Everus Construction Group, Inc. ECG benefits from demand for utility infrastructure, which remains an important growth driver for its Transmission & Distribution (T&D) segment. Spending on utility projects provides revenue opportunities, while project execution and cost management influence the segment's profitability. The pace of growth in this business will depend partly on the level of utility demand and the company's ability to convert project activity into revenues.
In the second quarter of 2026, Everus' T&D revenues increased 7.1% year over year to $227.5 million from $212.4 million. Higher workloads in the utility end market, particularly in transmission and distribution, drove the increase. Segment EBITDA rose 7.9% to $32.8 million, while the EBITDA margin edged up to 14.4% from 14.3% a year earlier. Net income increased 7.3% to $19.1 million, supported by revenue growth and stable gross margin.
The segment's backlog provides a more measured picture of future demand. As of June 30, 2026, T&D backlog stood at $388.4 million, up 1% from $384.5 million at the end of 2025. However, it declined from $410.1 million a year earlier. This suggests that recent revenue growth has not yet been accompanied by year-over-year backlog expansion. The limited sequential increase also points to a need for stronger order growth to improve future revenue visibility.
The company's focus on project execution and disciplined capital allocation remains relevant to future T&D performance. Everus plans to support organic growth with capital while evaluating selective acquisitions in the segment. The extent to which utility demand translates into stronger revenue growth will depend on project activity, execution and the timing of work.
How Do Quanta and MasTec Compare in the Utility Infrastructure Market?
Quanta Services, Inc. PWR benefits from its scale and broad capabilities across power transmission, distribution, substations and grid modernization. In the second quarter of 2026, Power Delivery revenues increased nearly 20% year over year, while segment backlog reached a record $6.3 billion. Strong utility spending on transmission, system reliability and grid upgrades supported demand. A book-to-bill ratio of 1.1x also indicated that new orders exceeded segment revenues during the quarter.
MasTec, Inc. MTZ also gained from utility infrastructure investment. Second-quarter Power Delivery revenues increased nearly 20% year over year, while EBITDA grew 24%. Segment backlog rose nearly $1.3 billion from the prior-year period. Spending on transmission, system hardening and reliability supported demand, while rising electricity requirements from mission-critical projects added to the need for grid expansion, new transmission lines and substations.
The two companies benefit from rising utility infrastructure spending, but both operate within broader service platforms. Quanta's record Power Delivery backlog reflects its scale in utility and transmission work, while MasTec combines power infrastructure with exposure to communications, clean energy and other construction markets. These differences offer investors two distinct ways to assess growth opportunities linked to grid modernization and rising electricity demand.
ECG Stock’s Price Performance & Valuation Trend
Shares of this North Dakota-based construction services company have climbed 40.3% year to date ("YTD"), outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.
ECG Price Performance (YTD)
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ECG stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 20.65, as the trend lines suggest below.
ECG P/E (F12M)
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Earnings Estimate Trend of ECG
ECG’s earnings estimates for 2026 and 2027 have moved north over the past 60 days to $5.25 and $5.97 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 32.9% and 13.7%, respectively.
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ECG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).