MYR(US:MYRG) Globenewswireยท2025-10-29 20:06Core Insights - MYR Group Inc. reported strong financial performance for the third quarter of 2025, with revenues of $950 million, marking a year-over-year increase in net income, gross profit, gross margin, and EBITDA [1][2][7]. Financial Performance - Third quarter 2025 revenues reached $950.4 million, an increase of $62.4 million compared to the same period in 2024 [2]. - The Transmission and Distribution (T&D) segment generated revenues of $503.4 million, up by $21.5 million year-over-year, driven by a $16.3 million increase in transmission project revenues and a $5.2 million increase in distribution project revenues [2]. - The Commercial and Industrial (C&I) segment reported revenues of $447.0 million, an increase of $40.8 million from the third quarter of 2024 [2]. Profitability Metrics - Consolidated gross profit for the third quarter of 2025 was $111.9 million, compared to $77.3 million in the same quarter of 2024, with gross margin improving to 11.8% from 8.7% [3]. - The increase in gross margin was attributed to better productivity, favorable change orders, and job closeouts, despite some offsetting costs from project inefficiencies and adverse weather [3]. Expenses and Income - Selling, general and administrative expenses (SG&A) rose to $65.9 million in the third quarter of 2025, up from $57.5 million in the same quarter of 2024, primarily due to increased employee compensation costs [4]. - Interest expense decreased to $1.4 million in the third quarter of 2025, down from $2.0 million in the same period of 2024, due to lower interest rates and reduced debt levels [5]. - The income tax expense for the third quarter of 2025 was $12.6 million, with an effective tax rate of 28.3%, compared to a tax benefit of $7.9 million and a rate of 42.5% in the prior year [6]. Net Income and EBITDA - Net income for the third quarter of 2025 was $32.1 million, or $2.05 per diluted share, compared to $10.6 million, or $0.65 per diluted share, for the same period in 2024 [7]. - EBITDA for the third quarter of 2025 was $62.7 million, significantly higher than $37.2 million in the third quarter of 2024 [7]. Year-to-Date Performance - For the first nine months of 2025, MYR reported revenues of $2.68 billion, an increase of $151.8 million compared to the same period in 2024 [9]. - Consolidated gross profit for the first nine months of 2025 was $312.5 million, up from $204.4 million in the same period of 2024, with gross margin increasing to 11.6% from 8.1% [10]. Backlog and Future Outlook - As of September 30, 2025, MYR's backlog was $2.66 billion, a slight increase from $2.64 billion as of June 30, 2025, indicating continued demand for services [15]. - The company is well-positioned to capitalize on long-term growth opportunities driven by the accelerating pace of electrification and the need for resilient infrastructure [1].