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Everus Construction Group, Inc.
(NYSE:ECG)
Select Model
Select Model
Rating:70Outperform
Price Target:
$146.00
▲(20.48% Upside)
Action:Upgraded
Date:09/08/26
ECG scores well on improving fundamentals and a notably strong latest earnings outlook (raised 2026 guidance, record backlog, strong growth, and low net leverage). This is partially offset by weak technicals (price below major moving averages with negative MACD) and a valuation that is not clearly cheap at a 23.59 P/E for a cyclical, thin-margin business, plus execution and concentration risks highlighted around margin normalization and data centers.
Positive Factors
Strong growth and backlog visibility
Rapid revenue growth, record backlog and a high historical conversion rate provide meaningful forward workload visibility. This supports steadier resource planning and reinforces the company’s position in attractive construction markets, while raised 2026 guidance indicates management expects momentum to persist.
Negative Factors
Construction margins remain thin and may normalize
Although profitability has improved, relatively thin construction margins leave earnings sensitive to project execution and cost changes. Management’s lower second-half margin assumption suggests recent gains may not fully persist, limiting the durability of near-term margin expansion and earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and backlog visibility
Rapid revenue growth, record backlog and a high historical conversion rate provide meaningful forward workload visibility. This supports steadier resource planning and reinforces the company’s position in attractive construction markets, while raised 2026 guidance indicates management expects momentum to persist.
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
$6.25B
Dividend YieldN/A
Average Volume (3M)402.55K
Price to Earnings (P/E)24.8
Beta (1Y)1.69
Revenue Growth30.53%
EPS Growth53.35%
CountryUS
Employees9,400
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.97
Shares Outstanding51,063,835
10 Day Avg. Volume392,008
30 Day Avg. Volume402,553
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 Cap1.39
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit15.64
Enterprise Value/Ebitda22.24
Forecast
1Y Price Target
$176.00Price Target Upside45.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)5.3
Revenue Forecast (FY)$4.66B
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...
Everus Construction Group, Inc. Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: strong top-line and profitability growth, record backlog, substantial cash generation, low net leverage, successful execution of the SE&M acquisition, and an announced strategic acquisition (Epsilon) to expand modular capabilities. The company raised full-year guidance. Primary concerns were modest: expected normalization of free cash flow timing benefits, a sequential increase in net debt tied to acquisition activity, management's assumption of lower second-half margins (~8.5%) relative to the first half, and exposure to data center concentration. Overall, the positives materially outweigh the limited near-term caveats.Positive Updates
Record Quarterly Revenue
Second quarter revenues of $1.23 billion, up 34% year-over-year, with growth across E&M and T&D and contributions from the SE&M acquisition (organic revenue growth of ~30% excluding SE&M).
Negative Updates
Expected Normalization of Free Cash Flow
Management noted first-half free cash flow benefited from timing effects and expects more normalized free cash flow conversion in the remainder of the year as higher growth investments offset operating growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Second quarter revenues of $1.23 billion, up 34% year-over-year, with growth across E&M and T&D and contributions from the SE&M acquisition (organic revenue growth of ~30% excluding SE&M).
Read all positive updates
Company Guidance
Everus raised full‑year 2026 guidance to revenues of $4.5 billion–$4.7 billion and EBITDA of $410 million–$425 million (guidance excludes any contribution from the pending Epsilon acquisition); at the midpoint this implies roughly a 9% EBITDA margin, while the company expects about an 8.5% margin for the balance of the year. The raise was driven by strong first‑half results including Q2 revenues of $1.23 billion (+34% y/y), Q2 EBITDA of $128.6 million (+53%) and a Q2 EBITDA margin of 10.4% (+130 bps), plus a June 30 backlog of $4.55 billion (+53%) (SE&M contributed roughly $100 million). Financial flexibility behind the guidance includes $157 million of unrestricted cash, $278 million gross debt, $223 million available on the credit facility and net leverage of 0.3x (trailing‑12‑month EBITDA), while operating cash flow for the first six months was $196.8 million and free cash flow was $167 million (H1 CapEx $35.6 million).Everus Construction Group, Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.27B | 3.75B | 2.85B | 2.85B | 2.70B |
| Gross Profit | 555.38M | 454.09M | 339.45M | 321.92M | 276.05M |
| EBITDA | 390.71M | 324.33M | 220.05M | 207.51M | 187.49M |
| Net Income | 254.46M | 201.77M | 143.42M | 137.23M | 124.78M |
Balance Sheet | |||||
| Total Assets | 2.06B | 1.73B | 1.29B | 1.05B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 176.67M | 170.50M | 86.01M | 1.57M | 2.11M |
| Total Debt | 364.15M | 372.09M | 363.20M | 222.18M | 305.22M |
| Total Liabilities | 1.28B | 1.10B | 865.85M | 603.61M | 753.34M |
| Stockholders Equity | 773.20M | 629.82M | 422.61M | 448.85M | 382.25M |
Cash Flow | |||||
| Free Cash Flow | 250.37M | 90.01M | 115.10M | 135.75M | -61.34M |
| Operating Cash Flow | 321.19M | 156.84M | 163.38M | 171.34M | -25.50M |
| Investing Cash Flow | -211.25M | -56.77M | -37.06M | -19.97M | -24.57M |
| Financing Cash Flow | -17.97M | -15.59M | -41.87M | -151.91M | 51.50M |
Everus Construction Group, Inc. Technical Analysis
Neutral
121.18
Price Trends
123.17
Negative
133.86
Negative
124.45
Negative
Market Momentum
1.11
Negative
52.09
Neutral
46.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECG, the sentiment is Neutral. The current price of 121.18 is above the 20-day moving average (MA) of 118.32, below the 50-day MA of 123.17, and below the 200-day MA of 124.45, indicating a neutral trend. The MACD of 1.11 indicates Negative momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 46.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $34.82B | 24.55 | 38.42% | 0.18% | 18.92% | 33.51% | |
70 Outperform | $6.25B | 24.85 | 38.22% | ― | 30.53% | 53.35% | |
70 Outperform | $106.13B | 79.86 | 14.86% | 0.06% | 26.30% | 34.94% | |
66 Neutral | $4.85B | 29.28 | 24.17% | ― | 16.06% | 121.28% | |
65 Neutral | $17.08B | 33.32 | 15.30% | ― | 23.46% | 86.29% | |
59 Neutral | $4.50B | 32.47 | 8.46% | 0.38% | 5.12% | -42.27% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
ECG
Everus Construction Group, Inc.
122.44
35.61
41.01%
EME
EMCOR Group
789.45
113.77
16.84%
MTZ
MasTec
212.65
9.39
4.62%
MYRG
MYR Group
311.63
105.62
51.27%
PRIM
Primoris Services
83.60
-52.45
-38.55%
PWR
Quanta Services
705.94
275.30
63.93%
Everus Construction Group, Inc. Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Everus Construction Expands Credit Facilities to Support Growth
Positive
Sep 8, 2026
On September 1, 2026, Everus Construction Group, Inc. amended its existing credit agreement with JPMorgan Chase Bank and other lenders, fully refinancing its senior secured first lien term loans and revolving credit commitments while materially in...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Everus Construction Group completes Epsilon Industries acquisition
Positive
Sep 2, 2026
On September 1, 2026, Everus Construction Group announced it had completed the $295 million cash acquisition of Epsilon Industries, a designer and manufacturer of complex modular mechanical and electrical building infrastructure systems with off-s...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Everus Construction Group Posts Record Q2 2026 Results
Positive
Aug 4, 2026
Everus Construction Group, Inc., based in Bismarck, N.D., operates in the construction and infrastructure services industry, with core activities in electrical and mechanical (EM) and transmission and distribution (TD) projects. The company focuse...
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...
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.