We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MYR Group Q3 Earnings Call Highlights 2027 Growth & Margin Outlook
Read MoreHide Full Article
Key Takeaways
MYRG projects 15%-18% revenue growth in 2027, driven by C&I expansion and rising T&D demand.
C&I margins rose to 8.7% from 6.4%, supported by improved productivity and favorable project execution.
MYRG's backlog surged 38.2% to $3.68 billion, with larger transmission projects expected from late 2027.
MYR Group Inc. (MYRG - Free Report) outlined expectations for continued revenue growth in 2027 during its third-quarter 2026 earnings call, supported by electrical infrastructure investment, commercial construction activity and contributions from recent acquisitions.
Management emphasized margin discipline, expanding project opportunities and a healthy bidding environment. The company reported third-quarter earnings of $3.82 per share, topping the Zacks Consensus Estimate of $3.09. Revenues of $1.26 billion also surpassed the $1.19 billion consensus.
President and CEO Richard Swartz projected consolidated revenue growth of 15% to 18% in 2027, reflecting expectations for sustained demand across both operating segments.
The Commercial and Industrial (C&I) segment is expected to deliver revenue growth of 18% to 22%, including full-year contributions from Valley Electric and Comet Electric. Transmission and Distribution (T&D) revenues are projected to increase 10% to 13%.
During the analyst discussion, CFO Kelly Huntington clarified that T&D growth should accelerate beginning in the second quarter of 2027, with greater contributions anticipated during the second half.
MYR Group Sees Strong C&I Margins Extending Into 2027
C&I operating margins reached 8.7%, compared with 6.4% a year earlier, supported by improved productivity and favorable project execution.
Responding to questions from Goldman Sachs and KeyBanc Capital Markets, Swartz indicated that C&I operating margins should remain toward the upper end of the company's historical 6% to 9% range throughout 2027.
Huntington explained that acquisition-related intangible amortization represented a smaller margin headwind than initially anticipated. Swartz also highlighted improved contract terms, although certain project closeouts contributed to recent profitability.
MYRG Expects Larger Transmission Projects From 2028
In the third quarter, T&D revenues increased 10% year over year to approximately $555 million, while operating margins improved to 9.3% from 8.2%.
Swartz told analysts that larger transmission projects could begin during the second half of 2027, with more substantial activity anticipated in 2028 and beyond. Nearer-term growth remains supported by utility capital spending and smaller projects.
Addressing KeyBanc's margin questions, Swartz clarified that T&D operating margins should remain near the midpoint of the company's 8% to 11% range. Huntington separately confirmed that the projected 10% to 13% growth represents revenues rather than margins.
MYR Group Highlights Acquisition Integration and Backlog Visibility
The Valley Electric and Comet Electric acquisitions are performing in line with management's expectations, according to Swartz. Their integration expands geographic coverage and creates opportunities to serve additional customers.
Responding to Cantor Fitzgerald, Swartz described the acquisition pipeline as active across both segments. Management remains selective, prioritizing established electrical contractors with diversified customer relationships.
Total backlog reached $3.68 billion in the third quarter, up 38.2% year over year. Swartz cautioned that backlog can fluctuate with project timing and indicated that additional large awards could enter the pipeline by early 2027.
MYRG Balances Cash Flow Pressures With Investment
Operating cash flow declined to approximately $46 million from $96 million a year earlier, reflecting project billing and payment timing.
Responding to Baird, Huntington acknowledged that customer payment terms have become a more prominent negotiation issue, creating working capital headwinds despite stronger earnings.
Management expects capital expenditures to represent approximately 3% of revenues in 2026 and the low-to-mid-3% range in 2027. The company also authorized a new $100 million share repurchase program, while retaining flexibility for acquisitions and organic investments.
MYR Group Maintains Focus on Execution and Expansion
Swartz emphasized disciplined project selection, operational efficiency and customer relationships as priorities entering 2027. Management remains focused on supporting infrastructure demand while maintaining project profitability.
The company's outlook combines continued C&I expansion with accelerating transmission opportunities. Execution, working capital management and the timing of larger project awards remain important operational considerations.
MYRG’s Zacks Rank & Style Scores Signal Potential
MYRG currently sports a Zacks Rank #1 (Strong Buy), indicating favorable near-term prospects based on earnings estimate revisions. Its Growth and Momentum Scores of B highlight attractive characteristics in those categories, while its Value Score of D indicates weaker relative valuation appeal. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock's VGM Score of B reflects a favorable combined assessment of value, growth and momentum characteristics. Together with its top Zacks Rank, this represents a positive screening combination, although future performance is not assured. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results.
View the Zacks #1 Rank List
Image: Bigstock
MYR Group Q3 Earnings Call Highlights 2027 Growth & Margin Outlook
Key Takeaways
MYR Group Inc. (MYRG - Free Report) outlined expectations for continued revenue growth in 2027 during its third-quarter 2026 earnings call, supported by electrical infrastructure investment, commercial construction activity and contributions from recent acquisitions.
Management emphasized margin discipline, expanding project opportunities and a healthy bidding environment. The company reported third-quarter earnings of $3.82 per share, topping the Zacks Consensus Estimate of $3.09. Revenues of $1.26 billion also surpassed the $1.19 billion consensus.
MYR Group, Inc. Price, Consensus and EPS Surprise
MYR Group, Inc. price-consensus-eps-surprise-chart | MYR Group, Inc. Quote
MYRG Targets Double-Digit Revenue Growth in 2027
President and CEO Richard Swartz projected consolidated revenue growth of 15% to 18% in 2027, reflecting expectations for sustained demand across both operating segments.
The Commercial and Industrial (C&I) segment is expected to deliver revenue growth of 18% to 22%, including full-year contributions from Valley Electric and Comet Electric. Transmission and Distribution (T&D) revenues are projected to increase 10% to 13%.
During the analyst discussion, CFO Kelly Huntington clarified that T&D growth should accelerate beginning in the second quarter of 2027, with greater contributions anticipated during the second half.
MYR Group Sees Strong C&I Margins Extending Into 2027
C&I operating margins reached 8.7%, compared with 6.4% a year earlier, supported by improved productivity and favorable project execution.
Responding to questions from Goldman Sachs and KeyBanc Capital Markets, Swartz indicated that C&I operating margins should remain toward the upper end of the company's historical 6% to 9% range throughout 2027.
Huntington explained that acquisition-related intangible amortization represented a smaller margin headwind than initially anticipated. Swartz also highlighted improved contract terms, although certain project closeouts contributed to recent profitability.
MYRG Expects Larger Transmission Projects From 2028
In the third quarter, T&D revenues increased 10% year over year to approximately $555 million, while operating margins improved to 9.3% from 8.2%.
Swartz told analysts that larger transmission projects could begin during the second half of 2027, with more substantial activity anticipated in 2028 and beyond. Nearer-term growth remains supported by utility capital spending and smaller projects.
Addressing KeyBanc's margin questions, Swartz clarified that T&D operating margins should remain near the midpoint of the company's 8% to 11% range. Huntington separately confirmed that the projected 10% to 13% growth represents revenues rather than margins.
MYR Group Highlights Acquisition Integration and Backlog Visibility
The Valley Electric and Comet Electric acquisitions are performing in line with management's expectations, according to Swartz. Their integration expands geographic coverage and creates opportunities to serve additional customers.
Responding to Cantor Fitzgerald, Swartz described the acquisition pipeline as active across both segments. Management remains selective, prioritizing established electrical contractors with diversified customer relationships.
Total backlog reached $3.68 billion in the third quarter, up 38.2% year over year. Swartz cautioned that backlog can fluctuate with project timing and indicated that additional large awards could enter the pipeline by early 2027.
MYRG Balances Cash Flow Pressures With Investment
Operating cash flow declined to approximately $46 million from $96 million a year earlier, reflecting project billing and payment timing.
Responding to Baird, Huntington acknowledged that customer payment terms have become a more prominent negotiation issue, creating working capital headwinds despite stronger earnings.
Management expects capital expenditures to represent approximately 3% of revenues in 2026 and the low-to-mid-3% range in 2027. The company also authorized a new $100 million share repurchase program, while retaining flexibility for acquisitions and organic investments.
MYR Group Maintains Focus on Execution and Expansion
Swartz emphasized disciplined project selection, operational efficiency and customer relationships as priorities entering 2027. Management remains focused on supporting infrastructure demand while maintaining project profitability.
The company's outlook combines continued C&I expansion with accelerating transmission opportunities. Execution, working capital management and the timing of larger project awards remain important operational considerations.
MYRG’s Zacks Rank & Style Scores Signal Potential
MYRG currently sports a Zacks Rank #1 (Strong Buy), indicating favorable near-term prospects based on earnings estimate revisions. Its Growth and Momentum Scores of B highlight attractive characteristics in those categories, while its Value Score of D indicates weaker relative valuation appeal. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock's VGM Score of B reflects a favorable combined assessment of value, growth and momentum characteristics. Together with its top Zacks Rank, this represents a positive screening combination, although future performance is not assured. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results.