ECG

Everus Construction Group (ECG) stock fell 15.5% over three months due to profit-taking and valuation concerns, despite strong underlying fundamentals. The company achieved a record $4.55B backlog (up 53% YoY) driven by data center demand and acquisitions, and raised 2026 guidance. However, margin pressures, data center concentration risks, and premium valuation warrant caution, with analysts maintaining a Hold rating.

Everus Construction Group's Transmission & Distribution segment showed modest growth in Q2 2026 with revenues up 7.1% to $227.5 million and EBITDA margin improving to 14.4%. However, backlog growth remains limited at 1% sequentially and declined year-over-year, suggesting slower order momentum. The company faces competition from larger players like Quanta Services and MasTec, which are experiencing stronger utility infrastructure demand with significantly higher backlog growth.

Everus Construction Group (ECG) acquired Epsilon Industries for $295 million to strengthen its modular construction and Electrical & Mechanical (E&M) business. Epsilon brings 25+ years of off-site construction expertise and adds $250 million in projected 2026 revenues.

ECG's E&M backlog surged 62.1% to $4.16 billion, with data centers as the largest component. The company maintains strong financial flexibility with 0.3x net leverage and $380 million in cash.