MYR Group Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter 2026 revenues reached a record $1.26 billion, an increase of $308.6 million compared to the third quarter of 2025.
• First nine months 2026 revenues totaled $3.34 billion, an increase of $656.8 million compared to the same period in 2025.
• Third-quarter 2026 net income was $60.0 million ($3.82 per diluted share), compared to $32.1 million ($2.05 per diluted share) in the third quarter of 2025.
• First nine months 2026 net income was $156.7 million ($9.97 per diluted share), compared to $81.9 million ($5.20 per diluted share) in the first nine months of 2025.
• Third-quarter 2026 EBITDA was $110.0 million, compared to $62.7 million in the third quarter of 2025.
• Consolidated gross profit for the third quarter was $171.2 million, up from $111.9 million in the prior year period; gross margin increased to 13.6% from 11.8%.
• Consolidated gross profit for the first nine months was $448.4 million, up from $312.5 million in the prior year period; gross margin increased to 13.4% from 11.6%.
• SG&A expenses for the third quarter were $81.5 million, up from $65.9 million in the prior year period.
• SG&A expenses for the first nine months were $225.3 million, up from $191.8 million in the prior year period.
• Interest expense for the third quarter was $3.6 million, up from $1.4 million in the prior year period.
• Interest expense for the first nine months was $4.9 million, up from $4.8 million in the prior year period.
• Effective tax rate for the third quarter was 27.1%, compared to 28.3% in the prior year period.
• Effective tax rate for the first nine months was 26.6%, compared to 28.7% in the prior year period.
• Net cash flows provided by operating activities for the first nine months were $134.2 million, compared to $211.7 million in the prior year period.
• Free cash flow for the first nine months was $137.1 million, compared to $156.1 million in the prior year period.
• Total funded debt as of September 30, 2026, was $215.8 million, compared to $72.0 million as of September 30, 2025.
• Return on Equity for the last twelve months ended September 30, 2026, was 31.3%, compared to 16.6% in the prior year period.
• Return on Invested Capital for the last twelve months ended September 30, 2026, was 25.0%, compared to 16.4% in the prior year period.

Guidance and Future Outlook:

• Management expressed confidence in momentum across the business and strength of execution, citing healthy demand across core markets and continued investment in critical electrical infrastructure.
• The company is focused on integrating Valley Electric and Comet Electric to expand capabilities and geographic reach.
• Management stated a continued focus on disciplined execution, strengthening customer relationships, and positioning to capitalize on significant infrastructure opportunities ahead.

Business Segments and Product Lines:

• The Commercial and Industrial (C&I) segment reported record quarterly revenues of $704.5 million in the third quarter, an increase of $257.5 million from the prior year, primarily driven by fixed-price contracts and incremental revenue from the Valley acquisition.
• The Transmission and Distribution (T&D) segment reported quarterly revenues of $554.5 million in the third quarter, an increase of $51.1 million from the prior year, driven by increases in T&E, fixed price, and unit price contracts.
• C&I segment revenues for the first nine months were $1.72 billion, an increase of $508.7 million from the prior year period.
• T&D segment revenues for the first nine months were $1.62 billion, an increase of $148.0 million from the prior year period.
• C&I backlog as of September 30, 2026, was $2.39 billion.
• T&D backlog as of September 30, 2026, was $1.29 billion.

Market and Competitive Landscape:

• The company serves the electric utility infrastructure, commercial, and industrial construction markets in the United States and Canada.
• T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors.
• C&I customers include general contractors, commercial and industrial facility owners, government agencies, and developers.
• Services provided include design, engineering, procurement, construction, upgrade, maintenance, and repair for electric transmission, distribution networks, substation facilities, clean energy projects, and electric vehicle charging infrastructure.
• C&I services cover data centers, airports, hospitals, hotels, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, stadiums, and electric vehicle charging infrastructure.

Risks and Challenges:

• Gross margin increases were partially offset by costs associated with inefficiencies on certain projects.
• Changes in estimates of gross profit on certain projects resulted in a net gross margin increase of 0.4% for the third quarter, compared to a net decrease of 0.6% in the prior year period.
• Forward-looking statements are subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties.
• Actual results may differ materially from projected results due to uncertainties affecting the business.

Management Commentary and Tone:

• Rick Swartz, President and CEO, stated that strong third-quarter results demonstrate momentum and execution strength.
• Management highlighted record quarterly revenues, net income, and EBITDA supported by increased activity in both T&D and C&I segments.
• The tone reflects confidence in the integration of Valley Electric and Comet Electric and the ability to capitalize on infrastructure opportunities.

Other Key Points:

• The Board of Directors approved a new share repurchase program authorizing the repurchase of up to $100.0 million of outstanding common stock, effective November 4, 2026, and expiring November 3, 2027.
• The company acquired Valley Electric and Comet Electric ("Valley"), which contributed incremental revenues and increased amortization of intangible assets.
• Cash paid for the acquired business during the first nine months was $324.8 million.
• As of September 30, 2026, the company had $650.5 million of borrowing availability under a new $690.0 million revolving credit facility.
• Total backlog as of September 30, 2026, was $3.68 billion, an increase of $1.02 billion (38.2%) from $2.66 billion as of September 30, 2025.
• The company intends to fund the share repurchase program with cash on hand and borrowings under its revolving credit facility.
• A conference call to discuss results was scheduled for October 29, 2026, at 8:00 a.m. Mountain time.