MYR Group Inc. Announces Fourth-Quarter and Full Year 2025 Results

Core Insights - MYR Group Inc. reported strong financial results for the fourth quarter and full year of 2025, with annual revenues reaching $3.66 billion, a 8.8% increase from 2024 [2][13]. Fourth Quarter 2025 Highlights - Fourth quarter revenues were $973.5 million, up $143.7 million or 17.3% compared to Q4 2024 [3]. - Net income for the fourth quarter was $36.5 million, a 129.1% increase from $16.0 million in Q4 2024, translating to $2.33 per diluted share [12][7]. - The consolidated gross profit for Q4 2025 was $111.3 million, compared to $85.9 million in Q4 2024, with a gross margin increase to 11.4% from 10.4% [4]. - The backlog at the end of Q4 2025 was $2.82 billion, reflecting a 9.6% increase from $2.58 billion at the end of Q4 2024 [22]. Full Year 2025 Highlights - Full year revenues were $3.66 billion, an increase of $295.6 million from $3.36 billion in 2024 [13]. - Full year net income was $118.4 million, or $7.53 per diluted share, compared to $30.3 million, or $1.83 per diluted share, in 2024 [21]. - The consolidated gross profit for the full year was $423.8 million, up from $290.3 million in 2024, with a gross margin increase to 11.6% from 8.6% [14]. - The T&D segment reported revenues of $2.00 billion, an increase of $121.9 million from 2024, while the C&I segment reported revenues of $1.66 billion, an increase of $173.6 million [13]. Management Comments - The President and CEO of MYR Group expressed confidence in the company's performance, citing increased electrification demand and ongoing investment in electrical infrastructure as key drivers for future success [2]. Operating Income Margins - The T&D operating income margin for Q4 2025 was 7.4%, up from 6.7% in Q4 2024, while the C&I operating income margin increased to 6.6% from 3.9% in the same period [5][6]. - For the full year, T&D operating income margin was 7.9%, compared to 3.7% in 2024, and C&I operating income margin was 5.9%, up from 3.2% [15][16]. Expenses and Interest - Selling, general and administrative expenses increased to $64.6 million in Q4 2025 from $56.7 million in Q4 2024, primarily due to higher employee compensation costs [8]. - Interest expense decreased to $0.9 million in Q4 2025 from $2.2 million in Q4 2024, attributed to lower interest rates and reduced debt levels [9]. Tax Expenses - The effective tax rate for Q4 2025 was 21.2%, down from 40.9% in Q4 2024, due to changes in state tax rates and lower permanent difference items [11]. Balance Sheet - As of December 31, 2025, MYR had total assets of $1.64 billion and total shareholders' equity of $660.4 million [39]. - The company had $408.3 million of borrowing availability under its revolving credit facility and $150.2 million in cash and cash equivalents [23].