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Everus Construction Group, Inc. (ECG)
NYSE:ECG
RESEARCH TOOLSreports
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Everus Construction Group, Inc.
(NYSE:ECG)
Rating:71Outperform
Price Target:
$67.00
▲( 17.94% Upside)
Positive Factors
Growth Potential
The Electrical & Mechanical segment now generates approximately 55% of sales from the commercial end-market, including data centers and hospitality, showing significant growth potential.
Market Position
Everus Construction Group is ranked as the 10th largest specialty contractor in the US, serving roughly 3,700 customers on over 40,000 projects.
Sales Growth
Everus Construction Group's net sales have grown at an average annual rate of 15.9% from $1.1 billion in FY16 to $2.9 billion in FY23.
Negative Factors
Stock Valuation
Shares are up approximately 21% post-spin and are viewed as fairly valued at current trading levels.
Everus Construction Group, Inc. (ECG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.01B
Dividend YieldN/A
Average Volume (3M)737.25K
Price to Earnings (P/E)19.1
Beta (1Y)2.18
Revenue Growth11.92%
EPS Growth8.94%
CountryUS
Employees8,700
SectorServices
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.72
Shares Outstanding50,999,580
10 Day Avg. Volume1,048,881
30 Day Avg. Volume737,254
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)4.59
Price to Sales (P/S)0.00
P/FCF Ratio16.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$57.67Price Target Upside1.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Everus Construction Group, Inc. Business Overview & Revenue Model
Company DescriptionEverus Construction Group, Inc. (ECG) is a leading construction company specializing in commercial, residential, and infrastructure development projects. With a focus on innovation and sustainability, ECG provides comprehensive construction services including project management, design-build, and general contracting. The company is committed to delivering high-quality, cost-effective solutions to meet the diverse needs of its clients.
How the Company Makes MoneyEverus Construction Group, Inc. (ECG) generates revenue primarily through its construction services offered across commercial, residential, and infrastructure sectors. The company earns money by securing contracts for building and renovation projects, charging fees for project management and consulting services, and through design-build initiatives where ECG is responsible for both the design and construction of a project. The company may also form strategic partnerships with subcontractors and suppliers to optimize costs and increase project efficiency. The revenue streams are bolstered by repeat business from satisfied clients and successful bids on new projects.
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.80
Positive
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.75
Positive
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.70
Positive
| Breakdown | ||
| Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 2.85B | 2.85B | 2.70B | Gross Profit |
| 339.45M | 321.92M | 276.05M | EBIT |
| 189.91M | 190.54M | 164.64M | EBITDA |
| 220.05M | 207.51M | 187.49M | Net Income Common Stockholders |
| 143.42M | 137.23M | 124.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 86.01M | 1.57M | 2.11M | Total Assets |
| 1.29B | 1.11B | 1.14B | Total Debt |
| 363.20M | 222.18M | 305.22M | Net Debt |
| 277.19M | 220.61M | 303.11M | Total Liabilities |
| 865.85M | 661.73M | 753.34M | Stockholders Equity |
| 422.61M | 448.85M | 382.25M |
| Cash Flow | Free Cash Flow | |
| 115.10M | 135.75M | -61.34M | Operating Cash Flow |
| 163.38M | 171.34M | -25.50M | Investing Cash Flow |
| -37.06M | -19.97M | -24.57M | Financing Cash Flow |
| -41.87M | -151.91M | 51.50M |
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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $2.59B | 30.87 | 26.59% | 0.74% | 52.47% | 161.32% | |
80 Outperform | $1.46B | 45.40 | 3.79% | ― | 8.65% | -22.72% | |
74 Outperform | $4.04B | 19.83 | 15.30% | 0.37% | 12.45% | 42.45% | |
72 Outperform | $2.55B | 73.84 | 5.71% | ― | -7.33% | -57.86% | |
71 Outperform | $3.01B | 19.08 | 32.91% | ― | 11.92% | 8.94% | |
63 Neutral | $1.92B | ― | -12.28% | ― | 8.95% | -41.32% | |
58 Neutral | $935.84M | 6.69 | 2.42% | 3.91% | 10.54% | -75.09% |
* Services Sector Average
Performance Comparison
ECG
Everus Construction Group, Inc.
57.39
7.39
14.78%
AGX
Argan
196.97
129.25
190.86%
MYRG
MYR Group
157.07
2.40
1.55%
PRIM
Primoris Services
69.72
16.74
31.60%
TPC
Tutor Perini
35.18
14.34
68.81%
NVEE
NV5 Holdings
22.16
-1.44
-6.10%
Everus Construction Group, Inc. Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 10.48%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and backlog growth, particularly in the E&M segment, with strategic investments and favorable market conditions in key sectors. However, challenges such as weather-related delays in the T&D segment and uncertainties from tariffs and trade were noted. The positives significantly outweigh the negatives, indicating a strong performance and strategic positioning for future growth.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
First quarter revenue increased 32% to $826.6 million, driven by a 47% increase in the Electrical and Mechanical (E&M) segment, despite a 2% decline in Transmission and Distribution (T&D).
Strong Backlog Performance
Total backlog at the end of the first quarter was $3.1 billion, up 10% from the end of the previous year and 41% from the prior year period, with E&M backlog up 46%.
EBITDA Growth
First quarter EBITDA increased 32% to $61.8 million, with a consistent margin of 7.5%, highlighting strong project execution.
Strategic Investments and Expansion
Increased Capital Expenditure to $18.5 million, including investment in a new prefabrication facility in Kansas City, expanding the footprint by approximately 128,000 square feet.
Robust Demand in Key Markets
Continued strong demand trends in data centers, hospitality, and high-tech reshoring markets.
Appointment of New VP for Corporate Development
Tim Sznewajs appointed as Vice President of Corporate Development and Strategy to enhance M&A capabilities.
Negative Updates
Weather-Related Revenue Decline in T&D
T&D revenue declined 2% due to weather-related delays in the utility business.
Tariff and Trade Uncertainties
Dynamic operating conditions due to tariff and trade uncertainties, requiring strategic adjustments in procurement and contract terms.
Incremental Stand-Alone Operating Costs
Incremental stand-alone operating costs continue to trend in line with expectations, with a full-year run rate of $28 million.
Company Guidance
During the Everus Q1 2025 earnings call, the company reported strong financial performance with a 32% increase in revenue, reaching $826.6 million, and an equally impressive 32% rise in EBITDA to $61.8 million. The Electrical and Mechanical (E&M) segment saw a significant 47% revenue increase, while the Transmission and Distribution (T&D) segment experienced a slight 2% decline due to weather-related delays. However, T&D EBITDA grew by 5.8% due to strong project execution. The company's EBITDA margins remained stable at 7.5%, and total backlog rose by 41% year-over-year to $3.1 billion. Everus reaffirmed its 2025 guidance with expected revenues between $3 billion and $3.1 billion and EBITDA ranging from $210 million to $225 million. The company highlighted its strategic focus on talent acquisition and capital allocation, including investments in a new prefabrication facility and the addition of a Vice President of Corporate Development and Strategy to bolster its M&A capabilities.Everus Construction Group, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Everus Construction Group Approves Key Proposals at Annual Meeting
Neutral
May 22, 2025
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.
Business Operations and StrategyFinancial Disclosures
Everus Construction Reports Strong Q1 2025 Results
Positive
May 13, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.