MYR Group Q2 Earnings Beat Estimates, Backlog Hits Record

MYR Group reported second-quarter earnings of $3.17 per share, which beat the Zacks Consensus Estimate of $2.64 by 20.1%. Revenues increased 20.1% year over year to a record $1.08 billion and topped the consensus estimate of $995.5 million by approximately 8.8%.

Revenue Growth Driven by Strong C&I Performance

Total revenues increased to $1.08 billion from $900.3 million in the prior-year quarter. The growth was led by the Commercial & Industrial segment, where revenues surged 41.5% year over year to a record $557.7 million.

The segment benefited from higher activity in data centers, advanced manufacturing, transportation and other mission-critical infrastructure projects. Meanwhile, T&D revenues rose 3.5% to $524 million, supported by continued utility spending on transmission and distribution infrastructure.

Margins Expand on Favorable Project Execution

Gross profit increased 37.6% year over year to $142.7 million, while gross margin expanded 170 basis points to 13.2%. The improvement reflected better-than-expected productivity, favorable project closeouts and increased project scope on certain contracts.

Operating income climbed to $67.9 million from $39.8 million in the year-ago period. T&D operating margin improved to 9.4% from 8.0%, while C&I operating margin expanded to 8.5% from 5.6%, aided by strong project execution and a favorable mix of higher-margin work.

Record Backlog Reflects Healthy Demand Environment

A key highlight of the quarter was backlog growth. As of June 30, 2026, backlog reached a record $3.16 billion, up 19.6% from $2.64 billion a year earlier.

T&D backlog totaled $1.27 billion, while C&I backlog stood at $1.89 billion. Management noted that investments in grid reliability, transmission infrastructure and growing electricity demand continue to support a robust pipeline of opportunities.

Project Wins and Acquisition Support Growth Outlook

During the quarter, MYR secured several notable awards, including more than $200 million of transmission work from Xcel Energy. The company also won multiple data center projects across New Jersey, Arizona and Colorado, underscoring strong demand in the mission-critical infrastructure market.

Management also discussed the recently completed acquisition of Valley Electric and Comet Electric, which closed on July 1. The acquisition expands MYR's commercial and industrial capabilities and geographic footprint. The company expects the acquired businesses to contribute roughly $250 million in revenues during the second half of 2026.

Management Remains Optimistic on End-Market Trends

During the earnings call, executives highlighted continued strength across key end markets, including data centers, utilities, advanced manufacturing and transportation infrastructure.

Management noted that utilities continue to plan large transmission projects extending into 2028 and beyond, while commercial customers remain active across a broad range of industries. The company also emphasized its disciplined approach to project selection and its strong relationships with long-standing customers.

What Zacks Rank and Style Scores Signal

MYR currently carries a Zacks Rank #3 (Hold), suggesting that the stock is expected to perform in line with the broader market over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also holds a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The strong Growth, Momentum and VGM scores reflect MYR Group's solid earnings growth prospects, favorable price performance and attractive overall fundamental profile. Investors looking for companies with a combination of growth potential and positive momentum may find the stock worth monitoring, although the Hold-ranked status suggests waiting for additional positive estimate revisions before becoming more aggressive.

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