MYR Group combines record backlog, grid modernization, and AI data-center demand with an oversold share price, offering attractive asymmetric five-year upside despite fixed-price execution risks.
Overview
MYR Group is a North American specialty electrical contractor operating through 13 subsidiaries across utility T&D and C&I construction. Its customers select the company for specialized equipment, geographic scale, union craft access, safety qualifications, and experience executing complex multi-state projects. **The operating trajectory strengthened materially in Q2 2026:** contract revenue rose 20.1% year over year to $1,081.7 million, gross margin expanded 170 basis points to 13.2%, net income increased 88.4% to $49.9 million, diluted EPS rose 86.5% to $3.17, and EBITDA reached a record $85.0 million. Backlog climbed 19.6% to a record $3.16 billion, supported by C&I data-center work and steady T&D demand. At $271.29, shares trade at approximately 21.18x–22.17x forward P/E and 13.56x–14.50x EV/EBITDA, below the report’s $412 consensus 12-month target. **Near-term catalysts are margin execution, Valley/Comet integration, backlog conversion, and continued grid and data-center awards**, although rates, permitting, insider selling, and fixed-price execution remain material risks.