MYR Group's 2025 Q1: Unpacking Contradictions in Cash Flow, Growth, and Solar Strategy

Free cash flow and share buyback authorization, mid-single-digit growth expectation, margin progression and expectations, solar project participation and impact, free cash flow and cash management are the key contradictions discussed in MYR Group's latest 2025Q1 earnings call.



Financial Performance and Revenue Trends:
- MYR Group reported revenue of $834 million in Q1 2025, marking a 2.2% increase compared to the same period last year.
- The increase was primarily driven by a 14.4% rise in Commercial and Industrial (C&I) revenues, offset by a 5.8% decrease in Transmission and Distribution (T&D) revenues.

T&D Revenue and Margin Improvement:
- T&D revenues were $462 million, down 5.8% from the previous year.
- Gross margin improved to 11.6% in Q1 2025 compared to 10.6% in the same period last year, primarily due to better-than-anticipated productivity and favorable job closeout.

Operating Cash Flow and Free Cash Flow:
- First quarter 2025 operating cash flow was $83 million, up from $8 million in the same period last year.
- First quarter 2025 free cash flow was $70 million, compared to -$18 million in the same period last year, reflecting improved operating cash flow and lower capital expenditures.

Backlog and Market Opportunities:
- Total backlog as of March 31, 2025, was $2.64 billion, a 9% increase from the previous year.
- Strong bidding activity and expanding long-term relationships contributed to a solid backlog, driven by investments in electrification and aging electrical infrastructure.