know you're hiring at corporate. Maybe you could just talk about, you know, the pipeline you may be cultivating. I know inorganic growth was one part of the, you know, kind of equation as we look out a few years. How's that pipeline look? You know, any sort of sense for when we can start to see transactions pick up?

Max Marcy: I would say, you know, on balance, you should see T&D to continue at a you know, about the rates that it has with E&M probably maybe growing outside of the T&D.

Speaker #7: With E&M probably maybe growing outside of the T&D.

Brian Brophy: That's really helpful. I'll pass it on. Thanks, guys.

Speaker #9: That's really helpful. I'll pass it on. Thanks, guys.

Brent Thielman: That's really helpful. I'll pass it on. Thanks, guys.

Operator: Your final question comes from the line of Brent Thielman from D.A. Davidson. Your line is live.

Speaker #8: Your final question comes from the line of Brent Fieldman from BA Davidson. Your line is live.

Jordan: Your final question comes from the line of Brent Thielman from DA Davidson. Your line is live.

Brent Thielman: Hey, thanks, guys. Hey, Jeff, maybe just, kind of bigger picture, several months now since the spend and being a public company, you know you're hiring at corporate. Maybe you could just talk about, you know, the pipeline you may be cultivating. I know inorganic growth was one part of the, you know, kind of equation as we look out a few years. How's that pipeline look? You know, any sort of sense for when we can start to see transactions pick up?

Speaker #11: Hey, thanks, guys. Hey, Jeff, maybe just, kind of bigger picture, several months now since the spend and being at a public company. No, you're no, you're hiring a corporate.

Brent Thielman: Hey, thanks, guys. Hey, Jeff, maybe just kind of a bigger picture, several months now since the spin and being a public company. I know you are hiring at corporate. Maybe you could just talk about the pipeline you may be cultivating. I know inorganic growth was one part of the equation as we look out a few years. How does that pipeline look? And any sort of sense for when we can start to see transactions pick up?

Speaker #11: Maybe you could just talk about, you know, the pipeline you may be cultivating. I know inorganic growth was one part of the, you know, kind of equation as we look out a few years.

Speaker #11: How's that pipeline look, and do you have any sort of sense for when we can start to see transactions pick up?

Speaker #7: Yeah, as far as our corporate team, we're very proud of building this team and being able to stand on our own as a publicly traded company.

Jeff Steed: Yeah, as far as our corporate team, we are very proud of building this team and being able to stand on our own as a public-faced company. It has gone very, very well. The team is very talented, a lot of experience, and we have had a lot of success and good talent. As far as pipeline for M&A, we are looking at quite a few opportunities. We have an expansion of our opportunity list, and that is largely due to the hiring of Tim Snevis to join Everus as a Vice President of Corporate Development and Strategy. We are excited about his expertise, his reputation, and track record. That is going to help us continue to look for companies that have high integrity, get awarded work due to best value, have a commitment to safety and operations, and are respected within their communities.

Paul Bartolai: Yeah, as far as our corporate team, we're very proud of building this team and being able to stand on our own as a public traded company. It's gone very well. The team is very talented. They have a lot of experience. We've got a lot of success and good tailwind. As far as pipeline for M&A, we're looking at quite a few opportunities. We have an expansion of our opportunity list, and that's largely due to the hiring of Tim Sznewajs who joined Everus as Vice President of Corporate Development and Strategy. We're excited about his expertise, his reputation, and track record. That's going to help us continue to look for companies that have high integrity, get awarded work due to best value, have a commitment to safety and operations, and are respected within their communities.

Jeffrey S. Thiede: Yeah, as far as our corporate team, we're very proud of building this team and being able to stand on our own as a public traded company. It's gone very well. The team is very talented. They have a lot of experience. We've got a lot of success and good tailwind. As far as pipeline for M&A, we're looking at quite a few opportunities. We have an expansion of our opportunity list, and that's largely due to the hiring of Tim Sznewajs who joined Everus as Vice President of Corporate Development and Strategy. We're excited about his expertise, his reputation, and track record. That's going to help us continue to look for companies that have high integrity, get awarded work due to best value, have a commitment to safety and operations, and are respected within their communities.

Speaker #7: It's gone very, very well. The team is very talented. They've got a lot of experience, and we've had a lot of success and good tailwinds.

Speaker #7: As far as the pipeline for M&A, we're looking at quite a few opportunities. We have an expansion of our opportunity list, and that's largely due to the hiring of Tim Snevise, who joined Everus as a Vice President of Corporate Development and Strategy.

Speaker #7: We're excited about his expertise, his reputation, and track record, and that's going to help us continue to look for companies that have high integrity and get awarded work due to best value, as well as a commitment to safety and operations.

Speaker #7: And our respect within their communities. So we see a lot of opportunities out there, and we're pursuing the best ones that fit our company to give us the geographic expansion that we're looking for.

Paul Bartolai: We see a lot of opportunities out there, and we're pursuing the best ones that fit our company to give us the geographic expansion that we're looking for. Yeah. I think I just said, Brent Thielman, you know, obviously, our leverage, you know, continues to tick down as we grow our revenue and our EBITDA. We want to find the right opportunity, right? We're focused on growing this business and expanding this business. You know, if we find the right opportunity for inorganic growth, you know, we'll take a look at that. We definitely see good opportunities to continue to grow this business organically, and continue to add to our backlog, in the operating companies and the geographies that we currently operate. Okay.

Jeff Steed: We see a lot of opportunities out there, and we are pursuing the best ones that fit our company to give us the geographic expansion that we are looking for.

Jeffrey S. Thiede: We see a lot of opportunities out there, and we're pursuing the best ones that fit our company to give us the geographic expansion that we're looking for.

Max Marcy: Yeah. I think I just said, Brent Thielman, you know, obviously, our leverage, you know, continues to tick down as we grow our revenue and our EBITDA. We want to find the right opportunity, right? We're focused on growing this business and expanding this business. You know, if we find the right opportunity for inorganic growth, you know, we'll take a look at that. We definitely see good opportunities to continue to grow this business organically, and continue to add to our backlog, in the operating companies and the geographies that we currently operate. Okay.

Speaker #7: Yeah.

Paul Bartolai: I think I just said, Brent, you know, obviously our leverage continues to tick down as we grow our revenue and our EBITDA. But we want to find the right opportunity, right? So we are focused on growing this business and expanding this business. If we find the right opportunity for inorganic growth, we will take a look at that. But we definitely see good opportunities to continue to grow this business organically and continue to add to our backlog in the operating companies and the geographies that we currently operate.

Speaker #11: I I think I I just said, Brent, you know, obviously our our leverage, you know, continues to to tick down as we as we grow our our revenue and our EBITDA.

Speaker #11: But we want to find the right opportunity, right? So we're focused on growing this business and expanding this business. And, you know, if we find the right opportunity for inorganic growth, we'll take a look at that.

Speaker #11: But we definitely see good opportunities to continue to grow this business organically and continue to add to our backlog in the operating companies and the geographies that we currently operate.

Speaker #11: Okay. Max, maybe if I could sneak one more on a question on cash flow, like, you know, just kind of looking back and stick way through the first half, you've got some commitment and working capital, I presumably for these projects.

Brent Thielman: Okay. Max, maybe if I could sneak one more on the question on cash flow. You know, looking back, typically through the first half, you've got some commitment in working capital, presumably for these projects. I was just trying to think about, as you're ramping up still on some of these larger projects, do we think that's a drain on your cash flow in the second half? Are you still feeling pretty good about your ability to convert more cash here as you work through the second half of the year?

Paul Bartolai: Max, maybe if I could sneak one more on a question on cash flow. I, you know, it's kind of looking back and typically through the first half, you've got some commitment and working capital, presumably, for these projects. I was just trying to think about, you know, as you're ramping up still on some of these larger projects, should we think that's a drain on your cash flow in the second half, or are you still feeling pretty good about, your ability to convert more cash here as we work through the second half of the year? We're still feeling pretty good about our ability to convert cash in the back half of the year. I think some of these projects are getting started, and that's part of the increase in working capital, into the Q2 here.

Brent Thielman: Max, maybe if I could sneak one more on a question on cash flow. I, you know, it's kind of looking back and typically through the first half, you've got some commitment and working capital, presumably, for these projects. I was just trying to think about, you know, as you're ramping up still on some of these larger projects, should we think that's a drain on your cash flow in the second half, or are you still feeling pretty good about, your ability to convert more cash here as we work through the second half of the year?

Speaker #11: And I was just trying to think about, you know, as you're ramping up still on some of these larger projects, should we think that's a drain on your cash flow in the second half?

Speaker #11: Are you still feeling pretty good about your ability to convert more cash here as we work through the second half of the year?

Max Marcy: We're still feeling pretty good about our ability to convert cash in the back half of the year. I think some of these projects are getting started, and that's part of the increase in working capital, into the Q2 here.

Speaker #7: We're still feeling pretty good about our ability to convert cash in the back half of the year. I think some of these projects are getting started, and that's part of the increase in working capital.

Paul Bartolai: are still feeling pretty good about our ability to convert cash in the back half of the year. I think some of these projects are getting started, and that is part of the increase in working capital into the second quarter here. As those projects get ramped, build, I think we feel good about our ability to continue to generate cash. I think our free cash flow is pretty consistent with historical patterns first and second quarter. Obviously, we saw a nice change from first to second. We feel pretty good as the year is going to progress here.

Speaker #7: Into the second quarter here. So, you know, as those projects get ramped up and built, I think we feel good about our ability to continue to generate cash.

Paul Bartolai: You know, as those projects get ramped, build, I think we feel good about our ability to continue to generate cash. I think, you know, our free cash flow is pretty consistent with historical patterns, Q1 and Q2. Obviously, we saw a nice change from first to second. We feel pretty good as the year's going to progress here. Yep. Okay. Hey, thanks, guys. That concludes the Q&A session. I'd now like to turn it the call back over to Jeff Thiede for closing remarks. Thank you, operator. Thank you all again for joining us today. We are very excited about the opportunities ahead for Everus and are confident that we have the right strategy in place and the right team to execute on our plan.

Max Marcy: You know, as those projects get ramped, build, I think we feel good about our ability to continue to generate cash. I think, you know, our free cash flow is pretty consistent with historical patterns, Q1 and Q2. Obviously, we saw a nice change from first to second. We feel pretty good as the year's going to progress here.

Speaker #7: I think our free cash flow is pretty consistent with historical patterns for the first and second quarters. Obviously, we saw a nice change from the first to the second.

Speaker #7: So, we feel pretty good as the year is going to progress here.

Brent Thielman: Yep. Okay. Hey, thanks, guys.

Speaker #9: Yep.

Brent Thielman: Yep. Okay. Hey, thanks, guys.

Speaker #11: Okay. Hey, thanks, guys.

Operator: That concludes the Q&A session. I'd now like to turn it the call back over to Jeff Thiede for closing remarks.

Speaker #8: That concludes the Q&A session. I'd now like to turn the call back over to Jeff Feed for closing remarks.

Jordan: That concludes the Q&A session. I would now like to turn the call back over to Jeff Steed for closing remarks.

Jeffrey S. Thiede: Thank you, operator. Thank you all again for joining us today. We are very excited about the opportunities ahead for Everus and are confident that we have the right strategy in place and the right team to execute on our plan.

Speaker #7: Thank you, operator. And thank you all again for joining us today. We are very excited about the opportunities ahead for Everus, and we are confident that we have the right strategy in place, and the right team to execute on our plan.

Jeff Steed: Thank you, Operator. Thank you all again for joining us today. We are very excited about the opportunities ahead for Everus Construction Group, Inc. and are confident that 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 DA Davidson Diversified Industrial and Services Conference in Nashville during September. If we are not able to connect during the quarter, we look forward to speaking with you on our next quarterly earnings call. Thank you for your time and interest in Everus Construction Group, Inc. This concludes today's call.

Speaker #7: We will be attending several investor events during the quarter, including the DA Davidson Diversified Industrial and Services Conference in Nashville during September. If we are not able to connect during the quarter, we look forward to speaking with you on our next quarterly earnings call.

Paul Bartolai: We will be attending several investor events during the quarter, including the D.A. Davidson Diversified Industrials and Services Conference in Nashville during September. If we are not able to connect during the 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. This concludes the meeting. You may now disconnect.

Jeffrey S. Thiede: We will be attending several investor events during the quarter, including the D.A. Davidson Diversified Industrials and Services Conference in Nashville during September. If we are not able to connect during the quarter, we look forward to speaking with you on our next quarterly earnings call. Thank you for your time and interest in Everus.

Speaker #7: Thank you for your time and interest in Everus. This concludes today's call.

Operator: This concludes today's call. This concludes the meeting. You may now disconnect.

Jordan: This concludes the meeting. You may now disconnect.