Financial Performance - MYR Group reported first-quarter 2025 revenues of $833.6 million, an increase of $18.0 million compared to the first quarter of 2024[4]. - Net income for the first quarter of 2025 was $23.3 million, or $1.45 per diluted share, compared to $18.9 million, or $1.12 per diluted share, for the same period of 2024[9]. - Consolidated gross profit increased to $96.9 million for the first quarter of 2025, up from $86.2 million for the first quarter of 2024, with gross margin rising to 11.6% from 10.6%[5]. - First-quarter 2025 EBITDA was $50.2 million, compared to $39.8 million in the first quarter of 2024[9]. - Contract revenues for Q1 2025 were $833,620,000, an increase of 2.6% from $815,562,000 in Q1 2024[22]. - Gross profit for Q1 2025 was $96,901,000, up 12.3% from $86,243,000 in Q1 2024[22]. - Net income for Q1 2025 increased to $23,308,000, representing a 23.5% rise compared to $18,939,000 in Q1 2024[22]. - Basic income per share rose to $1.46 in Q1 2025, compared to $1.13 in Q1 2024, reflecting a 29.2% increase[27]. - Operating income for Q1 2025 was $34,290,000, a 41.3% increase from $24,271,000 in Q1 2024[27]. - Cash flows provided by operating activities significantly improved to $83,286,000 in Q1 2025, compared to $7,690,000 in Q1 2024[24]. - EBITDA for the three months ended March 31, 2025, was $50,183,000, an increase from $39,838,000 in the same period of 2024, representing a growth of 25.8%[29]. - Free Cash Flow for the three months ended March 31, 2025, was $70,220,000, compared to a negative cash flow of $(18,093,000) in the same period of 2024[29]. Segment Performance - The Transmission and Distribution (T&D) segment reported quarterly revenues of $461.8 million, a decrease of $28.6 million from the first quarter of 2024, while the Commercial and Industrial (C&I) segment reported revenues of $371.9 million, an increase of $46.7 million[4]. - The Transmission & Distribution segment generated $461,769,000 in revenues, accounting for 55.4% of total contract revenues in Q1 2025[27]. Expenses and Taxation - Selling, general and administrative expenses increased to $62.5 million for the first quarter of 2025, compared to $62.2 million for the first quarter of 2024[6]. - Interest expense rose to $1.4 million in the first quarter of 2025, compared to $1.1 million for the first quarter of 2024[7]. - Income tax expense was $9.5 million for the first quarter of 2025, with an effective tax rate of 28.9%, compared to $4.2 million and an effective tax rate of 18.0% for the first quarter of 2024[8]. - The company reported a tax rate of 28.9% for Q1 2025, compared to 18.0% in Q1 2024[27]. Balance Sheet and Cash Flow - The backlog at the end of the first quarter was $2.64 billion, reflecting an increase of $214.9 million, or 8.9%, from $2.43 billion reported at March 31, 2024[10]. - Total assets as of March 31, 2025, were $1,522,061,000, down from $1,574,059,000 as of March 31, 2024[27]. - MYR Group had $379.4 million of borrowing availability under its $490 million revolving credit facility as of March 31, 2025[12]. - Net Cash Flow from Operating Activities for the three months ended March 31, 2025, was $83,286,000, significantly up from $7,690,000 in the same period of 2024[29]. Shareholder Metrics - The company repurchased $75,000,000 of common stock during Q1 2025[24]. - Net income for the last twelve months ended March 31, 2025, was $34,632,000, down from $86,766,000 in the previous year, reflecting a decrease of 60%[29]. - Book Value per Period End Share decreased to $35.21 as of March 31, 2025, from $39.30 as of March 31, 2024, a decline of 7.4%[31]. - Tangible Book Value as of March 31, 2025, was $361,083,000, down from $466,406,000 in 2024, indicating a decrease of 22.5%[31]. - The Funded Debt to Equity Ratio increased to 0.16 as of March 31, 2025, compared to 0.06 in the previous year, indicating higher leverage[29]. - Return on Assets for the last twelve months was 2.2%, down from 6.4% in the previous year, showing a decline in asset efficiency[29]. - Return on Equity decreased to 5.2% for the last twelve months, compared to 15.0% in the previous year, indicating reduced profitability for shareholders[29]. - Average Invested Capital for the last twelve months was $661,338,000, compared to $626,963,000 in the previous year, reflecting an increase of 5.5%[31].

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 Investor Conference - MYR Group will attend the Bank of America Power, Utilities & Alternative Energy investor conference on May 29, 2025, in New York City [1] - The company's CEO, Rick Swartz, and CFO, Kelly Huntington, will meet with institutional investors during the conference [1] - This event is exclusively available to Bank of America clients [1]

Group 1 - MYR Group Inc. is a holding company specializing in electrical contracting services in the United States and Canada, focusing on Transmission & Distribution (T&D) and Commercial & Industrial (C&I) segments [2] - The company will participate in the KeyBanc Industrials & Basic Materials investor conference on May 28, 2025, where its CEO and CFO will meet with institutional investors [1] - MYR Group's T&D segment offers comprehensive services including design, engineering, procurement, construction, upgrade, maintenance, and repair for electric transmission and distribution networks, as well as clean energy projects [2] Group 2 - The C&I segment of MYR Group provides a wide range of services for commercial and industrial wiring, including installations for airports, hospitals, data centers, and clean energy projects [2] - MYR Group's customer base includes investor-owned utilities, cooperatives, private developers, government-funded utilities, and general contractors [2] - The company emphasizes its expertise in completing electrical installations of various types and sizes, catering to diverse sectors [2]

Core Viewpoint - MYR Group (MYRG) is positioned to continue its earnings-beat streak, having shown significant surprises in recent earnings reports, particularly in the electric construction industry [1]. Earnings Performance - In the most recent quarter, MYR reported earnings of $0.99 per share, exceeding the expected $0.30 per share, resulting in a surprise of 230% [2]. - For the previous quarter, MYR's earnings were $0.65 per share against an expectation of $0.25 per share, leading to a surprise of 160% [2]. Earnings Estimates and Predictions - Recent estimates for MYR have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [5]. - The current Earnings ESP for MYR is +8.13%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - MYR holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, indicates a high probability of beating earnings estimates [8]. - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% success rate in producing positive surprises [6]. Upcoming Earnings Report - The next earnings report for MYR is expected to be released on April 30, 2025 [8].

THORNTON, Colo., April 16, 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 first quarter 2025 results on Wednesday, April 30, 2025, after the market closes. In conjunction with the release, MYR Group has scheduled a conference call and simultaneous webcast to discuss results on Thursd ...

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].