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.
“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.
Revenue, EBITDA and Margins Increase
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.
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.
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.
E&M and T&D Both Post Growth
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.
SE&M Acquisition Expands Southeast Presence
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.
Guidance Raised for 2026
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.
Management Highlights Project Discipline, Labor and End Markets
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.
About Everus Construction Group NYSE: ECG
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.
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