Key Highlights

  • Diluted EPS of USD 3.82 beat the USD 2.97 consensus estimate and compared with USD 2.05 a year earlier.
  • Revenue of USD 1.26 billion rose 32.5% and topped the USD 1.16 billion consensus estimate.
  • Gross margin widened to 13.6% from 11.8%, while quarterly EBITDA climbed to USD 110.0 million from USD 62.7 million.
  • Backlog reached USD 3.68 billion, up USD 520.6 million from June 30, with commercial and industrial adding USD 498.2 million.

MYR Group Inc. (NASDAQ:MYRG) reported third-quarter 2026 diluted earnings per share of USD 3.82, up from USD 2.05 a year earlier and above a consensus estimate of USD 2.97. Contract revenues rose 32.5% to USD 1.26 billion from USD 950.4 million, ahead of a consensus estimate of USD 1.16 billion. Net income grew to USD 60.0 million from USD 32.1 million, and operating income reached USD 85.1 million, a 6.7% margin versus 5.0%.

Gross profit increased 53.0% to USD 171.2 million, and the gross margin of 13.6% compared with 11.8% in the prior-year quarter. The filing attributes the improvement to better-than-anticipated productivity, favorable job close outs and higher margins on projects nearing completion. Selling, general and administrative expense rose to USD 81.5 million, reflecting the acquired Valley business, incentive compensation and added staff.

Segment Detail and the Valley Acquisition

Commercial and industrial revenue jumped 57.6% to USD 704.5 million, with fixed-price work including incremental revenue from Valley, an Everett, Washington electrical contractor acquired on July 1 for USD 324.8 million. Segment operating margin widened to 8.7% from 6.4%, even after USD 4.9 million of added intangible amortization. Transmission and distribution revenue rose 10.2% to USD 554.5 million, and its operating margin improved to 9.3% from 8.2%.

For nine months, revenue reached USD 3.34 billion, up 24.5%, net income was USD 156.7 million against USD 81.9 million, and EBITDA reached USD 276.5 million. Commercial and industrial customers generated 51.5% of nine-month revenue.

Backlog, Financing and Management Commentary

Backlog stood at USD 3.68 billion against USD 2.66 billion a year earlier, with USD 2.85 billion of it estimated for recognition within twelve months. Management said it sees continued healthy bidding in transmission and distribution and strong commercial opportunities in data centers, transportation, health care and manufacturing. It also noted that large multi-year transmission awards made in 2026 are not projected to have a large impact on 2026 results because major construction activity begins in 2027 or later.

On September 8 the company signed a five-year credit agreement with a USD 690 million revolver and a term facility, leaving USD 650.5 million of borrowing availability at quarter end. Operating cash flow for nine months was USD 134.2 million versus USD 211.7 million, a decline tied to working capital timing. A repurchase program of up to USD 100.0 million becomes effective on November 4 and runs to November 3, 2027.

What Remains Open

Four items frame the next report. Backlog conversion is first, with USD 2.85 billion estimated to be recognized within twelve months and USD 834.7 million after that. Valley integration is second, as the acquisition added USD 4.9 million of quarterly amortization, while interest expense rose to USD 3.6 million from USD 1.4 million on incremental borrowings. Margin quality is third: estimate changes added 1.1% to gross margin while inefficiencies subtracted 0.7%. The fourth is balance sheet use, including the buyback start date of November 4 and USD 199.3 million of term borrowings outstanding. No numerical guidance appears in the filing.