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Everus Construction Group Inc (NYSE:ECG) shares jumped 9.49% following its third-quarter 2025 earnings presentation on November 5, as the company reported substantial growth and raised its full-year guidance. The construction services provider delivered impressive results across key metrics, driven primarily by strong performance in its Electrical & Mechanical (E&M) segment.
Quarterly Performance Highlights
Everus reported robust financial results for Q3 2025, with revenue growing 30% year-over-year to $986.8 million. EBITDA increased by 37% to $89.0 million, while EBITDA margin expanded by 50 basis points to 9.0%. The company's backlog remained strong at $2.95 billion, up 2% from the prior year, indicating sustained demand for its services.
As shown in the following performance summary chart:
"Strong E&M growth, continued backlog momentum, and project execution" were highlighted as key drivers of the quarter's success. The company's earnings per share of $1.11 significantly outperformed analyst expectations of $0.73, representing a 52.05% positive surprise.
Segment Analysis
Everus's performance was led by exceptional growth in its E&M segment, which saw revenues increase by 43% to $767.3 million, primarily due to strength in commercial projects, particularly in the data center submarket. The segment's EBITDA surged by 64% to $66.9 million.
Meanwhile, the Transmission & Distribution (T&D) segment demonstrated margin improvement despite a slight revenue decline. T&D revenues decreased by 2% to $223.4 million, but EBITDA increased by 11% to $33.8 million, highlighting the company's operational efficiency.
The segment performance breakdown is illustrated here:
During the earnings call, CEO Jeff Thede emphasized the importance of the data center market, stating, "Data centers have become a very big part of our business." This strategic focus has clearly paid dividends for the company's overall performance.
Balance Sheet Strength & Capital Allocation
Everus maintained a strong financial position with net debt of $159 million and total cash and availability of $337 million as of September 30, 2025. The company's net leverage ratio stood at a conservative 0.5x, well below its long-term target range of 1.5x-2.0x, providing significant financial flexibility for future growth initiatives.
The company generated free cash flow of $74.8 million for the nine months ended September 2025, demonstrating its ability to convert earnings into cash. This financial strength positions Everus well for potential strategic acquisitions.
The following chart illustrates the company's balance sheet and liquidity metrics:
CEO Thede highlighted this advantage during the earnings call, noting, "The strength of our balance sheet is putting us in a good position to be able to do a meaningful acquisition."
Raised Guidance & Strategic Outlook
Following the strong quarterly performance, Everus raised its full-year 2025 guidance. The company now expects revenues of $3.55-$3.65 billion, up from the previous guidance of $3.3-$3.4 billion. Similarly, EBITDA guidance was increased to $290-$300 million.
The updated guidance reflects "strong year-to-date results and continued business momentum," as shown here:
Everus's long-term strategy, known as "4EVER," focuses on four key pillars: Employees, Value, Execution, and Relationships. Through this framework, the company aims to achieve organic revenue growth of 5-7% and EBITDA growth of 7-9% over the long term.
The company's value creation framework emphasizes:
Competitive Industry Position
Everus has positioned itself to capitalize on several industry megatrends, particularly in data center construction and utility grid modernization. The company's national platform of market-leading local brands allows it to maintain strong customer relationships while pursuing growth opportunities across various regions and sectors.
The company's backlog has shown consistent growth since 2021, reaching $2.95 billion in Q3 2025, as illustrated in this chart:
With its strong financial performance, raised guidance, and strategic focus on high-growth markets, Everus Construction appears well-positioned to continue its growth trajectory. The stock has gained over 75% in the past year, reflecting strong investor confidence in the company's strategy and execution.
As the construction services market continues to evolve, Everus's disciplined approach to capital allocation and focus on operational excellence should help it navigate potential challenges while capitalizing on growth opportunities in its key markets.
Full presentation:
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