Everus Construction Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenues reached $1.38 billion, a 40.3% increase year-over-year from $986.8 million; organic revenue growth was 35.8%.
• Net income for Q3 2026 was $91.9 million, up 61.2% from $57.0 million in Q3 2025, resulting in a net income margin of 6.6% (up from 5.8%).
• Diluted earnings per share (EPS) for Q3 2026 were $1.79, up 61.3% from $1.11 in the prior year period.
• EBITDA for Q3 2026 was $140.2 million, a 57.5% increase from $89.0 million in Q3 2025, with an EBITDA margin of 10.1% (up from 9.0%).
• Gross profit for Q3 2026 increased 65.1% to $205.0 million from $124.2 million, driven by revenue growth and a $7.6 million net benefit from a dispute resolution on prior billings; gross margin improved to 14.8% from 12.6%.
• SG&A expenses rose 55.8% to $80.7 million in Q3 2026 from $51.8 million, driven by $13.4 million in higher incentive compensation, $6.7 million in acquisition-related costs, and $5.7 million in higher amortization.
• For the nine months ended September 30, 2026, revenues were $3.65 billion (up 33.6%), net income was $234.1 million (up 59.8%), and EBITDA was $357.7 million (up 52.2%).
• Net leverage was 0.7x as of September 30, 2026, compared to 0.4x as of December 31, 2025.
• Free cash flow for the nine months ended September 30, 2026, was $221.2 million, up from $74.8 million in the prior year period.
• Operating cash flows for the nine months ended September 30, 2026, were $267.3 million, compared to $108.6 million in the prior year period.

Guidance and Future Outlook:

• Everus raised full-year 2026 revenue guidance to a range of $5.0 billion to $5.1 billion, up from the previous range of $4.5 billion to $4.7 billion.
• Full-year 2026 EBITDA guidance was raised to a range of $485 million to $495 million, up from the previous range of $410 million to $425 million.
• Gross capital expenditures for 2026 are expected to remain in the range of $90 million to $100 million, representing 1.8% to 2.0% of forecasted revenues.
• Management expects a strong finish to the year driven by sustained momentum across the business.

Business Segments and Product Lines:

• Electrical and Mechanical (E&M): Q3 2026 revenues were $1.14 billion, up 48.0% year-over-year; organic growth was 42.3%. Segment net income increased 73.3% to $88.2 million, and EBITDA increased 79.1% to $119.8 million. E&M backlog grew 98.9% to $5.11 billion. Growth was driven by commercial and industrial end markets, specifically data center and high-tech submarkets, partially offset by lower revenues in renewables.
• Transmission and Distribution (T&D): Q3 2026 revenues were $255.6 million, up 14.4% year-over-year. Segment net income increased 13.3% to $23.0 million, and EBITDA increased 13.3% to $38.3 million. T&D backlog decreased to $371.3 million from $375.8 million in the prior year period. Growth was driven by utility end markets (transmission, distribution, underground), partially offset by lower transportation revenues.
• Acquisitions: Everus completed the acquisition of Epsilon Industries on September 1, 2026, expanding off-site modular construction and prefabrication capabilities. Acquisitions completed during the nine months ended September 30, 2026, contributed an estimated $742.3 million to backlog and $77.1 million to revenues.

Market and Competitive Landscape:

• Strong project opportunities exist across diverse markets, including data center, high-tech, and hospitality submarkets.
• The company cites robust market demand and deep, long-standing customer relationships as key drivers of its industry position.
• The E&M segment saw significant growth in data center and high-tech submarkets, while the T&D segment saw growth in utility transmission and distribution submarkets.

Risks and Challenges:

• Backlog is subject to delays, defaults, cancellations, scope changes, and adjustments to costs.
• Project timing, weather conditions, external market factors, and economic factors beyond the company's control may impact backlog realization.
• SG&A expenses increased significantly due to higher incentive compensation, acquisition-related costs, and amortization expenses.
• Net income growth was partially offset by higher income taxes on greater pretax income and lower other income.
• Forward-looking statements regarding growth, guidance, and shareholder value creation are subject to assumptions that could cause actual results to differ materially.

Management Commentary and Tone:

• Jeffrey S. Thiede, President and CEO, described the quarter as delivering "record financial results" reflecting "robust market demand, disciplined execution and our continued focus on our 4EVER strategic priorities."
• Management highlighted an 110 basis point expansion in EBITDA margin, attributing it to the team's commitment to the operational playbook.
• The CEO expressed confidence in the company's ability to deliver long-term value by capitalizing on significant opportunities ahead.
• Integration of Epsilon Industries is progressing as planned, with teams working to expand modular construction usage to meet growing demand.

Other Key Points:

• Everus entered into an amended credit agreement in Q3 2026, increasing the revolving credit facility by $125.0 million; $100.0 million was drawn and remained outstanding as of September 30, 2026.
• Investing cash flows included net cash outflows of $380.5 million related to acquisitions completed during the nine months ended September 30, 2026.
• Capital expenditures for the nine months ended September 30, 2026, were $53.4 million, up from $42.1 million, driven by increased vehicle and equipment investments.
• Unrestricted cash and cash equivalents were $244.8 million as of September 30, 2026, compared to $152.7 million as of December 31, 2025.
• Working capital increased to $612.3 million as of September 30, 2026, from $560.2 million as of December 31, 2025, driven by increased receivables, cash, and net contract liabilities.
• The company is a member of the S&P SmallCap 600® index.