MYRG
Myr Group INC
NASDAQ
8-K: MYR Group Inc. Reports Record Revenue and Strong Backlog in 2023, Driven by Increased Electrification
Sentiment:
Investor Presentation
5 March 2024 4:06 PM
MYR Group Inc. achieved record revenue in 2023, driven by strong performance in both its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) segments, and is well-positioned for continued growth.
Better than expected
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.
Summary
- MYR Group Inc. reported record full-year revenue of $3.64 billion in 2023, a 21% increase from 2022.
- The company's Transmission & Distribution (T&D) segment achieved record revenue of $2.09 billion, while the Commercial & Industrial (C&I) segment reached $1.55 billion in revenue.
- MYR Group's backlog stands at $2.51 billion, indicating strong future demand for its services.
- The company's financial performance also includes record net income of $91.0 million, earnings per diluted share of $5.40, and EBITDA of $188.2 million.
- The company has a strong balance sheet with $442 million in availability under its $490 million credit facility and a low debt leverage ratio of 0.19x funded debt to LTM EBITDA.
- MYR Group is benefiting from increased spending on electrical infrastructure, driven by clean energy initiatives and government infrastructure programs.
- The company is well-diversified across its core markets, including data centers, transportation, clean energy, and healthcare.
Sentiment
Score: 9
Explanation: The document presents a very positive outlook with record financial results, strong backlog, and a favorable market environment. The company's strategic initiatives and financial strength suggest a high likelihood of continued success.
Positives
- MYR Group has demonstrated strong organic and acquisitive growth.
- The company has a superior safety culture, exceeding industry standards with a TCIR of 1.13 and LTIR of 0.14 in 2023.
- MYR Group is an essential clean energy contractor, supporting the clean energy transformation.
- The company has extensive resources and expertise, including a dedicated workforce of 9,000+ employees and a large specialized fleet.
- MYR Group has long-standing customer relationships, some held for over 50 years.
- The company has an experienced leadership team with an average of 28 years of industry experience.
- The company is well-positioned to benefit from increased infrastructure spending and clean energy initiatives.
- MYR Group has a strong financial position with a stable balance sheet.
- The company has a centralized operation for greater efficiency and cross-collaboration.
- MYR Group has a reputation for excellence with customers, with more than 90% return clients in both segments.
Negatives
- C&I projects have experienced slight impacts due to supply chain disruptions.
- The company's free cash flow is negative at -$13.7 million for the full year 2023.
- The American Institute of Architects reported soft business conditions in December, with billings at architecture firms declining for eight months of 2023.
Risks
- Forward-looking statements are subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties.
- Supply chain disruptions could continue to impact C&I projects.
- Environmental regulations, labor shortages, and equipment procurement bottlenecks could increase lead times for solar projects.
- The company's future performance is dependent on the continued investment in electrical infrastructure and clean energy initiatives.
Future Outlook
MYR Group is well-positioned for continued growth, driven by strong market demand, government infrastructure spending, and clean energy initiatives. The company plans to continue to expand both organically and through strategic acquisitions.
Management Comments
- Rick Swartz, President and CEO, stated that the company's financial performance illustrates the overall strength of its core markets and the continued demand and investment in electrical infrastructure.
- Management believes the company's strong balance sheet will enable it to meet working capital needs, support organic growth, pursue acquisitions, and opportunistically repurchase shares.
Industry Context
The announcement aligns with the broader industry trend of increased investment in electrical infrastructure, driven by the need to modernize the grid, integrate renewable energy sources, and support the growing demand for electricity. The company is well-positioned to capitalize on these trends.
Comparison to Industry Standards
- MYR Group's 2023 revenue growth of 21% significantly outpaces the overall distribution spend increase of 7% in 2022 reported by The C Three Group.
- The company's 38.57% CAGR in dividend-adjusted stock return from 2019 to 2023 is competitive with peers such as EME (30.04%), PWR (49.02%), MTZ (13.14%), and DY (15.94%).
- MYR Group's 3-year average ROIC of 18.3% is higher than EME (31.4%), DY (10.6%), PWR (7.2%), and MTZ (12.3%).
- The company's strong backlog of $2.51 billion indicates a robust pipeline of future projects, which is a positive sign compared to industry averages.
Stakeholder Impact
- Shareholders are likely to benefit from the company's strong financial performance and growth prospects.
- Employees will benefit from the company's investment in training and development.
- Customers will benefit from the company's reliable and efficient services.
- Suppliers will benefit from the company's continued growth and demand for materials and services.
Next Steps
- The company will continue to execute its strategic plan, focusing on organic growth, strategic acquisitions, and prudent capital returns.
- MYR Group will continue to invest in its people, equipment, and technology to support future growth.
- The company will continue to monitor and respond to market trends and opportunities.
Key Dates
- January 2022: MYR Group acquired the Powerline Plus Companies.
- February 24, 2023: Rick Swartz became CEO of MYR Group Inc.
- November 1, 2023: MYR Group authorized a $75 million share repurchase program.
- December 31, 2023: MYR Group's T&D and C&I segment backlogs were reported.
- March 5, 2024: MYR Group posted investor presentation materials on its website.
Keywords
electrical construction, infrastructure, transmission, distribution, commercial, industrial, clean energy, renewable energy, data centers, backlog, revenue, EBITDA, electrification
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 4:08 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.