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MYRG's T&D Segment 1H26 Revenues Up 10%: More Upside Ahead?
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Key Takeaways
MYR Group's T&D revenues rose 10% to $1.06B, while operating income jumped 32.6%.
T&D demand is supported by grid upgrades, electrification, data centers and manufacturing reshoring.
MYRG's T&D backlog reached $1.27B, with trailing-12-month revenues at $2.1B through June 2026.
MYR Group Inc.’s (MYRG - Free Report) Transmission & Distribution (T&D) segment continued to benefit from rising investment in electric-grid infrastructure during the first half of 2026. T&D revenues increased 10% year over year to $1.06 billion, supported by higher activity under unit-price and time-and-equipment contracts, partly offset by lower revenues from fixed-price contracts.
The segment accounted for 51.1% of MYRG’s total first-half revenues compared with 55.8% a year earlier. T&D operating income rose 32.6% year over year to $101.7 million in the first half of 2026, with operating margin expanding to 9.6% from 7.9%.
The improvement extends beyond these six months. The T&D segment generated $2.1 billion in revenues on a trailing-12-month basis through June 30, 2026, reflecting an 11.2% compound annual growth rate since 2021. The segment’s backlog stood at $1.27 billion at the end of June.
MYR Group is one of the largest U.S. contractors servicing the T&D sector of the electric utility industry. It provides T&D services throughout the United States and in Ontario, Canada. The T&D segment has strong, long-standing relationships with a diverse customer base where approximately 65% of business is performed under Master Service Agreements (MSAs).
Several structural trends are supporting the T&D segment. Spending on transmission and distribution infrastructure is expected to remain strong as utilities address aging grid infrastructure, system reliability and resiliency, new generation interconnections, electrification and plant retirements. Rising electricity demand from data centers and reshoring of manufacturing is another important catalyst. The company also highlighted large projects such as Maine’s Power Reliability Program and New York’s Central East Energy Connect transmission project.
Industry peers are seeing similar demand. Quanta Services (PWR - Free Report) reported second-quarter 2026 revenues for the Electric segment at $7.84 billion, up 43.6% year over year. The improvement was attributed to higher demand and contributions from acquired businesses. For the first half of 2026, electric revenues increased to $14.3 billion from $10.40 billion in the year-ago comparable period. Electric operating income climbed 51.9% to $1.46 billion in the first half of 2026. The segment’s backlog reached $43.8 billion as of June 30, 2026.
MasTec Inc.’s (MTZ - Free Report) Power Delivery segment generated $1.25 billion in revenues in the second quarter of 2026, up 19.2% year over year. First-half revenues increased 17.8% to $2.29 billion. Segment adjusted EBITDA for the first half of 2026 was $668 million compared with $439 million in the year-ago comparable period.
MYRG’s Price Performance, Valuation & Estimates
MYR Group shares have gained 38.5% in the past year, outperforming the industry's 79.4% fall.
Image Source: Zacks Investment Research
MYRG is currently trading at a forward 12-month P/E of 21.15X, a premium compared with the industry’s 17.43X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 65.1%, while the 2027 estimate implies growth of around 12.9%.
Image Source: Zacks Investment Research
Earnings estimates for both years have moved up over the past 60 days.
Image Source: Zacks Investment Research
MYR Group stock currently sports a Zacks Rank #1 (Strong Buy).
View the Zacks #1 Rank List
Image: Bigstock
MYRG's T&D Segment 1H26 Revenues Up 10%: More Upside Ahead?
Key Takeaways
MYR Group Inc.’s (MYRG - Free Report) Transmission & Distribution (T&D) segment continued to benefit from rising investment in electric-grid infrastructure during the first half of 2026. T&D revenues increased 10% year over year to $1.06 billion, supported by higher activity under unit-price and time-and-equipment contracts, partly offset by lower revenues from fixed-price contracts.
The segment accounted for 51.1% of MYRG’s total first-half revenues compared with 55.8% a year earlier. T&D operating income rose 32.6% year over year to $101.7 million in the first half of 2026, with operating margin expanding to 9.6% from 7.9%.
The improvement extends beyond these six months. The T&D segment generated $2.1 billion in revenues on a trailing-12-month basis through June 30, 2026, reflecting an 11.2% compound annual growth rate since 2021. The segment’s backlog stood at $1.27 billion at the end of June.
MYR Group is one of the largest U.S. contractors servicing the T&D sector of the electric utility industry. It provides T&D services throughout the United States and in Ontario, Canada. The T&D segment has strong, long-standing relationships with a diverse customer base where approximately 65% of business is performed under Master Service Agreements (MSAs).
Several structural trends are supporting the T&D segment. Spending on transmission and distribution infrastructure is expected to remain strong as utilities address aging grid infrastructure, system reliability and resiliency, new generation interconnections, electrification and plant retirements. Rising electricity demand from data centers and reshoring of manufacturing is another important catalyst. The company also highlighted large projects such as Maine’s Power Reliability Program and New York’s Central East Energy Connect transmission project.
Industry peers are seeing similar demand. Quanta Services (PWR - Free Report) reported second-quarter 2026 revenues for the Electric segment at $7.84 billion, up 43.6% year over year. The improvement was attributed to higher demand and contributions from acquired businesses. For the first half of 2026, electric revenues increased to $14.3 billion from $10.40 billion in the year-ago comparable period. Electric operating income climbed 51.9% to $1.46 billion in the first half of 2026. The segment’s backlog reached $43.8 billion as of June 30, 2026.
MasTec Inc.’s (MTZ - Free Report) Power Delivery segment generated $1.25 billion in revenues in the second quarter of 2026, up 19.2% year over year. First-half revenues increased 17.8% to $2.29 billion. Segment adjusted EBITDA for the first half of 2026 was $668 million compared with $439 million in the year-ago comparable period.
MYRG’s Price Performance, Valuation & Estimates
MYR Group shares have gained 38.5% in the past year, outperforming the industry's 79.4% fall.
Image Source: Zacks Investment Research
MYRG is currently trading at a forward 12-month P/E of 21.15X, a premium compared with the industry’s 17.43X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 65.1%, while the 2027 estimate implies growth of around 12.9%.
Image Source: Zacks Investment Research
Earnings estimates for both years have moved up over the past 60 days.
Image Source: Zacks Investment Research
MYR Group stock currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.