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Everus Construction Group (NYSE: ECG) reported a strong start to 2026, with first-quarter revenue and EBITDA rising sharply from the prior-year period as growth continued across both of its main business segments.
President and CEO Jeff Thiede said the company delivered “another quarter of record revenues,” maintained strong project execution and completed its first acquisition as a standalone public company with the purchase of SE&M. Everus also raised its full-year 2026 outlook, citing first-quarter performance and the expected contribution from SE&M.
First-quarter revenue rose 25% year over year to $1.04 billion, while total EBITDA increased 44% to $88.9 million. EBITDA margin improved to 8.6%, up from 7.5% in the same period last year, supported by revenue growth, strong project execution and favorable weather.
CFO Max Marcy said the company’s performance reflected execution discipline, and Thiede emphasized Everus’ focus on delivering work safely, on time and on budget across more than 40,000 projects annually.
Everus ended the quarter with backlog of $3.68 billion, up 20% from March 31 of the prior year. Management said backlog growth was broad-based, with gains across both the Electrical & Mechanical (E&M) and Transmission & Distribution (T&D) segments.
In the E&M segment, first-quarter revenue increased 29% to $835.1 million. Management said the increase was primarily driven by growth in the commercial market, including continued strength in the data center submarket. E&M EBITDA rose 52% to $75.3 million, and segment EBITDA margin increased to 9% from 7.6% a year earlier.
In T&D, first-quarter revenue increased 10.5% to $204.4 million, driven by the utility end market and limited weather disruptions early in the year. T&D EBITDA rose 35% to $27.1 million, and segment EBITDA margin improved to 13.3% from 10.9% in the prior-year period.
Backlog also increased in both segments: T&D backlog rose 10% year over year, supported by transmission and undergrounding work, while E&M backlog grew 22%, reflecting growth in data centers, hospitality and the first larger work tied to a new geography Everus entered last year.
Thiede described the acquisition of SE&M as a key development in Everus’ capital allocation and growth strategy. SE&M is headquartered in North Carolina and provides mechanical, electrical and plumbing services, with about two-thirds of revenue from mechanical services. Thiede said more than 60% of SE&M revenue comes from service work and renovation and retrofit projects.
Everus said the acquisition expands its presence in the Southeast and adds exposure to markets including pharma, healthcare and complex industrial. Thiede said SE&M’s leadership team, including Zack Bynum, Patrick Rogers and Alex Bynum, is remaining with the company, and that integration is on track.
Marcy said SE&M generated $109 million of revenue in 2025 with a high-teens EBITDA margin. He also said SE&M is forecast to contribute between mid-teens and high teens of EBITDA in 2026, and that this contribution accounts for most of the company’s guidance increase. Marcy said investors could assume “some mid to high” percentage revenue growth for SE&M while maintaining previously disclosed margins.
Everus raised its full-year 2026 guidance to revenue of $4.3 billion to $4.4 billion and EBITDA of $345 million to $360 million. At the midpoint, the outlook implies an EBITDA margin of 8.1%, reflecting first-quarter execution upside and margin accretion from SE&M.
For the remainder of the year, Marcy said guidance assumes EBITDA margins “right around 8%” for the legacy business. He also noted more muted seasonal patterns in 2026 due to a shift in revenue mix toward E&M, adding that the company did not see a seasonal dip in the first quarter and does not expect much of a seasonal step-up through the year.
As of March 31, Everus reported $275 million of unrestricted cash and cash equivalents, along with $281.2 million of gross debt and $222.8 million available under its credit facility. Marcy said the company had virtually no net debt at the end of the first quarter. After completing the SE&M transaction on April 2, pro forma net leverage was approximately 0.5 times.
Operating cash flow was $143.7 million in the first quarter, compared with $7.1 million in the year-earlier period. Free cash flow was $131.9 million, compared with a use of cash of $8.1 million in the first quarter of 2025. Marcy said first-quarter cash flow reflected timing benefits and that the company still expects more normalized free cash flow conversion for the full year.
Thiede emphasized Everus’ preference for a balanced mix of contract types, saying the company remains roughly balanced between fixed-price and cost-plus work. He said cost-plus contracts can help mitigate risk on large, complex projects where scope and design may not be fully known early in the process.
On geographic expansion, Thiede said Everus expects additional awards as a referenced high-tech project continues to develop, noting the company entered the region with an anchor project, a long-term general contractor relationship and a new end user.
Regarding utility demand tied to large data centers and AI infrastructure, Thiede said Everus is seeing increased opportunities in transmission. He said transmission backlog increased sequentially during the quarter, but the company will remain selective and focus on projects in core geographies where it has available resources.
On labor availability, Thiede said qualified labor has “always been a challenge,” but Everus continues to emphasize outreach, orientation, training and development, and is confident it can scale its workforce to support growth.
Everus Construction Group provides a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in the 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, North Dakota.
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