MYR Group Q2 revenue beats estimates on C&I segment growth

Overview

• US specialty electrical contractor's Q2 revenue rose, beating analyst expectations

• Q2 net income and EPS reached record highs, driven by higher margins and demand

• Backlog at quarter-end hit record $3.16 bln, signaling strong future demand

Outlook

• Company says it continues to see a healthy pipeline of bidding opportunities

• MYR Group cites strong market fundamentals and ongoing investment in electrical infrastructure

Result Drivers

• CI SEGMENT GROWTH - Revenue in the Commercial and Industrial segment rose sharply, mainly due to increased revenue on fixed price contracts

• GROSS MARGIN IMPROVEMENT - Gross margin increased due to better-than-anticipated productivity, favorable job closeouts, and increased project scope, partially offset by higher costs from project inefficiencies

• SUSTAINED CUSTOMER DEMAND - Management cited ongoing investment in electrical infrastructure and strong demand across core markets as key drivers

Company press release: ID:nGNX4Yvwjd

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction engineering peer group is "buy"

• Wall Street's median 12-month price target for MYR Group Inc is $469.00, about 37.6% above its July 28 closing price of $340.72

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• July 28 - Orion Group Q2 adjusted EPS and EBITDA miss estimates; lowers FY outlook

• July 28 - Electrical equipment maker Hubbell lifts profit forecast amid demand from data centers

• July 29 - Tetra Tech beats Q3 revenue estimates on federal and international growth, raises FY adjusted EPS guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)