MYR Group profit soars 291% as electrification backlog hits record
Electrical contractor reports record $2.82B backlog as CEO Swartz points to accelerating energy infrastructure demand
MYR Group reported its most profitable year on record, with full-year net income surging 291% to $118.4 million in 2025, as the electrical construction company capitalizes on accelerating demand for grid modernization and electrification infrastructure across North America.
The Henderson, Colorado-based contractor posted fourth-quarter earnings per share of $2.33, beating analyst estimates of $1.915 by 21.7%. Revenue for the quarter rose 5.2% to $973.5 million, exceeding the $925.3 million consensus forecast. The results were detailed in the company's quarterly earnings announcement on Wednesday.
The fourth quarter alone generated a record $64.2 million in EBITDA, while gross margins expanded to 11.4%, marking the company's strongest operational performance in its history. Full-year earnings per share reached $7.53, a dramatic improvement from the prior year as execution quality improved across both business segments.
Perhaps most significant for investors, MYR Group's backlog swelled to $2.82 billion—a record high that provides substantial revenue visibility for the coming 12 to 18 months. The backlog represents a 9.6% increase and reflects robust bidding activity across the company's Transmission & Distribution and Commercial & Industrial divisions, according to management commentary.
Chief Executive Rick Swartz characterized the results as validation of the company's strategic positioning amid what he described as an "accelerating pace of electrification" and growing investment in resilient electrical infrastructure. The demand drivers span electric transmission and distribution network upgrades, substation construction, clean energy projects, and electric vehicle charging infrastructure deployment.
"We are positioned for continued success," Swartz stated in the earnings release, pointing to the strength of the company's order book and the expanding addressable market for electrical construction services.
The backdrop for MYR Group's growth is significant. Capital investment in U.S. electricity distribution is projected to increase 5% year-over-year to $84 billion in 2026, while transmission spending is expected to jump 15.3% to approximately $86.5 billion, according to industry analysis. The broader U.S. industrial electrification market is forecast to expand at an 8.1% compound annual growth rate through 2034.
Analysts anticipate MYR Group will generate approximately $3.93 billion in revenue during 2026, representing roughly 10% growth and aligning with management's guidance. The company's guidance reflects expectations that it will convert a substantial portion of its current backlog within the next year, with additional major transmission projects slated to commence construction in 2027.
Despite the strong results, MYR Group shares declined 1.8% to $274.01 in Thursday trading, pulling back slightly after a 12% rally that had preceded the earnings release. The stock has surged from a 52-week low of $97.72 and remains near its recent high of $284.98, reflecting investor enthusiasm for infrastructure plays tied to the energy transition.
The valuation, however, presents some concerns. The company trades at 44 times trailing earnings, significantly above the average for construction and engineering peers. Analysts at major brokerages maintain a mixed outlook, with four buy ratings and three hold ratings, and an average price target of $254.33, according to market data compiled Thursday.
Management has emphasized that execution quality and margin preservation remain priorities amid ongoing challenges including inflationary pressures, supply chain disruptions, and labor market constraints that have historically weighed on contractor profitability.
Looking ahead, investors will be watching for updates on margin trends as the company works through its record backlog. The company's leadership team is scheduled to present at the Jefferies Power, Energy, Clean Energy & Utilities investor conference on March 4, which may provide additional color on the 2026 outlook and the competitive landscape for electrical infrastructure projects.
The company's performance underscores the broader thesis around North American grid modernization and electrification, with utilities and industrial customers committing billions to upgrade aging infrastructure, accommodate renewable energy integration, and support the buildout of electric vehicle charging networks. As one of the largest specialty electrical contractors operating across the United States and Canada, MYR Group is well-positioned to capture a meaningful share of this multi-year investment cycle.