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    MYRG
    Earnings call· Dec 2025(Q4 FY25)

    MYR GROUP Q4 FY25 earnings call MYRG

    Feb 26, 2026 Source

    Executive summary

    MYR Group Q4 FY25 — Record Revenues and Strong Backlog Growth

    MYR Group concluded FY25 with record annual revenues and robust Q4 performance, driven by healthy bidding activity and sustained investment in electrification infrastructure. The company maintains a strong backlog and significant cash flow, positioning it favorably for future growth, though project inefficiencies and potential shifts in billing profiles are noted. Management remains optimistic about large transmission and data center opportunities, anticipating a decade of growth.

    Highlights

    5

    • Achieved record annual revenues of $3.7 billion for FY25.

    • Fourth quarter 2025 revenues increased 17% to $974 million compared to prior year.

    • Fourth quarter 2025 net income was a record $37 million, up from $16 million in the same period last year.

    • Total backlog grew 9.6% to $2.8 billion as of December 31, 2025.

    • Fourth quarter 2025 operating cash flow was $115 million, a significant increase from $21 million in the prior year.

    Concerns

    2

    • Gross and operating margin increases were partially offset by an increase in costs associated with inefficiencies on certain projects.

    • Strong net overbuild position, which contributed to lower DSOs, could represent a "little bit of a headwind" looking forward depending on work mix.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year revenue growth
    10%-ish range
    high materiality
    High
    Full-year operating margin
    midpart of both our T&D and C&I margin profile
    high materiality
    High
    Q1 FY26 revenue growth
    a little bit above that full year rate of about 10% growth
    medium materiality
    High
    Large transmission market bookings
    potential bookings for 2027 revenue
    high materiality
    High
    Large transmission market growth duration
    decade worth of growth
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Transmission and Distribution (T&D)
    Revenues increased by $64 million in transmission and $17 million in distribution. The operating income margin increased from 6.7% in Q4 FY24, primarily due to Q4 FY24 being negatively impacted by certain clean energy projects. Q4 FY25 was positively impacted by a favorable change order and better-than-anticipated productivity, partially offset by increased costs from project inefficiencies.
    Transmission revenue: $330 millionDistribution revenue: $201 millionWork performed under master service agreements: ~60% of T&D revenues
    		$531 million18%—7.4% operating income margin
    Commercial and Industrial (C&I)
    Record high revenues for the segment. The operating income margin increased from 3.9% in Q4 FY24, primarily related to a larger portion of projects progressing at higher contractual margins, some nearing completion. Also positively impacted by better-than-anticipated productivity, a favorable change order, and a favorable job close out, partially offset by increased costs from project inefficiencies.
    Fixed price contracts: primary driver of revenue increase
    		$443 million17%—6.6% operating income margin

    Operational metrics

    18
    Annual Revenues
    $3.7 billion
    FY25

    Record annual revenues.

    Full year Net Income
    $118 million
    FY25
    Full year EBITDA
    $233 million
    FY25
    Gross Margin
    11.4%vs 10.4% in Q4 FY24
    Q4 FY25

    Increase primarily due to Q4 FY24 negative impact from certain T&D clean energy projects and a C&I project. Positively impacted by better-than-anticipated productivity, favorable change orders, and a favorable job close out, partially offset by project inefficiencies.

    SG&A Expenses
    $65 millionincrease of $8 million YoY
    Q4 FY25

    Primarily due to increases in employee incentive compensation costs and employee-related expenses to support future growth.

    Interest Expense
    $1 milliondecrease of $1 million YoY
    Q4 FY25

    Attributable to lower interest rates and lower average outstanding debt balances.

    Effective Tax Rate
    21.2%vs 40.9% in Q4 FY24
    Q4 FY25

    Decrease primarily due to changes in state tax rates used to measure state deferred income taxes and lower permanent difference items.

    Net Income per Diluted Share
    $2.33vs $0.99 in Q4 FY24
    Q4 FY25
    EBITDA
    $64 millionvs $45 million in Q4 FY24
    Q4 FY25

    Record EBITDA for the quarter.

    Working Capital
    $265 million
    as of December 31, 2025
    Funded Debt
    $59 million
    as of December 31, 2025
    Borrowing Availability under Credit Facility
    $408 million
    as of December 31, 2025
    Cash and Cash Equivalents
    $150 million
    as of December 31, 2025
    Funded Debt-to-EBITDA Leverage Ratio
    0.25x
    as of December 31, 2025

    Maintained a strong leverage ratio.

    Days Sales Outstanding (DSOs)
    mid-50svs historical average of ~70 days
    current

    Driven by a combination of getting beyond problem projects and a strong net overbuild position from large fixed-price C&I work.

    Share Repurchases
    >$150 million
    last 2 years

    Deployed opportunistically.

    Client Retention
    >90%
    ongoing

    Refers to return clientele, highlighting focus on long-term relationships.

    Office Locations
    65+
    current

    Across the U.S. and Canada, used for local expertise.

    Industry KPIs

    8
    MetricValueDetails
    Total backlog$2.8 billionUSD
    12 month backlog—
    Book to bill ratio—
    End market pipelineData centers continue to be one of the most active areas of investment nationwide
    Acquisition contribution—
    Self perform activity mix~60%%
    Same store organic revenue growth—
    Craft skilled labor headcount capacity—

    Orderbook & backlog

    3
    Total Backlog$2.8 billionDecember 31, 2025

    9.6% increase from the prior year

    Includes projected revenue for only a 3-month period for many unit price, time and equipment, time and materials, and cost plus contracts, which are generally awarded as part of a master service agreement.

    T&D Segment Backlog$1.0 billionDecember 31, 2025
    C&I Segment Backlog$1.8 billionDecember 31, 2025

    Deals & partnerships

    9
    Great Southwestern ConstructionNew 7-year master service agreement for transmission line construction and maintenance projects.7 years

    Executed in Kentucky.

    L.E. MyersAwarded a transmission project.

    Awarded in Virginia.

    L.E. MyersAwarded transmission work.

    Awarded in Iowa.

    Sturgeon ElectricAwarded two transmission projects.

    Awarded in Oregon.

    Sturgeon ElectricAwarded transmission work.

    Awarded in Arizona.

    Sturgeon Electric and High Country Line ConstructionAwarded station and line work.

    Awarded in Washington, California and Arizona.

    Harlan ElectricSelected to perform multiple jobs.

    Throughout New Jersey and Pennsylvania.

    Unnamed customersAwarded multiple data center projects.

    In Colorado, Arizona, California and New Jersey.

    Unnamed customersAwarded projects in clean energy, manufacturing and industrial.

    In California and Arizona.

    Risks & headwinds

    5
    Project inefficienciesQ4 FY25

    Partially offset gross and operating margin increases in Q4 FY25.

    Mitigation: Focus on efficiency, prefabrication, and better equipment utilization; being a solution provider for customers.

    Potential headwind from strong net overbuild position impacting cash flowLooking forward

    DSOs in mid-50s versus historical average of ~70 days.

    Mitigation: Impact depends on the mix of work (MSA vs. large fixed-price projects with more favorable billing profiles).

    Weather impacts on T&D segmentOngoing

    Not quantified, but stated as the "biggest impact we can have" on the T&D side.

    Mitigation: Monitoring weather; storm work can sometimes offset; base business is day-to-day construction projects; effects are localized.

    Timing of project rollouts (delays)Near-term

    Can see a 2- to 4-month push on projects.

    Mitigation: Projects are a matter of 'when' they will be built, not 'if'.

    Permitting delaysNear-term

    Not quantified.

    Mitigation: Projects are a matter of 'when' they will be built, not 'if'.

    What to watch in Q1 FY26

    5

    Large transmission market bookings for 2027 revenue

    Late 2026 (for bookings)
    CurrentOptimistic, "good conversations" ongoing
    TargetActual bookings for 2027 revenue

    Why it matters

    Signals future revenue growth and long-term market strength in a key segment, aligning with projected industry investments.

    Nothing's changed on that side. I mean it takes a while to bring these projects to market, and we've known that. So we're in good conversations with our clients, and we believe we'll capture some of that work that will start to burn in '27.

    Q&A highlights

    8

    Asked for thoughts on the large transmission market and if the optimism for late 2026 bookings for 2027 revenue remains.

    Management confirmed that their optimistic outlook for the large transmission market, including potential bookings in late 2026 for 2027 revenue, remains unchanged. They are in active discussions with clients.

    “Nothing's changed on that side. I mean it takes a while to bring these projects to market, and we've known that. So we're in good conversations with our clients, and we believe we'll capture some of that work that will start to burn in '27.”

    asked by Sangita Jain · answered by Richard Swartz

    2 min read6 chapters

    Detailed Narrative

    01

    Record Financial Performance

    MYR Group achieved record annual revenues of $3.7 billion for the year ended December 31, 2025. Fourth quarter 2025 revenues were $974 million, marking a 17% increase year-over-year. The company reported a record net income of $37 million for Q4 2025, up from $16 million in the prior year, resulting in diluted EPS of $2.33. EBITDA also reached a record $64 million for the quarter, compared to $45 million in Q4 2024.

    02

    Strong Backlog and Market Activity

    Total backlog as of December 31, 2025, stood at $2.8 billion, representing a 9.6% increase from the prior year. This robust backlog reflects a healthy bidding environment and continued investment in infrastructure to meet growing electrification needs across the U.S. and Canada. Management emphasized strong bidding activity across both T&D and C&I segments, focusing on strategic project pursuit and execution, with over 90% of business coming from return clientele.

    03

    Segment Performance Highlights

    The Transmission and Distribution (T&D) segment delivered $531 million in revenues, an 18% increase year-over-year, with an operating income margin of 7.4%, up from 6.7% in Q4 2024. The Commercial and Industrial (C&I) segment achieved record revenues of $443 million, a 17% increase year-over-year, and an operating income margin of 6.6%, significantly up from 3.9% in Q4 2024. Both segments saw margin improvements driven by better productivity, favorable change orders, and job close-outs, partially offset by project inefficiencies.

    04

    Cash Flow and Liquidity Strength

    Fourth quarter 2025 operating cash flow was $115 million, a substantial increase from $21 million in the prior year, primarily due to improved billing and payment timing, higher net income, and lower contingent compensation payments. Free cash flow was $85 million, up from $9 million. The company maintains a strong balance sheet with $150 million in cash, $408 million in borrowing availability, and a low funded debt-to-EBITDA leverage ratio of 0.25x, enabling organic growth, acquisitions, and opportunistic share repurchases.

    05

    Data Center and Infrastructure Demand

    Data centers continue to be a highly active investment area nationwide, driven by accelerating demand for cloud, AI, and digital infrastructure, with robust demand expected through 2026. Infrastructure-related construction is also benefiting from ongoing commitments in transportation, clean energy, wastewater, and fresh water treatment facilities. MYR Group is actively engaged with hyperscalers, general contractors, and developers for both new construction and retrofit work in data centers, which can extend for many years on campus build-outs.

    06

    Large Transmission Market Opportunities

    Management remains optimistic about the large transmission market, expecting potential bookings in late 2026 for 2027 revenue. Investor-owned electric companies are projected to invest approximately $178 billion in transmission construction between 2025 and 2028, reflecting the ongoing need for grid modernization and increased capacity. MYR Group is positioning itself to capture future 765 kV, 500 kV, and 345 kV transmission and substation projects, anticipating a decade of growth in this sector.

    AI-generated summary of the company’s earnings call. Not investment advice.