Everus Construction Group Inc (ECG) Q4 2025 Earnings Call Highlights: Record Revenue and …

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Thu, February 26, 2026 at 8:02 AM GMT+9 5 min read

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**Fourth Quarter Revenue:** $1.01 billion, up 33% year-over-year.

**Fourth Quarter EBITDA:** $84.8 million, up 45% year-over-year.

**Fourth Quarter EBITDA Margin:** 8.4%, up 70 basis points from the prior year.

**Full Year 2025 Revenue:** $3.75 billion, up 31.5% from 2024.

**Full Year 2025 EBITDA:** $319.8 million, up 37.7% from 2024.

**Backlog at Year-End 2025:** $3.23 billion, up 16% from the previous year.

**E&M Segment Fourth Quarter Revenue:** $791.6 million, up 44% year-over-year.

**E&M Segment Fourth Quarter EBITDA:** $67.1 million, up 57% year-over-year.

**E&M Segment Fourth Quarter EBITDA Margin:** 8.5%, up 70 basis points from the prior year.

**T&D Segment Fourth Quarter Revenue:** $227.7 million, up 6.8% year-over-year.

**T&D Segment Fourth Quarter EBITDA Margin:** 13.4%, down from 14.3% in the prior year.

**Unrestricted Cash and Cash Equivalents at Year-End:** $152.7 million.

**Operating Cash Flow for 2025:** $156.8 million.

**Capital Expenditures for 2025:** $66.8 million.

**Free Cash Flow for 2025:** $100 million.

**2026 Revenue Guidance:** $4.1 billion to $4.2 billion.

**2026 EBITDA Guidance:** $320 million to $335 million.

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Release Date: February 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Everus Construction Group Inc (NYSE:ECG) reported record full-year revenues exceeding $1 billion for the first time, marking a 33% increase from the prior year.

The company's EBITDA increased by 45% in the fourth quarter, with a margin improvement of 70 basis points, showcasing strong project execution.

ECG's backlog grew by 16% to $3.2 billion, indicating strong demand and execution capabilities across both T&D and E&M segments.

The company successfully expanded its workforce by 8.5%, ending the year with approximately 9,400 employees, supporting its growth initiatives.

ECG is well-positioned for future growth with a robust project pipeline across diverse markets, including data centers, hospitality, and semiconductors.

Negative Points

Despite strong performance, ECG's EBITDA guidance for 2026 is slightly below long-term expectations due to challenging comparisons with 2025's exceptional execution.

The company faces potential labor constraints, a common industry challenge, although it has strategies in place to mitigate this risk.

ECG's free cash flow decreased to $100 million in 2025 from $128.8 million in 2024, reflecting increased investments in working capital and CapEx.

The company's leverage remains significantly below its target range of 1.5 to 2 times, indicating potential underutilization of financial capacity.

ECG has not yet completed any acquisitions, despite having a strengthened corporate development team and a pipeline of potential deals.

 






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Q & A Highlights

Q: Was there anything in particular this year where you had extremely great execution that you don’t expect to repeat into next year? Are you seeing anything different? Or are you just being naturally conservative? A: Ian, this is Jeff. We had exceptional margin up in 2025. And those were diversified contributions from a number of projects. The four most notable ones are from four different markets: data center, institutional, transportation, industrial. We continue to focus on operational excellence and are confident in our ability to achieve 7.9% to 8% margins in 2026.

Q: How are you thinking about leverage, given that it is very low? And what about free cash flow conversion going forward? A: Having a strong balance sheet is important for supporting organic growth and strategic M&A. We are actively looking for M&A opportunities and believe 1.5 to 2 times net leverage is the right long-term target. Regarding free cash flow, we expect less investment in working capital needs next year, maintaining good free cash flow conversion despite increased CapEx.

Q: With record backlog entering 2026, are there any capacity constraints for building the book of business? A: Our record backlog provides clear visibility for 2026, with some projects extending into 2027. The backlog contributions are diversified across data centers, hospitality, high tech, substation, and transmission. We are confident in our ability to add skilled labor to complete projects and support our financial goals.

Q: How are you thinking about satellite expansions in 2026? Are there any specific geographies you are targeting? A: We have a good playbook for satellite operations and are selective in our expansions. We assess local markets and bring in core people to build momentum. Opportunities exist across the country, particularly in the South and Southeast, if we find the right work and jobs.

Q: Can you comment on labor costs and your ability to incorporate them into pricing? A: Labor is crucial for our success. Our leaders have experience in contract negotiations and sit on labor management committees. We forecast potential increases into pricing for both cost-plus and fixed-price jobs, and we do not see labor cost increases as a risk.

Q: Are you considering pursuing large transmission projects? A: We are pursuing large transmission projects selectively, considering resource availability, timing, and terms. T&D is an important part of our business, and we are proud of our leadership and field professionals. We will continue to assess opportunities and ensure good project execution.

Q: How should we think about margins through a cycle for the E&M and T&D segments? A: It’s more about growing and leveraging our fixed cost base. With half of our contracts being cost-plus, margins don’t necessarily contract through a cycle. We focus on strategic alignment of resources and pursuits to maintain stability and margin uplift opportunities.

Q: Can you provide insight into the composition of data center and semiconductor exposure in the backlog? A: We don’t break down backlog details to that level, but both data centers and semiconductors have increased. Data centers are the largest market in our backlog, and semiconductor exposure is growing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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