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FIRST QUARTER 2025RESULTS CONFERENCE CALL May 14, 2025
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Forward-Looking Statements 2 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, other than statements of historical facts, including, without limitation, statements regarding plans, trends, objectives, goals, business and growth strategies, market potential, our 4EVER strategy, future performance, financial guidance, long-term targets and other matters are consider forward-looking statements. The words “believe,” “expect,” “estimate,” “could,” “should,” “would,” “intend,” “may,” “plan,” “predict,” “seek,” “anticipate,” “project” and similar expressions generally identify forward-looking statements, which speak only as of the date the statements were made. In particular, information included within this presentation contain forward-looking statements. The matters discussed in this presentation are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected, anticipated or implied in the forward looking statements. Although Everus believes that the expectations reflected in any forward-looking statements it makes are based on reasonable assumptions as of the date they are made, it can give no assurance that the expectation will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: seasonality and adverse weather conditions; operate in highly competitive industry; operating results may vary significantly period to period; financial results and projections are based upon estimates and assumptions that may cause our actual results to materially differ from such projections, which may adversely affect our future profitability, cash flows and stock price; lack of success at generating internal growth; loss of, or reduction in business from, certain significant customers; dependence on fixed-price contracts; participation in joint ventures; failure to adequately recover on contract change orders or claims; pursuit of acquisitions and other strategic transactions; incurrence of liabilities or suffer negative financial or reputational impacts relating to health and safety matters; economic volatility;the failure to retain current customers and obtain new customer contracts; changes in prices for commodities, labor, or other production and delivery inputs; inability to hire, develop and retain key personnel and skilled labor forces; exposure to warranty claims; economic volatility; recognize revenue for the majority of construction projects based on estimates; debt obligations incurred with the separation; goodwill and intangible asset impairments; inability to provide surety bonds; backlog not accurately representing future revenue; supply chain disruptions; capital market and interest rates; increased insurance costs or inability to obtain insurance coverages; negative impacts from pending and/or future litigation, claims or investigations; liability resulting from participation in multiemployer-defined benefit pension plans; unionized workforce; increased health care plan costs; risks associated with the nonpayment and/or nonperformance of customers and counterparties; increases or changes in income tax rates or tax-related laws; risks associated with import tariffs and/or other government mandates; new interpretations of or changes in the enforcement of the government regulatory framework; technology disruptions or cyberattacks; artificial intelligence challenges; pandemics, including COVID-19 pandemic; the risk of increased costs from dis-synergies, costs of restructuring transactions and other costs incurred in connection with the separation from MDU Resources Group, Inc. (MDU Resources); retention of existing management team members and the ability to obtain the necessary personnel as a result of the separation; the impact of the separation on Everus’ business, reaction of customers, employees and other parties to the separation; leverage; any failure by MDU Resources to perform its obligations under the various separation agreements to be entered into in connection with the separation and distribution; a determination by the IRS that the distribution or certain related transactions are taxable; and the impact of the separation on Everus’ businesses and the risk that the separation may be more difficult, time consuming or costly than expected, including the impact on Everus’ resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties.The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under “Risk Factors” in the Company's 2024 Annual Report on Form 10-K. You should read this presentation completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this presentation are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this presentation, and Everus does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data.Reconciliations of the non-GAAP measures used to their respective most directly comparable GAAP measure can be found in the Appendix. All financial information presented in this presentation has been prepared in U.S. dollars in accordance with generally accepted accounting principles in the United States (“GAAP”), except for the presentation of the following non-GAAP financial measures: organic revenue, organic revenue growth, EBITDA, EBITDA margin, free cash flow, net debt andnet leverage, and, in some cases,applicable measures by segment. Organic revenue is most comparable to the GAAP measure of revenue and is defined as the difference between current year and prior year revenues less the impact of acquired and divested companies in the past 12 months. Organic revenue growth is most comparable to the GAAP measure of revenue growth and is calculated by dividing organic revenue by prior year revenues. EBITDA is most comparable to the GAAP measure of net income and is defined as net income before interest expense, net of interest income, income taxes and depreciation and amortization. EBITDA margin is most comparable to the GAAP measure of net income margin and is defined as EBITDA as a percentage of operating revenues. Free cash flow is most comparable to the GAAP measure of cash flows provided by (used in) operating activities. Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures. Net debt and net leverage are most comparable to the GAAP measure of total debt. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt divided by EBITDA, as defined. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ measures of organic revenue, organic revenue growth, EBITDA, EBITDA margin, free cash flow, net debt andnet leverage having the same or similar names.Everus presents organic revenue, organic revenue growth, EBITDA, EBITDA margin, free cash flow, net debt and net leverage, and, in some cases, applicable measures by segment, in this presentation because it believes such measures, in addition to corresponding GAAP measures, provide investors with additional information to measure Everus’ performance and liquidity. These non-GAAP financial measures are not intended as alternatives to GAAP financial measures. Everus uses organic revenue, organic revenue growth, EBITDA and EBITDA margin, as well as the comparable GAAP measures of revenue, revenue growth, net income and net income margin, as indicators of Everus’ operating performance. Everus uses free cash flow as well as the comparable GAAP measure of cash flows provided by (used in) operating activities, as a measure of cash available to Everus to invest in the growth of Everus’ business or that will be available to Everus to meet its obligations. Everus uses net debt and net leverage as well as the comparable GAAP measure of total debt to provide a measure of how quickly Everus could repay its debt if net debt and EBITDA were constant. Net leverage also provides insight into Everus' borrowing capacity and leverage ratio.
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3 OUR MISSIONSafely Building America’s Future™ as an industry-leading construction services provider while achieving sustained growthOUR VALUES SAFETYRESPECTTEAMWORKINTEGRITY
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First Quarter 2025 Highlights – Backlog Strength 4 Strong Backlog Growth Backlog of $3.1 billion, up 41% from prior year, reflecting growth in both T&D (+8%) and E&M (+46%) segments Robust Revenue Growth Revenue growth of 32% driven by continued momentum in E&M Segment EBITDA Growth Total EBITDA increased 32% from prior year, despite incremental stand-alone operating costs, driven by E&M revenue growth and favorable T&D margin capture Efficient Execution EBITDA margin of 7.5%, consistent with prior year despite incremental stand-alone operating costs; both E&M and T&D segment margins expanded from prior year *All comparisons are versus the prior year quarter unless otherwise noted $3,058 $500$1, 000$1, 500$2,0 00$2,500$3,00 0$3,500 1Q212Q2 13Q2 14Q211Q222Q2 23Q2 24Q221Q232Q2 33Q2 34Q231Q242Q2 43Q2 44Q241Q25 Backlog Growth
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First Quarter 2025 Highlights – End Market Momentum 5 T&D Margin Expansion T&D revenue decreased 2% as lower storm work was partially offset by higher underground workloads; EBITDA increased 6% driven by margin expansion E&M Momentum E&M revenue increased 47% driven by continued momentum in data center work; EBITDA increased 51% Free Cash Flow First quarter 2025 free cash flow was a use of ($8) million due to project timing Financial Flexibility Total unrestricted cash and cash equivalents and revolver availability of $263.7 million at March 31, 2025; net leverage of 1.0x *All comparisons are versus the prior year quarter unless otherwise noted Favorable End Market TrendsvData Center – Continue to see very strong demand trends and have not seen any meaningful change in our customers' plans vHigh Tech – Outlook for high-tech re-shoring remains favorable due to CHIPS Act and trend towards domestic manufacturingvHospitality – Secured several new projects during the first quarter and remain encouraged by the market outlook in Las Vegas
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6 Create long-term value with sustained profitable growth ValueAttract, retainand trainpremier talent EmployeesMaintain and grow customerrelationships RelationshipsLead the industryin safety and consistent high-quality execution Execution
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Value Creation Framework 7 Grow share within existing end markets Further penetrate higher-growth submarkets Lead geographic expansion through satellite projects Accelerate growth with strategic M&A Ta r g et e d C o mme r c i a l G r ow t hDisciplined Capital Allocation Driving sustainable value creation through a dedicated focus on 4EVER principles Operational Excellence Strategically deploy assets in higher-margin projects and end markets Maintain disciplined bidding process Continue to implement Everus’ operational playbook Drive operating leverage through growth initiatives Invest in high-return organic growth initiatives Pursue strategic acquisitions Maintain investment-grade capital structure Future potential capital returns to shareholders
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8 EmployeesValueExecutionRelationshipsLONG-TERM EXPECTATIONS 2.0% – 2.5%CapEx as % of RevenueNet Leverage1.5x – 2.0x7% – 9%EBITDA CAGR5% – 7%Organic Revenue CAGR
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9FIRST QUARTER 2025 RESULTS
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First Quarter 2025 Performance Summary 10 Performance highlighted by continued backlog momentum, project execution, strong E&M growth•32% first quarter revenue growth driven by strong E&M results•Tot a l b a c k l o g i n c re a s e d 41 % to $3.1 billion y/y, with E&M backlog up 46% and T&D backlog up 8%•First quarter EBITDA increased 32% despite incremental stand-alone operating costs 32.1% y/y First Quarter Revenue Growth($MM) 31.8% y/y First Quarter EBITDA Growth($MM) Consistent y/y First Quarter EBITDA Margin(%) 40.5% y/y First Quarter Backlog Growth($MM) $2,175.4$2,403.4$2,884.8$2,780.6$3,057.5 1Q242Q2 43Q2 44Q241Q25 7.5% 7.5% 1Q241Q25 $625.7 $826.6 1Q241Q25 $46.9$61.8 1Q241Q25
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E&M Highlights•First quarter revenue increased 47% due to strength in key submarkets within commercial and institutional•First quarter EBITDA increased 51% on strong revenue growth; margin increased 20 bps T&D Highlights•First quarter revenue decreased 2% due to lower utility work and weather delays, partially offset by transportation growth•First quarter EBITDA growth of 6%; margin expanded 80 bps First Quarter Segment Performance Summary 11 E&M Revenue($MM) T&D Revenue($MM) T&D EBITDA and EBITDA Margin($MM and %) E&M EBITDA and EBITDA Margin($MM and %) $441.0 $648.2 1Q241Q25 $32.8 $49.5 1Q241Q25 7.4% 7.6% $188.5$185.0 1Q241Q25 $19.0$20.1 1Q241Q25 10.1%10.9%
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Ample financial flexibility to pursue strategic objectives•1Q25 net debt of $242 million, up from 4Q24 reflecting seasonal working capital usage and investments in capital expenditures•Cash and availability of $264 million provides flexibility to pursue growth strategy•Net leverage of 1.0x at March 31, 2025, below long-term target range of 1.5-2.0x First Quarter 2025 Balance Sheet and Liquidity 12 Net Debt($MM) Net Leverage($MM) Tot a l C a sh a n d Ava ila b ilit y($MM) First Quarter 2025 Capital Expenditures($MM) $274$230$242 Spinoff Date4Q241Q25 $251$279$264 Spinoff Date4Q241Q25 1.0x 1.0x 4Q241Q25
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13 2025 Financial Guidance2025 Drivers Strong demand for E&M driven by data center, high-tech re-shoring; T&D driven by grid modernization and grid hardening Strong momentum with backlog of $3.1 billion as of March 31, 2025, up 41% year-over-year Margin realization impacted by incremental stand-alone operating costs and project mix Affirming 2025 Guidance Revenue $3.0B – $3.1B EBITDA$210M – $225M
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Benefit From Multiple Growth Drivers and Industry MegatrendsProven Leadership Team Executing 4EVER StrategyScaled National Platform of Market-Leading Local BrandsSkilled Workforce, People-First Culture & Repeatable PlaybookDiversified Revenue Base & Disciplined Capital Allocation Compelling Investment Thesis 14
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15APPENDIX
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Non-GAAP Financial Guidance 16 We are unable to reconcile forward-looking non-GAAP financial guidance relating to full-year 2025 EBITDA margin and long-term targets of organic revenue, organic revenue growth and EBITDA to their respective nearest U.S. GAAP measure because we are unable to predict the timing of these adjustments with a reasonable degree of certainty. By their very nature, non-GAAP adjustments are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and our financial results. Therefore, we are unable to providea reconciliation of full-year 2025 EBITDA margin guidance, and reconciliations of long-term organic revenue, organic revenue growth, EBITDA, and net leverage guidance without unreasonable efforts.
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Reconciliations of net income to EBITDA and EBITDA margin 17 Reconciliations of net income to EBITDA and EBITDA margin.Three months ended March 31, 20252024Change(In millions, except percentages)Net income $ 36.7 $ 28.2 30.1 %Interest 4.72.774.1 %Income taxes 13.610.036.0 %Depreciation and amortization6.86.013.3 %EBITDA $ 61.8 $ 46.9 31.8 %Operating revenues 826.6625.732.1 %Net income margin 4.4%4.5%EBITDA margin 7.5%7.5%
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Reconciliations of net income to EBITDA by segment 18 Reconciliations of net income to EBITDA by segment. Three months ended March 31, 2025Three months ended March 31, 2024 E&M T&D Corporate and Other Total E&M T&D Corporate and Other Total (In millions) (In millions)Net income$ 36.6 $ 10.5 $ (10.4)$ 36.7 $ 23.0 $ 10.2 $ (5.0)$ 28.2 Interest (1.8)0.75.84.7(0.1)0.91.9 2.7Income taxes13.33.4(3.1)13.68.33.4(1.7) 10.0Depreciation and amortization1.45.5(0.1)6.81.64.5(0.1) 6.0EBITDA $ 49.5 $ 20.1 $ (7.8)$ 61.8 $ 32.8 $ 19.0 $ (4.9)$ 46.9
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Reconciliations of EBITDA and EBITDA margin by segment 19 Reconciliations of net income to EBITDA and EBITDA margin by segment.Three months ended March 31, 20252024% change(In millions, except percentages)Operating revenues:Electrical & Mechanical $ 648.2 $ 441.0 47.0 %Transmission & Distribution 185.0188.5(1.9)%Eliminations (6.6)(3.8)73.7 %Total operating revenues $ 826.6 $ 625.7 32.1 %Net income:Electrical & Mechanical $ 36.6 $ 23.0 59.1 %Transmission & Distribution 10.510.22.9 %Corporate and other (10.4)(5.0)NM Total net income $ 36.7 $ 28.2 30.1 %EBITDA:Electrical & Mechanical $ 49.5 $ 32.8 50.9 %Transmission & Distribution 20.119.05.8 %Corporate and other (7.8)(4.9)(59.2)%Total EBITDA $ 61.8 $ 46.9 31.8 %Net income margin:Electrical & Mechanical 5.6%5.2%Transmission & Distribution 5.7%5.4%Total net income margin 4.4%4.5%EBITDA margin:Electrical & Mechanical 7.6%7.4%Transmission & Distribution 10.9%10.1%Total EBITDA margin 7.5%7.5%* NM - Not Meaningful
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Reconciliation of full-year 2025 EBITDA guidance 20 EBITDA guidance reconciliationLowHigh(In millions)Net income $ 120.0$ 130.0 Interest expense 25.025.0Income taxes 40.045.0Depreciation and amortization25.025.0EBITDA $ 210.0$ 225.0
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Reconciliations of trailing 12-month EBITDA and net leverage 21 Reconciliations of trailing-twelve-month EBITDA as of March 31, 2025 and December 31, 2024.Twelve months ended March 31, 2025Three months ended March 31, 2025Twelve months ended December 31, 2024Three months ended March 31, 2024(In millions)Net income $ 151.9 $ 36.7 $ 143.4 $ 28.2 Interest expense 16.04.714.02.7Income taxes 53.113.649.510.0Depreciation and amortization26.16.825.36.0EBITDA $ 247.1 $ 61.8 $ 232.2 $ 46.9 Reconciliations of net leverage calculation of net debt to trailing-twelve-month EBITDA as of March31, 2025 and December 31, 2024.Twelve months endedMarch 31, 2025Twelve months endedDecember 31, 2024(In millions)(In millions)Current portion of long-term debt $ 15.0$ 15.0Long-term debt 277.1280.6Total debt 292.1295.6Add: Unamortized debt issuance costs4.1 4.4Total gross debt 296.2300.0Less: cash and cash equivalents, excluding restricted cash(54.3)(69.9)Total net debt $ 241.9$ 230.1Trailing-twelve-months ended EBITDA for the period indicated$ 247.1$ 232.2Net leverage 1.0x1.0x
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Reconciliations of free cash flow 22 Reconciliations of cash provided by operating activities to free cash flowThree months ended March 31,20252024(In millions)Net cash used in investing activities$ (14.8)$ (6.4)Net cash used in financing activities$ (4.3)$ (16.5) Net cash provided by operating activities$ 7.1 $ 21.8 Purchases of property, plant and equipment(18.5)(9.2)Cash proceeds from sale of property, plant and equipment3.32.8Free cash flow$ (8.1)$ 15.4
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Contact:investors@everus.com23