Everus Construction Group, Inc.

What they do

Everus provides specialty contracting services across the United States through 15 operating companies under 19 local brands. Its services span commercial, industrial, institutional, renewables, service & other, transportation, and utility end markets, delivered via its E&M and T&D segments.

Revenue drivers

• Electrical & Mechanical (E&M) — Largest segment; Q2 2026 revenues up 41.6% to $296.7 million over prior year, driven by data center, hospitality, and high tech submarkets.
• Transmission & Distribution (T&D) — Smaller segment; Q2 2026 revenues up 7.1% to $15.1 million, benefiting from utility and infrastructure demand.
• Acquisitions — SE&M Constructors (acquired Q2 2026) and pending Epsilon Industries (modular construction) contribute to revenue growth; excluding acquisitions, Q2 2026 organic revenue grew 30.0%.

Recent performance

Q2 2026 revenues were $1.23 billion, up 33.7% year over year, with net income of $83.9 million (up 58.9%) and diluted EPS of $1.64 (up 59.2%). EBITDA was $128.6 million, up 52.7%, with margin at 10.4%. Backlog reached a record $4.55 billion, up 52.8% from June 30, 2025. For FY2025, revenue was $3.75 billion with net income of $201.8 million.

Strategy

Management emphasizes its 4EVER strategy (Employees, Value, Execution, Relationships) to drive local brand strength and corporate support. Key growth initiatives include integrating SE&M Constructors, ramping up the initial project in a new geography entered in 2025, and closing the Epsilon Industries acquisition to expand modular construction capabilities. The company maintains financial flexibility with net leverage of 0.3x to support organic growth and acquisitions.

Risks

• Competition — The construction services market is highly fragmented and competitive, with larger or more specialized competitors potentially winning bids or driving down prices.
• Commodity and inflation risk — Fluctuations in prices for copper, aluminum, steel, and labor, including impacts from tariffs, could raise costs and compress margins if unable to pass through.
• Acquisition integration risk — The pending Epsilon acquisition and recent SE&M integration involve significant assumptions and estimates, with risks to achieving expected synergies and fair value adjustments.
• Interest rate risk — Variable-rate debt under the Term Loan (5.73% as of June 30, 2026) exposes earnings to higher interest expense; a 1% rate increase would add ~$2.7 million annually.

Outlook

Management raised full-year 2026 guidance to revenues of $4.5–$4.7 billion and EBITDA of $410–$425 million. They cite robust demand across data center, hospitality, and high tech markets, and expect continued momentum from backlog and growth initiatives.