Everus: A Year of Gains, and Questions

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The market, as is its habit, has awarded a substantial prize to Everus Construction Group. Over the past year, the company’s share price has doubled, a performance that demands, if not scrutiny, at least a raised eyebrow. Recent filings reveal Wasatch Advisors has taken a significant position – $184.84 million worth of shares – a move that warrants examination beyond the simple reporting of numbers.

The Transaction

Wasatch Advisors, as documented in a February 12, 2026, filing with the Securities and Exchange Commission, has acquired 2,160,337 shares in Everus. This is not a trifling sum. It represents 1.1% of Wasatch’s total assets under management as of December 31, 2025. The fund’s broader holdings, as of the same date, include NASDAQ: HQY ($603.68 million), NASDAQ: ENSG ($494.48 million), NYSE: RBC ($449.93 million), NASDAQ: NVMI ($439.43 million), and NYSE: FOUR ($426.87 million). The injection of capital into Everus, therefore, is not merely a rounding error in a larger portfolio.

As of February 12th, Everus shares closed at $101.27. This price represents a considerable leap, significantly outpacing the S&P 500’s more modest gain of roughly 13% over the same period. Such disparities are rarely organic; they are usually the result of either genuine opportunity or collective illusion. It is the duty of a clear-eyed observer to attempt to discern which is at play.

The Company Itself

Everus Construction Group operates in the utility and construction sectors, providing services ranging from electrical line construction to equipment manufacturing. Its revenue for the trailing twelve months stands at $3.49 billion, yielding a net income of $180.96 million. These are not insignificant figures, but they are not, in themselves, a guarantee of future success. The company’s market capitalization currently sits at $5.17 billion.

The firm’s stated focus is on integrated solutions for complex infrastructure projects. This is, of course, what all companies claim to offer. The true test lies in execution, a detail often overlooked in the rush to celebrate rising share prices.

What Does This Mean for Investors?

The surge in Everus’ stock price is, undeniably, impressive. However, momentum is a fickle friend. A rising tide may lift all boats, but it does not necessarily indicate seaworthiness. Everus has recently reported third-quarter revenue of $986.8 million, a 30% year-over-year increase. EBITDA climbed 36.9% to $89.0 million, with margins expanding to 9.0%. Backlog currently stands at $2.95 billion, a 6% increase from year-end. Management has optimistically lifted full-year guidance to as much as $3.65 billion in revenue and $300 million in EBITDA.

This is all encouraging, but it does not alter the fundamental truth that Everus operates in a cyclical industry. Demand for data centers and utility infrastructure is currently high, driving results. The crucial question is whether this demand will persist, and whether Everus can efficiently convert its backlog into earnings. Capital discipline, a quality increasingly rare in the modern business landscape, will be paramount.

For long-term investors, the key lies in durability. Can Everus maintain its margins, manage its debt, and consistently deliver on its promises? The next earnings report, due on an unspecified date, will offer a glimpse, but it will not provide a definitive answer. In construction, as in all things, timing and execution matter as much as demand. A healthy dose of skepticism, therefore, is entirely justified.

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2026-02-24 20:12