ECG

Everus Construction Group, Inc. (ECG) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Everus Construction Group, Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $1.28 per share for the current quarter represents a change of +15.3% from the number reported a year ago. Over the last 30 days, the Zacks Consensus Estimate for Everus Construction Group, Inc. has increased 15.84% because two estimates have moved higher compared to no negative revisions. For the full year, the earnings estimate of $5.23 per share represents a change of +32.4% from the year-ago number. The revisions trend for the current year also appears quite promising for Everus Construction Group, Inc., with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 19.26%. Thanks to promising estimate revisions, Everus Construction Group, Inc. currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Everus Construction Group, Inc. because of its solid estimate revisions, as evident from the stock's 5.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Everus Construction Group, Inc. (ECG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Aug. 5, 2026 at 11 a.m. ET Chief Executive Officer - Jeff Thiede Chief Financial Officer - Max Marcy Operator: Hello, everyone. Thank you for joining us, and welcome to the Everus Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand over the conference to Paul Bartolai. Please go ahead. Paul Bartolai: Thank you. Good morning, everyone, and welcome to Everus Construction Group's Second Quarter 2026 Results Conference Call. Leading the call today are CEO, Jeff Thiede; and CFO, Max Marcy. We issued a news release yesterday detailing our second quarter 2026 operational and financial results. This release and the accompanying presentation materials are 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 in the appendix of today's presentation. Today's call will begin with prepared remarks from Jeff, who will provide a review of our recent business performance, and an update on the progress against our strategic priorities. Followed by Max, who will provide a more detailed financial update before wrapping up with our guidance. At the conclusion of these prepared remarks, we will open the line for your questions. And with that, I'll turn the call over to Jeff. Jeff Thiede: Thank you, Paul, and good morning to everyone joining us today. Our positive momentum continued during the second quarter as sustained market demand and strong project execution resulted in another quarter of record revenues, meaningful margin expansion and robust backlog growth. We also made important progress against our key strategic priorities during the quarter. In April, we announced the acquisition of SE&M Constructors and the integration is progressing as planned. We followed this transaction up with the announcement this past Friday that we expect to acquire Epsilon Industries, a leading provider of off-site modular construction solutions. We are very excited about the transaction, which we expect will provide a meaningful expansion of our off-site construction capabilities. I will give more details on the transaction later in my comments. Our robust organic growth and strong project execution directly reflect the diligent efforts of our talent team across the company and our unwavering focus on our strategic priorities. Our people are what drive our business, and I am extremely proud and grateful for their hard work and dedication. Turning to our quarterly highlights, beginning with Slide 4. We delivered record second quarter revenues of $1.23 billion, up 34% from the prior year with growth across both our E&M and T&D segments, and the contribution from SE&M. Once again, our strong top line performance was complemented by another quarter of excellent execution. As a result, record second quarter EBITDA increased 53% from the prior year period, and our EBITDA margin was up 130 basis points. Our team's ability to deliver this level of strong project execution reflects their diligent use of our operational playbook. We are extremely proud of our track record of successful execution and will not get complacent. We remain focused on executing jobs safely, on time and on budget. Our backlog at the end of the second quarter was $4.55 billion, up 53% from the same period last year, driven by continued strength in E&M. The favorable demand trends are broad-based, and we continue to benefit from positive momentum across diverse markets with growth in nearly all submarkets sequentially. Demand for our services remains strong as evidenced by our recent bookings. We always stay close to our customers, monitor market trends and track project activity. We have not experienced any project cancellations or notable changes in activity with our customers or projects. We remain encouraged by what we are seeing in our markets and remain confident in the growth outlook. The potential for change in any end market is why we remain committed to our diversified growth strategy, demand trends vary and we diligently position ourselves to take advantage of changing market dynamics. 10 years ago, it might have been health care that was a key growth driver. 5 years ago, it was hospitality, and now it is data centers and other markets like semiconductor. Our focus is on making sure we have the people, capabilities and geographic exposure to take advantage of each phase of growth. Our recent expansion into a new geography and the announced acquisitions of SE&M and Epsilon are evidence of this strategy. We will continue to evaluate new geographies and strategic acquisitions that advance our growth strategy and keep us positioned to achieve our long-term financial targets. Now I'd like to shift gears and highlight our recent progress on our key strategic initiatives. As a reminder, our value creation framework is based on targeted growth, operational excellence and disciplined capital allocation. In terms of growth, we continue to benefit from strong end market trends, notably in the commercial and industrial markets. As I already discussed, we continue to see strong momentum across our markets. Our data center work tends to be focused on several hyperscale customers. We continue to be very involved in long-term planning with these customers and demand remains strong. The project in our new geography for a semiconductor customer continues to ramp as expected, and we remain encouraged by opportunities we are seeing in this market. We will continue to focus on our diversified approach to growth and believe we are very well positioned to benefit from a broad set of favorable market trends given our strong relationships, track record of execution, and our highly skilled workforce across the country. Now turning to operational excellence. Our operating results continue to benefit from efficient project execution, including the advantages of our modular construction and prefabrication services. Off-site construction has long been an operational focus for our operating companies. Off-site construction and controlled shop environment supports safer work conditions, helps us use labor and materials more efficiently and creates more predictable project outcomes. This more predictable project planning results in a strong customer relationships, which helps us grow our business. We have quarterly meetings with our modular prefabrication teams during which we share best practices, and explore ways to increase usage of off-site construction across the organization. The expected acquisition of Epsilon will further expand our capabilities. Epsilon has more than 25 years of experience in providing off-site construction solutions across North America. They are recognized for their innovation, proprietary capabilities and highly refined execution processes that provide consistent, and efficient delivery of complex custom solutions. Epsilon offers a full range of services, including design assist, custom fabrication and turnkey field installation that support diverse project types like data centers, advanced manufacturing and health care. Epsilon has multiple strategic facilities in the U.S. and Canada, enabling nationwide distribution. In addition to integrating with our existing footprint, we expect that Epsilon's footprint will enhance growth in key geographic areas, including Florida, Texas, the Mid-Atlantic and the Northeast. Epsilon is led by a strong leadership team with extensive technical and operational expertise, and has an experienced labor force that includes more than 50 engineers and 120 skilled trace people. We are excited to welcome Epsilon to the Everus team and look forward to another successful integration after the transaction closes later this year. And finally, our focus on disciplined capital allocation. While it took some time, and I know everyone was eagerly waiting for us to begin executing on our inorganic growth strategy, we are very excited we acquired SE&M in April. Our first transaction as a stand-alone public company, and we are thrilled with our recent announcement of the pending Epsilon acquisition. As I already mentioned, the integration of SE&M is on track, and we are already exploring expanded opportunities. They have a fantastic team, and we are grateful to have them be part of the Everus family of companies. We think both SE&M and Epsilon align with the acquisition strategy we previously described which is to expand our geographic footprint, diversify our business and deepen our market presence. Our net leverage is well below our 1.5x to 2x target range which gives us continued flexibility to execute on our growth strategy. Our acquisition pipeline remains active. In summary, we remain encouraged by the sustained market demand trends and are very proud of our continued strong execution. We are performing at a very high level across the organization, both strategically and operationally. Based on our robust first half of the year, we are pleased to be raising our 2026 guidance which Max will discuss in more detail. We remain committed to our 4 EVER strategic priorities and are highly confident in our ability to deliver on our long-term financial goals. With that, I'll turn it over to Max. Maximillian Marcy: Thank you, Jeff, and good morning, everyone. I will provide additional details on the quarter to give an update on our liquidity and balance sheet and wrap up with our updated guidance. Beginning on Slide 11 of the presentation. Record revenues for the second quarter were $1.23 billion, an increase of 34% compared to the same period last year. The increase was driven by growth in both our E&M and T&D segments, including contributions from the recently acquired SE&M. Excluding the contribution from SE&M, revenues were up 30% on an organic basis. Total EBITDA was $128.6 million during the second quarter, an increase of 53% from the same period in 2025 driven by solid revenue growth and continued strong project execution. As a result, our second quarter EBITDA margin was 10.4%, up 130 basis points from 9.1% in the prior year period. On June 30, total backlog was $4.55 billion, up 53% from June 30 of last year. The increase was driven by strong growth in our E&M backlog, which was up 62%, reflecting organic growth across all E&M markets, as well as contributions from SE&M which contributed roughly $100 million to backlog at quarter end. Now turning to segment results. Let's first look at E&M, where our second quarter revenues increased 42% to $1.01 billion. The increase was driven primarily by growth in our commercial and industrial end markets, as well as the addition of SE&M. Excluding SE&M, our E&M revenue was up 37% organically. Our E&M EBITDA was $109.3 million in the second quarter, an increase of 72% compared to second quarter of 2025. The increase was driven by our strong revenue growth and higher gross margin due to project timing and strong project execution. As a result, our E&M segment EBITDA margin was 10.8%, up 190 basis points compared to 8.9% in the second quarter of 2025. Our second quarter T&D revenues were $227.5 million, up 7.1% from second quarter of last year, driven by growth in our utility end market. T&D segment EBITDA was $32.8 million in the second quarter, up 7.9% from the prior year period due to the higher revenues. As a result, T&D segment EBITDA margin was 14.4% during the second quarter compared to 14.3% in the same period last year. Turning to our balance sheet and liquidity. As of June 30, we had $157 million of unrestricted cash and cash equivalents, $278 million of gross debt and $223 million available under the credit facility. Our net debt increased sequentially, reflecting the acquisition of SE&M, partially offset by our strong operating results. Net leverage defined as net debt to trailing 12-month EBITDA was 0.3x as of June 30, well below our 1.5x to 2x targeted range, providing ample flexibility to continue investing in our strategic growth initiatives. Operating cash flows were $196.8 million for the first 6 months of 2026, compared to $32.5 million in the same period last year, due to the strong operating results and favorable working capital timing. CapEx was $35.6 million for the first 6 months of 2026, up modestly from $31.6 million in the prior year period. We generated free cash flow of $167 million for the first 6 months of 2026, up from $6.5 million in the first half of 2025. While our first half free cash flow had some timing benefits, we still expect a more normalized free cash flow conversion through the remainder of the year with our forecasted growth in operating results, largely offset by our higher levels of growth investments. Wrapping up with guidance. Based on our strong first half results, combined with the continued momentum we see across our business, we are raising full year 2026 guidance. We are now forecasting revenues in the range of $4.5 billion to $4.7 billion, and EBITDA in the range of $410 million to $425 million. Our guidance does not include any contribution from the Epsilon acquisition, which we expect to close later this year. At the midpoint of our range, our guidance implies EBITDA margins of around 9% for the year, which reflects the execution upside from the first half, as well as the margin accretion from SE&M. For the balance of the year, our guidance assumes EBITDA margins of around 8.5%. That completes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call. Operator: [Operator Instructions] Your first question from the line of Brent Thielman with Oppenheimer. Brent Thielman: Thanks. Great quarter. I guess first question, Jeff or Max, just on Epsilon. Could you just talk about whether there's a previous relationship there? Maybe the synergies you foresee with the transaction with your existing operations, whether that's from an integration with your field services people or sort of new customer opportunities? Jeff Thiede: Thanks for the question, Brent. We're really excited about Epsilon. They are an excellent upside construction business, and they have a very well-known customer list, and it's grown primarily in the mechanical space. They're going to provide access for us in new geographies through their modular solutions, and there's also going to be potential to add satellite locations to support their business. We're going to see continued growth in the mechanical and cross-selling opportunities in electrical as well, introducing Epsilon and their leadership team into the rest of our company is going to also help us leverage customer list from our current customers and also with theirs. So we see this as a great opportunity for collaboration and to be able to leverage what they do also coupling that with whatever consistently has done to be able to build upon our modular expertise. Brent Thielman: Great. And I guess my follow-on is just on the solid E&M margin performance. I know there's a portion of the business that you approach more on a cost-plus basis, but Jeff, what specifically is driving the higher margins here? Is it more effective leverage of your workforce? Is it performance bonuses? Anything else that you can kind of talk through as we think about kind of margin performance going forward for that segment? Jeff Thiede: Yes. We're always striving to be able to have margin uplift. And our goal, of course, is the 20 to 30 basis points gross margin expansion. And we attribute our margin results to planning the work, making sure we have good deals upfront, contract reviews, good estimates, all of these processes that we put in place and what we call a repeatable playbook. Then the execution safely and productively and building those relationships with the customers really helps us get that repeat business work on similar type projects and improve those margins. And then when you think about the available labor and making sure that we're emphasizing access to labor, training our people, providing the tools and equipment, and information they need that all contributes to the margin performance that we've had for the first half of the year. Operator: Your next question is from Manish Somaiya with Cantor Fitzgerald. Manish Somaiya: Congratulations on a strong quarter as well as the acquisitions so far this year. I had a question, Jeff, Max, specifically on the backlog conversion. The $4.5 billion of backlog, how should we think about the conversion of that in second half '26, '27? How should we think about the margins in that backlog? If you can just give us some sense of how we should think about those things. Jeff Thiede: Yes. Great question, Manish. When we look at our backlog and how much burns off in 12 months, and we look least every quarter. And we're still about that 80% range of backlog that burns up in 12 months. And we look at the work that we're getting and the margins are comparable in what we've seen over prior periods. We'll again focus on our execution to be able to take those backlog numbers and improve upon what we have when we start these projects. Manish Somaiya: And Jeff, on that, have you talked about the data center concentration within E&M backlog? Maybe if you can just kind of give us some sense as to how diversified the backlog is across customers' geography? Jeff Thiede: Sure. Data centers, as we've said before in previous quarters, and it still is the case. It's the largest part of our backlog. And we're executing, and we're doing a great job with data centers. Our goal is to become indispensable to our customers. We do look at customer concentration. But when we look at our largest customer, we're serving them in multiple regions. So we want to make sure that we're still getting the work, negotiating or semi-negotiating the work and serving our current customers but expanding our customer base. When I look at our backlog, sequentially, we have increased backlog in almost every single one of our end markets, which is exciting to me because we talk about diversification, looking at where the best markets are but also the industrial, the institutional renewables, our service work and of course, a utility where all we have seen sequential increases in our backlog. Maximillian Marcy: Yes. I would just add also that the majority of the sequential backlog increase was not in the commercial market. Jeff Thiede: Good point. Manish Somaiya: So I guess, Jeff and Max, just based on everything that you just said, when I look at the long-term expectations that you have on Slide 9, organic revenue growth of 5% to 7%, EBITDA CAGR, 7% to 9%. It just looks way too conservative based on what we're discussing today. I guess, how do you think about potentially revising those or making it a little bit more in line with the outlook? Jeff Thiede: We're experiencing tremendous opportunities in the markets today. And we set our long-term growth targets, that's what they are, is long-term growth targets. We're going to look at those again. Meanwhile, we're going to try to capitalize on the great market conditions we have with our very strategic approach to focus on diversification and execution. Maximillian Marcy: Yes. I mean, that's right, Manish. I mean these are long-term targets, right? This can be a cyclical market, and we're looking at what we can deliver over the long term here. I mean the way we address it in the short term as we provide you kind of annual guidance from where we think the business can do on an annual basis. But then from a long-term perspective, some years will be higher, some years will be lower in the last couple of years. I mean we've only been public for 6 quarters, right? So I think we're delivering in the short term above that right now. But I think over the long term, that's still our targeted framework. Manish Somaiya: And just Max on that is, when you say long term, is it 3 years? Is it 5 years? I mean how are you defining long term? Maximillian Marcy: Yes. It's definitely more than 3 years, right? I mean, it's a cycle, right? So it's probably more than 5 years. Operator: Your next question comes from Brian Brophy with Stifel. Brian Brophy: Congrats on the great quarter. Nice execution, obviously, here in the first half. Curious, the level of visibility you have into healthy project execution in the back half at this point? Jeff Thiede: We look at our projects that we have in our WIP and stay very close to our operating companies, and understanding the forecast of how these projects can function, and how they can provide us results for the back half. And we believe that 8.5% level is more sustainable than we have achieved in the first half. We're always striving for margin uplift through execution, and we'll take that repeatable playbook and continue to reach for those goals. Maximillian Marcy: Yes. And Brian, we did take up the margin percentage guidance in the back half of the year slightly, and that's reflective of visibility we have to project execution. Brian Brophy: Understood. That's helpful. And then maybe just touch on the hospitality end market. How are you thinking about the outlook there in the back half? Jeff Thiede: We've got 4 great companies in Las Vegas. That's primarily where our hospitality work is, and we're involved in a lot of the large projects that are occurring in Las Vegas. We're very well positioned to be able to get future work. And we've got diversification of not just hospitality in Las Vegas, but we're also doing data center work there. We're doing some institutional work along the lines of our electrical, mechanical, fire protection and underground utilities. Operator: Your next comes from the line of Joseph Osha with Guggenheim Securities. Joseph Osha: Thanks for taking my question, there's 2. First, I'm wondering if you can talk a little bit about the semiconductor end market. It seems like your skill set is well suited to fab construction. And then the second question I have, we've talked a lot about acquisitions on the E&M side. What opportunities are there, if any, for inorganic growth on the T&D side? Jeff Thiede: Okay. Super. Yes, the semiconductor market is a market we participated in for 30-plus years. Today, we are serving more customers in more geographies, and we've talked about our additional location satellite office that we have in the Mountain States. That project is ramping. It's going to provide some contribution this year and even through next year. So very pleased with our outlook on semi fab, and we're well positioned to continue having that contribute to our success. As far as the acquisitions on both E&M and T&D, we are looking at both segments to be able to add companies to help diversify our business. And of course, E&M is the largest part of our revenue. But we do support and we are very optimistic on the T&D segment. We'll continue to support our organic growth with capital and look for T&D companies that are going to help us expand through selective and disciplined M&A. Joseph Osha: Just as a quick follow-on, Max. What -- can we assume that ceiling on the leverage here is somewhere between 2.5% to 3%. Is that a fair assumption? Maximillian Marcy: Well, I don't -- I mean, I guess, in our credit agreement, it would be that. But I mean I think we really do want to kind of operate that 1.5% to 2%. I mean even with breast transaction, right? I mean, our leverage will still be in a pretty good place. So I think we -- there's a lot of opportunity to kind of operate and to transact and still stay within that targeted range of 1.5% to 2%. Operator: There are no further questions at this time. I will now turn the call back to Jeff Thiede for closing remarks. Jeff Thiede: Thank you, operator, and thank you all again for joining us today. We will be attending several upcoming investor events, including the Jefferies Conference in New York and the D.A. Davidson Industrials Conference in Nashville. If we are not able to connect during the next few months, we look forward to speaking with you on our next quarterly earnings call. Thank you for your time and your interest in Everus. This concludes today's call. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Everus Construction Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Everus Construction Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Everus Construction (ECG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Everus Construction Group, Inc.? Here are five stocks we like better. Record second-quarter performance: Revenue rose 34% year over year to $1.23 billion, while EBITDA increased 53% to $128.6 million and margins expanded to 10.4%. Growth was broad-based, led by the E&M segment. Backlog and outlook strengthened: Backlog reached $4.55 billion, up 53% from a year earlier, with about 80% expected to convert to revenue within 12 months. Everus raised 2026 guidance to $4.5–$4.7 billion in revenue and $410–$425 million in EBITDA. Expansion through acquisitions: The SE&M integration is progressing, while the planned acquisition of modular construction provider Epsilon Industries is expected to expand Everus’s geographic reach, off-site construction capabilities and cross-selling opportunities. Mid-Cap Marvels: 3 Stocks That Crushed Sales Estimates in May Everus Construction Group (NYSE:ECG) reported record second-quarter revenue and EBITDA as demand remained strong across its electrical and mechanical, or E&M, and transmission and distribution, or T&D, businesses. The company also raised its full-year 2026 revenue and EBITDA guidance following what CEO Jeff Thiede described as sustained market demand, strong project execution and robust backlog growth. Second-quarter revenue totaled $1.23 billion, up 34% from the prior-year period. EBITDA increased 53% to $128.6 million, while EBITDA margin expanded 130 basis points to 10.4%, according to CFO Max Marcy. Excluding the contribution from recently acquired SE&M Constructors, revenue rose 30% organically. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “Our positive momentum continued during the second quarter,” Thiede said, citing growth across both operating segments, execution on projects and continued demand across the company’s markets. Backlog stood at $4.55 billion as of June 30, an increase of 53% from a year earlier. E&M backlog rose 62%, driven by organic growth across all E&M markets and approximately $100 million of backlog contributed by SE&M at quarter-end. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management said it had not experienced project cancellations or notable changes in customer or project activity. Thiede said the company’s data center work remains its largest backlog component, though backlog increased sequentially in nearly all end markets. Marcy added that most of the sequential backlog increase did not come from the commercial market. The company expects roughly 80% of its backlog to convert to revenue within 12 months, consistent with its historical pattern. Thiede said margins on the work in backlog are comparable with those seen in prior periods, while the company will continue seeking improved results through execution. E&M revenue increased 42% to $1.01 billion, or 37% organically excluding SE&M. E&M EBITDA rose 72% to $109.3 million, with segment EBITDA margin increasing 190 basis points to 10.8%. T&D revenue grew 7.1% to $227.5 million, driven by utility-market growth. T&D EBITDA increased 7.9% to $32.8 million, with segment margin of 14.4%, compared with 14.3% a year earlier. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Thiede attributed the E&M segment’s margin performance to planning, contract reviews, estimating, labor availability, employee training and the company’s repeatable operating processes. He said safe and productive project execution, as well as customer relationships that can lead to repeat work, have supported margins. Management said off-site construction, modular construction and prefabrication remain key operational priorities. Thiede said controlled shop environments can support safer working conditions, more efficient use of labor and materials, and more predictable project outcomes. Everus is also pursuing demand in semiconductor construction. Thiede said the company has participated in the semiconductor market for more than 30 years and is currently serving more customers in more geographies. A semiconductor project in the Mountain States, supported by an additional satellite office, is ramping and is expected to contribute this year and into next year, according to management. The company acquired SE&M in April, its first transaction as a standalone public company. Thiede said integration is progressing as planned and that Everus is already exploring expanded opportunities with the business. Everus also announced plans to acquire Epsilon Industries, an off-site modular construction provider with more than 25 years of experience serving North America. The transaction is expected to close later this year and is not included in the company’s updated 2026 guidance. Thiede said Epsilon offers design-assist, custom fabrication and turnkey field installation services for project types including data centers, advanced manufacturing and healthcare. Epsilon has facilities in the U.S. and Canada, and Everus expects the acquisition to enhance its presence in Florida, Texas, the Mid-Atlantic and the Northeast. The business has more than 50 engineers and 120 skilled tradespeople, he said. Management expects Epsilon to provide access to additional geographies through its modular solutions, support mechanical-business growth and create cross-selling opportunities in electrical work. Thiede said the combination could also allow the companies to leverage each other’s customer relationships and modular construction expertise. While E&M accounts for the larger share of Everus revenue, Thiede said the company is evaluating acquisition opportunities in both E&M and T&D. The company is seeking selective, disciplined transactions that can expand its footprint, diversify its operations and deepen its market presence. Everus raised its full-year 2026 outlook, now forecasting revenue of $4.5 billion to $4.7 billion and EBITDA of $410 million to $425 million. At the midpoint, the guidance implies an EBITDA margin of about 9% for the year. Management expects EBITDA margins of about 8.5% for the second half, reflecting a more sustainable level than the first-half result, though Marcy said the company modestly increased back-half margin guidance based on project-execution visibility. As of June 30, Everus had $157 million of unrestricted cash and cash equivalents, $278 million of gross debt and $223 million available under its credit facility. Net leverage was 0.3 times trailing 12-month EBITDA, below the company’s target range of 1.5 times to 2 times. Operating cash flow totaled $196.8 million in the first six months of 2026, compared with $32.5 million a year earlier, while free cash flow reached $167 million, up from $6.5 million in the first half of 2025. Marcy said first-half free cash flow benefited from timing factors, and the company expects more normalized conversion for the remainder of the year as growth investments increase. Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Everus Construction Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record performance was driven by sustained market demand and the application of a repeatable operational playbook, resulting in 34% revenue growth and 130 basis points of EBITDA margin expansion. The acquisition of SE&M and the pending acquisition of Epsilon Industries represent a strategic pivot toward expanding off-site modular construction capabilities to improve safety and labor efficiency. Management attributes margin outperformance to disciplined project planning, including rigorous contract reviews and effective labor management in a tight market. Strategic diversification has shifted focus from legacy markets like hospitality to high-growth sectors including data centers and semiconductor fabrication. The company is leveraging its highly skilled workforce and geographic expansion to become 'indispensable' to hyperscale customers through long-term planning involvement. Backlog growth of 53% was broad-based, with sequential increases across nearly all submarkets, indicating a healthy demand environment beyond just the commercial sector. Full-year 2026 guidance was raised to reflect first-half execution upside, though management assumes a more normalized EBITDA margin of approximately 8.5% for the remainder of the year. The Epsilon acquisition is expected to close later in 2026 and will provide immediate access to new geographies including Florida, Texas, and the Northeast. Backlog conversion remains steady with approximately 80% expected to burn off within the next 12 months at margins comparable to historical periods. Management maintains a long-term growth framework of 5% to 7% organic revenue growth, viewing current outperformance as part of a broader cyclical trend rather than a permanent shift in baseline targets. Future capital allocation will continue to prioritize disciplined M&A in both the E&M and T&D segments to deepen market presence while maintaining a target net leverage of 1.5x to 2x. The SE&M acquisition, the company's first as a standalone public entity, contributed approximately $100 million to the quarter-end backlog. The pending Epsilon acquisition adds significant technical expertise, including over 50 engineers and 120 skilled tradespeople, to the modular construction division. Management noted that while data centers are the largest part of the backlog, they are monitoring customer concentration by diversifying service offerings across multiple regions for the same clients. Free cash flow in the first half benefited from favorable working capital timing, which is expected to normalize as growth investments increase in the second half. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Epsilon provides access to new geographies through modular solutions and offers cross-selling opportunities between mechanical and electrical services. The acquisition allows Everus to leverage Epsilon's well-known customer list while integrating their proprietary fabrication processes into existing operations. Margins are driven by 'planning the work'—specifically good deals upfront, accurate estimates, and repeatable execution processes. Management views the 8.5% margin level as more sustainable for the back half of the year compared to the record highs seen in the first half. While data centers remain the largest component, the majority of the recent sequential backlog increase came from markets outside of the commercial sector. Growth was noted in industrial, institutional, renewables, and utility markets, supporting the company's diversification strategy. Management is actively looking for T&D acquisition targets to help diversify the business, despite E&M currently being the larger revenue contributor. The goal is to use disciplined M&A to expand the T&D footprint while staying within the targeted leverage range.

This article first appeared on GuruFocus. Revenue: Record second-quarter revenues of $1.23 billion, up 34% year-over-year, with organic growth of 30% excluding SE&M contributions. EBITDA: Record second-quarter EBITDA of $128.6 million, up 53% from the prior year period. EBITDA Margin: 10.4% in Q2, up 130 basis points from 9.1% in the prior year period. Backlog: Total backlog of $4.55 billion as of June 30, up 53% year-over-year. E&M Segment Revenue: Increased 42% to $1.01 billion, with organic growth of 37% excluding SE&M. E&M Segment EBITDA: $109.3 million in Q2, up 72% year-over-year, with margin expanding 190 basis points to 10.8%. T&D Segment Revenue: $227.5 million, up 7.1% year-over-year. T&D Segment EBITDA: $32.8 million, up 7.9% year-over-year, with margin of 14.4%. Operating Cash Flow: $196.8 million for the first six months of 2026, up from $32.5 million in the prior year period. Free Cash Flow: $167 million for the first six months of 2026, up from $6.5 million in the first half of 2025. Capital Expenditures: $35.6 million for the first six months of 2026, up from $31.6 million in the prior year period. Net Leverage: 0.3 times as of June 30, well below the 1.5 to 2 times target range. 2026 Guidance: Raised full-year revenue guidance to $4.5 billion to $4.7 billion, and EBITDA guidance to $410 million to $425 million. Warning! GuruFocus has detected 6 Warning Signs with FTCO. Is ECG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record second-quarter revenues of $1.23 billion, up 34% year-over-year, with strong growth across both E&M and T&D segments. EBITDA margin expanded by 130 basis points to 10.4%, driven by strong project execution and operational efficiencies. Backlog reached a record $4.55 billion, up 53% year-over-year, with broad-based growth across nearly all end markets. Announced the acquisition of Epsilon Industries, which will expand off-site modular construction capabilities and geographic footprint. Strong balance sheet with net leverage of 0.3 times, well below the 1.5-2 times target, providing ample flexibility for future M&A. Raised full-year 2026 guidance for revenues ($4.5-$4.7 billion) and EBITDA ($410-$425 million) due to robust first-half performance. Data centers remain the largest part of backlog, indicating potential customer concentration risk despite serving them in multiple regions. Management expects EBITDA margins to normalize to around 8.5% in the second half of 2026, down from the 10.4% achieved in Q2. The Epsilon acquisition is not included in 2026 guidance, creating uncertainty about its near-term financial contribution. Free cash flow in the first half benefited from favorable working capital timing, which is not expected to persist through the remainder of the year. Long-term growth targets of 5-7% organic revenue growth and 7-9% EBITDA CAGR may be considered conservative given current market momentum. The integration of SE&M Constructors is still in progress, and the successful integration of Epsilon remains a key execution risk. Q: Can you discuss the Epsilon acquisition, including any previous relationship, synergies with existing operations, and integration with field services or new customer opportunities? A: Jeff Thiede (CEO): We are very excited about Epsilon, an excellent off-site construction business with a well-known customer list, primarily in the mechanical space. The acquisition provides access to new geographies through their modular solutions and potential for satellite locations. We anticipate continued growth in mechanical and cross-selling opportunities in electrical. Introducing Epsilon's leadership to our company will help leverage both customer lists, creating a great opportunity for collaboration and building upon our modular expertise. Q: What is specifically driving the higher E&M margins, and how should we think about margin performance going forward for that segment? A: Jeff Thiede (CEO): We are always striving for margin uplift, with a goal of 20 to 30 basis points of gross margin expansion. Our results are attributed to planning work upfront, good contract reviews, and accurate estimatesall part of our repeatable playbook. Execution safety, productivity, and building customer relationships help secure repeat business on similar projects, improving margins. Emphasizing access to labor, training, and providing necessary tools also contributes to our first-half margin performance. Q: How should we think about the conversion of the $4.5 billion backlog into revenue in the second half of 2026 and 2027, and what are the margins in that backlog? A: Jeff Thiede (CEO): We review backlog burn-off quarterly, and we are still above the 80% range for backlog burning off in 12 months. The margins on new work are comparable to prior periods, and we will focus on execution to improve upon initial project margins. Q: Can you provide a sense of data center concentration within the E&M backlog and how diversified the backlog is across customers and geography? A: Jeff Thiede (CEO): Data centers remain the largest part of our backlog, and we are executing well in that space. We monitor customer concentration; our largest customer is served in multiple regions. We are expanding our customer base while serving current customers. Sequentially, we have increased backlog in almost every end market, including industrial, institutional, renewables, service, and utility work. Max Marcy (CFO) added that the majority of the sequential backlog increase was not in the commercial market. Q: Given the strong performance, the long-term targets of 5%-7% organic revenue growth and 7%-9% EBITDA CAGR seem conservative. How do you think about potentially revising those targets? A: Jeff Thiede (CEO): We are experiencing tremendous market opportunities, and our long-term growth targets are just thatlong-term. We will review them again, but for now, we are capitalizing on market conditions with a strategic focus on diversification and execution. Max Marcy (CFO) clarified that these are long-term targets over a cycle, likely more than five years, and some years will be higher or lower than the targets. Q: What level of visibility do you have into healthy project execution in the back half of the year? A: Jeff Thiede (CEO): We stay close to our operating companies and understand project forecasts for the back half. We believe the 8.5% EBITDA margin level is more sustainable than what we achieved in the first half. Max Marcy (CFO) added that they slightly raised the margin percentage guidance for the back half, reflecting visibility into project execution. Q: How are you thinking about the outlook for the hospitality end market in the back half? A: Jeff Thiede (CEO): We have four companies in Las Vegas, where most of our hospitality work is concentrated. We are involved in many large projects there and are well-positioned for future work. We also have diversification in Las Vegas beyond hospitality, including data center, institutional, electrical, mechanical, fire protection, and underground utilities work. Q: Can you talk about the semiconductor end market and what opportunities exist for inorganic growth on the T&D side? A: Jeff Thiede (CEO): We have participated in the semiconductor market for over 30 years and now serve more customers in more geographies, including a satellite office in the Mountain States. That project is ramping and will contribute this year and next. Regarding acquisitions, we are looking at both E&M and T&D segments to add companies and diversify. While E&M is the largest revenue segment, we are optimistic about T&D and will support organic growth with capital while looking for selective and disciplined M&A opportunities. Q: Can we assume the ceiling on leverage is between 2.5x and 3x? A: Max Marcy (CFO): While our credit agreement may allow that, we prefer to operate within our targeted range of 1.5x to 2x. Even with the Epsilon transaction, our leverage will remain in a good place, providing ample opportunity to transact while staying within that range. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BISMARCK, N.D., August 04, 2026--(BUSINESS WIRE)--Everus Construction Group (NYSE: ECG) today reported financial results for second quarter 2026. Second Quarter 2026 Summary (All comparisons versus the prior-year period unless otherwise noted, and results denoted with * are quarterly records.) Revenues of $1.23 billion*, up 33.7%. Net income of $83.9 million*, up 58.9%; net income margin of 6.8%. Diluted earnings per share (EPS) of $1.64*, up 59.2%. Earnings before interest, taxes, depreciation and amortization (EBITDA) of $128.6 million*, up 52.7%; EBITDA margin of 10.4%. Backlog of $4.55 billion*, up 41.0% from Dec. 31, 2025, and up 52.8% from June 30, 2025. Net leverage of 0.3x. On July 31, Everus announced that it entered into a definitive agreement to acquire Epsilon Industries. See the Non-GAAP Measures sections for definitions and reconciliations of the non-GAAP financial measures used in this news release. Management Commentary "Our positive momentum continues as sustained demand and strong execution resulted in another quarter of record revenues, margin expansion and robust backlog growth," said Jeffrey S. Thiede, president and CEO of Everus. "Second quarter revenues increased 34%, including 30% organic growth driven by both E&M and T&D. EBITDA increased 53% with strong project execution thanks to our dedicated team across the country who are safely Building America's Future. "Demand for our services remains robust, and we believe we are well positioned to benefit as evidenced by project bookings of more than $2 billion in the quarter, resulting in record backlog up 53% year over year to $4.6 billion. We see continued strength across our diverse markets, including the data center, hospitality and high tech submarkets. "We are making important progress on our key growth initiatives, highlighted by the recently announced acquisition of Epsilon Industries; the on-track integration of SE&M Constructors, which was acquired in the second quarter; and the ramp-up of the initial project in the new geography we entered last year. We look forward to closing on the acquisition of Epsilon, which will significantly expand our off-site modular construction and prefabrication capabilities, extend our geographic reach, strengthen our position in key end markets and enable efficient growth. We continue to maintain ample financial flexibility for our organic growth initiatives and acquisition opportunities. "With our strong performance in the first half of the year and continued robust demand across our business, we are raising guidance on our full-year outlook. We now expect revenues to be in the range of $4.5 billion to $4.7 billion and EBITDA in the range of $410 million to $425 million. We are confident that our commitment to our 4EVER strategic priorities position us to deliver another year of profitable growth and value for our shareholders." Second Quarter 2026 Consolidated Results Revenues increased 33.7% to $1.23 billion in the second quarter of 2026, compared to $921.5 million in the second quarter of 2025. Excluding the contribution from the acquisition of SE&M, revenues increased 30.0% on an organic basis in the second quarter of 2026. Electrical and mechanical (E&M) revenues expanded $296.7 million, or 41.6%, and transmission and distribution (T&D) revenues were up $15.1 million, or 7.1%. Gross profit increased 52.6% to $183.0 million in the second quarter of 2026, compared to $119.9 million in the second quarter of 2025. The increase was primarily from revenue growth and gross margin improvement due to increased workloads, solid project execution and project timing. Gross margin was 14.9% in the second quarter of 2026, up compared to 13.0% in the second quarter of 2025. Selling, general and administrative (SG&A) expenses increased 50.2% to $71.2 million in the second quarter of 2026, compared to $47.4 million in the second quarter of 2025. The increase was primarily from higher labor expenses to support operational growth and performance and higher amortization expenses from the SE&M acquisition, along with higher other SG&A expenses. Net income increased 58.9% to $83.9 million, or diluted EPS of $1.64, in the second quarter of 2026, compared to $52.8 million, or diluted EPS of $1.03, in the second quarter of 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses and higher income taxes on greater pretax income. Net income margin was 6.8% in the second quarter of 2026, up compared to 5.7% in the second quarter of 2025. EBITDA increased 52.7% to $128.6 million in the second quarter of 2026, compared to $84.2 million in the second quarter of 2025. The increase was primarily from higher gross profit, partially offset by higher SG&A expenses. EBITDA margin was 10.4%, up compared to 9.1% in the second quarter of 2025. Backlog increased to $4.55 billion as of June 30, 2026, up 41.0% compared to $3.23 billion as of Dec. 31, 2025, and up 52.8% compared to $2.98 billion as of June 30, 2025. Second Quarter 2026 Segment Results Electrical and Mechanical E&M segment revenues increased 41.6% to $1.01 billion in the second quarter of 2026, compared to $713.6 million in the second quarter of 2025. Excluding the contribution from the acquisition of SE&M, E&M segment revenues increased 36.9% on an organic basis in the second quarter of 2026. The increase in revenues was primarily driven by higher revenues in the commercial and industrial end markets, particularly continued growth in the data center submarket, partially offset by lower revenues in the institutional end market. E&M segment net income increased 70.4% to $80.6 million in the second quarter of 2026, compared to $47.3 million in the second quarter of 2025. The increase was primarily driven by segment revenue growth and gross margin improvement due to project timing and efficient project execution, partially offset by higher SG&A expenses, particularly labor; amortization from the SE&M acquisition; and higher income taxes on greater pretax income. E&M segment net income margin was 8.0%, up compared to 6.6% in the second quarter of 2025. E&M segment EBITDA increased 71.6% to $109.3 million in the second quarter of 2026, compared to $63.7 million in the second quarter of 2025. The increase was primarily driven by segment revenue growth and higher gross profit due to project timing and efficient project execution, partially offset by higher SG&A expenses as previously mentioned. E&M segment EBITDA margin was 10.8%, up compared to 8.9% in the second quarter of 2025. E&M backlog increased to $4.16 billion as of June 30, 2026, up 46.4% compared to $2.84 billion as of Dec. 31, 2025, and up 62.1% compared to $2.57 billion as of June 30, 2025. Transmission and Distribution T&D segment revenues increased 7.1% to $227.5 million in the second quarter of 2026, compared to $212.4 million in the second quarter of 2025. The increase was primarily driven by higher workloads in the utility end market, particularly in the transmission and distribution submarkets, partially offset by lower revenues in the transportation end market. T&D segment net income increased 7.3% to $19.1 million in the second quarter of 2026, compared to $17.8 million in the second quarter of 2025. The modest increase was primarily driven by segment revenue growth and stable gross margin. T&D segment net income margin was 8.4%, on par with the second quarter of 2025. T&D segment EBITDA increased 7.9% to $32.8 million in the second quarter of 2026, compared to $30.4 million in the second quarter of 2025. The increase was primarily driven by higher revenues and consistent gross margin. T&D segment EBITDA margin was 14.4%, up compared to 14.3% in the second quarter of 2025. T&D backlog increased to $388.4 million as of June 30, 2026, up 1.0% compared to $384.5 million as of Dec. 31, 2025, and compared to $410.1 million as of June 30, 2025. Six Months Ended June 30, 2026, Consolidated Results Revenues increased 29.8% to $2.27 billion for the six months ended June 30, 2026, compared to $1.75 billion for the six months ended June 30, 2025. Excluding the contribution from the acquisition of SE&M, revenues increased 27.9% on an organic basis for the six months ended June 30, 2026. E&M revenues rose $483.6 million, or 35.5%, and T&D revenues grew $34.5 million, or 8.7%. Gross profit increased 47.7% to $313.7 million for the six months ended June 30, 2026, compared to $212.4 million for the six months ended June 30, 2025. The increase was primarily from revenue growth and gross margin improvement due to increased workloads, solid project execution and project timing. Gross margin was 13.8% for the six months ended June 30, 2026, up compared to 12.2% for the six months ended June 30, 2025. SG&A expenses increased 39.7% to $124.2 million for the six months ended June 30, 2026, compared to $88.9 million for the six months ended June 30, 2025. The increase was primarily driven by higher labor to support the operational growth and performance of the business, higher amortization expenses from the SE&M acquisition and higher other SG&A expenses. Net income increased 58.9% to $142.2 million, or diluted EPS of $2.78, for the six months ended June 30, 2026, compared to $89.5 million, or diluted EPS of $1.75, for the six months ended June 30, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses and higher income taxes on greater pretax income. Net income margin was 6.3% for the six months ended June 30, 2026, up compared to 5.1% for the six months ended June 30, 2025. EBITDA increased 49.0% to $217.5 million for the six months ended June 30, 2026, compared to $146.0 million for the six months ended June 30, 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses. EBITDA margin was 9.6% for the six months ended June 30, 2026, up compared to 8.4% for the six months ended June 30, 2025. Balance Sheet and Cash Flow Commentary Balance Sheet As of June 30, 2026, the company had $157.4 million of unrestricted cash and cash equivalents and $277.5 million of gross debt, compared to $152.7 million and $285.0 million, respectively, as of Dec. 31, 2025. As of both June 30, 2026, and Dec. 31, 2025, the company had $222.8 million available under the revolving credit facility, net of $2.2 million of outstanding standby letters of credit. Net leverage, defined as net debt-to-trailing 12-month EBITDA, was 0.3x as of June 30, 2026, compared to 0.4x as of Dec. 31, 2025. Working capital, defined as current assets minus current liabilities, was $546.4 million as of June 30, 2026, compared to $560.2 million as of Dec. 31, 2025. The working capital changes were driven by the SE&M acquisition, project timing, workload activity and billing fluctuations, primarily from increased contract liabilities and accounts payables, partially offset by increased receivables. Cash Flow Operating cash flows were $196.8 million for the six months ended June 30, 2026, compared to $32.5 million for the six months ended June 30, 2025. The increase was primarily from favorable changes in operating assets and liabilities to support company growth, including revenue growth, and increased operating results. Capital expenditures were $35.6 million for the six months ended June 30, 2026, compared to $31.6 million for the six months ended June 30, 2025. The increase was primarily from increased vehicle and equipment investments to support the company's growth, partially offset by a prefabrication-related investment during the first quarter of 2025. Everus had free cash flow of $167.0 million for the six months ended June 30, 2026, compared to $6.5 million for the six months ended June 30, 2025. The increase was primarily from higher operating cash flows, partially offset by higher net capital expenditures. Investing cash flows included net cash outflows of $147.6 million related to the SE&M acquisition for the six months ended June 30, 2026. Forecast for 2026 As a result of strong first-half results and the SE&M acquisition, Everus is raising its revenues and EBITDA guidance and now expects: Revenues to be in the range of $4.5 billion to $4.7 billion, updated from $4.3 billion to $4.4 billion. EBITDA to be in the range of $410 million to $425 million, updated from $345 million to $360 million. Everus still expects gross capital expenditures to be in the range of $90 million to $100 million, representing between 1.9% to 2.2% of forecasted revenues, consistent with the company's long-term framework. Non-GAAP Financial Measures Throughout this news release, Everus presents financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), as well as non-GAAP financial measures, including organic revenues, organic revenue growth, EBITDA, EBITDA margin, net debt, net leverage and free cash flow, and, in some cases, applicable measures by segment. The use of these non-GAAP financial measures should not be construed as alternatives to revenues, revenue growth, net income, net income margin, total debt, gross leverage and cash provided by (used in) operating activities. Everus believes the use of these non-GAAP financial measures is beneficial in evaluating the company's financial performance. Please refer to the Non-GAAP Financial Measures sections contained in this news release for additional information. Conference Call Management will discuss Everus' second quarter 2026 results on a webcast at 11:00 a.m. EDT Aug. 5. The webcast and accompanying presentation materials can be accessed at investors.everus.com by selecting "Events & Presentations" and "Everus Q2 Earnings Call." The webcast also can be directly accessed at https://events.q4inc.com/attendee/396101388. After the conclusion of the webcast, a replay will be available at the same location. About Everus Construction Group Everus Construction Group, Inc., a member of the S&P SmallCap 600® index, is Building America's Future® by providing a full spectrum of construction services through its electrical and mechanical, and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to commercial, industrial, institutional, renewables, service, transportation, utility and other customers. Its E&M contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its T&D contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as the manufacture and distribution of transmission line construction equipment. For more information about Everus, visit everus.com or email [email protected]. Forward-Looking Statements Information in this news release includes certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this news release, including statements about the company's future performance, financial guidance, long-term targets and statements made by the CEO, are expressed in good faith and are believed by the company to have a reasonable basis. This news release highlights key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company’s segments. Many of these highlighted statements and other statements not historical in nature are "forward-looking statements." Although the company believes that its expectations are based on reasonable assumptions as of the date they are made, there is no assurance that the company’s projections, including estimates for growth, shareholder value creation and financial guidance, will be achieved. Readers are encouraged to refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A. Risk Factors in the company's most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake any obligation 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. Backlog Backlog is a common measurement in the construction services industry. Everus' determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed-upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog also may be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond Everus' control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the following backlog table, Everus did not experience any material impacts related to delays or cancellations of planned projects included in backlog. The timing of contract awards, including contracts awarded pursuant to master service agreements, duration of large new contracts and the mix of services, can significantly affect backlog. Backlog at any given point in time may not accurately represent revenue or net income realized in any period, and backlog as of the end of the year may not be indicative of revenue or net income expected to be realized in the following year. Backlog should not be relied upon as a stand-alone indicator of future results. The following table provides estimated backlog as of the dates indicated: Everus Construction Group, Inc. Non-GAAP Financial Measures (Unaudited) In addition to information prepared in accordance with GAAP, the company evaluates revenue and operating performance using the non-GAAP financial measures of organic revenue, organic revenue growth, EBITDA, EBITDA margin, net debt and net leverage, and, in some cases, applicable measures by segment, and evaluates its liquidity using the non-GAAP financial measure of free cash flow. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as substitutes for an analysis of the company's results as reported under GAAP. Because of these limitations, organic revenue, organic revenue growth, EBITDA, EBITDA margin, net debt, net leverage and free cash flow should not be considered as replacements for revenue, revenue growth, net income, net income margin, total debt, gross leverage and cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. 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, net debt, net leverage and free cash flow having the same or similar names. Organic Revenues and Organic Revenue Growth Everus uses organic revenues and organic revenue growth to measure its revenue performance on a consistent basis compared to prior periods. The company believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of revenues and revenue growth, are useful to investors as they provide a basis for consistently comparing revenues and revenue growth with prior periods and peer companies. Organic revenues are defined as revenues, excluding the impact of acquisitions and divestitures in the past 12 months. Organic revenue growth is calculated by dividing the difference between current-year organic revenues and prior-year organic revenues by prior-year organic revenues. The following table reconciles revenues to organic revenues and provides organic revenue growth, and by segment. EBITDA and EBITDA Margin Everus utilizes EBITDA and EBITDA margin to consistently assess its operating performance and as a basis for strategic planning and forecasting since the company believes EBITDA closely correlates to long-term enterprise value. Everus believes that measuring performance on an EBITDA basis is useful to investors because it enables a more consistent evaluation of its period-to-period operational performance. Everus also believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of net income and net income margin, are useful to investors and provide meaningful information about operational efficiency by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Investors also may use EBITDA to calculate leverage as a multiple of EBITDA. Management uses EBITDA and EBITDA margin, in addition to GAAP metrics, to evaluate the company's operating results, calculate compensation packages and determine leverage as a multiple of EBITDA to establish the appropriate funding of operations. EBITDA is calculated by adding back interest expense, net of interest income, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues. The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin. The following tables reconcile net income to EBITDA by segment. The following table provides EBITDA and the calculation of EBITDA margin by segment. Net Debt and Net Leverage Everus uses net debt and net leverage as a measure of assessing its borrowing capacity and achieving its optimal capital structure. The company believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of total debt and gross leverage, are useful to investors because they provide insight into how long it would take the company to pay back its debt if net debt and EBITDA were constant. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing 12-month EBITDA. The following table provides the reconciliations of trailing 12-month EBITDA as of June 30, 2026, and Dec. 31, 2025. The following table provides the reconciliations of net leverage as of June 30, 2026, and Dec. 31, 2025. Free Cash Flow Everus uses free cash flow as a measure of liquidity that indicates how much cash the company can produce after taking cash outflows from operations and assets into consideration. The company believes this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about the company’s financial health and ability to generate cash, support additional debt obligations, pay potential future dividends and fund growth. Free cash flow does not represent residual cash flow available for discretionary purposes. Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures. The following table provides reconciliations of cash provided by operating activities to free cash flow. Non-GAAP Financial Guidance Everus has completed its preliminary purchase price allocation for the SE&M acquisition, but these amounts are dependent upon, among other things, finalizing the fair values of acquired tangible and intangible assets, which are inherently uncertain and subject to material change as Everus completes its valuation work during the measurement period. Everus is still gathering the necessary information for these disclosures and, as a result, is unable to estimate these amounts with a reasonable degree of accuracy at this time. Therefore, Everus is unable to provide a reconciliation of its forward-looking non-GAAP financial guidance relating to full-year 2026 EBITDA without unreasonable efforts. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804019972/en/ Contacts Media Contact Laura Lueder, director of communications, 701-221-6444 Investor Contact Paul Bartolai, Vallum Advisors, [email protected]

Everus Construction Group, Inc. (ECG) came out with quarterly earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.1 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +49.09%. A quarter ago, it was expected that this company would post earnings of $0.76 per share when it actually produced earnings of $1.14, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Everus Construction Group, Inc., which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $1.23 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 14.19%. This compares to year-ago revenues of $921.47 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Everus Construction Group, Inc. shares have added about 55% since the beginning of the year versus the S&P 500's gain of 11%. While Everus Construction Group, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Everus Construction Group, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.11 on $1.13 billion in revenues for the coming quarter and $4.39 on $4.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Amrize Ltd (AMRZ), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +18%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Amrize Ltd's revenues are expected to be $3.37 billion, up 4.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Everus Construction Group, Inc. (ECG) : Free Stock Analysis Report Amrize Ltd (AMRZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Everus Construction Group, Inc.? Here are five stocks we like better. Everus Construction Group posted a strong Q1, with revenue up 25% to $1.04 billion and EBITDA up 44% to $88.9 million. Margins improved as the company said execution was strong across both major business segments. Both core units grew: E&M revenue rose 29% and T&D revenue increased 10.5%, with backlog also climbing in both segments. Management highlighted data center, utility, and transmission work as key drivers. The company completed its first acquisition as a standalone public company with SE&M, which expands its Southeast presence and adds mechanical, electrical, and plumbing exposure. Everus also raised full-year 2026 guidance to $4.3 billion-$4.4 billion of revenue and $345 million-$360 million of EBITDA. Mid-Cap Marvels: 3 Stocks That Crushed Sales Estimates in May Everus Construction Group (NYSE:ECG) reported a strong start to 2026, with first-quarter revenue and EBITDA rising sharply from the prior-year period as growth continued across both of its main business segments. President and CEO Jeff Thiede said the company delivered “another quarter of record revenues,” maintained strong project execution and completed its first acquisition as a standalone public company with the purchase of SE&M. The company also raised its full-year 2026 outlook, citing its first-quarter performance and the expected contribution from SE&M. → Wells Fargo’s Comeback Is Real—But Not Risk-Free “We are very pleased with our strong start to the year,” Thiede said, pointing to growth in the company’s Electrical & Mechanical, or E&M, and Transmission & Distribution, or T&D, segments. CFO Max Marcy said first-quarter revenue rose 25% year over year to $1.04 billion. Total EBITDA increased 44% to $88.9 million, driven by revenue growth, strong project execution and favorable weather. EBITDA margin improved to 8.6%, up from 7.5% in the same period last year. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Thiede attributed the margin performance to the company’s operating discipline and its approach to project execution. He said Everus focuses on delivering work safely, on time and on budget across more than 40,000 projects annually. “While the positive project closeouts get attention, it is our broader execution across all 40,000-plus projects we do in a one year that enables us to deliver execution upside,” Thiede said. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom Everus ended the quarter with backlog of $3.68 billion, up 20% from March 31 of last year. Management said backlog growth was broad-based, with gains across both E&M and T&D. In the E&M segment, first-quarter revenue increased 29% to $835.1 million. Marcy said the increase was primarily driven by growth in the commercial market, including continued strength in the data center submarket. E&M EBITDA rose 52% to $75.3 million, while segment EBITDA margin increased to 9% from 7.6% a year earlier. In T&D, first-quarter revenue increased 10.5% to $204.4 million. Marcy said growth was driven by the utility end market and limited weather disruptions early in the year. T&D EBITDA rose 35% to $27.1 million, and segment EBITDA margin improved to 13.3% from 10.9% in the prior-year period. The company said T&D backlog increased 10% year over year, supported by transmission and undergrounding work. E&M backlog rose 22%, reflecting growth in data centers, hospitality and the first larger work tied to a new geography Everus entered last year. Thiede called the acquisition of SE&M a key development in Everus’ capital allocation and growth strategy. SE&M is headquartered in North Carolina and provides mechanical, electrical and plumbing services, with about two-thirds of revenue from mechanical services. More than 60% of its revenue comes from service work and renovation and retrofit projects, according to Thiede. Everus said SE&M expands its presence in the Southeast and adds exposure to markets including pharma, healthcare and complex industrial. Thiede said SE&M’s leadership team, including Zack Bynum, Patrick Rogers and Alex Bynum, is remaining with the company. “While it has only been a few weeks since the deal closed, integration is on track, and they are fitting in nicely with our team,” Thiede said. Marcy said SE&M generated $109 million of revenue in 2025 with a high-teens EBITDA margin. During the question-and-answer portion of the call, he said SE&M is forecast to contribute between mid-teens and high teens of EBITDA in 2026 and that contribution accounts for most of the company’s guidance increase. He also said investors could assume “some mid to high” percentage revenue growth for SE&M, while maintaining previously disclosed margins. Everus raised its full-year 2026 guidance to revenue of $4.3 billion to $4.4 billion and EBITDA of $345 million to $360 million. At the midpoint, Marcy said the outlook implies an EBITDA margin of 8.1%, reflecting first-quarter execution upside and margin accretion from SE&M. For the remainder of the year, Marcy said guidance assumes EBITDA margins “right around 8%” for the legacy business. He also noted that the company expects more muted seasonal patterns in 2026 because of the shift in revenue mix toward E&M. “We did not really see any seasonal dip in the first quarter,” Marcy said. “We don’t really expect much of a seasonal step-up through the year.” Everus reported $275 million of unrestricted cash and cash equivalents as of March 31, along with $281.2 million of gross debt and $222.8 million available under its credit facility. Marcy said the company had virtually no net debt at the end of the first quarter. After completing the SE&M transaction on April 2, pro forma net leverage was approximately 0.5 times. Operating cash flow was $143.7 million in the first quarter, compared with $7.1 million in the year-earlier period. Free cash flow was $131.9 million, compared with a use of cash of $8.1 million in the first quarter of 2025. Marcy said the first-quarter cash flow reflected timing benefits and that the company still expects more normalized free cash flow conversion for the full year. During the call, Thiede emphasized the company’s preference for a balanced mix of contract types. He said Everus remains roughly balanced between fixed-price and cost-plus work, and that cost-plus contracts can help mitigate risk on large, complex projects where scope and design may not be fully known early in the process. “Our primary focus is steady margin improvement and no surprises,” Thiede said. Asked about new geographic expansion, Thiede said the company expects additional awards as the referenced high-tech project continues to develop. He said Everus entered the region with an anchor project, a long-term general contractor relationship and a new end user, and is looking for additional business in that geography. On utility demand tied to large data centers and AI infrastructure trends, Thiede said Everus is seeing increased opportunities in transmission. He said transmission backlog increased sequentially during the quarter, but the company will remain selective and focus on projects in core geographies where it has available resources. Asked about labor availability, Thiede said qualified labor has “always been a challenge,” but the company continues to emphasize outreach, orientation, training and development. He said Everus is confident it can scale its workforce to support growth. Thiede said the company remains encouraged by momentum from 2025 and confident in its long-term financial goals. Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Everus Construction Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Everus Construction Group, Inc. has now reported its past first-quarter 2026 results, posting sales of US$1,036.95 million and net income of US$58.32 million, with basic and diluted EPS from continuing operations of US$1.14, all higher than the same period a year earlier. The strong earnings beat versus analyst expectations, combined with earlier announcements of large new infrastructure contracts and continued demand for power and data-center projects, highlights how Everus is benefiting from complex, higher-value work across its core end markets. With this earnings outperformance and rising contribution from large infrastructure contracts, we’ll now examine how this shapes Everus’ investment narrative. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. To own Everus, you have to believe that complex power, data center and infrastructure work will keep filling its order book and support healthy margins. The key near term catalyst is how fast new large contracts convert into revenue, while the biggest risk is that data center and mega project demand cools or timing turns less favorable. The latest earnings beat reinforces the positive side of that equation rather than materially changing the risk profile. The most relevant recent development here is Everus’ strong first quarter 2026 earnings beat, with US$1,036.95 million in sales and US$1.14 in EPS versus lower analyst expectations. That upside, paired with earlier multi billion infrastructure awards, strengthens the case that Everus is currently executing well on higher value projects, which ties directly to the short term catalyst of project mix and margins that investors are watching closely. Yet against this strong quarter, investors should still be aware of how quickly today’s robust data center and mega project pipeline could... Read the full narrative on Everus Construction Group (it's free!) Everus Construction Group's narrative projects $4.3 billion revenue and $220.5 million earnings by 2028. This requires 7.2% yearly revenue growth and a $39.5 million earnings increase from $181.0 million today. Uncover how Everus Construction Group's forecasts yield a $105.67 fair value, a 37% downside to its current price. Some of the most optimistic analysts were already penciling in revenue of about US$5.3 billion and earnings near US$297 million by 2029, so this earnings beat could either reinforce that upbeat view or prompt a rethink, depending on whether you see the current US$3.23 billion backlog as a springboard or a source of execution and capital allocation risk. Explore 4 other fair value estimates on Everus Construction Group - why the stock might be worth as much as $137.20! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Everus Construction Group research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free Everus Construction Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Everus Construction Group's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Capitalize on the AI infrastructure supercycle with our selection of the 39 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Rare earth metals are the new gold rush. Find out which 31 stocks are leading the charge. Outshine the giants: these 19 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ECG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]