Everus Raises 2026 Outlook as Q3 Backlog Reaches $5.5 Billion

Everus raised its 2026 revenue and EBITDA guidance after third-quarter earnings benefited from strong demand in its Electrical & Mechanical segment, acquisition contributions and improved project execution. The construction services provider also reported a record $5.5 billion backlog, up 86% from a year earlier, providing support for its higher full-year outlook.

The company now expects 2026 revenue of $5.0 billion to $5.1 billion, compared with its previous range of $4.5 billion to $4.7 billion. It forecast EBITDA of $485 million to $495 million, up from $410 million to $425 million previously. Management said the outlook reflects backlog growth, continued business momentum and the Epsilon acquisition, with a full-year EBITDA margin of about 10%.

Third-quarter revenue rose 40.3% to $1.38 billion from $986.8 million a year earlier. Organic revenue, which excludes acquisitions and divestitures completed during the previous 12 months, increased about 36%.

Net income climbed 61.2% to $91.9 million, while net income margin expanded to 6.6% from 5.8%. EBITDA, a non-GAAP measure, increased 57.5% to $140.2 million. EBITDA margin reached 10.1%, up 110 basis points, as revenue growth and project execution more than offset higher corporate and other costs.

For the first nine months of 2026, Everus generated $3.65 billion in revenue, up 33.6% year over year. Net income increased 59.8% to $234.1 million, and EBITDA rose 52.2% to $357.7 million.

Electrical & Mechanical leads growth

The Electrical & Mechanical, or E&M, segment remained the primary growth driver. Quarterly segment revenue increased 48% to $1.14 billion, including organic growth of 42.3%. Everus attributed the performance to strength in commercial and industrial markets, particularly data centers, high tech and hospitality, as well as acquisition contributions.

E&M EBITDA rose 79.1% to $119.8 million, while its EBITDA margin expanded to 10.5% from 8.7%. The company cited revenue growth and execution benefits for the improvement.

Everus said data-center demand remained very strong, while the business was ramping up a large high-tech award in a geography entered last year. The company also secured several new hospitality projects and remained encouraged by the Las Vegas market outlook.

The Transmission & Distribution, or T&D, segment recorded a 14.4% increase in quarterly revenue to $255.6 million, driven by utility work across most submarkets. Segment EBITDA rose 13.3% to $38.3 million, although its EBITDA margin was broadly stable at 15%, compared with 15.1% a year earlier. Management identified transmission and distribution demand, including grid modernization and hardening, as drivers of utility activity.

Backlog reached $5.5 billion at Sept. 30, rising from $2.9 billion a year earlier and $4.6 billion at the end of the second quarter. E&M backlog increased 99%, including the addition of Epsilon.

Cash flow and capital position

Free cash flow for the first nine months of 2026 increased to $221.2 million from $74.8 million in the prior-year period. Everus attributed the change to stronger operating results and the timing of working capital. Operating cash flow totaled $267.3 million, compared with $108.6 million a year earlier.

Net debt rose to $326.7 million at Sept. 30 from $120 million at the end of the second quarter as the company funded the Epsilon acquisition. Net leverage stood at 0.7 times trailing 12-month EBITDA, below Everus’ long-term target range of 1.5 to 2.0 times. Unrestricted cash and cash equivalents and available revolver capacity totaled $493 million.

Everus’ longer-term expectations remain organic revenue compound annual growth of 5% to 7% and EBITDA compound annual growth of 7% to 9%. The company also targets capital spending equal to 2% to 2.5% of revenue. Its capital allocation priorities include high-return organic investments, strategic acquisitions, maintaining an investment-grade capital structure and the potential for future shareholder returns.

The company cautioned that its outlook is subject to uncertainty from competition, fixed-price contract exposure, customer concentration, labor and commodity costs, supply-chain disruptions, tariffs, project estimates and the potential for backlog not to convert into revenue as anticipated. Other identified risks include integrating acquisitions, retaining skilled labor, cybersecurity, leverage and the costs and operational effects associated with its separation from MDU Resources.

Everus did not provide a GAAP reconciliation for its forward-looking 2026 EBITDA guidance, citing uncertainty around final purchase-price allocations for the SE&M and Epsilon acquisitions and the difficulty of forecasting non-GAAP adjustments.