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]

Group 1 - MYR Group Inc. (NASDAQ: MYRG) reported a -7.73% year-over-year decline in revenue for FY24 due to challenges from multiple renewable energy projects reaching mechanical completion [1] - The decline in revenue indicates potential difficulties in the renewable energy sector, which may impact future growth prospects for MYR Group [1] Group 2 - The company operates in various sectors including oil and gas, midstream, industrials, information technology, and consumer discretionary, suggesting a diversified portfolio [1] - The macro-value-oriented approach to investment analysis may provide insights into cross-industry trends affecting MYR Group's performance [1]

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].

Core Viewpoint - MYR Group Inc. reported a decline in both fourth quarter and full year 2024 financial results, alongside a new $75 million share repurchase program aimed at enhancing shareholder value [1][25]. Financial Performance - Fourth quarter 2024 revenues were $829.8 million, down $174.4 million or 17.4% from the same period in 2023 [3][6]. - Full year 2024 revenues totaled $3.36 billion, a decrease of $281.6 million or 7.7% compared to $3.64 billion in 2023 [13][22]. - Fourth quarter net income was $16.0 million, or $0.99 per diluted share, compared to $24.0 million, or $1.43 per diluted share, in the fourth quarter of 2023 [12][22]. - Full year net income for 2024 was $30.3 million, or $1.83 per diluted share, down from $91.0 million, or $5.40 per diluted share, in 2023 [22]. Segment Performance - The Transmission & Distribution (T&D) segment reported fourth quarter revenues of $450.0 million, a decrease of $141.5 million or 23.9% from the fourth quarter of 2023 [3][39]. - The Commercial & Industrial (C&I) segment had quarterly revenues of $379.8 million, down $32.9 million or 8.0% from the same period in 2023 [3][39]. - For the full year, T&D revenues were $1.88 billion, a decrease of $208.7 million or 10.0%, while C&I revenues were $1.48 billion, down $72.9 million or 4.7% [13][22]. Profitability Metrics - Consolidated gross profit for the fourth quarter of 2024 was $85.9 million, down from $97.5 million in the fourth quarter of 2023, with a gross margin increase to 10.4% from 9.7% [4][6]. - Full year gross profit was $290.3 million, compared to $364.4 million in 2023, with gross margin decreasing to 8.6% from 10.0% [14][22]. - T&D operating income margin for the fourth quarter was 6.7%, down from 7.2% in the same quarter of 2023 [5][39]. - C&I operating income margin improved to 3.9% from 2.1% year-over-year [7][39]. Backlog and Market Outlook - As of December 31, 2024, MYR's backlog was $2.58 billion, slightly down from $2.60 billion as of September 30, 2024, but up 2.5% from $2.51 billion a year earlier [23]. - The company noted a steady backlog reflecting a healthy bidding environment and ongoing infrastructure investments to meet electrification demands in the U.S. and Canada [2]. Share Repurchase Program - The Board of Directors approved a new share repurchase program allowing for the repurchase of up to $75 million of common stock, which will expire on September 5, 2025, or when the authorized funds are exhausted [25].

Revenue Performance - Fourth-quarter 2024 revenues were $829.8 million, a decrease of $174.4 million, or 17.4% compared to Q4 2023[3] - Full-year 2024 revenues totaled $3.36 billion, down $281.6 million, or 7.7% from $3.64 billion in 2023[12] - Contract revenues for the year ended December 31, 2024, were $3,362,290, a decrease of 7.7% compared to $3,643,905 in 2023[33] - Contract revenues for Q4 2024 were $829,795, a decrease of 17.3% from $1,004,197 in Q4 2023[39] Net Income and Earnings Per Share - Fourth-quarter net income was $16.0 million, or $0.99 per diluted share, compared to $24.0 million, or $1.43 per diluted share, in Q4 2023[11] - Full-year net income for 2024 was $30.3 million, or $1.83 per diluted share, down from $91.0 million, or $5.40 per diluted share, in 2023[20] - Net income for the year ended December 31, 2024, was $30,263, a significant decline of 66.7% compared to $90,990 in 2023[33] - Net income for Q4 2024 was $15,952, a decline of 33.6% compared to $24,042 in Q4 2023[39] - The company’s diluted earnings per share for the year ended December 31, 2024, was $1.83, down from $5.40 in 2023, reflecting a decline of 66%[33] Profitability Metrics - Consolidated gross profit for Q4 2024 decreased to $85.9 million, compared to $97.5 million in Q4 2023, with a gross margin increase to 10.4% from 9.7%[4] - Gross profit for the year ended December 31, 2024, was $290,319, down 20.3% from $364,397 in 2023[33] - Gross profit for Q4 2024 was $85,945, down 11.8% from $97,495 in Q4 2023[39] - EBITDA for Q4 2024 was $45,491, a decrease of 13.9% from $52,829 in Q4 2023[41] - Free cash flow for Q4 2024 was $8,815, down 59.3% from $21,679 in Q4 2023[41] Operating Performance - T&D operating income margin for Q4 2024 was 6.7%, down from 7.2% in Q4 2023, primarily due to losses on clean energy projects[5] - C&I operating income margin for Q4 2024 improved to 3.9% from 2.1% in Q4 2023, driven by better-than-anticipated productivity[6] - SG&A expenses decreased to $56.7 million in Q4 2024 from $60.0 million in Q4 2023, mainly due to lower employee incentive compensation costs[7] Balance Sheet and Cash Flow - Total assets as of December 31, 2024, were $1,574,059, a slight decrease from $1,578,746 in 2023[31] - Total liabilities increased to $973,699 as of December 31, 2024, compared to $927,544 in 2023, reflecting a rise of 5%[31] - Cash and cash equivalents decreased to $3,464 as of December 31, 2024, down from $24,899 in 2023, representing an 86% decline[31] - Operating cash flows for the year ended December 31, 2024, were $87,115, an increase of 22.7% from $71,016 in 2023[36] - The company reported a decrease in accounts receivable, net, to $653,069 as of December 31, 2024, from $521,893 in 2023, indicating a 25.1% increase[31] - The current portion of long-term debt decreased to $4,363 as of December 31, 2024, from $7,053 in 2023, a reduction of 38.1%[31] Shareholder Equity and Returns - Total shareholders' equity decreased to $600,360 in 2024 from $651,202 in 2023, a decline of 7.8%[39] - The company reported a return on equity of 4.6% for 2024, down from 16.2% in 2023[41] Tax and Debt Ratios - The effective tax rate increased to 40.9% in Q4 2024 from 32.3% in Q4 2023[39] - The funded debt to equity ratio remained stable at 0.1 for both 2024 and 2023[41] - Funded debt includes borrowings under the revolving credit facility and outstanding balances of equipment notes[1] Definitions and Calculations - 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]

Group 1 - MYR Group Inc. will participate in the Sidoti Small-Cap virtual investor conference on March 19, 2025, with CEO Rick Swartz and CFO Kelly Huntington meeting institutional investors [1] - MYR Group operates as a holding company for specialty electrical contractors in the United States and Canada, divided into two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [2] - The T&D segment provides services related to electric transmission, distribution networks, substations, clean energy projects, and electric vehicle charging infrastructure, serving a diverse range of customers including utilities and independent power producers [2] - The C&I segment offers a wide array of services including design, installation, maintenance, and repair of commercial and industrial wiring for various facilities such as airports, hospitals, and manufacturing plants [2]

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 provides a wide range of services including design, engineering, procurement, construction, maintenance, and repair for various electrical installations [4] Upcoming Financial Results - MYR Group will release its fourth quarter and full year 2024 results on February 26, 2025, after market close [1] - A conference call and simultaneous webcast to discuss the results is scheduled for February 27, 2025, at 8 a.m. Mountain time [1] Participation Details - 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 Viewpoint - MYR Group Inc. will participate in the Cantor Global Technology Conference, where its CEO and CFO will engage with institutional investors [1] Company Overview - MYR Group Inc. is a holding company specializing in electrical contracting services across the United States and Canada, operating through two main segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I) [2] - The T&D segment offers services related to electric transmission, distribution networks, substations, clean energy projects, and electric vehicle charging infrastructure, catering to a diverse clientele including utilities and independent power producers [2] - The C&I segment provides a wide range of services such as design, installation, maintenance, and repair of commercial and industrial wiring for various facilities including airports, hospitals, and manufacturing plants [2]