MYR Group Inc. Announces Second Quarter and First Half 2025 Results

THORNTON, Colo., July 30, 2025 (GLOBE NEWSWIRE) -- MYR Group Inc. (“MYR or the "Company”) (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced today its second quarter and first half 2025 financial results. Highlights for Second Quarter 2025 Quarterly revenues of $900.3 millionRecord quarterly net income of $26.5 million, or $1.70 per diluted shareRecord quarterly EBITDA of $55.6 millionBacklog of $2.64 billion Management CommentsRick Swartz, MYR’s President and CEO, said, “Our second quarter performance resulted in quarterly revenues of $900 million and backlog of $2.64 billion with net income, consolidated gross profit, gross margin and EBITDA all increasing compared to the same period of 2024.” Mr. Swartz continued, “This quarter, we secured multiple master services agreements and new projects across our core markets, further expanding our business footprint. We value the strong relationships we’ve established with our customers and continue to leverage the full capabilities of MYR Group companies to enhance the value we deliver while strategically positioning ourselves for future growth.” Second Quarter ResultsMYR reported second quarter 2025 revenues of $900.3 million, an increase of $71.4 million, compared to the second quarter of 2024. Specifically, our Transmission and Distribution (“T&D”) segment reported quarterly revenues of $506.3 million, an increase of $48.1 million, from the second quarter of 2024, due to an increase of $25.1 million in revenue on distribution projects and an increase of $22.9 million in revenue on transmission projects. Our Commercial and Industrial (“C&I”) segment reported quarterly revenues of $394.1 million, an increase of $23.4 million, from the second quarter of 2024. Consolidated gross profit increased to $103.7 million in the second quarter of 2025, compared to $40.8 million for the second quarter of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.5 percent for the second quarter of 2025 from 4.9 percent for the second quarter of 2024. The increase in gross margin was primarily due to the second quarter of 2024 being negatively impacted by certain T&D clean energy projects and a C&I project. In the second quarter of 2025 gross margin was also positively impacted by better-than-anticipated productivity and a favorable job closeout. These margin increases were partially offset by an increase in costs associated with labor and project inefficiencies and unfavorable change orders. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 1.0 percent and 7.2 percent for the second quarter of 2025 and 2024, respectively. Selling, general and administrative expenses (“SG&A”) increased to $63.3 million in the second quarter of 2025, compared to $61.8 million for the second quarter of 2024. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $5.0 million of contingent compensation expense, related to a prior acquisition, recognized during the second quarter of 2024. Interest expense increased to $1.9 million in the second quarter of 2025, compared to $1.2 million for the second quarter of 2024. The period-over-period increase was primarily due to higher average outstanding debt balances partially offset by lower interest rates during the second quarter of 2025 as compared to the second quarter of 2024. Income tax expense was $10.9 million for the second quarter of 2025, with an effective tax rate of 29.2 percent, compared to an income tax benefit of $6.9 million for the second quarter of 2024, with an effective tax rate of 31.0 percent. The period-over-period change in tax rate was primarily due to the reduction of the impact of the global intangible low tax income (“GILTI”). For the second quarter of 2025, net income was $26.5 million, or $1.70 per diluted share, compared to net loss of $15.3 million, or ($0.91) per diluted share, for the same period of 2024. Second quarter 2025 EBITDA, a non-GAAP financial measure, was $55.6 million, compared to ($4.7) million in the second quarter of 2024. First Half ResultsMYR reported first half 2025 revenues of $1.73 billion, an increase of $89.4 million, compared to the first half of 2024. Specifically, our T&D segment reported revenues of $968.0 million, an increase of $19.4 million, from the first half of 2024, due to an increase of $40.6 million in revenue on distribution projects, partially offset by a decrease of $21.2 million in revenue on transmission projects, primarily related to clean energy. Our C&I segment reported revenues of $765.9 million, an increase of $70.1 million, from the first half of 2024. Consolidated gross profit increased to $200.6 million in the first half of 2025, compared to $127.1 million in the first half of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.6 percent for the first half of 2025 from 7.7 percent for the first half of 2024. The increase in gross margin was primarily due to the first half of 2024 being negatively impacted by certain T&D clean energy projects and by a C&I project. In the first half of 2025, gross margin was also positively impacted by better-than-anticipated productivity, favorable change orders and a favorable job closeout. These margin increases were partially offset by an increase in costs associated with labor and project inefficiencies and unfavorable change orders. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 1.2 percent and 4.2 percent for the first half of 2025 and 2024, respectively. SG&A increased to $125.8 million in the first half of 2025, compared to $124.1 million for the first half of 2024. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $8.2 million of contingent compensation expense, related to a prior acquisition, recognized during the first half of 2024. Interest expense increased to $3.3 million in the first half of 2025, compared to $2.3 million for the first half of 2024. The period-over-period increase was primarily due to higher average outstanding debt balances, partially offset by lower interest rates during the first half of 2025 as compared to the first half of 2024. Income tax expense was $20.4 million for the first half of 2025, with an effective tax rate of 29.1 percent, compared to income tax benefit of $2.7 million for the first half of 2024, with an effective tax rate of negative 281.9 percent. The period-over-period change in tax rate was primarily due to higher pretax income, lower other permanent difference items and lower stock compensation excess tax benefits. For the first half of 2025, net income was $49.8 million, or $3.15 per diluted share, compared to $3.7 million, or $0.22 per diluted share, for the same period of 2024. BacklogAs of June 30, 2025 and March 31, 2025, MYR's backlog was $2.64 billion. As of June 30, 2025, T&D backlog was $926.5 million, and C&I backlog was $1.72 billion. Total backlog as of June 30, 2025 increased $97.7 million, or 3.8 percent, from the $2.54 billion reported as of June 30, 2024. Balance SheetAs of June 30, 2025, MYR had $383.3 million of borrowing availability under its $490 million revolving credit facility. Share Repurchase ProgramIn addition, the Company announced today that its Board of Directors approved a new share repurchase program (the “Repurchase Program”), which authorizes the Company to repurchase, in the aggregate, up to $75.0 million of its outstanding shares of common stock from time to time at management’s discretion on the open market or in privately negotiated transactions, including through Rule 10b5-1 trading plans, structured transactions or other means in accordance with applicable securities laws. The amount and timing of repurchases are subject to a variety of factors, including market and business conditions, as well as applicable contractual and legal requirements. The Repurchase Program will expire on February 4, 2026, or when the authorized funds are exhausted, whichever is earlier. The Company is not obligated to acquire any specific amount of common stock, and the Company’s Board of Directors may modify or terminate the Repurchase Program at any time. The Company intends to fund the Repurchase Program with cash on hand and through borrowings under its credit facility. The Repurchase Program replaces and supersedes the Company’s prior $75.0 million repurchase program, under which the Company had exhausted substantially all of the available funds, and such prior repurchase program has been terminated. Non-GAAP Financial MeasuresTo supplement MYR’s financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), MYR uses certain non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. MYR’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. MYR believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view MYR’s performance using the same tools that management uses to evaluate MYR’s past performance, reportable business segments and prospects for future performance, (iii) publicly disclose results that are relevant to financial covenants included in MYR’s credit facility and (iv) otherwise provide supplemental information that may be useful to investors in evaluating MYR. Conference CallMYR will host a conference call to discuss its second quarter 2025 results on Thursday, July 31, 2025, at 8 a.m. Mountain time. To participate via telephone and join the call live, please register in advance here: https://register-conf.media-server.com/register/BI77f3a6ef1ade4e0b906689884da5e6f6. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode. Participants may access the audio-only webcast of the conference call from the Investors page of MYR Group’s website at myrgroup.com. A replay of the webcast will be available for seven days. About MYR Group Inc. MYR Group is a holding company of leading, specialty electrical contractors providing services throughout the United States and Canada through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). MYR Group subsidiaries have the experience and expertise to complete electrical installations of any type and size. Through their T&D segment they provide services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. Their comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Through their C&I segment, they provide a broad range of services which include the design, installation, maintenance and repair of commercial and industrial wiring generally for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. For more information, visit myrgroup.com. Forward-Looking StatementsVarious statements in this announcement, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenue, income, capital spending, segment improvements and investments. Forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “likely,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “unlikely,” or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak only as of the date of this announcement. We disclaim any obligation to update these statements (unless required by securities laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Forward-looking statements in this announcement should be evaluated together with the many uncertainties that affect MYR's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A. of MYR's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in any risk factors or cautionary statements contained in MYR's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. MYR Group Inc. Contact:Jennifer Harper, Vice President, Investor Relations & Treasurer, 847-979-5835, investorinfo@myrgroup.com Financial tables follow… MYR GROUP INC.Consolidated Balance SheetsAs of June 30, 2025 and December 31, 2024 (in thousands, except share and per share data)June 30,2025 December 31,2024 (unaudited) ASSETS Current assets: Cash and cash equivalents$22,956 $3,464 Accounts receivable, net of allowances of $2,168 and $1,129, respectively 599,629 653,069 Contract assets, net of allowances of $537 and $422, respectively 347,082 301,942 Current portion of receivable for insurance claims in excess of deductibles 10,131 9,081 Refundable income taxes 4,392 4,638 Prepaid expenses and other current assets 33,416 42,468 Total current assets 1,017,606 1,014,662 Property and equipment, net of accumulated depreciation of $402,519 and $387,223, respectively 281,901 278,226 Operating lease right-of-use assets 45,322 42,648 Goodwill 115,466 112,983 Intangible assets, net of accumulated amortization of $37,584 and $34,573, respectively 75,048 75,691 Receivable for insurance claims in excess of deductibles 34,245 34,553 Deferred income taxes 6,002 5,734 Investment in joint ventures 4,611 3,730 Other assets 6,781 5,832 Total assets$1,586,982 $1,574,059 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt$4,458 $4,363 Current portion of operating lease obligations 12,848 12,141 Current portion of finance lease obligations 915 1,046 Accounts payable 308,191 295,476 Contract liabilities 286,288 321,958 Current portion of accrued self-insurance 26,801 25,883 Accrued income taxes 3,583 196 Other current liabilities 123,308 87,837 Total current liabilities 766,392 748,900 Deferred income tax liabilities 53,614 52,498 Long-term debt 81,623 70,018 Accrued self-insurance 53,577 53,600 Operating lease obligations, net of current maturities 32,446 30,496 Finance lease obligations, net of current maturities 1,632 1,930 Other liabilities 14,464 16,257 Total liabilities 1,003,748 973,699 Commitments and contingencies Shareholders’ equity: Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at June 30, 2025 and December 31, 2024 — — Common stock—$0.01 par value per share; 100,000,000 authorized shares; 15,522,834 and 16,121,901 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 155 161 Additional paid-in capital 156,138 159,133 Accumulated other comprehensive loss (7,657) (12,651)Retained earnings 434,598 453,717 Total shareholders’ equity 583,234 600,360 Total liabilities and shareholders’ equity$1,586,982 $1,574,059 MYR GROUP INC.Unaudited Consolidated Statements of OperationsThree and Six Months Ended June 30, 2025 and 2024 Three months endedJune 30, Six months endedJune 30,(in thousands, except per share data) 2025 2024 2025 2024 Contract revenues$900,325 $828,890 $1,733,945 $1,644,452 Contract costs 796,614 788,047 1,533,333 1,517,366 Gross profit 103,711 40,843 200,612 127,086 Selling, general and administrative expenses 63,313 61,839 125,837 124,072 Amortization of intangible assets 1,211 1,217 2,399 2,445 Gain on sale of property and equipment (600) (1,506) (1,701) (2,995)Income (loss) from operations 39,787 (20,707) 74,077 3,564 Other income (expense): Interest income 45 81 236 223 Interest expense (1,905) (1,241) (3,319) (2,295)Other expense, net (533) (270) (833) (533)Income (loss) before provision for income taxes 37,394 (22,137) 70,161 959 Income tax expense (benefit) 10,928 (6,860) 20,387 (2,703)Net income (loss)$26,466 $(15,277) $49,774 $3,662 Income (loss) per common share: —Basic$1.70 $(0.91) $3.16 $0.22 —Diluted$1.70 $(0.91) $3.15 $0.22 Weighted average number of common shares and potential common shares outstanding: —Basic 15,527 16,756 15,759 16,734 —Diluted 15,575 16,809 15,813 16,820 MYR GROUP INC.Unaudited Consolidated Statements of Cash FlowsSix Months Ended June 30, 2025 and 2024 Six months endedJune 30,(in thousands) 2025 2024 Cash flows from operating activities: Net income$49,774 $3,662 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization of property and equipment 30,139 29,659 Amortization of intangible assets 2,399 2,445 Stock-based compensation expense 5,759 4,248 Deferred income taxes 347 — Gain on sale of property and equipment (1,701) (2,995)Other non-cash items (180) 1,266 Changes in operating assets and liabilities: Accounts receivable, net 55,665 (34,139)Contract assets, net (42,167) 17,057 Receivable for insurance claims in excess of deductibles (742) (30)Other assets 4,737 (3,507)Accounts payable 11,133 (10,336)Contract liabilities (36,516) 16,514 Accrued self-insurance 872 (4,161)Other liabilities 36,628 10,688 Net cash flows provided by operating activities 116,147 30,371 Cash flows from investing activities: Proceeds from sale of property and equipment 3,726 3,380 Purchases of property and equipment (34,289) (45,961) Net cash flows used in investing activities (30,563) (42,581)Cash flows from financing activities: Borrowings under revolving lines of credit 488,553 290,907 Repayments under revolving lines of credit (474,695) (279,488)Payment of principal obligations under equipment notes (2,158) (2,595)Payment of principal obligations under finance leases (568) (549)Repurchase of common stock (75,000) (14,251)Debt refinancing costs — (33)Payments related to tax withholding for stock-based compensation (2,653) (5,866)Other financing activities — 1,600 Net cash flows used in financing activities (66,521) (10,275) Effect of exchange rate changes on cash 429 (545)Net increase (decrease) in cash and cash equivalents 19,492 (23,030)Cash and cash equivalents: Beginning of period 3,464 24,899 End of period$22,956 $1,869 MYR GROUP INC.Unaudited Consolidated Selected Data,Unaudited Performance Measure and Reconciliation of Non-GAAP MeasureFor the Three, Six and Twelve Months Ended June 30, 2025 and 2024 andAs of June 30, 2025, December 31, 2024, June 30, 2024 and June 30, 2023 Three months endedJune 30, Last twelve months ended June 30, (dollars in thousands, except share and per share data) 2025 2024 2025 2024 Summary Statement of Operations Data: Contract revenues$900,325 $828,890 $3,451,783 $3,588,125 Gross profit$103,711 $40,843 $363,845 $316,964 Income (loss) from operations$39,787 $(20,707) $124,595 $72,793 Income before provision for income taxes$37,394 $(22,137) $115,695 $67,295 Income tax expense (benefit)$10,928 $(6,860) $39,320 $18,079 Net income (loss)$26,466 $(15,277) $76,375 $49,216 Tax rate 29.2% 31.0% 34.0% 26.9% Per Share Data: Income (loss) per common share: - Basic$1.70 $(0.91) $4.80 (1)$2.95 (1)- Diluted$1.70 $(0.91) $4.79 (1)$2.92 (1)Weighted average number of common shares and potential common shares outstanding: - Basic 15,527 16,756 15,982 (2) 16,718 (2)- Diluted 15,575 16,809 16,035 (2) 16,828 (2) (in thousands)June 30,2025 December 31,2024 June 30,2024 June 30,2023Summary Balance Sheet Data: Total assets$1,586,982 $1,574,059 $1,583,242 $1,464,803Total shareholders’ equity$583,234 $600,360 $633,342 $604,300Goodwill and intangible assets$190,514 $188,674 $195,227 $202,989Total funded debt (3)$86,081 $74,381 $45,065 $45,125 Three months endedJune 30, Six months endedJune 30,(dollars in thousands) 2025 2024 2025 2024 Segment Results:Amount Percent Amount Percent Amount Percent Amount PercentContract revenues: Transmission & Distribution$506,273 56.2% $458,209 55.3% $968,043 55.8% $948,604 57.7%Commercial & Industrial 394,052 43.8 370,681 44.7 765,902 44.2 695,848 42.3 Total$900,325 100.0% $828,890 100.0% $1,733,945 100.0% $1,644,452 100.0%Operating income (loss): Transmission & Distribution$40,465 8.0% $(8,300) (1.8)% $76,686 7.9% $21,536 2.3%Commercial & Industrial 21,992 5.6 1,608 0.4 39,369 5.1 13,031 1.9 Total 62,457 6.9 (6,692) (0.8) 116,055 6.7 34,567 2.1 Corporate (22,670) (2.5) (14,015) (1.7) (41,978) (2.4) (31,003) (1.9)Consolidated$39,787 4.4% $(20,707) (2.5)% $74,077 4.3% $3,564 0.2% See notes at the end of this earnings release MYR GROUP INC.Unaudited Performance Measures and Reconciliation of Non-GAAP MeasuresThree and Twelve Months Ended June 30, 2025 and 2024 Three months endedJune 30, Last twelve months ended June 30,(in thousands, except share, per share data, ratios and percentages) 2025 2024 2025 2024 Financial Performance Measures (4): EBITDA (5)$55,599 $(4,703) $188,439 $134,939 EBITDA per Diluted Share (6)$3.57 $(0.28) $11.77 $8.02 EBIA, net of taxes (7)$28,640 $(13,637) $84,258 $56,375 Free Cash Flow (8)$11,638 $2,503 $108,625 $(3,424)Book Value per Period End Share (9)$37.46 $37.92 Tangible Book Value (10)$392,720 $438,115 Tangible Book Value per Period End Share (11)$25.22 $26.23 Funded Debt to Equity Ratio (12) 0.15 0.07 Asset Turnover (13) 2.18 2.45 Return on Assets (14) 4.8% 3.4%Return on Equity (15) 12.1% 8.1%Return on Invested Capital (16) 12.7% 8.7% Reconciliation of Non-GAAP Measures: Reconciliation of Net Income (loss) to EBITDA: Net income (loss)$26,466 $(15,277) $76,375 $49,216 Interest expense, net 1,860 1,160 7,121 4,897 Income tax expense (benefit) 10,928 (6,860) 39,320 18,079 Depreciation and amortization 16,345 16,274 65,623 62,747 EBITDA (5)$55,599 $(4,703) $188,439 $134,939 Reconciliation of Net Income (loss) per Diluted Share to EBITDA per Diluted Share: Net income (loss) per share$1.70 $(0.91) $4.79 $2.92 Interest expense, net, per share 0.12 0.07 0.44 0.29 Income tax expense (benefit) per share 0.70 (0.41) 2.45 1.08 Depreciation and amortization per share 1.05 0.97 4.09 3.73 EBITDA per Diluted Share (6)$3.57 $(0.28) $11.77 $8.02 Reconciliation of Non-GAAP measure: Net income (loss)$26,466 $(15,277) $76,375 $49,216 Interest expense, net 1,860 1,160 7,121 4,897 Amortization of intangible assets 1,211 1,217 4,823 4,897 Tax impact of interest and amortization of intangible assets (897) (737) (4,061) (2,635)EBIA, net of taxes (7)$28,640 $(13,637) $84,258 $56,375 Calculation of Free Cash Flow: Net cash flow from operating activities$32,861 $22,681 $172,891 $85,543 Less: cash used in purchasing property and equipment (21,223) (20,178) (64,266) (88,967)Free Cash Flow (8)$11,638 $2,503 $108,625 $(3,424) See notes at the end of this earnings release. MYR GROUP INC.Unaudited Performance Measures and Reconciliation of Non-GAAP MeasuresAs of June 30, 2025, 2024 and 2023 (in thousands, except per share amounts)June 30, 2025 June 30, 2024Reconciliation of Book Value to Tangible Book Value: Book value (total shareholders' equity)$583,234 $633,342 Goodwill and intangible assets (190,514) (195,227)Tangible Book Value (10)$392,720 $438,115 Reconciliation of Book Value per Period End Share to Tangible Book Value per Period End Share: Book value per period end share$37.46 $37.92 Goodwill and intangible assets per period end share (12.24) (11.69)Tangible Book Value per Period End Share (11)$25.22 $26.23 Calculation of Period End Shares: Shares outstanding 15,523 16,648 Plus: common equivalents 48 53 Period End Shares (17) 15,571 16,701 (in thousands)June 30, 2025 June 30, 2024 June 30, 2023Reconciliation of Invested Capital to Shareholders Equity: Book value (total shareholders' equity)$583,234 $633,342 $604,300 Plus: total funded debt 86,081 45,065 45,125 Less: cash and cash equivalents (22,956) (1,869) (22,850)Invested Capital$646,359 $676,538 $626,575 Average Invested Capital (18)$661,449 $651,557 See notes at the end of this earnings release. (1)Last-twelve-months earnings per share is the sum of earnings per share reported in the last four quarters.(2)Last-twelve-months weighted average basic and diluted shares were determined by adding the weighted average shares reported for the last four quarters and dividing by four.(3)Funded debt includes outstanding borrowings under our revolving credit facility and our outstanding equipment notes.(4)These financial performance measures are provided as supplemental information to the financial statements. These measures are used by management to evaluate our past performance, our prospects for future performance and our ability to comply with certain material covenants as defined within our credit agreement, and to compare our results with those of our peers. In addition, we believe that certain of the measures, such as book value, tangible book value, free cash flow, asset turnover, return on equity, and debt leverage are measures that are monitored by sureties, lenders, lessors, suppliers and certain investors. Our calculation of each measure is described in the following notes; our calculation may not be the same as the calculations made by other companies.(5)EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is not recognized under GAAP and does not purport to be an alternative to net income (loss) as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity. Certain material covenants contained within our credit agreement are based on EBITDA with certain additional adjustments, including our interest coverage ratio and leverage ratio, which we must comply with to avoid potential immediate repayment of amounts borrowed or additional fees to seek relief from our lenders. In addition, management considers EBITDA a useful measure because it provides MYR Group Inc. and its investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes to not directly reflect the company’s core operations. Management further believes that EBITDA is useful to investors and other external users of our financial statements in evaluating the company’s operating performance and cash flow because EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, useful lives placed on assets, capital structure and the method by which assets were acquired.(6)EBITDA per diluted share is calculated by dividing EBITDA by the weighted average number of diluted shares outstanding for the period. EBITDA per diluted share is not recognized under GAAP and does not purport to be an alternative to income (loss) per diluted share.(7)EBIA, net of taxes is defined as net income (loss) plus net interest plus amortization of intangible assets, less the tax impact of net interest and amortization of intangible assets. The tax impact of net interest and amortization of intangible assets is computed by multiplying net interest and amortization of intangible assets by the effective tax rate. Management uses EBIA, net of taxes, to measure our results exclusive of the impact of financing and amortization of intangible assets costs.(8)Free cash flow, which is defined as cash flow provided by operating activities minus cash flow used in purchasing property and equipment, is not recognized under GAAP and does not purport to be an alternative to net income (loss), cash flow from operations or the change in cash on the balance sheet. Management views free cash flow as a measure of operational performance, liquidity and financial health.(9)Book value per period end share is calculated by dividing total shareholders’ equity at the end of the period by the period end shares outstanding.(10)Tangible book value is calculated by subtracting goodwill and intangible assets outstanding at the end of the period from shareholders’ equity. Tangible book value is not recognized under GAAP and does not purport to be an alternative to book value or shareholders’ equity.(11)Tangible book value per period end share is calculated by dividing tangible book value at the end of the period by the period end number of shares outstanding. Tangible book value per period end share is not recognized under GAAP and does not purport to be an alternative to income (loss) per diluted share.(12)The funded debt to equity ratio is calculated by dividing total funded debt at the end of the period by total shareholders’ equity at the end of the period.(13)Asset turnover is calculated by dividing the current period revenue by total assets at the beginning of the period.(14)Return on assets is calculated by dividing net income (loss) for the period by total assets at the beginning of the period.(15)Return on equity is calculated by dividing net income (loss) for the period by total shareholders’ equity at the beginning of the period.(16)Return on invested capital is calculated by dividing EBIA, net of taxes, less any dividends, by average invested capital. Return on invested capital is not recognized under GAAP, and is a key metric used by management to determine our executive compensation.(17)Period end shares is calculated by adding average common stock equivalents for the quarter to the period end balance of common stock outstanding. Period end shares is not recognized under GAAP and does not purport to be an alternative to diluted shares. Management views period end shares as a better measure of shares outstanding as of the end of the period.(18)Average invested capital is calculated by adding net funded debt (total funded debt less cash and marketable securities) to total shareholders’ equity and calculating the average of the beginning and ending of each period.

MYR Group Inc. Announces Second Quarter and First Half 2025 Results

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