MYR Group's Q2 2025 Earnings Call: Key Contradictions in C&I Backlog, Solar Market Insights, and T&D Revenue Growth

C&I Backlog and Market Conditions, Solar Market and Revenue Expectations, Solar Market Activity and Strategy, Backlog and Project Timing, T&D Revenue Growth Expectations are the key contradictions discussed in MYR Group's latest 2025Q2 earnings call.



Revenue and Segment Growth:
- MYR Group reported second quarter 2025 revenues of $900 million, an 8.6% increase compared to the same period last year.
- T&D revenues were $506 million, up 10%, and C&I revenues were $394 million, up 6%, driven by increased electrification investments and grid modernization.

Gross Margin and Operating Income:
- MYR Group's gross margin was 11.5% for the second quarter of 2025, compared to 4.9% for the same period last year.
- This increase was primarily due to better-than-anticipated productivity and favorable job closeouts, offset by higher labor costs and project inefficiencies.

Backlog and Bidding Activity:
- Total backlog as of June 30, 2025, was $2.64 billion, 4% higher than the previous year.
- Healthy bidding activity was driven by demand for electricity and reliable, resilient infrastructure, as well as advances in modern technologies like AI.

Master Service Agreements (MSAs) and New Contracts:
- Approximately 60% of T&D revenues came from MSAs, highlighting their significance in the company's revenue stream.
- The company secured new MSAs, including a 5-year design, build electric distribution MSA with Xcel Energy, contributing to revenue growth and market expansion.