Everus Construction Group Reports 32.1% Revenue Growth to $826.6 Million

Everus Construction Group, Inc. reported significant financial growth in its latest quarterly results, with operating revenues reaching $826.6 million for the three months ended March 31, 2025, a 32.1% increase from $625.7 million in the same period last year. The company's net income also rose by 30.1%, amounting to $36.7 million compared to $28.2 million in the prior year. This growth was primarily driven by a substantial increase in revenues from the Electrical & Mechanical (E&M) segment, which saw a 47.0% rise to $648.2 million, while the Transmission & Distribution (T&D) segment experienced a slight decline of 1.9% to $185.0 million.

The financial performance reflects a notable increase in operating income, which rose to $51.0 million, up 31.1% from $38.9 million in the previous year. The gross profit margin, however, decreased slightly to 11.2% from 11.9%, attributed to higher operating costs and changes in project mix. Selling, general, and administrative expenses increased by 15.9% to $41.5 million, driven by higher labor and professional service costs as the company expanded its operations post-separation from MDU Resources.

Everus has undergone significant organizational changes, including its recent separation from MDU Resources, which was completed on October 31, 2024. This transition has allowed Everus to operate as an independent publicly traded company, listed under the ticker symbol "ECG" on the New York Stock Exchange. The company has also established its own centralized cash management program and financing arrangements, moving away from reliance on MDU Resources' financial support.

Operationally, Everus reported a working capital of $425.0 million as of March 31, 2025, an increase from $403.9 million at the end of 2024. The company’s backlog, a key indicator of future revenue, stood at $2.55 billion, reflecting strong project growth in the commercial and industrial end markets. The company anticipates continued demand for its services, particularly in data center construction and utility infrastructure investments, which are expected to drive future revenue growth.

Looking ahead, Everus remains focused on expanding its market presence and improving operational efficiency. The company is committed to managing costs effectively while pursuing strategic growth opportunities, including potential acquisitions. Despite facing challenges such as rising insurance costs and inflation, Everus is optimistic about its ability to generate cash flow and maintain profitability in the coming quarters.