Everus Construction Group, Inc. (ECG) | The Buildout — AI Infrastructure
The Verdict
Everus Construction Group is a specialty construction services provider. Its Electrical & Mechanical segment builds and maintains electrical, mechanical, fire suppression, and renewables systems; its Transmission & Distribution segment builds and maintains overhead and underground electrical, gas, and communication infrastructure. The AI buildout depends on this physical execution layer because data centers and semiconductor fabs require skilled electrical and mechanical construction, modular/prefabrication, and maintenance.
| Market Cap | — |
| Revenue (TTM) | $4.0B |
| Revenue Growth | +29.7% |
| EBITDA Margin (TTM) | 8.1% |
| Net Debt | $69M |
| Earnings Beats | 6 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- Q2 2026 revenue was a record $1.23 billion, up 33.7% year over year and about 30% organically excluding SE&M.
- Backlog reached a record $4.55 billion, up 53% year over year; E&M backlog rose 62%, with SE&M contributing only about $100 million.
- E&M revenue rose 42% year over year to $1.01 billion, and E&M EBITDA rose 72% to $109.3 million at a 10.8% margin.
- Net leverage was 0.3x at June 30, 2026, below the stated 1.5x–2.0x target range.
- FY2026 guidance was raised twice: the revenue midpoint moved from about $4.15 billion to $4.60 billion, and the EBITDA midpoint from about $327.5 million to $417.5 million.
What We’re Watching
- Management's own balance-of-year guide assumes about 8.5% EBITDA margins, below Q2's 10.4%; this tests whether first-half margin strength was timing.
- Concentration: one E&M customer was 23.6% of E&M revenue in Q1 2026, and one customer was 19.7% of total trade receivables.
- Epsilon Industries is expected to close later in 2026 but is excluded from 2026 guidance; its 2027 contribution and integration remain open.
- Qualified labor remains a stated challenge as organic revenue grows near 30%.
The thesis is strengthening on execution: record Q2 revenue and backlog, a first acquisition closed, a second pending, and low leverage all arrived in the same quarter. The open question is durability—management tempers the headline margin, pointing the back half toward about 8.5%, while the largest E&M customer remains a concentrated exposure.
Earnings Beat
Q2 2026 revenue was a record $1.23 billion, up 33.7% year over year and about 30% organically excluding SE&M. EBITDA rose 53% to $128.6 million, with EBITDA margin at 10.4%, up 130 basis points from 9.1%. Net income rose 58.9% to $83.9 million.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.0B | $1.0B | $827M | +25.5% |
| Gross margin | 12.6% | 11.6% | 11.2% | +140bps |
| EBITDA | $86M | $76M | $58M | +48.2% |
| EPS | $1.14 | $1.08 | $0.72 | +58.5% |
| Backlog | $4.55B | $3.68B | n/a | +53% y/y |
| E&M revenue | $1.01B | $835.1M | n/a | +42% y/y |
We have not experienced any project cancellations or notable changes in activity with our customers or projects.— Jeff Thiede, CEO, August 5, 2026
Management tone: Management's tone on the Q2 call was measured but confident. It emphasized record revenue, meaningful margin expansion, and robust backlog growth, while directly cautioning that Q2's 10.4% EBITDA margin was not the run-rate and guiding the balance of year to about 8.5%.
Management Guidance
Management raised FY2026 guidance to revenue of $4.5 billion–$4.7 billion and EBITDA of $410 million–$425 million, excluding any Epsilon Industries contribution. At the midpoint, the guide implies about 9% EBITDA margin for the full year; management assumes about 8.5% for the balance of the year and more normalized free cash flow conversion.
Trajectory
In the audited trailing quarters through Q1 2026, revenue moved from $922 million in Q2 2025 to $1,037 million in Q1 2026, with quarterly sequential advances ranging from about 2.5% to 7.1% and EBITDA margins between 7.6% and 8.6%. The Q2 call then reported $1.23 billion of revenue and a 10.4% EBITDA margin, driven primarily by E&M commercial and industrial work, while management emphasized the back half should not be read as a new run-rate.
The Model
The model projects FY+1 revenue of $4,400 million and EBITDA of $361 million, an 8.2% margin. For FY+2, it projects revenue of $4,900 million and EBITDA of $416 million, an 8.5% margin. Near-term revenue runs below management's post-Q2 2026 revenue guide, while the FY+2 step implies continued growth off the current backlog base and a modest margin expansion from 8.2% to 8.5%.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $3.7B | $4.4B | $4.9B |
| YoY Growth | — | +17.4% | +11.4% |
| EBITDA | $294M | $361M | $416M |
| EBITDA Margin | 7.8% | 8.2% | 8.5% |
Projections are the median of 5 independent model runs. The model’s revenue sits 1.6% above analyst consensus.
Management raised FY2026 guidance to revenue of $4.5 billion–$4.7 billion and EBITDA of $410 million–$425 million, excluding any Epsilon Industries contribution. At the midpoint, the guide implies about 9% EBITDA margin for the full year; management assumes about 8.5% for the balance of the year and more normalized free cash flow conversion.
What Could Go Right — and Wrong
- Bookings continue to outpace revenue, and the $4.55B backlog grows organically rather than through SE&M's $100M contribution.
- New backlog converts at comparable margins; management said margins in new awards are comparable to prior periods.
- SE&M delivers mid-teens-to-high-teens EBITDA margin and grows off its $109M 2025 revenue base.
- Epsilon closes later in 2026 and adds off-site modular construction, more than 50 engineers, and 120 skilled tradespeople.
- The Mountain States semiconductor project produces follow-on awards and becomes a permanent new geography.
- Back-half EBITDA margins land below the guided ~8.5% as first-half timing reverses more than expected.
- The largest E&M customer or hyperscaler group slows orders, reversing the broad backlog build.
- Qualified labor scarcity becomes project delays or execution margin erosion.
- SE&M or Epsilon integration consumes management attention and misses its stated margin or growth assumptions.
- Fixed-price work in new geographies incurs cost overruns, as happened with Primoris's solar projects in unfamiliar geographies.
Looking Ahead
The next 12 months center on whether a record $4.55 billion backlog, of which about 80% burns off within 12 months, converts at disciplined margins while two acquisitions are absorbed. Key markers are the expected close of Epsilon Industries later in 2026, follow-on awards from the Mountain States semiconductor anchor through 2027, and any revision to the company's long-term target framework.
- Next quarterly earnings callQ3 bookings and margins — Tests broad sequential backlog build and ~8.5% back-half EBITDA margin.
- Later in 2026Epsilon Industries close — Tests off-site modular integration; 2026 guide excludes Epsilon contribution.
- Full year 2026FY2026 guidance delivery — Revenue $4.5B–$4.7B; EBITDA $410M–$425M; ex-Epsilon.
- 2026–2027Mountain States semiconductor follow-on awards — Tests whether first anchor award expands into a permanent geography.
- OngoingM&A pipeline next announcement — 0.3x net leverage vs 1.5x–2.0x target provides deal capacity.
- No date givenLong-term target framework review — Management says it will look again at 5–7% organic growth and 7–9% EBITDA CAGR targets.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $2.8B | $3.7B | $4.0B | +31.5% |
| Gross Margin | 11.9% | 12.1% | 12.4% | +17bps |
| EBITDA | $215M | $294M | $818M | +36.4% |
| EBITDA Margin | 7.6% | 7.8% | 8.1% | +29bps |
| Net Income | $144M | $202M | $223M | +40.6% |
| Free Cash Flow | $117M | $90M | $471M | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)12.4%
- EBITDA Margin (TTM)8.1%
- Net Margin (TTM)5.6%
- ROIC30.5%
- FCF Conversion71.4%
- SBC / Revenue0.2%
The Company
Everus Construction Group provides specialty electrical, mechanical, and transmission/distribution construction and maintenance across the U.S. Its E&M segment builds electrical and communication wiring, fire suppression systems, renewables infrastructure, and mechanical piping; its T&D segment builds and maintains overhead and underground electrical, gas, and communication infrastructure and also makes and rents line-stringing equipment. Management describes data centers as the largest part of its backlog, and the company is building semiconductor/high-tech work in a new Mountain States geography.
The business operates through 15 wholly owned companies and 19 local brands, with 18 owned facilities in 10 states and leased properties in 13 states. It also has modular prefabrication capacity, including the Kansas City FreeFab facility, and is adding off-site modular construction capacity through the pending Epsilon Industries acquisition.
Business Segments
Competitive Landscape
ECG's 10-K names a long list of publicly traded and private U.S. construction-services competitors, including Comfort Systems, EMCOR, IES Holdings, MasTec, MYR Group, Primoris, Quanta, and Sterling. The source material does not benchmark ECG's share or win rates; its competitive position rests on execution, relationships, skilled labor, and national reach rather than proprietary technology.
- Named in ECG's 10-K as a competitor.
- Named in ECG's 10-K as a competitor.
- Named in ECG's 10-K as a competitor.
- Named in ECG's 10-K as a competitor.
- Named in ECG's 10-K as a competitor.
Supply Chain
ECG sits in the physical construction layer: it buys materials and equipment and installs them for project owners and general contractors. No neighboring transcript in the source set directly named Everus by name; supplier and customer links are inferred from market overlap.
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