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Everus Construction Group, Inc. (ECG)
NYSE:ECG
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Everus Construction Group, Inc.
(NYSE:ECG)
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Select Model
Rating:72Outperform
Price Target:
$144.00
▲(19.14% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by solid financial performance (improving profitability and a much stronger balance sheet) and constructive guidance/backlog visibility from the latest earnings call. Technicals add support via strong trend strength, but overbought signals raise near-term risk. Valuation is the main drag, with a higher P/E and no dividend yield provided.
Positive Factors
Backlog and Revenue Visibility
A $3.23B backlog up 16% y/y with roughly 80% typically converting in 12 months provides durable revenue visibility. This reduces execution risk, supports management’s 2026 guidance and resource planning, and underpins multi-quarter cash flow and capacity to execute large projects.
Balance Sheet Strength & Liquidity
Material deleveraging and strong returns (ROE ~32%) materially increase financial flexibility. Low leverage and higher equity give capacity for capex, prefab investments and selective M&A while supporting resilience through cyclical downturns without immediate reliance on external funding.
Accelerating Revenue and Profitability
Sustained top-line acceleration and strong EBITDA expansion across E&M and T&D show scalable operations and demand-led growth. Improving margins and rising net income reflect operational leverage, positioning the company to sustain earnings growth as backlog converts and investments in prefab scale.
Negative Factors
Volatile Cash Conversion
Free cash flow fell materially in 2025 and historically shows volatility driven by working-capital swings. Persistent variability undermines the company’s ability to fund growth organically, pay down debt faster, or return capital, increasing reliance on liquidity lines or equity in adverse periods.
Incremental Stand‑Alone Costs & EBITDA Pace
A new ~$28M run-rate of stand‑alone costs raises the ongoing expense base and depresses reported margins. Combined with management’s modest 2026 EBITDA growth versus the 2025 step-up, this structural cost layer could constrain margin improvement and delay accretion from future M&A or scale benefits.
End‑Market Concentration & T&D Margin Pressure
Heavy reliance on data center demand and mid‑cycle T&D margin compression increase exposure to sector-specific downturns and adverse project mix. If data center or utility spending softens, revenue and margins could be disproportionately impacted given current concentration and existing T&D margin headwinds.
Everus Construction Group, Inc. (ECG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.17B
Dividend YieldN/A
Average Volume (3M)649.88K
Price to Earnings (P/E)30.6
Beta (1Y)1.94
Revenue Growth28.20%
EPS Growth24.27%
CountryUS
Employees8,700
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.08
Shares Outstanding51,006,718
10 Day Avg. Volume763,496
30 Day Avg. Volume649,884
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 Cap0.99
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit13.42
Enterprise Value/Ebitda19.32
Forecast
1Y Price Target
$117.33Price Target Upside-2.93% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.97
Revenue Forecast (FY)$3.93B
Everus Construction Group, Inc. Business Overview & Revenue Model
Company DescriptionEverus Construction Group, Inc. provides utility construction services. It offers electrical line construction, pipeline construction, inside electrical wiring and cabling, and mechanical services. The company also involves in the manufacture and distribution of specialty equipment, and electrical control panel; and installation and maintenance of automatic fire sprinkler systems in Las Vegas and Reno. The company was incorporated in 1995 and is based in Bismarck, North Dakota.
How the Company Makes MoneyECG generates revenue primarily through contract work, where it bids on and secures construction projects from various clients. The company's key revenue streams include fixed-price contracts, time-and-material contracts, and cost-plus contracts, allowing for flexibility in pricing based on project needs. Additionally, ECG benefits from strategic partnerships with suppliers and subcontractors, which help to reduce costs and improve project delivery timelines. The firm may also earn revenue through consulting services and value-added offerings, such as sustainability assessments and design services, further diversifying its income sources.
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. Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record quarterly revenue, double-digit full-year top-line growth, substantial EBITDA expansion, a 16% backlog increase, and robust balance sheet flexibility for M&A and growth investments. Offsets include lower free cash flow (driven by working capital and higher CapEx), some margin pressure in the T&D segment, incremental stand‑alone costs, and a modest near‑term EBITDA growth outlook versus the step-change in 2025. On balance, the positives (growth, margins, backlog, financial flexibility and strategic investments) materially outweigh the negatives, which are largely one-time or investment-related.Q4-2025 Updates
Positive Updates
Record Quarterly and Full-Year Revenue Growth
Q4 2025 revenues exceeded $1,010,000,000 (first time over $1.0B), up 33% YoY; full-year 2025 revenues were $3,750,000,000, up ~31.5%–32% YoY, driven by growth across E&M and T&D.
Strong EBITDA Growth and Margin Expansion
Q4 EBITDA was $84,800,000, up 45% YoY, and Q4 EBITDA margin improved to 8.4% (up 70 bps). Full-year EBITDA was ~$319.8M (reported +37.7% YoY) and ~+$320M adjusted (management cited a 52% increase when adjusting for incremental stand-alone operating costs).
Backlog Increase and Diverse Project Pipeline
Total backlog at 12/31/2025 was ~$3.23B, up 16% YoY, with continued pipeline strength across data center, hospitality, semiconductor, transmission and undergrounding — providing strong revenue visibility into 2026 and beyond.
E&M Segment Outperformance
E&M Q4 revenues were $791.6M, up 44% YoY; E&M Q4 EBITDA was $67.1M, up 57% YoY, and E&M EBITDA margin improved to 8.5% (up 70 bps), driven by data center, commercial and renewables strength.
T&D Backlog Strength
T&D backlog increased 41% YoY (end-of-year backlog contribution), reflecting stronger utility end market demand, specifically undergrounding and transmission opportunities.
Financial Strength and M&A Capacity
Unrestricted cash of $152.7M, gross debt of $285M, $222.8M available under credit facility and net leverage ~0.4x — well below target leverage (management target 1.5–2.0x), providing capacity for strategic M&A and growth investments.
Positive 2026 Guidance and Multi-Year Outlook
Initial 2026 guidance: revenues $4.1–4.2B (midpoint ≈ +11% YoY) and EBITDA $320–335M (midpoint ≈ +5% YoY). Midpoint implies EBITDA margin just under 8% (management cited ~7.98%), and longer-term targets remain intact.
Investments in Prefabrication, Facilities and Workforce
CapEx increased to $66.8M in 2025 (up from $43.8M, +52.5% YoY) to support growth and prefab expansion (new Kansas City facility operational; investments in Pacific Northwest and Southwest). Headcount rose to 9,400 from 8,700 (+~8%), and management reported record safety results.
Negative Updates
Free Cash Flow and Operating Cash Flow Decline
Full-year operating cash flow was $150.8M in 2025 vs $163.4M in 2024 (down ~7.7%); free cash flow was $100.0M vs $128.8M in 2024 (down ~22.4%), reflecting working capital build and higher CapEx to support growth.
Increased Working Capital Requirements
Management noted working capital was elevated to support substantial revenue growth, which reduced near-term cash conversion despite strong operating results; guidance anticipates reduced incremental working capital needs in 2026 but 2025 cash conversion was impacted.
T&D Margin Pressure in Q4
T&D Q4 revenues rose 6.8% YoY to $227.7M, but T&D EBITDA was essentially flat at $30.5M and T&D EBITDA margin declined to 13.4% from 14.3% in prior-year period (down ~90 bps), attributed to project mix and higher SG&A.
Incremental Stand-Alone Operating Costs
Incremental stand-alone annualized operating costs were ~$28,000,000; these costs partially offset EBITDA expansion on a reported basis (management reported higher adjusted growth after removing these incremental costs).
EBITDA Guidance Faces Tough Comparison
Although 2026 EBITDA guidance is positive, management noted it is slightly below their long-term model due to the exceptionally strong 2025 execution — midpoint EBITDA growth (~5% YoY) is modest relative to the prior-year step-up.
No Completed Acquisitions Yet Despite Capacity
Management emphasized a broad M&A pipeline and available financial capacity but has not closed any acquisitions to date; no return-of-capital programs are in place as capital is being retained for growth and potential transactions.
Concentration Risk — Heavy Data Center Exposure
Management acknowledged data center is a large contributor to backlog and revenues (and semiconductor exposure is growing). While diversification was highlighted, higher concentration in data center remains a potential exposure to market-specific downturns.
Company Guidance
Management provided initial 2026 guidance calling for revenues of $4.1–$4.2 billion and EBITDA of $320–$335 million (the midpoint implies ~11% revenue growth and ~5% EBITDA growth year‑over‑year), with an EBITDA margin at the midpoint just under 8% (~7.98%) and a noted two‑year adjusted EBITDA CAGR of ~25% after accounting for $28 million of incremental stand‑alone operating costs; the outlook is supported by an elevated year‑end 2025 backlog of $3.23 billion (up 16% y/y, with roughly 80% typically burning in 12 months), and management reiterated long‑term targets of 5–7% organic revenue growth and CapEx of ~2–2.5% of revenues while highlighting balance sheet capacity (year‑end cash $152.7M, gross debt $285M, $222.8M available on the credit facility, and net leverage ~0.4x) to fund execution and potential M&A.Everus Construction Group, Inc. Financial Statement Overview
Summary
Profitability and returns improved with accelerating revenue growth and a materially stronger balance sheet from sharply lower debt and very strong ROE. The main offset is weaker/volatile cash conversion (FCF down meaningfully in 2025 and historically variable), plus a minor reported-data inconsistency around EBIT margin.Income Statement
Revenue accelerated in 2025 (annual revenue growth of 7.2%) after a flat 2024, and profitability improved steadily from 2022–2025 with higher gross profit and net income. Margins are healthy for the industry (gross margin ~12.1%, net margin ~5.4% in 2025) and returns remain strong. The main watch-out is margin consistency—EBITDA margin dipped versus 2024—and an apparent data issue where 2025 EBIT margin is shown as 0.0 despite positive EBIT, which reduces confidence in that specific data point.74
Positive
Balance Sheet
Leverage improved materially: total debt fell sharply in 2025 and debt relative to equity declined to ~0.17, down from higher levels in prior years, indicating a stronger balance sheet and more flexibility. Equity increased and return on equity stayed very strong (~32% in 2025), reflecting efficient capital use. Risk is relatively contained, though the business remains somewhat cyclical by nature and past years showed higher leverage than today.82
Very Positive
Cash Flow
Cash generation is positive in the last three years, with operating cash flow of ~$157M and free cash flow of ~$90M in 2025; free cash flow covered ~57% of net income, which is acceptable but not stellar. However, free cash flow declined meaningfully in 2025 (down ~33.6%), and cash conversion has weakened versus 2023–2024. The 2022 period also showed negative operating and free cash flow, highlighting potential volatility in working-capital-driven cash flows.58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 3.75B | 2.85B | 2.85B | 2.70B |
| Gross Profit | 454.09M | 339.45M | 321.92M | 276.05M |
| EBITDA | 324.33M | 220.05M | 207.51M | 187.49M |
| Net Income | 201.77M | 143.42M | 137.23M | 124.78M |
Balance Sheet | ||||
| Total Assets | 1.73B | 1.29B | 1.05B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 170.50M | 86.01M | 1.57M | 2.11M |
| Total Debt | 105.54M | 363.20M | 222.18M | 305.22M |
| Total Liabilities | 1.10B | 865.85M | 603.61M | 753.34M |
| Stockholders Equity | 629.82M | 422.61M | 448.85M | 382.25M |
Cash Flow | ||||
| Free Cash Flow | 90.01M | 115.10M | 135.75M | -61.34M |
| Operating Cash Flow | 156.84M | 163.38M | 171.34M | -25.50M |
| Investing Cash Flow | -56.77M | -37.06M | -19.97M | -24.57M |
| Financing Cash Flow | -15.59M | -41.87M | -151.91M | 51.50M |
Everus Construction Group, Inc. Technical Analysis
Positive
120.87
Price Trends
94.05
Positive
92.03
Positive
80.70
Positive
Market Momentum
6.76
Negative
66.83
Neutral
61.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECG, the sentiment is Positive. The current price of 120.87 is above the 20-day moving average (MA) of 101.16, above the 50-day MA of 94.05, and above the 200-day MA of 80.70, indicating a bullish trend. The MACD of 6.76 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 61.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.26B | 53.18 | 32.05% | 0.49% | 13.49% | 77.73% | |
77 Outperform | $4.20B | 35.81 | 18.78% | ― | -0.64% | 168.51% | |
74 Outperform | $8.15B | 30.05 | 17.79% | 0.25% | 21.45% | 67.31% | |
72 Outperform | $6.17B | 30.63 | 38.34% | ― | 28.20% | 24.27% | |
71 Outperform | $3.98B | 50.00 | -2.31% | 0.09% | 19.22% | 78.83% | |
70 Outperform | $5.85B | 37.02 | 17.59% | 0.45% | 6.87% | 64.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ECG
Everus Construction Group, Inc.
120.87
79.27
190.55%
AGX
Argan
451.25
321.90
248.86%
GVA
Granite Construction
134.46
52.24
63.53%
MYRG
MYR Group
269.96
147.24
119.98%
PRIM
Primoris Services
150.72
79.20
110.72%
TPC
Tutor Perini
75.37
46.01
156.71%
Everus Construction Group, Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Everus Construction Posts Record 2025 Results, Strong Backlog
Positive
Feb 24, 2026
On Feb. 24, 2026, Everus Construction Group reported record fourth-quarter and full-year 2025 results, highlighted by a 33.1% year-on-year jump in quarterly revenue to $1.01 billion and a 60.8% rise in net income to $55.3 million. Full-year 2025 revenue climbed 31.5% to $3.75 billion with net income up 40.7% to $201.8 million, while EBITDA grew 37.7% to $319.8 million and backlog reached $3.23 billion, underpinned by strong E&M performance, robust demand in data center, hospitality, high-tech and utility markets, and a strengthened balance sheet with net leverage reduced to 0.4x.
Management said the company’s first full year as an independent public firm demonstrated strong execution and favorable end-market trends, with E&M driving most of the growth and T&D showing rising revenues but margin pressure from project mix. The 16.1% backlog increase and ample liquidity position Everus to pursue organic growth and strategic acquisitions, reinforcing its competitive standing in infrastructure construction and providing improved earnings visibility for stakeholders as it enters 2026 with solid financial flexibility.
The most recent analyst rating on (ECG) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Everus Construction Group, Inc. stock, see the ECG Stock Forecast page.
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.