Cantor Fitzgerald has commenced its coverage of Everus (NYSE:ECG), assigning the stock a Neutral rating and establishing a price objective of $97 per share, a figure consistent with the prevailing analyst consensus which ranges between $97 and $110. The investment firm identifies Everus as a prominent electrical and mechanical contractor, benefiting from strong demand across sectors including data centers, electrification initiatives, and transmission infrastructure projects. With a market cap near $4.7 billion, Everus holds a significant position within its market niche.
In its analysis, Cantor Fitzgerald underscores Everus's consistent operational progress, noting notable growth in revenues, expanding profit margins, and enhanced return metrics. These positive trends are attributed to Everus's disciplined approach to project selection and its strategic focus on higher-value work mixes. Supporting this outlook, InvestingPro data highlights an impressive 28.2% increase in revenue over the prior twelve months. However, the gross profit margin is relatively modest at 12.1%, a figure that corresponds with InvestingPro’s guidance on areas demonstrating weaker gross profitability.
Further bolstering its positive stance, Cantor Fitzgerald emphasizes that Everus's order backlog has reached an all-time peak. This strong backlog is heavily supported by projects in the data center segment, which also offers pronounced visibility into earnings performance through to 2026. The company's management has placed emphasis on maintaining a robust pre-construction pipeline, which assures ongoing replenishment of backlog in both its Engineering & Mechanical and Transmission & Distribution operations, aligning with sustained project activity.
Complementing the initiation of coverage, Everus recently released its third-quarter earnings report for 2025, significantly surpassing market expectations. The company posted earnings per share of $1.11, substantially above analyst estimates of $0.73, marking a 52.05% positive variance. Revenue for this quarter reached $986.8 million, reflecting a remarkable 30% increase relative to the same quarter in the prior year.
Operationally, Everus announced a transition in its auditing services. Deloitte & Touche LLP will conclude its audit responsibilities for the fiscal year ending December 31, 2025, after which KPMG will assume auditing duties following a comprehensive selection process. Importantly, this change arises without any disputes or differences concerning accounting principles or financial disclosures between the company and Deloitte.
In staffing developments, Everus appointed Kenneth L. "Kenny" Whipple as vice president of business development. Whipple brings near two decades of relevant experience, encompassing supervisory and project management roles, to spearhead growth initiatives.
Collectively, these developments, combined with the disciplined execution highlighted by Cantor Fitzgerald, position Everus steadily within the electrical and mechanical contracting sector, amid strong demand trends in technology infrastructure and transmission solutions.
Cantor Fitzgerald initiated coverage of Everus, an electrical and mechanical contracting firm, assigning a Neutral rating and a $97 price target. The firm highlighted Everus's robust revenue growth and expanding backlog, driven by demand in data center construction and infrastructure projects. Despite solid performance, the gross margin remains modest, aligning with some industry cautions. Recent earnings exceeded forecasts, and operational changes include a new auditing partner and a key business development appointment.
Key Points
- Cantor Fitzgerald initiated coverage of Everus with a Neutral rating and set a $97 price target, aligning with the existing analyst consensus.
- Everus has demonstrated robust revenue growth of 28.2% over the past year, with an all-time high backlog supported especially by data center projects, providing visibility through 2026.
- The company reported Q3 2025 earnings surpassing expectations with EPS of $1.11 vs. $0.73 estimated and a 30% year-over-year revenue increase to $986.8 million, alongside auditor transition and a key executive appointment.
Risks
- Everus’s gross profit margin remains modest at 12.1%, which may constrain overall profitability despite revenue gains, indicating potential margin pressure risks.
- The company’s reliance on continued project wins in data centers and infrastructure sectors introduces demand variability risk, which could impact future backlog and revenue visibility.
- Transitioning auditors and key leadership changes, while smooth so far, bring operational risks related to corporate governance and strategic execution.