MYR Group Gains 59% in a Year: Time to Buy, Sell or Hold the Stock?
MYR Group MYRG shares have gained 58.7% in the past year against the industry's 75.6% decline. In comparison, both the Zacks Utilities sector and the S&P 500 have advanced 6.1% and 16.8%, respectively.
MYR Group has also outperformed peers EMCOR Group EME, Dycom Industries DY and MasTec Inc. MTZ, which have gained 17%, 14.5% and 22.7%, respectively.
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While the impressive rally may attract investors, it is important to assess the drivers behind the stock’s performance and determine whether the momentum is sustainable or if potential risks could weigh on future returns.
MYRG Delivered Record Revenues & Backlog in Q2
MYRG’s revenues increased 20.1% year over year to a record $1.08 billion in the second quarter of 2026, reflecting continued strength in its core markets, ongoing investment in electrical infrastructure and sustained customer demand across its business.
The Commercial & Industrial (C&I) segment was the primary growth driver, with revenues at a record $557.7 million. Revenues were up 41.5% year over year, supported by higher revenues on fixed-price contracts. T&D revenues rose a modest 3.5% to $524 million, reflecting increased activity on time-and-equipment and unit-price contracts, partly offset by lower revenues on fixed-price contracts.
The company also exited the quarter with a record backlog of $3.16 billion. T&D backlog stood at $1.27 billion, while C&I backlog reached $1.89 billion. The strong backlog, coupled with a healthy pipeline of bidding opportunities, provides meaningful visibility into future revenue growth.
Strong Margins and Earnings Add to MYR Group’s Appeal
Even though costs climbed 18% year over year, MYRGMYRG-- reported a 38% increase in gross profit to $142.7 million in the second quarter of 2026. Gross margin increased 170 basis points to 13.2% on better-than-expected productivity, favorable job closeouts and an increase in scope on certain projects. These gains were partially offset by an increase in costs associated with project inefficiencies on certain projects.
Selling, general and administrative expenses increased 18% to $74.4 million due to an increase in employee incentive compensation costs and higher employee-related expenses to support future growth. Despite the higher operating expenses, operating profit surged 71% to $67.9 million.
EBITDA reached a record $85 million, increasing 53% year over year, while net income jumped 88% to a record $49.9 million. Earnings per share rose to $3.17 from $1.70 in the year-ago quarter.
Financial Strength Supports MYRG’s Expansion Strategy
MYR Group has maintained a strong balance sheet, while supporting organic and acquisitive growth, as well as opportunistically repurchasing shares. As of June 30, 2026, MYR GroupMYRG-- had $460.5 million of borrowing availability under its $490 million revolving credit facility and $137.9 million in cash and cash equivalents. The acquisition of Valley Electric and Comet Electric, which closed on July 1, boosts C&I capabilities and expands geographic presence.
MYR Group’s Earnings Estimates Continue to Move Higher
The Zacks Consensus Estimate for MYR Group’s 2026 earnings points to year-over-year growth of 61.2%, while the 2027 estimate implies growth of around 13.2%.
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Earnings estimates for MYRG have moved up for both 2026 and 2027 over the past 60 days.
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MYR Group Offers an Attractive Valuation
Despite the stock's strong appreciation, MYRG remains relatively inexpensive on a price-to-sales basis compared with the industry. The stock currently trades at a forward 12-month price-to-sales (P/S) multiple of 0.91X, below the industry average of 1.93X.
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The stock also trades at a lower multiple than EMCOR, which has a forward P/S of 1.52X, and Dycom, at 1.09X. MasTec's forward P/S multiple is approximately 0.92X.
MYRG Generates Strong Returns on Capital
MYR Group also compares favorably with its industry on profitability. The company's return on equity (ROE) stands at 24.17%, above the industry average of 21.05%.
A higher ROE indicates that MYRG is generating stronger returns from shareholders' capital than the average company in its industry, further supporting its fundamental profile.
MYR Group Positioned for Long-Term Growth
MYR Group is well-positioned to benefit from sustained investment in U.S. electrical and broader infrastructure. Continued spending in U.S. transmission and distribution systems should create opportunities for MYRG as utilities work to improve reliability, reduce congestion, connect new power-generation sources, accommodate future load growth and maintain aging infrastructure. Increasing electrification and the addition of renewable and other energy resources are also expected to require further upgrades to existing power networks.
The C&I segment should also benefit from demand across data centers, transportation, health care, manufacturing, clean energy and warehousing. The expansion of domestic manufacturing and efforts to reshore production could further increase demand for electrical infrastructure and related construction services.
The company's long-term opportunity is further supported by aging U.S. infrastructure and decades of underinvestment in areas such as public water and transportation systems.
Meanwhile, rising electricity consumption associated with electrification, Artificial Intelligence (AI) and other emerging technologies, as well as increased power requirements from manufacturing reshoring, is likely to require significant investment in electrical infrastructure. These trends could support demand across both of MYRG's reporting segments for years to come.
How Should Investors Approach MYRG Stock?
MYR Group continues to demonstrate strong execution, highlighted by record quarterly revenues and a $3.16 billion backlog, robust earnings growth, expanding margins and upward revisions to earnings estimates. The company is also well-positioned to benefit from secular growth trends, including electrification, data-center expansion, AI-driven power demand, manufacturing reshoring and infrastructure investment. A solid balance sheet, strategic acquisitions and strong ROE further enhance its growth profile.
With an attractive valuation, solid fundamentals, improving earnings prospects and multiple long-term growth catalysts, MYRG remains an appealing investment opportunity. MYR Group currently sports a Zacks Rank #1 (Strong Buy), supporting a positive outlook for the stock.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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MYR Group, Inc. (MYRG): Free Stock Analysis Report
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