Everus Construction Group, Inc. (ECG) AI Stock Analysis

• Market Cap: $3.08B
• Dividend Yield: N/A
• Average Volume (3M): 615.16K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 2.18
• Revenue Growth: 11.92%
• EPS Growth: 8.94%
• Country: US
• Employees: 8,700
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.72
• Shares Outstanding: 50,999,580
• 10 Day Avg. Volume: 324,309
• 30 Day Avg. Volume: 615,161
• PEG Ratio: 1.43
• Price to Book (P/B): 6.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -40.72
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 7.84
• Enterprise Value/Ebitda: 4.31
• 1Y Price Target: $56.50
• Price Target Upside: -5.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $67.00 ▲(12.53%Upside)

Everus Construction Group, Inc. demonstrates strong financial performance with stable revenue and profitability. The positive outlook from the earnings call supports future growth prospects. However, technical indicators suggest bearish momentum, and increased leverage poses risks. Valuation is reasonable but lacks dividend appeal. Overall, the stock is moderately attractive, with a solid growth trajectory but caution warranted due to leverage and market sentiment.

Positive Factors

Backlog and Revenue Visibility

Everus Construction Group's total backlog has increased to $2.9 billion, providing healthy visibility over the near-to-medium-term as approximately 75% is expected to be recognized within 12 months.

Growth Potential

The Electrical & Mechanical (E&M) segment now generates approximately 55% of sales from the commercial end-market, including data centers and hospitality, showing significant growth potential.

Market Position and Customer Base

ECG is ranked as the 10th largest specialty contractor in the US, serving roughly 3,700 customers on over 40,000 projects.

Negative Factors

Valuation Concerns

Shares are up ~21% post-spin and are viewed as fairly valued at current trading levels.

Everus Construction Group, Inc. Business Overview & Revenue Model

Company Description

Everus Construction Group, Inc. (ECG) is a premier construction company specializing in residential, commercial, and infrastructure projects. With a commitment to quality and innovation, ECG offers a comprehensive range of services, including design, project management, and construction execution. The company is dedicated to delivering sustainable and efficient building solutions that meet the evolving needs of its clients across various sectors.

How the Company Makes Money

Everus Construction Group, Inc. generates revenue through multiple streams. The primary source of income comes from construction contracts, where ECG is engaged by clients to design and build residential, commercial, and infrastructure projects. These contracts typically involve a combination of fixed-price and cost-plus arrangements, allowing ECG to cover costs and earn a profit margin. Additionally, ECG offers project management and consulting services, providing expertise that enhances project delivery for clients. The company also forms strategic partnerships with suppliers and subcontractors, optimizing resource allocation and cost efficiency, which contributes to its profitability. Furthermore, ECG may engage in joint ventures for large-scale projects, sharing both risks and rewards with partnering firms.

Everus Construction Group, Inc. Financial Statement Overview

Summary

Everus Construction Group, Inc. exhibits stable revenue and improved profitability, with strong operational efficiency. However, the company's increased leverage and declining free cash flow growth pose potential risks. Overall, the financial health is solid, but careful management of debt levels is necessary to sustain long-term growth.

Income Statement

The company shows a stable revenue trajectory with a marginal decline in 2024. Gross profit margin improved from 11.27% in 2023 to 11.91% in 2024, indicating better cost management. Net profit margin increased slightly from 4.81% to 5.03%, reflecting improved profitability. EBIT and EBITDA margins remained stable, demonstrating consistent operational efficiency.

Balance Sheet

The debt-to-equity ratio increased from 0.50 in 2023 to 0.86 in 2024, indicating higher leverage and potential risk. Return on equity declined from 30.57% to 33.93%, showing strong profitability relative to equity. The equity ratio decreased from 40.41% to 32.79%, reflecting a higher reliance on debt financing.

Cash Flow

Free cash flow declined from $135.75M in 2023 to $115.10M in 2024, indicating reduced cash generation. The operating cash flow to net income ratio was 1.14 in 2024, showing adequate cash flow relative to net income. However, capital expenditures increased, impacting free cash flow growth negatively.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
3.05B	2.85B	2.85B	2.70B
	Gross Profit
357.23M	339.45M	321.92M	276.05M
	EBIT
202.01M	189.91M	190.54M	164.64M
	EBITDA
219.06M	220.05M	207.51M	187.49M
	Net Income Common Stockholders
151.88M	143.42M	137.23M	124.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.98M	86.01M	1.57M	2.11M
	Total Assets
1.36B	1.29B	1.11B	1.14B
	Total Debt
360.36M	363.20M	222.18M	305.22M
	Net Debt
286.38M	277.19M	220.61M	303.11M
	Total Liabilities
895.65M	865.85M	661.73M	753.34M
	Stockholders Equity
460.20M	422.61M	448.85M	382.25M
Cash Flow		Free Cash Flow
110.07M	115.10M	135.75M	-61.34M
	Operating Cash Flow
168.63M	163.38M	171.34M	-25.50M
	Investing Cash Flow
-46.13M	-37.06M	-19.97M	-24.57M
	Financing Cash Flow
-49.46M	-41.87M	-151.91M	51.50M

Everus Construction Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGX	81 Outperform	$2.98B	30.62	30.48%	0.69%	45.08%	158.43%
NVEE	80 Outperform	$1.50B	46.80	3.79%	―	8.65%	-22.72%
PRIM	74 Outperform	$3.98B	19.69	15.30%	0.43%	12.45%	42.45%
MYRG	72 Outperform	$2.57B	75.02	5.71%	―	-7.33%	-57.86%
ECG	71 Outperform	$3.08B	19.99	32.91%	―	11.92%	8.94%
TPC	62 Neutral	$2.22B	―	-12.28%	―	8.95%	-41.32%
Sector *	61 Neutral	$924.02M	5.85	2.43%	4.36%	10.27%	-74.96%

Everus Construction Group, Inc. Corporate Events

Everus Construction Releases Q2 2025 Financial Presentation

On May 28, 2025, Everus Construction Group, Inc. released presentation materials on its website for use in meetings with the investment community throughout the quarter ending June 30, 2025. The presentation highlights Everus’ financial performance, including a total revenue of $3.1 billion and a backlog of $3.1 billion as of March 31, 2025. The materials emphasize Everus’ focus on complex projects and its position as a top specialty contractor, with significant revenue contributions from electrical and mechanical services and utility infrastructure projects.

The most recent analyst rating on (ECG) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Everus Construction Group, Inc. stock, see the ECG Stock Forecast page.

Everus Construction Group Approves Key Proposals at Annual Meeting

Everus Construction Group, Inc. held its Annual Meeting of Stockholders on May 20, 2025, where four proposals were presented. These included the election of seven directors, an advisory vote on the frequency of executive compensation votes, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent auditor for 2025. All proposals were approved, with the board deciding to hold annual advisory votes on executive compensation, reflecting good corporate governance practices.

The most recent analyst rating on (ECG) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Everus Construction Group, Inc. stock, see the ECG Stock Forecast page.

Everus Construction Reports Strong Q1 2025 Results

On May 13, 2025, Everus Construction Group announced its first quarter results for 2025, reporting a 32.1% increase in revenues to $826.6 million and a 30.1% rise in net income to $36.7 million compared to the previous year. The company highlighted robust growth in its electrical and mechanical segment, particularly in data center projects, and maintained its full-year guidance for 2025, citing a record backlog and favorable market conditions as key drivers for its positive outlook.

The most recent analyst rating on (ECG) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Everus Construction Group, Inc. stock, see the ECG Stock Forecast page.