MYR Group (MYRG) Q4 2024 earnings summary

Executive summary

• Achieved $3.36B in total 2024 revenue, with strong performance in both T&D and C&I segments and a year-end backlog of $2.6B, reflecting robust project demand and a healthy bidding environment.

• Q4 2024 revenues were $830M, with net income of $16M ($0.99 per diluted share); full-year net income was $30.3M ($1.83 per diluted share).

• Demonstrated consistent organic and acquisitive growth, supported by a strong balance sheet and diversified customer base across the U.S. and Canada.

• Strategic focus on clean energy, data centers, and infrastructure modernization positions the company for continued long-term growth.

• Board authorized a new $75M share repurchase program, expiring September 2025 or when funds are exhausted.

Financial highlights

• Q4 2024 revenues were $830M, down 17% year-over-year; full-year revenues were $3.36B, down 7.7% from 2023.

• Q4 gross margin improved to 10.4% from 9.7% year-over-year; full-year gross margin declined to 8.6% from 10.0%.

• Q4 net income was $16M ($0.99 per diluted share), down from $24M ($1.43 per share) year-over-year; full-year net income dropped to $30.3M from $91M.

• Q4 EBITDA was $45M (down from $53M); full-year EBITDA was $117.8M (down from $188.2M).

• Free cash flow for the year was $11.2M, up from negative $13.7M in 2023.

Outlook and guidance

• Expectation for stronger free cash flow in 2025, supported by improved profitability and reduced pending change orders and retainage.

• Operating income margins anticipated in the mid-range of targets: 7%-10.5% for T&D and 4%-6% for C&I.

• Management expects robust project opportunities in 2025, driven by electrification, data center expansion, and clean energy initiatives.

• Continued selectivity in clean energy project bidding, focusing on profitable opportunities.

• Maintains a strong balance sheet with $355M in liquidity and low leverage (debt to LTM EBITDA of 0.63x), enabling support for growth, acquisitions, and share repurchases.