Key Takeaways MYRG is set to report Q2 results on July 30, with EPS expected to surge 271.4% year over year.Strong demand in clean energy, data centers and infrastructure is likely to have boosted Q2 performance.MYRG's expansion in core markets and shifting energy trends are expected to have supported earnings.MYR Group Inc. (MYRG) is scheduled to release second-quarter 2025 results on July 30, after market close. The company delivered an earnings surprise of 17.89% in the last reported quarter. Let us disc ...

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 [4] - The company operates through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [4] - MYR Group's T&D segment provides services on electric transmission, distribution networks, substation facilities, clean energy projects, and electric vehicle charging infrastructure [4] - The C&I segment offers a broad range of services including design, installation, maintenance, and repair of commercial and industrial wiring for various facilities [4] Upcoming Financial Results - MYR Group will release its second quarter 2025 results on July 30, 2025, after market close [1] - A conference call and simultaneous webcast to discuss the results is scheduled for July 31, 2025, at 8 a.m. Mountain Time [1] Participation Information - Participants can join the conference call via telephone by registering in advance [2] - An audio-only webcast of the conference call will be accessible from the Investors page of MYR Group's website, with a replay available for seven days [3]

Core Points - MYR Group Inc. has signed a five-year Design-Build Electric Distribution Master Service Agreement (MSA) with Xcel Energy, expected to exceed $500 million in value over the contract period [1][2] - The MSA encompasses a range of services including permitting, right of way, public outreach, design, and construction across multiple states [1] - This agreement strengthens MYR Group's long-standing relationship with Xcel Energy and positions the company to support critical initiatives such as wildfire mitigation and infrastructure modernization [2] Company Overview - MYR Group Inc. operates as a holding company for specialty electrical contractors in the U.S. and Canada, divided into two segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [3] - The T&D segment provides services related to electric transmission, distribution networks, substations, clean energy projects, and electric vehicle charging infrastructure [3] - The C&I segment offers a wide range of services including design, installation, maintenance, and repair of commercial and industrial wiring for various facilities [3]

Financial Performance - MYR Group achieved record revenue of $3.64 billion in 2023, a 21% increase from $3.01 billion in 2022[14, 15] - The company's net income for the full year 2023 was $91 million, or $5.40 per diluted share, also a record high[19, 65] - MYR Group's EBITDA for 2023 reached $188.2 million, another record high[19, 65] - The company's backlog stood at $2.51 billion[62] Segment Performance - Transmission & Distribution (T&D) revenue reached a record $2.09 billion in 2023[21, 23] - Commercial & Industrial (C&I) revenue also hit a record of $1.55 billion in 2023[31, 34] - T&D segment backlog was $960 million as of December 31, 2023[23] - C&I segment backlog was $1.55 billion as of December 31, 2023[34] Market Outlook - Investor-owned electric companies plan to invest approximately $121 billion in transmission construction between 2023 and 2026[26] - The Infrastructure Investment and Jobs Act (IIJA) includes $73 billion for the electric grid and energy infrastructure[29] - Combined federal spending planned for energy between the IIJA and Inflation Reduction Act (IRA) is over $300 billion over the next 5-10 years[29]

Financial Performance - MYR Group's total revenue for 2024 was $336 billion[72] - The Transmission & Distribution (T&D) segment contributed $188 billion to the total revenue in 2024[72] - The Commercial & Industrial (C&I) segment generated $148 billion in revenue for 2024[72] - The company's backlog stood at $258 billion[70] - Net income for the full year 2024 was $303 million, resulting in earnings per diluted share of $183[73] - EBITDA for 2024 reached $1178 million[73] Growth and Market Outlook - The T&D segment experienced a revenue Compound Annual Growth Rate (CAGR) of 106%[24] - The C&I segment saw a revenue CAGR of 96%[35] - Investor-owned utilities (IOUs) plan to invest approximately $158 billion on transmission construction between 2024 and 2027[30] - The Dodge Momentum Index grew 56% in January, reaching 2257 (2000=100), driven by diversified growth in nonresidential planning[43]

Market Overview - Wall Street experienced a strong end to June, with the stock market reaching new all-time highs, driven by optimism over a potential cease-fire deal in the Middle East and a historic rebound from early April lows [1] - The Nasdaq index surged over 33% since April 8, largely fueled by significant gains from Nvidia and other growth stocks linked to the artificial intelligence (AI) sector [1] Company Insights: Vertiv (VRT) - Vertiv's stock has increased by 1,445% over the past three years, outperforming Nvidia's 990% growth, positioning it as a key player in the AI spending boom [3] - The company focuses on digital infrastructure, providing hardware, software, analytics, and services for power, cooling, and IT infrastructure across various environments, including AI data centers [5] - Vertiv has averaged 16% revenue growth over the past four years and is projected to grow its revenue by 19% in 2025, reaching $10.87 billion, which is double its 2021 total [6][9] - The company expects adjusted earnings growth of 60% in 2024 and 236% in 2023, with a 25% increase projected for 2025 [9] - Vertiv trades at a 30% discount to its highs, with a strong long-term earnings growth outlook, earning a Zacks Rank 2 (Buy) [11][10] Company Insights: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is recognized as a leading tech investment, holding a 60% share of the foundry market and 90% of advanced chip manufacturing, with significant clients including Apple and Nvidia [12][14] - The company is expanding its manufacturing footprint outside Taiwan to mitigate geopolitical risks and is increasing its production of 3-nanometer chips, which accounted for 22% of total wafer revenue in Q1 2025 [18][19] - TSMC is projected to grow its revenue by 29% in FY25 and 17% in FY26, reaching $137 billion by 2026, with adjusted earnings growth of 32% in FY25 [20] - The stock trades at an 18% discount to the tech sector average, despite its recent rally [21] Company Insights: MYR Group Inc. (MYRG) - MYR Group specializes in building and maintaining electrical infrastructure, poised to benefit from the increasing demand for energy and electrification infrastructure due to AI [24][25] - The company’s backlog increased by 8% year-over-year in Q1 to $2.43 billion, with projected revenue growth of 3% in 2025 and 6% in 2026 [30][31] - MYRG is expected to see a significant earnings rebound, with a projected growth of 260% in 2025, reaching $7.48 per share [31] - The stock has increased by 960% over the past 15 years, significantly outperforming the Utilities sector and the S&P 500 [32]

Group 1 - Cemig (CIG) is part of the Utilities group, which consists of 109 companies and currently ranks 2 within the Zacks Sector Rank [2] - Cemig has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook as the consensus estimate for full-year earnings has increased by 5% over the past 90 days [3] - Year-to-date, Cemig has returned approximately 10.7%, outperforming the average return of 8.6% for Utilities companies [4] Group 2 - Cemig belongs to the Utility - Electric Power industry, which includes 60 stocks and is currently ranked 79 in the Zacks Industry Rank [5] - The Utility - Electric Power industry has gained about 8.6% year-to-date, indicating that Cemig is performing better than its peers in this specific group [5] - Another outperforming stock in the Utilities sector is MYR Group (MYRG), which has returned 22% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][6]

Group 1 - MYR Group Inc. (MYRG) is experiencing significant activity in the options market, particularly with the July 18, 2025 $150.00 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - MYR Group holds a Zacks Rank 1 (Strong Buy) in the Electric Construction industry, which is in the top 1% of the Zacks Industry Rank, although recent earnings estimates have slightly decreased from $1.58 to $1.56 per share [3] Group 2 - The high implied volatility for MYR Group may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Core Viewpoint - MYR Group (MYRG) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - For the fiscal year ending December 2025, MYR is expected to earn $6.59 per share, reflecting a substantial increase of 260.1% from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for MYR has risen by 17.2%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - MYR's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Group 1: Stocks with Increased Earnings Estimates - E.W. Scripps Company (SSP) has seen a 14.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - MYR Group Inc. (MYRG) has experienced a nearly 6% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Swedbank AB (publ) (SWDBY) has had a 9.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Postal Realty Trust, Inc. (PSTL) has seen a 5.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Peakstone Realty Trust (PKST) has experienced a 14.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]