A specialty electrical construction company that builds and maintains the power grid through two units: Transmission & Distribution (lines, substations, clean energy) for electric utilities, and Commercial & Industrial (wiring, lighting, and traffic systems) for data centers, airports, and factories. Its roots trace to 1891, when Lewis Edward Myers—a former salesman for Thomas Edison—founded the L.E. Myers Co. in Chicago to bring electricity to American homes. The name "MYR" comes from his surname, and the modern holding company was formed in 1995.
MYR Group gross margin held at 13.2% in Q2 2026 as C&I revenue rose 41.5%, and backlog reached a record $3.16 billion.
stayed above 13% for a second straight quarter — a level the company last saw in 2021. rose 20.1% to $1.08 billion and nearly doubled to $49.9 million, driven by a 41.5% increase in C&I revenue and net favorable project estimate changes. The company enters the second half with a record $3.16 billion and, just after the quarter, acquired Valley for approximately $328 million, funded partly by $235 million in new borrowings.
Key takeaways
Consolidated reached 13.2%, up 1.7 points from 11.5% a year ago, as projects progressed at higher contractual margins and estimate changes swung to a net favorable impact from better productivity and scope increases.
Commercial and Industrial (C&I) rose 41.5% to $557.9 million, and its widened to 8.5% from 5.6%, benefiting from projects nearing completion at higher contractual margins and net positive estimate changes.
Section summaries
Management's Discussion and Analysis
Consolidated Q2 FY2026 revenue rose 20.1% to $1.08B, with net income nearly doubling to $49.9M driven by C&I growth and improved project margins.
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Consolidated revenues increased 20.1% to $1.08B for Q2 FY2026, primarily from a $163.6M (41.5%) surge in C&I , while T&D grew 3.5%.
Transmission and Distribution (T&D) grew 3.5% to $523.8 million, while its held at 8.0%, as favorable closeouts and productivity were offset by higher incentive compensation costs.
SG&A expenses rose $11.1 million to $74.4 million, driven by higher employee incentive compensation tied to improved profitability and investments to support future growth.
Total reached a record $3.16 billion, up from $2.64 billion a year ago, with T&D backlog increasing $284.9 million sequentially, reflecting the large transmission awards management had flagged as expected.
was $3.3 million for the quarter, down from $32.9 million a year ago, as consumed cash; turned negative at -$25.6 million.
What changed
The large transmission project awards that management had flagged as expected in 2025 materialized: T&D rose $284.9 million sequentially to a record level, and total backlog reached $3.16 billion, settling the question of whether those awards would convert.
The 13.2% in Q2, following 13.4% in Q1, suggests the margin recovery is holding above the 11.6% annual level from FY2025, though the net favorable estimate changes that boosted both quarters bear watching for repeatability.
Cash and equivalents fell to $137.9 million from $163.2 million at Q1-end, and turned negative, as consumed cash — a reversal from the strong cash generation of the prior four quarters.
remained at $4.7 million at quarter-end, but the company drew $235.0 million on its on July 1, 2026 to fund the Valley acquisition, a material change to the nearly debt-free balance sheet reported at June 30.
What to watch
Whether the 13.2% is sustainable in the second half as the record $3.16 billion converts to , or whether the net favorable estimate changes that boosted Q1 and Q2 represent one-time closeouts that will not repeat at the same magnitude.
The integration and margin impact of the Valley acquisition, funded by $235 million in new borrowings that will increase and , and whether the acquired and capabilities support the C&I 's 8.5% .
generation in Q3 and Q4, given the negative $25.6 million in Q2 and the need to service the $235 million in new borrowings taken on July 1.
replenishment in Q3, particularly whether T&D backlog can build further on the $284.9 million sequential increase or whether the record level represents a peak as large awards move into execution.
expanded to 13.2% from 11.5%, largely due to net favorable changes in estimated project , including better productivity and scope increases.
C&I rose to 8.5% from 5.6%, benefiting from projects progressing at higher contractual margins and net positive estimate changes.
expenses increased $11.1M to $74.4M, driven by higher employee incentive compensation and expenses to support future growth.
reached $3.16B as of June 30, 2026, up from $2.64B a year earlier, with T&D backlog increasing $284.9M sequentially.
Subsequent to quarter-end, the company acquired Valley for ~$328M, funded by $93M cash and $235M in borrowings, leaving $225.5M in facility availability.
Quantitative and Qualitative Disclosures About Market Risk
We have operations within the United States and Canada, and we are exposed to market risks in the ordinary course of our business, including the effects of fluctuations in interest rates, foreign exchange rates, and commodity prices. As of June 30, 2026, we were not party to any…
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We have operations within the United States and Canada, and we are exposed to market risks in the ordinary course of our business, including the effects of fluctuations in interest rates, foreign exchange rates, and commodity prices.
As of June 30, 2026, we were not party to any derivative instruments. We did not use any material derivative financial instruments during the six months ended June 30, 2026 and 2025, including instruments for trading, hedging, or speculating on changes in interest rates, changes in foreign currency rates or changes in commodity prices of materials used in our business.
Any borrowings under our Facility are based upon interest rates that will vary depending upon the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, Term CORRA, and Term SOFR Reference Rate, each as defined in the Credit Agreement. If the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, Term CORRA, or Term SOFR Reference Rate rises, any interest payment obligations under the Facility would increase and have a negative effect on our cash flow and financial condition. We currently do not maintain any hedging contracts that would limit our exposure to variable rates of interest when we have outstanding borrowings. As of June 30, 2026, we had no borrowings outstanding under the Facility. As of July 1, 2026, we had $235.0 million of borrowings outstanding under the Facility.
For discussion regarding legal proceedings, please refer to Note 8–Commitments and Contingencies—Litigation and Other Legal Matters in the accompanying notes to our Consolidated Financial Statements.
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For discussion regarding legal proceedings, please refer to Note 8–Commitments and Contingencies—Litigation and Other Legal Matters in the accompanying notes to our Consolidated Financial Statements.
We face a number of risks that could materially and adversely affect our business, employees, liquidity, financial condition, results of operations and cash flows. A discussion of our risk factors can be found in Item 1A. “Risk Factors” in our 2025 Annual Report. As of the date…
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We face a number of risks that could materially and adversely affect our business, employees, liquidity, financial condition, results of operations and cash flows. A discussion of our risk factors can be found in Item 1A. “Risk Factors” in our 2025 Annual Report. As of the date of this filing, there have been no material changes to the risk factors previously discussed in Item 1A. “Risk Factors” in our 2025 Annual Report. An investment in our common stock involves various risks. When considering an investment in the Company, you should carefully consider all of the risk factors described in our 2025 Annual Report. These risks and uncertainties are not the only ones facing us and there may be additional matters that are not known to us or that we currently consider immaterial. These risks and uncertainties could adversely affect our business, employees, liquidity, financial condition, results of operations or cash flows and, thus, the value of our common stock and any investment in the Company.