MYR Group’s second quarter results surpassed Wall Street’s expectations for both revenue and adjusted earnings per share, yet the market reacted negatively. Management attributed quarterly growth primarily to strong execution across both the Transmission and Distribution (T&D) and Commercial and Industrial (C&I) segments, supported by new master service agreements and robust demand for electrical infrastructure. CEO Richard Swartz highlighted that better-than-anticipated productivity and favorable project closeouts drove improved margins, though some project inefficiencies and higher labor costs remained headwinds. The company also noted the positive impact of expanding customer relationships and healthy bidding activity.
Is now the time to buy MYRG? Find out in our full research report (it’s free).
MYR Group (MYRG) Q2 CY2025 Highlights:
- Revenue: $900.3 million vs analyst estimates of $849 million (8.6% year-on-year growth, 6% beat)
- Adjusted EPS: $1.70 vs analyst estimates of $1.52 (12.1% beat)
- Adjusted EBITDA: $55.6 million vs analyst estimates of $51.94 million (6.2% margin, 7% beat)
- Operating Margin: 4.4%, up from -2.5% in the same quarter last year
- Backlog: $2.33 billion at quarter end, down 8.3% year on year
- Market Capitalization: $2.99 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MYR Group’s Q2 Earnings Call
- Sangita Jain (KeyBanc): asked if the new Xcel Energy master service agreement was incremental or a renewal. CEO Richard Swartz clarified it was entirely new scope, not a displacement or renewal, and is expected to add to existing business.
- Sangita Jain (KeyBanc): inquired about the sequential decline in C&I backlog. Swartz attributed this to normal project progression and contract negotiation timing, emphasizing the inherent lumpiness in large project awards.
- Atidrip Modak (Goldman Sachs): questioned whether new master service agreements would prompt further expansion and if more announcements were likely. Swartz responded that MYR Group pursues both MSAs and bid work, with continued interest in expanding recurring revenue relationships.
- Justin Hauke (Baird): asked for an update on solar and renewables exposure. CFO Kelly Huntington reported that solar’s share of T&D revenue had declined, with the company remaining selective on new projects and focusing on contractual quality. She noted that on the C&I side, solar remains a core market but is not dominant over other key areas, such as data centers.
- Brian Brophy (Stifel): asked whether recent growth could lead to higher-than-expected T&D segment growth. Huntington reiterated the outlook for high single-digit growth, excluding solar, but flagged the impact of project timing and materials expenses.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be watching (1) the pace and profitability of new project awards, especially master service agreements and large C&I contracts, (2) the evolution of backlog trends as a sign of future revenue visibility and project pipeline health, and (3) management’s capital allocation decisions between acquisitions, organic investment, and share repurchases. Continued progress in renewables and data center markets will also serve as key indicators for MYR Group’s growth trajectory.
MYR Group currently trades at $192.55, down from $200.34 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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