MYR Group Inc.

What they do

MYR operates through two segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I). T&D provides construction, maintenance, and repair of high-voltage transmission lines, substations, and distribution systems, along with clean energy and EV charging infrastructure. C&I offers electrical contracting for data centers, transportation, health care, and other facilities, often as a subcontractor or directly for owners.

Revenue drivers

• Transmission and Distribution (T&D) — Generates revenue from fixed-price, unit-price, and master service agreements with electric utilities. In Q2 2026, T&D revenue was $524.0 million, up $17.7 million from Q2 2025.
• Commercial and Industrial (C&I) — Revenue from fixed-priced contracts for data centers, transportation, and other projects. Record quarterly revenue of $557.7 million in Q2 2026, up $163.6 million year-over-year.

Recent performance

For Q2 2026, MYR reported record revenue of $1.08 billion, up $181.4 million from Q2 2025, and record net income of $49.9 million ($3.17 diluted EPS). Six-month 2026 revenue was $2.08 billion, with net income of $96.7 million and EBITDA of $166.5 million, versus $1.73 billion revenue and $49.8 million net income in the prior-year period. Gross margin improved to 13.2% in Q2 2026 from 11.5% a year earlier, driven by better productivity and favorable job close-outs. Backlog reached a record $3.16 billion at quarter-end.

Strategy

Management focuses on disciplined project selection, cost monitoring, and customer accountability to improve margins. The company is pursuing strategic acquisitions, such as the July 1, 2026 acquisition of Valley Electric and Comet Electric, to enhance C&I capabilities and expand geographic footprint. They aim to capitalize on ongoing investment in electrical infrastructure, data centers, and transportation, while maintaining strong customer relationships.

Risks

• Fixed-price contract risk — Actual costs may exceed estimates on fixed-price and unit-price contracts, reducing profitability.
• Bonding and credit availability — Inability to obtain bonds or letters of credit could limit ability to bid on or perform projects.
• Supply chain and tariff exposure — Cost and availability of materials and equipment could be hurt by tariffs, inflation, and supply disruptions.
• Project delays and variability — Results can fluctuate due to timing, permitting, weather, and customer-caused delays.

Outlook

Management sees healthy bidding activity in both segments, driven by utility investment in grid reliability, storm hardening, and electrification, plus strong C&I opportunities in data centers and infrastructure. They expect long-term C&I growth to track regional economic growth. However, large multi-year transmission awards may not impact results until 2027 or later, and policy, tariff, and inflation uncertainties could affect demand.