Everus Reports Second Quarter 2026 Results, Raises 2026 Guidance
Key Terms
ebitda financial
net leverage financial
non-gaap financial measures financial
organic revenue growth financial
Second Quarter 2026 Summary
(All comparisons versus the prior-year period unless otherwise noted, and results denoted with * are quarterly records.)
-
Revenues of
$1.23 billion 33.7% . -
Net income of
$83.9 million 58.9% ; net income margin of6.8% . -
Diluted earnings per share (EPS) of
$1.64 59.2% . -
Earnings before interest, taxes, depreciation and amortization (EBITDA) of
$128.6 million 52.7% ; EBITDA margin of10.4% . -
Backlog of
$4.55 billion 41.0% from Dec. 31, 2025, and up52.8% from June 30, 2025. - Net leverage of 0.3x.
- On July 31, Everus announced that it entered into a definitive agreement to acquire Epsilon Industries.
See the Non-GAAP Measures sections for definitions and reconciliations of the non-GAAP financial measures used in this news release.
Management Commentary
“Our positive momentum continues as sustained demand and strong execution resulted in another quarter of record revenues, margin expansion and robust backlog growth,” said Jeffrey S. Thiede, president and CEO of Everus. “Second quarter revenues increased
“Demand for our services remains robust, and we believe we are well positioned to benefit as evidenced by project bookings of more than
“We are making important progress on our key growth initiatives, highlighted by the recently announced acquisition of Epsilon Industries; the on-track integration of SE&M Constructors, which was acquired in the second quarter; and the ramp-up of the initial project in the new geography we entered last year. We look forward to closing on the acquisition of Epsilon, which will significantly expand our off-site modular construction and prefabrication capabilities, extend our geographic reach, strengthen our position in key end markets and enable efficient growth. We continue to maintain ample financial flexibility for our organic growth initiatives and acquisition opportunities.
“With our strong performance in the first half of the year and continued robust demand across our business, we are raising guidance on our full-year outlook. We now expect revenues to be in the range of
Second Quarter 2026 Consolidated Results
Revenues increased
Gross profit increased
Selling, general and administrative (SG&A) expenses increased
Net income increased
EBITDA increased
Backlog increased to
Second Quarter 2026 Segment Results
Electrical and Mechanical
E&M segment revenues increased
E&M segment net income increased
E&M segment EBITDA increased
E&M backlog increased to
Transmission and Distribution
T&D segment revenues increased
T&D segment net income increased
T&D segment EBITDA increased
T&D backlog increased to
Six Months Ended June 30, 2026, Consolidated Results
Revenues increased
Gross profit increased
SG&A expenses increased
Net income increased
EBITDA increased
Balance Sheet and Cash Flow Commentary
Balance Sheet
As of June 30, 2026, the company had
As of both June 30, 2026, and Dec. 31, 2025, the company had
Net leverage, defined as net debt-to-trailing 12-month EBITDA, was 0.3x as of June 30, 2026, compared to 0.4x as of Dec. 31, 2025.
Working capital, defined as current assets minus current liabilities, was
Cash Flow
Operating cash flows were
Capital expenditures were
Everus had free cash flow of
Investing cash flows included net cash outflows of
Forecast for 2026
As a result of strong first-half results and the SE&M acquisition, Everus is raising its revenues and EBITDA guidance and now expects:
-
Revenues to be in the range of
$4.5 billion $4.7 billion $4.3 billion $4.4 billion -
EBITDA to be in the range of
$410 million $425 million $345 million $360 million
Everus still expects gross capital expenditures to be in the range of
Non-GAAP Financial Measures
Throughout this news release, Everus presents financial information prepared in accordance with
Conference Call
Management will discuss Everus' second quarter 2026 results on a webcast at 11:00 a.m. EDT Aug. 5. The webcast and accompanying presentation materials can be accessed at investors.everus.com by selecting “Events & Presentations” and “Everus Q2 Earnings Call.” The webcast also can be directly accessed at https://events.q4inc.com/attendee/396101388. After the conclusion of the webcast, a replay will be available at the same location.
About Everus Construction Group
Everus Construction Group, Inc., a member of the S&P SmallCap 600® index, is Building America's Future® by providing a full spectrum of construction services through its electrical and mechanical, and transmission and distribution specialty contracting services across
Forward-Looking Statements
Information in this news release includes certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this news release, including statements about the company's future performance, financial guidance, long-term targets and statements made by the CEO, are expressed in good faith and are believed by the company to have a reasonable basis. This news release highlights key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company’s segments. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements.” Although the company believes that its expectations are based on reasonable assumptions as of the date they are made, there is no assurance that the company’s projections, including estimates for growth, shareholder value creation and financial guidance, will be achieved. Readers are encouraged to refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A. Risk Factors in the company's most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission.
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake any obligation to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.
Everus Construction Group, Inc. Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
(In thousands, except per share amounts) |
||||||||||
Operating revenues |
$ |
1,231,547 |
|
$ |
921,466 |
|
$ |
2,268,500 |
|
$ |
1,748,095 |
Cost of sales |
|
1,048,624 |
|
|
801,597 |
|
|
1,954,848 |
|
|
1,535,733 |
Gross profit |
|
182,923 |
|
|
119,869 |
|
|
313,652 |
|
|
212,362 |
Selling, general and administrative expenses |
|
71,152 |
|
|
47,362 |
|
|
124,197 |
|
|
88,871 |
Operating income |
|
111,771 |
|
|
72,507 |
|
|
189,455 |
|
|
123,491 |
Interest income |
|
1,327 |
|
|
552 |
|
|
3,651 |
|
|
1,489 |
Interest expense |
|
4,627 |
|
|
5,365 |
|
|
9,247 |
|
|
10,996 |
Other income, net |
|
1,504 |
|
|
1,908 |
|
|
2,056 |
|
|
2,475 |
Income before income taxes and income from equity method investments |
|
109,975 |
|
|
69,602 |
|
|
185,915 |
|
|
116,459 |
Income taxes |
|
29,401 |
|
|
19,408 |
|
|
49,653 |
|
|
32,981 |
Income from equity method investments |
|
3,316 |
|
|
2,649 |
|
|
5,944 |
|
|
6,037 |
Net income |
$ |
83,890 |
|
$ |
52,843 |
|
$ |
142,206 |
|
$ |
89,515 |
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
||||
Basic |
$ |
1.64 |
|
$ |
1.04 |
|
$ |
2.78 |
|
$ |
1.75 |
Diluted |
$ |
1.64 |
|
$ |
1.03 |
|
$ |
2.78 |
|
$ |
1.75 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
51,086 |
|
|
51,041 |
|
|
51,084 |
|
|
51,042 |
Diluted |
|
51,220 |
|
|
51,094 |
|
|
51,205 |
|
|
51,092 |
Everus Construction Group, Inc. Condensed Consolidated Balance Sheets (Unaudited) |
|||||
|
June 30, 2026 |
|
December 31, 2025 |
||
|
(In thousands, except share and per share amounts) |
||||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash, cash equivalents and restricted cash |
$ |
176,670 |
|
$ |
170,500 |
Receivables, net of allowance for credit losses of |
|
919,235 |
|
|
769,828 |
Contract assets |
|
290,157 |
|
|
255,767 |
Inventories, net |
|
55,634 |
|
|
45,271 |
Prepaid expenses |
|
19,587 |
|
|
38,161 |
Other current assets |
|
15,324 |
|
|
16,854 |
Total current assets |
|
1,476,607 |
|
|
1,296,381 |
Noncurrent assets: |
|
|
|
||
Investments |
|
20,408 |
|
|
27,082 |
Property, plant and equipment, net of accumulated depreciation of |
|
186,892 |
|
|
168,498 |
Operating lease right-of-use assets |
|
87,507 |
|
|
88,705 |
Goodwill |
|
212,253 |
|
|
143,224 |
Other intangible assets, net of accumulated amortization of |
|
70,253 |
|
|
— |
Other noncurrent assets |
|
3,751 |
|
|
4,841 |
Total noncurrent assets |
|
581,064 |
|
|
432,350 |
Total assets |
$ |
2,057,671 |
|
$ |
1,728,731 |
Liabilities and Stockholders' Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
15,000 |
|
$ |
15,000 |
Accounts payable |
|
275,976 |
|
|
226,264 |
Contract liabilities, net |
|
418,819 |
|
|
305,111 |
Taxes payable |
|
12,541 |
|
|
6,483 |
Accrued compensation |
|
107,801 |
|
|
86,960 |
Accrued payroll-related liabilities |
|
52,370 |
|
|
47,189 |
Current portion of operating lease liabilities |
|
34,776 |
|
|
33,905 |
Other accrued liabilities |
|
12,943 |
|
|
15,278 |
Total current liabilities |
|
930,226 |
|
|
736,190 |
Noncurrent liabilities: |
|
|
|
||
Long-term debt, net of unamortized issuance costs |
|
259,499 |
|
|
266,549 |
Deferred income taxes |
|
11,828 |
|
|
14,869 |
Operating lease liabilities |
|
54,875 |
|
|
56,634 |
Other noncurrent liabilities |
|
28,042 |
|
|
24,671 |
Total noncurrent liabilities |
|
354,244 |
|
|
362,723 |
Total liabilities |
|
1,284,470 |
|
|
1,098,913 |
Commitments and contingent liabilities |
|
|
|
||
Stockholders' equity: |
|
|
|
||
Preferred stock, 10,000,000 shares authorized, |
|
— |
|
|
— |
Common stock, 300,000,000 shares authorized, |
|
511 |
|
|
510 |
Other paid-in capital |
|
144,742 |
|
|
143,566 |
Retained earnings |
|
627,948 |
|
|
485,742 |
Total stockholders' equity |
|
773,201 |
|
|
629,818 |
Total liabilities and stockholders' equity |
$ |
2,057,671 |
|
$ |
1,728,731 |
Everus Construction Group, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
Six months ended June 30, |
||||||
|
|
2026 |
|
|
|
2025 |
|
|
(In thousands) |
||||||
Operating activities: |
|
|
|
||||
Net income |
$ |
142,206 |
|
|
$ |
89,515 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
16,844 |
|
|
|
13,901 |
|
Amortization of intangible assets |
|
3,247 |
|
|
|
116 |
|
Deferred income taxes |
|
(3,041 |
) |
|
|
2,305 |
|
Provision for credit losses, net of reversals |
|
372 |
|
|
|
(1,729 |
) |
Amortization of debt issuance costs |
|
788 |
|
|
|
788 |
|
Stock-based compensation costs |
|
5,256 |
|
|
|
2,870 |
|
Net unrealized gains on investments |
|
(679 |
) |
|
|
(300 |
) |
Gain on sale of assets |
|
(3,545 |
) |
|
|
(3,682 |
) |
Equity in earnings of unconsolidated affiliates, net of distributions |
|
10,098 |
|
|
|
909 |
|
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
||||
Receivables |
|
(127,888 |
) |
|
|
(91,194 |
) |
Contract assets |
|
(26,865 |
) |
|
|
(77,453 |
) |
Inventories, net |
|
(10,280 |
) |
|
|
(4,302 |
) |
Other current assets |
|
20,133 |
|
|
|
1,577 |
|
Accounts payable |
|
43,789 |
|
|
|
60,547 |
|
Contract liabilities, net |
|
98,897 |
|
|
|
23,050 |
|
Other current liabilities |
|
24,006 |
|
|
|
14,268 |
|
Other noncurrent changes |
|
3,472 |
|
|
|
1,284 |
|
Net cash provided by operating activities |
|
196,810 |
|
|
|
32,470 |
|
Investing activities: |
|
|
|
||||
Capital expenditures3 |
|
(35,600 |
) |
|
|
(31,623 |
) |
Net proceeds from sale or disposition of property, plant and equipment |
|
5,818 |
|
|
|
5,635 |
|
Acquisition, net of cash acquired |
|
(147,642 |
) |
|
|
— |
|
Proceeds from insurance contracts |
|
— |
|
|
|
2,174 |
|
Investments |
|
(2,745 |
) |
|
|
(1,872 |
) |
Net cash used in investing activities |
|
(180,169 |
) |
|
|
(25,686 |
) |
Financing activities: |
|
|
|
||||
Repayments of long-term debt |
|
(7,500 |
) |
|
|
(7,500 |
) |
Tax withholding on stock-based compensation |
|
(2,971 |
) |
|
|
(588 |
) |
Net cash used in financing activities |
|
(10,471 |
) |
|
|
(8,088 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
6,170 |
|
|
|
(1,304 |
) |
Cash, cash equivalents and restricted cash - beginning of period |
|
170,500 |
|
|
|
86,012 |
|
Cash, cash equivalents and restricted cash - end of period |
$ |
176,670 |
|
|
$ |
84,708 |
|
Everus Construction Group, Inc. Segment and Other Financial Information (Unaudited) |
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| Revenues
The following table sets forth segment revenues for the periods indicated, as well as the percentage change from the prior period: |
|||||||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
||
|
(In millions, except percentages) |
||||||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&M |
$ |
1,010.3 |
|
|
$ |
713.6 |
|
|
41.6 |
% |
|
$ |
1,845.4 |
|
|
$ |
1,361.8 |
|
|
35.5 |
% |
T&D |
|
227.5 |
|
|
|
212.4 |
|
|
7.1 |
% |
|
|
431.9 |
|
|
|
397.4 |
|
|
8.7 |
% |
Eliminations |
|
(6.2 |
) |
|
|
(4.5 |
) |
|
37.8 |
% |
|
|
(8.8 |
) |
|
|
(11.1 |
) |
|
(20.7 |
)% |
Total operating revenues |
$ |
1,231.6 |
|
|
$ |
921.5 |
|
|
33.7 |
% |
|
$ |
2,268.5 |
|
|
$ |
1,748.1 |
|
|
29.8 |
% |
Backlog
Backlog is a common measurement in the construction services industry. Everus' determination of backlog can include projects that have a written award, a letter of intent, a notice to proceed, an agreed-upon work order to perform work on mutually accepted terms, and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog also may be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond Everus' control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the following backlog table, Everus did not experience any material impacts related to delays or cancellations of planned projects included in backlog. The timing of contract awards, including contracts awarded pursuant to master service agreements, duration of large new contracts and the mix of services, can significantly affect backlog. Backlog at any given point in time may not accurately represent revenue or net income realized in any period, and backlog as of the end of the year may not be indicative of revenue or net income expected to be realized in the following year. Backlog should not be relied upon as a stand-alone indicator of future results.
The following table provides estimated backlog as of the dates indicated:
|
June 30, 2026 |
|
December 31, 2025 |
|
June 30, 2025 |
|||
|
(In millions) |
|||||||
E&M |
$ |
4,163.2 |
|
$ |
2,843.8 |
|
$ |
2,568.1 |
T&D |
|
388.4 |
|
|
384.5 |
|
|
410.1 |
Total |
$ |
4,551.6 |
|
$ |
3,228.3 |
|
$ |
2,978.2 |
Everus Construction Group, Inc.
Non-GAAP Financial Measures
(Unaudited)
In addition to information prepared in accordance with GAAP, the company evaluates revenue and operating performance using the non-GAAP financial measures of organic revenue, organic revenue growth, EBITDA, EBITDA margin, net debt and net leverage, and, in some cases, applicable measures by segment, and evaluates its liquidity using the non-GAAP financial measure of free cash flow. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as substitutes for an analysis of the company's results as reported under GAAP. Because of these limitations, organic revenue, organic revenue growth, EBITDA, EBITDA margin, net debt, net leverage and free cash flow should not be considered as replacements for revenue, revenue growth, net income, net income margin, total debt, gross leverage and cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ measures of organic revenue, organic revenue growth, EBITDA, EBITDA margin, net debt, net leverage and free cash flow having the same or similar names.
Organic Revenues and Organic Revenue Growth
Everus uses organic revenues and organic revenue growth to measure its revenue performance on a consistent basis compared to prior periods. The company believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of revenues and revenue growth, are useful to investors as they provide a basis for consistently comparing revenues and revenue growth with prior periods and peer companies. Organic revenues are defined as revenues, excluding the impact of acquisitions and divestitures in the past 12 months. Organic revenue growth is calculated by dividing the difference between current-year organic revenues and prior-year organic revenues by prior-year organic revenues.
The following table reconciles revenues to organic revenues and provides organic revenue growth, and by segment.
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
2026 |
|
|
|
2025 |
|
% Change |
|
|
2026 |
|
|
|
2025 |
|
% Change |
||
Consolidated: |
(In millions, except percentages) |
||||||||||||||||||
Total operating revenues |
$ |
1,231.6 |
|
|
$ |
921.5 |
|
33.7 |
% |
|
$ |
2,268.5 |
|
|
$ |
1,748.1 |
|
29.8 |
% |
Acquisitions |
|
(33.4 |
) |
|
|
— |
|
NM |
|
|
|
(33.4 |
) |
|
|
— |
|
NM |
|
Organic revenues |
$ |
1,198.2 |
|
|
$ |
921.5 |
|
30.0 |
% |
|
$ |
2,235.1 |
|
|
$ |
1,748.1 |
|
27.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
E&M: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
E&M segment revenues |
$ |
1,010.3 |
|
|
$ |
713.6 |
|
41.6 |
% |
|
$ |
1,845.4 |
|
|
$ |
1,361.8 |
|
35.5 |
% |
Acquisitions |
|
(33.4 |
) |
|
|
— |
|
NM |
|
|
|
(33.4 |
) |
|
|
— |
|
NM |
|
E&M organic segment revenues |
$ |
976.9 |
|
|
$ |
713.6 |
|
36.9 |
% |
|
$ |
1,812.0 |
|
|
$ |
1,361.8 |
|
33.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
T&D: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
T&D segment revenues |
$ |
227.5 |
|
|
$ |
212.4 |
|
7.1 |
% |
|
$ |
431.9 |
|
|
$ |
397.4 |
|
8.7 |
% |
T&D organic segment revenues |
$ |
227.5 |
|
|
$ |
212.4 |
|
7.1 |
% |
|
$ |
431.9 |
|
|
$ |
397.4 |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
NM - Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
||||||||
EBITDA and EBITDA Margin
Everus utilizes EBITDA and EBITDA margin to consistently assess its operating performance and as a basis for strategic planning and forecasting since the company believes EBITDA closely correlates to long-term enterprise value. Everus believes that measuring performance on an EBITDA basis is useful to investors because it enables a more consistent evaluation of its period-to-period operational performance. Everus also believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of net income and net income margin, are useful to investors and provide meaningful information about operational efficiency by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Investors also may use EBITDA to calculate leverage as a multiple of EBITDA. Management uses EBITDA and EBITDA margin, in addition to GAAP metrics, to evaluate the company's operating results, calculate compensation packages and determine leverage as a multiple of EBITDA to establish the appropriate funding of operations.
EBITDA is calculated by adding back interest expense, net of interest income, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues.
The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin.
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
||
|
(In millions, except percentages) |
||||||||||||||||||||
Net income |
$ |
83.9 |
|
|
$ |
52.8 |
|
|
58.9 |
% |
|
$ |
142.2 |
|
|
$ |
89.5 |
|
|
58.9 |
% |
Interest expense, net |
|
3.3 |
|
|
|
4.8 |
|
|
(31.3 |
)% |
|
|
5.6 |
|
|
|
9.5 |
|
|
(41.1 |
)% |
Income taxes |
|
29.4 |
|
|
|
19.4 |
|
|
51.5 |
% |
|
|
49.7 |
|
|
|
33.0 |
|
|
50.6 |
% |
Depreciation and amortization |
|
12.0 |
|
|
|
7.2 |
|
|
66.7 |
% |
|
|
20.0 |
|
|
|
14.0 |
|
|
42.9 |
% |
EBITDA |
$ |
128.6 |
|
|
$ |
84.2 |
|
|
52.7 |
% |
|
$ |
217.5 |
|
|
$ |
146.0 |
|
|
49.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total operating revenues |
$ |
1,231.6 |
|
|
$ |
921.5 |
|
|
33.7 |
% |
|
$ |
2,268.5 |
|
|
$ |
1,748.1 |
|
|
29.8 |
% |
Net income margin |
|
6.8 |
% |
|
|
5.7 |
% |
|
|
|
|
6.3 |
% |
|
|
5.1 |
% |
|
|
||
EBITDA margin |
|
10.4 |
% |
|
|
9.1 |
% |
|
|
|
|
9.6 |
% |
|
|
8.4 |
% |
|
|
||
The following tables reconcile net income to EBITDA by segment.
|
Three months ended June 30, 2026 |
|
Six months ended June 30, 2026 |
||||||||||||||||||
|
E&M |
T&D |
Corporate and Other |
Total |
|
E&M |
T&D |
Corporate and Other |
Total |
||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income |
$ |
80.6 |
|
$ |
19.1 |
$ |
(15.8 |
) |
$ |
83.9 |
|
$ |
137.3 |
|
$ |
34.1 |
$ |
(29.2 |
) |
$ |
142.2 |
Interest expense, net |
|
(2.4 |
) |
|
0.6 |
|
5.1 |
|
|
3.3 |
|
|
(4.5 |
) |
|
1.2 |
|
8.9 |
|
|
5.6 |
Income taxes |
|
26.0 |
|
|
6.2 |
|
(2.8 |
) |
|
29.4 |
|
|
45.1 |
|
|
11.2 |
|
(6.6 |
) |
|
49.7 |
Depreciation and amortization |
|
5.1 |
|
|
6.9 |
|
— |
|
|
12.0 |
|
|
6.7 |
|
|
13.4 |
|
(0.1 |
) |
|
20.0 |
EBITDA |
$ |
109.3 |
|
$ |
32.8 |
$ |
(13.5 |
) |
$ |
128.6 |
|
$ |
184.6 |
|
$ |
59.9 |
$ |
(27.0 |
) |
$ |
217.5 |
|
Three months ended June 30, 2025 |
|
Six months ended June 30, 2025 |
||||||||||||||||||
|
E&M |
T&D |
Corporate and Other |
Total |
|
E&M |
T&D |
Corporate and Other |
Total |
||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income |
$ |
47.3 |
|
$ |
17.8 |
$ |
(12.3 |
) |
$ |
52.8 |
|
$ |
83.9 |
|
$ |
28.3 |
$ |
(22.7 |
) |
$ |
89.5 |
Interest expense, net |
|
(1.5 |
) |
|
1.0 |
|
5.3 |
|
|
4.8 |
|
|
(3.3 |
) |
|
1.7 |
|
11.1 |
|
|
9.5 |
Income taxes |
|
16.4 |
|
|
5.9 |
|
(2.9 |
) |
|
19.4 |
|
|
29.7 |
|
|
9.3 |
|
(6.0 |
) |
|
33.0 |
Depreciation and amortization |
|
1.5 |
|
|
5.7 |
|
— |
|
|
7.2 |
|
|
2.9 |
|
|
11.2 |
|
(0.1 |
) |
|
14.0 |
EBITDA |
$ |
63.7 |
|
$ |
30.4 |
$ |
(9.9 |
) |
$ |
84.2 |
|
$ |
113.2 |
|
$ |
50.5 |
$ |
(17.7 |
) |
$ |
146.0 |
The following table provides EBITDA and the calculation of EBITDA margin by segment.
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
||
|
|
(In millions, except percentages) |
||||||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&M |
|
$ |
1,010.3 |
|
|
$ |
713.6 |
|
|
41.6 |
% |
|
$ |
1,845.4 |
|
|
$ |
1,361.8 |
|
|
35.5 |
% |
T&D |
|
|
227.5 |
|
|
|
212.4 |
|
|
7.1 |
% |
|
|
431.9 |
|
|
|
397.4 |
|
|
8.7 |
% |
Eliminations |
|
|
(6.2 |
) |
|
|
(4.5 |
) |
|
37.8 |
% |
|
|
(8.8 |
) |
|
|
(11.1 |
) |
|
(20.7 |
)% |
Total operating revenues |
|
$ |
1,231.6 |
|
|
$ |
921.5 |
|
|
33.7 |
% |
|
$ |
2,268.5 |
|
|
$ |
1,748.1 |
|
|
29.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&M |
|
$ |
80.6 |
|
|
$ |
47.3 |
|
|
70.4 |
% |
|
$ |
137.3 |
|
|
$ |
83.9 |
|
|
63.6 |
% |
T&D |
|
|
19.1 |
|
|
|
17.8 |
|
|
7.3 |
% |
|
|
34.1 |
|
|
|
28.3 |
|
|
20.5 |
% |
Corporate and Other |
|
|
(15.8 |
) |
|
|
(12.3 |
) |
|
(28.5 |
)% |
|
|
(29.2 |
) |
|
|
(22.7 |
) |
|
(28.6 |
)% |
Total net income |
|
$ |
83.9 |
|
|
$ |
52.8 |
|
|
58.9 |
% |
|
$ |
142.2 |
|
|
$ |
89.5 |
|
|
58.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&M |
|
$ |
109.3 |
|
|
$ |
63.7 |
|
|
71.6 |
% |
|
$ |
184.6 |
|
|
$ |
113.2 |
|
|
63.1 |
% |
T&D |
|
|
32.8 |
|
|
|
30.4 |
|
|
7.9 |
% |
|
|
59.9 |
|
|
|
50.5 |
|
|
18.6 |
% |
Corporate and Other |
|
|
(13.5 |
) |
|
|
(9.9 |
) |
|
(36.4 |
)% |
|
|
(27.0 |
) |
|
|
(17.7 |
) |
|
(52.5 |
)% |
Total EBITDA |
|
$ |
128.6 |
|
|
$ |
84.2 |
|
|
52.7 |
% |
|
$ |
217.5 |
|
|
$ |
146.0 |
|
|
49.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&M |
|
|
8.0 |
% |
|
|
6.6 |
% |
|
|
|
|
7.4 |
% |
|
|
6.2 |
% |
|
|
||
T&D |
|
|
8.4 |
% |
|
|
8.4 |
% |
|
|
|
|
7.9 |
% |
|
|
7.1 |
% |
|
|
||
Total net income margin |
|
|
6.8 |
% |
|
|
5.7 |
% |
|
|
|
|
6.3 |
% |
|
|
5.1 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&M |
|
|
10.8 |
% |
|
|
8.9 |
% |
|
|
|
|
10.0 |
% |
|
|
8.3 |
% |
|
|
||
T&D |
|
|
14.4 |
% |
|
|
14.3 |
% |
|
|
|
|
13.9 |
% |
|
|
12.7 |
% |
|
|
||
Total EBITDA margin |
|
|
10.4 |
% |
|
|
9.1 |
% |
|
|
|
|
9.6 |
% |
|
|
8.4 |
% |
|
|
||
Net Debt and Net Leverage
Everus uses net debt and net leverage as a measure of assessing its borrowing capacity and achieving its optimal capital structure. The company believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of total debt and gross leverage, are useful to investors because they provide insight into how long it would take the company to pay back its debt if net debt and EBITDA were constant.
Net debt is calculated by adding unamortized debt issuance costs to the total debt balance on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing 12-month EBITDA.
The following table provides the reconciliations of trailing 12-month EBITDA as of June 30, 2026, and Dec. 31, 2025.
|
Twelve months ended June 30, 2026 |
|
Six months ended June 30, 2026 |
|
Twelve months ended December 31, 2025 |
|
Six months ended June 30, 2025 |
||||
|
(In millions) |
||||||||||
Net income |
$ |
254.5 |
|
$ |
142.2 |
|
$ |
201.8 |
|
$ |
89.5 |
Interest expense, net |
|
13.0 |
|
|
5.6 |
|
|
16.9 |
|
|
9.5 |
Income taxes |
|
89.0 |
|
|
49.7 |
|
|
72.3 |
|
|
33.0 |
Depreciation and amortization |
|
34.8 |
|
|
20.0 |
|
|
28.8 |
|
|
14.0 |
EBITDA |
$ |
391.3 |
|
$ |
217.5 |
|
$ |
319.8 |
|
$ |
146.0 |
The following table provides the reconciliations of net leverage as of June 30, 2026, and Dec. 31, 2025.
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
(In millions, except net leverage) |
||||||
Current portion of long-term debt |
$ |
15.0 |
|
|
$ |
15.0 |
|
Long-term debt |
|
259.5 |
|
|
|
266.5 |
|
Total debt |
|
274.5 |
|
|
|
281.5 |
|
Add: Unamortized debt issuance costs |
|
3.0 |
|
|
|
3.5 |
|
Total gross debt |
|
277.5 |
|
|
|
285.0 |
|
Less: cash and cash equivalents, excluding restricted cash |
|
(157.4 |
) |
|
|
(152.7 |
) |
Total net debt |
$ |
120.1 |
|
|
$ |
132.3 |
|
Trailing 12-month EBITDA for the periods indicated |
$ |
391.3 |
|
|
$ |
319.8 |
|
Net leverage |
0.3x |
|
0.4x |
||||
Free Cash Flow
Everus uses free cash flow as a measure of liquidity that indicates how much cash the company can produce after taking cash outflows from operations and assets into consideration. The company believes this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about the company’s financial health and ability to generate cash, support additional debt obligations, pay potential future dividends and fund growth. Free cash flow does not represent residual cash flow available for discretionary purposes.
Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures.
The following table provides reconciliations of cash provided by operating activities to free cash flow.
|
Six months ended June 30, |
||||||
|
|
2026 |
|
|
|
2025 |
|
|
(In millions) |
||||||
Net cash used in investing activities |
$ |
(180.1 |
) |
|
$ |
(25.7 |
) |
Net cash used in financing activities |
$ |
(10.5 |
) |
|
$ |
(8.1 |
) |
|
|
|
|
||||
Net cash provided by operating activities |
$ |
196.8 |
|
|
$ |
32.5 |
|
Capital expenditures |
|
(35.6 |
) |
|
|
(31.6 |
) |
Net proceeds from sale or disposition of property, plant and equipment |
|
5.8 |
|
|
|
5.6 |
|
Free cash flow |
$ |
167.0 |
|
|
$ |
6.5 |
|
Non-GAAP Financial Guidance
Everus has completed its preliminary purchase price allocation for the SE&M acquisition, but these amounts are dependent upon, among other things, finalizing the fair values of acquired tangible and intangible assets, which are inherently uncertain and subject to material change as Everus completes its valuation work during the measurement period. Everus is still gathering the necessary information for these disclosures and, as a result, is unable to estimate these amounts with a reasonable degree of accuracy at this time. Therefore, Everus is unable to provide a reconciliation of its forward-looking non-GAAP financial guidance relating to full-year 2026 EBITDA without unreasonable efforts.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260804019972/en/
Media Contact
Laura Lueder, director of communications, 701-221-6444
Investor Contact
Paul Bartolai, Vallum Advisors, Paul.Bartolai@everus.com
Source: Everus