MYR Group’s third quarter results were met with a negative market reaction, despite the company surpassing Wall Street’s expectations for both revenue and non-GAAP profit. Management pointed to improved project execution, particularly in the Commercial & Industrial segment, and better-than-expected productivity as key drivers of the quarter’s margin expansion. CEO Rick Swartz acknowledged lingering pressures, citing that “costs associated with project inefficiencies, unfavorable change orders and inclement weather” partially offset these operational gains. The quarter also saw a year-over-year decline in backlog, which contributed to investor caution.

Is now the time to buy MYRG? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From MYR Group’s Q3 Earnings Call

• Sangita Jain (KeyBanc): Asked about C&I margin sustainability given recent improvement. CEO Rick Swartz explained margins are expected to rise slightly, with a forecasted range of 5% to 7.5% for next year, supported by both market conditions and execution.

• Andrew J. Wittmann (Baird): Inquired about the evolving opportunity in data centers. Swartz replied that, while data centers could increase as a share of business, growth remains broad-based across core markets and not limited to this segment.

• Jon Braatz (KA-CCA): Probed whether the improved C&I margin profile reflects market strength or execution. Swartz said it is “a mixture of the two,” with efforts to push margins where possible amid favorable market dynamics.

• Brian Brophy (Stifel): Sought clarity on high single-digit growth expectations excluding solar and the timing of large T&D projects. Management reiterated that T&D is tracking above this range and large projects likely won’t begin before 2027.

• Ati Modak (Goldman Sachs): Asked if the 10% revenue growth expectation for next year is realistic and what factors could affect it. Swartz confirmed management sees 10%-ish growth as reasonable, barring significant economic or customer pullbacks.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be watching (1) whether MYR Group can secure large-scale transmission projects to bolster backlog, (2) how effectively the company manages labor and material constraints amid elevated bidding activity, and (3) the pace of margin improvement in both T&D and C&I segments. Continued success in diversifying project wins across core end markets will also be a key indicator of future sustainability.

MYR Group currently trades at $230, up from $226.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).

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