Company Overview - MYR Group Inc. is a holding company of leading specialty electrical contractors serving the electric utility infrastructure, commercial, and industrial construction markets in the United States and Canada [2] - The company operates through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [2] - MYR Group subsidiaries have the expertise to complete electrical installations of any type and size [2] Transmission & Distribution (T&D) Segment - The T&D segment provides services on electric transmission, distribution networks, substation facilities, clean energy projects, and electric vehicle charging infrastructure [2] - Comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance, and repair services [2] - T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors [2] Commercial & Industrial (C&I) Segment - The C&I segment offers a broad range of services including design, installation, maintenance, and repair of commercial and industrial wiring [2] - C&I services are generally provided for airports, hospitals, data centers, 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 [2] - C&I customers include general contractors, commercial and industrial facility owners, government agencies, and developers [2] Upcoming Events - MYR Group will participate in the Oppenheimer Annual Industrial Growth investor conference on May 6, 2025, where the CEO and CFO will meet with institutional investors [1]

MYR Group Inc. (NASDAQ: MYRG ) exited FY24 with a -7.73% year-over-year decline at the top line as a result of challenges posed by multiple renewable energy projects that came to mechanical completion inMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, a ...

Financial Data and Key Metrics Changes - Fourth quarter 2024 revenues were $830 million, a decrease of $174 million or 17% compared to the same period last year, primarily due to clean energy projects reaching mechanical completion and a decrease in revenue on C&I fixed price contracts [16][18] - Gross margin increased to 10.4% from 9.7% year-over-year, driven by higher margins on completed projects and better-than-anticipated productivity [19][20] - Net income for the fourth quarter was $16 million, down from $24 million year-over-year, with diluted earnings per share at $0.99 compared to $1.43 [27][28] - Operating cash flow decreased to $21 million from $43 million year-over-year, while free cash flow was $9 million compared to $22 million [28][29] Business Line Data and Key Metrics Changes - T&D revenues were $450 million, a decrease of 24% year-over-year, with $267 million from transmission and $183 million from distribution [17] - C&I revenues were $380 million, an 8% decrease year-over-year, primarily due to lower revenue on fixed price contracts [18] - T&D operating income margin was 6.7%, down from 7.2% year-over-year, impacted by losses on clean energy projects [21][22] - C&I operating income margin improved to 3.9% from 2.1% year-over-year, benefiting from higher margins on completed projects [23][24] Market Data and Key Metrics Changes - Total backlog as of December 31, 2024, was $2.6 billion, a 2.5% increase from the prior year, with $818 million in T&D and $1.8 billion in C&I [28] - The 2025 North American electric transmission market forecast indicates over 170 hyperscale and colocation data centers planned, requiring more than 45 gigawatts of capacity [13][14] - Aggregate energy utility investments are projected to reach $202 billion in 2025, increasing to $211 billion by 2027 [34] Company Strategy and Development Direction - The company aims to expand relationships through multiyear master service agreements and pursue new partnerships to meet growing electricity demand [11][12] - Focus on core markets such as data centers, transportation, pharmaceuticals, healthcare, and clean energy, with a commitment to reliable power delivery [13][14] - The company plans to maintain a strong balance sheet and leverage future cash flow for organic growth, acquisitions, and share repurchases [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth forecast for the markets served, citing a steady pipeline of project opportunities and the importance of collaboration with customers [44][45] - The company is selective in pursuing clean energy projects, focusing on profitability and project execution [67] - Management anticipates stronger free cash flow generation in 2025, driven by increased profitability and reduced pending change orders [61][63] Other Important Information - Fourth quarter effective tax rate was 40.9%, up from 32.3% year-over-year, primarily due to higher permanent difference items [26] - The board authorized a new $75 million share repurchase program, expiring on September 5, 2025, or when funds are exhausted [30] Q&A Session Summary Question: Can you discuss the bidding environment in C&I and the impact of potential tariffs? - Management noted activity across all markets, particularly in data centers and hospitals, with tariffs being a common discussion point in new contracts [49][50] Question: What factors contributed to lower revenue in fixed price contracts? - Management indicated it was a mix of project types coming in during the quarter, not a long-term trend, with an increase in T&E contracts observed [51][52] Question: What is the outlook for free cash flow in 2025? - Management expects stronger free cash flow in 2025, driven by increased profitability and reduced pending change orders [61][63] Question: How much revenue contribution came from clean energy projects in T&D? - Clean energy projects contributed about 4% for the quarter and 10% year-to-date [65] Question: How does the new administration's focus on oil and gas affect the business? - Management stated that regardless of the energy source, the company remains focused on delivering lines and substations, with no significant shifts in utility discussions noted [81][83] Question: What is the status of discussions regarding prior challenging projects? - Conversations are ongoing, with some settled and others still in discussion, but management feels covered regarding reported impacts [90][92]

Core Insights - MYR Group (MYRG) reported quarterly earnings of $0.99 per share, significantly exceeding the Zacks Consensus Estimate of $0.30 per share, but down from $1.43 per share a year ago, representing an earnings surprise of 230% [1] - The company posted revenues of $829.8 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 5.96%, and down from $1 billion year-over-year [2] - MYR shares have declined approximately 18.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $811.3 million, and for the current fiscal year, it is $5.57 on revenues of $3.47 billion [7] - The estimate revisions trend for MYR is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Electric Construction industry, to which MYR belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Revenue and Customer Concentration - For the years ended December 31, 2024, 2023, and 2022, the top 10 customers accounted for 37.8%, 37.9%, and 35.4% of total revenues, respectively, with no single customer exceeding 10% of annual revenues[27]. - Revenues from T&D customers represented 55.9%, 57.3%, and 58.0% of total revenues for the years ended December 31, 2024, 2023, and 2022, while C&I customers accounted for 44.1%, 42.7%, and 42.0%[28]. - The Company’s top ten customers accounted for approximately 37.8% of consolidated revenues in 2024, compared to 37.9% in 2023 and 35.4% in 2022[322]. Financial Performance - Contract revenues for 2024 were $3,362,290, a decrease of 7.7% from $3,643,905 in 2023[276]. - Gross profit for 2024 was $290,319, down 20.3% from $364,397 in 2023[276]. - Net income for 2024 was $30,263, a decline of 66.7% compared to $90,990 in 2023[276]. - Total current assets decreased slightly to $1,014,662 in 2024 from $1,026,244 in 2023[273]. - Total liabilities increased to $973,699 in 2024, up from $927,544 in 2023, reflecting a rise of 5%[273]. - Retained earnings decreased to $453,717 in 2024 from $492,529 in 2023, a decline of 7.9%[273]. - The company reported a basic income per share of $1.84 for 2024, down from $5.45 in 2023[276]. - The company experienced a foreign currency translation adjustment loss of $8,771 in 2024, compared to a gain of $2,420 in 2023[276]. - Total shareholders' equity decreased to $600,360 in 2024 from $651,202 in 2023, a decline of 7.8%[273]. - Net cash flows provided by operating activities increased to $87,115,000 in 2024 from $71,016,000 in 2023, representing a growth of 22.7%[281]. - Total revenues from joint ventures were $22.4 million in 2024, down from $33.0 million in 2023, indicating a decline of 32.0%[293]. Backlog and Future Revenue - As of December 31, 2024, the total backlog is estimated at $2,576,418, with $2,080,323 expected to be recognized within the next 12 months[47]. - The backlog includes a proportionate share of unconsolidated joint venture backlog totaling $172.3 million as of December 31, 2024[47]. - The company reported $2.34 billion in remaining performance obligations as of December 31, 2024, indicating a strong pipeline of future work[372]. - Total remaining performance obligations as of December 31, 2024, amount to $2,338,961,000, with approximately 80% expected to be recognized within twelve months[374]. Debt and Financing - As of December 31, 2024, the company had $58.4 million in borrowings under its Facility, which are subject to variable interest rates[248]. - The company entered a $490 million revolving credit facility on May 31, 2023, with a maturity date of May 31, 2028, allowing for additional commitments of up to $200 million[359]. - The weighted average interest rate on borrowings under the credit facility was 6.63% for the year ended December 31, 2024, down from 7.07% in 2023[360]. - The company's total debt increased significantly from $36.241 million in 2023 to $74.381 million in 2024, with long-term debt rising from $29.188 million to $70.018 million[358]. Operational and Workforce Insights - The company employs approximately 8,500 individuals, including 6,800 craft employees, with 87% of craft employees being union members[58]. - The company has developed key recruitment and retention strategies to attract and retain a diverse workforce, emphasizing safety and competitive compensation[57]. - Approximately 87% of the Company's craft labor employees were covered by collective bargaining agreements as of December 31, 2024[324]. Regulatory and Compliance - The company believes it is in substantial compliance with environmental laws and regulations, which should not materially affect financial conditions[53]. - The company is subject to various laws and regulations, including those related to worker safety and environmental protection, which may require increased operating costs[51]. - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's report[261]. Changes in Estimates and Accounting - The company recognizes revenue on fixed price construction projects using the cost-to-cost method, which involves significant estimates[269]. - Auditing management's estimates of variable consideration for change orders and claims was identified as a critical audit matter due to the complexity and judgment involved[270]. - The company evaluates change orders and claims based on historical experience and individual assessments, which require significant judgment[269]. - During the year ended December 31, 2024, changes in estimates decreased consolidated gross margin by 4.4%, resulting in decreases in operating income of $146.5 million and net income of $96.9 million[299]. - For the year ended December 31, 2023, changes in estimates decreased consolidated gross margin by 1.7%, leading to decreases in operating income of $62.2 million and net income of $43.6 million[299]. Stock-Based Compensation and Employee Benefits - The company recognized stock-based compensation expense of approximately $8.5 million, $8.4 million, and $7.9 million for the years ended December 31, 2024, 2023, and 2022, respectively[403]. - Total contributions to defined contribution plans amounted to $12.4 million, $15.9 million, and $15.7 million for the years ended December 31, 2024, 2023, and 2022, respectively[404]. - The intrinsic value of time-vested stock awards at the time of vesting was $6.8 million, $7.3 million, and $7.0 million for the years ended December 31, 2024, 2023, and 2022, respectively[396]. - The intrinsic value of performance awards at the time of vesting was $3.2 million, $12.0 million, and $15.7 million for the years ended December 31, 2024, 2023, and 2022, respectively[400].

Board Approves New $75 Million Share Repurchase ProgramTHORNTON, Colo., Feb. 26, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. (“MYR” or the "Company") (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced today its fourth quarter and full year 2024 financial results, and a new share repurchase program (“Repurchase Program”). Fourth Quarter 2024 Highlights Quarterly r ...

MYR Group Inc. Announces Fourth-Quarter and Full Year 2024 Results Board Approves New $75 Million Share Repurchase Program Exhibit 99.1 Thornton, Colo., February 26, 2025 – MYR Group Inc. ("MYR" or the "Company") (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced today its fourth-quarter and full year 2024 financial results, and a new share repurchase program ...

THORNTON, Colo., Feb. 19, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. ("MYR Group") (NASDAQ:MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced it will participate in the Sidoti Small-Cap virtual investor conference. MYR Group's Chief Executive Officer, Rick Swartz, and Chief Financial Officer, Kelly Huntington, will virtually meet with institutional investors during the S ...

THORNTON, Colo., Feb. 12, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. ("MYR Group") (NASDAQ:MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced it will release its fourth quarter and full year 2024 results on Wednesday, Feb. 26, 2025, after the market closes. In conjunction with the release, MYR Group has scheduled a conference call and simultaneous webcast to discuss resu ...

THORNTON, Colo., Feb. 11, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. (“MYR Group”) (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced it will attend the Cantor Global Technology Conference. MYR Group’s Chief Executive Officer, Rick Swartz, and Chief Financial Officer, Kelly Huntington, will meet with institutional investors during the inaugural Global Technology ...