Earnings

MYR Group Posts Record Third-Quarter Profit of $60.0 Million

The Tip Desk · November 2, 2026 · 3 min read

Contract revenues hit a record $1.26 billion in the third quarter of 2026 as Commercial & Industrial work, including Valley Electric, lifted the mix; gross margin rose to 13.6%.

MYR Group Inc. (MYRG), a holding company of specialty electrical contractors serving electric utility infrastructure and commercial and industrial construction markets in the United States and Canada, reported record third-quarter 2026 contract revenues of $1.26 billion, up $308.6 million from the third quarter of 2025.

The year-over-year revenue increase accelerated from the prior two quarters. Second-quarter 2026 revenue was $1.08 billion, up $181.4 million from the year-earlier period, and first-quarter 2026 revenue was $1.00 billion, up $166.8 million.

Commercial & Industrial was the larger of the two reportable segments in the third quarter. C&I posted record quarterly revenues of $704.5 million, up $257.5 million from the third quarter of 2025, including incremental revenue from the July 1 acquisitions of Valley Electric and Comet Electric. C&I’s share of contract revenues rose to 56.0% from 47.0% a year earlier, while Transmission & Distribution’s share fell to 44.0% from 53.0%.

T&D quarterly revenues were $554.5 million, up $51.1 million from the third quarter of 2025, on increases in T&E, fixed-price and unit-price contracts. President and CEO Rick Swartz said the results were supported by increased activity across both segments, including record quarterly C&I revenues.

Consolidated gross profit increased to $171.2 million from $111.9 million a year earlier. Gross margin expanded to 13.6% from 11.8% in the third quarter of 2025, after 13.2% in the second quarter and 13.4% in the first quarter. The company said the increase was primarily due to significant changes in estimated gross profit on certain projects related to better-than-anticipated productivity and favorable job close-outs, partially offset by higher costs from inefficiencies on certain projects. Changes in estimates produced a net gross-margin increase of 0.4 percentage points in the third quarter of 2026, versus a net 0.6 percentage-point decrease a year earlier.

Net income reached a record $60.0 million, or $3.82 a share, compared with $32.1 million, or $2.05 a share, a year earlier. EBITDA, a non-GAAP measure, was a record $110.0 million, compared with $62.7 million in the third quarter of 2025.

Selling, general and administrative expenses increased to $81.5 million from $65.9 million a year earlier, which the company attributed primarily to Valley-related costs, higher employee incentive compensation and employee-related expenses. Amortization of intangible assets rose to $6.1 million from $1.2 million on Valley-related intangibles. Interest expense increased to $3.6 million from $1.4 million on incremental borrowings tied to the Valley acquisition.

Backlog rose to a record $3.68 billion as of September 30, 2026, up $1.02 billion, or 38.2%, from $2.66 billion a year earlier, after $3.16 billion at June 30 and $2.84 billion at March 31. C&I backlog was $2.39 billion and T&D backlog $1.29 billion.

Cash and cash equivalents were $26.0 million at September 30, 2026, down from $150.2 million at December 31, 2025. Total funded debt rose to $215.8 million from $59.0 million, and the funded-debt-to-equity ratio rose to 0.26 from 0.12. Free cash flow for the three months ended September 30, 2026 was $9.2 million, compared with $65.4 million a year earlier. Borrowing availability under a new $690.0 million revolving credit facility was $650.5 million.

The board authorized repurchases of up to $100.0 million under a new share-repurchase program effective November 4, 2026, expiring November 3, 2027, or when the authorized funds are exhausted, whichever is earlier. The company intends to fund repurchases with cash on hand and revolving-credit borrowings.

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