MYRG

In recent weeks, MYR Group has come under heavy selling pressure, pushing its shares into technically oversold territory as indicated by a Relative Strength Index reading below 30. What stands out is that this technical setup coincides with analysts raising their earnings estimates, highlighting a contrast between negative recent trading activity and improving expectations for the company’s profits. With MYR Group now in oversold territory while analyst earnings estimates move higher, we’ll examine how this shift could influence the existing investment narrative. This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality. To own MYR Group, you generally need to believe in sustained demand for grid, data center and complex infrastructure work, supported by a strong backlog and healthy balance sheet. The recent oversold share price and higher earnings estimates do not appear to change the key near term catalyst, which is continued profitable execution on existing contracts, or the biggest current risk, which is pressure on margins from labor costs and project complexity. Against this backdrop, the recent Q2 2026 results are especially relevant. MYR Group reported US$1,081.73 million in quarterly sales and US$49.85 million in net income, with diluted EPS of US$3.17, building on a solid first quarter. This context helps frame the current RSI driven selloff against a period of improved reported profitability and provides more nuance when thinking about whether recent price weakness aligns with, or diverges from, the company’s operating trends and near term catalysts. Yet, while earnings are moving higher, investors should also be aware that labor cost inflation and project inefficiencies remain a key risk if... Read the full narrative on MYR Group (it's free!) MYR Group's narrative projects $5.6 billion revenue and $269.8 million earnings by 2029. Uncover how MYR Group's forecasts yield a $433.00 fair value, a 38% upside to its current price. While recent selling and higher earnings estimates may suggest one story, the most bearish analysts once expected MYR Group to earn about US$249.0 million on US$5.1 billion of revenue by 2029, reminding you that views on risks to margins and backlog strength can differ widely and that this new oversold setup could eventually shift both the optimistic and pessimistic narratives. Explore 5 other fair value estimates on MYR Group - why the stock might be worth as much as 52% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your MYR Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free MYR Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MYR Group's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Outshine the giants: these 18 early-stage AI stocks could fund your retirement. The future of work is here. Discover the 38 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MYRG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, July 30, 2026 at 10 a.m. ET Vice President of Investor Relations and Treasurer - Jennifer Harper President and Chief Executive Officer - Richard Swartz Senior Vice President and Chief Financial Officer - Kelly Huntington Senior Vice President and Chief Operating Officer of MYR Group's Transmission and Distribution segment - Brian Stern Senior Vice President and Chief Operating Officer of MYR Group's Commercial and Industrial segment - Don Egan Operator: Good morning, everyone, and welcome to the MYR Group Second Quarter 2026 Earnings Results Conference Call. Today's conference is being recorded. I will now turn the call over to Jennifer Harper, Vice President of Investor Relations and Treasurer, for introductory remarks. Jennifer Harper: Thank you, and good morning, everyone. I would like to welcome you to the MYR Group conference call to discuss the company's second quarter results for 2026, which were reported yesterday. Joining us on today's call are Rick Swartz, President and Chief Executive Officer; Kelly Huntington, Senior Vice President and Chief Financial Officer; Brian Stern, Senior Vice President and Chief Operating Officer of MYR Group's Transmission and Distribution segment; and Don Egan, Senior Vice President and Chief Operating Officer of MYR Group's Commercial and Industrial segment. A copy of yesterday's press release announcing our second quarter results can be found on the MYR Group website at myrgroup.com under the Investors tab. Please note, today's discussion may contain forward-looking statements. Any such statements are based upon information available to MYR Group's management as of this date, and MYR Group assumes no obligation to update any such forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these statements are no guarantee of future performance. For more information, please refer to the risk factors discussed in the company's most recently filed annual report on Form 10-K. Certain non-GAAP financial measures will also be presented. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in yesterday's press release. With that, let me turn the call over to Rick Swartz. Richard Swartz: Thanks, Jennifer. Good morning, everyone. Welcome to our second quarter 2026 conference call to discuss financial and operational results. I will begin by providing a summary of the second quarter results and then turn the call over to Kelly Huntington, our Chief Financial Officer, for a detailed financial review. Following Kelly's overview, Brian Stern and Don Egan, Chief Operating Officers for our T&D and C&I segments, will provide a summary of our segment performance and discuss some of MYR Group's opportunities going forward. I will then conclude today's call with some closing remarks and open the call up for your questions. We achieved solid second quarter financial results, reflecting consistent performance throughout our business. During the quarter, we saw steady activity across our markets with ongoing infrastructure investments and electrification initiatives supporting demand. We remain focused on maintaining operational discipline, pursuing opportunities aligned with our strategy and creating long-term value for our stakeholders. On July 1, we closed the acquisition of Valley Electric and Comet Electric, further expanding our commercial and industrial capabilities and geographic presence. Their diverse project portfolios, strong customer relationships and extensive pre-fabrication capabilities complement our existing capabilities, positioning us to pursue a broader range of opportunities. We look forward to working together to leverage our combined strengths and support continued growth across an expanded footprint. As we continue to build our capabilities and serve our customers, our commitment to safe, reliable execution remains unchanged. Our teams are focused on maintaining strong customer relationships, producing high-quality results and working collaboratively across our organization. I'm grateful to our teams for their continued dedication and the contributions they make every day. Now Kelly will provide details on our second quarter 2026 financial results. Kelly Huntington: Thank you, Rick, and good morning, everyone. Our second quarter 2026 revenues were a record $1.08 billion, which represents an increase of $181 million or 20% compared to the same period last year. Our second quarter T&D revenues were $524 million, an increase of 4% compared to the same period last year. T&D segment revenues increased primarily due to higher revenue on T&E contracts and unit price contracts, partially offset by lower revenue on fixed price contracts. Work performed under master service agreements represented approximately 65% of our T&D revenues. C&I revenues were $558 million, a record high for our C&I segment and an increase of 42% compared to the same period last year. C&I segment revenues increased primarily due to higher revenue on fixed price contracts. Our gross margin was 13.2% for the second quarter of 2026 compared to 11.5% for the same period last year. The increase in gross margin was primarily due to better-than-anticipated productivity, favorable job closeouts and an increase in scope on certain projects. These margin increases were partially offset by an increase in costs associated with inefficiencies on certain projects. T&D operating income margin was 9.4% for the second quarter of 2026 compared to 8% for the same period last year. The increase was primarily related to better-than-anticipated productivity, favorable job closeouts and an increase in scope on a project, partially offset by an increase in costs associated with inefficiencies on certain projects. C&I operating income margin was 8.5% for the second quarter of 2026 compared to 5.6% for the same period last year. The increase was primarily related to better-than-anticipated productivity on certain projects, most of which are nearing completion and an increase in scope on a project, partially offset by an increase in costs associated with inefficiencies on certain projects. C&I operating income margin was also positively impacted by a larger portion of our projects progressing at higher contractual margins, some of which are nearing completion. Second quarter 2026 SG&A expenses were $74 million, an increase of approximately $11 million compared to the same period last year. The increase was primarily due to higher employee incentive compensation costs and employee-related expenses to support future growth. Our second quarter effective tax rate was 25.7% compared to 29.2% for the same period last year. The decrease was primarily due to a favorable impact from stock compensation excess tax benefits, partially offset by higher U.S. taxes on Canadian income and other permanent difference items. Second quarter 2026 net income was a record $50 million compared to net income of $27 million for the same period last year. Net income per diluted share of $3.17 increased 86% compared to $1.70 for the same period last year. Second quarter 2026 EBITDA was a record $85 million compared to $56 million for the same period last year. Total backlog as of June 30, 2026, was a record $3.16 billion, 20% higher than a year ago. Total backlog as of June 30, 2026, consisted of $1.27 billion for our T&D segment and $1.89 billion for our C&I segment. Second quarter 2026 operating cash flow was $3 million compared to operating cash flow of $33 million for the same period last year. The decrease in cash provided by operating activities was primarily due to the timing of tax payments and the timing of billings and payments associated with project starts and completions. Second quarter 2026 free cash flow was negative $26 million compared to positive free cash flow of $12 million for the same period last year. The decrease was due to the decrease in operating cash flow and higher capital expenditures to support future growth. Moving to liquidity in our balance sheet. We had approximately $307 million of working capital, $9 million of funded debt, $460 million in borrowing availability under our credit facility and $138 million in cash and cash equivalents as of June 30, 2026. We had a funded debt-to-EBITDA leverage ratio of 0.03x at the end of the second quarter. After quarter end, on July 1, we acquired all issued and outstanding capital stock of Valley Holdings and its subsidiaries for initial cash consideration of $328 million, which is subject to working capital and net asset adjustments. We funded the cash payment at closing through a combination of approximately $93 million of cash on hand and $235 million of borrowings under our revolving credit facility. We continue to believe that the remaining borrowing availability under our credit facility and future cash flow from operations will enable us to support the organic growth of our business, pursue future acquisitions and opportunistically repurchase shares of our common stock. I'll now turn the call over to Brian Stern, who will provide an overview of our Transmission and Distribution segment. Brian Stern: Thanks, Kelly, and good morning, everyone. The T&D segment delivered another solid quarter, reflecting effective execution across a broad range of small to midsized projects throughout our markets. Our teams remain focused on delivering safe, high-quality work while maintaining reliable project performance. We continue to leverage our trusted customer relationships while selectively expanding our presence with new and existing customers amid ongoing investments in transmission and distribution infrastructure. This quarter, L. E. Myers Company was awarded 2 large transmission jobs for Xcel Energy with a combined value in excess of $200 million. Sturgeon Electric was selected for a 500 kV substation project in Arizona. Great Southwestern Construction was awarded a 345 kV transmission rebuild project in Texas, along with a greenfield substation project in Colorado with an additional substation work in New Mexico. Harlan was awarded a substation expansion project in Ohio, along with several distribution projects in Pennsylvania. Electricity demand continues to reshape utility capital investment priorities across the transmission and distribution market. Deloitte Research Center for Energy and Industrials notes that utilities are making significant long-term investments to modernize transmission and distribution infrastructure as electricity demand increases and grid reliability requirements continue to evolve. We believe these ongoing grid needs are creating opportunities within our T&D markets where we continue to see steady bidding activity. Our ability to execute in this environment is driven by the strength of our teams, our commitment to safety and quality and to the continued investment in our workforce. We remain focused on delivering consistent results for our customers while maintaining the operational discipline that supports long-term success. We appreciate our employees' dedication to safety and performance across the organization. I will now turn the call over to Don Egan, who will provide an overview of our Commercial and Industrial segment. Don Egan: Thanks, Brian, and good morning, everyone. Our C&I segment continued to perform well during the second quarter, reflecting steady activity across our core markets and the disciplined execution of our teams. Bidding activity remained healthy during the quarter, and backlog continued to grow, supported by a balanced mix of new project opportunities and repeat business. We remain focused on understanding our customers' evolving needs, delivering projects safely and efficiently and positioning ourselves to support a diverse range of projects. . We believe these long-standing customer relationships remain a key differentiator for our business and will support sustainable growth over time. Market conditions continue to support demand across our commercial and industrial markets. Recent data points to sustained investment in data centers, grid modernization, power infrastructure and industrial facilities. ConstructConnect reports U.S. data center construction starts remain at historically elevated levels, while utilities and developers continue to accelerate investment in the electrical infrastructure needed to support growing power demand. These trends combine to reinforce a healthy backdrop for electrical contracting, particularly in mission-critical facilities and complex commercial and industrial projects. Our teams throughout all subsidiaries continue to deliver on existing commitments while pursuing new project opportunities, leveraging the breadth of our capabilities and customer relationships. We were awarded data center work in New Jersey and Arizona, multiple data center projects in Colorado, aerospace work in California and hospitality and higher education work in New York. These wins highlight ongoing activity in key markets and a broad range of project types. We remain focused on supporting our customers' needs and broadening our ability to serve them. In closing, we recognize the dedication of our employees and remain focused on executing our strategy as we continue to build on the strengths of our organization. Thank you, everyone, for your time today. I will now hand the call back to Rick for his closing remarks. Richard Swartz: Thank you for those updates, Kelly, Brian and Don. Our second quarter 2026 results reflect the continued strength of our operating model, supported by the capabilities of our teams and the relationships we have built with our customers across both segments. We continue to see opportunities throughout our markets as investment in electrical infrastructure evolves, and we remain committed to disciplined project selection, operational execution and serving our customers' needs. Our commitment to integrity, collaboration and delivering quality work provides a strong foundation as we pursue initiatives aligned with our long-term strategy. I want to thank our employees for their exceptional dedication and our shareholders for their confidence and support. We welcome the employees of Valley Electric and Comet Electric to MYR Group and are focused on leveraging the capabilities and expertise they bring to the organization. Looking ahead through 2026, we continue executing our strategy and maintaining the standards we have supported our success. Operator, we are now ready to open the call up for your comments and questions. Operator: Our first call comes from the line of Caitlin Donohue of Goldman Sachs. Caitlin Donohue: I just want to ask on the acquisition of Valley and Comet Electric. It was great to see. Can you walk us through your expectations now that you have them in-house, how you see that growing your customer base and your capabilities within C&I throughout the geography within the U.S. Richard Swartz: We've talked about that a little bit in the past as we did some of our press releases and went through it. Their capabilities are very similar to our own. So we see that leveraging both their customer base and then having an influx with our own customer base. So we've been able to do that on past acquisitions and expand both markets. So for us, we see that as a continued opportunity for us. As I said earlier, they're very strong with prefab, strong customer relationships similar to our own, and we see that as a very good acquisition going forward. Caitlin Donohue: That's helpful. And then just another one for me. Can you talk a little bit about -- I know we've seen margins come in pretty strong in both segments within the first half of the year. And I know we had talked previously about maybe full year landing in that middle range of those margin guide. How do you see the back half of the year shaping up from a margin perspective given the strength that we've seen in the first 2 quarters. Richard Swartz: Yes. Yes. I think we've had good strength. We've had good project closeouts as we've gone through both segments this year. We continue to see good performance across really our project portfolio. But again, as we look at the total year, nothing has changed with our kind of projections that we will be in the mid part of our projections for operating margins on the C&I of that 6% to 9% and T&D will fall in that midrange of that 8% to 11%. We see that continue. We'd love to see an uptick from there. But right now, when we look at the market and the jobs that are closing out, we see it kind of in that midrange for the rest of the year. Operator: Our next call comes from Sangita Jain of KeyBanc Capital Markets. Sangita Jain: Kelly, can you help us understand the revenue bridge for second half now that you have Valley in your -- now that you've closed on the Valley acquisition? I understand that the application may be more muted. Kelly Huntington: Yes, I can cover that. So you're correct. I'll just maybe start on that last point you made around the EPS contribution. Typically, our acquisitions have higher amortization expense in the first 12 months, really driven by the shorter amortization period for backlog. So we would expect the contribution to be more neutral from Valley on EPS and also operating income as we look through that first year of owning them. From a revenue perspective, we expect their contributions will be in that approximately $250 million range rest of year. And then maybe I'll turn it over to Rick just to talk about our revenue expectations overall. Richard Swartz: Yes. I think when we look at our overall revenue projections for the year, again, that should add roughly that $250 million. And then when I -- when we look at our growth, I think it will kind of be in that overall growth, probably in that 13% to 15% if I looked at our overall growth on an organic basis going forward. Sangita Jain: Great. And then on that Xcel $200 million award that you just highlighted, is that part of that MSA that you won a few quarters ago? Or is this outside of that? And is it all in your backlog. Richard Swartz: This is in our backlog. So those 2 projects are in our backlog. It's the larger projects I've been talking about for the last 6 months that we anticipated coming into our backlog in the second half of this year. So those projects did mature into contracts, and we were able to add them to our backlog during this quarter. So yes, they are in there. And again, we continue to see good activity on the large project side. But again, those projects are always lumpy, how they come into our backlog. But these ones, as I said earlier, came into our backlog just as we projected for the last 6, 8 months that we've been talking about those projects coming in. Operator: Our next call comes from the line of Manish Somaiya of Cantor. Manish Somaiya: Two questions for me. Kelly, if you can just touch on the cash flows. I guess there were some timing-related issues. If you could just help us understand how we should kind of think about second half cash flow and working capital in particular? Kelly Huntington: Sure. So we've seen some very strong cash flows over the past 5 quarters. And in the second quarter here, we did see the timing of cash payments, tax payments really impacting the quarter. So that was about $30 million higher than the second quarter of last year. So still positive from an operating cash flow perspective. As we look out the rest of the year, we do see strong EBITDA growth with the revenue growth that Rick was talking about as well as with our improving margins with those higher target ranges. The headwind, just as we talked about the last quarter is we are sitting at near record low DSOs. And we do see -- a lot of that is driven by the strong overbillings we have on some projects, and those do naturally balance out over time. So we could see our DSOs going from the current kind of mid to more of the low to mid-50s as we progress through the next few quarters. So we do see that as a little bit of a headwind against that strong EBITDA growth that we see going forward. Manish Somaiya: That's helpful. And then -- sorry, I don't know if somebody had a comment, but I was just going to follow up on the T&D side. Obviously, nice activity, especially on the backlog with some pretty significant sequential increase. How should we think about the cadence of that backlog in terms of the conversion to revenues as we go into second half '26 and '27. Richard Swartz: Yes. I would look at those kind of carving out that -- the 2 projects that we captured on the large project side and that excess of $200 million, I'd look at that contribution is really coming in and starting kind of in that second half of '27. So there won't be much contribution from those projects prior to that. There's a chance material could come in a little sooner than that. But if you really -- as you model it out, look at that revenue starting to burn kind of in that second half of '27 and then kind of continuing for an 18-month period beyond that. Manish Somaiya: Congrats again. Operator: Our next call comes from the line of Brent Thielman of Oppenheimer & Company. Brent Thielman: Congrats. Great quarter. Rick, I just had maybe a follow-up on the T&D business. Again, really solid bookings, great backlog here to finish the quarter. I guess, could you talk about your ability to absorb sort of new business for the segment just given the huge backlog you have today and certainly finite level of resources out there. But if you could just talk about that. Richard Swartz: Yes. I think we're well positioned. I mean, we've been modeling this growth for a long time. It's not that it's something new or that we haven't been targeting. I think you've seen our growth over the last 6, 7 years, primarily organic on the T&D side, so well positioned on that side. I think from a labor standpoint, we're well positioned to continue to capture additional projects. We feel we're well aligned with 345, 500 and even some of that 765 work that will be available. But as I said before, we really don't see that work starting until the second half of '27 and beyond. We're doing a lot of budgeting and looking at a lot of projects and doing constructability for projects that are going to construct in that kind of '28 and beyond, way out into the '30s. So lots of good activity, lots of good opportunities, and I think we're well positioned to continue to capture future large projects as this market moves forward. Brent Thielman: Great. And just a follow-up, I guess, just on the C&I business, if you could just talk about the quality of the business you're adding here? I mean what's the competitive environment look like for the types of projects you're securing in that business? And I guess just an opportunity to talk about what you're seeing outside the data center world as well. Richard Swartz: Sure. Sure. I'll let Don start that one, and then I'll add to it. Don Egan: I think as I mentioned in my script, we were awarded a couple of the jobs outside the data center world in New York and also in California. So our markets are strong. We're seeing a fair amount of activity. But unfortunately, we are not price makers as it will, but it's still a competitive landscape out there. Richard Swartz: But we are seeing strong activity. So again, as I described it on the T&D front, a lot of projects that we're budgeting and doing constructability that are going to build in '28, '29, '30. We're seeing that same activity on the C&I side. So I'd say a very robust market and making sure we're well positioned to capture that work as we go forward. Operator: Our next call comes from Julian Dumoulin-Smith of Jefferies. Brian Russo: It's Brian Russo on for Julian. Just to follow up on -- I think it was the $250 million second half of the year run rate of revenue for Valley. There seems to be quite a bit of growth relative to what you kind of disclosed to be for the full year average over the last 2 years. And I'm just wondering, I know the deal just closed in early July, but is the performance of Valley and Comet exceeding your expectations? And how does that kind of play into what is very strong first half C&I performance out of your core business? Richard Swartz: Well, I think when we look at the contribution that we anticipate that making in the second half, a portion of that is material and as it comes in. So again, material is always going to be lumpy as it comes in. That can vary quarter-to-quarter. But I would say when we look at that market overall, we're pleased with the acquisition, we look forward to it. But I would say it's as projected. I wouldn't say there's any things we're shocked about or we haven't seen big revenue move forward. It's really that -- how that material comes into play and how that delivery comes. So again, I would say, as anticipated, but again, very positive on this acquisition. We think it's going to be very positive for us going forward. Brian Russo: Okay. Great. And then could you comment on the C&I end market diversification? What's driving the 40% year-over-year revenue growth and the top end of those margins. I would just assume that the data center end market is growing a lot faster than, say, education or health care. I just want to get a bit of understanding of how that mix is evolving. Richard Swartz: I would say it varies quarter-to-quarter and geographic area by geographic area. So again, we've described it before as we've talked about it, that data centers isn't the #1 market in every geographic area we're in. We see good activity on whether it's advanced manufacturing, whether it's transportation work, some of our other key markets we're in, we like being diversified. We want to make sure we continue to be diversified. But we are seeing good activity, I would say, across all our key markets. So there's 5 or 6 key markets we talk about. And when I look at it, good activity in them all. So again, we're not going to focus just on data centers. We like data centers. We like those opportunities there. But again, we've got a lot of long-term clients that have been with us a long time that build other types of facilities, and we see great opportunities with them. Brian Russo: Okay. And then just one last question on high-voltage transmission. How are discussions progressing with some of the other key customers maybe in ERCOT in Texas in addition to the nice $200 million of 2 project awards with Xcel? Richard Swartz: Yes. No, I would say those -- when you look at the 765 and some of those projects that will be coming to market in the future here, I would say good conversations going on with our clients again. As you read and you see in the headlines, a lot of them are still going through siting issues and making sure that they get that all addressed before the projects are released. But again, making good progress on that. I would say we're having good conversations, and we see good opportunities going forward. But again, those projects, as I said before, will really start at best case, the end of '27, but more likely '28 and beyond when you look at that 765 work. Operator: Our next question comes from the line of Brian Brophy of Stifel. Brian Brophy: Congrats on the nice quarter. I know there was some commentary on competitiveness still in the market. But just curious generally how you're seeing terms and conditions trending within some of the awards you've gotten recently? And to what extent does that increase the odds of continued positive closeout activity moving forward? Richard Swartz: Well, for us, it's always a focus of ours. We're getting the best terms and conditions we can, both on the C&I and T&D front. I think we're always pushing for that side to have fair terms and conditions. And again, over 90% of our business is return clientele. So we have strong relationships with these clients. Hopefully, that's reflected in less risk for us as we go forward. But again, try to be fair with our customers. And I think, in turn, our long-term customers are fair with us. So good opportunities, I would say, from a business standpoint and probably, as I said before, more favorable terms and conditions today than we saw in contracts 8 months or a year ago. So continue to see advancements on that side. Brian Brophy: That's helpful. And then obviously, great award quarter, particularly in T&D. But maybe just touch on the labor environment, how tight is it? And generally, where are you seeing more or less tightness in the marketplace when you look across T&D and C&I. Richard Swartz: Yes. I don't think -- I think some areas are a little tighter than others, but we're starting to see a lot of markets tighten up a little bit. But with that, a lot of these projects are longer-term projects. So they're not going to all be built in '27. And as I said, we've been building out this -- our groups for a long time. We see these opportunities, and I think we're well strategically positioned to capture these projects. So again, from a labor standpoint of retaining our employees, advancing our employees and recruiting new employees, we continue to see those opportunities. And I would say our conversations with customers still remain around 2 items. They're concerned about how they get their material on time to build their projects and making sure that they have the labor aligned to do their projects when that construction takes place. So very strong positions again, but our backlog is always going to be lumpy as it comes in because as we've talked before, some of these projects are 2 to 3 years in the development stage. But again, we see a very long runway on these projects and lots of good opportunities out there. Operator: Our next call comes from the line of Tim Moore from Clear Street. Timothy Michael Moore: Impressive backlog growth and operating margin leverage in the quarter. My first question is just around within T&D. I believe you formed a large project group team there separate from the MSA side work staff. Can Rick or anyone on the team just provide some insights on kind of either risk management and the trade-off that you make of maybe geographic concentration with fleet utilization in one area of benefit versus maybe taking on a larger project in a less scaled geography. So I'm just trying to wrap my head around, is one of the drivers also servicing the 90% repeat customers kind of wherever they are. Richard Swartz: I'll start, and I'll let Brian add a little bit to this. I'd say a large project group we formed 20 years ago in the anticipation of these larger projects coming into play because we wanted to make sure that we continue to take care of our day-to-day MSA contracts. But remember, a lot of these investor-owned utilities that we have MSAs with are also the same ones that are doing some of these larger projects out there. So it's really -- it's being able to service them on both sides. We centralized our fleet years ago so that we could make sure that we utilize our fleet the best we could and took advantage of both the MSA work and also positioned ourselves well to be able to take on some of these larger projects. So making sure we have the right equipment available to take on some of these larger projects while we serve those customers with that MSA work. Brian, anything you want to add as you've gone through your marketing phase. Brian Stern: No, you kind of hit it there other than our large projects teams work hand-in-hand with the local teams, as Rick said, to service those customers. So it's an independent group, but it's to make sure we can handle any of our customer needs or other projects that may come out of the market. Timothy Michael Moore: Great. That's helpful color. And then just one more follow-up on the Valley and Comet acquisitions. Is it fair to assume that they can integrate fairly quickly because they're C&I and you don't have to integrate a large fleet like you might have to if it was T&D and then mostly kind of reporting systems integration? Richard Swartz: Yes. I would say, as we go through that, we did the initial assessment. I think, as we said, we're always going to look at all their systems. Their systems are very strong as they stand alone. But some of that stuff on the accounting side and the finance side, we're going to bring them on to our systems. That's planned from day 1. We've done that with our other acquisitions we've done. And then from -- as far as an integration standpoint and assimilating them into our company, I would say we're pleased at the speed that's going, very early conversations with them about what would change, what would remain the same. And again, they are a very strong operating company. So they had very good systems in place as they run their business. So really, it's -- I'd say, in a lot of cases, when we do acquisitions, we learn from each other. There's a lot of things we try to add to them, but I think we also try to learn as much as we provide to them. So I think we've got some areas that we can see that they've done stuff maybe a little better than we have in some cases, and we adapt to that. So I would say it's been a very good sharing experience so far. Operator: At this point, I'm showing no further questions in the queue. I'd like to turn the call back over to Rick Swartz for any additional closing remarks. Richard Swartz: To conclude, on behalf of Kelly, Brian, Don and myself, I sincerely thank you for joining us on the call today. I do not have anything further, and we look forward to working with you in the future and speaking with you again on our next conference call. Until then, stay safe. Operator: Thank you. This concludes today's conference call. We thank you for your participation. You may now disconnect. Before you buy stock in MYR Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MYR Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends MYR Group. The Motley Fool has a disclosure policy. MYR Group (MYRG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. MYR Group (MYRG) has drawn fresh attention after reporting record second quarter 2026 revenue, earnings, and backlog, along with the acquisitions of Valley Electric and Comet Electric that broaden its commercial and industrial footprint. See our latest analysis for MYR Group. Despite strong Q2 2026 results and acquisitions, MYR Group’s recent share price momentum has cooled, with the stock down 28.05% on a 30 day share price return, but still showing a 77.77% 1 year total shareholder return and 238.95% 5 year total shareholder return. If MYR Group’s role in power infrastructure has your attention, it may be a good time to broaden your watchlist and review 35 power grid technology and infrastructure stocks Bulls point to MYR Group’s record earnings and backlog, while bears focus on the sharp pullback after a strong multi year run. Do the current numbers make recent weakness look like value or a warning sign as valuation comes under the microscope next? With MYR Group last closing at $333.22 against a narrative fair value of $433, the gap between price and implied value has caught investor attention. Read the complete narrative. Want to understand what sits behind that growth story for MYR Group? The narrative leans on accelerating revenues, firming margins, and a premium earnings multiple. Curious which specific assumptions push fair value to $433 and keep the discount rate just under 9%? Result: Fair Value of $433 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, MYR Group’s story could shift if labor cost inflation squeezes project margins, or if the lumpier Commercial and Industrial backlog leads to choppier cash flows. Find out about the key risks to this MYR Group narrative. The earlier fair value of $433 for MYR Group leans on long term cash flow assumptions. A simpler lens uses the current P/E of 31.4x, which is slightly above the 30.7x fair ratio and below the 34.9x US Construction average. That leaves a narrower margin of safety if sentiment cools. For investors comparing these signals, the key question is whether MYR Group deserves to stay at or above that fair ratio once growth expectations and execution risks are factored in, or if the market could drift closer to the peer average over time. See what the numbers say about this price — find out in our valuation breakdown. Feeling torn between the bullish and bearish angles on MYR Group? Take a closer look at the underlying data, weigh both the risk flags and the potential upsides, and then decide where you stand with the 3 key rewards and 1 important warning sign If MYR Group has sharpened your focus on quality, do not stop here. The right mix of opportunities can matter just as much as any single stock. Spot potential overachievers early by scanning 21 elite penny stocks with strong financials that already back their story with stronger financials than many expect at this size. Strengthen the core of your portfolio by reviewing the solid balance sheet and fundamentals stocks screener (45 results) and keep an eye on companies that pair resilience with disciplined fundamentals. Add some fresh ideas to your watchlist by checking the screener containing 19 high quality undiscovered gems before these underfollowed opportunities start attracting wider attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MYRG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

MYR Group, Inc. MYRG reported strong second-quarter 2026 results, with both earnings and revenues surpassing expectations. The specialty electrical contractor benefited from solid demand across its end markets, particularly in commercial and industrial construction, while backlog climbed to a record level. Management highlighted continued momentum from investments in grid modernization, electrification, data center construction and other infrastructure projects. The company also pointed to a healthy bidding environment and a robust pipeline of future opportunities across its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) businesses. MYR Group reported second-quarter earnings of $3.17 per share, which beat the Zacks Consensus Estimate of $2.64 by 20.1%. Revenues increased 20.1% year over year to a record $1.08 billion and topped the consensus estimate of $995.5 million by approximately 8.8%. MYR Group, Inc. price-consensus-eps-surprise-chart | MYR Group, Inc. Quote Total revenues increased to $1.08 billion from $900.3 million in the prior-year quarter. The growth was led by the Commercial & Industrial segment, where revenues surged 41.5% year over year to a record $557.7 million. The segment benefited from higher activity in data centers, advanced manufacturing, transportation and other mission-critical infrastructure projects. Meanwhile, T&D revenues rose 3.5% to $524 million, supported by continued utility spending on transmission and distribution infrastructure. Gross profit increased 37.6% year over year to $142.7 million, while gross margin expanded 170 basis points to 13.2%. The improvement reflected better-than-expected productivity, favorable project closeouts and increased project scope on certain contracts. Operating income climbed to $67.9 million from $39.8 million in the year-ago period. T&D operating margin improved to 9.4% from 8.0%, while C&I operating margin expanded to 8.5% from 5.6%, aided by strong project execution and a favorable mix of higher-margin work. A key highlight of the quarter was backlog growth. As of June 30, 2026, backlog reached a record $3.16 billion, up 19.6% from $2.64 billion a year earlier. T&D backlog totaled $1.27 billion, while C&I backlog stood at $1.89 billion. Management noted that investments in grid reliability, transmission infrastructure and growing electricity demand continue to support a robust pipeline of opportunities. During the quarter, MYR secured several notable awards, including more than $200 million of transmission work from Xcel Energy. The company also won multiple data center projects across New Jersey, Arizona and Colorado, underscoring strong demand in the mission-critical infrastructure market. Management also discussed the recently completed acquisition of Valley Electric and Comet Electric, which closed on July 1. The acquisition expands MYR's commercial and industrial capabilities and geographic footprint. The company expects the acquired businesses to contribute roughly $250 million in revenues during the second half of 2026. During the earnings call, executives highlighted continued strength across key end markets, including data centers, utilities, advanced manufacturing and transportation infrastructure. Management noted that utilities continue to plan large transmission projects extending into 2028 and beyond, while commercial customers remain active across a broad range of industries. The company also emphasized its disciplined approach to project selection and its strong relationships with long-standing customers. MYR currently carries a Zacks Rank #3 (Hold), suggesting that the stock is expected to perform in line with the broader market over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock also holds a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The strong Growth, Momentum and VGM scores reflect MYR Group's solid earnings growth prospects, favorable price performance and attractive overall fundamental profile. Investors looking for companies with a combination of growth potential and positive momentum may find the stock worth monitoring, although the Hold-ranked status suggests waiting for additional positive estimate revisions before becoming more aggressive. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MYR Group, Inc. (MYRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record second-quarter revenue of $1.08 billion was driven by a 42% surge in Commercial and Industrial (C&I) activity, primarily from fixed-price contracts and mission-critical infrastructure. Gross margin expansion to 13.2% resulted from better-than-anticipated productivity, favorable project closeouts, and scope increases, which outweighed inefficiencies on select projects. The Transmission and Distribution (T&D) segment maintained stability through Master Service Agreements (MSAs), which accounted for approximately 65% of segment revenue. Management attributed the record $3.16 billion backlog to a balanced mix of repeat business and new awards, including two major transmission projects exceeding $200 million. The acquisition of Valley Electric and Comet Electric is strategically designed to leverage their pre-fabrication capabilities and expand the company's geographic footprint in the C&I market. Operational discipline remains focused on selective project bidding, ensuring that new work aligns with the company's long-term margin targets and risk profile. Full-year 2026 operating margin guidance remains in the mid-range of 8% to 11% for T&D and 6% to 9% for C&I, despite strong first-half performance. Organic revenue growth for the year is projected between 13% and 15%, excluding the impact of the Valley and Comet acquisitions. The Valley and Comet acquisitions are expected to contribute approximately $250 million in revenue for the remainder of 2026, though EPS impact will be neutral due to initial backlog amortization. Major T&D project awards are expected to begin contributing significantly to revenue in the second half of 2027, with construction timelines extending 18 months beyond that point. Management anticipates a slight headwind to cash flow as record-low Days Sales Outstanding (DSOs) normalize from their current levels to the low-to-mid 50s. The $328 million acquisition of Valley Holdings was funded through $93 million in cash and $235 million in revolving credit, resulting in a funded debt-to-EBITDA leverage ratio of 0.03x at the end of the second quarter, prior to the acquisition of Valley Holdings. SG&A expenses increased by $11 million year-over-year, primarily due to higher employee incentive compensation and investments in personnel to support future growth. Operating cash flow decreased to $3 million from $33 million in the prior year, largely due to the timing of tax payments and project-related billing cycles. Management highlighted ongoing industry-wide challenges regarding material lead times and labor availability as key variables for project scheduling through the end of the decade. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to integrate accounting and finance systems immediately, while maintaining the strong existing operating models of the acquired firms. The acquisition provides immediate access to advanced pre-fabrication capabilities that can be leveraged across MYR Group's broader customer base. Management maintained their original margin guidance ranges, noting that while first-half closeouts were strong, they expect performance to settle into the 'midrange' for the rest of the year. Current contract terms and conditions are described as more favorable than those seen 8 to 12 months ago, potentially supporting future closeout activity. MYR Group utilizes a specialized 'large project group' formed 20 years ago to handle major builds without disrupting day-to-day MSA service for utility clients. While the labor market is tightening, management believes their long-term recruitment and centralized fleet strategy position them to absorb the record backlog. Management emphasized that they are not solely focused on data centers, citing active awards in aerospace, hospitality, and higher education to maintain a balanced portfolio. They noted that they are not 'price makers' in the current market, requiring continued discipline in project selection despite high demand.

This article first appeared on GuruFocus. Revenue: Record $1.08 billion, an increase of 20% year-over-year. T&D Revenue: $524 million, an increase of 4% year-over-year. C&I Revenue: Record $558 million, an increase of 42% year-over-year. Gross Margin: 13.2%, compared to 11.5% in the same period last year. T&D Operating Income Margin: 9.4%, compared to 8% in the same period last year. C&I Operating Income Margin: 8.5%, compared to 5.6% in the same period last year. SG&A Expenses: $74 million, an increase of approximately $11 million year-over-year. Effective Tax Rate: 25.7%, compared to 29.2% in the same period last year. Net Income: Record $50 million, compared to $27 million in the same period last year. Net Income Per Diluted Share: $3.17, an increase of 86% compared to $1.70 in the same period last year. EBITDA: Record $85 million, compared to $56 million in the same period last year. Total Backlog: Record $3.16 billion, 20% higher than a year ago. T&D Backlog: $1.27 billion as of June 30, 2026. C&I Backlog: $1.89 billion as of June 30, 2026. Operating Cash Flow: $3 million, compared to $33 million in the same period last year. Free Cash Flow: Negative $26 million, compared to positive $12 million in the same period last year. Working Capital: Approximately $307 million. Funded Debt: $9 million. Cash and Cash Equivalents: $138 million as of June 30, 2026. Funded Debt-to-EBITDA Leverage Ratio: 0.03x at the end of the second quarter. Warning! GuruFocus has detected 4 Warning Signs with MYRG. Is MYRG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record second-quarter revenues of $1.08 billion, a 20% increase year-over-year. Record net income of $50 million, with diluted EPS up 86% to $3.17. Record total backlog of $3.16 billion, 20% higher than the prior year. Strong margin improvement in both T&D (9.4%) and C&I (8.5%) segments. Successful acquisition of Valley Electric and Comet Electric, expanding C&I capabilities and geographic presence. Operating cash flow decreased to $3 million from $33 million due to timing of tax payments and project billings. Free cash flow turned negative at -$26 million, impacted by lower operating cash flow and higher capital expenditures. C&I segment faces a competitive landscape, limiting pricing power. Large T&D projects (e.g., $200 million Xcel awards) will not contribute significantly to revenue until the second half of 2027. Potential headwind from near-record low DSOs, which may normalize and pressure cash flow in coming quarters. Here are the key highlights from the MYR Group Inc (NASDAQ:MYRG) Q2 2026 earnings call, presented as summarized Q&A pairs. Q: Can you walk us through your expectations for the Valley Electric and Comet Electric acquisition, specifically how it will grow your customer base and capabilities within C&I?A: (Rick Swartz, President and CEO) Their capabilities are very similar to our own, so we see a strong opportunity to leverage both their customer base and our own, similar to past acquisitions. They are very strong in prefabrication and have robust customer relationships, making this a very good acquisition for us going forward. Q: Given the strong margins in the first half of the year, how do you see the back half of the year shaping up from a margin perspective?A: (Rick Swartz, President and CEO) We have seen good strength and project closeouts, but our full-year projections remain unchanged. We expect C&I operating margins to fall in the midrange of our 6% to 9% guidance and T&D margins to fall in the midrange of our 8% to 11% guidance for the rest of the year. Q: Can you help us understand the revenue bridge for the second half of the year now that the Valley acquisition has closed?A: (Kelly Huntington, CFO) From a revenue perspective, we expect Valley's contributions to be in the approximately $250 million range for the rest of the year. (Rick Swartz, President and CEO) On an organic basis, we see overall growth in the 13% to 15% range going forward. Q: Is the $200 million Xcel Energy award part of the MSA you won a few quarters ago, and is it all in your backlog?A: (Rick Swartz, President and CEO) Yes, these two projects are in our backlog. They are the larger projects we anticipated coming into our backlog in the second half of this year, and they matured into contracts during this quarter. Q: How should we think about the cadence of the T&D backlog converting to revenues as we go into the second half of '26 and '27?A: (Rick Swartz, President and CEO) For the two large projects totaling over $200 million, we expect revenue contribution to begin in the second half of 2027 and continue for an 18-month period beyond that. There is a chance material could come in a little sooner, but that is the current modeling assumption. Q: Can you talk about your ability to absorb new business for the T&D segment given the huge backlog and finite resources?A: (Rick Swartz, President and CEO) We are well positioned. We have been modeling this growth for a long time, with our T&D growth being primarily organic over the last 6-7 years. We are well aligned for 345, 500, and 765 kV work, but we don't see that work starting until the second half of '27 and beyond. We are already doing constructability for projects in '28 and beyond. Q: Can you comment on the C&I end market diversification? What is driving the 40% year-over-year revenue growth and the top-end margins?A: (Rick Swartz, President and CEO) The mix varies quarter-to-quarter and by geography. While data centers are strong, we are seeing good activity across all our key markets, including advanced manufacturing and transportation. We value our diversification and have long-term clients in many different facility types. Q: How are discussions progressing with key customers for high-voltage transmission work, particularly in ERCOT/Texas?A: (Rick Swartz, President and CEO) We are having good conversations with clients regarding 765 kV projects, but many are still going through siting issues. We see good opportunities, but that work will likely start at the end of '27, or more likely in '28 and beyond. Q: How are terms and conditions trending within recent awards, and does that increase the odds of continued positive closeout activity?A: (Rick Swartz, President and CEO) We are always pushing for fair terms and conditions. Over 90% of our business is with return clientele, which helps reduce risk. We are seeing more favorable terms and conditions today than we saw in contracts eight months or a year ago. Q: Can you touch on the labor environment? How tight is it across T&D and C&I?A: (Rick Swartz, President and CEO) Some markets are tighter than others, and we are seeing many markets tighten up. However, we have been building out our groups for a long time and are strategically positioned. Customer conversations remain focused on two items: getting material on time and having the labor aligned for construction. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in MYR Group, Inc.? Here are five stocks we like better. Record second-quarter results: Revenue rose 20% year over year to $1.08 billion, while net income reached $50 million and EBITDA hit $85 million. Gross margins improved to 13.2%, with profitability increasing in both the T&D and C&I segments. Backlog reached a record $3.16 billion, up 20% from a year earlier, supported by major transmission awards and continued demand for grid modernization, data centers and industrial infrastructure. MYR completed its $328 million acquisition of Valley Electric and Comet Electric on July 1. The businesses are expected to add about $250 million in 2026 revenue, though earnings contribution may be limited initially by higher amortization expenses. 2 Pick-and-Shovel Plays for Major Digital Infrastructure Buildout MYR Group (NASDAQ:MYRG) reported record second-quarter revenue, earnings and backlog as demand for electrical infrastructure work remained steady across its transmission and distribution and commercial and industrial operations. Revenue for the quarter ended June 30 rose 20% from a year earlier to a record $1.08 billion. Net income increased to a record $50 million, or $3.17 per diluted share, from $27 million, or $1.70 per diluted share, in the prior-year period. EBITDA reached a record $85 million, compared with $56 million a year earlier. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Construction activity suddenly booming, 3 stocks you can't miss “We achieved solid second-quarter financial results reflecting consistent performance throughout our business,” President and Chief Executive Officer Rick Swartz said. He said ongoing infrastructure investments and electrification initiatives continued to support activity across the company’s markets. Gross margin increased to 13.2% from 11.5% a year earlier. Chief Financial Officer Kelly Huntington attributed the improvement primarily to better-than-expected productivity, favorable project closeouts and expanded scope on certain projects. Those benefits were partly offset by costs associated with inefficiencies on other projects. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Transmission and Distribution, or T&D, revenue rose 4% year over year to $524 million. The increase was driven mainly by higher revenue from time-and-materials and unit-price contracts, partly offset by lower fixed-price-contract revenue. Work performed under master service agreements accounted for about 65% of T&D revenue. T&D operating income margin rose to 9.4% from 8.0% in the prior-year quarter, reflecting productivity, project closeouts and added scope, partially offset by project inefficiencies. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Commercial and Industrial, or C&I, revenue increased 42% to a record $558 million, primarily due to higher fixed-price-contract revenue. C&I operating income margin rose to 8.5% from 5.6%, aided by productivity on projects nearing completion, expanded project scope and a greater portion of work advancing at higher contractual margins. Swartz said the company still expects full-year operating margins to fall in the middle of its stated target ranges: 6% to 9% for C&I and 8% to 11% for T&D. He said the company has seen strong project closeouts and performance across its portfolio, but its full-year outlook has not changed. Total backlog at June 30 was a record $3.16 billion, up 20% from a year earlier. The backlog included $1.27 billion in T&D and $1.89 billion in C&I work. During the quarter, T&D subsidiary The L.E. Myers Co. received two Xcel Energy transmission awards with a combined value exceeding $200 million. Swartz said the projects were included in backlog and represent the large-project awards management had anticipated. He said revenue from those projects is expected to begin contributing primarily in the second half of 2027 and continue over roughly an 18-month period. Other T&D awards included a 500-kilovolt substation project in Arizona, a 345-kilovolt transmission rebuild in Texas, a greenfield substation project in Colorado, substation work in New Mexico and a substation expansion project in Ohio. Brian Stern, senior vice president and chief operating officer of T&D, said the segment continued to see steady bidding activity as utilities invest in grid modernization and reliability. Swartz said the company believes it is positioned to pursue additional large transmission work, including potential 765-kilovolt projects that are more likely to begin in 2028 or later. In C&I, the company reported awards for data center work in New Jersey, Arizona and Colorado, along with aerospace work in California and hospitality and higher-education projects in New York. Don Egan, senior vice president and chief operating officer of C&I, said bidding remained healthy and backlog growth was supported by a mix of new opportunities and repeat business. He pointed to sustained investment in data centers, grid modernization, power infrastructure and industrial facilities. Swartz said the company is maintaining a diversified C&I portfolio rather than focusing solely on data centers. He said MYR continues to see activity in advanced manufacturing, transportation and other key end markets, with projects being budgeted and evaluated for construction in 2028, 2029 and 2030. After the quarter ended, MYR completed its acquisition of Valley Electric and Comet Electric on July 1. The company acquired Valley Holdings and its subsidiaries for initial cash consideration of $328 million, subject to working-capital and net-asset adjustments. MYR funded the purchase with approximately $93 million of cash on hand and $235 million of borrowings under its revolving credit facility. Huntington said the acquired businesses are expected to contribute about $250 million of revenue during the remainder of 2026. However, she said their contribution to earnings per share and operating income is expected to be more neutral during the first year because of higher amortization expense, including amortization related to acquired backlog. Swartz said the acquired companies have capabilities similar to MYR’s existing C&I operations, including strong customer relationships and prefabrication capabilities. He said the company sees opportunities to leverage both organizations’ customer bases and expand market reach. MYR ended the quarter with $307 million in working capital, $138 million in cash and cash equivalents, $9 million of funded debt and $460 million in borrowing availability under its credit facility before the acquisition financing. Operating cash flow was $3 million, down from $33 million a year earlier, while free cash flow was negative $26 million. Huntington said the decline reflected the timing of tax payments, billings and project-related payments, as well as higher capital expenditures to support future growth. MYR Group Inc (NASDAQ: MYRG) is a specialty electrical contractor that provides a broad array of construction, maintenance and emergency restoration services to utility, commercial, industrial and renewable energy customers. The company was formed in 1995 through the consolidation of several regional specialty contractors and has since expanded its capabilities to support complex transmission and distribution projects, substation installations, communication and wireless infrastructure, as well as renewable power interconnections. Through a network of operating subsidiaries, MYR Group delivers turnkey solutions that include overhead and underground line construction, substation and switchgear installation, substation maintenance and testing, and storm restoration services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "MYR Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

THORNTON, Colo., July 29, 2026 (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 2026 financial results. Highlights for Second Quarter 2026 Record quarterly revenues of $1.08 billion Record quarterly net income of $49.9 million, or $3.17 per diluted share Record quarterly EBITDA of $85.0 million Record backlog of $3.16 billion Management CommentsRick Swartz, MYR’s President and CEO, said, “Our strong second quarter performance drove record quarterly revenues of $1.08 billion, while backlog reached $3.16 billion at quarter-end. These results reflect the continued strength of our core markets, ongoing investment in electrical infrastructure, and sustained customer demand across our business. The acquisition of Valley Electric and Comet Electric, which closed on July 1, further enhances our C&I capabilities and expands our geographic footprint, allowing us to deliver a broader range of solutions to both existing and new customers. We continue to see a healthy pipeline of quality bidding opportunities and remain focused on pursuing strategic growth opportunities while strengthening the long-standing relationships that are central to our success. With strong market fundamentals, a growing portfolio of capabilities, and a disciplined approach to project selection and execution, we believe we are well positioned to deliver continued growth and create long-term value for our shareholders.” Second Quarter ResultsMYR reported second-quarter 2026 revenues of $1.08 billion, an increase of $181.4 million, compared to the second quarter of 2025. Specifically, our Transmission and Distribution (“T&D”) segment reported quarterly revenues of $524.0 million, an increase of $17.7 million, from the second quarter of 2025, due to increases in revenue on T&E contracts and unit price contracts, partially offset by a decrease in revenue on fixed price contracts. Our Commercial and Industrial (“C&I”) segment reported record quarterly revenues of $557.7 million, an increase of $163.6 million, from the second quarter of 2025, primarily due to an increase in revenue on fixed priced contracts. Consolidated gross profit increased to $142.7 million in the second quarter of 2026, compared to $103.7 million for the second quarter of 2025. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 13.2 percent for the second quarter of 2026 from 11.5 percent for the second quarter of 2025. The increase in gross margin was primarily due to significant changes in our estimated gross profit on certain projects, related to better-than-anticipated productivity, favorable job close outs and an increase in scope on certain projects. These margin increases were partially offset by an increase in costs associated with project inefficiencies on certain projects. Changes in estimates of gross profit on certain projects resulted in a net gross margin increase of 0.9 percent for the second quarter of 2026, compared to a net gross margin decrease of 1.0 percent for the second quarter of 2025. Selling, general and administrative expenses ("SG&A") increased to $74.4 million in the second quarter of 2026, compared to $63.3 million for the second quarter of 2025. 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. Interest income increased to $0.9 million in the second quarter of 2026. Interest income was not significant for the second quarter of 2025. The period-over-period increase was primarily due to higher average balances held in money market accounts in the second quarter of 2026 as compared to the second quarter of 2025. Interest expense decreased to $0.7 million in the second quarter of 2026, compared to $1.9 million for the second quarter of 2025. The period-over-period decrease was primarily due to lower average outstanding debt balances during the second quarter of 2026 as compared to the second quarter of 2025. Income tax expense was $17.3 million for the second quarter of 2026, with an effective tax rate of 25.7 percent, compared to an income tax expense of $10.9 million for the second quarter of 2025, with an effective tax rate of 29.2 percent. The period-over-period change in tax rate was primarily due to a favorable impact from stock compensation excess tax benefits, partially offset by the impact of the net CFC tested income (“NCTI”) and other permanent difference items. For the second quarter of 2026, net income was $49.9 million, or $3.17 per diluted share, compared to $26.5 million, or $1.70 per diluted share, for the same period of 2025. Second-quarter 2026 EBITDA, a non-GAAP financial measure, was $85.0 million, compared to $55.6 million in the second quarter of 2025. First-Half ResultsMYR reported first-half 2026 revenues of $2.08 billion, an increase of $348.2 million, compared to the first half of 2025. Specifically, our T&D segment reported revenues of $1.06 billion, an increase of $97.0 million, from the first half of 2025, due to increases in revenue on unit price contracts and T&E contracts, partially offset by a decrease in revenue on fixed price contracts. Our C&I segment reported revenues of $1.02 billion, an increase of $251.2 million, from the first half of 2025, primarily due to an increase in revenue on fixed priced contracts. Consolidated gross profit increased to $277.1 million in the first half of 2026, compared to $200.6 million in the first half of 2025. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 13.3 percent for the first half of 2026 from 11.6 percent for the first half of 2025. The increase in gross margin was primarily due to significant changes in our estimated gross profit on certain projects, related to better-than-anticipated productivity, an increase in scope on certain projects and favorable job close outs. These margin increases were partially offset by an increase in costs associated with project inefficiencies on certain projects. Gross margin was also positively impacted during the first half of 2026, by a larger portion of our projects progressing at higher contractual margins, some of which are nearing or are at completion. Changes in estimates of gross profit on certain projects resulted in a net gross margin increase of 0.7 percent for the first half of 2026, compared to a net gross margin decrease of 1.2 percent for the first half of 2025. SG&A increased to $143.8 million in the first half of 2026, compared to $125.8 million for the first half of 2025. 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. Interest income increased to $1.8 million in the first half of 2026, compared to $0.2 million for the first half of 2025. The period-over-period increase was primarily due to higher average balances held in money market accounts in the first half of 2026 as compared to the first half of 2025. Interest expense decreased to $1.4 million in the first half of 2026, compared to $3.3 million for the first half of 2025. The period-over-period decrease was primarily due to lower average outstanding debt balances and lower interest rates during the first half of 2026 as compared to the first half of 2025. Income tax expense was $34.5 million for the first half of 2026, with an effective tax rate of 26.3 percent, compared to income tax expense of $20.4 million for the first half of 2025, with an effective tax rate of 29.1 percent. The period-over-period change in tax rate was primarily due to a favorable impact from stock compensation excess tax benefits, partially offset by the impact of NCTI and other permanent difference items. For the first half of 2026, net income was $96.7 million, or $6.15 per diluted share, compared to $49.8 million, or $3.15 per diluted share, for the same period of 2025. BacklogAs of June 30, 2026, MYR's backlog was $3.16 billion, which was an increase of $518.4 million, or 19.6 percent, from the $2.64 billion reported as of June 30, 2025. As of June 30, 2026, T&D backlog was $1.27 billion and C&I backlog was $1.89 billion. Balance SheetAs of June 30, 2026, MYR had $460.5 million of borrowing availability under its $490 million revolving credit facility and $137.9 million in cash and cash equivalents. 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 2026 results on Thursday, July 30, 2026 at 8:00 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/BIbbc17de83db84b5cb42140dcb9c30efe. 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. 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, clean energy projects, airports, hospitals, hotels, commercial and industrial facilities, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, stadiums 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, 2025, 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, [email protected] Financial tables follow… See notes at the end of this earnings release See notes at the end of this earnings release. See notes at the end of this earnings release.

MYR Group (MYRG) came out with quarterly earnings of $3.17 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $1.7 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.30%. A quarter ago, it was expected that this electrical construction services provider would post earnings of $2.09 per share when it actually produced earnings of $2.99, delivering a surprise of +43.06%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. MYR, which belongs to the Zacks Electric Construction industry, posted revenues of $1.08 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.66%. This compares to year-ago revenues of $900.33 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MYR shares have added about 55.9% since the beginning of the year versus the S&P 500's gain of 8.5%. While MYR has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MYR was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.84 on $1.05 billion in revenues for the coming quarter and $11.43 on $4.1 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electric Construction is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Utilities sector, Global Water Resources, Inc. (GWRS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Global Water Resources, Inc.'s revenues are expected to be $15 million, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MYR Group, Inc. (MYRG) : Free Stock Analysis Report Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research