Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Investor Day (October 2024)
59 slides from Mdu Resources's investor day presentation, Oct 17, 2024
Slide 1: Investor Day October 17, 2024
www.EVERUS.com 1 INVESTOR DAY October 17, 2024 Exhibit 99.1
Slide 2: Forward-Looking Statements
©2024 EVERUS Forward-Looking Statements 2 This presentation and other materials Everus has filed or will file with the Securities and Exchange Commission ("SEC") (and oral communications that Everus may make) contain or incorporate by reference, or will contain or incorporate by reference, certain “
Slide 3: Agenda
Agenda ©2024 EVERUS 3 SECTION SPEAKERS Welcome and Introduction Nicole Kivisto MDU Resources Group President & Chief Executive Officer Long-Term Value Creation Plan Jeff Thiede President & Chief Executive Officer Execution and Operational Excellence Tom Nosbusch Executive Vice President & Chief Oper
Slide 4: Welcome and Introduction
Welcome and Introduction Nicole Kivisto MDU Resources Group President & Chief Executive Officer
Slide 5: Everus as an Independent Public Company
Everus as an Independent Public Company 5 FOCUSED STRATEGY & EXECUTION National construction services platform with a dedicated strategy and strong local brands to drive sustained long-term growth and profitability ©2024 EVERUS DEDICATED LEADERSHIP Dedicated and experienced Board of Directors and hi
Slide 6: Dedicated and Experienced Board of Directors
Dedicated and Experienced Board of Directors ©2024 EVERUS 6 Qualified Board with diverse and relevant experience aligned with 4EVER strategy Dale Rosenthal Board Chair Former Director and CFO of Clark Construction Group Former public company Board member at MDU Resources and WGL Holdings Marke
Slide 7: Long-Term Value Creation Plan
Long-Term Value Creation Plan Jeff Thiede President & Chief Executive Officer
Slide 8: Our Mission and Values
©2024 EVERUS 8 OUR MISSION Safely Building America’s Future as an industry-leading construction services provider while achieving sustained growth OUR VALUES SAFETY RESPECT TEAMWORK INTEGRITY
Slide 9: Experienced Leadership Team With Deep Expertise
Experienced Leadership Team With Deep Expertise ©2024 EVERUS 9 16 Presidents responsible for day-to-day operations of 20 local brands ~13 years average executive tenure at Everus 9,000+ employees(1) ~28 years average executive tenure Paul Sanderson VP, Chief Legal Officer & Corporate Secretary Years
Slide 10: National Platform of 20 Market-Leading Local Brands
©2024 EVERUS $2.7B Total Revenue(4) Wiring, infrastructure, fire suppression and piping National Platform of 20 Market-Leading Local Brands Electrical & Mechanical Note: Figures reflect data as of 6/30/2024, unless specified otherwise. (1) At peak 2023 construction season. (2) From full fiscal year
Slide 11: Electrical & Mechanical Segment Overview
COMMERCIAL (55%) SERVICE/OTHER (6%) ©2024 EVERUS 11 Construction and maintenance of electrical, communication, fire suppression and mechanical systems Deep experience with hospitality, entertainment, high-tech and data center projects Specialized expertise with complex, large and longer-term project
Slide 12: Transmission & Distribution Segment Overview
©2024 EVERUS 12 Construction and maintenance services for utility and communication infrastructure Manufacturing and distribution of line equipment Expertise in small- to medium-sized projects, recurring upgrades and maintenance work Serving utility and local government customers Equipment Excavatio
Slide 13: Scaled National Platform of Market-Leading Local Brands
Scaled National Platform of Market-Leading Local Brands ©2024 EVERUS 13 Operating and authorized to work across the United States Proven ability to deploy capital for innovation and to set industry standards Systematic platform-wide sharing of best practices and expertise Authorized states of operat
Slide 14: Revenue by End-Market
©2024 EVERUS 14 Commercial Transportation Renewables $1,055M LTM Revenue 39% % of Contract Revenue $48M LTM Revenue 2% % of Contract Revenue $74M LTM Revenue 3% % of Contract Revenue Service & Other $106M LTM Revenue 4% % of Contract Revenue Note: Figures reflect last twelve months ended 6/30/2024.
Slide 15: Scaled for Success, Built for Growth
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Capital Electric Line Builders completes biggest transmission line construction project in Everus history ©2024 EVERUS 15 Scaled for Success, Built for Growth Scalin
Slide 16: Compelling Investment Thesis
©2024 EVERUS 16 Leading construction services provider with differentiated execution capabilities well-positioned to benefit from multiple growth drivers and industry megatrends Proven executive leadership team executing 4EVER strategy to deliver sustained profitable growth and long-term value creat
Slide 17: Next Phase of Growth, Disciplined Execution, Value Creation
Next Phase of Growth, Disciplined Execution, Value Creation ©2024 EVERUS 17 4EVER strategy for sustained and profitable growth and long-term value creation 5%—7% Organic Revenue CAGR 7%—9% EBITDA CAGR LONG-TERM EXPECTATIONS Sustained and Profitable Growth 2024+ Foundation for Growth 1997 – 2004 Scal
Slide 18: 4EVER Strategy Pillars
©2024 EVERUS 18 Attract, retain and train premier talent Employees Create long-term value with sustained profitable growth Value Maintain and grow customer relationships Relationships Lead the industry in safety and consistent high-quality execution Execution
Slide 19: Highly Skilled Employees
Highly Skilled Employees ©2024 EVERUS 19 ~28 Years Average Executive Tenure 100% Brand Presidents’ “Building Leaders” Program Completion 82% Union Workforce 9,000+ Employees(1) Strong Union Relationships Expertise & Technical Skills Extensive Experience Training Leadership Experienced executive team
Slide 20: Consistent High-Quality Execution
Consistent High-Quality Execution ©2024 EVERUS 20 PRE-CONSTRUCTION CONSTRUCTION POST-CONSTRUCTION Bid With Discipline Deploy Repeatable Playbook Maintain Customer Relationships High-Quality Outcomes Provide post-construction services Prioritize customer retention Provide maintenance and repair
Slide 21: Broad Base of Long-Tenured Marquee Customers
©2024 EVERUS 21 Broad Base of Long-Tenured Marquee Customers GENERAL CONTRACTORS CORPORATE CUSTOMERS Negotiated / Competitive Bid Negotiated / Competitive Bid UTILITY CUSTOMERS Master Service Agreement 30+ Years Average Relationship with Top 10 Customers(2) 3,700+ Customers 44,000+ Projects 18% Back
Slide 22: Multiple Levers to Drive Growth
Multiple Levers to Drive Growth ©2024 EVERUS 22 Grow Share Within Existing Markets Increase local share through strong customer relationships and a proven track record of execution Further Penetrate Higher-Growth Sub-Markets Leverage expertise with critical and complex projects to expand within high
Slide 23: Well-Positioned in High-Growth Industry Megatrends
$365B 2026 TAM(2) Well-Positioned in High-Growth Industry Megatrends ©2024 EVERUS 23 GRID MODERNIZATION Upgrades and repairs of aging electrical infrastructure 6% 2023 – 2026 HIGH-TECH RESHORING Accelerating shift to domestic manufacturing 12% 2022 – 2032 ENERGY TRANSITION Government and commercial
Slide 24: Geographic Expansion Through Satellite Projects – Data Centers
©2024 EVERUS 24 Geographic Expansion Through Satellite Projects – Data Centers Highly skilled workforce and scaled solutions for consistent execution Building Blocks of Data Center Excellence and Expansion Extensive knowledge-sharing 14+ years of significant experience in the data center indus
Slide 25: Geographic Expansion Through Strategic M&A
©2024 EVERUS 25 Geographic Expansion Through Strategic M&A (1) As per deal announcement on 2/3/2020. (2) Based on a comparison of revenue and EBITDA in the year of the acquisition (2020) versus the last twelve months ended 6/30/2024. Milestones Since Acquisition(2) Acquired PerLectric in 2020, succe
Slide 26: Long-Term Value Creation
©2024 EVERUS 26 LONG-TERM VALUE CREATION Employees Value Execution Relationships LONG-TERM EXPECTATIONS 7%–9% EBITDA CAGR 5%–7% Organic Revenue CAGR LONG-TERM VALUE CREATION
Slide 27: Compelling Investment Thesis
©2024 EVERUS 27 Leading construction services provider with differentiated execution capabilities well-positioned to benefit from multiple growth drivers and industry megatrends Proven executive leadership team executing 4EVER strategy to deliver sustained profitable growth and long-term value creat
Slide 28: Execution and Operational Excellence
Execution and Operational Excellence Tom Nosbusch Executive Vice President & Chief Operating Officer
Slide 29: Today's Key Messages
Systematic application of repeatable playbook across project lifecycle enables consistent high-quality outcomes, from pre-construction and design-assist to post-construction services ©2024 EVERUS 29 Industry-leading safety-first culture attracts and retains highly skilled workforce necessary to exec
Slide 30: People-First Culture With Industry-Leading Safety Focus
Total Recordable Incident Rate 1.29 1.72 Industry Average Days Away, Restricted or Transferred 0.60 1.00 Industry Average ©2024 EVERUS 30 Founding member of Electrical Transmission & Distribution Partnership, a collaboration of industry stakeholders working to improve safety Safety controls enforced
Slide 31: Execution Playbook for Repeatable High-Quality Results
31 Systematically Share ‘Lessons Learned’ Across Brands Leverage Unique Pre-Construction Design-Assist Capabilities Position Safety as a Core Value, Not Only a Priority Efficiently Scale Highly Skilled Workforce Continuously Train and Develop Workforce Skills ©2024 EVERUS Deploy Best Practices in De
Slide 32: Pre-Fabrication Drives Productivity and Cost Savings
Project-planning standards that identify pre-fabrication opportunities Robust communication and knowledge- sharing between BIM/CAD(2) and pre- fabrication teams National scale and local presence allowing innovation at scale with local expertise Superior pre-fabrication quality, lowering costs and st
Slide 33: Marquee E&M Project
©2024 EVERUS 33 PROJECT HIGHLIGHTS Design-Assist Project Delivery Exceptional pre-construction capabilities and value analysis enabled fast start and completion in 2023 COMPETITIVE STRENGTH Flexible Highly Skilled Labor Ability to rapidly scale workforce, peaking at 650 employees across three differ
Slide 34: Decades-Long T&D Relationship
©2024 EVERUS 34 PROJECT HIGHLIGHTS COMPETITIVE STRENGTH 26+ Year customer relationship 22%+ Revenue CAGR with customer since 2018 +250 New projects with customer since 2018 Strong Customer Relationship Breadth of Capabilities Expertise With Complex Projects 26+ year customer relationship with signif
Slide 35: Disciplined Execution for Repeatable High-Quality Results
©2024 EVERUS 35 Disciplined Execution for Repeatable High-Quality Results PRE- CONSTRUCTION Bid With Discipline Utilizing Job Cost Data CONSTRUCTION Deploy Repeatable Playbook POST- CONSTRUCTION Maintain Customer Relationships and Service Work Opportunities High-Quality Outcomes Disciplined Processe
Slide 36: Break
Break
Slide 37: Financial Profile and Outlook
Financial Profile and Outlook Max Marcy Vice President, Chief Financial Officer & Treasurer
Slide 38: Today's Key Messages
Today’s Key Messages Consistent execution and disciplined strategy deliver strong financial performance spanning 27 years Strong market positions and tailwinds from megatrends provide multiple levers for expansion and sustained growth Capital-light business model and disciplined capital allocation f
Slide 39: Diversified Revenue Base for Sustained Growth
36% 64% END-MARKET DIVERSITY Well-positioned to capture growth from secular megatrends with comprehensive set of solutions CUSTOMER AND PROJECT DIVERSITY Long-tenured customer relationships and diversified project base enhance strong backlog and business stability ©2024 EVERUS 39 Revenue by Customer
Slide 40: Strong Backlog and Revenue Growth
Strong Backlog and Revenue Growth ©2024 EVERUS 40 Track Record of Strong Backlog Growth … … Delivering Sustained Long-Term Revenue Growth $1,849 $2,096 $2,052 $2,699 $2,854 $2,682 2019 2020 2021 2022 2023 LTM Revenue $ in millionsBacklog $ in millions (1) Reflects last twelve months ended 6/30/2024.
Slide 41: Capital-Light, Low Fixed-Cost Model
Capital-Light, Low Fixed-Cost Model For Flexibility & Resilience ©2024 EVERUS 41 Low Fixed Costs For Flexibility and Resilience(2) (1) Reflects last twelve months ended 6/30/2024. (2) Figures based on fixed and variable costs before dis-synergies. (3) Average reflects 2019-2023 metrics. 11% 12% 12%
Slide 42: Profitable Growth With a Resilient Margin Profile
7.9% 8.3% 8.2% 7.2% 7.8% 8.4% 2019 2020 2021 2022 2023 LTM 5-Year Avg. EBITDA Margin: 7.9%(2) Profitable Growth With a Resilient Margin Profile ©2024 EVERUS 42 Bid Discipline and Operational Excellence Enable Resilient Margin Profile … … In Turn Driving Sustained and Profitable Growth EBITDA $ in mi
Slide 43: Confirmed 2024 Financial Guidance
©2024 EVERUS 43 Confirmed 2024 Financial Guidance Key Drivers Confirmed 2024 Guidance(2) (1) As of 6/30/2024. (2) EBITDA guidance before dis-synergies. Confidence in the business and segment guidance that MDU previously provided Strong demand for E&M data center, government and education projects, a
Slide 44: 2024 EBITDA Bridge Including Full-Year Dis-Synergies
©2024 EVERUS 44 2024 EBITDA Guidance Including Impact of Full-Year Dis-Synergies $ in millions $230 $202 $28 Midpoint of 2024 EBITDA Guidance Full-Year Net Dis-Synergies Guidance Assuming Full-Year Net Dis-Synergies 2024 EBITDA Bridge (Assuming Full-Year Dis-Synergies) Recurring dis-synergies includ
Slide 45: Strong Balance Sheet and Strategic Flexibility
Strong Balance Sheet and Strategic Flexibility ©2024 EVERUS 45 Prioritize growth investments; target long-term net leverage between 1.5x–2.0x Provide ample capacity to support growth across cycles Ensure strategic flexibility for opportunistic investments – both organic opportunities and strategic a
Slide 46: Disciplined Capital Allocation For Long-Term Value Creation
Disciplined Capital Allocation For Long-Term Value Creation ©2024 EVERUS 46 Prudent management through the economic cycle Target long-term net leverage ratio between 1.5x and 2.0x Complementary businesses, only if strategic and cultural fit with compelling returns Disciplined and selective a
Slide 47: Long-Term Expectations
©2024 EVERUS 47 Employees Value Execution Relationships LONG-TERM EXPECTATIONS 2.0%–2.5% CapEx as % of Revenue Net Leverage 1.5x–2.0x 7%–9% EBITDA CAGR 5%–7% Organic Revenue CAGR
Slide 48: Closing Remarks
Closing Remarks Jeff Thiede President & Chief Executive Officer
Slide 49: Compelling Investment Thesis
Benefit From Multiple Growth Drivers and Industry Megatrends Proven Leadership Team Executing 4EVER Strategy Scaled National Platform of Market-Leading Local Brands Skilled Workforce, People-First Culture & Repeatable Playbook Diversified Revenue Base & Disciplined Capital Allocation Compelling Inve
Slide 50: Q&A
Q&A
Slide 51: Q3 Webcast Invitation
Please join us at 8:30 AM EST on Nov. 7th for Everus’ Q3 2024 Webcast
Slide 52: Appendix
c Appendix
Slide 53: Non-GAAP Financial Guidance
Non-GAAP Financial Guidance ©2024 EVERUS 53 Our forward-looking guidance for EBITDA, EBITDA Margin and long-term net leverage are non-GAAP financial measures that exclude or otherwise have been adjusted for special items from our U.S. GAAP financial statements. We are unable to reconcile forward-loo
Slide 54: Non-GAAP Reconciliation of EBITDA
Twelve Months Ended December 31st 2023 2024 LTM ($ in millions, except for margin values) 2019 2020 2021 2022 1H 2023 2H 2023 1H 2024 As of Q2 2024 Net Income $93.0 $109.7 $109.4 $124.8 $64.7 $72.5 $67.2 $139.7 Adjustments: Interest 5.3 4.1 3.5 6.4 8.9 8.1 6.0 14.1 Income Taxes 30.0 35.8 35.4 40.8 2
Slide 55: Financial Reconciliations (E&M)
Financial Reconciliations (E&M) ©2024 EVERUS 55 ($ in millions, except for margin values) 2019 LTM as of Q2 2024 2023 1H 2023 2H 2023 1H 2024 4.5-Year CAGR E&M Revenue $1,274.3 $1,916.0 $2,134.9 $1,163.3 $971.6 $944.9 9.5% Operating Income $64.0 $131.0 $134.4 $69.2 $65.2 $65.8 17.3% Other Income 1.1
Slide 56: Financial Reconciliations (T&D)
Financial Reconciliations (T&D) ©2024 EVERUS 56 ($ in millions, except for margin values) 2019 LTM as of Q2 2024 2023 1H 2023 2H 2023 1H 2024 4.5-Year CAGR T&D Revenue $596.3 $785.0 $734.6 $345.0 $389.6 $395.3 6.3% Operating Income $76.0 $80.1 $73.6 $28.3 $45.3 $34.8 1.2% Other Income 0.4 1.7 2.1 1.
Slide 57: Reference for Historical Growth in Backlog
©2024 EVERUS Reference for Historical Growth in Backlog ($ in millions) 2019 As of 6/30/2024 4.5-Year CAGR Backlog 1,144.0 2,403.4 17.9% 57
Slide 58: Non-GAAP Reconciliation of Net Leverage
($ in millions, except for leverage ratios) As of Spinoff Date, October 31st, 2024 Total Debt $340 Cash $50 Net Debt $290 LTM EBITDA(1) as of Q2 2024 $225 Gross Leverage 1.5x Net Leverage(1) 1.3x ©2024 EVERUS Non-GAAP Reconciliation of Net Leverage (1) Reflects EBITDA over last twelve months ended 6
Slide 59: Building America's Future.
Building America’s Future. 59