MYR Group (NASDAQ:MYRG) executives told investors the company finished 2025 with record revenue and improved profitability, supported by strong demand across its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) operations. Management also highlighted a “healthy bidding environment,” steady backlog, and continued infrastructure investment tied to electrification needs in the U.S. and Canada.
Financial results: record revenue and stronger fourth-quarter profitability
For the year ended Dec. 31, 2025, MYR Group reported record annual revenue of $3.7 billion, net income of $118 million, and EBITDA of $233 million, according to Chief Financial Officer Kelly Huntington.
Fourth-quarter net income was a record $37 million versus $16 million a year earlier, with diluted EPS of $2.33 compared to $0.99. EBITDA was a record $64 million, up from $45 million in the prior-year quarter.
Segment profitability also improved year over year:
- T&D operating income margin: 7.4% in Q4 2025 vs. 6.7% in Q4 2024.
- C&I operating income margin: 6.6% in Q4 2025 vs. 3.9% in Q4 2024.
Huntington said SG&A expense in the quarter rose to $65 million, up $8 million, primarily due to higher incentive compensation costs and employee-related expenses “to support future growth.” Interest expense was $1 million, down $1 million year over year, which she attributed to lower interest rates and lower average debt balances. The effective tax rate decreased to 21.2% from 40.9%, primarily due to changes in state tax rates used to measure deferred taxes and lower permanent difference items.
Backlog and cash flow: improved working capital dynamics
Total backlog at Dec. 31, 2025, was $2.8 billion, up 9.6% from the prior year, with $1.0 billion in T&D and $1.8 billion in C&I. Huntington noted that backlog for many unit-price, time-and-equipment, time-and-materials, and cost-plus contracts generally reflects only a three-month period of projected revenue, even though master service agreements often have longer durations.
Operating cash flow in the fourth quarter was $115 million, up from $21 million in the year-ago quarter. Free cash flow was $85 million compared to $9 million a year earlier, reflecting higher operating cash flow partially offset by higher capital expenditures “to support future growth.”
In Q&A, Huntington said cash flow strength was driven in part by lower days sales outstanding, which she said have improved to the “mid-50s” compared with a historical average around 70 days. She attributed the improvement to a combination of factors, including moving beyond “problem projects” from 2024 and a “very strong net overbuild position,” particularly tied to large fixed-price work in C&I. She added that this dynamic could be “a little bit of a headwind” going forward depending on project mix, noting that more MSA-weighted work tends to have a less favorable billing profile than some larger fixed-price projects.
MYR Group ended the year with approximately $265 million of working capital, $59 million of funded debt, $150 million in cash and cash equivalents, and $408 million of availability under its credit facility. Huntington said the company’s funded debt-to-EBITDA leverage ratio was 0.25x as of year end.
T&D: MSA-driven work, grid investment outlook, and large transmission positioning
T&D revenue in the fourth quarter rose 18% year over year to $531 million, including $330 million from transmission and $201 million from distribution. Huntington said work performed under master service agreements continued to represent approximately 60% of T&D revenue.
Brian Stern, COO of the T&D segment, said the business delivered steady results in the quarter and year, supported by “a healthy mix of smaller to mid-sized jobs and ongoing master service agreements.” Stern cited several project and MSA wins across states including Kentucky, Virginia, Iowa, Oregon, Arizona, Washington, California, New Jersey, and Pennsylvania.
Stern also referenced Edison Electric Institute data projecting approximately $178 billion of investor-owned utility transmission construction investment from 2025 to 2028, which he said reflects the need for grid modernization and capacity expansion to accommodate load growth.
On large transmission, CEO Rick Swartz reiterated that the company continues to see the same trend it discussed previously, noting it takes time to bring major projects to market. He said the company believes it will capture some work that “will start to burn in 2027.” Swartz also highlighted Texas as a market that has been good for the company “for the last decade,” and said MYR is excited about opportunities tied to future 765 kV projects as well as 500 kV and 345 kV work.
When asked whether large transmission awards could strain resources, Swartz said he does not expect to pull resources from elsewhere, citing retention, recruiting, and employee development efforts, and described the opportunity as “additive.” He added that potential margin improvement from large transmission would likely come from better equipment utilization and efficiency initiatives such as prefabrication and kitting.
C&I: record segment revenue, data center activity, and diversified backlog
C&I fourth-quarter revenue increased 17% to a record $443 million, which Huntington said was driven primarily by higher revenue on fixed-price contracts. Don Egan, COO of the C&I segment, said core markets remain healthy and pointed to steady bidding activity and rising backlog.
Egan highlighted data centers as a particularly active area of investment, driven by demand for cloud, AI, and digital infrastructure. He said MYR was awarded multiple data center projects in Colorado, Arizona, California, and New Jersey during the period, and also cited awards tied to clean energy, manufacturing, and industrial work in California and Arizona.
In Q&A, management said the company is in ongoing discussions with hyperscalers, general contractors, developers, and end users/owners on data center work and described C&I backlog as “very diversified.” Swartz added that the opportunity is not limited to new data center construction, pointing to retrofit work at existing facilities, and said that “once we’re in a data center, we tend to stay there for a long time.”
Capital allocation and outlook themes discussed
On capital allocation, Huntington said the company expects to prioritize growth—both organic and through acquisitions—while using share repurchases opportunistically. She noted that over the past two years the company deployed more than $150 million in repurchases at an average price of $117.
Regarding acquisition priorities, Huntington said the company remains focused on tuck-in deals. She described T&D acquisition interest as primarily centered on electrical contractors, with additional interest in ancillary services such as right-of-way, foundation, or environmental work. For C&I, she said the company is screening opportunities for geographic fit and exposure to higher-growth, less cyclical, more complex end markets.
Executives repeatedly emphasized selectivity in bidding and a focus on long-term client relationships. Swartz said more than 90% of the company’s business is from return customers, and he described a preference for select bid lists and teaming arrangements rather than heavily bid “one-off” projects. He also told investors the company sees less risk in its backlog than a year ago or five years ago, citing a continued emphasis on de-risking projects.
On near-term seasonality, Huntington said the company expects first-quarter revenue growth to trend a bit above the full-year growth rate discussed on the call, citing an easier comparison due to a slower start in the prior year’s first quarter. Swartz said weather can impact T&D execution, particularly wet conditions affecting right-of-way access, though he added the impacts are often localized and not uniform across the company’s footprint.
About MYR Group (NASDAQ:MYRG)
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.
