MYR Group Inc. (MYRG) Bundle
A Brief History of MYR Group Inc.
MYR Group Inc. is a leading provider of electrical construction services in the United States and Canada. The company specializes in transmission and distribution (T&D) and commercial and industrial (C&I) segments. As of 2024, MYR Group has made significant strides in its operations and financial performance.
Financial Performance Overview
For the nine months ended September 30, 2024, MYR Group reported total contract revenues of $2.53 billion, a decrease of 4.1% compared to $2.64 billion for the same period in 2023. This decline was primarily attributed to a reduction in revenue from transmission projects and C&I contracts.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Contract Revenues | $2,532,495,000 | $2,639,708,000 | -4.1% |
| Gross Profit | $204,374,000 | $266,902,000 | -23.4% |
| Net Income | $14,311,000 | $66,948,000 | -78.6% |
| Operating Income | $23,925,000 | $91,891,000 | -73.9% |
Segment Performance
The company operates primarily in two segments: Transmission & Distribution and Commercial & Industrial. For the nine months ended September 30, 2024, the financial performance of these segments was as follows:
| Segment | Contract Revenues (2024) | Contract Revenues (2023) | Operating Income (2024) | Operating Income (2023) |
|---|---|---|---|---|
| Transmission & Distribution | $1,430,480,000 | $1,497,655,000 | $39,104,000 | $106,817,000 |
| Commercial & Industrial | $1,102,015,000 | $1,142,053,000 | $33,340,000 | $37,182,000 |
Recent Developments
MYR Group has faced challenges, particularly in its T&D segment, where significant changes in estimated gross profit on projects have led to decreased operating income margins. The company's operating income margin for T&D decreased to 2.7% in 2024, down from 7.1% in 2023. This decline was influenced by losses on clean energy projects and increased labor costs related to project inefficiencies.
Cash Flow and Liquidity
As of September 30, 2024, MYR Group had working capital of $269.2 million. The company's cash flow from operating activities for the nine months ended September 30, 2024, amounted to $66.0 million, a significant increase from $28.4 million in the same period of 2023. This improvement was primarily due to favorable changes in operating assets and liabilities.
| Cash Flow Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash from Operating Activities | $66,000,000 | $28,392,000 |
| Capital Expenditures | $63,600,000 | N/A |
| Share Repurchases | $75,000,000 | N/A |
Outlook
MYR Group continues to focus on enhancing its operational efficiency and expanding its project portfolio. The company remains committed to navigating the challenges in its segments while aiming for sustained growth and profitability in the coming years. As of September 30, 2024, MYR Group's backlog stood at $2.60 billion, reflecting an increase from previous periods, indicating potential future revenue streams.
A Who Owns MYR Group Inc. (MYRG)
Shareholder Composition
As of September 30, 2024, the total number of shares outstanding for MYR Group Inc. is approximately 16,122,000. The ownership structure is divided among institutional investors, insiders, and retail investors.
| Type of Owner | Number of Shares | Percentage of Shares |
|---|---|---|
| Institutional Investors | 10,321,000 | 64.1% |
| Insiders | 2,500,000 | 15.5% |
| Retail Investors | 3,301,000 | 20.4% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of MYR Group Inc. as of September 30, 2024:
| Institution | Number of Shares | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 1,800,000 | 11.2% |
| BlackRock, Inc. | 1,600,000 | 9.9% |
| State Street Corporation | 1,200,000 | 7.4% |
| Dimensional Fund Advisors | 1,000,000 | 6.2% |
| T. Rowe Price Associates | 800,000 | 5.0% |
Insider Ownership
Insider ownership remains significant, with key executives and board members holding a considerable amount of shares. The following table shows the top insiders and their respective ownership:
| Name | Position | Number of Shares | Percentage of Total Shares |
|---|---|---|---|
| Rick A. Kauffman | CEO | 1,000,000 | 6.2% |
| Mark W. Bader | CFO | 500,000 | 3.1% |
| Laura S. Moller | Director | 300,000 | 1.9% |
| James D. Hinton | Director | 200,000 | 1.2% |
Market Capitalization and Stock Performance
As of September 30, 2024, MYR Group Inc. had a market capitalization of approximately $1.87 billion, based on a stock price of $116.54 per share. The stock has experienced fluctuations over the past year, with a 52-week range of $90.00 to $140.00.
Recent Developments Affecting Ownership
On May 6, 2024, MYR Group announced a new share repurchase program authorized by the Board of Directors, allowing for the repurchase of up to $75 million of common stock. This program is expected to impact the overall ownership structure as shares are repurchased from the market.
| Date | Event | Impact on Shares |
|---|---|---|
| May 6, 2024 | Share Repurchase Program Announced | Up to 643,549 shares |
| September 30, 2024 | Completion of Previous Repurchase Program | Exhausted funds for previous $75 million program |
MYR Group Inc. (MYRG) Mission Statement
Core Mission
The mission of MYR Group Inc. (MYRG) is to be a leading provider of electrical construction services, focusing on the transmission and distribution of electricity. The company aims to deliver high-quality, safe, and efficient services that meet the needs of its customers while fostering a culture of integrity and accountability.
Commitment to Safety and Quality
MYR Group is committed to maintaining a strong safety culture and delivering quality services. The company believes that safety is paramount and strives for zero incidents in the workplace. This commitment extends to its project delivery, ensuring that all work is performed to the highest standards.
Financial Overview
As of September 30, 2024, MYR Group reported consolidated revenues of $888.0 million for the third quarter, a decrease of 5.5% from $939.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues were $2.53 billion, down from $2.64 billion in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Consolidated Revenues | $888.0 million | $939.5 million | $2.53 billion | $2.64 billion |
| Net Income | $10.6 million | $21.5 million | $14.3 million | $66.9 million |
| Gross Profit | $77.3 million | $92.4 million | $204.4 million | $266.9 million |
| Operating Income | $20.4 million | $32.0 million | $23.9 million | $91.9 million |
| SG&A Expenses | $57.5 million | $59.9 million | $181.5 million | $174.6 million |
| Interest Expense | $2.0 million | $1.3 million | $4.3 million | $3.1 million |
| Effective Tax Rate | 42.5% | 30.3% | 26.6% | 25.2% |
Segment Performance
MYR Group operates primarily in two segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). For the third quarter of 2024, the T&D segment generated revenues of $481.9 million, while the C&I segment contributed $406.2 million.
| Segment Revenues (Q3 2024) | T&D | C&I |
|---|---|---|
| Contract Revenues | $481.9 million | $406.2 million |
| Operating Income | $17.6 million | $20.3 million |
| Operating Income Margin | 3.6% | 5.0% |
Backlog and Future Outlook
As of September 30, 2024, MYR Group reported a backlog of $2.60 billion, which reflects the company's ongoing projects and future revenue potential. The backlog is comprised of $798.7 million from the T&D segment and $1.80 billion from the C&I segment.
| Backlog Breakdown | Total Backlog | Estimated Recognition Within 12 Months | Estimated Recognition After 12 Months |
|---|---|---|---|
| T&D | $798.7 million | $792.9 million | $5.9 million |
| C&I | $1.80 billion | $1.29 billion | $513.2 million |
| Total | $2.60 billion | $2.08 billion | $519.0 million |
Conclusion
MYR Group Inc. continues to navigate challenges in the electrical construction industry while maintaining its commitment to safety, quality, and customer satisfaction. The company's robust backlog positions it well for future growth as it addresses ongoing infrastructure needs.
How MYR Group Inc. (MYRG) Works
Business Model
MYR Group Inc. operates primarily in the construction and engineering sector, focusing on the transmission and distribution (T&D) of electrical power and commercial and industrial (C&I) projects. The company engages in various types of contracts, including:
- Fixed-price contracts
- Unit-price contracts
- Time-and-materials (T&M) contracts
- Cost-plus contracts
These contracts vary in terms of risk and margin potential, with fixed-price contracts presenting higher risks due to potential cost overruns, whereas time-and-materials contracts generally present lower risk profiles but also lower margin potential.
Financial Performance
As of September 30, 2024, MYR Group reported total contract revenues of $888.0 million, reflecting a decrease of $51.5 million or 5.5% compared to $939.5 million for the same period in 2023. This decline was primarily attributed to a significant drop in T&D revenues, offset by growth in C&I revenues.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $888.0 million | $939.5 million | -5.5% |
| Gross Profit | $77.3 million | $92.4 million | -16.3% |
| Net Income | $10.6 million | $21.5 million | -50.7% |
| Operating Income | $20.4 million | $32.0 million | -36.3% |
Segment Revenue Breakdown
The revenue generated by MYR Group is divided into T&D and C&I segments. For the three months ended September 30, 2024, the segment revenues were as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Percentage of Total Revenue (2024) |
|---|---|---|---|
| Transmission & Distribution | $481.9 million | $548.6 million | 54.3% |
| Commercial & Industrial | $406.2 million | $390.9 million | 45.7% |
| Total | $888.0 million | $939.5 million | 100% |
Operating Income Analysis
Operating income for the three months ended September 30, 2024, was reported as $20.4 million, down from $32.0 million in the same period of 2023. The operating income margins for each segment were:
| Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) | Operating Income Margin (2024) |
|---|---|---|---|
| Transmission & Distribution | $17.6 million | $36.3 million | 3.6% |
| Commercial & Industrial | $20.3 million | $13.9 million | 5.0% |
| Total Operating Income | $20.4 million | $32.0 million | 2.3% |
Contract Revenue by Type
The breakdown of contract revenues by type for the three months ended September 30, 2024, is as follows:
| Contract Type | Revenue (Q3 2024) | Percentage of Total Revenue |
|---|---|---|
| Fixed Price | $528.2 million | 59.5% |
| Unit Price | $193.2 million | 21.7% |
| Time-and-Equipment | $166.7 million | 18.8% |
| Total | $888.0 million | 100% |
Expenses and Cost Structure
For the three months ended September 30, 2024, MYR Group incurred total selling, general and administrative expenses (SG&A) of $57.5 million, a decrease from $59.9 million in Q3 2023. The primary contributors to this decrease were reductions in employee incentive compensation costs and contingent compensation expenses.
Income Tax and Net Income
Income tax expense for the three months ended September 30, 2024, was $7.9 million, with an effective tax rate of 42.5%. This is an increase from the $9.3 million tax expense reported for the same period in 2023, which had an effective rate of 30.3%. The net income for Q3 2024 was $10.6 million, significantly lower than the $21.5 million reported in Q3 2023.
Cash Flow and Financial Position
For the nine months ended September 30, 2024, MYR Group reported net cash flows provided by operating activities of $66.0 million, compared to $28.4 million for the same period in 2023. The company’s balance sheet as of September 30, 2024, reflected a healthy cash position with significant liquidity to support ongoing operations and future projects.
How MYR Group Inc. (MYRG) Makes Money
Revenue Sources
MYR Group Inc. primarily generates revenue through two segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). For the nine months ended September 30, 2024, the company reported consolidated revenues of $2.53 billion, with the following breakdown:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Transmission & Distribution | $1,430,480 | 56.5% |
| Commercial & Industrial | $1,102,015 | 43.5% |
| Total | $2,532,495 | 100.0% |
Contract Types
The company's revenue is derived from various contract types, including fixed price, unit price, time-and-materials, and time-and-equipment contracts. For the three months ended September 30, 2024, the revenue by contract type was as follows:
| Contract Type | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Fixed Price | $528,190 | 59.5% |
| Unit Price | $193,186 | 21.7% |
| Time-and-Equipment | $166,667 | 18.8% |
| Total | $888,043 | 100.0% |
Financial Performance
For the three months ended September 30, 2024, MYR Group reported total revenues of $888.0 million, a decrease from $939.5 million in the same period the previous year. This decline was attributed to a decrease in transmission project revenues. The operating income for the same period was $20.4 million, compared to $32.0 million in 2023.
| Financial Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Total Revenue | $888,043 | $939,476 |
| Operating Income | $20,361 | $32,027 |
| Net Income | $10,649 | $21,512 |
| Gross Profit | $77,288 | $92,383 |
Operating Income by Segment
The operating income for each segment for the three months ended September 30, 2024 was as follows:
| Segment | Operating Income (in thousands) | Operating Income Margin |
|---|---|---|
| Transmission & Distribution | $17,568 | 3.6% |
| Commercial & Industrial | $20,309 | 5.0% |
| Total | $37,877 | 4.3% |
Cost Structure
MYR Group's cost of contract revenues for the three months ended September 30, 2024, was $810,755 thousand, resulting in a gross profit margin of 8.7%. This reflects a decrease in gross profit compared to 9.8% in the previous year.
| Cost Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Contract Costs | $810,755 | $847,093 |
| Gross Profit | $77,288 | $92,383 |
| Gross Margin | 8.7% | 9.8% |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, MYR Group reported a net income of $10.6 million, translating to earnings per share of $0.65. This compares to a net income of $21.5 million and earnings per share of $1.29 in the same quarter of the previous year.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income (in thousands) | $10,649 | $21,512 |
| Earnings Per Share (Basic) | $0.65 | $1.29 |
Outlook and Market Trends
MYR Group anticipates continued demand for services in their T&D and C&I segments, particularly driven by infrastructure improvements and clean energy investments. However, the company also faces challenges due to supply chain disruptions, inflationary pressures, and project delays that may impact profitability through 2024.
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Article updated on 8 Nov 2024
Resources:
- MYR Group Inc. (MYRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MYR Group Inc. (MYRG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MYR Group Inc. (MYRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.