Everus Construction Group, Inc. · NYSE:ECG
Everus Construction — Q3 2024 Earnings Presentation
22 slides from Everus Construction's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Results Conference Call
THIRD QUARTER 2024 RESULTS CONFERENCE CALL November 7, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, and oral comments that Everus may make contain or incorporate by reference certain “forward-looking statements” within the meaning of the securities laws. All statements that reflect Everus’ expectations, assumptions or projections about the future, othe
Slide 3: Our Mission and Values
OUR MISSION Safely Building America’s Future as an industry-leading construction services provider while achieving sustained growth OUR VALUES INTEGRITY RESPECT SAFETY TEAMWORK 3
Slide 4: Third Quarter 2024 Key Messages
Third Quarter 2024 Key Messages Performance highlighted ❖ Strong Backlog Growth ❖ T&D Growth Backlog of $2.9 billion, up 56% from Sept. T&D revenue increased 12% with growth in by strong backlog 30, 2023, reflecting strong momentum in utility and transportation end markets; growth, project E&M busin
Slide 5: Employees, Value, Execution, Relationships
Employees Value Execution Relationships Attract, retain Create long-term Lead the industry Maintain and grow and train value with sustained in safety and consistent customer premier talent profitable growth high-quality execution relationships 5
Slide 6: Value Creation Framework
Value Creation Framework Targeted Commercial Growth Operational Excellence Discipled Capital Allocation Grow share within existing Strategically deploy assets Invest in high-return organic end markets in higher-margin projects growth initiatives and end markets Further penetrate Pursue strategic hig
Slide 7: Long-Term Expectations
Employees Value Execution Relationships LONG-TERM EXPECTATIONS 5%–7% 7%–9% Organic Revenue CAGR EBITDA CAGR 2.0%–2.5% 1.5x–2.0x CapEx as % of Revenue Net Leverage 7
Slide 8: Third Quarter 2024 Results
s THIRD QUARTER 2024 RESULTS
Slide 9: 3Q24 Performance Summary
3Q24 Performance Summary 6% y/y Revenue Growth 12% y/y EBITDA Growth Performance ($MM) ($MM) $65.0 highlighted by strong $761.0 backlog growth, project execution, EBITDA margin $717.4 $58.0 expansion 3Q23 3Q24 • 6% revenue growth driven by 3Q23 3Q24 balanced growth across segments 56% Backlog Growth
Slide 10: 3Q24 Segment Performance Summary
3Q24 Segment Performance Summary E&M Revenue T&D Revenue E&M Highlights ($MM) ($MM) • Revenue increased 4% as $536.9 $228.5 strength in data center submarket work was partially offset by project timing $516.9 • EBITDA increased 21% on $204.5 strong execution and project efficiencies, margin up 110 b
Slide 11: 3Q24 Balance Sheet and Liquidity
3Q24 Balance Sheet and Liquidity Net Debt and Availability at Spinoff Date YTD Free Cash Flow Financial flexibility ($MM) ($MM) to pursue strategic $274.0 objectives $57.8 $251.0 • Net debt of $274.0 million; $45.5 cash and availability of $251.0 Net Debt Cash and Availability million at spinoff • F
Slide 12: 2024 Financial Guidance
2024 Financial Guidance 2024 EBITDA Bridge Confirming 2024 Guidance 2024 Guidance(1) (Assuming Full-Year Dis-Synergies) $ in millions $230.0 $28.0 Strong demand for E&M data center, $202.0 government and education projects, Revenue and T&D utility and transportation $2.65B – $2.85B work Federal fund
Slide 13: Long-Term Expectations
Long-Term Expectations Long-Term Expectations Employees 5%–7% 7%–9% Organic Revenue CAGR EBITDA CAGR Value Execution 2.0%–2.5% 1.5x–2.0x CapEx as % of Revenue Net Leverage Relationships 13
Slide 14: Compelling Investment Thesis
Compelling Investment Thesis Benefit From Multiple Proven Leadership Team Scaled National Platform Skilled Workforce, Diversified Revenue Base Growth Drivers and Executing 4EVER of Market-Leading Local People-First Culture & & Disciplined Capital Industry Megatrends Strategy Brands Repeatable Playbo
Slide 15: Appendix
3 Appendix
Slide 16: Non-GAAP Financial Guidance
Non-GAAP Financial Guidance We are unable to reconcile forward-looking non-GAAP financial guidance relating 2024 EBITDA margin and long-term targets of organic revenue, organic revenue growth and EBITDA to their nearest U.S. GAAP measure because we are unable to predict the timing of these adj ustme
Slide 17: Reconciliation of net income to EBITDA and EBITDA margin
Reconciliation of net income to EBITDA and EBITDA margin Three months ended September 30, Nine months ended September 30, 2024 2023 % change 2024 2023 % change (In millions, except percentages) Net income $ 41.8 $ 36.0 16.1 % $ 109.0 $ 100.8 8.1 % Interest 2.8 4.7 (40.4)% 8.8 13.5 (34.8)% Income tax
Slide 18: Reconciliation of free cash flow and net debt
Reconciliation of free cash flow and net debt Reconciliation between Operating Activities and Free Cash Flows Nine months ended September 30, 2024 2023 (In millions) Net cash provided by operating activities $ 82.7 $ 61.4 Purchases of property, plant and equipment (34.5) (28.1) Cash proceeds from sa
Slide 19: Reconciliation of net income to EBITDA by segment
Reconciliation of net income to EBITDA by segment Three months ended September 30, 2024 Nine months ended September 30, 2024 Corporate and Corporate E&M T&D Other Total E&M T&D and Other Total (In millions) (In millions) Net income $ 29.4 $ 18.5 $ (6.1) $ 41.8 $ 81.7 $ 43.5 $ (16.2) $ 109.0 Interest
Slide 20: Reconciliation of margin by segment
Reconciliation of margin by segment Three months ended September 30, Nine months ended September 30, 2024 2023 % change 2024 2023 % change (In millions, except percentages) Operating revenues: Electrical & Mechanical $ 536.9 $ 516.9 3.9 % $ 1,481.7 $ 1,680.2 (11.8)% Transmission & Distribution 228.5
Slide 21: Reconciliation of full year 2024 EBITDA guidance
Reconciliation of full year 2024 EBITDA guidance Full Year 2024 Low High (In millions) Net income $ 140.0 $ 150.0 Interest expense 10.0 15.0 Income taxes 45.0 50.0 Depreciation and amortization 25.0 25.0 EBITDA $ 220.0 $ 240.0 21
Slide 22: Contact: investors@everus.com
Contact: investors@everus.com 22
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