MYR Group (NasdaqGS:MYRG) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Speaker9Morning, everyone, and welcome to the MYR Group Fourth Quarter 2025 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will hear an automated message advising that your hand is raised. To withdraw your question, pl ...

Financial Performance - For the fourth quarter of 2025, the company reported GAAP EPS of $4.56, up from $2.27 in 2024, and non-GAAP EPS of $4.76, compared to $1.01 in the fourth quarter of 2024 [2][5] - The company paid dividends of $3.01 per share, reflecting a 5.2% increase [3][5] - The full-year non-GAAP EPS for 2025 was $4.76, with GAAP EPS at $4.56 [5] Operational Highlights - The company achieved top-decile reliability performance and high service reliability, with customers experiencing outages only once in nearly two years [6] - Over $4 billion was deployed in capital for grid modernization and energy efficiency programs in 2025 [6] Capital and Investment Plans - The five-year regulated capital plan was raised to approximately $26.5 billion, indicating an 8.3% rate base growth through 2030 [5][8] - Major projects include the $1.8 billion Cambridge underground substation and ongoing work on the Revolution Wind project [12][13] Regulatory Developments - Eversource received approval for performance-based regulation rate adjustments in Massachusetts, including a $55 million increase for NSTAR Electric effective January 1, 2026 [10] - A decision on storm cost prudency in Connecticut is expected in July, which could enable securitization proceeds of up to $1.5 billion [15] Future Guidance - The company provided 2026 EPS guidance of $4.80 to $4.95, not assuming the sale of Aquarion Water [16] - Expected cash needs for the five-year financing plan are approximately $34.5 billion to $35 billion, with cash from operations projected to cover nearly 70% of these needs [18][21] Long-term Outlook - Management anticipates an earnings growth inflection in 2027 and 2028, with long-term EPS growth expectations of 5% to 7% based on 2025 non-GAAP recurring EPS [19]

Core Insights - The article discusses FirstEnergy's investment in upgrading the electric grid to enhance reliability and capacity for growing energy needs in Monmouth County [2][3]. Group 1: Project Overview - Construction for the upgrades began in mid-2025 and is expected to be completed in the spring [1]. - The project is part of a larger $30 million initiative under Energize365, aimed at modernizing the electric grid [3]. Group 2: Infrastructure Improvements - The upgrades include enhancing 10 miles of existing power lines with stronger, modern wire and replacing older wooden poles with more durable materials [7]. - A second set of lines will be added along the corridor to provide multiple pathways for power delivery, improving reliability during outages [7]. Group 3: Benefits of Upgrades - The upgrades are designed to reduce the number of outages and restore service faster when issues occur [8]. - The improvements will prepare the electric system for the increasing energy demands in the area, ensuring a more resilient infrastructure [2][8]. Group 4: Company Commitment - FirstEnergy is committed to integrity, safety, reliability, and operational excellence, serving customers across multiple states with a vast network of transmission lines [5].

Financial Data and Key Metrics Changes - Hubbell reported a 12% total sales growth in Q4 2025, with adjusted operating profit growth of 19% and adjusted earnings per share growth of 15% [5][10] - Organic growth for the fourth quarter was 9%, driven by strong performance in the Electrical Solutions segment and grid infrastructure businesses [5][10] - The company achieved a free cash flow margin of 15% and a return on invested capital of 19% for 2025, indicating strong business model quality [9] Business Line Data and Key Metrics Changes - **Electrical Solutions Segment**: Achieved 7% organic growth and 14% adjusted operating profit growth for the full year 2025, with adjusted operating margins exceeding 20% for the first time [7][8] - **Utility Solutions Segment**: Generated net sales of $936 million in Q4 2025, representing a 10% growth, with grid infrastructure showing strong performance and 12% organic growth [13][15] Market Data and Key Metrics Changes - The utility market remains strong, driven by investments in aging infrastructure and data center build-outs, contributing to robust project activity [5][8] - Grid automation sales declined by 8% in Q4, primarily due to weaker project activity in meters and AMI, although growth in grid protections and controls was noted [15][11] Company Strategy and Development Direction - Hubbell is focused on unifying its Electrical Solutions segment to enhance competitiveness and drive operational efficiencies [7] - The company plans to continue investing in high-return areas and innovative solutions to maintain growth and productivity benefits in 2026 and beyond [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong outlook for 2026, anticipating 5%-7% organic growth across the portfolio, particularly in utility T&D and data center markets [20][22] - The company expects to manage price and productivity effectively to offset inflation while continuing to invest in business growth [23] Other Important Information - Hubbell's acquisition of DMC Power is expected to contribute positively to growth and margins, with ongoing investments in automation and production capacity [8][9] - The company is initiating a 2026 outlook for 7%-9% total sales growth and adjusted earnings per share between $19.15 and $19.85 [22] Q&A Session Summary Question: Can you provide more color on orders and their impact on MRO activity? - Management noted strong order momentum, particularly in T&D and data center markets, with visibility into 2026 remaining positive [27][28] Question: What is the outlook for meters and AMI? - The business is stabilizing after working through backlog, with expectations for modest growth moving forward [31][32] Question: How should we think about margin expansion throughout the year? - Management anticipates solid margin expansion, with Q1 expected to be stronger than typical due to easier year-over-year comparisons [39][45] Question: What is the expectation for raw materials prices and cost inflation? - Anticipated mid-single-digit cost inflation for 2026, with ongoing management of price and productivity to address this [54][70] Question: What is the growth outlook for grid infrastructure? - Management expects high single-digit to low double-digit growth in transmission and substation markets, with continued investment in distribution [60][61] Question: How will free cash flow be utilized? - The company plans to deploy free cash flow for high-quality CapEx, M&A opportunities, and share repurchases [63][65]

Core Insights - Anterix announced a rebranding and new visual identity at DISTRIBUTECH 2026, emphasizing its growth focus on utilizing its licensed 900 MHz spectrum for utility deployment solutions [1][3] - The company aims to enhance grid modernization by providing private wireless connectivity that unifies data and devices, enabling real-time visibility and operational control for utilities [2][3] Company Activities - At DISTRIBUTECH, Anterix will showcase its collaboration with utility leaders and over 125 technology companies in the Anterix Active Ecosystem (AAE), demonstrating the value of private wireless networks [2][3] - The event will feature live demonstrations and discussions on innovative deployment solutions using Anterix's 900 MHz private wireless broadband, with participation from utility partners like Evergy and Xcel Energy [3] Product and Service Offerings - Anterix's solutions include TowerX™ and CatalyX®, which streamline site readiness and enhance infrastructure resilience against high-impact events [6] - The company focuses on improving worker safety and field efficiency through reliable access to critical applications and data, while also scaling innovations such as EV charging and advanced metering [6] Industry Position - Anterix positions itself as a leading connectivity partner for utilities, providing secure and private 900 MHz licensed spectrum that supports digital transformation and operational efficiency [5][7]

Core Insights - The demand for clean electricity is accelerating globally, driven by structural trends and technological advancements, benefiting companies like GE Vernova (GEV) and Public Service Enterprise Group (PEG) from different perspectives [1][2][10] Group 1: Company Profiles - GE Vernova is positioned as a growth-oriented infrastructure provider focused on electrification and transmission modernization, with a recent acquisition enhancing its market leadership [4][5] - Public Service Enterprise has a balanced portfolio of regulated and non-regulated utility assets, providing stable earnings and growth opportunities, supported by favorable wholesale electricity prices [6][7][18] Group 2: Financial Performance - The Zacks Consensus Estimate for GE Vernova's 2026 earnings per share (EPS) is $13, indicating a year-over-year growth of 76.6%, with a long-term earnings growth rate of 18% [9] - The Zacks Consensus Estimate for Public Service Enterprise's 2026 EPS is $4.36, indicating a year-over-year growth of 8.09%, with a long-term earnings growth rate of 7.05% [11] Group 3: Investment and Valuation Metrics - GE Vernova has a total debt to capital ratio of nil, while Public Service Enterprise has a ratio of 57.88% [13] - GE Vernova shares trade at a forward Price/Earnings (P/E) ratio of 51.89X, compared to Public Service Enterprise's P/E of 18.57X [14] - GE Vernova's return on equity (ROE) is 46.91%, significantly higher than Public Service Enterprise's ROE of 12.62% [15] Group 4: Stock Performance - Over the past three months, GE Vernova's shares have increased by 23.7%, while Public Service Enterprise's shares have risen by 1.4% [16] Group 5: Investment Recommendation - Currently, GE Vernova is favored due to its superior earnings growth, price performance, ROE, and better debt position, although both companies hold a Zacks Rank of 3 (Hold) [18]

Core Insights - Littelfuse reported strong fourth-quarter results with revenue of $594 million, a 12% year-over-year increase, and a 7% organic growth rate [2][5]. - The company recorded a non-cash goodwill impairment charge of $301 million related to the IXYS and Dortmund acquisitions, reflecting weaker sales and profitability than originally expected [1][5]. - Adjusted EBITDA margin improved to 20.5%, up 480 basis points, with adjusted diluted earnings per share at $2.69, exceeding the high end of the company's guidance [1][5]. Financial Performance - Revenue for the fourth quarter was $594 million, with a 12% increase year-over-year and a 7% organic growth rate [2][5]. - Adjusted EBITDA margin reached 20.5%, reflecting operational leverage [1]. - Free cash flow was strong at $120 million, with a net debt/EBITDA ratio of 1.2x [5]. Acquisitions and Growth Outlook - The December closing of the Basler Electric acquisition is expected to add $130–$135 million in revenue and $0.10–$0.15 to EPS in 2026 [4][6]. - The acquisition strengthens Littelfuse's position in grid, utility, and data center markets, with a focus on high-power capabilities [6]. - The company anticipates Q1 2026 sales of $625–$645 million and EPS of $2.70–$2.90, driven by strong backlog and bookings momentum [16]. Market Momentum - Management noted broadening momentum beyond a few end markets, with double-digit revenue growth in data centers, grid and utility infrastructure, and renewables [7][9]. - Data center growth was particularly strong, with expectations for it to be a leading growth contributor in 2026 [9]. - Bookings were up 20% in the fourth quarter, indicating a broader-based industrial recovery [10]. Segment Performance - For the full year 2025, revenue grew 9% with an adjusted EBITDA margin expansion of 260 basis points to 20.9% [14]. - Electronics segment sales increased by 21%, with an adjusted EBITDA margin of 23.7% [15]. - Transportation segment sales were up 1%, while industrial segment sales grew by 4%, driven by demand in energy storage and grid infrastructure [15]. Commodity Cost Management - Littelfuse is facing commodity inflation pressures, particularly in copper and ruthenium, and is pursuing alternative sourcing and pricing actions to maintain cost neutrality [13]. - The current commodity-price environment has been factored into first-quarter guidance [13]. Strategic Focus - The company is focusing on high-value and high-growth applications in power semiconductors, particularly in data centers and grid infrastructure [11]. - Littelfuse is optimizing its semiconductor manufacturing footprint to improve resilience and profitability [12].

Core Viewpoint - American Electric Power Company, Inc. (AEP) is recognized as a strong investment option within the utility sector, particularly due to its significant grid modernization efforts and robust capital plans [2][3][4]. Group 1: Investment Ratings and Price Targets - Barclays has raised its price target for AEP from $117 to $121 while maintaining an Equal Weight rating, reflecting a positive outlook ahead of the fourth-quarter earnings [2]. Group 2: Company Initiatives and Growth Drivers - AEP is undertaking one of the largest grid modernization programs in the U.S., focusing on expanding transmission capacity and enhancing reliability, driven by increasing demand from electrification and data centers [3]. - The company's five-year capital plan amounts to $72 billion, which includes commitments for approximately 20 gigawatts of additional power by 2030, fueled by data centers, manufacturing reshoring, and broader economic development [4]. Group 3: Financial Metrics - AEP offers a dividend yield of approximately 3.26%, making it an attractive option for income-focused investors [4].

Core Insights - AES Corporation is a pioneer in battery energy storage systems (BESS), having developed the first utility-scale lithium-ion BESS and installed the first commercial application in Chile in 2009 [1][8] - The company is focused on enhancing grid reliability and resilience through innovative battery systems, especially as renewable energy adoption increases [1] Battery Energy Storage Benefits - Battery energy storage stabilizes both conventional and renewable generation, alleviating pressure on transmission networks and enhancing grid resilience [2] - It allows for a rapid response to disruptions and helps lower electricity costs by storing power during low-price periods and supplying it back when prices are higher [2] Key Projects - AES' L??wa??i Solar + Storage project in Hawaii combines solar generation with battery storage to provide reliable, low-carbon power and reduce fossil fuel reliance [3] - The Bellefield Solar + Storage project in California aims to deliver 1 GW of solar capacity and 1 GW of battery storage, supporting California's clean energy goals [3] - The Luna and LAB Energy Storage projects in Los Angeles County feature a combined capacity of approximately 227 MW and nearly 908 MWh, enhancing grid stability [4] Industry Trends - Companies like Duke Energy and The Southern Company are also investing in battery storage to improve grid stability and optimize renewable energy integration [5][6] - Duke Energy plans to expand its energy storage capacity to over 6,000 MW by 2035 and about 30,000 MW by 2050 [6] Financial Performance - The Zacks Consensus Estimate for AES indicates an 8.44% year-over-year increase in EPS for 2026 [7] - Current estimates show a projected EPS of 2.36 for 2026, with a year-over-year growth estimate of 8.44% [9] Stock Valuation - AES is currently trading at a forward price-to-earnings ratio of 5.92X, significantly lower than the industry average of 15.45X, indicating a potential investment opportunity [10] - Over the past six months, AES shares have increased by 11.3%, outperforming the industry growth of 8.1% [12]

Core Viewpoint - Aecon Group Inc. has successfully completed the acquisition of K.P.C. Power Electrical Ltd. and K.P.C. Energy Metering Solutions Ltd., enhancing its capabilities in the utilities sector and positioning itself for future growth opportunities in grid modernization and infrastructure upgrades [1][2]. Company Overview - Aecon Group Inc. is a North American construction and infrastructure development company that provides integrated solutions across various sectors, including Civil, Urban Transportation, Nuclear, Utility, and Industrial [3]. - Aecon Utilities, a subsidiary of Aecon, specializes in utility infrastructure solutions in Canada and the U.S., focusing on electrical transmission, renewables, telecommunications, and pipeline distribution [4]. KPC Overview - KPC offers utility contracting solutions, specializing in high-voltage testing, commissioning, and energy metering solutions, with a strong commitment to safety and quality [5].