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MYR Group Inc. Announces Third Quarter and First Nine Months 2025 Results

globenewswire.com
MYRG The company reported increased revenues, gross profit, and net income, with management expressing confidence in long-term growth opportunities, indicating a bullish sentiment.

THORNTON, Colo., Oct. 29, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. (“MYR” or the “Company”) (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced today its third quarter and first nine months 2025 financial results.

Highlights for Third Quarter 2025

Management Comments

Rick Swartz, MYR’s President and CEO, said, “Our third quarter performance resulted in quarterly revenues of $950 million and year-over-year increases in net income, consolidated gross profit, gross margin, and EBITDA.” Mr. Swartz continued, “By enhancing relationships with our preferred customers and expanding work in our core markets, we continue to capitalize on strong long-term growth opportunities. The accelerating pace of electrification, future project demand, load growth, and the need for resilient infrastructure are driving investment in electrical infrastructure, which positions us well for continued success in the future."

Third Quarter Results

MYR reported third quarter 2025 revenues of $950.4 million, an increase of $62.4 million, compared to the third quarter of 2024. Specifically, our Transmission and Distribution (“T&D”) segment reported quarterly revenues of $503.4 million, an increase of $21.5 million, from the third quarter of 2024, due to an increase of $16.3 million in revenue on transmission projects and an increase of $5.2 million in revenue on distribution projects. Our Commercial and Industrial (“C&I”) segment reported quarterly revenues of $447.0 million, an increase of $40.8 million, from the third quarter of 2024.

Consolidated gross profit increased to $111.9 million in the third quarter of 2025, compared to $77.3 million for the third quarter of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.8 percent for the third quarter of 2025 from 8.7 percent for the third quarter of 2024. The increase in gross margin was primarily due to the third quarter of 2024 being negatively impacted by certain T&D clean energy projects and a C&I project. In the third quarter of 2025, gross margin was also positively impacted by better-than-anticipated productivity, favorable change orders and favorable job closeouts. These margin increases were partially offset by an increase in costs associated with project inefficiencies, unfavorable change orders and inclement weather. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 0.6 percent and 3.9 percent for the third quarter of 2025 and 2024, respectively.

Selling, general and administrative expenses (“SG&A”) increased to $65.9 million in the third quarter of 2025, compared to $57.5 million for the third quarter of 2024. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $1.1 million of contingent compensation expense, related to a prior acquisition, recognized during the third quarter of 2024, that did not recur.

Interest expense decreased to $1.4 million in the third quarter of 2025, compared to $2.0 million for the third quarter of 2024. The period-over-period decrease was primarily due to lower interest rates and lower average outstanding debt balances during the third quarter of 2025 as compared to the third quarter of 2024.

Income tax expense was $12.6 million for the third quarter of 2025, with an effective tax rate of 28.3 percent, compared to an income tax benefit of $7.9 million for the third quarter of 2024, with an effective tax rate of 42.5 percent. The period-over-period change in tax rate was primarily due to lower permanent difference items mostly associated with deductibility limits of contingent compensation experienced in the prior year, as well as lower U.S. taxes on Canadian income.

For the third quarter of 2025, net income was $32.1 million, or $2.05 per diluted share, compared to $10.6 million, or $0.65 per diluted share, for the same period of 2024. Third-quarter 2025 EBITDA, a non-GAAP financial measure, was $62.7 million, compared to $37.2 million in the third quarter of 2024.

First Nine Months Results

MYR reported first nine months 2025 revenues of $2.68 billion, an increase of $151.8 million, compared to the first nine months of 2024. Specifically, our T&D segment reported revenues of $1.47 billion, an increase of $41.0 million, from the first nine months of 2024, due to an increase of $45.8 million in revenue on distribution projects, partially offset by a decrease of $4.9 million in revenue on transmission projects, primarily related to clean energy. Our C&I segment reported revenues of $1.21 billion, an increase of $110.9 million, from the first nine months of 2024.

Consolidated gross profit increased to $312.5 million in the first nine months of 2025, compared to $204.4 million in the first nine months of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.6 percent for the first nine months of 2025 from 8.1 percent for the first nine months of 2024. The increase in gross margin was primarily due to the first nine months of 2024 being negatively impacted by certain T&D clean energy projects and by a C&I project. In the first nine months of 2025, gross margin was also positively impacted by better-than-anticipated productivity, favorable change orders and a favorable job closeout. These margin increases were partially offset by an increase in costs associated with labor and project inefficiencies and unfavorable change orders. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 1.3 percent and 4.4 percent for the first nine months of 2025 and 2024, respectively.

SG&A increased to $191.8 million in the first nine months of 2025, compared to $181.5 million for the first nine months of 2024. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $9.3 million of contingent compensation expense, related to a prior acquisition, recognized during the first nine months of 2024, that did not recur.

Interest expense increased to $4.8 million in the first nine months of 2025, compared to $4.3 million for the first nine months of 2024. The period-over-period increase was primarily due to higher average outstanding debt balances, partially offset by lower interest rates during the first nine months of 2025 as compared to the first nine months of 2024.

Income tax expense was $33.0 million for the first nine months of 2025, with an effective tax rate of 28.7 percent, compared to income tax expense of $5.2 million for the first nine months of 2024, with an effective tax rate of 26.6 percent. The period-over-period change in tax rate was primarily due to higher pretax income, lower other permanent difference items and lower stock compensation excess tax benefits.

For the first nine months of 2025, net income was $81.9 million, or $5.20 per diluted share, compared to $14.3 million, or $0.86 per diluted share, for the same period of 2024.

Backlog

As of September 30, 2025, MYR's backlog was $2.66 billion, compared to $2.64 billion as of June 30, 2025. As of September 30, 2025, T&D backlog was $929.0 million, and C&I backlog was $1.73 billion. Total backlog as of September 30, 2025 increased $64.4 million, or 2.5 percent, from the $2.60 billion reported as of September 30, 2024.

Balance Sheet

As of September 30, 2025, MYR had $399.8 million of borrowing availability under its $490 million revolving credit facility.

Non-GAAP Financial Measures

To 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 Call

MYR will host a conference call to discuss its third quarter 2025 results on Thursday, October 30, 2025 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/BIb677d0491fbf409bb437eeb11cfee512. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode. Participants may access the audio-only webcast of the conference call from the Investors page of MYR Group’s website at myrgroup.com. A replay of the webcast will be available for seven days.

About MYR Group Inc.

MYR Group is a holding company of leading, specialty electrical contractors providing services throughout the United States and Canada through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). MYR Group subsidiaries have the experience and expertise to complete electrical installations of any type and size. Through their T&D segment they provide services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. Their comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Through their C&I segment, they provide a broad range of services which include the design, installation, maintenance and repair of commercial and industrial wiring generally for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. For more information, visit myrgroup.com.

Forward-Looking Statements

Various statements in this announcement, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenue, income, capital spending, segment improvements and investments. Forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “likely,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “unlikely,” or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak only as of the date of this announcement. We disclaim any obligation to update these statements (unless required by securities laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Forward-looking statements in this announcement should be evaluated together with the many uncertainties that affect MYR's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A. of MYR's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in any risk factors or cautionary statements contained in MYR's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

MYR Group Inc. Contact:

Jennifer Harper, Vice President, Investor Relations & Treasurer, 847-979-5835, investorinfo@myrgroup.com

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.