Everus Construction Group, Inc. (ECG) AI Stock Analysis

• Market Cap: $4.07B
• Dividend Yield: N/A
• Average Volume (3M): 577.68K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 2.14
• Revenue Growth: 21.87%
• EPS Growth: 18.56%
• Country: US
• Employees: 8,700
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 1.03
• Shares Outstanding: 51,006,577
• 10 Day Avg. Volume: 405,596
• 30 Day Avg. Volume: 577,685
• PEG Ratio: 5.24
• Price to Book (P/B): 7.93
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 29.12
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 9.07
• Enterprise Value/Ebitda: 13.81
• 1Y Price Target: $84.00
• Price Target Upside: 5.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $87.00 ▲(9.74% Upside)

Everus Construction Group, Inc. demonstrates strong financial performance and technical indicators, supported by a positive earnings call with raised guidance. While the stock is slightly overvalued and faces potential risks from increased leverage and capital expenditures, the overall outlook remains positive, driven by robust revenue growth and operational efficiency.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective execution in key segments, supporting long-term business expansion.

Record Backlog

A record backlog provides visibility into future revenue streams, ensuring sustained operational activity and financial stability.

Leadership Enhancement

New leadership with industry expertise can drive strategic growth and enhance operational efficiencies, benefiting long-term performance.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health if not managed carefully.

Declining Free Cash Flow

Reduced cash generation may limit the company's ability to invest in growth opportunities and manage debt, affecting future financial stability.

Increased Capital Expenditures

Higher capital expenditures could pressure cash flow and profitability, necessitating careful investment management to ensure returns.

Everus Construction Group, Inc. Business Overview & Revenue Model

Company Description

Everus 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 Money

Everus Construction Group, Inc. generates revenue through multiple streams. The primary source of income comes from construction contracts, where ECG is engaged by clients to design and build residential, commercial, and infrastructure projects. These contracts typically involve a combination of fixed-price and cost-plus arrangements, allowing ECG to cover costs and earn a profit margin. Additionally, ECG offers project management and consulting services, providing expertise that enhances project delivery for clients. The company also forms strategic partnerships with suppliers and subcontractors, optimizing resource allocation and cost efficiency, which contributes to its profitability. Furthermore, ECG may engage in joint ventures for large-scale projects, sharing both risks and rewards with partnering firms.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	3.27B	2.85B	2.85B	2.70B
Gross Profit	388.52M	339.45M	321.92M	276.05M
EBITDA	255.13M	220.05M	207.51M	187.49M
Net Income	165.75M	143.42M	137.23M	124.78M
Balance Sheet
Total Assets	1.48B	1.29B	1.11B	1.14B
Cash, Cash Equivalents and Short-Term Investments	84.71M	86.01M	1.57M	2.11M
Total Debt	363.01M	363.20M	222.18M	305.22M
Total Liabilities	966.97M	865.85M	661.73M	753.34M
Stockholders Equity	514.41M	422.61M	448.85M	382.25M
Cash Flow
Free Cash Flow	128.71M	115.10M	135.75M	-61.34M
Operating Cash Flow	192.10M	163.38M	171.34M	-25.50M
Investing Cash Flow	-51.25M	-37.06M	-19.97M	-24.57M
Financing Cash Flow	-56.46M	-41.87M	-151.91M	51.50M

Everus Construction Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 79.28 is above the 20-day moving average (MA) of 78.62, above the 50-day MA of 75.43, and above the 200-day MA of 60.17, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECG	78 Outperform	$4.07B	24.58	33.00%	―	21.87%	18.56%
PRIM	77 Outperform	7.03B	30.06	12.83%	0.23%	15.08%	55.10%
AGX	75 Outperform	3.60B	32.09	29.81%	0.58%	29.16%	163.46%
MYRG	71 Outperform	2.94B	39.55	5.04%	―	-3.80%	62.94%
TPC	63 Neutral	3.42B	-25.55	-11.16%	―	12.03%	-93.60%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Everus Construction Group, Inc. Corporate Events

Everus Construction Reports Strong Q2 2025 Performance

On August 12, 2025, Everus Construction Group reported a strong financial performance for the second quarter of 2025, with revenues increasing by 31% to $921.5 million and net income rising by 35.4% to $52.8 million compared to the same period in 2024. The company also raised its full-year guidance for 2025, expecting revenues between $3.3 billion and $3.4 billion and EBITDA between $240 million and $255 million, driven by continued end-market momentum, project execution, and a robust backlog of $3.0 billion.

Everus Construction Appoints Helena Hernandez to Board

On July 29, 2025, Everus Construction Group announced the appointment of Helena Hernandez to its board of directors. With over 25 years of experience in the energy industry, Hernandez’s expertise in operational management and advanced technologies in power generation, distribution, and renewable energy sectors is expected to enhance Everus’ strategic growth and customer service efforts. She will also serve on the Compensation Committee and the Nominating and Governance Committee.