MYR Group Inc. Reports $833.6 Million Revenue in Q1 2025, Up 2.2% Year-Over-Year

MYR Group Inc. reported a consolidated revenue of $833.6 million for the first quarter of 2025, reflecting a 2.2% increase from $815.6 million in the same period of 2024. The growth was primarily driven by a $46.7 million increase in revenue from the Commercial and Industrial (C&I) segment, alongside a $15.5 million rise in distribution project revenues. However, this was partially offset by a $44.1 million decline in transmission project revenues, particularly in clean energy initiatives. The company's net income for the quarter was $23.3 million, up from $18.9 million a year earlier, resulting in a diluted earnings per share of $1.45 compared to $1.12 in the prior year.

In terms of operational performance, MYR Group's gross profit increased to $96.9 million, representing a gross margin of 11.6%, up from 10.6% in the previous year. This improvement was attributed to a higher proportion of projects progressing at better contractual margins, despite facing challenges from increased costs and project inefficiencies that negatively impacted margins. Selling, general, and administrative expenses remained relatively stable at $62.5 million, reflecting ongoing investments in employee-related costs to support future growth.

The company also reported significant changes in its balance sheet, with total assets decreasing to $1.52 billion from $1.57 billion at the end of 2024. Current liabilities were slightly reduced to $738.7 million, while total liabilities remained stable at $973.4 million. MYR Group's backlog increased to $2.64 billion as of March 31, 2025, compared to $2.58 billion at the end of 2024, indicating a positive outlook for future revenue generation. The increase in backlog was driven by both the Transmission and Distribution (T&D) and C&I segments, which saw respective increases of $54.4 million and $9.4 million.

Strategically, MYR Group has been active in share repurchases, having repurchased 639,207 shares at an average price of $117.33 per share, exhausting nearly all funds allocated under its $75 million share repurchase program. The company maintains a strong liquidity position with $379.4 million available under its revolving credit facility, which it plans to utilize for organic growth, acquisitions, and further share repurchases. Looking ahead, MYR Group anticipates continued demand for its services, particularly in the T&D sector, driven by infrastructure investments and the need for utility upgrades to enhance reliability and accommodate new energy sources.