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Everus Construction Group, Inc.
(NYSE:ECG)
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Rating:72Outperform
Price Target:
$136.00
▲(4.62% Upside)
Action:Reiterated
Date:07/31/26
ECG scores well primarily due to strong fundamentals (improving profitability, materially cleaner leverage profile, and a meaningful TTM cash-flow rebound) and a very constructive earnings update with raised FY2026 guidance and backlog growth. Offsetting these positives, the technical setup is weak versus key moving averages, and valuation looks relatively expensive at a 26.764 P/E with no dividend yield provided to support returns.
Positive Factors
Balance Sheet Strength
Everus has materially cleaned up leverage with TTM debt-to-equity around 0.15 and very strong ROE (~37%). That capital structure provides durable financial flexibility for bid competitiveness, M&A funding, and to absorb project timing swings in a working-capital‑intensive industry.
Negative Factors
Cash Conversion Volatility
Everus operates a working-capital-heavy model with uneven cash conversion historically (negative OCF/FCF in 2022, softer 2025 results). That volatility can stress liquidity in down cycles, complicate consistent free cash flow generation and increase reliance on credit during project timing swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Everus has materially cleaned up leverage with TTM debt-to-equity around 0.15 and very strong ROE (~37%). That capital structure provides durable financial flexibility for bid competitiveness, M&A funding, and to absorb project timing swings in a working-capital‑intensive industry.
Read all positive factors
Everus Construction Group, Inc. Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down where sales come from across the company’s business lines, showing which operations drive growth and profits. Heavy revenue concentration in one segment can increase risk if that market slows, while a balanced mix can smooth cyclical swings. Comparing segment revenue trends over time helps identify where management is winning market share or where margins may come under pressure.
Breaks down where sales come from across the company’s business lines, showing which operations drive growth and profits. Heavy revenue concentration in one segment can increase risk if that market slows, while a balanced mix can smooth cyclical swings. Comparing segment revenue trends over time helps identify where management is winning market share or where margins may come under pressure.
Data provided by:
The Fly
The FlyEverus Construction Group, Inc. (ECG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.40B
Dividend YieldN/A
Average Volume (3M)604.68K
Price to Earnings (P/E)28.6
Beta (1Y)1.66
Revenue Growth29.70%
EPS Growth46.91%
CountryUS
Employees9,400
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.38
Shares Outstanding51,041,607
10 Day Avg. Volume534,576
30 Day Avg. Volume604,684
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)6.94
Price to Sales (P/S)1.17
P/FCF Ratio48.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$169.60Price Target Upside30.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)4.58
Revenue Forecast (FY)$4.38B
Everus Construction Group, Inc. Business Overview & Revenue Model
Company Description
Everus Construction Group, Inc. specializes in developing utility infrastructure. Their comprehensive service portfolio includes building electrical transmission lines and pipelines, alongside internal electrical wiring, cabling installations, and...
How the Company Makes Money
null...
Everus Construction Group, Inc. Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive operational and financial momentum: record Q1 revenue (+25% YoY), robust EBITDA growth (+44% YoY) with margin expansion (+110 bps), a 20% backlog increase, materially improved cash flow, and a strategic acquisition that expands the footprint and adds stable service revenue. Management balanced the optimism with cautious commentary about timing effects (weather and working‑capital timing), labor availability, a continued preference for cost‑plus contracts that trade margin upside for risk mitigation, and a conservative stance on near‑term guidance. On balance, the highlights (growth, margin expansion, cash generation, healthy backlog, and strategic M&A) significantly outweigh the manageable operational and timing risks discussed on the call.Positive Updates
Record Quarterly Revenue Growth
First quarter 2026 revenues of $1.04 billion, up 25% year-over-year, driven by growth across both E&M and T&D segments.
Negative Updates
Labor Availability Constraints
Management noted that qualified labor availability remains a persistent challenge; continued emphasis on hiring, training, and retention is required to support growth and could constrain scaling if not addressed.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue Growth
First quarter 2026 revenues of $1.04 billion, up 25% year-over-year, driven by growth across both E&M and T&D segments.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance to $4.3–$4.4 billion of revenue and $345–$360 million of EBITDA (midpoint implying ~8.1% EBITDA margin), noting the legacy business is expected to run at roughly ~8% EBITDA margin for the balance of the year; the lift reflects Q1 strength (Q1 revenue $1.04B, Q1 EBITDA $88.9M, Q1 EBITDA margin 8.6%, +110 bps YoY) and the close of SCNM. SCNM generated $109M of revenue in 2025 with a high‑teens EBITDA margin and is expected to contribute mid‑ to high‑teens EBITDA margin in 2026 (management indicated SCNM revenue could grow at a “mid‑ to high‑percentage” rate). Pro forma net leverage was ~0.5x as of April 2; liquidity at quarter end included $275M of cash, $281.2M gross debt and $222.8M available on the credit facility. Management also said seasonality should be more muted in 2026, Q1 operating cash flow was $143.7M and free cash flow $131.9M (timing benefits) with Q1 CapEx $15.5M and higher FY CapEx expected to support growth.Everus Construction Group, Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.96B | 3.75B | 2.85B | 2.85B | 2.70B |
| Gross Profit | 492.32M | 454.09M | 339.45M | 321.92M | 276.05M |
| EBITDA | 345.63M | 324.33M | 220.05M | 207.51M | 187.49M |
| Net Income | 223.41M | 201.77M | 143.42M | 137.23M | 124.78M |
Balance Sheet | |||||
| Total Assets | 1.85B | 1.73B | 1.29B | 1.05B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 293.36M | 170.50M | 86.01M | 1.57M | 2.11M |
| Total Debt | 362.59M | 372.09M | 363.20M | 222.18M | 305.22M |
| Total Liabilities | 1.16B | 1.10B | 865.85M | 603.61M | 753.34M |
| Stockholders Equity | 686.94M | 629.82M | 422.61M | 448.85M | 382.25M |
Cash Flow | |||||
| Free Cash Flow | 229.63M | 90.01M | 115.10M | 135.75M | -61.34M |
| Operating Cash Flow | 293.39M | 156.84M | 163.38M | 171.34M | -25.50M |
| Investing Cash Flow | -56.25M | -56.77M | -37.06M | -19.97M | -24.57M |
| Financing Cash Flow | -17.77M | -15.59M | -41.87M | -151.91M | 51.50M |
Everus Construction Group, Inc. Technical Analysis
Negative
129.99
Price Trends
144.14
Negative
138.70
Negative
116.50
Positive
Market Momentum
-4.41
Positive
39.92
Neutral
57.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECG, the sentiment is Negative. The current price of 129.99 is below the 20-day moving average (MA) of 131.98, below the 50-day MA of 144.14, and above the 200-day MA of 116.50, indicating a neutral trend. The MACD of -4.41 indicates Positive momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 57.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECG.
Everus Construction Group, Inc. Risk Analysis
Everus Construction Group, Inc. disclosed 55 risk factors in its most recent earnings report. Everus Construction Group, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Everus Construction Group, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.00B | 49.05 | 36.89% | 0.35% | 14.47% | 57.43% | |
74 Outperform | $4.41B | 56.25 | 6.50% | 0.21% | 25.67% | ― | |
72 Outperform | $6.40B | 28.64 | 37.17% | ― | 29.70% | 46.91% | |
66 Neutral | $5.19B | 31.35 | 24.17% | ― | 16.06% | 121.28% | |
61 Neutral | $4.58B | 18.39 | 15.21% | 0.37% | 13.40% | 19.67% | |
58 Neutral | $5.29B | -32.00 | -16.01% | 0.42% | 21.80% | -204.13% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
ECG
Everus Construction Group, Inc.
125.43
53.43
74.21%
AGX
Argan
570.43
348.08
156.55%
GVA
Granite Construction
120.97
28.57
30.92%
MYRG
MYR Group
333.22
144.51
76.58%
PRIM
Primoris Services
84.41
-8.43
-9.08%
TPC
Tutor Perini
83.75
37.69
81.81%
Everus Construction Group, Inc. Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Everus Construction to Acquire Modular Infrastructure Firm Epsilon
Positive
Jul 31, 2026
On July 31, 2026, Everus Construction Group announced a definitive agreement to acquire Epsilon Industries, a North American provider of complex modular mechanical and electrical building infrastructure systems, for $295 million in cash, subject t...
Executive/Board ChangesShareholder Meetings
Everus Construction Shareholders Back Board, Pay and Auditor
Positive
May 14, 2026
At Everus Construction Group, Inc.’s Annual Meeting of Stockholders held on May 12, 2026, shareholders elected eight directors to one-year terms, with each nominee receiving more votes for than against, affirming continuity in the company...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Everus Construction Posts Record Q1 Results, Raises Guidance
Positive
May 5, 2026
On May 5, 2026, Everus Construction Group reported that first-quarter 2026 revenue rose 25.4% year over year to a record $1.04 billion, while net income jumped 58.9% to $58.3 million and EBITDA increased 43.9% to $88.9 million, driven by strong ex...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.