Everus Construction Group (NYSE:ECG) reported record fourth-quarter and full-year 2025 results on its earnings call, marking what management described as a “transformational year” and the company’s first year as a standalone public company. CEO Jeff Thiede and CFO Max Marcy pointed to robust end-market demand, disciplined project selection, and strong execution as key drivers of performance, while outlining 2026 guidance that implies continued growth but moderating profitability comparisons after what executives characterized as unusually strong execution in 2025.
Fourth-quarter performance tops $1 billion in revenue for the first time
Thiede said Everus delivered “another quarter of exceptional financial performance” in Q4, with revenue exceeding $1 billion for the first time in company history. Marcy reported Q4 revenue of $1.01 billion, up 33% year over year, driven by growth in both the company’s Electrical & Mechanical (E&M) and Transmission & Distribution (T&D) segments.
Full-year 2025 results: revenue up 31.5% and EBITDA reaches $319.8 million
For full-year 2025, Marcy reported revenue of $3.75 billion, up 31.5%, led by 44% growth in E&M revenue. Full-year EBITDA increased 37.7% to $319.8 million, reflecting the revenue increase and “continued strong project execution,” partially offset by the impact of standalone public-company costs.
Thiede highlighted that full-year EBITDA was $320 million, up 52% versus 2024 after adjusting for incremental standalone operating costs, and said EBITDA margin expanded by 40 basis points as reported and 110 basis points when adjusted for those standalone costs.
When asked about the margin outlook relative to 2025’s performance, Thiede said the company saw “exceptional margin upside” in 2025 across multiple projects, with notable contributions coming from four different markets: data center, institutional, transportation, and industrial. Management said it remains confident in achieving an EBITDA margin around 8% in 2026, even while acknowledging the year-over-year comparison would be challenging given 2025’s execution.
Backlog grows to $3.23 billion as Everus highlights diversified demand
Everus ended 2025 with record backlog of $3.23 billion, up 16% from the prior year, despite delivering record Q4 revenue. Thiede and Marcy both emphasized favorable end-market trends and ongoing strength in the project pipeline, calling out demand across data center, hospitality, semiconductor, transmission, and undergrounding.
Segment backlog trends were mixed but positive:
- T&D backlog increased 41% year over year, which management attributed to utility end-market activity, particularly undergrounding and transmission work.
- E&M backlog increased 13%, reflecting growth in data center, hospitality, and high-tech.
On timing, Thiede said about 80% of backlog typically converts to revenue within 12 months. He added that while the backlog provides a clear line of sight for 2026, some projects extend into 2027. In response to questions about capacity constraints, Marcy said the company is confident it has the labor needed to support 2026 guidance, while Thiede acknowledged labor constraints are “real” across the industry but said Everus has historically been able to scale its workforce effectively.
Segment results: E&M drives growth while T&D margins ease
In E&M, Q4 revenue rose 44% to $791.6 million, driven primarily by commercial and renewables markets, with “continued strength in our data center sub-market” cited as a key contributor. E&M EBITDA increased 57% to $67.1 million, and segment EBITDA margin improved to 8.5% from 7.8%, helped by project timing and efficient execution, partially offset by higher SG&A.
In T&D, Q4 revenue grew 6.8% to $227.7 million, driven by transportation and utility end markets. T&D EBITDA was essentially flat at $30.5 million, and segment EBITDA margin declined to 13.4% from 14.3%, with management citing project mix and higher SG&A.
Executives also discussed the company’s contract mix. Management said roughly half of Everus’ work is cost-plus and half fixed-price, with Thiede noting that cost-plus work often involves “very large, very complex projects.” In T&D specifically, Thiede said 55% to 60% of work is tied to master service agreement (MSA) activity, which the company views as providing stability, while still leaving room for margin uplift opportunities through fixed-price work.
Balance sheet, investment priorities, and 2026 outlook
Everus ended the year with $152.7 million in unrestricted cash, $285 million of gross debt, and $222.8 million available under its credit facility. Marcy said net leverage was approximately 0.4x net debt to trailing 12-month EBITDA. Operating cash flow was $156.8 million, and free cash flow was $100 million, down from $128.8 million in 2024 due to higher working capital needs and increased CapEx.
Capital expenditures totaled $66.8 million in 2025, up from $43.8 million, including the purchase of the Kansas City prefabrication facility and additional vehicle and equipment purchases in T&D. Management reiterated a long-term expectation of investing 2% to 2.5% of revenue in CapEx. Thiede also said the company does not currently have a return-of-capital program, given its focus on reinvesting for growth and maintaining financial flexibility.
On M&A and leverage, management said it is actively evaluating a “broad and deep” pipeline of potential acquisition targets, aiming for accretive transactions that expand geography, diversify the business, or deepen market presence. Marcy reiterated a long-term leverage target of 1.5x to 2.0x, while emphasizing discipline around timing and deal quality. When asked about transaction valuation, Marcy said deals in the space have been seen at around 9x to 10x.
For 2026, Everus issued initial guidance calling for:
- Revenue of $4.1 billion to $4.2 billion
- EBITDA of $320 million to $335 million
At the midpoint, management said the outlook implies 11% revenue growth and 2% EBITDA growth. Marcy said revenue guidance is above the company’s long-term 5% to 7% growth target due to elevated backlog and market strength, while EBITDA guidance reflects the difficulty of comparing against 2025’s execution. The midpoint implies an EBITDA margin “just under 8%,” which management said is above the company’s historical core margins in the mid-7% range, reflecting scale benefits and visibility into execution.
During the Q&A, executives also addressed labor dynamics. Thiede said Everus has visibility into labor cost increases and is incorporating those assumptions into pricing, stating the company does not view labor cost increases as a risk to pricing on either cost-plus or fixed-price work. The company ended 2025 with approximately 9,400 employees, up from 8,700 at the end of 2024.
Looking ahead, Thiede reiterated confidence in the company’s strategy and said Everus expects contribution in 2026 from a newer satellite operation referenced in prior quarters. Management also said it continues to pursue large transmission opportunities selectively, balancing resource availability, timing, and customer commitments.
About Everus Construction Group (NYSE:ECG)
Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.
