MYR Group (MYRG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues were $888 million, with net income of $10.6 million ($0.65 per diluted share) and EBITDA of $37.2 million; backlog stood at $2.60 billion as of September 30, 2024.

• LTM revenue reached $3.54 billion, with strong performance in both T&D and C&I segments and a sequential improvement over Q2 2024.

• Year-over-year declines in revenue, gross profit, and net income were driven by lower margins, project inefficiencies, and unfavorable project closeouts.

• Maintains a strong balance sheet and liquidity, supporting organic growth, acquisitions, and share repurchases.

• Strategic focus on electrification, clean energy, and data center infrastructure positions the company for continued growth.

Financial highlights

• Q3 2024 revenue was $888 million, down 5.5% year-over-year; T&D revenues fell 12% to $482 million, while C&I revenues rose 4% to $406 million.

• Gross margin for Q3 2024 was 8.7%, down from 9.8% in Q3 2023; nine-month gross margin was 8.1%, down from 10.1% year-over-year.

• Net income for Q3 2024 was $10.6 million ($0.65 per diluted share), down from $22 million ($1.28 per share) a year ago; EBITDA was $37.2 million, down from $47 million.

• Free cash flow for the last twelve months was $24 million, up from $29.8 million in the prior year; operating cash flow improved to $66 million for the nine months.

• Backlog totaled $2.60 billion as of September 30, 2024, up from $2.54 billion at June 30, 2024.

Outlook and guidance

• Management expects long-term growth opportunities to remain healthy, citing robust bidding activity, strong customer relationships, and support from infrastructure legislation.

• Excluding the impact of problem projects, both T&D and C&I operating income margins are expected to be in the middle of their target ranges in 2025.

• Q4 2024 T&D revenue expected to be flat versus Q3, with C&I revenue flat to slightly down depending on project timing.

• Significant construction on large, multi-year transmission projects awarded in late 2024 is not expected to begin until 2025.

• AI and digitization are accelerating data center and power demand, benefiting both segments.