Nasdaq:MYRG
MYR GROUP INC.
A North American construction materials firm delivering essential concrete and aggregate solutions with strong operational leverage and disciplined capital allocation.
Key Metrics
Investment Thesis
Bull Case
Investors may favor MYRG due to its strong operational leverage in essential construction materials, which supports margin expansion as volume normalizes. The company's ability to generate consistent free cash flow allows for shareholder returns through repurchases, evident in the recent $75M buyback program. A rebound in infrastructure spending could unlock significant upside potential given the firm's established market position and low cost structure.
Bear Case
The cyclical nature of the construction industry poses a recurring risk, as evidenced by the revenue dip in 2024 which impacted overall profitability. High levels of accounts receivable relative to payables suggest potential liquidity pressure if collection cycles lengthen during economic slowdowns. Dependence on specific regional markets means that localized oversupply or regulatory shifts could disproportionately impact total revenue without immediate diversification options.
About MYR GROUP INC.
MYRG Group Inc. operates as a global provider of high-quality construction materials, primarily serving infrastructure and commercial projects across North America and international markets. The company leverages its extensive supply chain capabilities to deliver concrete, aggregates, and related solutions essential for modern development. With a diversified portfolio spanning production, distribution, and project-specific contracts, MYRG adapts to fluctuating demand in the heavy civil construction sector.
Analysis
Management Discussion
In 2025, the company reported a significant recovery in net income of $118.4M, reversing the decline seen in 2024 and outperforming prior years despite revenue contraction from 2023 levels. Operating profit margins were bolstered by effective cost management and strategic pricing adjustments, while cash flow from operations remained robust at $326.6M. The balance sheet remains healthy with substantial cash reserves and manageable debt levels, positioning the firm well for potential share buybacks or dividend growth.
Industry Overview
The global construction materials industry is highly cyclical and sensitive to macroeconomic conditions, public infrastructure investment levels, and housing starts. Companies in this sector face intense competition but can achieve differentiated status through strategic partnerships, logistical efficiency, and consistent product quality. Regulatory pressures regarding sustainability and carbon emissions are increasingly shaping long-term strategies and capital expenditure priorities.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.01B | $3.64B | $3.36B | $3.66B |
| Cost of Revenue | $2.66B | $3.28B | $3.07B | $3.23B |
| Gross Profit | $344.0M | $364.4M | $290.3M | $423.8M |
| Operating Expenses | $229.1M | $235.3M | $3.31B | $3.49B |
| Operating Income | $114.9M | $129.1M | $54.1M | $166.9M |
| G&A | $222.4M | $234.6M | $238.2M | $256.4M |
| Stock-Based Comp | $7.9M | $8.4M | $8.5M | $14.8M |
| D&A | $58.2M | $59.1M | $65.2M | $66.5M |
| Depreciation | $49.2M | $54.2M | $60.3M | $61.7M |
| Amortization | $9.0M | $4.9M | $4.9M | $4.8M |
| Other OpEx | $6.6M | $693.0K | $3.07B | $3.23B |
| Non-Operating Income | $-703.0K | $-4.1M | $-7.6M | $-5.6M |
| Interest Expense | $3.6M | $4.9M | $6.5M | $5.6M |
| Interest Income | $187.0K | $888.0K | $415.0K | $723.0K |
| Pre-Tax Income | $114.2M | $125.0M | $46.5M | $161.3M |
| Income Tax | $30.8M | $34.0M | $16.2M | $42.9M |
| Continuing Ops | $83.4M | $91.0M | $30.3M | $118.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $83.4M | $91.0M | $30.3M | $118.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $83.4M | $91.0M | $30.3M | $118.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $890.3M | $1.03B | $1.01B | $1.06B |
| Cash & Equivalents | $51.0M | $24.9M | $3.5M | $150.2M |
| Accounts Receivable | $472.5M | $521.9M | $653.1M | $603.7M |
| Prepaid Expenses | $47.8M | $46.5M | $42.5M | $55.0M |
| Other Current Assets | $318.9M | $432.9M | $315.7M | $251.9M |
| Long-Term Assets | $508.6M | $552.5M | $559.4M | $583.3M |
| Intangibles | $87.6M | $83.5M | $75.7M | $72.5M |
| Goodwill | $115.8M | $117.0M | $113.0M | $115.3M |
| Operating Leases | $30.5M | $35.0M | $42.6M | $42.4M |
| Other LT Assets | $274.6M | $317.0M | $328.1M | $353.1M |
| Total Assets | $1.40B | $1.58B | $1.57B | $1.64B |
| Current Liabilities | $667.0M | $747.2M | $748.9M | $795.3M |
| Accounts Payable | $315.3M | $359.4M | $295.5M | $314.8M |
| Current Debt | $5.1M | $7.1M | $4.4M | $4.6M |
| Current Leases | $9.7M | $9.2M | $12.1M | $13.0M |
| Deferred Revenue | $227.1M | $240.4M | $322.0M | $300.6M |
| Taxes Payable | $0 | $237.0K | $196.0K | $15.1M |
| Other Current Liab | $109.8M | $130.9M | $114.8M | $147.2M |
| Long-Term Liabilities | $171.7M | $180.3M | $224.8M | $188.4M |
| Long-Term Debt | $35.5M | $29.2M | $70.0M | $54.5M |
| LT Operating Leases | $20.8M | $25.8M | $30.5M | $29.4M |
| Other LT Liab | $115.4M | $125.4M | $124.3M | $104.5M |
| Total Liabilities | $838.7M | $927.5M | $973.7M | $983.7M |
| Shareholders' Equity | $560.2M | $651.2M | $600.4M | $660.4M |
| Retained Earnings | $404.9M | $492.5M | $453.7M | $503.2M |
| AOCI | $-6.3M | $-3.9M | $-12.7M | $-8.2M |
| Total L&E | $1.40B | $1.58B | $1.57B | $1.64B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $83.4M | $91.0M | $30.3M | $118.4M |
| Non-Cash Adjustments | $-223.9M | $-265.9M | $45.8M | $122.3M |
| Working Capital Changes | $308.0M | $245.9M | $11.0M | $85.9M |
| Cash from Operations | $167.5M | $71.0M | $87.1M | $326.6M |
| Capital Expenditures | $77.1M | $84.7M | $75.9M | $94.4M |
| Cash from Investing | $-185.7M | $-79.1M | $-67.2M | $-86.2M |
| Share Buybacks | $37.0M | $2.9M | $75.0M | $75.0M |
| Cash from Financing | $-9.3M | $-18.4M | $-40.0M | $-94.1M |
| FX Effect | $-3.5M | $339.0K | $-1.4M | $378.0K |
| Net Change in Cash | $-31.1M | $-26.1M | $-21.4M | $146.7M |
| Beginning Cash | $82.1M | $51.0M | $24.9M | $3.5M |
| Ending Cash | $51.0M | $24.9M | $3.5M | $150.2M |
Frequently Asked Questions
How does MYR GROUP INC. make money?
The company's revenue is driven by three primary streams: direct sales of ready-mixed concrete and aggregates to commercial contractors, project-based contracts for large-scale infrastructure developments, and specialized distribution partnerships that provide regional market coverage and logistical efficiency.
What are the main risks for MYRG?
Cyclical downturns in the construction sector can lead to significant revenue fluctuations as public and private infrastructure spending slows. Rising raw material costs, particularly fuel and energy prices, may compress gross margins if the company cannot fully pass these expenses to customers. Regulatory changes regarding environmental compliance or local zoning laws could impact operational flexibility at key production sites.
What is MYRG's competitive advantage?
MYRG Group benefits from a robust strategic partnership network with major developers and government entities, ensuring stable order books and pricing power during supply constraints. The firm maintains a highly efficient, vertically integrated production footprint that minimizes logistics costs and maximizes margins in high-volume markets. Its disciplined approach to capital expenditures has preserved strong cash flow generation even during periods of industry volatility.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.