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Introduction & Market Context
Everus Construction Group Inc. (ECG) presented its second quarter 2025 results on August 13, 2025, revealing substantial growth across key financial metrics. The construction services provider is experiencing significant momentum, particularly in data center construction, which has fueled impressive performance improvements.
The company’s stock is responding strongly to the results, with premarket trading showing a 24.01% increase to $94.00, building on yesterday’s 6.94% gain. If sustained, this would push Everus shares well above their 52-week high of $77.93.
Quarterly Performance Highlights
Everus reported second quarter revenue of $921.5 million, representing a 31% increase from $703.3 million in the same period last year. EBITDA grew even faster at 35.6%, reaching $84.2 million compared to $62.1 million in Q2 2024. The company also achieved EBITDA margin expansion of 30 basis points, improving from 8.8% to 9.1%.
As shown in the following performance summary chart:
The company’s backlog reached $3.0 billion, up 23.9% year-over-year from $2.4 billion, providing strong visibility for future revenue. This marks the continuation of a growth trend that has been building over several quarters.
"Our second quarter results demonstrate the continued strength of our business model and the success of our 4EVER strategy," commented Everus in its presentation, highlighting the company’s focus on Employees, Value, Execution, and Relationships as key pillars driving sustainable growth.
Segment Performance Analysis
Everus’s performance was particularly strong in its Electrical & Mechanical (E&M) segment, which saw a 42% revenue increase to $713.6 million. This segment’s EBITDA jumped 53% to $63.7 million, with margins expanding by 70 basis points to 8.9%. The company attributed this exceptional growth to continued momentum in data center construction.
The Transmission & Distribution (T&D) segment delivered more modest revenue growth of 3%, reaching $212.4 million, but achieved impressive EBITDA growth of 19% to $30.4 million. T&D margins expanded significantly by 200 basis points to 14.3%, reflecting improved operational efficiency and favorable project mix.
The segment breakdown is illustrated in the following chart:
This performance builds on the momentum seen in Q1 2025, when Everus reported a 47% increase in E&M revenue. The continued acceleration in the E&M segment underscores the company’s strong positioning in the rapidly expanding data center market.
Balance Sheet Strength & Capital Allocation
Everus maintained a strong financial position in Q2 2025, with net debt of $228 million, down from $242 million in Q1 2025. The company’s net leverage ratio improved to 0.8x, well below its long-term target range of 1.5x-2.0x, providing significant financial flexibility for future growth initiatives.
Total unrestricted cash and cash equivalents plus revolver availability stood at $274 million as of June 30, 2025. Free cash flow for the first half of 2025 was $7 million, a substantial improvement from a use of $7 million in the same period last year.
The company’s balance sheet metrics are visualized in this chart:
Capital expenditures nearly doubled in the first half of 2025 to $31.6 million, compared to $16.5 million in the first half of 2024, reflecting investments to support the company’s growth trajectory.
Raised 2025 Guidance & Long-term Outlook
Following the strong first-half performance, Everus has raised its full-year 2025 guidance. The company now expects revenues of $3.3-$3.4 billion and EBITDA of $240-$255 million, as shown in the following guidance slide:
This represents a significant increase from the guidance provided after Q1 2025, when the company projected revenues of $3.0-$3.1 billion and EBITDA of $210-$225 million.
The improved outlook reflects continued strong demand for E&M services driven by data center and high-tech reshoring initiatives, as well as T&D growth fueled by grid modernization and hardening projects.
For the longer term, Everus outlined its expectations under its 4EVER strategy, targeting 5%-7% organic revenue CAGR and 7%-9% EBITDA CAGR, with capital expenditures of 2.0%-2.5% of revenue and net leverage of 1.5x-2.0x.
The company’s value creation framework emphasizes three key areas: targeted commercial growth, operational excellence, and disciplined capital allocation, as illustrated in this strategic overview:
Investment Positioning
Everus presented a compelling investment thesis centered on its exposure to multiple growth drivers and industry megatrends, particularly in data centers and grid modernization. The company emphasized its scaled national platform of market-leading local brands and its skilled workforce as key competitive advantages.
The presentation highlighted Everus’s diversified revenue base and disciplined approach to capital allocation as factors supporting sustainable value creation. Management expressed confidence in the company’s ability to continue executing its growth strategy while maintaining strong margins and returns.
Given the significant stock price movement in premarket trading, investors appear to be responding positively to both the strong Q2 results and the raised full-year guidance, suggesting confidence in Everus’s ability to capitalize on favorable industry trends through the remainder of 2025 and beyond.
Full presentation:
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