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MYR GROUP INC.

MYRG
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Business Summary

MYR Group Inc. operates as a holding company of specialty electrical construction service providers serving the electric utility infrastructure and commercial and industrial construction markets in the United States and Canada. The Company manages and reports its operations through two electrical contracting service segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I). The T&D segment has operated in the transmission and distribution industry since 1891 and is one of the largest U.S. contractors servicing the T&D sector of the electric utility industry. The C&I segment has provided electrical contracting services for commercial and industrial construction since 1912. The Company's operations are currently conducted through wholly-owned subsidiaries, primarily providing electrical construction services through a network of local offices located throughout the United States and Canada.

The Company's business is highly competitive in both its T&D and C&I segments, with competition primarily based on price, safety reputation, quality, and reliability. In the T&D segment, competitors range from small local independent companies to large national competitors, with barriers to entry including the cost of equipment and tooling, availability of qualified labor, and technical skills. In the C&I segment, competition is predominantly with local, regional, and national firms, with a major competitive factor being individual relationships with general contractors. The Company believes it has a favorable competitive position in both markets due to its operating history, financial strength, reputation, and customer relationships. For the years ended December 31, 2025, 2024, and 2023, the Company's top 10 customers accounted for 38.0% , 37.8% , and 37.9% of revenues, respectively, and no single customer accounted for more than 10.0% of annual revenues in any of those years.

The Company generates revenue by providing electrical construction services, including design, engineering, procurement, construction, upgrade, maintenance, and repair services, with a particular focus on construction, maintenance, and repair. Revenue is recognized over time using the cost-to-cost method, as the Company's performance creates or enhances customer-controlled assets. The Company enters into contracts primarily through a competitive bid process, with contracts structured as fixed-price, unit-price, time-and-equipment, time-and-materials, or cost-plus agreements. Fixed-price contracts accounted for 57.0% of total revenue for the year ended December 31, 2025. The Company also provides services under multi-year master service agreements (MSAs), which are typically one to four years in duration and do not include obligations to assign specific volumes of work. Customer segments include investor-owned utilities, cooperatives, private developers, general contractors, and facility owners.

The Transmission and Distribution (T&D) segment provides a broad range of services on electric transmission and distribution networks and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services, with a particular focus on construction, maintenance, and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations, lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure, as well as emergency restoration services. For the year ended December 31, 2025, T&D revenues were $2.00 billion , or 54.7% of total revenue, compared to $1.88 billion , or 55.9% of total revenue for the year ended December 31, 2024. Revenues from transmission projects represented 59.9% of T&D segment revenue for the year ended December 31, 2025. Measured by revenues in the T&D segment, 34.3% of T&D services were provided under fixed-price contracts during the year ended December 31, 2025.

The Commercial and Industrial (C&I) segment provides services such as the design, installation, maintenance, and repair of commercial and industrial wiring, the installation of intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. Typical C&I contracts cover electrical contracting services for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. For the year ended December 31, 2025, C&I revenues were $1.66 billion , or 45.3% of total revenue, compared to $1.48 billion , or 44.1% of total revenue for the year ended December 31, 2024. Measured by revenues in the C&I segment, 84.5% of services were provided under fixed-price contracts for the year ended December 31, 2025.

During the year ended December 31, 2025, the Company repurchased 639,207 shares of its common stock under repurchase programs at a weighted-average price of $117.33 per share. On July 30, 2025, the Company announced that its Board of Directors had approved a new $75.0 million share repurchase program. As of December 31, 2025, the Company had $75.0 million of funds available to repurchase shares under the Repurchase Program, which expired on February 4, 2026. The Company invested in capital expenditures of approximately $94.4 million during 2025. As of December 31, 2025, the Company had approximately $491.5 million in original face amount of bonds outstanding for projects in its T&D segment and approximately $1.85 billion for projects in its C&I segment. The estimated remaining cost to complete these bonded projects for both segments was approximately $817.8 million as of December 31, 2025.

For the year ended December 31, 2025, total revenues were $3.66 billion compared to $3.36 billion for the year ended December 31, 2024, an increase of $295.6 million , or 8.8% . Net income was $118.4 million for the year ended December 31, 2025, compared to $30.3 million for the year ended December 31, 2024. Gross margin for the year ended December 31, 2025 increased to 11.6% compared to 8.6% for the year ended December 31, 2024. Income from operations was $166.9 million for the year ended December 31, 2025, compared to $54.1 million for the year ended December 31, 2024. EBITDA, a non-GAAP measure, was $232.7 million for the year ended December 31, 2025, compared to $117.8 million for the year ended December 31, 2024. Net cash flows provided by operating activities were $326.6 million for the year ended December 31, 2025, compared to $87.1 million for the year ended December 31, 2024.

Business Outlook

The Company believes that regulatory reform, increased electricity demand, state clean energy portfolio standards, the aging of the electric grid, and potential overall improvement of the economy will positively impact the level of spending by customers in all markets served. The Company believes there is an ongoing need for utilities to sustain investment in their transmission systems to improve reliability, reduce congestion, connect to new power generation sources, and support future load growth. The Company expects to see continued bidding activity on large transmission projects going forward, though the timing of multi-year transmission project awards is difficult to predict due to regulatory requirements and permitting. The Company believes there is a need for further investment by utilities on their distribution systems to properly maintain their systems or meet reliability requirements, and expects to see an increase in distribution market opportunities during 2026. The Company believes the increasing demand for electricity associated with additional power requirements, driven by increased electrification associated with new technologies including the emergence and adoption of artificial intelligence technologies as well as increased power needs connected to the reshoring of manufacturing, will require significant investment by customers in both reporting segments.

The Company believes C&I bidding opportunities remain strong and expects to see continued opportunities in primary markets such as data centers, transportation, health care, manufacturing, clean energy, and warehousing. The Company believes the need for expanding public infrastructure in both the United States and Canada will offer opportunity in the C&I segment for several years. Legislation and regulation that promotes domestic manufacturing could also create opportunity for the C&I segment. The Company expects the long-term growth in its C&I segment to generally track the overall growth of the regions it serves. The Company believes legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand and opportunity in both reporting segments, particularly in connection with electric power infrastructure, expansion of domestic manufacturing, and transportation spending.

The Company continues to manage its increasing operating costs, including increasing insurance, equipment, labor, and material costs. The Company believes that its financial position, positive cash flows, and other operational strengths will enable it to respond to challenges and uncertainties in the markets it serves and give it the flexibility to successfully execute its strategy.

The Company continues to invest in developing key management and craft personnel in both its T&D and C&I segments and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity. In 2025, the Company invested in capital expenditures of approximately $94.4 million , with most of these capital expenditures supporting opportunities in the T&D business. The Company plans to continue to evaluate its needs for additional equipment and tooling to support future growth.

During 2025, the Company repurchased 639,207 shares of its common stock under repurchase programs at a weighted-average price of $117.33 per share. On July 30, 2025, the Company announced that its Board of Directors had approved a new $75.0 million share repurchase program. As of December 31, 2025, the Company had $75.0 million of funds available to repurchase shares under the Repurchase Program, which expired on February 4, 2026. The Company has not historically paid dividends and currently does not expect to pay dividends. The Company believes the borrowing availability under its $490 million revolving credit facility, its cash on hand, and future cash flow from operations will enable it to support the organic growth of its business, pursue acquisitions, and opportunistically repurchase shares.

The Company may experience unanticipated volatility associated with policy changes and tariffs. Prolonged uncertainty in the business environment and higher inflation could also impact customer demand and the Company's profitability. The Company notes that any large, multi-year projects awarded in 2026 will not likely have a large impact on 2026 results because significant construction activity would not occur until 2027 or later.

The Company faces structural headwinds including the cyclical nature of demand for construction and maintenance services, which is vulnerable to downturns in the industries served and the economy in general. The financial condition of customers and their access to capital, variations in project margins, and regional and national economic conditions in the United States and Canada may materially affect results. Project schedules, particularly for larger multi-year projects, can create fluctuations in revenues, and changes in technology, tax incentives, and regulatory requirements can impact demand for services.

Risk Factors

The Company's operating results may vary significantly from period to period due to factors including the timing and volume of work under contract, cost overruns on fixed-price and unit-price contracts, and changes in the demand for services. A significant portion of revenues and profits are generated under fixed-price and unit-price contracts, where actual costs of labor and materials may vary from original estimates, and cost overruns may not be recoverable, potentially resulting in reduced profitability or losses on projects. The Company's backlog, which was $2,824,268,000 as of December 31, 2025, may not be realized or may not result in profits, as it is difficult to determine accurately and can be reduced by cancellation, termination, or scope adjustment by customers. The Company is subject to risks associated with climate change, including physical risks such as an increase in extreme weather events like floods, wildfires, or hurricanes, which could limit resource availability, increase project costs, or cause project delays or cancellations. The Company's insurance has limits and exclusions that may not fully indemnify against certain claims or losses, including claims resulting from wildfires or other natural disasters, and the cost of insurance has significantly increased over time and may continue to increase.

Management Priorities

Management's message in the filing conveys an optimistic tone regarding infrastructure spending, stating that the Company is optimistic about infrastructure spending and believes related investment activity will continue to positively impact both T&D and C&I markets for the foreseeable future. Management emphasizes that the Company has maintained a strong balance sheet while supporting organic growth with capital expenditures and working capital and repurchasing shares. The strategic priorities emphasized for the period ahead include continuing to implement strategies that further expand capabilities and effectively allocate capital, continuing to invest in developing key management and craft personnel in both segments, and continuing to invest in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity. Management also states the Company believes the borrowing availability under its $490 million revolving credit facility, cash on hand, and future cash flow from operations will enable it to support organic growth, pursue acquisitions, and opportunistically repurchase shares.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Customers
  2. [2] Item 1, Business — Customers
  3. [3] Item 1, Business — Customers
  4. [4] Item 1, Business — Customers
  5. [5] Item 1, Business — Types of Service Arrangements and Bidding Process
  6. [6] Item 7, MD&A — Overview-Segments
  7. [7] Item 7, MD&A — Overview-Segments
  8. [8] Item 7, MD&A — Overview-Segments
  9. [9] Item 7, MD&A — Overview-Segments
  10. [10] Item 7, MD&A — Overview-Segments
  11. [11] Item 7, MD&A — Overview-Segments
  12. [12] Item 7, MD&A — Overview-Segments
  13. [13] Item 7, MD&A — Overview-Segments
  14. [14] Item 7, MD&A — Overview-Segments
  15. [15] Item 7, MD&A — Overview-Segments
  16. [16] Item 7, MD&A — Overview-Segments
  17. [17] Item 7, MD&A — Outlook
  18. [18] Item 7, MD&A — Outlook
  19. [19] Item 5, Market for Registrant's Common Equity — Purchases of Common Stock
  20. [20] Item 5, Market for Registrant's Common Equity — Purchases of Common Stock
  21. [21] Item 7, MD&A — Outlook
  22. [22] Item 1, Business — Project Bonding Requirements and Parent Guarantees
  23. [23] Item 1, Business — Project Bonding Requirements and Parent Guarantees
  24. [24] Item 1, Business — Project Bonding Requirements and Parent Guarantees
  25. [25] Item 7, MD&A — Consolidated Results of Operations
  26. [26] Item 7, MD&A — Consolidated Results of Operations
  27. [27] Item 7, MD&A — Consolidated Results of Operations
  28. [28] Item 7, MD&A — Consolidated Results of Operations
  29. [29] Item 7, MD&A — Consolidated Results of Operations
  30. [30] Item 7, MD&A — Consolidated Results of Operations
  31. [31] Item 7, MD&A — Consolidated Results of Operations
  32. [32] Item 7, MD&A — Consolidated Results of Operations
  33. [33] Item 7, MD&A — Consolidated Results of Operations
  34. [34] Item 7, MD&A — Consolidated Results of Operations
  35. [35] Item 7, MD&A — Non-GAAP Measures
  36. [36] Item 7, MD&A — Non-GAAP Measures
  37. [37] Item 7, MD&A — Liquidity, Capital Resources and Material Cash Requirements
  38. [38] Item 7, MD&A — Liquidity, Capital Resources and Material Cash Requirements
  39. [39] Item 7, MD&A — Outlook
  40. [40] Item 7, MD&A — Outlook
  41. [41] Item 7, MD&A — Outlook
  42. [42] Item 5, Market for Registrant's Common Equity — Purchases of Common Stock
  43. [43] Item 5, Market for Registrant's Common Equity — Purchases of Common Stock
  44. [44] Item 7, MD&A — Debt Instruments
  45. [45] Item 1, Business — Backlog
  46. [46] Item 7, MD&A — Debt Instruments
  47. [47] Item 8, Note 16 — Segment Information
  48. [48] Item 8, Note 16 — Segment Information
  49. [49] Item 8, Consolidated Statements of Operations
  50. [50] Item 8, Consolidated Statements of Operations
  51. [51] Item 8, Consolidated Statements of Operations
  52. [52] Item 8, Consolidated Statements of Operations
  53. [53] Item 8, Consolidated Statements of Operations
  54. [54] Item 8, Consolidated Statements of Operations
  55. [55] Item 8, Consolidated Statements of Operations
  56. [56] Item 8, Consolidated Statements of Operations
  57. [57] Item 7, MD&A — Consolidated Results of Operations
  58. [58] Item 7, MD&A — Consolidated Results of Operations
  59. [59] Item 7, MD&A — Consolidated Results of Operations
  60. [60] Item 7, MD&A — Consolidated Results of Operations
  61. [61] Item 7, MD&A — Consolidated Results of Operations
  62. [62] Item 7, MD&A — Consolidated Results of Operations
  63. [63] Item 8, Consolidated Statements of Operations
  64. [64] Item 7, MD&A — Consolidated Results of Operations
  65. [65] Item 8, Consolidated Statements of Operations
  66. [66] Item 7, MD&A — Consolidated Results of Operations
  67. [67] Item 7, MD&A — Segment Results
  68. [68] Item 7, MD&A — Segment Results
  69. [69] Item 7, MD&A — Segment Results
  70. [70] Item 7, MD&A — Segment Results
  71. [71] Item 7, MD&A — Segment Results
  72. [72] Item 7, MD&A — Segment Results
  73. [73] Item 7, MD&A — Segment Results
  74. [74] Item 7, MD&A — Segment Results
  75. [75] Item 8, Consolidated Balance Sheets
  76. [76] Item 8, Note 10 — Debt
  77. [77] Item 8, Note 10 — Debt
  78. [78] Item 8, Note 10 — Debt

Analysis on 6/8/2026