Everus Reports First Quarter 2026 Results, Raises Guidance for 2026
BISMARCK, N.D.--(BUSINESS WIRE)--Everus Construction Group (NYSE: ECG) today reported financial results for the first quarter 2026.
First Quarter 2026 Summary
(all comparisons versus the prior-year period unless otherwise noted, and results denoted with * are quarterly records)
- Revenues of $1.04 billion*, up 25.4%.
- Net income of $58.3 million*, up 58.9%; net income margin of 5.6%.
- Diluted earnings per share (EPS) of $1.14*, up 58.3%.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) of $88.9 million, up 43.9%; EBITDA margin of 8.6%.
- Backlog of $3.68 billion*, up 14.0% from Dec. 31, 2025, and up 20.4% from March 31, 2025.
See the Non-GAAP Measures sections for definitions and reconciliations of the non-GAAP financial measures used in this news release.
Management Commentary
“We are very pleased with our strong start to the year, highlighted by another quarter of record revenues, disciplined execution and continued momentum across our key end markets,” said Jeffrey S. Thiede, president and CEO of Everus. “First quarter revenues increased 25%, driven by growth across both E&M and T&D. Our EBITDA increased 44% as the strong execution we delivered during 2025 carried into this year, reflecting the ongoing focus, dedication and hard work of our team.
“We also generated another quarter of record backlog, further evidence of our deep customer relationships, successful track record and strong market tailwinds. Our backlog at quarter-end was $3.7 billion, an increase of 20% year-over-year. While we expect backlog will continue to be lumpy, we are very encouraged by the strength in our business and remain confident in our ability to grow.
“We are excited to have completed our first acquisition as a stand-alone public company. SE&M Constructors expands our geographic footprint in the attractive Southeast region, deepens our expertise in key end markets and increases our customer base, while adding a talented, experienced management team. Following the transaction, our pro forma net leverage as of April 2 was approximately 0.5x, providing ample financial flexibility to continue pursuing our strategic growth initiatives that prioritize investment in organic opportunities and acquisitions aligned with our long-term objectives.
“Based on our strong first quarter results and the acquisition of SE&M, which closed in the second quarter, we are raising our 2026 guidance. We now expect revenues to be in the range of $4.3 billion to $4.4 billion and EBITDA to be in the range of $345 million to $360 million. We remain committed to our 4EVER strategic priorities and are confident in our ability to deliver on our long-term financial goals.”
First Quarter 2026 Consolidated Results
Revenues increased 25.4% to $1.04 billion in the first quarter of 2026, compared to $826.6 million in the first quarter of 2025. Electrical and mechanical (E&M) revenues expanded $186.9 million, or 28.8%, and transmission and distribution (T&D) revenues grew $19.4 million, or 10.5%.
Gross profit increased 41.3% to $130.7 million in the first quarter of 2026, compared to $92.5 million in the first quarter of 2025. The increase was primarily from revenue growth and gross margin improvement due to increased workloads, project timing and solid project execution. Gross margin was 12.6% in the first quarter of 2026, up compared to 11.2% in the first quarter of 2025.
Selling, general and administrative (SG&A) expenses increased 27.7% to $53.0 million in the first quarter of 2026, compared to $41.5 million in the first quarter of 2025. The increase was primarily from higher labor expenses to support operational growth of the business.
Net income increased 58.9% to $58.3 million, or diluted EPS of $1.14, in the first quarter of 2026, compared to $36.7 million, or diluted EPS of 72 cents, in the first quarter of 2025. The increase was primarily from increased gross profit, partially offset by higher SG&A expenses and higher income taxes on greater pretax income. Net income margin was 5.6% in the first quarter of 2026, up compared to 4.4% in the first quarter of 2025.
EBITDA increased 43.9% to $88.9 million in the first quarter of 2026, compared to $61.8 million in the first quarter of 2025. The increase was primarily from higher gross profit, partially offset by higher SG&A expenses. EBITDA margin was 8.6%, up compared to 7.5% in the first quarter of 2025.
Backlog increased to $3.68 billion as of March 31, 2026, up 14.0% compared to $3.23 billion as of Dec. 31, 2025, and up 20.4% compared to $3.06 billion as of March 31, 2025.
First Quarter 2026 Segment Results
Electrical and Mechanical
E&M segment revenues increased 28.8% to $835.1 million in the first quarter of 2026, compared to $648.2 million in the first quarter of 2025. The increase was primarily driven by higher workloads in the commercial end market, particularly continued growth in the data center submarket, partially offset by lower project activity due to decreased demand for services in the institutional and industrial submarkets.
E&M segment net income increased 54.9% to $56.7 million in the first quarter of 2026, compared to $36.6 million in the first quarter of 2025. The increase was primarily driven by segment revenue growth and gross margin improvement due to project timing and efficient project execution, partially offset by higher SG&A expenses, particularly labor, and higher income taxes on greater pretax income. E&M segment net income margin was 6.8%, up compared to 5.6% in the first quarter of 2025.
E&M segment EBITDA increased 52.1% to $75.3 million in the first quarter of 2026, compared to $49.5 million in the first quarter of 2025. The increase was primarily driven by segment revenue growth and higher gross margin due to project timing and efficient project execution, partially offset by higher SG&A expenses as previously mentioned. E&M segment EBITDA margin was 9.0%, up compared to 7.6% in the first quarter of 2025.
E&M backlog increased to $3.29 billion as of March 31, 2026, up 15.7% compared to $2.84 billion as of Dec. 31, 2025, and up 21.7% compared to $2.70 billion as of March 31, 2025.
Transmission and Distribution
T&D segment revenues increased 10.5% to $204.4 million in the first quarter of 2026, compared to $185.0 million in the first quarter of 2025. The increase was primarily driven by higher workloads in the utility end market, particularly transmission and storm submarkets.
T&D segment net income increased 42.9% to $15.0 million in the first quarter of 2026, compared to $10.5 million in the first quarter of 2025. The increase was primarily driven by segment revenue growth and gross margin expansion from strong project execution, partially offset by higher income taxes on greater pretax income. T&D segment net income margin was 7.3%, up compared to 5.7% in the first quarter of 2025.
T&D segment EBITDA increased 34.8% to $27.1 million in the first quarter of 2026, compared to $20.1 million in the first quarter of 2025. The increase was primarily driven by increased gross profit and gross margin from higher revenues and strong project execution. T&D segment EBITDA margin was 13.3%, up compared to 10.9% in the first quarter of 2025.
T&D backlog increased to $388.9 million as of March 31, 2026, up 1.1% compared to $384.5 million as of Dec. 31, 2025, and up 10.1% compared to $353.1 million as of March 31, 2025.
Balance Sheet and Cash Flow Commentary
Balance Sheet
As of March 31, 2026, the company had $275.0 million of unrestricted cash and cash equivalents and $281.2 million of gross debt, compared to $152.7 million and $285.0 million, respectively, as of Dec. 31, 2025.
As of both March 31, 2026 and Dec. 31, 2025, the company had $222.8 million available under the revolving credit facility, net of $2.2 million of outstanding standby letters of credit.
Net leverage, defined as net debt-to-trailing 12-month EBITDA, was 0.0x as of March 31, 2026, compared to 0.4x as of Dec. 31, 2025. Following the acquisition of SE&M (described later in this news release), pro forma net leverage as of April 2 was approximately 0.5x.
Working capital, defined as current assets minus current liabilities, was $617.2 million as of March 31, 2026, compared to $560.2 million as of Dec. 31, 2025. The working capital changes were primarily driven by project timing, workload activity and billing fluctuations, with increased cash and receivables, partially offset by increased net contract liabilities and accounts payables.
Cash Flow
Operating cash flows were $143.7 million for the first quarter of 2026, compared to $7.1 million for the first quarter of 2025. The increase was driven primarily by favorable changes in operating assets and liabilities to support company growth, including revenue growth, and increased operating results.
Capital expenditures were $15.5 million for the first quarter of 2026, compared to $18.5 million for the first quarter of 2025. The decrease was primarily from a prefabrication investment during the first quarter of 2025, partially offset by increased vehicle and equipment investments to support the company's growth.
Everus had free cash flow of $131.9 million for the first quarter of 2026, compared to negative free cash flow of $8.1 million for the first quarter of 2025. The increase was primarily from higher operating cash flows.
SE&M Acquisition
On April 2, Everus announced that it had acquired SE&M Constructors, Inc., SE&M of the Triangle, Inc. and SECO Rentals, LLC (collectively SE&M) for $158 million, subject to certain closing adjustments. SE&M, founded in 1923 and headquartered in Elm City, North Carolina, provides mechanical, electrical and plumbing services to customers across a variety of sectors, including pharmaceutical, complex industrial and health care. Led by an experienced management team, SE&M has more than 200 skilled craft laborers who enable the company to deliver on highly specialized and complex projects. The company focuses on end markets where unique capabilities and expertise are required to successfully execute projects, resulting in deep customer relationships.
Forecast for 2026
As a result of strong first quarter results, coupled with the SE&M acquisition, Everus is raising its revenues and EBITDA guidance and now expects:
- Revenues to be in the range of $4.3 billion to $4.4 billion, updated from $4.1 billion to $4.2 billion.
- EBITDA to be in the range of $345 million to $360 million, updated from $320 million to $335 million.
Everus still expects gross capital expenditures to be in the range of $90 million to $100 million, representing between 2.0% to 2.3% of forecasted revenues, consistent with the company's long-term framework.
Non-GAAP Financial Measures
Throughout this news release, Everus presents financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), as well as non-GAAP financial measures, including EBITDA, EBITDA margin, net debt, net leverage and free cash flow, and, in some cases, applicable measures by segment. The use of these non-GAAP financial measures should not be construed as alternatives to net income, net income margin, total debt, gross leverage and cash provided by (used in) operating activities. Everus believes the use of these non-GAAP financial measures are beneficial in evaluating the company's financial performance. Please refer to the Non-GAAP Financial Measures sections contained in this news release for additional information.
Conference Call
Management will discuss Everus' first quarter 2026 results on a webcast at 10:30 a.m. EDT May 6. The webcast and accompanying presentation materials can be accessed at investors.everus.com by selecting “Events & Presentations” and “Everus Q1 Earnings Call.” The webcast also can be directly accessed at https://events.q4inc.com/attendee/890675182. After the conclusion of the webcast, a replay will be available at the same location.
About Everus Construction Group
Everus Construction Group, Inc., a member of the S&P SmallCap 600® index, is Building America's Future® by providing a full spectrum of construction services through its electrical and mechanical, and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to commercial, industrial, institutional, renewables, service, transportation, utility and other customers. Its E&M contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems and mechanical piping and services. Its T&D contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as the manufacture and distribution of overhead and underground transmission line construction equipment. For more information about Everus, visit everus.com or email investors@everus.com.
Forward-Looking Statements
Information in this news release includes certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this news release, including statements about the company's future performance, financial guidance, long-term targets and statements made by the CEO, are expressed in good faith and are believed by the company to have a reasonable basis. This news release highlights key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company’s segments. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements.” Although the company believes that its expectations are based on reasonable assumptions as of the date they are made, there is no assurance that the company’s projections, including estimates for growth, shareholder value creation and financial guidance, will be achieved. Readers are encouraged to refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A. Risk Factors in the company's most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission.
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake any obligation to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.
Everus Construction Group, Inc. Condensed Consolidated Statements of Income (Unaudited) | |||||
| Three months ended March 31, | ||||
|
| 2026 |
|
| 2025 |
| (In thousands, except per share amounts) | ||||
Operating revenues | $ | 1,036,953 |
| $ | 826,629 |
Cost of sales |
| 906,224 |
|
| 734,136 |
Gross profit |
| 130,729 |
|
| 92,493 |
Selling, general and administrative expenses |
| 53,045 |
|
| 41,509 |
Operating income |
| 77,684 |
|
| 50,984 |
Interest income |
| 2,324 |
|
| 937 |
Interest expense |
| 4,620 |
|
| 5,631 |
Other income, net |
| 552 |
|
| 567 |
Income before income taxes and income from equity method investments |
| 75,940 |
|
| 46,857 |
Income taxes |
| 20,252 |
|
| 13,573 |
Income from equity method investments |
| 2,628 |
|
| 3,388 |
Net income | $ | 58,316 |
| $ | 36,672 |
|
|
|
| ||
Earnings per share: |
|
|
| ||
Basic | $ | 1.14 |
| $ | 0.72 |
Diluted | $ | 1.14 |
| $ | 0.72 |
Weighted average common shares outstanding: |
|
|
| ||
Basic |
| 51,082 |
|
| 51,042 |
Diluted |
| 51,189 |
|
| 51,091 |
Everus Construction Group, Inc. Condensed Consolidated Balance Sheets (Unaudited) | |||||
| March 31, 2026 |
| December 31, 2025 | ||
| (In thousands, except share and per share amounts) | ||||
Assets |
|
|
| ||
Current assets: |
|
|
| ||
Cash, cash equivalents and restricted cash | $ | 293,356 |
| $ | 170,500 |
Receivables, net of allowance for credit losses of $5,125 and $5,282, respectively |
| 781,563 |
|
| 769,828 |
Contract assets |
| 258,058 |
|
| 255,767 |
Inventories, net |
| 47,978 |
|
| 45,271 |
Prepaid expenses |
| 21,998 |
|
| 38,161 |
Other current assets |
| 18,304 |
|
| 16,854 |
Total current assets |
| 1,421,257 |
|
| 1,296,381 |
Noncurrent assets: |
|
|
| ||
Investments |
| 22,182 |
|
| 27,082 |
Property, plant and equipment, net of accumulated depreciation of $180,742 and $174,914, respectively |
| 174,161 |
|
| 168,498 |
Operating lease right-of-use assets |
| 82,504 |
|
| 88,705 |
Goodwill |
| 143,224 |
|
| 143,224 |
Other noncurrent assets |
| 4,419 |
|
| 4,841 |
Total noncurrent assets |
| 426,490 |
|
| 432,350 |
Total assets | $ | 1,847,747 |
| $ | 1,728,731 |
Liabilities and Stockholders' Equity |
|
|
| ||
Current liabilities: |
|
|
| ||
Current portion of long-term debt | $ | 15,000 |
| $ | 15,000 |
Accounts payable |
| 259,869 |
|
| 226,264 |
Contract liabilities, net |
| 344,959 |
|
| 305,111 |
Taxes payable |
| 22,127 |
|
| 6,483 |
Accrued compensation |
| 70,200 |
|
| 86,960 |
Accrued payroll-related liabilities |
| 48,935 |
|
| 47,189 |
Current portion of operating lease liabilities |
| 32,900 |
|
| 33,905 |
Other accrued liabilities |
| 10,048 |
|
| 15,278 |
Total current liabilities |
| 804,038 |
|
| 736,190 |
Noncurrent liabilities: |
|
|
| ||
Long-term debt, net of unamortized issuance costs |
| 263,024 |
|
| 266,549 |
Deferred income taxes |
| 14,910 |
|
| 14,869 |
Operating lease liabilities |
| 51,665 |
|
| 56,634 |
Other noncurrent liabilities |
| 27,166 |
|
| 24,671 |
Total noncurrent liabilities |
| 356,765 |
|
| 362,723 |
Total liabilities |
| 1,160,803 |
|
| 1,098,913 |
Commitments and contingent liabilities |
|
|
| ||
Stockholders' equity: |
|
|
| ||
Preferred stock, 10,000,000 shares authorized, $0.01 par value, none issued and outstanding |
| — |
|
| — |
Common stock, 300,000,000 shares authorized, $0.01 par value, 51,041,606 and 51,006,719 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |
| 510 |
|
| 510 |
Other paid-in capital |
| 142,376 |
|
| 143,566 |
Retained earnings |
| 544,058 |
|
| 485,742 |
Total stockholders' equity |
| 686,944 |
|
| 629,818 |
Total liabilities and stockholders' equity | $ | 1,847,747 |
| $ | 1,728,731 |
Everus Construction Group, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
| Three months ended March 31, | ||||||
|
| 2026 |
|
|
| 2025 |
|
| (In thousands) | ||||||
Operating activities: |
|
|
| ||||
Net income | $ | 58,316 |
|
| $ | 36,672 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| ||||
Depreciation |
| 8,071 |
|
|
| 6,774 |
|
Amortization of intangible assets |
| — |
|
|
| 116 |
|
Deferred income taxes |
| 41 |
|
|
| 1,048 |
|
Net credit loss reversals |
| (24 | ) |
|
| (1,729 | ) |
Amortization of debt issuance costs |
| 394 |
|
|
| 394 |
|
Stock-based compensation costs |
| 2,004 |
|
|
| 1,747 |
|
Net unrealized losses on investments |
| 247 |
|
|
| 117 |
|
Gain on sale of assets |
| (1,970 | ) |
|
| (2,371 | ) |
Equity in earnings of unconsolidated affiliates, net of distributions |
| 7,203 |
|
|
| (2,743 | ) |
Changes in operating assets and liabilities: |
|
|
| ||||
Receivables |
| (11,711 | ) |
|
| (1,052 | ) |
Contract assets |
| (2,291 | ) |
|
| (54,861 | ) |
Inventories, net |
| (2,707 | ) |
|
| (3,663 | ) |
Other current assets |
| 14,713 |
|
|
| (4,464 | ) |
Accounts payable |
| 33,539 |
|
|
| 43,625 |
|
Contract liabilities, net |
| 39,848 |
|
|
| (20,733 | ) |
Other current liabilities |
| (4,640 | ) |
|
| 7,579 |
|
Other noncurrent changes |
| 2,642 |
|
|
| 672 |
|
Net cash provided by operating activities |
| 143,675 |
|
|
| 7,128 |
|
Investing activities: |
|
|
| ||||
Capital expenditures |
| (15,470 | ) |
|
| (18,539 | ) |
Net proceeds from sale or disposition of property, plant and equipment |
| 3,719 |
|
|
| 3,310 |
|
Proceeds from insurance contracts |
| — |
|
|
| 2,174 |
|
Investments |
| (2,550 | ) |
|
| (1,766 | ) |
Net cash used in investing activities |
| (14,301 | ) |
|
| (14,821 | ) |
Financing activities: |
|
|
| ||||
Repayments of long-term debt |
| (3,750 | ) |
|
| (3,750 | ) |
Tax withholding on stock-based compensation |
| (2,768 | ) |
|
| (588 | ) |
Net cash used in financing activities |
| (6,518 | ) |
|
| (4,338 | ) |
Increase (decrease) in cash, cash equivalents and restricted cash |
| 122,856 |
|
|
| (12,031 | ) |
Cash, cash equivalents and restricted cash - beginning of period |
| 170,500 |
|
|
| 86,012 |
|
Cash, cash equivalents and restricted cash - end of period | $ | 293,356 |
|
| $ | 73,981 |
|
Everus Construction Group, Inc.
Segment and Other Financial Information
(Unaudited)
Revenues
The following table sets forth segment revenues for the periods indicated, as well as the percentage change from the prior period:
| Three months ended March 31, | |||||||||
|
| 2026 |
|
|
| 2025 |
|
| % Change | |
| (In millions, except percentages) | |||||||||
Operating revenues: |
|
|
|
|
| |||||
E&M | $ | 835.1 |
|
| $ | 648.2 |
|
| 28.8 | % |
T&D |
| 204.4 |
|
|
| 185.0 |
|
| 10.5 | % |
Eliminations |
| (2.6 | ) |
|
| (6.6 | ) |
| (60.6 | )% |
Total operating revenues | $ | 1,036.9 |
|
| $ | 826.6 |
|
| 25.4 | % |
Backlog
Backlog is a common measurement in the construction services industry. Everus' determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog also may be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond Everus' control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the following backlog table, Everus did not experience any material impacts related to delays or cancellations of planned projects included in backlog. The timing of contract awards, including contracts awarded pursuant to master service agreements, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any given point in time may not accurately represent revenue or net income realized in any period, and backlog as of the end of the year may not be indicative of revenue or net income expected to be realized in the following year. Backlog should not be relied upon as a stand-alone indicator of future results.
The following table provides estimated backlog as of the dates indicated:
| March 31, 2026 |
| December 31, 2025 |
| March 31, 2025 | |||
| (In millions) | |||||||
E&M | $ | 3,291.2 |
| $ | 2,843.8 |
| $ | 2,704.4 |
T&D |
| 388.9 |
|
| 384.5 |
|
| 353.1 |
Total | $ | 3,680.1 |
| $ | 3,228.3 |
| $ | 3,057.5 |
Everus Construction Group, Inc.
Non-GAAP Financial Measures
(Unaudited)
In addition to information prepared in accordance with GAAP, the company evaluates operating performance using the non-GAAP financial measures of EBITDA, EBITDA margin, net debt and net leverage, and, in some cases, applicable measures by segment, and evaluates its liquidity using the non-GAAP financial measure of free cash flow. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company's results as reported under GAAP. Because of these limitations, EBITDA, EBITDA margin, net debt, net leverage and free cash flow should not be considered as replacements for net income, net income margin, total debt, gross leverage and cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ EBITDA, EBITDA margin, net debt, net leverage and free cash flow having the same or similar names.
EBITDA and EBITDA Margin
Everus utilizes EBITDA and EBITDA margin to consistently assess its operating performance and as a basis for strategic planning and forecasting, since the company believes EBITDA closely correlates to long-term enterprise value.
Contacts
Media Contact
Laura Lueder, director of communications, 701-221-6444
Investor Contact
Paul Bartolai, Vallum Advisors, Paul.Bartolai@everus.com
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