MYRG
Myr Group INC
NASDAQ
8-K: MYR Group Announces Mixed Q4 and Full Year 2024 Results; Board Approves $75 Million Share Repurchase Program
Sentiment:
Earnings Release
26 February 2025 4:03 PM
MYR Group reported a decrease in revenue and net income for both the fourth quarter and full year 2024, while also announcing a new $75 million share repurchase program.
Worse than expected
The company's revenue and net income decreased for both the fourth quarter and the full year compared to the previous year.
Delay expected
The C&I segment experienced a decrease in revenue due to the delayed start of certain projects in 2024.
Summary
- MYR Group announced its Q4 and full year 2024 financial results, revealing a decrease in revenues and net income compared to the previous year.
- Fourth-quarter revenues were $829.8 million, a 17.4% decrease from Q4 2023.
- Net income for the quarter was $16.0 million, or $0.99 per diluted share, compared to $24.0 million, or $1.43 per diluted share, in the same period of 2023.
- Full-year revenues totaled $3.36 billion, a 7.7% decrease from 2023.
- Full-year net income was $30.3 million, or $1.83 per diluted share, compared to $91.0 million, or $5.40 per diluted share, for the same period of 2023.
- The company's backlog stood at $2.58 billion as of December 31, 2024.
- A new share repurchase program was approved, authorizing the repurchase of up to $75.0 million of outstanding shares.
- The repurchase program will expire on September 5, 2025, or when the authorized funds are exhausted.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While the company announced a share repurchase program, the financial results show a decline in revenue and net income, offsetting the positive impact of the repurchase announcement.
Positives
- Gross margin increased to 10.4 percent for the fourth quarter of 2024 from 9.7 percent for the fourth quarter of 2023.
- C&I operating income margin was 3.9 percent for the fourth quarter of 2024, compared to 2.1 percent for the fourth quarter of 2023.
- MYR has $354.8 million of borrowing availability under its $490 million revolving credit facility.
Negatives
- Fourth-quarter revenues decreased by 17.4% to $829.8 million compared to Q4 2023.
- Net income for the quarter was $16.0 million, or $0.99 per diluted share, compared to $24.0 million, or $1.43 per diluted share, in the same period of 2023.
- Full-year revenues totaled $3.36 billion, a 7.7% decrease from 2023.
- Full-year net income was $30.3 million, or $1.83 per diluted share, compared to $91.0 million, or $5.40 per diluted share, for the same period of 2023.
- Consolidated gross profit decreased to $85.9 million for the fourth quarter of 2024, compared to $97.5 million for the fourth quarter of 2023.
- T&D operating income margin was 6.7 percent for the fourth quarter of 2024, compared to operating income of 7.2 percent for the fourth quarter of 2023.
Risks
- The amount and timing of share repurchases are subject to market and business conditions, as well as contractual and legal requirements.
- The company is exposed to risks related to project execution, labor costs, and potential contractual disputes, particularly in the T&D segment.
- The forward-looking statements are subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
Future Outlook
The company anticipates robust project opportunities driven by system hardening, grid modernization, technology advancements, transit infrastructure improvements, and decarbonization, providing long-term growth opportunities.
Management Comments
- Rick Swartz, MYR's President and CEO, stated that the company finished 2024 with overall improvement compared to the third quarter.
- Mr. Swartz noted a steady backlog of $2.58 billion reflecting a healthy bidding environment and continued investment in infrastructure.
- Mr. Swartz expressed eagerness to continue serving as a resourceful and committed partner for customers, demonstrating strong project execution, and generating positive returns for shareholders in 2025.
Industry Context
The announcement reflects the ongoing demand for infrastructure development and upgrades in the electric utility and commercial/industrial construction markets, driven by factors like electrification, grid modernization, and clean energy projects. MYR Group's focus on these areas positions it to capitalize on these trends, although project execution and cost management remain critical.
Comparison to Industry Standards
- Comparing MYR Group's performance to competitors like Quanta Services (PWR) and MasTec (MTZ) would provide a more comprehensive view.
- Quanta Services, a larger player in the infrastructure solutions market, often sets the benchmark for revenue growth and project execution.
- MasTec, with its focus on communications, energy, and infrastructure, offers a comparable business model.
- MYR Group's EBITDA margins of 3.5% for the full year 2024 are lower than some of its peers, indicating potential areas for improvement in project profitability and cost control.
Stakeholder Impact
- Shareholders may react positively to the share repurchase program, but negatively to the decreased financial performance.
- Employees may experience uncertainty due to the company's focus on cost management and project execution.
- Customers may benefit from the company's continued investment in infrastructure and commitment to project execution.
Next Steps
- The company intends to fund the share repurchase program with cash on hand and through borrowings under its credit facility.
- MYR will host a conference call on February 27, 2025, to discuss the results.
Key Dates
- February 26, 2025: Date of report and announcement of Q4 and full year 2024 results and share repurchase program.
- February 27, 2025: Conference call to discuss Q4 and full year 2024 results.
- September 5, 2025: Expiration date of the share repurchase program, or when authorized funds are exhausted, whichever is earlier.
Keywords
MYRG
Myr Group INC
NASDAQ
Sector: Industrials
Filings with Classifications
Better than expected
30 April 2025 8:05 PM
Quarterly Report
- The company's net income increased from $18.9 million to $23.3 million year over year.
- The company's gross margin increased from 10.6% to 11.6% year over year.
- The company's EBITDA increased from $39.8 million to $50.2 million year over year.
Better than expected
30 April 2025 4:02 PM
Earnings Release
- The company's revenue, net income, and EBITDA all increased compared to the same period in the previous year, indicating improved financial performance.
Worse than expected
10 March 2025 4:04 PM
Investor Presentation
- Net income, EBITDA, earnings per share, and free cash flow decreased in 2024 compared to 2023.
Worse than expected
5 March 2025 4:29 PM
Proxy Statement
- The company's revenues decreased by 7.7% in 2024 compared to 2023.
- The company's net income decreased significantly in 2024, dropping from $91.0 million in 2023 to $30.3 million.
Worse than expected
26 February 2025 4:08 PM
Annual Results
- The company's revenue decreased by 7.7% to $3.36 billion in 2024 from $3.64 billion in 2023.
- The company's net income decreased significantly to $30.3 million in 2024 from $91.0 million in 2023.
- The company's gross margin decreased to 8.6% in 2024 compared to 10.0% for the year ended December 31, 2023.
Delay expected
26 February 2025 4:08 PM
Annual Results
- The decrease in C&I revenue was primarily due to the delayed start of certain projects in 2024.
Delay expected
26 February 2025 4:03 PM
Earnings Release
- The C&I segment experienced a decrease in revenue due to the delayed start of certain projects in 2024.
Worse than expected
26 February 2025 4:03 PM
Earnings Release
- The company's revenue and net income decreased for both the fourth quarter and the full year compared to the previous year.
Better than expected
6 November 2024 4:04 PM
Investor Presentation
- The company's third quarter performance showed improvement over the second quarter, demonstrating strong project execution in core areas of the business.
Delay expected
30 October 2024 4:06 PM
Quarterly Report
- The company's financial results are being affected by delays due to supply chain disruptions and regulatory slowdowns.
- Schedule extensions caused by owner-furnished panel delays led to increased costs on two clean energy projects.
Worse than expected
30 October 2024 4:06 PM
Quarterly Report
- The company's gross margin and net income were significantly lower than the same period last year due to unfavorable project estimate adjustments.
- The Transmission and Distribution segment experienced a significant decrease in operating income.
- The company's effective tax rate increased due to higher permanent difference items.
Worse than expected
30 October 2024 4:03 PM
Quarterly Report
- The company's third-quarter revenue and net income were lower than the same period last year.
- The company's gross margin decreased compared to the same period last year.
- The company's earnings per share were lower than the same period last year.
Worse than expected
21 August 2024 4:29 PM
Investor Presentation
- The company reported a net loss of $15.3 million in Q2 2024, which is worse than expected due to project timing issues.
Worse than expected
31 July 2024 4:26 PM
Quarterly Report
- The company's net income was significantly lower than expected due to significant changes in project cost estimates.
- The company's gross margin was significantly lower than expected due to significant changes in project cost estimates.
- The company's revenue was lower than expected due to a decrease in revenue on transmission projects, a decrease in C&I revenue, and a decrease in revenue on distribution projects.
Delay expected
31 July 2024 4:26 PM
Quarterly Report
- The company's financial results are expected to continue to be affected by delays and cost volatility through 2024 due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns.
- The company experienced a decrease in C&I revenue due to the delayed start of certain projects.
Delay expected
31 July 2024 4:16 PM
Quarterly Report
- The Commercial and Industrial (C&I) segment reported a decrease in quarterly revenues primarily due to the delayed start of certain projects.
Worse than expected
31 July 2024 4:16 PM
Quarterly Report
- The company reported a net loss of $15.3 million for the second quarter, a significant downturn compared to the net income of $22.3 million in the same period last year.
- EBITDA for the second quarter was ($4.7) million, a substantial decrease from $47.1 million in the second quarter of 2023.
- Gross margin decreased to 4.9% in the second quarter of 2024, down from 10.1% in the second quarter of 2023.
Better than expected
8 May 2024 4:02 PM
Investor Presentation
- The company achieved record revenue and EPS in 2023, exceeding previous results.
- The company's LTM revenue as of March 31, 2024, reached a record high of $3.65 billion.
- The company has a strong backlog of $2.43 billion, indicating future growth potential.
Delay expected
1 May 2024 4:25 PM
Quarterly Report
- The company expects financial results to be affected by delays due to supply chain disruptions and regulatory slowdowns.
- The C&I segment experienced a revenue decrease due to the delayed start of certain projects.
Worse than expected
1 May 2024 4:25 PM
Quarterly Report
- Net income decreased compared to the same quarter last year.
- Project estimate changes negatively impacted gross margin and operating income.
- Backlog decreased from the previous quarter.
Worse than expected
1 May 2024 4:08 PM
Quarterly Report
- Net income decreased from $23.2 million to $18.9 million year-over-year.
- EBITDA decreased from $41.3 million to $39.8 million year-over-year.
- Backlog decreased from $2.67 billion to $2.43 billion year-over-year.
Delay expected
1 May 2024 4:08 PM
Quarterly Report
- The Commercial and Industrial segment experienced a revenue decrease due to the delayed start of certain projects.
Better than expected
5 March 2024 4:06 PM
Investor Presentation
- The company achieved record revenue, net income, earnings per share, and EBITDA for the full year 2023, indicating better than expected results.
- The company's backlog of $2.51 billion demonstrates strong future demand, exceeding expectations.
Worse than expected
28 February 2024 4:16 PM
Annual Results
- The company's gross margin decreased to 10.0% in 2023 from 11.4% in 2022, primarily due to significant changes in estimated gross profit on certain projects.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.