Is MYR Group Perfectly Positioned to Benefit From the Push to Clean Energy?

Photo of author
Written By Elizabeth Monroe

MYR Group has demonstrated consistent contract revenue growth over the past three years, despite experiencing slight margin contractions.

As a leading specialty contractor in the US and Canada, operating in the commercial, industrial, and electric utility infrastructure sectors, MYRG is well-positioned to benefit from the ongoing shift in energy generation and the increasing demand for data centers.

Historical Financial Analysis

Credits: DepositPhotos

MYRG operates in two primary segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I). Over the past three years, MYRG’s contract revenue has shown consistent growth. In 2021, the company reported contract revenue of approximately $2.498 billion, which increased to $3.008 billion in 2022, representing a year-over-year growth rate of 20.4%.

This growth was driven by increases in transmission projects, distribution projects, and the C&I segment.

In 2023, MYRG’s contract revenue grew further to approximately $3.643 billion, a year-over-year growth of 21.1%. The strong double-digit growth continued to be fueled by increases in revenue from transmission projects, distribution projects, and the C&I segment.

However, the company’s margins have faced slight pressure over this period. The gross profit margin contracted from 11.40% in 2022 to 10% in 2023, primarily due to rising costs caused by supply chain issues, inflation, and inclement weather.

Consequently, the income from operations margin contracted from 3.80% in 2022 to 3.50% in 2023, and the net income margin decreased from 2.80% to 2.50%.

First Quarter 2024 Earnings Analysis

MYRG announced its first-quarter 2024 results on May 1, 2024. The company’s contract revenues grew by 0.5% year-over-year to $815.6 million, driven by an increase in the T&D segment, partially offset by declines in the C&I segment.

The T&D segment’s revenue increased by $45.1 million, while the C&I segment’s revenue fell by $41.1 million due to project delays.

Profitability margins remained relatively robust year-over-year, with a slight expansion in the gross profit margin from 10.40% to 10.60% due to favorable joint venture results. However, income from operations margin contracted slightly from 3.40% to 3% due to rising SG&A expenses, which increased from 7% to 7.6% of contract revenue.

Additionally, the net income margin contracted from 2.90% to 2.30%, and the EBITDA margin decreased from 5.10% to 4.90%.

Business Overview

MYRG operates through its T&D and C&I segments. The T&D segment serves the electric utility industry, offering a range of services for electric transmission, distribution networks, and substation facilities.

The C&I segment provides services such as the design, installation, maintenance, and repair of commercial and industrial wiring, as well as intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure.

Shift Towards Clean Energy

The shift in the energy generation mix in the US and Canada, with traditional baseload generation resources being replaced by clean energy, is expected to bolster MYRG’s outlook.

The utility-scale solar segment, after facing a downturn in 2022, rebounded in 2023 with a 77% increase in installed capacity. This trend is expected to continue, providing tailwinds for MYRG.

Additionally, the growing demand for data centers is significantly increasing electricity demand in the US. More than 250 hyperscale and co-location data centers are planned, further driving demand for MYRG’s services.

Both the T&D and C&I segments have the experience and expertise to support this growth, strengthening MYRG’s outlook.

Relative Valuation Model

Compared to its peers, MYRG’s forward revenue growth rate is 9.67%, slightly below the median of 11.76%. Its EBITDA margin TTM is 5%, lower than the peers’ median of 8.14%, and its net income margin TTM is 2.38%, also below the peers’ median of 3.57%.

Currently, MYRG’s forward non-GAAP P/E ratio is 27.16x, higher than the peers’ median of 23.28x. Given MYRG’s slight underperformance, a target P/E of ~22.12x is more appropriate.

Risk and Conclusion

Credits: DepositPhotos

MYRG’s reliance on fixed-price and unit-price contracts introduces risks related to forecasting project costs accurately. Unexpected increases in labor and material costs can impact profitability.

Additionally, the shift towards renewable energy and the growing demand for data centers are positive for MYRG’s outlook, but external factors such as supply chain disruptions and regulatory changes could pose challenges.

Overall, MYRG has demonstrated strong top-line growth, and while its profitability margins have contracted slightly, the company’s positive growth outlook and potential for upside make it an attractive investment.

Based on this analysis, MYRG is well-positioned to benefit from the ongoing shift toward clean energy and the growing demand for data centers.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.