Everus Construction Group Closes $295M Cash Acquisition of Epsilon Industries

Everus Construction Group (NYSE: ECG) has finalized its $295 million all-cash purchase of Epsilon Industries, expanding its off-site fabrication capabilities to serve the rapidly growing data center, hospital, and advanced manufacturing sectors. The deal, which was first announced on July 31 and completed on September 1, brings a North American producer of prefabricated electrical and mechanical units under the Everus umbrella shortly after the buyer reported strong second-quarter financial growth, as first reported by Yahoo Finance.

Epsilon operates manufacturing plants across both the United States and Canada, specializing in modular systems that allow infrastructure developers to accelerate build times. By integrating Epsilon's off-site assembly lines, Everus aims to enhance its construction throughput for high-tech facilities and data centers—end markets that have increasingly dominated the company's expanding project pipeline. Under the terms of the transaction, Epsilon President Chris Wiederick and the existing executive team will remain in their positions to maintain operational continuity.

The acquisition follows a lucrative second quarter for Everus, during which overall revenue expanded 33.7% year-over-year to hit $1.23 billion. Diluted earnings per share surged 59.2% to $1.64 over the same period. The company's total order backlog reached $4.55 billion, representing a 41% climb from the end of 2025 and a 52.8% increase compared to the prior-year period, driven primarily by demand in its core infrastructure lines.

Much of that expansion stemmed from the company's electrical and mechanical division, which recorded a 41.6% rise in quarterly revenue and a 71.6% jump in EBITDA. The segment accumulated over $2 billion in new project awards during the quarter across the high-tech, hospitality, and data center domains, pushing its standalone backlog to $4.16 billion. Adding Epsilon’s modular build operations directly strengthens this high-performing business unit as demand for specialized infrastructure builds continues to accelerate.

Prior to factoring in Epsilon's financial results, Everus leadership upgraded its full-year performance forecast, projecting annual revenue between $4.5 billion and $4.7 billion and full-year EBITDA ranging from $410 million to $425 million. Management plans to provide comprehensive guidance updates that incorporate Epsilon's contribution during its upcoming third-quarter earnings report.

To finance the $295 million purchase price, Everus utilized cash reserves alongside additional borrowings under its credit facilities. The acquisition represents the company's second transaction of the year, following its purchase of SE&M Constructors in the second quarter. While Everus maintained a modest net leverage ratio of 0.3x as of June 30, that figure predates the new debt incurred to close the Epsilon deal.

Despite overall momentum, performance across Everus’s business units remains uneven. The company's transmission and distribution division experienced a slower 7.1% revenue increase in the second quarter, while its segment backlog declined to $388.4 million from $410.1 million in the same quarter a year ago. This divergence underscores Everus’s growing reliance on sustained capital spending in commercial construction, high-tech manufacturing, and data center infrastructure.

Institutional investor sentiment around Everus stock has shown steady interest leading into the second half of 2026. The number of hedge funds holding positions in the company edged up from 44 to 45 funds, while short interest remained subdued at 4.30% of float. As of September 4, Everus traded at a forward price-to-earnings multiple of 27.62, reflecting market expectations for continued operational growth as the company manages the simultaneous integration of its two recent corporate acquisitions.