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THORNTON, 28 July 2023: MYR Group Inc, a leading specialty contractor serving the electric utility infrastructure, commercial, and industrial construction markets in the United States and Canada, announced its second quarter and first-half 2023 financial results.
Q2 2023 Results
MYR reported Q2 2023 revenues of USD 888.6m, a 25.5 percent increase compared to Q2 2022. The Transmission and Distribution (“T&D”) segment reported revenues of USD 503.7m, an increase of 21.3 percent, primarily due to higher revenue on transmission projects, including clean energy projects. The Commercial and Industrial (“C&I”) segment reported revenues of USD 384.9m, an increase of 31.4 percent, mainly due to higher revenue from clean energy projects in certain regions.
Consolidated gross profit for Q2 2023 was USD 90.1m, an 11.5 percent increase from Q2 2022. Gross margin in Q2 2023 was 10.1 percent, down from 11.4 percent in Q2 2022, primarily due to labor and project inefficiencies, supply chain disruptions, inclement weather, and inflation-related costs. SG&A expenses rose to USD 57.8m in Q2 2023, mainly due to increased employee-related expenses to support business growth.
Q2 2023 net income was USD 22.3m or USD 1.33 per diluted share, compared to USD 19.7m, or USD 1.15 per diluted share, in Q2 2022. EBITDA for Q2 2023 reached USD 47.1m, compared to USD 43.9m in Q2 2022.
First-Half 2023 Results
MYR reported first-half 2023 revenues of USD 1.70bn, a 26.4 percent increase compared to the first half of 2022. The T&D segment’s revenues were USD 949.1m, up 21.7 percent, and the C&I segment’s revenues were USD 751.2m, a 33 percent increase, both primarily driven by clean energy projects.
Consolidated gross profit for the first half of 2023 was USD 174.5m, an 8.2 percent increase from the first half of 2022. Gross margin in the first half of 2023 was 10.3 percent, down from 12 percent in the first half of 2022, primarily due to labor inefficiencies, supply chain disruptions, and inflation-related costs.
First-half 2023 net income was USD 45.4m or USD 2.70 per diluted share, compared to USD 40.4m, or USD 2.36 per diluted share, in the first half of 2022.
Backlog
As of June 30, 2023, MYR’s backlog was USD 2.73bn, with the T&D segment’s backlog at USD 1.18bn and the C&I segment’s backlog at USD 1.55bn.
Balance Sheet
As of June 30, 2023, MYR had USD 451m of borrowing availability under its USD 490m revolving credit facility.
Non-GAAP Financial Measures
MYR uses certain non-GAAP measures to supplement its financial statements. These measures include EBITDA, which was USD 47.1m for Q2 2023, and EBITDA per diluted share, which was USD 2.80. The company also reported free cash flow of USD 43.4m for the last twelve months ended June 30, 2023.
Management Comments
Rick Swartz, MYR’s President, and CEO expressed satisfaction with the company’s solid performance in Q2 2023. The company achieved record high quarterly revenues of USD 888.6m and a record backlog of USD 2.73bn. Net income in Q2 2023 reached USD 22.3m, representing a 13.2 percent increase compared to the same period in 2022. The company also saw growth in consolidated gross profit and EBITDA during the same period. Swartz emphasized that MYR continues to identify quality bidding opportunities and maintain strong relationships with existing customers while strategically pursuing new work.
Q2 2023 Highlights
- Record quarterly revenues of USD 888.6m
- Quarterly net income of USD 22.3m, or USD 1.33 per diluted share
- Quarterly EBITDA of USD 47.1m
- Record backlog of USD 2.73bn
MYR Group is a holding company of specialty electrical contractors in the US and Canada, operating through two segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). The T&D segment serves electric transmission, distribution, clean energy, and EV charging infrastructure. The C&I segment offers services for industrial facilities, data centers, airports, and more.
