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Core Insights - 1060 Capital Management has sold its entire stake in MYR Group, amounting to a net change of $5.9 million, during the third quarter [1][2] - MYR Group's stock has increased by 52.6% over the past year, significantly outperforming the S&P 500, which rose about 13% in the same period [3] Company Overview - MYR Group is a leading provider of electrical construction services, focusing on transmission, distribution, and commercial/industrial projects [5] - The company serves a diverse customer base, including investor-owned utilities, cooperatives, independent power producers, government agencies, and general contractors in the U.S. and Canada [5] - As of the latest market close, MYR Group's stock price is $229.44, with a market capitalization of $3.6 billion, trailing twelve months (TTM) revenue of $3.5 billion, and TTM net income of $97.8 million [4] Financial Performance - MYR Group reported third-quarter revenue of $950.4 million, reflecting a 7% year-over-year increase [8] - Gross margins expanded to 11.8% from 8.7%, and EBITDA nearly doubled to $62.7 million, with net income reaching a record $32.1 million [8] - Free cash flow has also strengthened materially, indicating robust financial health [8] Investment Context - The decision by 1060 Capital to divest from MYR Group aligns with its strategy of cycling out of investments where original catalysts have played out [6] - MYR Group's stock price nearing an all-time high suggests fewer immediate opportunities for gains compared to other potential investments [6][9]

分组1 - MYR Group (MYRG) reported quarterly earnings of $1.7 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, and showing a significant improvement from a loss of $0.91 per share a year ago, resulting in an earnings surprise of +8.97% [1] - The company achieved revenues of $900.33 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.74%, and reflecting a year-over-year increase from $828.89 million [2] - MYR has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has gained approximately 33.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.92 on revenues of $921.83 million, while for the current fiscal year, it is $6.59 on revenues of $3.46 billion [7] - The Electric Construction industry, to which MYR belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Group 1: Stocks with Increased Earnings Estimates - E.W. Scripps Company (SSP) has seen a 14.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - MYR Group Inc. (MYRG) has experienced a nearly 6% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Swedbank AB (publ) (SWDBY) has had a 9.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Postal Realty Trust, Inc. (PSTL) has seen a 5.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Peakstone Realty Trust (PKST) has experienced a 14.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Financial Data and Key Metrics Changes - The company's first quarter 2025 revenues were $834 million, an increase of $18 million or 2.2% compared to the same period last year [10] - Net income for the first quarter was $23 million, compared to $19 million for the same period last year, with net income per diluted share increasing by 29% to $1.45 [15] - EBITDA for the first quarter was $50 million, up from $40 million in the same period last year [15] - Operating cash flow was $83 million, significantly higher than $8 million for the same period last year [16] - Free cash flow was $70 million, compared to negative free cash flow of $18 million for the same period last year [16] Business Segment Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues were $462 million, a decrease of 5.8% year-over-year, with transmission revenues at $270 million and distribution revenues at $192 million [10] - Commercial and Industrial (C&I) revenues were $372 million, an increase of 14.4% year-over-year, driven by fixed price contracts and T&E contracts [11] - T&D operating income margin improved to 7.8% from 6.1% year-over-year, while C&I operating income margin increased to 4.7% from 3.5% [12] Market Data and Key Metrics Changes - Total backlog as of March 31, 2025, was $2.64 billion, a 9% increase from the previous year, with T&D segment backlog at $873 million and C&I segment backlog at $1.77 billion [15] - The utility market is seeing significant investments, with new transmission projects approved amounting to $5.9 billion and additional plans of $6.7 billion [18][19] Company Strategy and Development Direction - The company aims to remain a strong partner by executing projects with superior quality and strategically pursuing new opportunities [8] - There is a commitment to operational consistency and long-term growth, with a focus on maintaining strong customer relationships [8][26] - The company is monitoring and pursuing project opportunities related to electrical infrastructure expansion in the U.S. and Canada [19] Management's Comments on Operating Environment and Future Outlook - Management noted that there have been no significant pullbacks from clients despite discussions around tariffs and inflation [30] - The company remains optimistic about the market, expecting continued growth in core segments, particularly in data centers and clean energy [23][24] - Management emphasized the importance of balancing organic growth, acquisitions, and share repurchase strategies [31][39] Other Important Information - The effective tax rate for the first quarter was 28.9%, up from 18% in the same period last year, primarily due to the absence of stock compensation excess tax benefits [14] - The company has a strong funded debt to EBITDA leverage ratio of 0.68 times as of March 31, 2025, indicating a solid financial position [17] Q&A Session Summary Question: How is the backlog and pipeline of opportunities on the C&I side? - Management reported active conversations with clients and no signs of pullback, indicating a positive outlook for the market [30] Question: What are the capital allocation priorities for the rest of the year? - The focus remains on supporting organic growth and being positioned for potential acquisitions, with no new share repurchase program announced at this time [31][32] Question: Can you confirm the margin targets for the year? - Management expects to maintain margins in the mid-range of their target of 7% to 10.5% [42] Question: How are tariffs impacting the cost profile, particularly on the C&I side? - Management acknowledged potential impacts from tariffs but emphasized that they are monitoring the situation closely [66] Question: What is the outlook for revenue growth in the T&D segment? - Management anticipates higher single-digit growth for the core T&D segment, excluding solar projects, which are expected to be a headwind [57][58]

Core Viewpoint - MYR Group (MYRG) reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and showing an increase from $1.12 per share a year ago, indicating a 17.89% earnings surprise [1][2] Financial Performance - MYR posted revenues of $833.62 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.16%, compared to $815.56 million in the same quarter last year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates three times and topped revenue estimates once [2] Stock Performance - MYR shares have declined approximately 15.6% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $826.3 million, and for the current fiscal year, it is $6.22 on revenues of $3.43 billion [7] - The estimate revisions trend for MYR is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electric Construction industry, to which MYR belongs, is currently ranked in the top 2% of over 250 Zacks industries, suggesting strong performance potential [8]