Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has MYR Group (MYRG) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.MYR Group is a member of the Utilities sector. This group includes 107 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank gauges the strength of our 16 indivi ...

Company Overview - MYR Group (MYRG) currently has a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company is rated 1 (Strong Buy) by Zacks Rank, suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, MYRG shares increased by 0.09%, while the Zacks Electric Construction industry rose by 1.55% [6] - In a longer timeframe, MYRG shares have risen by 17.53% over the past quarter and 110.82% over the last year, significantly outperforming the S&P 500, which moved -1.9% and 19.71% respectively [7] Trading Volume - MYRG's average 20-day trading volume is 312,477 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, one earnings estimate for MYRG has increased, raising the consensus estimate from $8.32 to $8.98 for the full year [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10] Conclusion - Given the positive momentum indicators and earnings outlook, MYR Group is positioned as a strong candidate for investment in the near term [12]

Core Insights - MYR Group Inc. (MYRG) is positioned strongly within the utilities sector, which is expected to invest $1.1 trillion in power transmission and distribution from 2025 to 2030, indicating a significant opportunity for long-term growth [1] Company Overview - MYR Group Inc. operates in the utilities sector, focusing on power transmission and distribution, which is set to see substantial investments in the coming years [1] Market Opportunity - The utilities sector's planned investment of $1.1 trillion from 2025 to 2030 highlights a robust market opportunity for companies like MYR Group, suggesting potential for durable growth [1]

Core Viewpoint - MYR Group Inc. will participate in the Cantor Global Technology & Industrial Growth investor conference on March 10, 2026, in New York City, where key executives will meet with institutional investors [1] Company Overview - MYR Group Inc. is a holding company of leading specialty electrical contractors operating in the United States and Canada, divided into two main business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [2] - The T&D segment provides services related to electric transmission, distribution networks, substation facilities, clean energy projects, and electric vehicle charging infrastructure, catering to a diverse clientele including investor-owned utilities and government-funded utilities [2] - The C&I segment offers a wide range of services including design, installation, maintenance, and repair of commercial and industrial wiring for various facilities such as data centers, hospitals, and manufacturing plants, serving general contractors and government agencies [2]

Financial Data and Key Metrics Changes - The company reported record annual revenues of $3.7 billion for the year ended December 31, 2025, with a net income of $118 million and EBITDA of $233 million [8][14] - Fourth quarter revenues were $974 million, representing a 17% increase compared to the same period last year [8] - Fourth quarter net income reached a record $37 million, compared to $16 million for the same period last year, with net income per diluted share of $2.33 [13] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues for the fourth quarter were $531 million, an 18% increase year-over-year, with $330 million from transmission and $201 million from distribution [8][9] - Commercial and Industrial (C&I) revenues reached a record high of $443 million for the fourth quarter, a 17% increase compared to the same period last year, primarily due to fixed-price contracts [9] - Gross margin for the fourth quarter improved to 11.4% from 10.4% year-over-year, driven by better productivity and favorable job closeouts [10][11] Market Data and Key Metrics Changes - The total backlog as of December 31, 2025, was $2.8 billion, a 9.6% increase from the prior year, with $1.0 billion for T&D and $1.8 billion for C&I [14][15] - The company noted strong bidding activity across its business segments, reflecting a healthy bidding environment and ongoing investment in infrastructure [7][18] Company Strategy and Development Direction - The company aims to strategically pursue and execute projects with operational excellence while maintaining a focus on safety and customer relationships [7][23] - There is a commitment to expanding relationships with long-term clients and pursuing new opportunities, particularly in the transmission construction market, which is projected to see significant investment [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the large transmission market and anticipated capturing work that will start to materialize in 2027 [26] - The company expects to maintain a growth rate of approximately 10% across both segments, with a focus on controlled growth and profitability [101][102] Other Important Information - The company reported a significant increase in operating cash flow to $115 million for the fourth quarter, compared to $21 million for the same period last year, attributed to improved billing and payment timing [16] - The effective tax rate for the fourth quarter was 21.2%, a decrease from 40.9% year-over-year, primarily due to changes in state tax rates [13] Q&A Session Summary Question: Thoughts on the large transmission market and potential bookings for 2027 revenue - Management confirmed optimism regarding the large transmission market and ongoing conversations with clients about future projects [26] Question: Insights on cash flow strength and its drivers - Management attributed strong cash flow to lower Days Sales Outstanding (DSOs) and a strong net overbuild position, particularly in fixed-price contracts [27][28] Question: Strength in T&D backlog and specific projects included - Management indicated that the backlog includes limited contributions from new projects like the Kentucky MSA agreement, with a focus on long-term client relationships [33][34] Question: Positioning in Texas and activity levels - Management noted Texas as a strong market with ongoing opportunities, particularly in high-voltage projects [36][37] Question: C&I margins and future operating margin targets - Management expects to operate within the mid-range of their margin targets, with opportunities for margin improvement through efficiency [39][40] Question: Components of backlog increase and project duration - Management explained that larger projects, such as data centers, typically have longer durations, contributing to the backlog increase [45][46] Question: Impact of weather on first-quarter productivity - Management acknowledged that weather can impact productivity but noted that it has not affected business uniformly across the country [48][50] Question: Capital allocation strategy for 2026 - Management emphasized a focus on organic growth and acquisitions, with opportunistic share repurchases [58][59] Question: Ability to accelerate growth given market strength - Management confirmed the capacity to grow while maintaining profitability, focusing on controlled growth [101][102]

Financial Data and Key Metrics Changes - The company reported record annual revenues of $3.7 billion for the year ended December 31, 2025, with a net income of $118 million and EBITDA of $233 million [8] - Fourth quarter revenues were $974 million, representing an increase of $144 million, or 17%, compared to the same period last year [8] - The gross margin for the fourth quarter was 11.4%, up from 10.4% in the same period last year, primarily due to improved productivity and favorable job closeouts [10] - Fourth quarter net income reached a record $37 million, compared to $16 million for the same period last year, with net income per diluted share of $2.33, up from $0.99 [12] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues for the fourth quarter were $531 million, an increase of 18% year-over-year, with $330 million from transmission and $201 million from distribution projects [9] - Commercial and Industrial (C&I) revenues reached a record high of $443 million for the fourth quarter, a 17% increase compared to the same period last year, driven by fixed-price contracts [9] - T&D operating income margin improved to 7.4% from 6.7% year-over-year, while C&I operating income margin increased to 6.6% from 3.9% [10][11] Market Data and Key Metrics Changes - The total backlog as of December 31, 2025, was $2.8 billion, a 9.6% increase from the prior year, with $1.0 billion for T&D and $1.8 billion for C&I [13] - The company noted strong bidding activity across its business segments, reflecting a healthy bidding environment and ongoing investment in infrastructure [7] Company Strategy and Development Direction - The company aims to strategically pursue and execute projects with operational excellence, focusing on long-term client relationships and safety in project execution [7] - The management highlighted the ongoing need for grid modernization and increased capacity to accommodate load growth, positioning the company to benefit from expanding backlogs and long-duration project pipelines [18] - The company is committed to organic growth and acquisitions, with a focus on maintaining a strong balance sheet and leveraging cash flow for future opportunities [16][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the large transmission market, indicating strong conversations with clients and potential bookings for 2027 revenue [25] - The company anticipates continued growth in core markets, driven by investments in electrical infrastructure, with a forecast of 10% growth in both T&D and C&I segments [39][100] - Management acknowledged weather as a significant factor impacting operations, but does not foresee a slowdown in market activity [79] Other Important Information - The company reported a significant increase in operating cash flow to $115 million for the fourth quarter, compared to $21 million for the same period last year, attributed to improved billing and payment timing [15] - The effective tax rate for the fourth quarter was 21.2%, a decrease from 40.9% in the same period last year, due to changes in state tax rates [12] Q&A Session Summary Question: Thoughts on the large transmission market and potential bookings - Management confirmed optimism regarding the large transmission market and ongoing conversations with clients, expecting to capture work starting in 2027 [25] Question: Cash flow strength and its drivers - Management attributed strong cash flow to lower Days Sales Outstanding (DSOs) and a strong net overbuild position, particularly in fixed-price contracts [26] Question: Strength in T&D backlog and specific projects - Management noted that the backlog includes limited contributions from new projects like the Kentucky MSA, with a focus on long-term client relationships [33] Question: Positioning in Texas and capital plans - Management highlighted Texas as a strong market with ongoing opportunities, particularly in high-voltage projects [36] Question: C&I margins and future guidance - Management indicated expectations of operating within the mid-range of margin targets, with good opportunities for margin improvement [39] Question: Backlog components and project duration - Management explained that larger projects, such as data centers, typically have longer durations, impacting backlog composition [44] Question: Weather impacts on operations - Management stated that while weather can affect operations, it has not uniformly impacted business across the country [47] Question: Capital allocation strategy for 2026 - Management emphasized a focus on organic growth and acquisitions, with a strategic approach to capital allocation [58] Question: Risks and opportunities for 2026 - Management identified weather and project timing as key risks, but expressed confidence in market activity and project execution [79]

Financial Data and Key Metrics Changes - For the year ended December 31, 2025, the company achieved record annual revenues of $3.7 billion, with a net income of $118 million and EBITDA of $233 million [6][12] - Fourth quarter 2025 revenues were $974 million, representing an increase of $144 million, or 17%, compared to the same period last year [6][12] - Fourth quarter 2025 net income was a record $37 million, compared to $16 million for the same period last year, with net income per diluted share of $2.33, compared to $0.99 for the same period last year [12][13] - Fourth quarter 2025 EBITDA was a record $64 million, compared to $45 million for the same period last year [12][13] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues for the fourth quarter were $531 million, an increase of 18% compared to the same period last year, with $330 million from transmission and $201 million from distribution [7][8] - Commercial and Industrial (C&I) revenues reached $443 million, a record high for the segment, and an increase of 17% compared to the same period last year, primarily due to fixed-price contracts [8] - The gross margin for the fourth quarter was 11.4%, up from 10.4% for the same period last year, driven by better productivity and favorable job closeouts [9][10] Market Data and Key Metrics Changes - The total backlog as of December 31, 2025, was $2.8 billion, a 9.6% increase from the prior year, with $1.0 billion for the T&D segment and $1.8 billion for the C&I segment [13] - The company noted a healthy bidding environment and strong activity across its business segments, with ongoing investments in infrastructure to meet electrification needs in the U.S. and Canada [5][18] Company Strategy and Development Direction - The company aims to maintain and expand long-term customer relationships while strategically pursuing new opportunities in a growing market [22][23] - The focus remains on safely executing projects and supporting customers in an evolving energy environment, with a commitment to operational excellence [22][23] - The company is well-positioned to benefit from expanding backlogs and long-duration project pipelines, particularly in the T&D segment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the large transmission market and anticipated capturing work that will start to materialize in 2027 [26] - The company expects continued growth in core markets, driven by investments in electrical infrastructure, with a forecast of 10% growth in both segments for the upcoming year [39][100] - Management highlighted that weather remains a significant factor affecting operations, but they do not foresee a slowdown in market activity [77] Other Important Information - The company reported a strong liquidity position with approximately $265 million in working capital and a funded debt to EBITDA leverage ratio of 0.25x as of December 31, 2025 [15] - The company is focused on organic growth and acquisitions, with a strategic approach to capital allocation [57][94] Q&A Session Summary Question: Thoughts on the large transmission market and potential bookings - Management confirmed optimism regarding late 2026 potential bookings for 2027 revenue, indicating ongoing conversations with clients [26] Question: Cash flow strength and its drivers - Management attributed strong cash flow to lower Days Sales Outstanding (DSOs) and a strong net overbuild position, particularly in fixed-price contracts [27] Question: Strength in T&D backlog and specific projects - Management noted that the backlog increase was not significantly impacted by new projects like the Kentucky MSA agreement, as much of the work will start later [34] Question: Impact of large transmission projects on margin profile - Management indicated that large transmission projects could lead to marginal margin increases through better equipment utilization and efficiency [62] Question: Capital allocation strategy for 2026 - Management emphasized prioritizing organic growth and acquisitions while opportunistically considering share repurchases [57] Question: Weather impacts on first quarter productivity - Management stated that while weather can affect operations, it has not uniformly impacted business across the country [48]

Core Insights - MYR Group Inc. reported strong financial results for the fourth quarter and full year of 2025, with annual revenues reaching $3.66 billion, a 8.8% increase from 2024 [2][13]. Fourth Quarter 2025 Highlights - Fourth quarter revenues were $973.5 million, up $143.7 million or 17.3% compared to Q4 2024 [3]. - Net income for the fourth quarter was $36.5 million, a 129.1% increase from $16.0 million in Q4 2024, translating to $2.33 per diluted share [12][7]. - The consolidated gross profit for Q4 2025 was $111.3 million, compared to $85.9 million in Q4 2024, with a gross margin increase to 11.4% from 10.4% [4]. - The backlog at the end of Q4 2025 was $2.82 billion, reflecting a 9.6% increase from $2.58 billion at the end of Q4 2024 [22]. Full Year 2025 Highlights - Full year revenues were $3.66 billion, an increase of $295.6 million from $3.36 billion in 2024 [13]. - Full year net income was $118.4 million, or $7.53 per diluted share, compared to $30.3 million, or $1.83 per diluted share, in 2024 [21]. - The consolidated gross profit for the full year was $423.8 million, up from $290.3 million in 2024, with a gross margin increase to 11.6% from 8.6% [14]. - The T&D segment reported revenues of $2.00 billion, an increase of $121.9 million from 2024, while the C&I segment reported revenues of $1.66 billion, an increase of $173.6 million [13]. Management Comments - The President and CEO of MYR Group expressed confidence in the company's performance, citing increased electrification demand and ongoing investment in electrical infrastructure as key drivers for future success [2]. Operating Income Margins - The T&D operating income margin for Q4 2025 was 7.4%, up from 6.7% in Q4 2024, while the C&I operating income margin increased to 6.6% from 3.9% in the same period [5][6]. - For the full year, T&D operating income margin was 7.9%, compared to 3.7% in 2024, and C&I operating income margin was 5.9%, up from 3.2% [15][16]. Expenses and Interest - Selling, general and administrative expenses increased to $64.6 million in Q4 2025 from $56.7 million in Q4 2024, primarily due to higher employee compensation costs [8]. - Interest expense decreased to $0.9 million in Q4 2025 from $2.2 million in Q4 2024, attributed to lower interest rates and reduced debt levels [9]. Tax Expenses - The effective tax rate for Q4 2025 was 21.2%, down from 40.9% in Q4 2024, due to changes in state tax rates and lower permanent difference items [11]. Balance Sheet - As of December 31, 2025, MYR had total assets of $1.64 billion and total shareholders' equity of $660.4 million [39]. - The company had $408.3 million of borrowing availability under its revolving credit facility and $150.2 million in cash and cash equivalents [23].

Customer Concentration - For the years ended December 31, 2025, 2024, and 2023, the top 10 customers accounted for 38.0%, 37.8%, and 37.9% of total revenues, respectively, with no single customer exceeding 10.0% of annual revenues [25]. Revenue Breakdown - Revenues from T&D customers represented 54.7%, 55.9%, and 57.3% of total revenues for the years ended December 31, 2025, 2024, and 2023, while C&I customers accounted for 45.3%, 44.1%, and 42.7% [26]. - Fixed-price contracts constituted 57.0% of total revenue for the year ended December 31, 2025, including 34.3% from the T&D segment and 84.5% from the C&I segment [28]. Backlog Information - As of December 31, 2025, the total backlog is estimated at $2,576,418, with $2,824,268 expected to be recognized within the next 12 months [45]. - The backlog for T&D is $1,018,116 recognized within 12 months and $951,413 recognized after 12 months [45]. - The backlog for C&I is $1,806,152 recognized within 12 months and $1,486,352 recognized after 12 months [45]. - The company’s backlog includes projects with a written award, letter of intent, or notice to proceed, but may not accurately represent future revenue due to the nature of contract durations and cancellations [44]. Employee Information - Approximately 9,000 employees were reported as of December 31, 2025, with 7,200 being craft employees [57]. - 85% of craft employees are union members, primarily represented by the International Brotherhood of Electrical Workers (IBEW) [57]. Competitive Landscape - The competitive landscape is characterized by price sensitivity, safety performance, and technical expertise, with the company believing it holds a favorable competitive position due to its financial strength and customer relationships [36][39]. - The company’s T&D segment faces competition from various local and national firms, with barriers to entry including equipment costs and the availability of qualified labor [38]. - The company differentiates itself in the C&I segment by pursuing larger and more technically complex projects, leveraging its operational history and local market share [41]. Contractual Provisions - The company’s contracts often include retention provisions of up to 10%, which are withheld from progress payments until contract completion and approval [32]. Financial Instruments and Borrowings - As of December 31, 2025, the company had $47.4 million in borrowings under its Facility [250]. - A permanent increase of 1% in market interest rates on revolving debt would decrease future income before provision for income taxes and cash flows by approximately $0.5 million annually [250]. - A permanent decrease of 1% in market interest rates on revolving debt would increase future income before provision for income taxes and cash flows by approximately $0.5 million annually [250]. - Borrowings under the Equipment Notes are at fixed rates established on the date the note was executed [251]. Compliance and Regulations - The company is subject to various environmental laws and regulations, but believes it is in substantial compliance [52]. - The company does not expect continued compliance with regulations to materially affect capital expenditures or earnings [49]. Operational Management - The company has a centralized fleet management group to optimize equipment utilization and reduce costs [48]. - The company operates under various trade names in the U.S. and Canada, but does not rely on any single trade name for material business operations [46].

Financial Performance - MYR Group reported fourth-quarter 2025 revenues of $973.5 million, a 17.3% increase from the fourth quarter of 2024[3]. - Fourth-quarter net income reached $36.5 million, representing a 129.1% increase compared to the same period in 2024, with earnings per diluted share of $2.33[12]. - Full-year 2025 revenues totaled $3.66 billion, an increase of $295.6 million from $3.36 billion in 2024[13]. - The consolidated gross profit for the fourth quarter of 2025 was $111.3 million, up from $85.9 million in the fourth quarter of 2024, with a gross margin increase to 11.4%[4]. - Full-year 2025 EBITDA was $232.7 million, compared to $117.8 million for the full year of 2024[21]. - Contract revenues for the year ended December 31, 2025, increased to $3,657,889, up 8.8% from $3,362,290 in 2024[33]. - Gross profit for the year ended December 31, 2025, was $423,786, representing a significant increase of 46% compared to $290,319 in 2024[33]. - Net income for the year ended December 31, 2025, reached $118,416, a substantial increase of 290% from $30,263 in 2024[33]. - Contract revenues for Q4 2025 reached $973,544, a 17.4% increase from $829,795 in Q4 2024[39]. - Gross profit for Q4 2025 was $111,282, up 29.5% from $85,945 in Q4 2024[39]. - Net income for the full year 2025 was $118,416, representing a 290.5% increase compared to $30,263 in 2024[39]. - EBITDA for Q4 2025 was $64,226, a 41.2% increase from $45,491 in Q4 2024[41]. - Free cash flow for the full year 2025 was $232,195, significantly up from $11,177 in 2024[41]. Assets and Liabilities - Total assets as of December 31, 2025, were $1,644,079, up 10.4% from $1,488,804 in 2024[31]. - Total current assets increased to $1,060,761 as of December 31, 2025, compared to $929,407 in 2024, reflecting a growth of 14.1%[31]. - Cash and cash equivalents surged to $150,156 as of December 31, 2025, compared to $3,464 in 2024, indicating a significant increase[31]. - Total liabilities rose to $983,656 as of December 31, 2025, from $888,444 in 2024, marking an increase of 10.7%[31]. - Total shareholders' equity increased to $660,423 in 2025 from $600,360 in 2024[44]. Expenses and Taxation - SG&A expenses increased to $256.4 million for the full year of 2025, primarily due to higher employee compensation costs[17]. - Interest expense decreased to $5.6 million for the full year of 2025, down from $6.5 million in 2024, attributed to lower interest rates[18]. - The effective tax rate for the fourth quarter of 2025 was 21.2%, a significant decrease from 40.9% in the fourth quarter of 2024[11]. - The effective tax rate decreased to 21.2% in Q4 2025 from 40.9% in Q4 2024[39]. Shareholder Returns - The company reported a basic income per share of $7.57 for the year ended December 31, 2025, compared to $1.84 in 2024, reflecting a growth of 311%[33]. - The company repurchased $75,000 in common stock during the year, maintaining a focus on shareholder returns[36]. Ratios and Performance Metrics - The funded debt to equity ratio remained stable at 0.1 for both 2025 and 2024[41]. - Return on equity improved to 19.7% in 2025 from 4.6% in 2024[41]. - Funded debt includes borrowings under the revolving credit facility and outstanding balances of equipment notes[1]. - EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, and is used to evaluate operating performance[3]. - Free cash flow is defined as cash flow from operating activities minus cash flow used in purchasing property and equipment, viewed as a measure of operational performance and liquidity[6]. - Book value per period end share is calculated by dividing total shareholders' equity at the end of the period by the period end shares outstanding[7]. - Tangible book value is calculated by subtracting goodwill and intangible assets from shareholders' equity at the end of the period[8]. - The funded debt to equity ratio is calculated by dividing total funded debt at the end of the period by total shareholders' equity[10]. - Asset turnover is calculated by dividing current period revenue by total assets at the beginning of the period[11]. - Return on assets is calculated by dividing net income for the period by total assets at the beginning of the period[12]. - Return on equity is calculated by dividing net income for the period by total shareholders' equity at the beginning of the period[13]. - Average invested capital is calculated by adding net funded debt to total shareholders' equity and averaging the beginning and ending of each period[16].