Everus Construction Group (NYSE:ECG) raised its full-year 2026 outlook after reporting record third-quarter revenue, earnings and backlog, as demand for data center construction and growth across other markets fueled a 40% increase in revenue.
The company reported revenue of $1.38 billion for the quarter and EBITDA of $140.2 million, up 57.5% from a year earlier. Results included a one-time net gain of $7.6 million from the settlement of outstanding billings on a past project. EBITDA margin rose to 10.1% from 9.0%.
Chief Financial Officer Max Marcy said revenue increased 36% organically, excluding contributions from the acquisitions of SE&M and Epsilon. Backlog reached $5.48 billion at Sept. 30, up 86% from a year earlier, including approximately $742 million from the two acquired businesses.
Data centers lead backlog growth
Chief Executive Officer Jeff Thiede said data center work was a key driver of backlog growth and remained the largest part of the company’s backlog. Everus works primarily with large hyperscalers and is involved in their project planning, giving it visibility beyond the work currently in backlog, he said.
Asked about potential construction pauses or less data center-friendly policies following elections, Thiede said the company had not seen a change in customer behavior. “Our outlook for data centers is strong,” he said.
Thiede also cited growth in semiconductor, government, healthcare and other work. He said an initial project for a semiconductor customer in a new geographic market was progressing well and described the opportunity in that region as multiyear. Utility backlog also grew, with Thiede pointing to substation and transmission work.
Segment growth and acquisitions
Electrical and mechanical, or E&M, revenue rose 48% to $1.14 billion, primarily reflecting growth in commercial and industrial markets as well as acquisitions. Excluding acquired revenue, segment growth was 42%. E&M EBITDA increased 79% to $119.8 million, and its margin expanded to 10.5% from 8.7%.
Transmission and distribution revenue grew 14% to $255.6 million, driven by utility work. Segment EBITDA rose 13.3% to $38.3 million, while its margin was 15%, roughly level with the prior-year quarter.
Everus closed its acquisition of Epsilon on Sept. 1. Thiede said the deal expands the company’s modular construction capabilities and geographic reach, while creating potential to cross-sell services to customers. SE&M, acquired in April, expanded Everus’ presence in pharmaceutical and healthcare work and increased its mechanical business, he said.
Marcy said Epsilon’s modular activity typically converts backlog to revenue more slowly than Everus’ other work, and its revenue can be lumpier than the company’s on-site E&M business. Thiede said Everus has previously reported an overall backlog burn rate of about 80% over 12 months.
Outlook and balance sheet
Everus now forecasts 2026 revenue of $5 billion to $5.1 billion and EBITDA of $485 million to $495 million. Marcy said the guidance reflects strong results, the inclusion of Epsilon and continued business momentum. At the midpoint, the forecast implies an EBITDA margin of approximately 9.7%.
Marcy declined to provide a 2027 margin outlook, saying the company expects to issue guidance in February. He said third-quarter performance included execution benefits as well as increases in core margins.
For the first nine months of 2026, operating cash flow rose to $267.3 million from $108.6 million a year earlier, helped by operating results and favorable working-capital timing. Free cash flow increased to $221.2 million from $74.8 million.
Net leverage was 0.7 times trailing 12-month EBITDA at quarter end, below the company’s targeted range of 1.5 to 2 times. Everus maintained its 2026 capital expenditure forecast of $90 million to $100 million. Marcy said investments in Epsilon and other modular and prefabrication opportunities remain consistent with the company’s long-term capital spending target of 2% to 2.5% of revenue.
About Everus Construction Group (NYSE:ECG)
Everus Construction Group, Inc (NYSE: ECG) is a U.S.-based infrastructure construction company that provides services to utilities, energy companies, industrial customers, commercial businesses and government entities. The company focuses on building, upgrading and maintaining essential infrastructure across the electric, natural gas, communications and industrial sectors.
Its services include the construction and maintenance of electric transmission and distribution systems, substations, renewable energy facilities, natural gas pipelines and underground utilities.
