MYR Group (MYRG) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenues of $833.6M–$834M, up 2.2% year-over-year, with net income of $23.3M and EBITDA of $50.2M, reflecting strong electrification demand and healthy bidding activity across both business segments.

• Gross margin improved to 11.6% from 10.6% year-over-year, driven by higher-margin project completions and favorable job closeouts.

• Backlog reached $2.64B at March 31, 2025, up 9% year-over-year, with increases in both T&D and C&I segments.

• Maintains a strong balance sheet with $379M–$379.4M available under a $490M credit facility and low debt leverage, supporting organic growth, acquisitions, and share repurchases.

• Continued focus on operational consistency, quality project execution, and long-term growth, supported by a strong and nimble workforce.

Financial highlights

• Q1 2025 revenue: $833.6M–$834M; net income: $23.3M ($1.45 per diluted share); EBITDA: $50.2M; free cash flow: $70.2M, a significant increase from $(18.1)M in Q1 2024.

• Gross profit: $96.9M, up 12.4% year-over-year; operating income: $34.3M (4.1% margin), up from $24.3M (3.0% margin) in Q1 2024.

• Book value per share at quarter-end was $35.21; tangible book value per share was $23.17.

• Cash and cash equivalents increased to $10.9M from $3.5M at year-end.

• LTM (March 31, 2025) revenue: $3.38B; net income: $34.6M; EBITDA: $128.1M; free cash flow: $99.5M.

Outlook and guidance

• Management expects continued strong demand for electrification projects and healthy bidding activity in both T&D and C&I segments, supported by infrastructure legislation and increased electrification demand.

• Most of the $2.64B backlog is expected to be realized within 24 months, with 80% within 12 months.

• Anticipates ongoing margin pressure from labor, equipment, and material costs, but expects financial position and cash flows to support growth and capital allocation.

• Core T&D business anticipated to grow at a high single-digit rate, excluding solar, with solar headwinds expected to diminish after Q2.

• C&I segment pipeline remains robust, with no signs of customer pullback despite macro uncertainties.