MYR(US:MYRG)2025-07-31 15:02Financial Data and Key Metrics Changes - The company's second quarter 2025 revenues were $900 million, an increase of $71 million or 8.6% compared to the same period last year [10] - Net income for the second quarter was $27 million compared to a net loss of $15 million for the same period last year [14] - EBITDA for the second quarter was $56 million compared to negative $5 million for the same period last year [14] - Operating cash flow was $33 million compared to $23 million for the same period last year [15] - Free cash flow was $12 million compared to $3 million for the same period last year [15] - Total backlog as of June 30, 2025, was $2.64 billion, 4% higher than a year ago [14] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues were $506 million, an increase of 10% compared to the same period last year, with $305 million from transmission and $201 million from distribution [10] - Commercial and Industrial (C&I) revenues were $394 million, an increase of 6% compared to the same period last year [11] - T&D operating income margin was 8% for 2025 compared to an operating loss margin of 1.8% for the same period last year [12] - C&I operating income margin was 5.6% for 2025 compared to 0.4% for the same period last year [12] Market Data and Key Metrics Changes - The demand for electricity continues to drive healthy bidding activity across both business segments [8] - A Deloitte report forecasts $1.4 trillion of capital investments in the U.S. power sector from 2025 to 2030, with power demand expected to increase by 10% to 17% from 2024 levels [18][19] - Non-residential construction spending in the U.S. increased by 3.9% from February 2024 to February 2025 [22] Company Strategy and Development Direction - The company emphasizes grid modernization and hardening as strong market drivers [9] - The focus remains on collaborating closely with customers and delivering safe, quality, and consistent results [9] - The company is strategically pursuing new opportunities while maintaining strong customer relationships [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing success of chosen markets due to increased electrification and investments in electrical infrastructure [9] - The company remains proactive and disciplined in adapting to market conditions and responding to industry changes [26] - Management highlighted the importance of investing in teams to drive value for customers and communities [26] Other Important Information - The company authorized a new $75 million share repurchase program, replacing the prior program [16] - The funded debt to EBITDA leverage ratio was 0.46x as of June 30, 2025 [16] Q&A Session Summary Question: Clarification on the new MSA with Xcel Energy - Management confirmed that the MSA is new scope and additional to existing agreements [29][30] Question: Inquiry about C&I backlog and its sequential decline - Management explained that the backlog is typically lumpy and reflects the normal progression of work [31][32] Question: Discussion on business footprint expansion and future MSA announcements - Management indicated that they are always looking for MSA opportunities while also pursuing other project types [36] Question: Update on solar market contributions to revenue - Management noted that solar work has declined to 4% of T&D revenues, with ongoing selective engagement in solar projects [49] Question: Capital allocation outlook regarding M&A versus buybacks - Management stated they are looking for the right acquisition opportunities while also considering stock buybacks [52][53] Question: Inquiry about investment spending in response to demand - Management confirmed they are monitoring capital expenditures but do not anticipate a significant increase [59] Question: Impact of tariffs and supply chain on project timelines - Management reported that while clients are issuing early notices to proceed, they have not seen significant project delays [60] Question: Update on growth expectations for T&D - Management maintained expectations for high single-digit growth in T&D for the year, excluding certain headwinds [66]