MYR Group Q1 2025 Earnings Report

MYR Group EPS Results

• Actual EPS: $1.45
• Consensus EPS: $1.18
• Beat/Miss: Beat by +$0.27
• One Year Ago EPS: $1.12

MYR Group Revenue Results

• Actual Revenue: $833.62 million
• Expected Revenue: $788.98 million
• Beat/Miss: Beat by +$44.64 million
• YoY Revenue Growth: +2.20%

MYR Group Announcement Details

• Quarter: Q1 2025
• Date: 4/30/2025
• Time: After Market Closes
• Conference Call Date: Thursday, May 1, 2025
• Conference Call Time: 10:00AM ET

MYR Group (NASDAQ:MYRG) Inc. (NASDAQ: MYRG) is a specialty electrical contractor that provides a broad array of construction, maintenance and emergency restoration services to utility, commercial, industrial and renewable energy customers. The company was formed in 1995 through the consolidation of several regional specialty contractors and has since expanded its capabilities to support complex transmission and distribution projects, substation installations, communication and wireless infrastructure, as well as renewable power interconnections.

Through a network of operating subsidiaries, MYR Group delivers turnkey solutions that include overhead and underground line construction, substation and switchgear installation, substation maintenance and testing, and storm restoration services. The company’s workforce is trained to deploy advanced equipment and adhere to stringent safety and regulatory standards, enabling it to work on projects ranging from urban transmission rebuilds to rural distribution extensions and large-scale solar, wind and battery storage interconnection systems.

Headquartered in Henderson, Colorado, MYR Group serves customers across the United States and Canada, with regional offices and field locations that provide local responsiveness and operational flexibility. The company is led by President and Chief Executive Officer Clive H. Lewin, whose tenure has focused on strategic growth through selective acquisitions and investment in technology, workforce development and safety programs. MYR Group continues to pursue opportunities in evolving energy markets while maintaining its emphasis on reliable delivery and long-term customer relationships.

MYR Group Q1 2025 Earnings Call Transcript

Key Takeaways

• MYR reported Q1 revenues of $834 million, up 2.2% YoY, with strong Commercial & Industrial growth of 14.4% offsetting a 5.8% decline in Transmission & Distribution.
• Gross margin increased to 11.6% (vs. 10.6% a year ago) and operating margins rose to 7.8% for T&D and 4.7% for C&I, driven by higher-margin project closeouts and favorable change orders.
• Total backlog reached $2.64 billion, a 9% increase YoY—comprising $873 million in T&D and $1.77 billion in C&I—boosting revenue visibility.
• Operating cash flow jumped to $83 million (from $8 million) and free cash flow to $70 million (vs. –$18 million), enabling the repurchase of 639,000 shares and sustaining a strong balance sheet.
• T&D revenue fell 5.8% as management remained selective on clean energy projects and solar work, creating a near-term headwind to segment growth.

Presentation

[Operator]

Good morning, everyone, and welcome to the MYR Group First Quarter twenty twenty five Earnings Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Today's conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Jennifer Harper, MYR Group Vice President of Investor Relations and Treasurer. Please go ahead, Jennifer.

[Jennifer Harper, VP - IR & Treasurer at MYR Group]

Thank you, and good morning, everyone. I would like to welcome you to the MYR Group conference call to discuss the company's first quarter results for 2025, which were reported yesterday. Joining us on today's call are Rick Swartz, President and Chief Executive Officer Kelly Huntington, Senior Vice President and Chief Financial Officer Brian Stern, Senior Vice President and Chief Operating Officer of MYR Group's Transmission and Distribution Segment and Don Egan, Senior Vice President and Chief Operating Officer of MYR Group's Commercial and Industrial Segment. A copy of yesterday's press release is available on the MYR Group website at myrgroup.com under the Investors tab. A webcast replay of today's call will be available on the website for seven days following the call.

[Jennifer Harper, VP - IR & Treasurer at MYR Group]

Before we begin, I want to remind you that this discussion may contain forward looking statements. Any such statements are based upon information available to MYR Group's management as of this date, and MYR Group assumes no obligation to update any such forward looking statements. These forward looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Accordingly, these statements are no guarantee of future performance. These risks and uncertainties are discussed in the company's annual report on Form 10 ks for the year ended 12/31/2024, the company's quarterly report on Form 10 Q for the first quarter of twenty twenty five and in yesterday's press release.

[Jennifer Harper, VP - IR & Treasurer at MYR Group]

We also present certain non GAAP financial measures. A reconciliation of these non GAAP measures to the most comparable GAAP measures is set forth in yesterday's press release. With that, let me turn the call over to Rick Swartz.

[Richard Swartz, President, CEO & Director at MYR Group]

Thanks, Jennifer. Good morning, everyone. Welcome to our first quarter twenty twenty five conference call to discuss financial and operational results. I will begin by providing a summary of the first quarter results, and then we'll turn the call over to Kelly Huntington, our Chief Financial Officer, for a more detailed financial review. Following Kelly's overview, Brian Stern and Don Egan, Chief Operating Officers for our T and D and C and I segments, will provide a summary of our segment's performance and discuss some of MYR Group's opportunities going forward.

[Richard Swartz, President, CEO & Director at MYR Group]

I will then conclude today's call with some closing remarks and open the call up for your questions. We achieved solid financial results in the first quarter as we continue to expand strong customer relationships through master service and alliance agreements, perform ongoing work for our long term customers and strategically pursue new opportunities. We remain committed to operational consistency and serving as an open and trusted partner for our customers. Bidding activity is healthy in both business segments and is reflective of the investments being made to meet the growing electrification demand. We believe our experience and proven ability to deliver safe, quality and on time results places us in leading positions to capture this expansive work and grow our business.

[Richard Swartz, President, CEO & Director at MYR Group]

Remaining a strong and nimble partner while executing projects with superior quality enables us to offer to our customers and develop future opportunities. Our financial results and performance continue to reflect a commitment to long term growth and creating a foundation for future opportunities and success. Now Kelly will provide details on our first quarter twenty twenty five financial results.

[Kelly Huntington, SVP & CFO at MYR Group]

Thank you, Rick, and good morning, everyone. Our first quarter twenty twenty five revenues were $834,000,000 which represents an increase of $18,000,000 or 2.2% compared to the same period last year. Our first quarter T and D revenues were $462,000,000 a decrease of 5.8% compared to the same period last year. The breakdown of T and D revenues was $270,000,000 for transmission and $192,000,000 for distribution. Transmission revenues decreased by $44,000,000 primarily related to our continued selectivity on clean energy projects, offset by an increase of $16,000,000 in revenue on distribution projects.

[Kelly Huntington, SVP & CFO at MYR Group]

Work performed under master service agreements continue to represent approximately 60% of our T and D revenue. C and I revenues were $372,000,000 an increase of 14.4% compared to the same period last year due to an increase in revenue on fixed price contracts and T and E contracts. Our gross margin was 11.6% for the first quarter of twenty twenty five compared to 10.6% for the same period last year. The increase in gross margin was primarily due to a larger portion of our projects progressing at higher contractual margins, some of which are nearing completion. Gross margin was also positively impacted by favorable change orders, better than anticipated productivity and a favorable job closeout.

[Kelly Huntington, SVP & CFO at MYR Group]

These margin increases were partially offset by higher costs related to labor and project inefficiencies and unfavorable change orders. T and D operating income margin was 7.8% for the first quarter of twenty twenty five compared to 6.1% for the same period last year. The increase was primarily due to a lower negative impact of significant changes in our estimated gross profit on certain projects, primarily due to fewer labor and project inefficiencies when compared to the same period last year. C and I operating income margin was 4.7% for the first quarter of twenty twenty five compared to 3.5 for the same period last year. The increase was primarily due to a larger portion of our C and I projects progressing at higher contractual margins, some of which are nearing completion as well as favorable change orders.

[Kelly Huntington, SVP & CFO at MYR Group]

Additionally, C and I operating income for the first quarter of twenty twenty four was negatively impacted by contingent compensation expense related to a prior acquisition that did not recur in the first quarter of twenty twenty five. C and I operating income margin was also positively impacted by favorable joint venture results, a favorable job closeout and better than anticipated productivity. These increases were partially offset by higher costs related to labor and project inefficiencies and unfavorable change orders. First quarter twenty twenty five SG and A expenses were $62,500,000 an increase of approximately $300,000 compared to the same period last year. The increase was primarily due to higher employee related expenses to support future growth and an increase in employee incentive compensation costs.

[Kelly Huntington, SVP & CFO at MYR Group]

These increases were partially offset by $3,200,000 of contingent compensation expense related to a prior acquisition recognized during the first quarter of twenty twenty four. First quarter '20 '20 '5 interest expense was $1,400,000 an increase of $300,000 compared to the same period last year. The increase was due to higher average outstanding debt balances, partially offset by lower interest rates. Our first quarter effective tax rate was 28.9% compared to 18% for the same period last year. The increase was primarily due to no stock compensation excess tax benefits in the first quarter of twenty twenty five.

[Kelly Huntington, SVP & CFO at MYR Group]

First quarter '20 '20 '5 net income was $23,000,000 compared to net income of $19,000,000 for the same period Net income per diluted share of $1.45 increased 29% compared to $1.12 for the same period last year. First quarter twenty twenty five EBITDA was $50,000,000 compared to $40,000,000 for the same period last year. Total backlog as of 03/31/2025, was $2,640,000,000 9 percent higher than a year ago. Total backlog as of 03/31/2025, consisted of eight seventy three million dollars for our T and D segment and $1,770,000,000 for our C and I segment.

[Kelly Huntington, SVP & CFO at MYR Group]

First quarter twenty twenty five operating cash flow was $83,000,000 compared to operating cash flow of $8,000,000 for the same period last year. The increase in cash provided by operating activities was primarily due to a reduction in our accounts receivable. First quarter twenty twenty five free cash flow was $70,000,000 compared to negative free cash flow of $18,000,000 for the same period last year, reflecting the increase in operating cash flow and lower capital expenditures. During the quarter, we repurchased 639,000 shares at an average price of $117.33 exhausting our current share repurchase program. Moving to liquidity in our balance sheet, we had approximately $230,000,000 of working capital, dollars 87,000,000 of funded debt and $379,000,000 in borrowing availability under our credit facility as of 03/31/2025.

[Kelly Huntington, SVP & CFO at MYR Group]

We have continued to maintain a strong funded debt to EBITDA leverage ratio of 0.68 times as of 03/31/2025. We believe that our credit facility, strong balance sheet and future cash flow from operations will enable us to meet our working capital needs, support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares. I'll now turn the call over to Brian Stern, who will provide an overview of our Transmission and Distribution segment.

[Brian Stern, Senior VP & COO of Transmission & Distribution at MYR Group]

Thanks, Kelly, and good morning, everyone. Expansion of long and winning additional work with customers across the country resulted in solid financial results for our T and D segment in the first quarter. Our project portfolio consists of healthy mix of smaller to midsized jobs and master service agreements, which continue to increase backlog. Driven by a growing demand for electricity and the improvement needed to managing electrical infrastructure, bidding activity remains strong in the sector. The utility market continues to see opportunities such as the PJM interconnection approval of $5,900,000,000 in new transmission projects to bolster reliability throughout the grid operator's footprint.

[Brian Stern, Senior VP & COO of Transmission & Distribution at MYR Group]

Footprint. Also MISO continued to add to its long range transmission planning by approving tranche 2.1 plans of $6,700,000,000 in December 2024. We believe significant investments in electrical infrastructure present many exciting opportunities for growth across our subsidiaries who have strong existing relationships with several utility customers in the region. We will continue to monitor and strategically pursue project opportunities related to expansion plans and others in The U. S.

[Brian Stern, Senior VP & COO of Transmission & Distribution at MYR Group]

And Canada to further strengthen our market presence. As we continue serving customers through MSAs and alliance agreements, we were also awarded a variety of transmission, distribution and substation work across the country in the first quarter, including a sizable transmission line rebuilding project in Virginia. In conclusion, we continue to evaluate, improve and grow our T and E business. Our first quarter results reflect our ability to effectively listen to and work with our customers to meet or exceed their expectations. We will remain disciplined in our efforts to capitalize on the right opportunities, and we will continue to invest in the development and safety of our talented teams.

[Brian Stern, Senior VP & COO of Transmission & Distribution at MYR Group]

I will now turn over the call to Don Egan, who will provide an overview of our Commercial and Industrial segment.

[Don Egan, Senior VP & COO of Commercial and Industrial at MYR Group]

Thanks, Brian, and good morning, everyone. Our C and I segment achieved solid results in the first quarter as we continued to execute projects of various sizes in close collaboration with our valued customers, while strategically monitoring and pursuing new opportunities. Our chosen core markets remain strong and present a healthy bidding environment as we captured additional work this quarter in data centers, healthcare, industrial and clean energy, just to name a few. Recently, Sturgeon was verbally awarded Phase one, a large scale data center project in Colorado valued at over $90,000,000 which we anticipate being added to our backlog in the coming quarters. Additionally, CSI and Sturgeon were awarded water treatment projects in California and Colorado respectively, while Sturgeon also won projects in healthcare, transportation and municipality projects.

[Don Egan, Senior VP & COO of Commercial and Industrial at MYR Group]

Out East, E. S. Bulos, was awarded solar and industrial work in Maine and Hewitt Electric won higher education, solar and municipality projects in New York. We're also pursuing exciting opportunities for sizable data center projects this year across various subsidiaries and expect some data center contracts already in place to increase due to project expansion to meet the growing demand to support artificial intelligence. The American Institute of Architects consensus construction forecast released in January projects further growth for our core markets in 2025 with positive forecasts of 22% in data centers, 4% increases in both healthcare and education construction spend and 3% in manufacturing.

[Don Egan, Senior VP & COO of Commercial and Industrial at MYR Group]

This growth is also reflected in the Dodge Momentum Index figures reported in recent months. The latest Dodge Momentum Index report released in April found the overall index in February was up 30% compared to the previous year and the commercial segment was up 32% from February of twenty twenty four. In summary, we believe these encouraging forecasts in our core markets could generate growth for our business as we continue to leverage our expertise to place us in leading positions to strategically capture future opportunities. I thank all of our employees for their daily commitment to safely executing projects and delivering exceptional quality and value to our customers. I look forward to all the important work ahead of us this year and beyond.

[Don Egan, Senior VP & COO of Commercial and Industrial at MYR Group]

Thanks everyone for your time today. I will now turn the call back to Rick, who will provide us with some closing comments.

[Richard Swartz, President, CEO & Director at MYR Group]

Thank you for those updates, Kelly, Brian and Don. Our first quarter performance demonstrates the stability of our core markets, the strength of our operational teams and the depth of our customer relationships. We will continue our commitment to sound business strategies and strong operating principles while remaining proactive and disciplined in a dynamic energy landscape. I am proud of the performance across both our market segments, which is a testament to the tireless work, skill and ongoing training of our amazing employees. I thank each of them for their efforts to safely and consistently deliver high quality electrical construction services and generate value for our customers.

[Richard Swartz, President, CEO & Director at MYR Group]

We will continue to invest in the safety and development of our teams across the company because they are the catalyst to our success. Finally, I would like to thank all of you for your continued support of MYR Group. We look forward to growing our business in 2025, serving our customers as a trusted and nimble partner, and creating value for our communities and shareholders. Operator, we're now ready to open the call up for comments and questions.

[Operator]

Thank you. As a reminder, for those of you on the phone, to ask a question, please press 1 1 at your telephone, Our first question will come from the line of Hari Morak from Goldman Sachs. Your line is open.

[Atidrip Modak, Vice President - Energy Services & E&Ps at Goldman Sachs]

Hi, good morning team. I guess on the C and I side, revenue was strong, margin was strong. Was just curious how you are looking at the backlog and pipeline of opportunities there. I know you mentioned some of the end markets. But wondering about the impacts of the macro in the potential timing of the backlog and anything that you are hearing from customer conversations there would be helpful.

[Richard Swartz, President, CEO & Director at MYR Group]

From our standpoint, still having very active conversations with our clients. We haven't seen anybody pull back or say they're pulling back in any way to date continue, as I said, to see an active market. And I think it right now points positive going forward. I know there's a lot of discussions around tariffs, and we continue to have those daily with our clients of how that's going to affect their projects, how inflation is going to affect them. But to date, we haven't seen any pullback.

[Atidrip Modak, Vice President - Energy Services & E&Ps at Goldman Sachs]

Got it. And then maybe one for Kelly. You guys authorized and exhausted the share repurchase this quarter. I'm just curious how you're thinking about that for the rest of the year and just overall capital allocation priorities for this year?

[Kelly Huntington, SVP & CFO at MYR Group]

Yes. Thanks. We continue to prioritize growth with respect to our capital allocation strategy. So that means supporting the organic growth that we see this year as well as being in the position to make the right acquisition. We continue to be in a strong financial position, but we're not announcing another share repurchase program at this time.

[Kelly Huntington, SVP & CFO at MYR Group]

But I think as you've seen in the past, we can be nimble. And as we monitor the markets and our growth prospects, we can put in a program quickly if that makes sense.

[Atidrip Modak, Vice President - Energy Services & E&Ps at Goldman Sachs]

Absolutely. Thank you.

[Operator]

Thank you. One moment for our next question. Our next question will come from the line of Sangeetha Jain from KeyBanc. Your line is open.

[Sangita Jain, Senior Analyst at KeyBanc Capital Markets]

Yes, good morning. Thank you for taking my question. Kelly, if I can ask one more on the capital allocation. Your free cash flow this quarter was considerably stronger than at least what we were anticipating. So just trying to see if there was any kind of like onetime ish in there and how we should think about your free cash flow for the rest of the year?

[Sangita Jain, Senior Analyst at KeyBanc Capital Markets]

And more color maybe on why you wouldn't want to extend your share buyback authorization?

[Kelly Huntington, SVP & CFO at MYR Group]

Sure. So on the last call, we mentioned some positive leading indicators from third quarter to fourth quarter twenty twenty four. We saw an over $30,000,000 reduction in our pending change orders and over a $40,000,000 reduction in retainage. So that did translate to cash collections in first quarter, driving higher operating and free cash flows. I think as we look forward, as we've talked about before, there's not a good rule of thumb for free cash flow conversion for our business, particularly in the near term.

[Kelly Huntington, SVP & CFO at MYR Group]

But maybe just to give some color on some of the pluses and minuses as we look forward. On the positive side, our increased profitability this year should drive positive operating cash flow. On the negative side, we are a little below our historic DSO average. So that could be a headwind, especially as interest rates remain relatively high, payment terms continue to be more of a focus in our contract negotiations. And as we've seen, MSAs are increasing an increasing percentage of our revenues.

[Kelly Huntington, SVP & CFO at MYR Group]

So that along with selectivity on clean energy and kind of the lumpiness of large projects can mean less opportunity to get into a really strong overbuild position like we saw back at the end of twenty twenty two. So I'd say that's at least some of the pluses and minuses we see. Rick, did you want to give any more color on share repurchase? We are sensitive to how much we're deploying to that over time.

[Richard Swartz, President, CEO & Director at MYR Group]

Yes. For us, it's just that balancing act. When we see the opportunities to organically grow our business, we want to make sure that we can continue to do that. And then we're always looking at acquisitions. So those opportunities are out there.

[Richard Swartz, President, CEO & Director at MYR Group]

We just want to make sure we're patient in buying the right ones. But as Kelly said, we've shown in the past, we can basically deploy our capital, whether it's acquisitions, organic growth or through share repurchase, and we try to balance that on the opportunities that are out there to continue to grow our business.

[Sangita Jain, Senior Analyst at KeyBanc Capital Markets]

Got it. That's helpful. And if I can ask one more. Rick, you mentioned in your prepared comments that positive margins this quarter in T and D partly were a function of burning off some higher margin projects. I just kind of want to make sure that what is coming behind that is not necessarily lower margin than this.

[Sangita Jain, Senior Analyst at KeyBanc Capital Markets]

So I hope what I want to see is if we can continue to see you work towards that 7% to 10.5% margin target for the year.

[Richard Swartz, President, CEO & Director at MYR Group]

Yes. I think we're for us, nothing's changed. We should be in that mid part of our margin profile. That's the way we saw it coming into this year, and we still see that. So when I look at the 7% to 10.5%, we should be in that mid range by year end and continue our trend from there.

[Sangita Jain, Senior Analyst at KeyBanc Capital Markets]

Got it. Appreciate it. Thanks for taking my questions.

[Richard Swartz, President, CEO & Director at MYR Group]

Thank you.

[Operator]

One moment for our next question. Our next question comes from the line of Bradshaw from KCCA. Your line is open.

[Jonathan Braatz, Partner at Kansas City Capital Associates]

Good morning, everyone.

[Richard Swartz, President, CEO & Director at MYR Group]

Good morning.

[Jonathan Braatz, Partner at Kansas City Capital Associates]

Rick, just sort of a broad question. With the new administration and his issues with the inflation reduction act and maybe with the tariffs on solar product, panels, Are you seeing any change in thinking from the utilities on clean energy projects at this point?

[Richard Swartz, President, CEO & Director at MYR Group]

I think from a developer standpoint, I mean, kind of price increase. I mean, those are really financially driven models of whether those are economically feasible to build. I think that always comes into play. So I would say there can there could be some pausing on that side a little bit in a couple of geographic areas where we work, and we've seen that over the last couple of quarters. But for us, we've really been selective on what we take on, on our T and D side.

[Richard Swartz, President, CEO & Director at MYR Group]

And then as I said, on our C and I side, that market remains strong in the areas we're in today, so we haven't seen that pullback to date. Again, tariffs or inflation can affect those projects, but the rest of our core business, we really haven't seen it affect our conversations there at all.

[Jonathan Braatz, Partner at Kansas City Capital Associates]

Okay. All right. Thank you. Kelly, back to the your free cash flow, it was so strong in the quarter. Would you imagine that as you go forward, you have to dip into your credit lines to for working capital purposes?

[Kelly Huntington, SVP & CFO at MYR Group]

I would just refer back to the comments I gave in response to We see some pluses and minuses, but I think we're in a good financial position right now. And of course, as we look forward from a leverage perspective, our the second quarter of last year, where we had those bigger losses that will be rolling off as part of the calculation.

[Jonathan Braatz, Partner at Kansas City Capital Associates]

Okay. All right. Thank you, Kelly.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Justin Hawk from Baird. Your line is open.

[Justin Hauke, Vice President and Senior Research Associate at Robert W. Baird & Co]

Great. A lot of the questions I had have already been asked. Guess, the one I wanted to ask about was just kind of CapEx has been like the last couple of quarters. And I was just curious, if you've seen any shift in kind of purchasing decisions or maybe using rental assets instead of buying equipment, because ahead of tariffs and just how rapidly costs are shifting in the environment for some of the equipment that bucks and things you buy?

[Kelly Huntington, SVP & CFO at MYR Group]

Yes. I think if you look at our lower capital expenditures in the first quarter, was really just due to timing and how the receipt of fleet and equipment is kind of rolling out. Historically, we've seen CapEx as a percentage of revenue average around the mid-two percent level. So I'd say we continue to see that as a good benchmark going forward and that could tick a little higher or lower depending on whether our growth is more weighted to T and D or C and I. But no, we haven't made any significant shifts in how we're looking at how we procure our fleet and equipment.

[Kelly Huntington, SVP & CFO at MYR Group]

A lot of that we purchase and we do use rentals and leasing as well and rentals in particular kind of throttle up and down as we see demand in different markets that changing.

[Justin Hauke, Vice President and Senior Research Associate at Robert W. Baird & Co]

Okay. And then I guess my other one just from a modeling perspective, think so the T and D, I guess, particularly the transmission side, pressure from the roll off of some of those larger clean energy projects. Just wanted to kind of confirm, I think 2Q is the last, if you want to call it, a headwind from a growth perspective. And so just for thinking about revenue growth, I guess, thinking 2Q remains pretty modest, and then we get to the second half of the year and see more of that underlying single digit type growth that you guys have outside of that? I just want to confirm that.

[Richard Swartz, President, CEO & Director at MYR Group]

Yes. I would say nothing changed from what we said before right now. I would look at it as still that higher single digit growth for the core T and D segment and overall minus solar. So when you take solar out of it, the core T and D business, expect to grow.

[Richard Swartz, President, CEO & Director at MYR Group]

But that mid single digit or that higher single digit with the offset of solar there though. So that is a headwind, so the solar revenue we have.

[Kelly Huntington, SVP & CFO at MYR Group]

Yes. And I think that's consistent with what we saw in the quarter, where if you just look at that core T and D business, that was up in the high single digits year over year, so in line with that.

[Justin Hauke, Vice President and Senior Research Associate at Robert W. Baird & Co]

Yes, right. I guess I was more curious when the solar headwind, if you will, rolls off. I think 2Q is still pretty significant, but you guys dragged.

[Kelly Huntington, SVP & CFO at MYR Group]

Yes. So just kind of a recap of what we shared last year about solar within T and D. So as of second quarter year to date, we had said that represented about 15% of our T and D revenues. That declined to 12% as of ninethirty year to date last year and was down to 10% for the full year last year. And we did mention in the fourth quarter last year that it was 4% of our T and D revenues and that has further declined here in the first quarter at 25%.

[Justin Hauke, Vice President and Senior Research Associate at Robert W. Baird & Co]

Okay. All right. That's what I thought. Thank you very much.

[Richard Swartz, President, CEO & Director at MYR Group]

Thanks.

[Operator]

Thank you. Our next question will come from the line of Brian Brophy from Stifel. Your line is open.

[Brian Brophy, Associate Vice President at Stifel Financial]

Thanks. Good morning, everybody. I think I heard you mentioned in your opening comments a sizable transmission award in Virginia. I guess, if I hear that right, is there any more color you can provide on that project, whether it's the name or any other information? And how should we be thinking about timing and size of that project?

[Richard Swartz, President, CEO & Director at MYR Group]

For us, that's a midsized project. So it wasn't a large project. We kind of classify projects, large projects, 100,000,000 plus. We always try to give a little color around if the client will let us. In this case, the client is not letting us disclose a lot.

[Richard Swartz, President, CEO & Director at MYR Group]

So with that being said, the project will burn through this year. It's a good project for us, and we're happy to have it. And we're seeing a lot of long term opportunities beyond this year. And as I said, anything we capture on a large project size today really wouldn't come in though it would affect our backlog, we wouldn't really start burning any revenue on it until the end of the year or the beginning of next year. So anything we capture today would really be more burned in 2026 and affect our revenue then.

[Brian Brophy, Associate Vice President at Stifel Financial]

Okay. That's helpful. And then wanted to also ask a question on tariffs. How should we think about that impacting your cost profile, particularly on the C and I side where you guys have more fixed price contracts? And should we think about that potentially impacting your margin performance at all this year?

[Richard Swartz, President, CEO & Director at MYR Group]

It could. I don't want to say there could be no impact from it. I think it's unknown at this time. I mean, the unknown side is the headlines change every ten minutes as far as tariffs and how it could affect us and what tariffs are going to be in place. So we continue to watch it.

[Richard Swartz, President, CEO & Director at MYR Group]

We've got teams that are very focused on that. We're having conversations with our clients daily on that. I would say the newer contracts we have in place today have stronger language than the ones that some of the older ones that are in our backlog. But again, we continue to monitor it. Right now, I would say, as we see it today, we still expect to be in that mid range of our margin profiles that we've given.

[Richard Swartz, President, CEO & Director at MYR Group]

But again, we're watching it closely. If anything changes, we would definitely let everyone know.

[Brian Brophy, Associate Vice President at Stifel Financial]

Okay. Thanks. I'll pass it on.

[Operator]

Thank you. And I'm not showing any further questions in the queue. I would now like to turn the call back over to Rick Swartz for any additional or closing remarks.

[Richard Swartz, President, CEO & Director at MYR Group]

To conclude, on behalf of Kelly, Brian, Don and myself, I sincerely thank you for joining us on the call today. I do not have anything further, and we look forward to working with you going forward and speaking with you again on our next conference call. Until then, stay safe.

[Operator]

This concludes today's conference call. We thank you for your participation. You may now disconnect. Everyone, have a great day.

Participants

Executives

• Jennifer Harper, VP - IR & Treasurer
• Richard Swartz, President, CEO & Director
• Kelly Huntington, SVP & CFO
• Brian Stern, Senior VP & COO of Transmission & Distribution
• Don Egan, Senior VP & COO of Commercial and Industrial

Analysts

• Atidrip Modak, Vice President - Energy Services & E&Ps at Goldman Sachs
• Sangita Jain, Senior Analyst at KeyBanc Capital Markets
• Jonathan Braatz, Partner at Kansas City Capital Associates
• Justin Hauke, Vice President and Senior Research Associate at Robert W. Baird & Co
• Brian Brophy, Associate Vice President at Stifel Financial