MYR(US:MYRG)2025-05-01 15:02Financial 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 year-over-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 while executing projects with superior quality, focusing on operational consistency and long-term growth [8][9] - There is a commitment to strategically pursue new opportunities in response to growing electrification demand [8] - The company plans to continue investing in the safety and development of its teams, which are seen as critical to success [26] Management's Comments on Operating Environment and Future Outlook - Management noted that conversations with clients remain active, with no significant pullback observed despite discussions around tariffs and inflation [31] - The company expects to maintain a mid-range margin profile for the year, targeting 7% to 10.5% [43] - Management remains optimistic about growth opportunities in core markets, particularly in data centers and clean energy [23][24] Other Important Information - 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] - The company has exhausted its current share repurchase program, with no new program announced at this time, focusing instead on organic growth and potential acquisitions [32][33] Q&A Session Summary Question: Inquiry about C&I backlog and pipeline of opportunities - Management indicated active conversations with clients and no observed pullback in the market, maintaining a positive outlook [31] Question: Capital allocation priorities and share repurchase plans - The company prioritizes growth and is open to share repurchase if market conditions allow, but no new program is currently in place [32][33] Question: Impact of tariffs on cost profile and margins - Management acknowledged potential impacts from tariffs but emphasized that current contracts have stronger language to mitigate risks [67][68] Question: Future revenue growth expectations - Management expects higher single-digit growth for the core T&D segment, excluding solar, with a focus on maintaining margin profiles [57][58] Question: Details on a sizable transmission project in Virginia - The project is classified as midsized, with revenue expected to be recognized by the end of the year or early next year [66]