Cash flow generation remains highly cyclical, with working capital fluctuations reaching $73.5 million in 2023Q4, necessitating a close watch on the OCF/NI ratio which has swung as low as 0.19.
| Cash from Operations | 293.39M | 156.84M | 163.38M | 171.34M | -25.5M |
| Operating CF Margin % | - | 4.19% | 5.73% | 6% | -0.94% |
| Operating CF Growth % | 2110.31% | -4% | -4.65% | 772.05% | - |
| Net Income | 223.41M | 201.77M | 143.42M | 137.23M | 124.78M |
| Depreciation & Amortization | 29.98M | 28.8M | 25.27M | 23.15M | 21.47M |
| Stock-Based Compensation | 6.57M | 6.31M | 1.56M | 804K | 1.07M |
| Deferred Taxes | 5.33M | 6.34M | 1.63M | -3.1M | 1.06M |
| Other Non-Cash Items | 2.46M | -9.72M | -5.08M | -6M | -10M |
| Working Capital Changes | 25.63M | -76.66M | -3.42M | 19.26M | -163.87M |
| Change in Receivables | -227.24M | -269.15M | -89.65M | 30.83M | -239.91M |
| Change in Inventory | -565K | -1.52M | -1.04M | -5.87M | -15.8M |
| Change in Payables | 78.29M | 88.37M | 14.3M | -21.78M | 66.47M |
| Cash from Investing | -56.25M | -56.77M | -37.06M | -19.97M | -24.57M |
| Capital Expenditures | -63.77M | -66.84M | -48.28M | -35.59M | -35.84M |
| CapEx % of Revenue | 1.61% | 1.78% | 1.69% | 1.25% | 1.33% |
| Acquisitions | 2.33M | 0 | 13.71M | 0 | 11.34M |
| Investments | - | - | - | - | - |
| Other Investing | 5.3M | 10.07M | 0 | 16.21M | 0 |
| Cash from Financing | -17.77M | -15.59M | -41.87M | -151.91M | 51.5M |
| Debt Issued (Net) | -15M | -15M | 300M | -72M | 27M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.77M | -588K | -341.87M | -79.91M | 24.5M |
| Net Change in Cash | 219.38M | 84.49M | 84.44M | -545K | 1.44M |
| Free Cash Flow | 229.63M | 90.01M | 115.1M | 135.75M | -61.34M |
| FCF Margin % | 5.8% | 2.4% | 4.04% | 4.76% | -2.27% |
| FCF Growth % | 146.38% | -21.8% | -15.21% | 321.31% | - |
| FCF per Share | 4.49 | 1.76 | 2.25 | 2.66 | -1.20 |
| FCF Conversion (FCF/Net Income) | 1.03x | 0.78x | 1.14x | 1.25x | -0.20x |
| Interest Paid | 10.14M | 0 | 0 | 16.84M | 5.75M |
| Taxes Paid | 28.54M | 0 | 50.21M | 52.32M | 33.2M |
Working capital volatility
According to the provided cash flow statements, ECG's OCF/NI ratio has fluctuated significantly, ranging from a low of 0.19 in 2025Q1 to a high of 3.01 in 2023Q4, indicating that reported net income is frequently decoupled from the actual cash generated by core operations.
The wide variance in the OCF/NI ratio suggests that the company's earnings quality is heavily influenced by the timing of project milestones and billing cycles. Investors should monitor whether this inconsistency reflects inherent project-based lumpiness or potential challenges in converting contract assets into realized cash inflows.
As reported in financial statements, ECG's free cash flow trajectory exhibits extreme quarterly swings, with margins oscillating from a negative 3.6% in 2024Q2 to a robust 16.1% in 2023Q4, highlighting the difficulty in maintaining consistent cash generation during the company's transition to an independent entity.
The erratic nature of FCF suggests that the company's cash flow profile is sensitive to the timing of large-scale utility project completions. This volatility warrants caution, as it may complicate the company's ability to fund independent capital allocation initiatives without relying on external financing.
Based on the company's historical data, working capital changes have been the primary driver of cash flow variance, with quarterly fluctuations reaching as high as $73.5 million in 2023Q4, suggesting that ECG's cash position is highly sensitive to the efficiency of its billing and collection processes.
The significant impact of working capital changes on operating cash flow implies that ECG's liquidity is tied to the management of contract assets and liabilities. A sustained trend of negative working capital changes in recent quarters may indicate that the company is absorbing costs faster than it is collecting payments.
Data from recent filings shows that ECG maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios consistently hovering between 1.1% and 2.4%, suggesting that the company's business model does not require heavy, recurring investment in fixed assets to support its current project pipeline.
The relatively low capital intensity indicates that ECG's growth is primarily driven by labor and project management rather than massive equipment outlays. This lean asset structure may provide the company with greater flexibility, provided that maintenance requirements do not escalate as its fleet ages.
Quick answers to the most common questions about buying ECG stock.
Everus Construction Group, Inc. (ECG) generated $156.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Everus Construction Group, Inc. (ECG) generated $90.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Everus Construction Group, Inc. (ECG) spent $66.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.