Download PDF

1. Company Snapshot

1.a. Company Description

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada.It operates in two segments, Transmission and Distribution, and Commercial and Industrial.The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, renewable power facilities, and limited gas construction services, as well as emergency restoration services in response to hurricane, ice, or other storm related damages.


This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors.The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of traffic networks, bridge, roadway, and tunnel lighting for airports, hospitals, data centers, hotels, stadiums, convention centers, renewable energy projects, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities, and transportation control and management systems.This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers.


The company was founded in 1891 and is headquartered in Henderson, Colorado.

Show Full description

1.b. Last Insights on MYRG

MYR Group Inc.'s recent performance has been driven by a series of positive developments. The company's Q1 2025 earnings beat expectations, with a quarterly earnings of $1.45 per share, surpassing the Zacks Consensus Estimate of $1.23 per share. This strong earnings performance has contributed to the company's upgrade to a Zacks Rank #1 (Strong Buy). Additionally, MYR Group has been actively engaging with institutional investors, attending various conferences such as the Bernstein's Annual Strategic Decisions Conference, KeyBanc Industrials & Basic Materials Conference, Bank of America Power, Utilities & Alternative Energy Conference, Stifel 2025 Boston Cross Sector 1x1 Conference, and 2025 Wells Fargo Industrials & Materials Conference.

1.c. Company Highlights

2. MYR Group's Q3 2025 Earnings: A Strong Performance

The company's third-quarter 2025 revenues were $950 million, a 7% increase from the same period last year, driven by growth in both Transmission and Distribution (T&D) and Commercial and Industrial (C&I) segments. The gross margin was 11.8%, compared to 8.7% in the same period last year, driven by improved productivity, favorable change orders, and job closeouts. Net income was a record $32 million, up 215% from last year, with net income per diluted share of $2.05, beating analyst estimates of $1.82.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth:: Q3 2025 revenues reached $950M, a 7% YoY increase, driven by 4% growth in T&D ($503M) and 10% in C&I ($447M).
  • Gross Margin Expansion:: Gross margin improved to 11.8% (vs. 8.7% last year), fueled by productivity gains and favorable change orders.
  • Record Net Income:: Net income hit $32M, a 215% YoY surge, with $2.05 per diluted share, reflecting strong margin expansion.
  • Backlog Growth:: Total backlog rose to $2.66B (+2.5% YoY), with C&I ($1.73B) and T&D ($929M) segments showing resilience.
  • 2026 Growth Outlook:: 10% revenue growth target, evenly split between C&I and T&D, with C&I margins projected at 5-7.5%.

Segment Performance

T&D revenues were $503 million, up 4%, with transmission and distribution projects contributing to the increase, while C&I revenues were $447 million, up 10%, primarily due to growth in fixed-price contracts. Operating income margin for T&D was 8.2%, up from 3.6% last year, while C&I operating income margin was 6.4%, up from 5.0%. The increased margin range in C&I reflects both market conditions and execution.

Growth Prospects

The company's backlog was $2.66 billion, up 2.5% from last year, with $929 million in T&D and $1.73 billion in C&I. The company expects 10% revenue growth for next year, with C&I margins in the 5% to 7.5% range. Data centers are a growing market, but the company is focused on multiple core markets, including wastewater, hospitals, and solar.

Valuation and Capital Allocation

With a P/E Ratio of 32.32 and an EV/EBITDA of 16.14, the market is pricing in a certain level of growth. The company's ROIC is 12.02%, indicating efficient use of capital. The capital allocation strategy prioritizes growth, focusing on organic growth through capital expenditures, which could reach 3% of revenue, and acquisitions. The company has a $75 million buyback program but prioritizes directing capital towards growth.

Labor Availability and Market Conditions

Regarding labor availability for the T&D segment, there are concerns about meeting demand due to labor and material shortages. However, the company has early conversations with clients, and they are positive. The company has leverage in pricing for skilled labor, but over 90% of clients are return customers, so it aims to treat them fairly while enhancing margins through productivity.

Outlook

The company expects high single-digit growth, excluding solar, and T&D and C&I segments. For 2026, the company forecasts 10% overall revenue growth, equally spread between C&I and T&D. Analysts estimate next year's revenue growth at 9.7%, indicating a relatively positive outlook.

3. NewsRoom

Card image cap

Edgestream Partners L.P. Makes New $1.56 Million Investment in MYR Group, Inc. $MYRG

Dec -06

Source: defenseworld.net

Card image cap

ACK Asset Management LLC Sells 13,900 Shares of MYR Group, Inc. $MYRG

Nov -28

Source: defenseworld.net

Card image cap

MYR Group Inc. to Attend Oppenheimer Winter Industrial Virtual Summit in December

Nov -18

Source: globenewswire.com

Card image cap

Why One Fund Exited a $6 Million MYR Group Stake Last Quarter Amid Stock's 50% Rally

Nov -16

Source: fool.com

Card image cap

Third Avenue Management Exits Deutsche Bank AG, Impacting Portfolio by -6.22%

Nov -14

Source: gurufocus.com

Card image cap

MYR Group Inc. to Attend Bernstein Insights Industrials Forum in December

Nov -12

Source: globenewswire.com

Card image cap

Y Intercept Hong Kong Ltd Buys Shares of 3,643 MYR Group, Inc. $MYRG

Nov -06

Source: defenseworld.net

Card image cap

MYR Group Inc. to Attend UBS Global Industrials and Transportation Conference in December

Nov -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.93%)

6. Segments

Transmission and Distribution

Expected Growth: 6.5%

Transmission and Distribution segment of MYR Group Inc. grew 6.5% driven by increasing demand for electricity infrastructure, government investments in grid modernization, and rising renewable energy integration. Additionally, the company's strategic acquisitions and organic growth initiatives contributed to the segment's expansion.

Commercial and Industrial

Expected Growth: 7.5%

MYR Group Inc.'s Commercial and Industrial segment growth of 7.5% is driven by increasing demand for electrical infrastructure, renewable energy projects, and data center construction. Additionally, the segment benefits from a strong backlog, strategic acquisitions, and a growing presence in the industrial and manufacturing sectors.

7. Detailed Products

Transmission and Distribution Services

MYR Group Inc. provides transmission and distribution services, including the construction and maintenance of high-voltage transmission lines, substations, and distribution systems.

Substation Construction and Maintenance

MYR Group Inc. offers substation construction and maintenance services, including the design, installation, and maintenance of electrical substations.

Distribution Line Construction and Maintenance

MYR Group Inc. provides distribution line construction and maintenance services, including the installation and maintenance of overhead and underground distribution lines.

Transmission Line Construction and Maintenance

MYR Group Inc. offers transmission line construction and maintenance services, including the installation and maintenance of high-voltage transmission lines.

Electrical Testing and Commissioning

MYR Group Inc. provides electrical testing and commissioning services, including the testing and commissioning of electrical equipment and systems.

Storm Response and Restoration

MYR Group Inc. offers storm response and restoration services, including the restoration of electrical infrastructure damaged by severe weather events.

8. MYR Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for MYR Group Inc. is medium due to the availability of alternative electrical construction services. While there are some substitutes, they are not highly attractive, and the company's strong brand and reputation help to mitigate the threat.

Bargaining Power Of Customers

The bargaining power of customers for MYR Group Inc. is low due to the company's strong relationships with its clients and its ability to provide customized solutions. This reduces the customers' ability to negotiate prices or demand better services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for MYR Group Inc. is medium due to the company's dependence on a few key suppliers for materials and equipment. While the company has some negotiating power, the suppliers also have some bargaining power due to the specialized nature of the products.

Threat Of New Entrants

The threat of new entrants for MYR Group Inc. is low due to the high barriers to entry in the electrical construction industry. The company's strong brand, reputation, and expertise also make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry for MYR Group Inc. is high due to the competitive nature of the electrical construction industry. The company faces intense competition from established players, and the market is highly fragmented, leading to a high level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.80%
Debt Cost 9.22%
Equity Weight 93.20%
Equity Cost 9.42%
WACC 9.41%
Leverage 7.30%

11. Quality Control: MYR Group Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AECOM

A-Score: 5.5/10

Value: 3.5

Growth: 5.7

Quality: 5.2

Yield: 1.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
API Group

A-Score: 5.4/10

Value: 2.5

Growth: 6.4

Quality: 6.4

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Dycom Industries

A-Score: 5.0/10

Value: 2.4

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
TopBuild

A-Score: 4.8/10

Value: 3.5

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
MYR Group

A-Score: 4.7/10

Value: 3.2

Growth: 4.9

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Construction Partners

A-Score: 4.5/10

Value: 1.5

Growth: 8.6

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

228.54$

Current Price

228.54$

Potential

-0.00%

Expected Cash-Flows