Everus's growth accelerates. Why did quarterly cash flow fall?
Everus raises its outlook as organic growth accelerates. Our matched-quarter comparison traces why operating cash flow falls while profit grows.
Ticker Byline
Everus Construction Group, Inc.
Everus Construction Group provides electrical, mechanical and utility construction services. Its work includes data centers, industrial facilities and power infrastructure.
- Ticker
- ECG
- Exchange
- XNYS
- SEC CIK
- 0002015845
Growth before and after the acquisitions
Dollar amounts are millions. Calendar quarters ended June 30 and September 30, 2026. Revenue and net income are reported figures; organic growth excludes acquisitions and divestitures over the preceding year. EBITDA adds net interest, tax, depreciation and amortization to net income.
| Metric | Q2 2026 | Q3 2026 |
|---|---|---|
| Revenue | $1,231.6 | $1,384.2 |
| Organic revenue growth, year over year | 30.0% | 35.8% |
| Net income | $83.9 | $91.9 |
| EBITDA margin | 10.4% | 10.1% |
Quarterly growth accelerated, while the EBITDA margin remained below the preceding quarter. A $7.6 million dispute-resolution benefit supported the third-quarter gross margin. The latest growth and cash analysis compares the result with the earlier forecast.
The forecast and acquisition timeline
In August, Everus expected annual revenue of $4.5 billion to $4.7 billion and EBITDA of $410 million to $425 million. That outlook included SE&M, acquired in April. Epsilon Industries closed on September 1 for $295 million in cash, subject to closing adjustments, with an Epsilon-inclusive outlook promised for the third-quarter report.
The November forecast is $5 billion to $5.1 billion in revenue and $485 million to $495 million of EBITDA. September backlog of $5.48 billion includes $742.3 million contributed by this year's acquisitions. Backlog estimates the value of work still to be performed.
Cash and financing
Nine-month operating cash flow rose to $267.3 million from $108.6 million. The matched third-quarter figures, derived by subtracting the first half, were $70.5 million and $76.2 million. The company's free-cash-flow measure deducts capital spending after proceeds from selling equipment; acquisition cash spending is a separate investing use.
At September 30, debt principal was $571.5 million, compared with $277.5 million in June and $285 million at the preceding year-end. Unrestricted cash and cash equivalents were $244.8 million, versus $157.4 million in June and $152.7 million at year-end. The larger balance-sheet cash figure also includes restricted cash.
The September credit amendment refinanced existing term debt and increased the term loan by $200 million to $477.5 million. It expanded the revolver to $350 million. With $100 million drawn and $2.2 million of letters of credit, $247.8 million remained available at quarter-end. Management's net-debt-to-trailing-EBITDA ratio was 0.7 times.
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