Everus Construction Group
A Bismarck-based contractor whose union electricians and pipefitters wire data centers, casinos and factories, and build power lines for utilities.
The scores
Growth3/4 ↑
31.5% in 2025 and 30% organic in Q2 2026, but after two flat years, narrowing to data centers and partly bought this year.
Business quality3/4 →
Union crews in demand regions win repeat hyperscale work, but rivals chase the same scarce labour and it earns less per dollar than they do.
Financial position3/4 →
Real debt since Epsilon, near 1 times EBITDA, but covered by $167.0M of half-year free cash flow, an undrawn $350M revolver, nothing due before 2029.
Execution record3/4 ↑
Raised the 2026 guide twice and beat estimates seven quarters of eight, but under two years as a listed company caps it.
Per share capture4/4 →
Share count flat since the spin-off, stock pay about 0.2% of revenue, and both acquisitions paid in cash and debt.
Potential2/4 →
A large, fast-growing market, but backlog runs about a year and further growth rests on hyperscalers' spending decisions nobody has signed.
Risk profile3/4 ↓
One customer at 16.5% of revenue and data centers the largest part of backlog: one serious concentration, disclosed and survivable.
Valuation4/4 ↑
About 12 times guided EBITDA and 18 times earnings: the raised plan is paid for and a normal margin is priced at 12.6 times.
Evidence quality3/4 →
Results, backlog and concentration are filed and the market is measured by Census; who the customers are and the normal margin are management's word.
The Verdict
We rate Everus Attractive. It is a solid business: union crews that hyperscale data center builders keep hiring, revenue up by about a third, a record amount of signed work and little debt. After a 45% fall from May with no company news, the price pays for this year's plan and still leaves a return to the normal margin priced in. The catch is that the profit margin is well above what management calls normal and the work is for a few unnamed customers. A price back near 15 times profit, or a fading margin, would change our view.
The long caseHyperscalers keep building faster than electricians can be trained, and owners keep handing Everus the next site where its crews delivered the last one.
The evidence under this - 6 claims
Q2 2026 ran at 10.4% and the first half at 9.6% (C03, C04), so the business is running well above the margin management calls normal.
The four filed competitors trade at a median of 20.7 times trailing EBITDA against Everus's 18.7 on the vendor's basis (S15).
- 2026-10-22editedre-struck at the 21 October close, 16.0% below the 5 October close the multiples were struck at
- 2026-10-26editedre-struck at the 23 October close, 10.5% below the 21 October close the multiples were struck at
MYR Group, the peer built most like Everus, earns less than it, so the gap is partly the mix of work rather than the quality of it (S15).
The company
Everus was split off from the utility MDU Resources in October 2024. Fifteen local companies under 19 brands send union electricians and pipefitters to install the wiring, fire sprinklers and piping inside buildings, and a second business builds and maintains power lines for utilities.
Its buyers are building owners and the general contractors they hire. In September it bought Epsilon, which assembles electrical and mechanical modules in factories so less work happens on site.
The evidence under this - 3 claims
How it makes money
Everus is paid as each job progresses. Commercial buildings, largely data centers and casinos, brought in 61.2% of revenue in Q2 2026, utilities 16.6% and factories 12.0%.
About half its contracts are a fixed price, so Everus carries any overrun; most of the rest pay its costs plus a fee. Most jobs last under a year, so revenue keeps coming only while new jobs are won.
The evidence under this - 3 claims
Where the money comes from, stream by stream
| Stream | Share of sales (Q2 2026) | How it earns it |
|---|---|---|
| Commercial | 61.2% | Electrical and mechanical work on data centers, hotels and casinos, and other commercial buildings. |
| Utility | 16.6% | Building and maintaining overhead and underground power lines for utilities. |
| Industrial | 12.0% | High-tech and manufacturing plants, including the semiconductor project. |
| Institutional | 5.9% | Schools, government buildings and hospitals. |
| Service, transportation and renewables | 4.8% | Small repair jobs, road and transit electrical work, and solar and charging installations. |
Who runs it
Jeffrey Thiede, who spent his career inside the business, has been chief executive since the split from MDU. Directors and officers together own under 1% of the shares; two index fund managers hold about 23%.
The yearly bonus pays on adjusted profit and safety and paid twice its target for 2025. Most long-term pay is shares earned half on profit and half on returns against rival companies.
The evidence under this - 1 claim
Why it wins, and who could beat it
Why customers come back
What Everus has is people. Electricians train for years through apprenticeships and need a state licence; the government counts 821,000 of them nationally. About 85% of Everus's workers are union members, and an owner who saw a crew deliver one site tends to hand it the next.
That wins the right to bid, not the price. Rivals say most of their own work is won on bids, and Everus keeps less of each sales dollar than they do.
The evidence under this - 5 claims
EMCOR's 10-K says most of its revenue comes from competitively bid projects, so crews win the right to bid but not the price (S14).
MYR Group, the peer built most like Everus, earns less than it, so the gap is partly the mix of work rather than the quality of it (S15).
The threat
Larger contractors want the same work. Comfort Systems billed $1.9B to technology customers in one quarter, EMCOR names Everus as a rival, and big private electrical firms such as Rosendin compete for data center campuses. Every one of them hires from the same short supply of electricians.
The evidence under this - 3 claims
The rivals: FIX, EME, PWR, MYRG, IESC, and 1 more that is private, in-house or listed abroad.
Who else does this, rival by rival
| Ticker | Rival | Where it competes | How far along | Priced against it |
|---|---|---|---|---|
| FIX | Comfort Systems USAPriced against it: Yes | Electrical & Mechanical | On sale | Yes |
| EME | EMCOR GroupPriced against it: Yes | Electrical & Mechanical | On sale | Yes |
| Private | Rosendin Electric and M.C. DeanPriced against it: Private | Electrical & Mechanical | On sale | Private |
| PWR · MYRG | Quanta Services and MYR GroupPriced against it: Yes | Transmission & Distribution | On sale | Yes |
| IESC | IES HoldingsPriced against it: Yes | - | On sale | Yes |
How big it could get
How big this could get
US data center construction ran at $84.95B a year in August 2026, up 73.2% in a year, by the Census Bureau's count. Other building is shrinking: hotels, factories and offices outside data centers spent less.
Nobody publishes how much of a data center's cost is the electrical and piping work, so Everus's slice of that market cannot be measured.
The evidence under this - 2 claims
The series is preliminary for the latest month and counts the whole building, not the electrical scope (S10).
Who has signed
Everus holds $3.95B of signed work it expects to turn into revenue, most of it within a year. The customers behind it are not named; management says several hyperscale data center owners lead it, and one customer alone was 16.5% of 2025 revenue.
The evidence under this - 3 claims
None of the hyperscale customers is named and the 10-Q gives no backlog by end market, so the split cannot be checked (S02).
The results
The numbers
Sales grew 31% over the twelve months to Jun 2026, about the same pace as the 31% in the year to Dec 2025.
Operating margin is 7.8%, about where it was (6.7%) in the year to Dec 2023.
Running costs take 5¢ of each sales dollar, up from 4¢ in the year to Dec 2022.
Each dollar put into the business earns 26% a year after tax, down from 32% in the year to Dec 2022.
It turned 5.9% of sales into free cash, $250M over the last twelve months.
Yearly sales growth has ranged from −0.2% to +31% over the last 3 years, with sales falling in 1 of them.
The share count barely moved in 3.5 years, and pay in shares costs 0.2% of sales.
All the numbers
Filed figures from the company's 10-K and 10-Q, read 2026-10-06. Fiscal years end in December.
| Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | 12 mo to Jun 2026 | |
|---|---|---|---|---|---|
| Size and growth | |||||
| Sales | $2.70B | $2.85B | $2.85B | $3.75B | $4.27B |
| Sales growth | - | +5.7% | −0.2% | +31% | +31% |
| Profit | |||||
| Gross margin | 10% | 11% | 12% | 12% | 13% |
| Operating margin | 6.1% | 6.7% | 6.7% | 7.1% | 7.8% |
| Net margin | 4.6% | 4.8% | 5.0% | 5.4% | 6.0% |
| What growth costs, per sales dollar | |||||
| Selling, general and admin | 4.1% | 4.6% | 5.2% | 5.1% | 5.3% |
| Pay in shares | 0.0% | 0.0% | 0.1% | 0.2% | 0.2% |
| Capital spending | 1.3% | 1.2% | 1.7% | 1.8% | 1.7% |
| Cash | |||||
| Cash from operations | −$25.5M | $171M | $163M | $157M | $321M |
| Free cash flow | −$61.3M | $136M | $115M | $90.0M | $250M |
| Balance sheet | |||||
| Cash and short-term investments | - | $1.57M | - | - | - |
| Debt | - | $169M | $296M | $282M | $274M |
| Net cash | - | −$167M | - | - | - |
| Returns and shares | |||||
| Return on capital | 32% | 28% | 21% | 23% | 26% |
| Shares (diluted) | 51.0M | 51.0M | 51.1M | 51.1M | 51.2M |
What growth costs
Growth has made Everus more profitable. Revenue grew about a third, and overheads spread over more work while margins on jobs rose, so the operating margin went from 6.7% in 2024 to about 7.8% over the last twelve months. Management calls part of the gain project timing.
The evidence under this - 3 claims
The release puts the E&M margin gain partly down to project timing, so one quarter's margin is not a run rate (S03).
The last report (4 Aug)
Quarter ended June 2026, filed figures.
Q2 2026 was a record. Revenue grew 33.7%, or 30.0% without the SE&M purchase, and the building business grew 41.6% with its margin up to 10.8% from 8.9%. Backlog reached $4.55B, up 52.8% in a year.
Management raised the 2026 guide for the second time, to revenue of $4.5B to $4.7B. Its own figures imply the second half earns about 8.6%, well below this quarter's 10.4%, and it credits part of the gain to the timing of projects.
What it did to the thesisIt proved the growth and the signed work behind it, and showed the margin can run well above normal for now. It left open whether that margin lasts: management's own guide expects the second half to fall back.
The quarter in detail
Sales growth from the previous quarter, filed figures.
Earnings per share $1.64 against $1.14 expected; $1.64 as filed, with no adjustments.
The evidence under this - 4 claims
The release puts the E&M margin gain partly down to project timing, so one quarter's margin is not a run rate (S03).
Everus has beaten consensus earnings in seven of its last eight quarters by 44% to 79% in the last four, so its guides have run low (S15).
What management did with the money
It buys contractors rather than shares. SE&M cost about $162M in April and Epsilon $295M in September, paid in cash and a larger loan, so the share count has stayed flat. Epsilon cost about 11 times its profit, while the market pays about 13 for Everus.
Insiders in 2026Q3: 3 purchases and 1 sales, from their Form 4 filings.
The evidence under this - 3 claims
The price, and where we disagree
In short. Cheap. After the fall the price pays for this year's raised plan and still leaves the normal margin priced in.
The shares are 45% below their May high even though the guide was raised twice, and fell another 25% between 5 and 23 October with no results, filing or company news. The price buyers pay for each dollar of profit has fallen with them.
Third-quarter results on 3 November will show whether the margin holds above the guide's implied 8.6%, and the first guide to include Epsilon. Data center construction is still rising each month.
The evidence under this - 4 claims
- 2026-10-22editedre-struck at the 21 October close after a 16.0% fall; the year's return and its split need a new pack and were dropped
- 2026-10-26editedre-struck at the 23 October close after a further 10.5% fall from 21 October ($106.00); no news
Everus has beaten consensus earnings in seven of its last eight quarters by 44% to 79% in the last four, so its guides have run low (S15).
The series is preliminary for the latest month and counts the whole building, not the electrical scope (S10).
How we read the multiple
1. Management guides about $418M of profit before interest, tax and depreciation for 2026; Epsilon adds about $28M a year. 2. With Epsilon's debt, the company is valued at about $5.26B, about 12 times that profit. 3. Analysts forecast earnings of $5.30 a share for 2026, so the shares cost about 18 times. 4. At the 8% margin management calls normal, on 2027's forecast sales, the value is about 13 times that profit.
Little is left for the margin to give back before the price looks full.
Against its own history. Buyers still pay more for each dollar of profit than before the data center boom, but the premium has narrowed a good deal.
The evidence under this - 4 claims
The four filed competitors trade at a median of 20.7 times trailing EBITDA against Everus's 18.7 on the vendor's basis (S15).
- 2026-10-22editedre-struck at the 21 October close, 16.0% below the 5 October close the multiples were struck at
- 2026-10-26editedre-struck at the 23 October close, 10.5% below the 21 October close the multiples were struck at
Q2 2026 ran at 10.4% and the first half at 9.6% (C03, C04), so the business is running well above the margin management calls normal.
Everus has beaten consensus earnings in seven of its last eight quarters by 44% to 79% in the last four, so its guides have run low (S15).
MYR Group, the peer built most like Everus, earns less than it, so the gap is partly the mix of work rather than the quality of it (S15).
Priced against its rivals
The competitors its own annual report names, each confirmed against the rival's filing. Measured on company value for each $1 of cash profit, cheapest first:
| Ticker | Company | company value for each $1 of cash profit |
|---|---|---|
| MYRG | MYR Group | 15.9× |
| EME | EMCOR Group | 16.3× |
| ECG | Everus Construction Group | 18.7× |
| IESC | IES Holdings | 25.1× |
| FIX | Comfort Systems USA | 29.8× |
| PWR | Quanta Services not in the median | 36.3× |
The middle of the other 4 is 20.7. Quanta Services, Inc. competes with it in one product line inside a much bigger company, so its price says little about this business and it is not counted in the middle. Everus Construction Group, Inc. is 3rd cheapest of 5.
Rivals' figures come from a data provider, so read the spread of the group rather than any single pair.
Cheaper than its filed rivals, but it keeps less of each sales dollar than most of them, so the gap is largely the business.
Also checked and set aside: MasTec (a substitute, not the same product); Primoris Services (a substitute, not the same product); Sterling Infrastructure (a substitute, not the same product).
Where we disagree with the market
A data center winner analysts have warmed to all year, though the shares sit well below their May high.
The growth is real and this year's margin is above normal, but at the lower price the boom lasting is no longer fully paid for.
The market reads Everus as cheap against its rivals. We read the discount as mostly deserved, because it keeps less of each dollar than they do, and the margin it is earning now is one management does not expect to keep.
Against us: Everus has beaten analysts' earnings forecasts in seven of eight quarters, by wide margins, so its guides may simply be cautious.
What analysts say, and the evidence
The evidence under this - 5 claims
- 2026-10-22editedre-struck at the 21 October close after a 16.0% fall; the year's return and its split need a new pack and were dropped
- 2026-10-26editedre-struck at the 23 October close after a further 10.5% fall from 21 October ($106.00); no news
MYR Group, the peer built most like Everus, earns less than it, so the gap is partly the mix of work rather than the quality of it (S15).
Q2 2026 ran at 10.4% and the first half at 9.6% (C03, C04), so the business is running well above the margin management calls normal.
The four filed competitors trade at a median of 20.7 times trailing EBITDA against Everus's 18.7 on the vendor's basis (S15).
- 2026-10-22editedre-struck at the 21 October close, 16.0% below the 5 October close the multiples were struck at
- 2026-10-26editedre-struck at the 23 October close, 10.5% below the 21 October close the multiples were struck at
What could go wrong, and how we would know
The risks
- A few big customers One customer was 16.5% of 2025 revenue and data centers fill most of the backlog; a pause by one hyperscaler would show quickly.
- Margin falls back Management calls a mid-7% margin normal against 10.4% in Q2 2026, and its own guide expects the second half lower.
- The boom slows Data center building rose 73.2% in a year while other construction fell; Everus's revenue was flat before this boom.
- Fixed-price jobs About half its contracts are a fixed price, so a job that runs over budget comes out of Everus's profit.
- Union contracts About 85% of workers are union members, and a fifth of the agreements expire within a year.
The evidence under this - 6 claims
None of the hyperscale customers is named and the 10-Q gives no backlog by end market, so the split cannot be checked (S02).
Q2 2026 ran at 10.4% and the first half at 9.6% (C03, C04), so the business is running well above the margin management calls normal.
The series is preliminary for the latest month and counts the whole building, not the electrical scope (S10).
What we still do not know
- Who the hyperscale customers are, and how much of the backlog each holds.
- What share of a data center's cost is the electrical and piping work Everus does.
- What margin Epsilon adds, and how much of its work is for data centers.
The evidence under this - 3 claims
None of the hyperscale customers is named and the 10-Q gives no backlog by end market, so the split cannot be checked (S02).
What would change our view
- Attractive→NeutralThe price again pays for the peak margin
It needs:
- ○The company is valued at 15 times this year's guided profit including Epsilon, from about 12 today.about ≈$120.65 today, -4% above the last close
- Attractive→NeutralThe margin or the backlog fades
It needs any of:
- ○The third-quarter margin is below 9% with the full-year guide held.checked at the next results, due by 3 Nov
- ○The building business's backlog of signed work is below June's $4.55B at the September quarter end.checked at the next results, due by 3 Nov
- Attractive→UnattractiveThe data center work turns down
It needs:
- ○The building business's backlog of signed work falls below $3.5B at any quarter end.checked at the next results, due by 3 Nov
We would also be wrong if
- Backlog falls two quarters in a row while data center building keeps rising.
- The building business's margin falls below 8% in any quarter of 2027.
- A project loss or cancellation from the largest customer is disclosed.
What is coming
- 3 November 2026 Q3 2026 results: Whether the margin holds above the guide's implied 8.6%, backlog growth, and the guide updated for Epsilon.
Every dated event ahead
- 3 November 2026 Q3 2026 results: Whether the margin holds above the guide's implied 8.6%, backlog growth, and the guide updated for Epsilon.
- 28 February 2027 Q4 2026 results and the 2027 guide: The 2027 margin assumption against the mid-7% core, and the 2026 customer concentration in the 10-K.
Since we wrote this
- 26 OctPrice movePrice fell to 11.8 times guided profit; view now AttractiveThe cheaper-price route fired on a 25% fall since 5 October with no news. The business facts are unchanged; the 3 November results test the margin.
- 22 OctPrice movePrice re-struck: 13 times guided profit, view heldThe shares fell 16% with no news; the multiple is now 13.1 times, the margin question waits for 3 November.
- 6 OctThesis writtenNeutral, medium convictionWritten a month before Q3 results, with the shares a quarter below their May high after two raised guides.
Also checked 10 times with nothing new to act on.
Sources 19
Sources - 19
Every claim above cites one of these, or states the reasoning that derived it. The quote is frozen at the date it was read: a link can rot, and an agent fetch returns a reading of a page rather than the page. Backs counts the whole claim ledger, so it can name a claim this page does not surface.
- S01primarycompany filing2026-02-25the business, segments, operating companies, competitors, customer concentration, contract types, union workforce, risk factors, headcount and the 2022-2025 statementsbacksC01C02C06C11C13C19C23C24C31
- S02primarycompany filing2026-08-05Q2 2026 statements, revenue by customer and contract type, remaining performance obligations, debt, the SE&M acquisition, cash flow and share countbacksC01C03C05C08C17C18C19C20C24
- S03primarycompany release2026-08-04Q2 revenue, organic growth, segment EBITDA, backlog, bookings, free cash flow, net leverage and the raised 2026 guidebacksC03C04C05C17C19
- S04primarycompany release2026-02-242025 EBITDA and margins, year-end backlog and the first 2026 guidebacksC02
- S05primarytranscript2026-08-05Everus Q2 2026 earnings call transcript (FMP), held 5 August 2026where backlog sits, the hyperscale customers, cancellations, backlog burn, the margin goal, the semiconductor project, Las Vegas and leverage targets
Our data center work tends to be focused on several hyperscale customers.
backsC07C30 - S06primarytranscript2026-02-25Everus Q4 2025 earnings call transcript (FMP), held 25 February 2026the first 2026 guide, the long-term growth target, the core margin, capital spending plans and no return of capital
higher than our historical core margin in the mid-7% range
backsC04C20C22 - S07primarycompany release2026-07-31price, funding, Epsilon's 2026 revenue and margin, plants, engineers and tradesbacksC16
- S08primarycompany filing2026-09-02closing on 1 September 2026backsC16
- S09primarycompany filing2026-09-08the $477.5M term loan, the $350M revolver and the lower spreadbacksC18
- S10primarygovernment data2026-10-01U.S. Census Bureau, Value of Private Construction Put in Place - Seasonally Adjusted Annual Rate, August 2026 U.S. Census Bureauthe data center line of private construction and the nonresidential, lodging and manufacturing lines beside it
Value of Private Construction Put in Place - Seasonally Adjusted Annual Rate ... Nonresidential | Aug 2026p 773010 | Aug 2025 780447 | -1.0 ... Lodging | 23328 | 25954 | -10.1 ... Manufacturing | 168209 | 209798 | -19.8 ... Data center | 84950 | 79007 | 72695 | 65688 | 61859 | 49052 | 7.5 | 73.2
backsC09 - S11primarygovernment data2026-09-09U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Electricians U.S. Bureau of Labor Statisticsthe US electrician workforce, its projected growth and openings, and the licensing and apprenticeship route
Quick Facts: Electricians ... Number of Jobs, 2025 821,000 ... Job Outlook, 2025-35 9% (Much faster than average) ... About 72,700 openings for electricians are projected each year, on average, over the decade. ... Most electricians learn through an apprenticeship, but some start out by attending a technical school. Most states require electricians to be licensed.
backsC10 - S12primarycompany filing2026-03-27the leaders, ownership by insiders and large holders, and the bonus and long-term award designbacksC21
- S13primarycompany filing2026-07-23Comfort Systems' technology revenue and its share of the total
Revenue by Type of Customer | 2026 | 2025 | Technology | $ 1,917,354 | 58.7 % | $ 934,199 | 43.0 %
backsC15 - S14primarycompany filing2026-02-26EMCOR's list of competitors naming Everus, and how its own work is won
there are a number of larger companies focused on providing electrical and/or mechanical construction services, such as APi Group Corporation, Comfort Systems USA, Inc., Dycom Industries, Inc., Everus Construction Group, Inc., IES Holdings, Inc., MasTec, Inc., MYR Group Inc., Quanta Services, Inc., and Tutor Perini Corporation. A majority of our revenues are derived from projects requiring competi
backsC14 - S15secondaryvendor data2026-10-06Research pack (FMP market tier, filed cohort and FINRA short interest), fetched 6 October 2026content/ECG/research-pack.jsonprice, market value, the 52-week range, the return and its split, analyst estimates and ratings, earnings surprises, short interest, the competitor cohort's multiples and margins, and headcountbacksC25C26C27C31
- S16primarycompany filing2026-08-18a director's open-market purchasebacksC28
- S17primarycompany filing2026-08-11the chief legal officer's sale and its absent plan flagbacksC28
- S18secondaryvendor data2026-10-21the 21 October 2026 close of $106.00backsC25C26
- S99secondaryvendor data2026-10-23Daily closes to 23 October 2026 (FMP end-of-day prices)the 23 October 2026 close of $94.91backsC25C26