MYR Group is emerging from a 2024 margin trough into an electrification-and-AI infrastructure upcycle, pairing defensive utility grid work with fast-growing data center demand.
Overview
MYR Group (MYRG) is a long-established North American electrical infrastructure contractor (roots to 1891) operating through a decentralized portfolio of subsidiaries that preserve local relationships while leveraging parent-company scale, bonding, and capital. The business is split between Transmission & Distribution (utility-focused grid work) and Commercial & Industrial (complex electrical systems for facilities like airports, hospitals, manufacturing, and increasingly data centers). In 2025, MYR is positioned at the intersection of grid modernization/resilience and AI-driven data center electrification. After 2024 execution/margin issues—especially tied to lower-quality solar EPC exposure—management pivoted toward higher-margin, better-risk work and MSAs, highlighted by a five-year, $500M Xcel distribution agreement. Q3 2025 results show a clear recovery: revenue of $950.4M (+7% YoY) and net income of $32.1M (EPS $2.05), nearly triple the prior year. Record backlog of $2.66B provides multi-year visibility. Despite ~46.7% YTD share appreciation to about $221, valuation remains compelling relative to growth (PEG ~0.2) and improving earnings power, supported by a healthy balance sheet and capacity for organic investment and bolt-on acquisitions.