MYR Group (MYRG) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached $3.36B, with strong performance in both T&D and C&I segments and a year-end backlog of $2.6B, reflecting robust project demand and a healthy bidding environment.

• Demonstrated consistent organic and acquisitive growth, supported by a strong balance sheet and diversified customer base across the U.S. and Canada.

• Strategic focus on clean energy, data centers, and infrastructure modernization positions the company for continued long-term growth.

• Board authorized a new $75M share repurchase program, expiring September 2025 or when funds are exhausted.

Financial highlights

• Q4 2024 revenue was $830M, down 17% year-over-year, mainly due to completion of certain clean energy projects and lower C&I fixed-price contract revenue.

• Full-year net income was $30.3M ($1.83 per diluted share), with Q4 net income at $16M ($0.99 per share), both down year-over-year.

• Q4 gross margin improved to 10.4% from 9.7% YoY; full-year gross margin declined to 8.6% from 10.0%.

• EBITDA for Q4 was $45M (down from $53M YoY); full-year EBITDA was $117.8M.

• Backlog at year-end was $2.6B, up 2.5% from prior year-end, supporting future revenue visibility.

Outlook and guidance

• Management expects stronger free cash flow in 2025, driven by increased profitability and reduced pending change orders and retainage.

• Operating income margins are anticipated to be in the mid-range of targets: 7%-10.5% for T&D and 4%-6% for C&I.

• Robust project opportunities expected in 2025, supported by electrification, system hardening, grid modernization, and decarbonization trends.

• Company will remain selective in pursuing clean energy projects, focusing on appropriate pricing.

• Maintains a strong balance sheet with $355M in liquidity and low leverage (debt to LTM EBITDA of 0.63x), enabling support for growth, acquisitions, and share repurchases.