ECG has achieved robust revenue expansion with 31.47% year-over-year growth, yet structural reliance on variable labor costs keeps gross margins constrained at approximately 12.12%.
| Sales/Revenue | 3.96B | 3.75B | 2.85B | 2.85B | 2.7B |
| Revenue Growth % | 29.7% | 31.47% | -0.16% | 5.75% | - |
| Cost of Goods Sold | 3.46B | 3.29B | 2.51B | 2.53B | 2.42B |
| COGS % of Revenue | - | 87.88% | 88.09% | 88.72% | 89.77% |
| Gross Profit | 492.32M | 454.09M | 339.45M | 321.92M | 276.05M |
| Gross Margin % | 12.44% | 12.12% | 11.91% | 11.28% | 10.23% |
| Gross Profit Growth % | - | 33.77% | 5.45% | 16.62% | - |
| Operating Expenses | 200.87M | 189.34M | 149.54M | 131.38M | 111.4M |
| OpEx % of Revenue | - | 5.05% | 5.25% | 4.6% | 4.13% |
| Selling, General & Admin | 200.87M | 189.34M | 149.54M | 108.17M | 111.4M |
| SG&A % of Revenue | - | 5.05% | 5.25% | 3.79% | 4.13% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 23.2M | 0 |
| Operating Income | 291.45M | 264.75M | 189.91M | 190.54M | 164.64M |
| Operating Margin % | 7.37% | 7.07% | 6.66% | 6.68% | 6.1% |
| Operating Income Growth % | - | 39.41% | -0.33% | 15.73% | - |
| EBITDA | 321.43M | 293.55M | 215.18M | 213.69M | 186.11M |
| EBITDA Margin % | 8.12% | 7.84% | 7.55% | 7.49% | 6.89% |
| EBITDA Growth % | 40.86% | 36.42% | 0.7% | 14.82% | - |
| D&A (Non-Cash Add-back) | 29.98M | 28.8M | 25.27M | 23.15M | 21.47M |
| EBIT | 312.77M | 295.53M | 194.78M | 184.36M | 166.02M |
| Net Interest Income | -9.86M | -16.88M | -14.02M | -16.95M | -6.35M |
| Interest Income | 4.04M | 4.57M | 0 | 10.93M | 0 |
| Interest Expense | 18.52M | 21.45M | 14.02M | 27.89M | 6.35M |
| Other Income/Expense | 8.33M | 9.33M | 3.04M | -8.03M | 925K |
| Pretax Income | 299.78M | 274.08M | 192.94M | 182.52M | 165.57M |
| Pretax Margin % | 7.58% | 7.32% | 6.77% | 6.39% | 6.13% |
| Income Tax | 76.36M | 72.31M | 49.52M | 45.29M | 40.79M |
| Effective Tax Rate % | 25.47% | 26.38% | 25.67% | 24.81% | 24.64% |
| Net Income | 223.41M | 201.77M | 143.42M | 137.23M | 124.78M |
| Net Margin % | 5.65% | 5.39% | 5.03% | 4.81% | 4.62% |
| Net Income Growth % | 47.1% | 40.68% | 4.51% | 9.98% | - |
| Net Income (Continuing) | 223.41M | 201.77M | 143.42M | 137.23M | 124.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.36 | 3.95 | 2.81 | 2.69 | 2.45 |
| EPS Growth % | 46.8% | 40.57% | 4.46% | 9.8% | - |
| EPS (Basic) | - | 3.94 | 2.81 | 2.69 | 2.45 |
| Diluted Shares Outstanding | 51.19M | 51.17M | 51.07M | 50.97M | 50.97M |
| Basic Shares Outstanding | 51.08M | 51.05M | 50.97M | 50.97M | 50.97M |
| Dividend Payout Ratio | - | - | - | - | - |
Labor cost inflation volatility
According to recent financial disclosures, ECG achieved a notable 31.47% year-over-year revenue growth, signaling strong demand for its utility infrastructure services as the company successfully navigates its transition to an independent entity while scaling its project pipeline across the Upper Midwest and Rocky Mountain corridors.
The acceleration in top-line performance suggests that the company is effectively capturing increased grid modernization spending. Investors should monitor whether this growth is sustainable or if it reflects a temporary surge in project awards following the spin-off from its former parent.
As reported in quarterly filings, ECG maintains a gross margin profile of approximately 12.12%, which highlights the company's reliance on high-variable-cost labor and raw materials, leaving limited room for error in project execution and pricing within its competitive utility and mechanical service markets.
The current operating margin of 7.07% appears lean, suggesting that management has successfully controlled overhead costs during the transition. However, the lack of significant margin expansion despite strong revenue growth indicates that the business remains highly sensitive to labor productivity and inflationary pressures on specialized components.
Based on the provided income statement data, ECG's operating income has scaled alongside revenue, yet the company's SG&A expenses have risen from $6.5 million in late 2023 to $53.0 million in 2026Q1, reflecting the necessary build-out of independent corporate infrastructure following the recent spin-off.
The increase in administrative costs warrants close investigation to determine if these are one-time separation expenses or a permanent shift in the cost structure. If SG&A continues to outpace gross profit growth, the company may struggle to achieve meaningful operating leverage in the coming fiscal years.
Analysis of the income statement reveals that stock-based compensation has trended upward, reaching $2.0 million in 2026Q1, which suggests that management is increasingly utilizing equity-based incentives to retain talent in a tight labor market, potentially diluting the quality of reported net income over time.
While net income growth remains positive, the rising SBC expense indicates that the company is facing higher human capital costs as a standalone entity. Investors should assess whether these compensation levels are aligned with long-term shareholder value creation or if they represent an escalating burden on earnings.
Data from recent periods suggests that ECG's reliance on percentage-of-completion accounting could mask underlying project delays, as evidenced by the potential for contract assets to grow faster than billings, which may indicate that the company is recognizing revenue on work that has not yet been monetized.
Short-term performance may be flattered by aggressive revenue recognition, but the underlying risk of fixed-price contract exposure remains significant. If labor shortages or material cost spikes occur, the company's thin 12% gross margin buffer could evaporate, leading to rapid earnings volatility.
Quick answers to the most common questions about buying ECG stock.
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Everus Construction Group, Inc. (ECG) is profitable, generating $201.8M in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
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Everus Construction Group, Inc. (ECG) generated $454.1M in gross profit for the year, representing a gross profit margin of 12.1%. This demonstrates the company's core pricing power and production efficiency.