MYR Group Inc. Announces Second Quarter and First Half 2025 Results
THORNTON, Colo., July 30, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. ("MYR or the "Company") (NASDAQ:MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced today its second quarter and first half 2025 financial results.
Highlights for Second Quarter 2025
Quarterly revenues of $900.3 million
Record quarterly net income of $26.5 million, or $1.70 per diluted share
Record quarterly EBITDA of $55.6 million
Backlog of $2.64 billion
Management CommentsRick Swartz, MYR's President and CEO, said, "Our second quarter performance resulted in quarterly revenues of $900 million and backlog of $2.64 billion with net income, consolidated gross profit, gross margin and EBITDA all increasing compared to the same period of 2024." Mr. Swartz continued, "This quarter, we secured multiple master services agreements and new projects across our core markets, further expanding our business footprint. We value the strong relationships we've established with our customers and continue to leverage the full capabilities of MYR Group companies to enhance the value we deliver while strategically positioning ourselves for future growth."
Second Quarter ResultsMYR reported second quarter 2025 revenues of $900.3 million, an increase of $71.4 million, compared to the second quarter of 2024. Specifically, our Transmission and Distribution ("T&D") segment reported quarterly revenues of $506.3 million, an increase of $48.1 million, from the second quarter of 2024, due to an increase of $25.1 million in revenue on distribution projects and an increase of $22.9 million in revenue on transmission projects. Our Commercial and Industrial ("C&I") segment reported quarterly revenues of $394.1 million, an increase of $23.4 million, from the second quarter of 2024.
Consolidated gross profit increased to $103.7 million in the second quarter of 2025, compared to $40.8 million for the second quarter of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.5 percent for the second quarter of 2025 from 4.9 percent for the second quarter of 2024. The increase in gross margin was primarily due to the second quarter of 2024 being negatively impacted by certain T&D clean energy projects and a C&I project. In the second quarter of 2025 gross margin was also positively impacted by better-than-anticipated productivity and a favorable job closeout. These margin increases were partially offset by an increase in costs associated with labor and project inefficiencies and unfavorable change orders. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 1.0 percent and 7.2 percent for the second quarter of 2025 and 2024, respectively.
Selling, general and administrative expenses ("SG&A") increased to $63.3 million in the second quarter of 2025, compared to $61.8 million for the second quarter of 2024. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $5.0 million of contingent compensation expense, related to a prior acquisition, recognized during the second quarter of 2024.
Interest expense increased to $1.9 million in the second quarter of 2025, compared to $1.2 million for the second quarter of 2024. The period-over-period increase was primarily due to higher average outstanding debt balances partially offset by lower interest rates during the second quarter of 2025 as compared to the second quarter of 2024.
Income tax expense was $10.9 million for the second quarter of 2025, with an effective tax rate of 29.2 percent, compared to an income tax benefit of $6.9 million for the second quarter of 2024, with an effective tax rate of 31.0 percent. The period-over-period change in tax rate was primarily due to the reduction of the impact of the global intangible low tax income ("GILTI").
For the second quarter of 2025, net income was $26.5 million, or $1.70 per diluted share, compared to net loss of $15.3 million, or ($0.91) per diluted share, for the same period of 2024. Second quarter 2025 EBITDA, a non-GAAP financial measure, was $55.6 million, compared to ($4.7) million in the second quarter of 2024.
First Half ResultsMYR reported first half 2025 revenues of $1.73 billion, an increase of $89.4 million, compared to the first half of 2024. Specifically, our T&D segment reported revenues of $968.0 million, an increase of $19.4 million, from the first half of 2024, due to an increase of $40.6 million in revenue on distribution projects, partially offset by a decrease of $21.2 million in revenue on transmission projects, primarily related to clean energy. Our C&I segment reported revenues of $765.9 million, an increase of $70.1 million, from the first half of 2024.
Consolidated gross profit increased to $200.6 million in the first half of 2025, compared to $127.1 million in the first half of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.6 percent for the first half of 2025 from 7.7 percent for the first half of 2024. The increase in gross margin was primarily due to the first half of 2024 being negatively impacted by certain T&D clean energy projects and by a C&I project. In the first half of 2025, gross margin was also positively impacted by better-than-anticipated productivity, favorable change orders and a favorable job closeout. These margin increases were partially offset by an increase in costs associated with labor and project inefficiencies and unfavorable change orders. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 1.2 percent and 4.2 percent for the first half of 2025 and 2024, respectively.
SG&A increased to $125.8 million in the first half of 2025, compared to $124.1 million for the first half of 2024. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $8.2 million of contingent compensation expense, related to a prior acquisition, recognized during the first half of 2024.
Interest expense increased to $3.3 million in the first half of 2025, compared to $2.3 million for the first half of 2024. The period-over-period increase was primarily due to higher average outstanding debt balances, partially offset by lower interest rates during the first half of 2025 as compared to the first half of 2024.
Income tax expense was $20.4 million for the first half of 2025, with an effective tax rate of 29.1 percent, compared to income tax benefit of $2.7 million for the first half of 2024, with an effective tax rate of negative 281.9 percent. The period-over-period change in tax rate was primarily due to higher pretax income, lower other permanent difference items and lower stock compensation excess tax benefits.
For the first half of 2025, net income was $49.8 million, or $3.15 per diluted share, compared to $3.7 million, or $0.22 per diluted share, for the same period of 2024.
BacklogAs of June 30, 2025 and March 31, 2025, MYR's backlog was $2.64 billion. As of June 30, 2025, T&D backlog was $926.5 million, and C&I backlog was $1.72 billion. Total backlog as of June 30, 2025 increased $97.7 million, or 3.8 percent, from the $2.54 billion reported as of June 30, 2024.
Balance SheetAs of June 30, 2025, MYR had $383.3 million of borrowing availability under its $490 million revolving credit facility.
Share Repurchase ProgramIn addition, the Company announced today that its Board of Directors approved a new share repurchase program (the "Repurchase Program"), which authorizes the Company to repurchase, in the aggregate, up to $75.0 million of its outstanding shares of common stock from time to time at management's discretion on the open market or in privately negotiated transactions, including through Rule 10b5-1 trading plans, structured transactions or other means in accordance with applicable securities laws. The amount and timing of repurchases are subject to a variety of factors, including market and business conditions, as well as applicable contractual and legal requirements. The Repurchase Program will expire on February 4, 2026, or when the authorized funds are exhausted, whichever is earlier. The Company is not obligated to acquire any specific amount of common stock, and the Company's Board of Directors may modify or terminate the Repurchase Program at any time. The Company intends to fund the Repurchase Program with cash on hand and through borrowings under its credit facility. The Repurchase Program replaces and supersedes the Company's prior $75.0 million repurchase program, under which the Company had exhausted substantially all of the available funds, and such prior repurchase program has been terminated.
Non-GAAP Financial MeasuresTo supplement MYR's financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), MYR uses certain non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. MYR's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
MYR believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view MYR's performance using the same tools that management uses to evaluate MYR's past performance, reportable business segments and prospects for future performance, (iii) publicly disclose results that are relevant to financial covenants included in MYR's credit facility and (iv) otherwise provide supplemental information that may be useful to investors in evaluating MYR.
Conference CallMYR will host a conference call to discuss its second quarter 2025 results on Thursday, July 31, 2025, at 8 a.m. Mountain time. To participate via telephone and join the call live, please register in advance here: https://register-conf.media-server.com/register/BI77f3a6ef1ade4e0b906689884da5e6f6. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode. Participants may access the audio-only webcast of the conference call from the Investors page of MYR Group's website at myrgroup.com. A replay of the webcast will be available for seven days.
About MYR Group Inc. MYR Group is a holding company of leading, specialty electrical contractors providing services throughout the United States and Canada through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). MYR Group subsidiaries have the experience and expertise to complete electrical installations of any type and size. Through their T&D segment they provide services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. Their comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Through their C&I segment, they provide a broad range of services which include the design, installation, maintenance and repair of commercial and industrial wiring generally for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. For more information, visit myrgroup.com.
Forward-Looking StatementsVarious statements in this announcement, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenue, income, capital spending, segment improvements and investments. Forward-looking statements are generally accompanied by words such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "unlikely," or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak only as of the date of this announcement. We disclaim any obligation to update these statements (unless required by securities laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently 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. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Forward-looking statements in this announcement should be evaluated together with the many uncertainties that affect MYR's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A. of MYR's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in any risk factors or cautionary statements contained in MYR's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
MYR Group Inc. Contact:Jennifer Harper, Vice President, Investor Relations & Treasurer, 847-979-5835,
Financial tables follow…
MYR GROUP INC.Consolidated Balance SheetsAs of June 30, 2025 and December 31, 2024
(in thousands, except share and per share data)
June 30,2025
December 31,2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
22,956
$
3,464
Accounts receivable, net of allowances of $2,168 and $1,129, respectively
599,629
653,069
Contract assets, net of allowances of $537 and $422, respectively
347,082
301,942
Current portion of receivable for insurance claims in excess of deductibles
10,131
9,081
Refundable income taxes
4,392
4,638
Prepaid expenses and other current assets
33,416
42,468
Total current assets
1,017,606
1,014,662
Property and equipment, net of accumulated depreciation of $402,519 and $387,223, respectively
281,901
278,226
Operating lease right-of-use assets
45,322
42,648
Goodwill
115,466
112,983
Intangible assets, net of accumulated amortization of $37,584 and $34,573, respectively
75,048
75,691
Receivable for insurance claims in excess of deductibles
34,245
34,553
Deferred income taxes
6,002
5,734
Investment in joint ventures
4,611
3,730
Other assets
6,781
5,832
Total assets
$
1,586,982
$
1,574,059
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
$
4,458
$
4,363
Current portion of operating lease obligations
12,848
12,141
Current portion of finance lease obligations
915
1,046
Accounts payable
308,191
295,476
Contract liabilities
286,288
321,958
Current portion of accrued self-insurance
26,801
25,883
Accrued income taxes
3,583
196
Other current liabilities
123,308
87,837
Total current liabilities
766,392
748,900
Deferred income tax liabilities
53,614
52,498
Long-term debt
81,623
70,018
Accrued self-insurance
53,577
53,600
Operating lease obligations, net of current maturities
32,446
30,496
Finance lease obligations, net of current maturities
1,632
1,930
Other liabilities
14,464
16,257
Total liabilities
1,003,748
973,699
Commitments and contingencies
Shareholders' equity:
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at June 30, 2025 and December 31, 2024
—
—
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 15,522,834 and 16,121,901 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively
155
161
Additional paid-in capital
156,138
159,133
Accumulated other comprehensive loss
(7,657
)
(12,651
)
Retained earnings
434,598
453,717
Total shareholders' equity
583,234
600,360
Total liabilities and shareholders' equity
$
1,586,982
$
1,574,059
MYR GROUP INC.Unaudited Consolidated Statements of OperationsThree and Six Months Ended June 30, 2025 and 2024
Three months endedJune 30,
Six months endedJune 30,
(in thousands, except per share data)
2025
2024
2025
2024
Contract revenues
$
900,325
$
828,890
$
1,733,945
$
1,644,452
Contract costs
796,614
788,047
1,533,333
1,517,366
Gross profit
103,711
40,843
200,612
127,086
Selling, general and administrative expenses
63,313
61,839
125,837
124,072
Amortization of intangible assets
1,211
1,217
2,399
2,445
Gain on sale of property and equipment
(600
)
(1,506
)
(1,701
)
(2,995
)
Income (loss) from operations
39,787
(20,707
)
74,077
3,564
Other income (expense):
Interest income
45
81
236
223
Interest expense
(1,905
)
(1,241
)
(3,319
)
(2,295
)
Other expense, net
(533
)
(270
)
(833
)
(533
)
Income (loss) before provision for income taxes
37,394
(22,137
)
70,161
959
Income tax expense (benefit)
10,928
(6,860
)
20,387
(2,703
)
Net income (loss)
$
26,466
$
(15,277
)
$
49,774
$
3,662
Income (loss) per common share:
—Basic
$
1.70
$
(0.91
)
$
3.16
$
0.22
