Everus Construction Group Q2 Earnings Call Highlights

Key Points

• Record second-quarter performance: Revenue rose 34% year over year to $1.23 billion, while EBITDA increased 53% to $128.6 million and margins expanded to 10.4%. Growth was broad-based, led by the E&M segment.
• Backlog and outlook strengthened: Backlog reached $4.55 billion, up 53% from a year earlier, with about 80% expected to convert to revenue within 12 months. Everus raised 2026 guidance to $4.5–$4.7 billion in revenue and $410–$425 million in EBITDA.
• Expansion through acquisitions: The SE&M integration is progressing, while the planned acquisition of modular construction provider Epsilon Industries is expected to expand Everus’s geographic reach, off-site construction capabilities and cross-selling opportunities.

Everus Construction Group NYSE: ECG reported record second-quarter revenue and EBITDA as demand remained strong across its electrical and mechanical, or E&M, and transmission and distribution, or T&D, businesses. The company also raised its full-year 2026 revenue and EBITDA guidance following what CEO Jeff Thiede described as sustained market demand, strong project execution and robust backlog growth.

Second-quarter revenue totaled $1.23 billion, up 34% from the prior-year period. EBITDA increased 53% to $128.6 million, while EBITDA margin expanded 130 basis points to 10.4%, according to CFO Max Marcy. Excluding the contribution from recently acquired SE&M Constructors, revenue rose 30% organically.

“Our positive momentum continued during the second quarter,” Thiede said, citing growth across both operating segments, execution on projects and continued demand across the company’s markets.

Backlog Reaches $4.55 Billion

Backlog stood at $4.55 billion as of June 30, an increase of 53% from a year earlier. E&M backlog rose 62%, driven by organic growth across all E&M markets and approximately $100 million of backlog contributed by SE&M at quarter-end.

Management said it had not experienced project cancellations or notable changes in customer or project activity. Thiede said the company’s data center work remains its largest backlog component, though backlog increased sequentially in nearly all end markets. Marcy added that most of the sequential backlog increase did not come from the commercial market.

The company expects roughly 80% of its backlog to convert to revenue within 12 months, consistent with its historical pattern. Thiede said margins on the work in backlog are comparable with those seen in prior periods, while the company will continue seeking improved results through execution.

• E&M revenue increased 42% to $1.01 billion, or 37% organically excluding SE&M.
• E&M EBITDA rose 72% to $109.3 million, with segment EBITDA margin increasing 190 basis points to 10.8%.
• T&D revenue grew 7.1% to $227.5 million, driven by utility-market growth.
• T&D EBITDA increased 7.9% to $32.8 million, with segment margin of 14.4%, compared with 14.3% a year earlier.

Execution and Off-Site Construction Focus

Thiede attributed the E&M segment’s margin performance to planning, contract reviews, estimating, labor availability, employee training and the company’s repeatable operating processes. He said safe and productive project execution, as well as customer relationships that can lead to repeat work, have supported margins.

Management said off-site construction, modular construction and prefabrication remain key operational priorities. Thiede said controlled shop environments can support safer working conditions, more efficient use of labor and materials, and more predictable project outcomes.

Everus is also pursuing demand in semiconductor construction. Thiede said the company has participated in the semiconductor market for more than 30 years and is currently serving more customers in more geographies. A semiconductor project in the Mountain States, supported by an additional satellite office, is ramping and is expected to contribute this year and into next year, according to management.

Acquisitions Expand Geographic and Modular Capabilities

The company acquired SE&M in April, its first transaction as a standalone public company. Thiede said integration is progressing as planned and that Everus is already exploring expanded opportunities with the business.

Everus also announced plans to acquire Epsilon Industries, an off-site modular construction provider with more than 25 years of experience serving North America. The transaction is expected to close later this year and is not included in the company’s updated 2026 guidance.

Thiede said Epsilon offers design-assist, custom fabrication and turnkey field installation services for project types including data centers, advanced manufacturing and healthcare. Epsilon has facilities in the U.S. and Canada, and Everus expects the acquisition to enhance its presence in Florida, Texas, the Mid-Atlantic and the Northeast. The business has more than 50 engineers and 120 skilled tradespeople, he said.

Management expects Epsilon to provide access to additional geographies through its modular solutions, support mechanical-business growth and create cross-selling opportunities in electrical work. Thiede said the combination could also allow the companies to leverage each other’s customer relationships and modular construction expertise.

While E&M accounts for the larger share of Everus revenue, Thiede said the company is evaluating acquisition opportunities in both E&M and T&D. The company is seeking selective, disciplined transactions that can expand its footprint, diversify its operations and deepen its market presence.

Higher 2026 Outlook and Balance Sheet Flexibility

Everus raised its full-year 2026 outlook, now forecasting revenue of $4.5 billion to $4.7 billion and EBITDA of $410 million to $425 million. At the midpoint, the guidance implies an EBITDA margin of about 9% for the year. Management expects EBITDA margins of about 8.5% for the second half, reflecting a more sustainable level than the first-half result, though Marcy said the company modestly increased back-half margin guidance based on project-execution visibility.

As of June 30, Everus had $157 million of unrestricted cash and cash equivalents, $278 million of gross debt and $223 million available under its credit facility. Net leverage was 0.3 times trailing 12-month EBITDA, below the company’s target range of 1.5 times to 2 times.

Operating cash flow totaled $196.8 million in the first six months of 2026, compared with $32.5 million a year earlier, while free cash flow reached $167 million, up from $6.5 million in the first half of 2025. Marcy said first-half free cash flow benefited from timing factors, and the company expects more normalized conversion for the remainder of the year as growth investments increase.

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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