Core Viewpoint - Everus Construction Group, Inc. (ECG) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - The Zacks rating upgrade reflects an improved earnings outlook for Everus Construction Group, suggesting potential buying pressure and an increase in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant buying or selling activity that affects stock prices [5]. Recent Performance of Everus Construction Group - Everus Construction Group is projected to earn $4.16 per share for the fiscal year ending December 2026, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Everus has increased by 9.6%, indicating a positive trend in earnings estimates [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Everus Construction Group to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10][11].

Group 1: National Energy Services Reunited Corp. (NESR) - NESR is an oilfield services company with a Zacks Rank 1 and a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - NESR's shares have gained 39.6% over the last three months, while the S&P 500 has declined by 2.2% [1] - The company has a Momentum Score of A [1] Group 2: Everus Construction Group, Inc. (ECG) - ECG is a contracting services company with a Zacks Rank 1 and a 9.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - ECG's shares have gained 14.6% over the last three months, compared to the S&P 500's decline of 2.2% [2] - The company has a Momentum Score of B [2] Group 3: ACM Research, Inc. (ACMR) - ACMR is a capital equipment company with a Zacks Rank 1 and a 13.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - ACMR's shares have gained 13.8% over the last three months, while the S&P 500 has declined by 2.2% [3] - The company has a Momentum Score of B [3]

Market Overview - All three major U.S. stock market indices ended March 4, 2026, in positive territory despite escalating missile exchanges in the Middle East, driven by gains in tech leaders and a slowdown in oil price spikes [1] - Optimists suggest that the oil market's reaction indicates the conflict may remain contained, potentially encouraging investors to pursue high-growth beta stocks [2] Investment Strategy - Companies with low financial leverage are better equipped to handle economic shocks, making low-leverage stocks a solid defensive option during geopolitical uncertainties [3] - Recommended low-leverage stocks include Everus Construction Group, Inc. (ECG), Telefonica Brasil (VIV), Laureate Education (LAUR), HNI Corp. (HNI), and Costco Wholesale (COST) [3] Low-Leverage Stocks - Leverage refers to borrowing capital for operations and expansion, with debt financing being more common than equity financing [5] - High debt-to-equity ratios can lead to significant losses during economic downturns, making low-leverage stocks less risky [6][7] - The debt-to-equity ratio is a key metric for assessing financial risk, with lower ratios indicating better solvency [8] Company Performance - Everus Construction Group reported a 33.1% increase in fourth-quarter revenues to $1.01 billion and a 61.2% rise in earnings year-over-year [15] - Telefonica Brasil's fourth-quarter net operating revenues rose 7.1% year-over-year, supported by strong mobile postpaid performance [17] - Laureate Education's revenues increased by 28% year-over-year to $541.4 million, with an 88.7% improvement in earnings per share [19] - HNI Corp. saw a 38.3% year-over-year increase in net sales to $888.4 million [21] - Costco Wholesale reported January sales of $21.33 billion for the four weeks ended February 1, 2026, reflecting a 9.3% increase from the previous year [23]

Core Viewpoint - Everus Construction Group, Inc. (ECG) is experiencing solid improvement in earnings estimates, leading to positive short-term price momentum and a favorable earnings outlook [1][3]. Earnings Estimate Revisions - Analysts show growing optimism regarding ECG's earnings prospects, as reflected in the upward trend of estimate revisions, which correlates strongly with stock price movements [2]. - The consensus earnings estimate for the current quarter is $0.76 per share, representing a 5.6% increase from the previous year [6]. - Over the last 30 days, the Zacks Consensus Estimate for ECG has increased by 8.57%, with one estimate moving higher and no negative revisions [6]. - For the full year, ECG is expected to earn $4.16 per share, a 5.3% increase from the prior year, with two estimates moving up and no negative revisions, resulting in a 9.63% increase in the consensus estimate [7][8]. Zacks Rank - ECG currently holds a Zacks Rank 1 (Strong Buy), indicating promising estimate revisions and a strong potential for outperformance [9]. - Stocks with Zacks Rank 1 and 2 have historically outperformed the S&P 500 [9]. Stock Performance - ECG shares have increased by 36.6% over the past four weeks, suggesting strong investor confidence in its earnings growth prospects [10].

Core Viewpoint - Everus Construction Group, Inc. (ECG) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [3][4][12] Momentum Style Score Analysis - The Momentum Style Score for ECG is influenced by price changes and earnings estimate revisions, indicating strong potential for profitable trades [3][9] - ECG's shares have increased by 11.75% over the past week, while the Zacks Building Products - Miscellaneous industry has decreased by 3.27% during the same period [6] - Over the past month, ECG's stock price has risen by 36.59%, significantly outperforming the industry's 1.92% [6] Long-term Performance Metrics - ECG's shares have increased by 31.74% over the past quarter and 190.55% over the last year, compared to the S&P 500's gains of 1.28% and 18.65%, respectively [7] - The average 20-day trading volume for ECG is 729,097 shares, which is considered a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, two earnings estimates for ECG have been revised upwards, raising the consensus estimate from $3.79 to $4.16 [10] - For the next fiscal year, one estimate has increased while no estimates have been revised downwards, indicating positive sentiment [10]

Group 1: Everus Construction Group, Inc. (ECG) - Everus Construction provides a full spectrum of construction services, focusing on electrical, mechanical, and transmission and distribution specialty contracting services primarily in the United States [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 9.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Everus Construction's shares have gained 30.2% over the last three months, significantly outperforming the S&P 500's gain of 0.3%, and it possesses a Momentum Score of A [2] Group 2: CLEAR Secure (YOU) - CLEAR Secure offers a platform that connects users to the cards in their wallet and holds a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for CLEAR Secure's current year earnings has increased by 13.4% over the last 60 days [2] - The company's shares have surged by 45.6% over the last three months, again outperforming the S&P 500's gain of 0.3%, and it also has a Momentum Score of A [3] Group 3: Encore Capital Group (ECPG) - Encore Capital Group is an international specialty finance company that provides debt recovery solutions and related services for consumers across a broad range of financial assets [3] - The company has a Zacks Rank of 1 and has experienced a 27.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Encore Capital's shares have increased by 30.6% over the last three months, outperforming the S&P 500's gain of 0.3%, and it possesses a Momentum Score of A [4]

Shares of Everus Construction Group, Inc. (ECG) have been strong performers lately, with the stock up 38.8% over the past month. The stock hit a new 52-week high of $137.64 in the previous session. Everus Construction Group, Inc. has gained 52.1% since the start of the year compared to the 14.7% gain for the Zacks Construction sector and the 7.9% return for the Zacks Building Products - Miscellaneous industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprise ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number 001-42276 Everus Construction Group, Inc. (Exact name of Registrant as specified in its charter) Delaware 99-1952207 (S ...

Financial Data and Key Metrics Changes - Q4 revenues exceeded $1 billion for the first time, up 33% from the prior year period, driven by growth in both E&M and T&D segments [6][16] - Full-year revenues increased 32% to $3.75 billion, primarily from the E&M business, with EBITDA up 52% to $320 million compared to 2024 [7][8][17] - Q4 EBITDA margin was 8.4%, up 70 basis points from 7.7% in the prior year period [17] Business Line Data and Key Metrics Changes - E&M segment Q4 revenues increased 44% to $791.6 million, driven by growth in commercial and renewables markets, particularly data centers [18] - T&D segment Q4 revenues were $227.7 million, up 6.8% from Q4 2024, with EBITDA margin at 13.4%, down from 14.3% in the same period [19][20] Market Data and Key Metrics Changes - Backlog at the end of 2025 was $3.2 billion, up 16% from the same period last year, with T&D backlog up 41% and E&M backlog up 13% [8][18] - The company sees robust project pipeline across diverse markets including data centers, hospitality, semiconductor, transmission, and undergrounding [9] Company Strategy and Development Direction - The company focuses on attracting, retaining, and training employees, creating value for customers and shareholders, and maintaining strong customer relationships as part of its Forever Strategy [10][12] - Plans for geographic expansion through satellite projects and strategic acquisitions to enhance market presence and operational capabilities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth due to favorable market trends and strong backlog entering 2026, with initial guidance forecasting revenues of $4.1 billion to $4.2 billion [22][23] - The company remains optimistic about its ability to execute projects safely and efficiently, which is critical for long-term growth [7][9] Other Important Information - The company increased capital spending in 2025 to support growth initiatives, with CapEx rising to $66.8 million from $43.8 million in 2024 [21] - Free cash flow for 2025 was $100 million, down from $128.8 million in 2024, reflecting increased investments in working capital and CapEx [21] Q&A Session Summary Question: Guidance and Margins - Inquiry about exceptional execution in 2025 and expectations for 2026 margins [26] - Management noted exceptional margin contributions from diverse projects and expressed confidence in achieving 7.9%-8% margins in 2026 [27][28] Question: Leverage and Free Cash Flow - Questions regarding low leverage and M&A strategy [29] - Management confirmed a target leverage of 1.5-2 times and emphasized the importance of a strong balance sheet for organic growth and M&A opportunities [30][31] Question: Capacity Constraints and Backlog - Inquiry about potential capacity constraints with record backlog [36] - Management assured that they have sufficient skilled labor to meet project demands and that 80% of backlog typically burns off within 12 months [38][39] Question: Satellite Operations and Expansion - Questions about opportunities for satellite expansions in 2026 [45] - Management confirmed ongoing assessments for new geographic opportunities and the importance of contract negotiations and local market evaluations [46][47] Question: Labor Costs and Pricing - Inquiry about labor cost management and pricing strategies [55] - Management indicated that they are successfully incorporating potential labor cost increases into job pricing and do not foresee risks from labor cost fluctuations [56] Question: M&A Strategy and Market Multiples - Questions regarding M&A opportunities and market multiples [57] - Management is open to both larger transactions and smaller tuck-ins, focusing on companies that align with their strategic priorities [58][60]

Financial Data and Key Metrics Changes - Fourth quarter revenues exceeded $1 billion for the first time, up 33% from the prior year period, driven by growth in both E&M and T&D segments [6][16] - Full-year revenues increased 32% to $3.75 billion, primarily from the E&M business, with EBITDA rising 52% to $320 million compared to 2024 [7][17] - Fourth quarter EBITDA margin was 8.4%, up 70 basis points from 7.7% in the prior year period [16][17] Business Line Data and Key Metrics Changes - E&M segment revenues increased 44% to $791.6 million in the fourth quarter, with EBITDA rising 57% to $67.1 million [18][19] - T&D segment revenues were $227.7 million, up 6.8% from the previous year, but EBITDA was flat at $30.5 million due to project mix and higher SG&A expenses [19][20] Market Data and Key Metrics Changes - The backlog at the end of 2025 was $3.2 billion, up 16% from the same period last year, with T&D backlog increasing by 41% and E&M backlog by 13% [8][18] - The company sees robust project pipelines across diverse markets, including data centers, hospitality, and semiconductor sectors [9][18] Company Strategy and Development Direction - The company focuses on its "Forever Strategy," which emphasizes employee retention, customer value creation, and operational excellence [10][12] - Plans for geographic expansion through satellite projects are in place, with a recent entry into a new market supporting a large semiconductor company [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth due to favorable market trends and a strong backlog entering 2026 [24] - The company anticipates revenue guidance for 2026 in the range of $4.1 billion to $4.2 billion, reflecting strong demand drivers [23][24] Other Important Information - The company ended 2025 with approximately 9,400 employees, up from 8,700 at the end of 2024, indicating a focus on workforce expansion [11] - Capital expenditures increased to $66.8 million in 2025, up from $43.8 million in 2024, to support growth initiatives [22] Q&A Session Summary Question: Guidance and Margins - Inquiry about whether exceptional execution in 2025 would be repeatable in 2026 and if management is being conservative in their guidance [27] - Management confirmed that exceptional margin upside was due to diversified contributions from various markets and expressed confidence in achieving forecasted margins for 2026 [28][29] Question: Leverage and Free Cash Flow - Questions regarding the company's low leverage and thoughts on optimal leverage levels, as well as free cash flow conversion going forward [30] - Management emphasized the importance of a strong balance sheet for organic growth and M&A opportunities, indicating a target leverage of 1.5-2 times [32] Question: Capacity Constraints and Backlog - Inquiry about potential capacity constraints given the record backlog and lead times for projects [37] - Management reassured that they have sufficient skilled labor to complete projects and that 80% of the backlog typically burns off within 12 months [39][41] Question: Satellite Operations and Expansion - Questions about opportunities for satellite expansions in 2026 and specific geographies of interest [47] - Management indicated a selective approach to satellite operations and mentioned potential opportunities in the South and Southeast [49] Question: Labor Costs and M&A Strategy - Inquiry about labor cost management and the company's approach to M&A in the current market [58][60] - Management stated that they are successfully incorporating labor cost increases into pricing and are open to both larger and smaller M&A transactions [61][63]