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 [1] - The company operates through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [1] Business Segments - The T&D segment provides services on electric transmission, distribution networks, substation facilities, clean energy projects, and electric vehicle charging infrastructure [1] - Comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance, and repair services [1] - C&I segment offers a broad range of services including design, installation, maintenance, and repair of commercial and industrial wiring for various facilities such as data centers, airports, hospitals, and clean energy projects [1] Recent Events - MYR Group will participate in the KeyBanc Taking Charge: Energy Transition Symposium investor conference on September 18, 2025 [1] - The CEO Rick Swartz and CFO Kelly Huntington will meet with institutional investors during this virtual event [1]

Company Performance - MYR Group (MYRG) has gained approximately 26% year-to-date, outperforming the Utilities sector, which has returned an average of 12.8% [4] - The Zacks Consensus Estimate for MYRG's full-year earnings has increased by 5.8% in the past quarter, indicating improved analyst sentiment and earnings outlook [3] - MYR Group holds a Zacks Rank of 2 (Buy), reflecting its potential to beat the market in the near term [3] Industry Context - MYR Group is part of the Electric Construction industry, which currently ranks 1 in the Zacks Industry Rank, with an average year-to-date gain of 26% [5] - The Utilities sector includes 108 individual stocks and has a Zacks Sector Rank of 3, indicating a relatively strong performance compared to other sectors [2] - Another stock in the Utilities sector, Telenor ASA (TELNY), has shown a year-to-date return of 42.1%, highlighting the competitive landscape within the sector [4][6]

Financial Data and Key Metrics Changes - The company's second quarter 2025 revenues were $900 million, an increase of $71 million or 8.6% compared to the same period last year [10] - Net income for the second quarter was $27 million compared to a net loss of $15 million for the same period last year [14] - EBITDA for the second quarter was $56 million compared to negative $5 million for the same period last year [14] - Operating cash flow was $33 million compared to $23 million for the same period last year [15] - Free cash flow was $12 million compared to $3 million for the same period last year [15] - Total backlog as of June 30, 2025, was $2.64 billion, 4% higher than a year ago [14] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues were $506 million, an increase of 10% compared to the same period last year, with $305 million from transmission and $201 million from distribution [10] - Commercial and Industrial (C&I) revenues were $394 million, an increase of 6% compared to the same period last year [11] - T&D operating income margin was 8% for 2025 compared to an operating loss margin of 1.8% for the same period last year [12] - C&I operating income margin was 5.6% for 2025 compared to 0.4% for the same period last year [12] Market Data and Key Metrics Changes - The demand for electricity continues to drive healthy bidding activity across both business segments [8] - A Deloitte report forecasts $1.4 trillion of capital investments in the U.S. power sector from 2025 to 2030, with power demand expected to increase by 10% to 17% from 2024 levels [18][19] - Non-residential construction spending in the U.S. increased by 3.9% from February 2024 to February 2025 [22] Company Strategy and Development Direction - The company emphasizes grid modernization and hardening as strong market drivers [9] - The focus remains on collaborating closely with customers and delivering safe, quality, and consistent results [9] - The company is strategically pursuing new opportunities while maintaining strong customer relationships [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing success of chosen markets due to increased electrification and investments in electrical infrastructure [9] - The company remains proactive and disciplined in adapting to market conditions and responding to industry changes [26] - Management highlighted the importance of investing in teams to drive value for customers and communities [26] Other Important Information - The company authorized a new $75 million share repurchase program, replacing the prior program [16] - The funded debt to EBITDA leverage ratio was 0.46x as of June 30, 2025 [16] Q&A Session Summary Question: Clarification on the new MSA with Xcel Energy - Management confirmed that the MSA is new scope and additional to existing agreements [29][30] Question: Inquiry about C&I backlog and its sequential decline - Management explained that the backlog is typically lumpy and reflects the normal progression of work [31][32] Question: Discussion on business footprint expansion and future MSA announcements - Management indicated that they are always looking for MSA opportunities while also pursuing other project types [36] Question: Update on solar market contributions to revenue - Management noted that solar work has declined to 4% of T&D revenues, with ongoing selective engagement in solar projects [49] Question: Capital allocation outlook regarding M&A versus buybacks - Management stated they are looking for the right acquisition opportunities while also considering stock buybacks [52][53] Question: Inquiry about investment spending in response to demand - Management confirmed they are monitoring capital expenditures but do not anticipate a significant increase [59] Question: Impact of tariffs and supply chain on project timelines - Management reported that while clients are issuing early notices to proceed, they have not seen significant project delays [60] Question: Update on growth expectations for T&D - Management maintained expectations for high single-digit growth in T&D for the year, excluding certain headwinds [66]

Financial Data and Key Metrics Changes - The company's second quarter 2025 revenues were $900 million, an increase of $71 million or 8.6% compared to the same period last year [10] - Net income for the second quarter was $27 million compared to a net loss of $15 million for the same period last year [14] - EBITDA for the second quarter was $56 million compared to negative $5 million for the same period last year [14] - Operating cash flow was $33 million compared to $23 million for the same period last year [15] - Free cash flow was $12 million compared to $3 million for the same period last year [15] Business Segment Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues were $506 million, an increase of 10% compared to the same period last year, with $305 million from transmission and $201 million from distribution [10] - Commercial and Industrial (C&I) revenues were $394 million, an increase of 6% compared to the same period last year [11] - T&D operating income margin was 8% for 2025 compared to an operating loss margin of 1.8% for the same period last year [12] - C&I operating income margin was 5.6% for 2025 compared to 0.4% for the same period last year [12] Market Data and Key Metrics Changes - Total backlog as of June 30, 2025, was $2.64 billion, 4% higher than a year ago, with $927 million for T&D and $1.72 billion for C&I [14] - The U.S. power sector is forecasted to see $1.4 trillion in capital investments from 2025 to 2030, with power demand expected to increase by 10% to 17% from 2024 levels [18][19] Company Strategy and Development Direction - The company emphasizes grid modernization and hardening as strong market drivers, presenting opportunities for consistent success [8] - The focus remains on collaborating closely with customers while delivering safe, quality, and consistent results [8] - The company is committed to maintaining and expanding diverse customer relationships and adapting to market conditions [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted a steady performance due to strong customer relationships and operational consistency [7] - The company is optimistic about ongoing success in chosen markets due to increased electrification and investments in electrical infrastructure [8] - Management highlighted the importance of being proactive and disciplined in a dynamic energy landscape [25][26] Other Important Information - The company has a strong funded debt to EBITDA leverage ratio of 0.46x as of June 30, 2025 [16] - A new $75 million share repurchase program was authorized, replacing the prior program [16] Q&A Session Summary Question: Inquiry about the new MSA with Xcel Energy - Management confirmed that the MSA is new scope and additional to existing agreements [29][30] Question: Follow-up on C&I backlog and its sequential decline - Management explained that the backlog is typically lumpy and reflects the normal progression of work [31][32] Question: Discussion on business footprint expansion and future MSA announcements - Management indicated that they are always looking for MSA opportunities but also pursue bidding work [37][38] Question: Update on solar market contributions to revenue - Management stated that solar work has declined to 4% of T&D revenues and remains a selective area [49][50] Question: Capital allocation outlook regarding M&A and buybacks - Management emphasized a disciplined approach to acquisitions while balancing organic growth and stock buybacks [52][53] Question: Operating environment improvements and CapEx spending - Management noted that they are monitoring CapEx needs but do not anticipate significant increases [60] Question: Supply chain issues affecting project timelines - Management reported that while schedules have not extended significantly, clients are engaging earlier to secure long lead equipment [61]

分组1 - MYR Group (MYRG) reported quarterly earnings of $1.7 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, and showing a significant improvement from a loss of $0.91 per share a year ago, resulting in an earnings surprise of +8.97% [1] - The company achieved revenues of $900.33 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.74%, and reflecting a year-over-year increase from $828.89 million [2] - MYR has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has gained approximately 33.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.92 on revenues of $921.83 million, while for the current fiscal year, it is $6.59 on revenues of $3.46 billion [7] - The Electric Construction industry, to which MYR belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Contract revenues for Q2 2025 reached $900,325, an increase of 8.6% compared to $828,890 in Q2 2024[13] - Gross profit for Q2 2025 was $103,711, significantly up from $40,843 in Q2 2024, reflecting a gross margin improvement[13] - Net income for Q2 2025 was $26,466, compared to a net loss of $15,277 in Q2 2024, indicating a turnaround in profitability[13] - For the six months ended June 30, 2025, total revenue was $1.73 billion, up from $1.64 billion in the same period of 2024[63] - Net income for the six months ended June 30, 2025, was $49.8 million, compared to $3.7 million for the same period in 2024, representing a significant improvement[106] - EBITDA for the six months ended June 30, 2025, was $105.8 million, compared to $35.1 million for the same period in 2024[106] - The net income for the three months ended June 30, 2025, was $26.5 million, a recovery from a net loss of $15.3 million in the same period of 2024[92] Assets and Liabilities - Total assets as of June 30, 2025, were $1,586,982, a slight increase from $1,574,059 at the end of 2024[11] - Total liabilities increased to $1,003,748 as of June 30, 2025, compared to $973,699 at the end of 2024[11] - The company’s total shareholders' equity decreased to $583,234 as of June 30, 2025, from $600,360 at the end of 2024[11] - Retained earnings decreased to $434,598 as of June 30, 2025, down from $453,717 at the end of 2024[11] - Cash and cash equivalents at the end of the period increased to $22,956,000 from $1,869,000 at the end of June 2024[22] Revenue Segmentation - The T&D segment generated contract revenues of $506.3 million for the three months ended June 30, 2025, compared to $458.2 million in the same period of 2024, reflecting an increase of about 10.5%[92] - The C&I segment reported contract revenues of $394.1 million for the three months ended June 30, 2025, up from $370.7 million in the prior year, marking a growth of approximately 6.3%[92] - The T&D segment accounted for 55.8% of total revenues, while the C&I segment contributed 44.2% for the six months ended June 30, 2025[106] Expenses - Selling, general and administrative expenses for Q2 2025 were $63,313, slightly higher than $61,839 in Q2 2024[13] - SG&A expenses for the six months ended June 30, 2025, were $125.8 million, a slight increase from $124.1 million in the same period of 2024[133] - Interest expense for the three months ended June 30, 2025, was $1.9 million, up from $1.2 million in the same period of 2024[122] Cash Flow and Financing - Net cash flows provided by operating activities increased to $116,147,000 for the six months ended June 30, 2025, compared to $30,371,000 in 2024[22] - The company used net cash of $30.6 million in investing activities, primarily for capital expenditures of $34.3 million[148] - Financing activities resulted in a net cash outflow of $66.5 million, mainly due to $75.0 million in share repurchases[149] - The company has $383.3 million available under its revolving line of credit as of June 30, 2025, providing sufficient liquidity for short-term and long-term needs[150] Shareholder Actions - The company repurchased 639,207 shares at a weighted-average price of $117.33 per share during the six months ended June 30, 2025, exhausting substantially all authorized funds under the Repurchase Program[111] - The company announced a new share repurchase program on July 30, 2025, authorizing up to $75.0 million of outstanding shares, which will expire on February 4, 2026[183] Risks and Compliance - The Company is exposed to market risks including fluctuations in interest rates and foreign exchange rates, with no derivative instruments in use as of June 30, 2025[172][173] - The company faces risks associated with climate change, including financial and physical risks from extreme weather events[175] - The company may incur liabilities related to occupational health and safety matters, which could negatively impact its financial condition[175] - The Company was in compliance with all financial covenants under the Credit Agreement as of June 30, 2025, including a maximum Net Leverage Ratio of 3.0[53]

Core Insights - MYR Group Inc. reported strong financial performance in the second quarter of 2025, with revenues of $900.3 million, a net income of $26.5 million, and a backlog of $2.64 billion, indicating growth compared to the same period in 2024 [2][8][10]. Financial Performance - Second quarter 2025 revenues increased by $71.4 million compared to the second quarter of 2024, driven by growth in both the Transmission and Distribution (T&D) segment, which saw revenues of $506.3 million, and the Commercial and Industrial (C&I) segment, which reported revenues of $394.1 million [3][10]. - Consolidated gross profit for the second quarter of 2025 rose to $103.7 million, up from $40.8 million in the same quarter of 2024, with gross margin improving to 11.5% from 4.9% [4][11]. - For the first half of 2025, MYR reported revenues of $1.73 billion, an increase of $89.4 million compared to the first half of 2024, with net income reaching $49.8 million [10][15]. Cost and Expenses - Selling, general and administrative expenses (SG&A) increased to $63.3 million in the second quarter of 2025, primarily due to higher employee compensation costs [5][12]. - Interest expense rose to $1.9 million in the second quarter of 2025, attributed to higher average outstanding debt balances [6][13]. Tax and Net Income - The income tax expense for the second quarter of 2025 was $10.9 million, with an effective tax rate of 29.2%, compared to a tax benefit of $6.9 million in the same quarter of 2024 [7][14]. - Net income for the second quarter of 2025 was $26.5 million, or $1.70 per diluted share, a significant recovery from a net loss of $15.3 million in the second quarter of 2024 [8][29]. Backlog and Future Outlook - As of June 30, 2025, MYR's backlog stood at $2.64 billion, reflecting a 3.8% increase from the previous year, with T&D backlog at $926.5 million and C&I backlog at $1.72 billion [16]. - The company announced a new $75 million share repurchase program, replacing the previous program, which had been exhausted [18]. Balance Sheet - As of June 30, 2025, MYR had total assets of $1.59 billion and total shareholders' equity of $583.2 million [26][32].

[Company Overview](index=1&type=section&id=1.%20Company%20Overview) [Business Description](index=1&type=section&id=1.1%20Business%20Description) MYR Group Inc. is a leading specialty electrical contractor providing comprehensive services across power utility infrastructure and commercial & industrial markets in the US and Canada - MYR Group Inc. is a specialty electrical contractor holding company serving the US and Canadian power utility infrastructure and C&I construction markets[1](index=1&type=chunk)[22](index=22&type=chunk) - The company provides services through its T&D and C&I segments, encompassing design, engineering, construction, maintenance, and clean energy projects[22](index=22&type=chunk) [Executive Summary & Highlights](index=1&type=section&id=2.%20Executive%20Summary%20%26%20Highlights) [Management Commentary](index=1&type=section&id=2.1%20Management%20Commentary) CEO Rick Swartz highlighted strong Q2 2025 performance with $900 million revenue, $2.64 billion backlog, and year-over-year growth across key profitability metrics - MYR Group CEO Rick Swartz highlighted **Q2 2025 revenue of $900 million** and **backlog of $2.64 billion**, with year-over-year growth in net income, gross profit, gross margin, and EBITDA[2](index=2&type=chunk) - The company expanded its business reach through new master service agreements and projects, focusing on future growth[2](index=2&type=chunk) [Key Financial Highlights (Q2 2025)](index=1&type=section&id=2.2%20Key%20Financial%20Highlights%20(Q2%202025)) In Q2 2025, MYR Group achieved $900.3 million in quarterly revenue, a record $26.5 million net income ($1.70 diluted EPS), and a record $55.6 million EBITDA, with backlog reaching $2.64 billion Q2 2025 Key Financial Metrics | Metric | Amount (million USD) | | :--- | :--- | | Quarterly Revenue | 900.3 | | Quarterly Net Income | 26.5 | | Diluted EPS | 1.70 | | Quarterly EBITDA | 55.6 | | Backlog | 2,640.0 | [Financial Results](index=1&type=section&id=3.%20Financial%20Results) [Second Quarter 2025 Results](index=1&type=section&id=3.1%20Second%20Quarter%202025%20Results) MYR Group's Q2 2025 revenue reached $900.3 million, with gross profit significantly increasing to $103.7 million and net income turning profitable at $26.5 million, alongside $55.6 million EBITDA Q2 2025 Financial Performance Comparison (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Revenue | 900.3 | 828.9 | +71.4 | | Gross Profit | 103.7 | 40.8 | +62.9 | | Gross Margin | 11.5% | 4.9% | +6.6 pp | | Net Income | 26.5 | (15.3) | +41.8 | | Diluted EPS | 1.70 | (0.91) | +2.61 | | EBITDA | 55.6 | (4.7) | +60.3 | [Revenues by Segment](index=1&type=section&id=3.1.1%20Revenues%20by%20Segment) Q2 2025 T&D segment revenue grew to $506.3 million, driven by distribution and transmission projects, while C&I segment revenue increased to $394.1 million Q2 2025 Revenues by Segment (million USD) | Segment | Q2 2025 Revenue (million USD) | Q2 2024 Revenue (million USD) | YoY Change (million USD) | | :--- | :--- | :--- | :--- | | Transmission & Distribution (T&D) | 506.3 | 458.2 | 48.1 | | Commercial & Industrial (C&I) | 394.1 | 370.7 | 23.4 | | **Total** | **900.3** | **828.9** | **71.4** | - T&D segment revenue growth was primarily driven by **distribution projects (+$25.1 million)** and **transmission projects (+$22.9 million)**[3](index=3&type=chunk) [Gross Profit and Margin](index=1&type=section&id=3.1.2%20Gross%20Profit%20and%20Margin) Consolidated gross profit increased to $103.7 million in Q2 2025, with gross margin rising to 11.5%, driven by improved productivity and favorable project settlements Q2 2025 Gross Profit and Margin (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Consolidated Gross Profit | 103.7 | 40.8 | +62.9 | | Gross Margin | 11.5% | 4.9% | +6.6 pp | - Gross margin growth was primarily driven by the elimination of prior-year negative impacts, better-than-expected productivity, and favorable project settlements[4](index=4&type=chunk) - Gross margin growth was partially offset by increased labor costs, project inefficiencies, and unfavorable change orders[4](index=4&type=chunk) [Operating Expenses (SG&A, Amortization)](index=1&type=section&id=3.1.3%20Operating%20Expenses%20(SG%26A%2C%20Amortization)) Q2 2025 SG&A expenses increased to $63.3 million, mainly due to higher employee incentive compensation and staff-related costs supporting future growth Q2 2025 SG&A Expenses (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | SG&A Expenses | 63.3 | 61.8 | +1.5 | - SG&A expenses increased primarily due to higher employee incentive compensation and staff-related costs supporting future growth[5](index=5&type=chunk) [Interest Expense](index=1&type=section&id=3.1.4%20Interest%20Expense) Q2 2025 interest expense rose to $1.9 million, mainly due to an increased average outstanding debt balance, partially offset by lower interest rates Q2 2025 Interest Expense (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Interest Expense | 1.9 | 1.2 | +0.7 | - Interest expense increased primarily due to a higher average outstanding debt balance[6](index=6&type=chunk) [Income Tax Expense](index=1&type=section&id=3.1.5%20Income%20Tax%20Expense) Q2 2025 income tax expense was $10.9 million with an effective tax rate of 29.2%, a change from a $6.9 million benefit in Q2 2024, mainly due to reduced GILTI impact Q2 2025 Income Tax Expense and Effective Tax Rate (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | | :--- | :--- | :--- | | Income Tax Expense/(Benefit) | 10.9 | (6.9) | | Effective Tax Rate | 29.2% | 31.0% | - The change in tax rate was primarily due to a reduction in the impact of Global Intangible Low-Taxed Income (GILTI)[7](index=7&type=chunk) [Net Income and EPS](index=1&type=section&id=3.1.6%20Net%20Income%20and%20EPS) Q2 2025 net income was $26.5 million with diluted EPS of $1.70, a significant improvement from a net loss of $15.3 million (diluted EPS of -$0.91) in Q2 2024 Q2 2025 Net Income and EPS (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Net Income | 26.5 | (15.3) | +41.8 | | Diluted EPS | 1.70 | (0.91) | +2.61 | [EBITDA](index=1&type=section&id=3.1.7%20EBITDA) Q2 2025 EBITDA, a non-GAAP financial measure, significantly increased to $55.6 million, compared to a negative $4.7 million in Q2 2024 Q2 2025 EBITDA (million USD) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | EBITDA | 55.6 | (4.7) | +60.3 | [First-Half 2025 Results](index=2&type=section&id=3.2%20First-Half%202025%20Results) MYR Group's H1 2025 revenue reached $1.73 billion, with gross profit increasing to $200.6 million and net income significantly growing to $49.8 million H1 2025 Financial Performance Comparison (million USD) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Revenue | 1,733.9 | 1,644.5 | +89.4 | | Gross Profit | 200.6 | 127.1 | +73.5 | | Gross Margin | 11.6% | 7.7% | +3.9 pp | | Net Income | 49.8 | 3.7 | +46.1 | | Diluted EPS | 3.15 | 0.22 | +2.93 | [Revenues by Segment](index=2&type=section&id=3.2.1%20Revenues%20by%20Segment) H1 2025 T&D segment revenue grew to $968.0 million, driven by distribution projects, while C&I segment revenue increased to $765.9 million H1 2025 Revenues by Segment (million USD) | Segment | H1 2025 Revenue (million USD) | H1 2024 Revenue (million USD) | YoY Change (million USD) | | :--- | :--- | :--- | :--- | | Transmission & Distribution (T&D) | 968.0 | 948.6 | 19.4 | | Commercial & Industrial (C&I) | 765.9 | 695.8 | 70.1 | | **Total** | **1,733.9** | **1,644.5** | **89.4** | - T&D segment revenue growth was primarily driven by **distribution projects (+$40.6 million)**, partially offset by a decrease in **transmission projects (-$21.2 million)**, mainly related to clean energy[10](index=10&type=chunk) [Gross Profit and Margin](index=2&type=section&id=3.2.2%20Gross%20Profit%20and%20Margin) Consolidated gross profit increased to $200.6 million in H1 2025, with gross margin rising to 11.6%, driven by improved productivity and favorable project settlements H1 2025 Gross Profit and Margin (million USD) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Consolidated Gross Profit | 200.6 | 127.1 | +73.5 | | Gross Margin | 11.6% | 7.7% | +3.9 pp | - Gross margin growth was primarily due to the elimination of prior-year negative impacts, better-than-expected productivity, favorable change orders, and project settlements[11](index=11&type=chunk) [Operating Expenses (SG&A, Amortization)](index=2&type=section&id=3.2.3%20Operating%20Expenses%20(SG%26A%2C%20Amortization)) H1 2025 SG&A expenses increased to $125.8 million, mainly due to higher employee incentive compensation and staff-related costs supporting future growth H1 2025 SG&A Expenses (million USD) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | SG&A Expenses | 125.8 | 124.1 | +1.7 | - SG&A expenses increased primarily due to higher employee incentive compensation and staff-related costs supporting future growth[12](index=12&type=chunk) [Interest Expense](index=2&type=section&id=3.2.4%20Interest%20Expense) H1 2025 interest expense rose to $3.3 million, mainly due to an increased average outstanding debt balance, partially offset by lower interest rates H1 2025 Interest Expense (million USD) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Interest Expense | 3.3 | 2.3 | +1.0 | - Interest expense increased primarily due to a higher average outstanding debt balance[13](index=13&type=chunk) [Income Tax Expense](index=2&type=section&id=3.2.5%20Income%20Tax%20Expense) H1 2025 income tax expense was $20.4 million with an effective tax rate of 29.1%, a change from a $2.7 million benefit in H1 2024, mainly due to increased pre-tax income H1 2025 Income Tax Expense and Effective Tax Rate (million USD) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | | :--- | :--- | :--- | | Income Tax Expense/(Benefit) | 20.4 | (2.7) | | Effective Tax Rate | 29.1% | -281.9% | - The tax rate change was primarily due to increased pre-tax income, reduced permanent differences, and lower excess tax benefits from share-based compensation[14](index=14&type=chunk) [Net Income and EPS](index=2&type=section&id=3.2.6%20Net%20Income%20and%20EPS) H1 2025 net income was $49.8 million with diluted EPS of $3.15, a significant increase from $3.7 million net income (diluted EPS of $0.22) in H1 2024 H1 2025 Net Income and EPS (million USD) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (million USD) | | :--- | :--- | :--- | :--- | | Net Income | 49.8 | 3.7 | +46.1 | | Diluted EPS | 3.15 | 0.22 | +2.93 | [Backlog](index=2&type=section&id=4.%20Backlog) [Backlog Overview](index=2&type=section&id=4.1%20Backlog%20Overview) As of June 30, 2025, MYR Group's total backlog was $2.64 billion, consistent with March 31, 2025, and a 3.8% increase from June 30, 2024 Backlog Status (million USD) | Metric | June 30, 2025 (million USD) | March 31, 2025 (million USD) | June 30, 2024 (million USD) | | :--- | :--- | :--- | :--- | | Total Backlog | 2,640.0 | 2,640.0 | 2,542.3 | | T&D Backlog | 926.5 | - | - | | C&I Backlog | 1,720.0 | - | - | - As of June 30, 2025, total backlog increased by **3.8%** compared to June 30, 2024[16](index=16&type=chunk) [Financial Position & Liquidity](index=2&type=section&id=5.%20Financial%20Position%20%26%20Liquidity) [Balance Sheet Overview](index=4&type=section&id=5.1%20Balance%20Sheet%20Overview) As of June 30, 2025, MYR Group's total assets were $1.587 billion, with cash and cash equivalents significantly increasing to $22.956 million, while total shareholders' equity was $583.234 million Balance Sheet Key Data (thousand USD) | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Total Assets | 1,586,982 | 1,574,059 | | Cash and Cash Equivalents | 22,956 | 3,464 | | Total Liabilities | 1,003,748 | 973,699 | | Total Shareholders' Equity | 583,234 | 600,360 | [Borrowing Availability](index=2&type=section&id=5.2%20Borrowing%20Availability) As of June 30, 2025, MYR Group had $383.3 million in borrowing availability under its $490 million revolving credit facility, indicating strong liquidity Borrowing Availability (million USD) | Metric | Amount (million USD) | | :--- | :--- | | Revolving Credit Facility | 490.0 | | Borrowing Availability (June 30, 2025) | 383.3 | [Share Repurchase Program](index=2&type=section&id=6.%20Share%20Repurchase%20Program) [New Share Repurchase Program Approval](index=2&type=section&id=6.1%20New%20Share%20Repurchase%20Program%20Approval) MYR Group's board approved a new $75 million share repurchase program, replacing a prior one, to be funded by cash on hand and credit facility - The Board approved a new **$75 million share repurchase program**, replacing a substantially depleted prior program of the same size[18](index=18&type=chunk) - Repurchases will occur at management's discretion via open market or private transactions, funded by cash on hand and the credit facility[18](index=18&type=chunk) - The program is set to expire on **February 4, 2026**, or when authorized funds are exhausted[18](index=18&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=7.%20Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=7.1%20Consolidated%20Balance%20Sheets) As of June 30, 2025, MYR Group's consolidated balance sheet shows total assets of $1.587 billion, total liabilities of $1.004 billion, and shareholders' equity of $583 million Consolidated Balance Sheets (thousand USD) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | 22,956 | 3,464 | | Accounts receivable, net | 599,629 | 653,069 | | Contract assets, net | 347,082 | 301,942 | | Total current assets | 1,017,606 | 1,014,662 | | Property and equipment, net | 281,901 | 278,226 | | Goodwill | 115,466 | 112,983 | | Total assets | 1,586,982 | 1,574,059 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Accounts payable | 308,191 | 295,476 | | Contract liabilities | 286,288 | 321,958 | | Total current liabilities | 766,392 | 748,900 | | Long-term debt | 81,623 | 70,018 | | Total liabilities | 1,003,748 | 973,699 | | Common stock | 155 | 161 | | Retained earnings | 434,598 | 453,717 | | Total shareholders' equity | 583,234 | 600,360 | | Total liabilities and shareholders' equity | 1,586,982 | 1,574,059 | [Consolidated Statements of Operations](index=5&type=section&id=7.2%20Consolidated%20Statements%20of%20Operations) MYR Group's Q2 and H1 2025 statements of operations show significant growth in revenue, gross profit, and net income, with Q2 net income turning profitable at $26.5 million Consolidated Statements of Operations (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Contract revenues | 900,325 | 828,890 | 1,733,945 | 1,644,452 | | Gross profit | 103,711 | 40,843 | 200,612 | 127,086 | | Selling, general and administrative expenses | 63,313 | 61,839 | 125,837 | 124,072 | | Income (loss) from operations | 39,787 | (20,707) | 74,077 | 3,564 | | Income (loss) before provision for income taxes | 37,394 | (22,137) | 70,161 | 959 | | Income tax expense (benefit) | 10,928 | (6,860) | 20,387 | (2,703) | | Net income (loss) | 26,466 | (15,277) | 49,774 | 3,662 | | Diluted EPS | 1.70 | (0.91) | 3.15 | 0.22 | [Consolidated Statements of Cash Flows](index=6&type=section&id=7.3%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow significantly increased to $116.147 million, with reduced investing cash outflow and increased financing cash outflow due to share repurchases Consolidated Statements of Cash Flows (thousand USD) | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net income | 49,774 | 3,662 | | Net cash flows provided by operating activities | 116,147 | 30,371 | | Net cash flows used in investing activities | (30,563) | (42,581) | | Net cash flows used in financing activities | (66,521) | (10,275) | | Net increase (decrease) in cash and cash equivalents | 19,492 | (23,030) | | Cash and cash equivalents, End of period | 22,956 | 1,869 | - Operating cash flow significantly increased, primarily due to substantial improvement in net income and a reduction in accounts receivable[30](index=30&type=chunk) - Financing cash outflow increased, primarily due to **$75 million in common stock repurchases**[30](index=30&type=chunk) [Selected Financial Data & Segment Performance](index=7&type=section&id=8.%20Selected%20Financial%20Data%20%26%20Segment%20Performance) [Summary Statement of Operations Data](index=7&type=section&id=8.1%20Summary%20Statement%20of%20Operations%20Data) Q2 2025 contract revenues, gross profit, operating income, and net income all significantly increased year-over-year, while LTM contract revenues slightly decreased but profitability metrics improved Summary Statement of Operations Data (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Contract revenues | 900,325 | 828,890 | 3,451,783 | 3,588,125 | | Gross profit | 103,711 | 40,843 | 363,845 | 316,964 | | Income (loss) from operations | 39,787 | (20,707) | 124,595 | 72,793 | | Net income (loss) | 26,466 | (15,277) | 76,375 | 49,216 | | Tax rate | 29.2% | 31.0% | 34.0% | 26.9% | [Per Share Data](index=7&type=section&id=8.2%20Per%20Share%20Data) Q2 2025 diluted EPS turned profitable at $1.70 from a loss of $0.91 in Q2 2024, with LTM diluted EPS also increasing from $2.92 to $4.79 Per Share Data | (per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | 1.70 | (0.91) | 4.79 | 2.92 | | Diluted weighted average shares | 15,575 | 16,809 | 16,035 | 16,828 | [Summary Balance Sheet Data](index=7&type=section&id=8.3%20Summary%20Balance%20Sheet%20Data) As of June 30, 2025, total assets and total funded debt increased, while total shareholders' equity slightly decreased, with goodwill and intangible assets remaining stable Summary Balance Sheet Data (thousand USD) | (in thousands) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total assets | 1,586,982 | 1,574,059 | 1,583,242 | | Total shareholders' equity | 583,234 | 600,360 | 633,342 | | Goodwill and intangible assets | 190,514 | 188,674 | 195,227 | | Total funded debt | 86,081 | 74,381 | 45,065 | [Segment Results](index=7&type=section&id=8.4%20Segment%20Results) Both T&D and C&I segments showed increased contract revenues and operating income in Q2 and H1 2025, with significant improvements in operating margins for both segments Segment Results (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Contract revenues:** | | | | | | Transmission & Distribution | 506,273 (56.2%) | 458,209 (55.3%) | 968,043 (55.8%) | 948,604 (57.7%) | | Commercial & Industrial | 394,052 (43.8%) | 370,681 (44.7%) | 765,902 (44.2%) | 695,848 (42.3%) | | **Operating income (loss):** | | | | | | Transmission & Distribution | 40,465 (8.0%) | (8,300) (-1.8%) | 76,686 (7.9%) | 21,536 (2.3%) | | Commercial & Industrial | 21,992 (5.6%) | 1,608 (0.4%) | 39,369 (5.1%) | 13,031 (1.9%) | | Consolidated | 39,787 (4.4%) | (20,707) (-2.5%) | 74,077 (4.3%) | 3,564 (0.2%) | [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=9.%20Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Overview of Non-GAAP Measures](index=3&type=section&id=9.1%20Overview%20of%20Non-GAAP%20Measures) MYR Group uses non-GAAP financial measures like EBITDA, EBIA, and free cash flow to supplement GAAP statements, providing additional insights into core operations and performance - MYR Group uses non-GAAP measures such as EBITDA, EBIA, and free cash flow to supplement GAAP financial statements, offering additional insights into core business operations[19](index=19&type=chunk)[20](index=20&type=chunk) - These non-GAAP metrics assist management and investors in assessing company performance and ensuring compliance with financial covenants in credit agreements[20](index=20&type=chunk) [Performance Measures](index=9&type=section&id=9.2%20Performance%20Measures) Q2 2025 EBITDA, EBIA net of taxes, and free cash flow significantly improved year-over-year, with LTM asset turnover, return on assets, equity, and invested capital also showing growth Key Performance Measures (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | EBITDA | 55,599 | (4,703) | 188,439 | 134,939 | | EBITDA per Diluted Share | 3.57 | (0.28) | 11.77 | 8.02 | | EBIA, net of taxes | 28,640 | (13,637) | 84,258 | 56,375 | | Free Cash Flow | 11,638 | 2,503 | 108,625 | (3,424) | | Book Value per Period End Share | 37.46 | 37.92 | - | - | | Tangible Book Value | 392,720 | 438,115 | - | - | | Tangible Book Value per Period End Share | 25.22 | 26.23 | - | - | | Funded Debt to Equity Ratio | 0.15 | 0.07 | - | - | | Asset Turnover | - | - | 2.18 | 2.45 | | Return on Assets | - | - | 4.8% | 3.4% | | Return on Equity | - | - | 12.1% | 8.1% | | Return on Invested Capital | - | - | 12.7% | 8.7% | [Reconciliation of Net Income (Loss) to EBITDA](index=9&type=section&id=9.3%20Reconciliation%20of%20Net%20Income%20(Loss)%20to%20EBITDA) MYR Group reconciles net income (loss) to EBITDA by adding back net interest expense, income tax expense (benefit), and depreciation and amortization, showing a significant improvement in Q2 2025 EBITDA Reconciliation of Net Income (Loss) to EBITDA (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | 26,466 | (15,277) | 76,375 | 49,216 | | Interest expense, net | 1,860 | 1,160 | 7,121 | 4,897 | | Income tax expense (benefit) | 10,928 | (6,860) | 39,320 | 18,079 | | Depreciation and amortization | 16,345 | 16,274 | 65,623 | 62,747 | | **EBITDA** | **55,599** | **(4,703)** | **188,439** | **134,939** | [Reconciliation of Net Income (Loss) per Diluted Share to EBITDA per Diluted Share](index=9&type=section&id=9.4%20Reconciliation%20of%20Net%20Income%20(Loss)%20per%20Diluted%20Share%20to%20EBITDA%20per%20Diluted%20Share) Diluted net income (loss) per share is reconciled to diluted EBITDA per share by adding back per-share interest, tax, and D&A, showing a Q2 2025 diluted EBITDA per share of $3.57 Reconciliation of Net Income (Loss) per Diluted Share to EBITDA per Diluted Share | (per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) per share | 1.70 | (0.91) | 4.79 | 2.92 | | Interest expense, net, per share | 0.12 | 0.07 | 0.44 | 0.29 | | Income tax expense (benefit) per share | 0.70 | (0.41) | 2.45 | 1.08 | | Depreciation and amortization per share | 1.05 | 0.97 | 4.09 | 3.73 | | **EBITDA per Diluted Share** | **3.57** | **(0.28)** | **11.77** | **8.02** | [Reconciliation of EBIA, net of taxes](index=9&type=section&id=9.5%20Reconciliation%20of%20EBIA%2C%20net%20of%20taxes) EBIA, net of taxes, is calculated by adjusting net income (loss) for net interest expense, intangible asset amortization, and their tax impacts, resulting in $28.64 million for Q2 2025 Reconciliation of EBIA, net of taxes (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | 26,466 | (15,277) | 76,375 | 49,216 | | Interest expense, net | 1,860 | 1,160 | 7,121 | 4,897 | | Amortization of intangible assets | 1,211 | 1,217 | 4,823 | 4,897 | | Tax impact of interest and amortization of intangible assets | (897) | (737) | (4,061) | (2,635) | | **EBIA, net of taxes** | **28,640** | **(13,637)** | **84,258** | **56,375** | [Calculation of Free Cash Flow](index=9&type=section&id=9.6%20Calculation%20of%20Free%20Cash%20Flow) Free cash flow, defined as operating cash flow less capital expenditures, significantly increased to $11.638 million in Q2 2025 and turned positive for the LTM period Calculation of Free Cash Flow (thousand USD) | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Last twelve months ended June 30, 2025 | Last twelve months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 32,861 | 22,681 | 172,891 | 85,543 | | Less: cash used in purchasing property and equipment | (21,223) | (20,178) | (64,266) | (88,967) | | **Free Cash Flow** | **11,638** | **2,503** | **108,625** | **(3,424)** | [Reconciliation of Book Value to Tangible Book Value](index=11&type=section&id=9.7%20Reconciliation%20of%20Book%20Value%20to%20Tangible%20Book%20Value) Tangible book value is calculated by subtracting goodwill and intangible assets from total shareholders' equity, resulting in $392.72 million as of June 30, 2025 Reconciliation of Book Value to Tangible Book Value (thousand USD) | (in thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Book value (total shareholders' equity) | 583,234 | 633,342 | | Goodwill and intangible assets | (190,514) | (195,227) | | **Tangible Book Value** | **392,720** | **438,115** | | Book value per period end share | 37.46 | 37.92 | | Goodwill and intangible assets per period end share | (12.24) | (11.69) | | **Tangible Book Value per Period End Share** | **25.22** | **26.23** | [Reconciliation of Invested Capital to Shareholders Equity](index=11&type=section&id=9.8%20Reconciliation%20of%20Invested%20Capital%20to%20Shareholders%20Equity) Invested capital is calculated by adding total funded debt to total shareholders' equity and subtracting cash, totaling $646.359 million as of June 30, 2025 Reconciliation of Invested Capital to Shareholders Equity (thousand USD) | (in thousands) | June 30, 2025 | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Book value (total shareholders' equity) | 583,234 | 633,342 | 604,300 | | Plus: total funded debt | 86,081 | 45,065 | 45,125 | | Less: cash and cash equivalents | (22,956) | (1,869) | (22,850) | | **Invested Capital** | **646,359** | **676,538** | **626,575** | [Notes on Non-GAAP Measures](index=12&type=section&id=9.9%20Notes%20on%20Non-GAAP%20Measures) Non-GAAP financial measures are supplementary to GAAP, used by management for performance assessment and credit agreement compliance, with detailed definitions and reconciliations provided - Non-GAAP financial measures are supplementary and should not replace GAAP financial statements[19](index=19&type=chunk)[41](index=41&type=chunk) - Management uses these metrics to assess company performance, future prospects, and compliance with financial covenants in credit agreements[41](index=41&type=chunk) - The company's non-GAAP metric calculations may differ from others, with detailed definitions and reconciliations provided in the report[19](index=19&type=chunk)[41](index=41&type=chunk) [Additional Information](index=3&type=section&id=10.%20Additional%20Information) [Conference Call Details](index=3&type=section&id=10.1%20Conference%20Call%20Details) MYR Group will host a conference call on July 31, 2025, to discuss Q2 2025 results, requiring pre-registration for access and offering webcast replays - MYR Group will host a conference call on **July 31, 2025**, to discuss its Q2 2025 results[21](index=21&type=chunk) - Participants must pre-register and can access webcast replays via the company's investor website[21](index=21&type=chunk) [Forward-Looking Statements](index=3&type=section&id=10.2%20Forward-Looking%20Statements) This announcement contains forward-looking statements regarding future events and results, subject to significant business, economic, and regulatory risks and uncertainties - This announcement contains forward-looking statements regarding beliefs, expectations, or intentions for future events or results[23](index=23&type=chunk) - Forward-looking statements are subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, with actual results potentially differing materially[23](index=23&type=chunk) - The company undertakes no obligation to update these statements and advises investors to refer to risk factors in its SEC reports[23](index=23&type=chunk) [Contact Information](index=3&type=section&id=10.3%20Contact%20Information) For investor relations inquiries, contact Jennifer Harper, Vice President and Treasurer, via phone at 847-979-5835 or email at investorinfo@myrgroup.com - Investor Relations contact: **Jennifer Harper**, Vice President and Treasurer[24](index=24&type=chunk) - Contact phone: **847-979-5835**, email: **investorinfo@myrgroup.com**[24](index=24&type=chunk)

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]