Everus Construction Group Q2 Earnings Call Highlights

Everus Construction Group NYSE: ECG reported record second-quarter revenue and EBITDA as demand remained strong across its electrical and mechanical, or E&M, and transmission and distribution, or T&D, businesses. The company also raised its full-year 2026 revenue and EBITDA guidance following what CEO Jeff Thiede described as sustained market demand, strong project execution and robust backlog growth.

Second-quarter revenue totaled $1.23 billion, up 34% from the prior-year period. EBITDA increased 53% to $128.6 million, while EBITDA margin expanded 130 basis points to 10.4%, according to CFO Max Marcy. Excluding the contribution from recently acquired SE&M Constructors, revenue rose 30% organically.

Backlog stood at $4.55 billion as of June 30, an increase of 53% from a year earlier. E&M backlog rose 62%, driven by organic growth across all E&M markets and approximately $100 million of backlog contributed by SE&M at quarter-end. Management said it had not experienced project cancellations or notable changes in customer or project activity. Thiede said the company’s data center work remains its largest backlog component, though backlog increased sequentially in nearly all end markets. Marcy added that most of the sequential backlog increase did not come from the commercial market. The company expects roughly 80% of its backlog to convert to revenue within 12 months, consistent with its historical pattern. Thiede said margins on the work in backlog are comparable with those seen in prior periods, while the company will continue seeking improved results through execution.

E&M revenue increased 42% to $1.01 billion, or 37% organically excluding SE&M. E&M EBITDA rose 72% to $109.3 million, with segment EBITDA margin increasing 190 basis points to 10.8%. T&D revenue grew 7.1% to $227.5 million, driven by utility-market growth. T&D EBITDA increased 7.9% to $32.8 million, with segment margin of 14.4%, compared with 14.3% a year earlier.

Thiede attributed the E&M segment’s margin performance to planning, contract reviews, estimating, labor availability, employee training and the company’s repeatable operating processes. He said safe and productive project execution, as well as customer relationships that can lead to repeat work, have supported margins. Management said off-site construction, modular construction and prefabrication remain key operational priorities. Thiede said controlled shop environments can support safer working conditions, more efficient use of labor and materials, and more predictable project outcomes. Everus is also pursuing demand in semiconductor construction.