MYR Group (NASDAQ:MYRG) Delivers Strong Q4 CY2025 Numbers

Electrical construction and infrastructure services provider MYR Group (NASDAQ:MYRG) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 17.3% year on year to $973.5 million. Its GAAP profit of $2.33 per share was 30.5% above analysts’ consensus estimates.

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Company Overview

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, MYR Group’s sales grew at a solid 10.2% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. MYR Group’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

MYR Group also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. MYR Group’s backlog reached $2.82 billion in the latest quarter and averaged 5.4% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for MYR Group’s products and services but raises concerns about capacity constraints.

This quarter, MYR Group reported year-on-year revenue growth of 17.3%, and its $973.5 million of revenue exceeded Wall Street’s estimates by 8%.

Looking ahead, sell-side analysts expect revenue to grow 7.5% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and suggests its newer products and services will catalyze better top-line performance.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

MYR Group’s operating margin has been trending up over the last 12 months and averaged 3.6% over the last five years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports lousy profitability for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Looking at the trend in its profitability, MYR Group’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, MYR Group generated an operating margin profit margin of 4.8%, up 1.1 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

MYR Group’s EPS grew at a spectacular 16.7% compounded annual growth rate over the last five years, higher than its 10.2% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t improve.

Diving into the nuances of MYR Group’s earnings can give us a better understanding of its performance. A five-year view shows that MYR Group has repurchased its stock, shrinking its share count by 8%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For MYR Group, its two-year annual EPS growth of 18% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q4, MYR Group reported EPS of $2.33, up from $0.99 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects MYR Group’s full-year EPS of $7.53 to grow 17.3%.

Key Takeaways from MYR Group’s Q4 Results

It was good to see MYR Group beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock remained flat at $273.91 immediately after reporting.

So should you invest in MYR Group right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).