MYR Group Q2 2025 slides: Strong performance amid data center, clean energy boom

Introduction & Market Context

MYR Group Inc. (NASDAQ:MYRG), a leading specialty electrical contractor, presented its Q2 2025 investor presentation on July 31, highlighting strong financial performance and strategic positioning in high-growth markets. The company continues to benefit from increased infrastructure spending, particularly in data centers driven by AI demand and clean energy initiatives.

Despite reporting solid Q2 results with revenue of $900 million and earnings per share of $1.70 (exceeding analyst expectations of $1.52), MYR Group’s stock experienced volatility, dropping 2.86% in regular trading before rebounding 7.3% in premarket activity. Currently, the stock trades near $206, approaching its 52-week high of $220.02.

As shown in the following overview of MYR Group’s market position and key business segments:

Quarterly Performance Highlights

MYR Group reported impressive Q2 2025 results, with quarterly revenues reaching $900 million and net income of $26.5 million, translating to $1.70 per diluted share. The company’s backlog stood at $2.64 billion as of June 30, 2025, indicating strong future revenue potential.

The financial snapshot below illustrates MYR Group’s performance metrics for Q2 2025 and the last twelve months:

For the last twelve months ending June 30, 2025, MYR Group achieved total revenue of $3.45 billion, net income of $76.4 million ($4.79 per diluted share), EBITDA of $188.4 million, and free cash flow of $108.6 million. This performance reflects the company’s consistent growth trajectory, as evidenced by its 10% compound annual growth rate (CAGR) since 2020.

The company’s revenue growth is illustrated in the following chart:

Segment Performance

MYR Group operates through two main business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I).

The T&D segment, which focuses on electrical transmission, distribution, substations, and clean energy projects, generated $1.90 billion in revenue for the last twelve months ended June 30, 2025, with a backlog of $927 million. This segment has demonstrated strong growth with a CAGR of 11.7% since 2020, benefiting from long-standing customer relationships and strategic acquisitions like Powerline Plus Companies in January 2022.

The T&D segment’s performance is detailed in the following chart:

The C&I segment, which encompasses commercial, industrial, transportation, data centers, and clean energy projects, delivered $1.55 billion in revenue for the last twelve months ended June 30, 2025, with a substantial backlog of $1.72 billion. This segment has achieved an 8.1% CAGR since 2020, driven by increasing investments in data centers, transportation, clean energy, and healthcare.

The C&I segment’s performance is illustrated below:

Growth Opportunities

MYR Group has strategically positioned itself to capitalize on two major growth drivers: the data center boom fueled by artificial intelligence and the ongoing clean energy transition.

The company highlighted that AI is "supercharging" data center growth, with more than 170 hyperscale and co-location data centers planned, representing over 45GW of capacity. MYR Group’s C&I division has decades of experience in data center construction, expansion, upgrades, and maintenance, positioning it well to capture this growing market.

The data center market opportunity is detailed in the following chart:

In the clean energy sector, MYR Group noted that nearly 50 GWdc of solar capacity was installed in the US in 2024, a 21% increase from 2023. The company is well-positioned as a clean energy transformation partner, providing services across various renewable energy sources including wind, solar, energy storage, and transmission infrastructure.

MYR Group’s role in the clean energy ecosystem is illustrated below:

Financial Position and Shareholder Value

MYR Group maintains a strong financial position with $383 million in availability under its $490 million credit facility. The company’s balance sheet strength provides flexibility for future investments and shareholder returns.

On July 30, 2025, MYR Group announced a share repurchase program of up to $75 million, having already repurchased $75 million worth of shares year-to-date. This reflects management’s confidence in the company’s future prospects and commitment to returning value to shareholders.

The company’s financial performance across key metrics is presented in the following chart:

MYR Group’s stock has delivered impressive returns, with a dividend-adjusted return of 459.5% from January 2, 2020, to June 30, 2025, representing a CAGR of 36.79%. While this performance trails industry leader Quanta Services (PWR) with an 832.0% return and 50.10% CAGR, it outperforms MTZ’s 217.8% return and 19.61% CAGR.

Forward-Looking Statements

Looking ahead, MYR Group expects continued growth driven by several long-term market trends. In the T&D segment, the company anticipates strong spending on system reliability and resiliency programs, addressing the aging electric grid, connecting new generation sources, and system hardening initiatives. Power consumption is projected to reach record highs in 2025 and 2026, with S&P Global forecasting investments to reach $222 billion in 2026, $228 billion in 2027, and $208 billion in 2028.

For the C&I segment, growth opportunities include ongoing investments in data centers, airport projects, transportation, healthcare, clean energy, storage and EV charging, e-commerce, water/wastewater facilities, and industrial facilities. The American Building Contractors’ Construction Confidence Index specifically highlighted an "ongoing boom in data center construction."

CEO Rick Swartz emphasized the company’s proactive and disciplined approach in the evolving energy landscape, while Brian Stern, SVP of T&D, highlighted the growing demand for electricity as creating exciting growth opportunities.

Despite these positive outlooks, investors should consider potential challenges including supply chain disruptions, market saturation in certain regions, macroeconomic pressures like inflation, regulatory changes, and intense competition in the energy services sector.

Full presentation:

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