Q2 2026 Everus Construction Group Inc Earnings Call Transcript
Key Points
- Record second-quarter revenues of $1.23 billion, up 34% year-over-year, with strong growth across both E&M and T&D segments.
- EBITDA margin expanded by 130 basis points to 10.4%, driven by strong project execution and operational efficiencies.
- Backlog reached a record $4.55 billion, up 53% year-over-year, with broad-based growth across nearly all end markets.
- Announced the acquisition of Epsilon Industries, which will expand off-site modular construction capabilities and geographic footprint.
- Strong balance sheet with net leverage of 0.3 times, well below the 1.5-2 times target, providing ample flexibility for future M&A.
- Raised full-year 2026 guidance for revenues ($4.5-$4.7 billion) and EBITDA ($410-$425 million) due to robust first-half performance.
- Data centers remain the largest part of backlog, indicating potential customer concentration risk despite serving them in multiple regions.
- Management expects EBITDA margins to normalize to around 8.5% in the second half of 2026, down from the 10.4% achieved in Q2.
- The Epsilon acquisition is not included in 2026 guidance, creating uncertainty about its near-term financial contribution.
- Free cash flow in the first half benefited from favorable working capital timing, which is not expected to persist through the remainder of the year.
- Long-term growth targets of 5-7% organic revenue growth and 7-9% EBITDA CAGR may be considered conservative given current market momentum.
- The integration of SE&M Constructors is still in progress, and the successful integration of Epsilon remains a key execution risk.
Hello, everyone. Thank you for joining us, and welcome to the Everus second-quarter 2026 earnings call. (Operator Instructions)
I will now hand over the conference to Paul Bartolai. Please go ahead.
Thank you. Good morning, everyone, and welcome to Everus Construction Group's second-quarter 2026 results conference call. Leading the call today are CEO, Jeff Thiede; and CFO, Max Marcy. We issued a news release yesterday detailing our second-quarter 2026 operational and financial results. This release and the accompanying presentation materials are available on our website at investors.everus.com.
I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results could differ materially.
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