MYRG
Myr Group INC
NASDAQ
10-Q: MYR Group Inc. Reports Increased Revenue and Net Income for Q1 2025
Sentiment:
Quarterly Report
30 April 2025 8:05 PM
MYR Group Inc. announces a rise in both revenue and net income for the first quarter of 2025, driven by growth in the Commercial and Industrial segment and improved gross margins.
Better than expected
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.
Summary
- MYR Group Inc. reported contract revenues of $833.6 million for the three months ended March 31, 2025, a 2.2% increase compared to $815.6 million for the same period in 2024.
- Net income for Q1 2025 was $23.3 million, up from $18.9 million in Q1 2024.
- The Transmission and Distribution (T&D) segment contributed $461.8 million in revenue, while the Commercial and Industrial (C&I) segment generated $371.9 million.
- Gross margin increased to 11.6% in Q1 2025 from 10.6% in Q1 2024.
- Backlog stood at $2.64 billion as of March 31, 2025, compared to $2.58 billion at December 31, 2024.
- The company repurchased 639,207 shares of its common stock under a repurchase program at a weighted-average price of $117.33 per share.
- EBITDA for the quarter was $50.2 million, compared to $39.8 million for the same period last year.
Sentiment
Score: 8
Explanation: The report indicates positive financial performance with increased revenue, net income, and improved gross margins. The company's strong backlog and share repurchase program further contribute to a positive outlook.
Positives
- Increased contract revenues and net income year-over-year.
- Improved gross margin indicating better project profitability.
- Strong backlog providing visibility into future revenue.
- Successful share repurchase program demonstrating confidence in the company's value.
- Growth in the C&I segment, diversifying revenue streams.
- Increased EBITDA reflecting improved operational performance.
Negatives
- Decrease in revenue from transmission projects, primarily related to clean energy projects.
- Net changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.1%.
Risks
- The timing of multi-year transmission project awards and substantial construction activity is difficult to predict due to regulatory requirements and permitting.
- Prolonged uncertainty in the business environment and higher inflation could impact customer demand and profitability.
- The company faces risks related to project performance, attracting and retaining qualified personnel, and potential liabilities from lawsuits or indemnity claims.
- The company is subject to risks associated with climate change including financial risks and physical risks such as an increase in extreme weather events.
Future Outlook
The company anticipates continued bidding activity on large transmission projects and expects strong activity in electric distribution markets. They also foresee opportunities in the C&I segment, particularly in data centers, transportation, healthcare, clean energy, and warehousing. Legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand.
Management Comments
- We believe the increasing demand for electricity associated with additional power requirements, driven by increased electrification associated with new technologies, including the emergence and adoption of artificial intelligence technologies as well as increased power needs connected to the reshoring of manufacturing, will require significant investment by our customers in both of our reporting segments.
- We continue to implement strategies that are designed to further expand our capabilities and effectively allocate capital.
Industry Context
MYR Group's focus on both T&D and C&I segments positions it to benefit from increased infrastructure spending and the growing demand for electricity driven by factors like renewable energy projects, data center construction, and the electrification of various sectors. The company's strong backlog and financial position allow it to compete effectively in these markets.
Comparison to Industry Standards
- Comparing MYR Group to companies like Quanta Services (PWR) and MasTec (MTZ), which also operate in the infrastructure construction sector, MYR Group's Q1 2025 revenue growth of 2.2% is within a reasonable range.
- MYR Group's gross margin of 11.6% is competitive with industry averages, though specific project mix and contract types can significantly influence this metric.
- The company's backlog of $2.64 billion provides a solid foundation for future revenue, similar to the project pipelines maintained by its larger competitors.
- MYR Group's EBITDA margin of approximately 6% is comparable to industry peers, reflecting efficient project execution and cost management.
Stakeholder Impact
- Shareholders: Positive impact due to increased profitability and share repurchase program.
- Employees: Potential for increased job security and career opportunities due to company growth.
- Customers: Continued access to reliable and high-quality electrical construction services.
- Suppliers: Stable business relationships and potential for increased demand.
- Creditors: Strong financial performance enhances creditworthiness.
Next Steps
- Continue to execute on existing backlog and pursue new project opportunities in both T&D and C&I segments.
- Manage operating costs and invest in key personnel and equipment.
- Monitor legislative and regulatory developments related to infrastructure and clean energy.
- Evaluate potential acquisition opportunities to expand capabilities and market presence.
Related Party Transactions
- Certain subsidiaries of the Company have ongoing operating leases for facilities that were entered into or extended with third-party companies that, are or were, owned in whole or part, by employees of the subsidiaries.
- Lease expense associated with these leases was $0.6 million for the three months ended March 31, 2025 and $0.6 million for the three months ended March 31, 2024.
- As of March 31, 2025, the minimum lease payments required under these leases totaled $9.3 million, which are due over the next 4.4 years.
Key Dates
- 1995: MYR Group Inc. was established through the merger of long-standing specialty contractors.
- May 31, 2023: The Company entered into a five-year third amended and restated credit agreement.
- April 24, 2024: The 2017 Long-Term Incentive Plan was Amended and Restated.
- February 26, 2025: The Company announced that its Board of Directors had approved a new $75.0 million share repurchase program.
- March 31, 2025: End of the quarterly period.
- April 25, 2025: There were 15,522,834 outstanding shares of the registrant's $0.01 par value common stock.
- April 30, 2025: Date of report filing.
- September 5, 2025: The Repurchase Program will expire on this date, or when the authorized funds are exhausted, whichever is earlier.
- December 15, 2026: The update is effective for annual reporting periods beginning after this date.
- December 15, 2027: The update is effective for interim periods within annual reporting periods beginning after this date.
- December 31, 2027: Performance share awards under the LTIP will cliff vest, if earned, on this date.
Keywords
revenue, net income, backlog, EBITDA, construction, electrical, MYR Group, T&D, C&I, share repurchase
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.
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.
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 4:03 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.
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.
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 4:03 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.
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.
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 4:16 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.